Land tax is a tax on the land you own in NSW as at midnight on 31 December of the previous year. Land Includes:
• Vacant land
• Land where a house, residential unit or flat has been built
• Holiday homes
• Company title units
• Residential, commercial or industrial units
• Commercial properties, including factories, shops and warehouses.
If you own any property that is not your principal place of residence (your home), including a holiday house or unit, you may be liable to pay land tax. This includes property that does not earn any income.
The amount of land tax payable depends on the combined value of any taxable land you own or have an interest in, excluding exempt land, which is above the land tax threshold.
Your principal place of residence is generally exempt from land tax. If a company is the owner, they are not entitled to an exemption for a principal place of residence.
Land that is zoned rural or non-urban and used mainly for primary production is exempt from land tax.
The Valuer General values all land in NSW. Values are determined on 1 July proceeding each land tax year. These valuations are separate from those made approximately every three years for local government rating purposes.
Land tax is calculated on the combined value of all the taxable land you own. The land tax threshold for 2009 is $368,000. This means your land assessment is calculated on the combined value of all the taxable land you own above this threshold. The amount of tax is $100 plus 1.6 per cent of the land value in excess of the threshold.
Where land is owned in partnership one threshold applies regardless of the number of owners. That is, where land is owned in partnership the threshold would still be $368,000.
If the combined value of your land is equal to or under the threshold no land tax is payable.
General Example:
|
Total taxable |
Rate of land tax payable |
Example |
Land Tax Payable |
|
$470,000 |
1.6cents for each $1 |
Total Value = $470,000 |
$1 732 |
|
|
|
Threshold$368,000 |
($1456 + $100) |
|
|
|
Value of land above the land tax threshold $102,000 |
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|
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Rate of land tax payable $102,000 x 1.6% plus $100 |
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For more information about your land tax liability or for some assistance is preparing your land tax submission, contact The Quinn Group on 1300 QUINNS or click here to submit an online enquiry.
