Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. If you own property other than your principal place of residence or primary production land, and the combined value of this land is greater than the land tax threshold, you will need to register for land tax. You may be liable if you own or part-own:
• vacant land, including vacant rural land
• land where a house, residential unit or flat has been built
• a holiday home
• investment properties
• company title units
• residential, commercial or industrial units, including car spaces
• commercial properties, including factories, shops and warehouses
• land leased from state or local government.
Once you have registered for land tax you will be sent a notice of assessment from the Office of State Revenue based on the information you have supplied. This will show any land tax payable on the land you own. If you have previously registered for land tax, you do not need to complete another registration unless your ownership or usage details have changed.
Rates and thresholds
2011: The Valuer General has determined that the land tax threshold for the 2011 land tax year is $387,000. The premium land tax threshold for the 2011 land tax year is $2,366,000.
2010: The Valuer General has determined that the land tax threshold for the 2010 land tax year is $376,000. The premium land tax threshold for the 2010 land tax year is $2,299,000.
There are many concessions and exemptions that you may be eligible for. Since there are so many and it can be difficult to differentiate between them it is recommended that you seek our advice when applying for these concessions/exemptions. Check with us to see if you are eligible for any of the following:
Principal place of residence exemptions
• Principal place of residence
• Land intended as your principal residence
• Selling your former principal residence
• Land used for incidental business
• Absence from your former residence
• Deceased estates
• Permitted occupancies
Principal place of residence concessions (mixed use properties)
Primary production land exemptions
Other land tax exemptions
• Boarding houses
• Low cost accommodation
• Residential parks, including caravan parks
• Non-profit organisations
• Retirement villages, aged care establishments and nursing homes
• Conservation agreements
• Other miscellaneous exemptions
For more information on land tax or to find out if you are eligible for any of the above concessions or exemptions contact our experienced team of lawyers and accountants here at The Quinn Group. For this, or any other accounting or legal advice submit an online enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to book an appointment.
LAND TAX IS DUE SHORTLY.
If you do not receive a notice of assessment but think that you are liable to pay land tax this year, please contact us to discuss this further.