Land Tax

Land tax laws can be complex and subject to change from time to time. That's why you really MUST seek professional advice from an experienced accountant to check if and when land tax may apply to your circumstances.

What is land tax?

Land tax is an annual tax payable by owners of land. Land Tax is administered by state or territory government and is applicable everywhere except for the Northern Territory. The laws between states are comparable, but there are some variations.

Land tax in New South Wales

Who needs to pay?
You may need to pay land tax if you own, or jointly own, any property in NSW that is not your principal place of residence (your home) or other exempt land as at midnight on 31 December and the total taxable value of your land is greater than the land tax threshold.

For land tax, an owner is defined as any of the following:

  • Sole owner
  • Joint owners
  • A company
  • Owners of company title units
  • Trustee of any trust
  • Beneficiary of a trust which is not a special trust
  • Society or organisation whose land is not exempt
  • Unit holders with interest in a unit trust which is entitled to the land tax threshold
  • Trustees of superannuation funds
  • Certain lessees of crown or local council land

What types of property are liable for land tax?

You may have to pay land tax on:

  • Vacant land, including vacant rural land
  • Land where a house, residential unit or flat has been built
  • A holiday home
  • An investment property or 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

Land tax rates and thresholds

The current rates and thresholds are listed below:

  • 2015 $432,000 $100 plus 1.6% up to the premium threshold.
  • $2,641,000 and over (Premium threshold) $35,444 for the first $2,641,000 then 2% over that.

Do I need to register for land tax?

If the total value of your taxable land is greater than the land tax threshold, you will need to register for land tax.

How can we help you?

Reach out to discuss which options would work best for your needs.

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