2016 Land Tax Registration

Overview

New South Wales Land Tax applies where:

  • You owned land in New South Wales at midnight on 31 December 2015; and
  • The Valuer General’s three year average valuation of your total NSW landholding interests that do not qualify for the principal place of residence exemption is more than $482,000 (or nil for certain “special” trusts such as discretionary trusts). Land tax does not apply to the value of improvements such as buildings. Grouping rules apply to related companies.

Where the initial threshold is exceeded the land tax is $100 plus 1.6% of the excess over the threshold up to $2,947,000. For more valuable properties the land tax is $39,540 plus 2% of the excess over $2,947,000. The $482,000 threshold does not apply to special trusts.

Principal Place of Residence Exemption

Land tax is not normally applied to properties occupied as the family home. Where a property has multiple owners it only needs to be the home of one of the co-owners to qualify for this exemption.

Each family, including children under 18, can normally only claim this exemption for one property (with a limited concession for changing residence). Special rules apply to extended absences.

Other exemptions may apply, for example, land used for primary production and certain types of other accommodation.

Land Tax Administration and Registration

Land tax can normally be paid over three instalments or in a lump sum – which qualifies for a 1.5% discount.

If you are subject to land tax for the first time you need to submit a registration form to the NSW Office of State Revenue (“OSR”) by Thursday 31 March 2016. The OSR will use your information to generate a land tax assessment notice.

Please contact us if you need assistance with the registration process.

If you have previously registered for land tax the OSR will also generate a notice of assessment. You then have 60 days to lodge a variation return or objection, for example where:

  • You have sold a property previously subject to land tax
  • An investment property has become your family home
  • You have bought a property that does not qualify for a land tax exemption
  • The assessment is otherwise incorrect

If you disagree with the current land valuation you can object by writing to the NSW Land and Property Information department within the 60 day period from the issue of the assessment.

Interstate Land

Land tax applies in all Australian states and the Australian Capital Territory – there is no land tax in the Northern Territory.

You may need to register separately for land tax in each Australian jurisdiction where you own land. Unlike payroll tax, the land tax thresholds apply separately to the land in each particular state – for example, if own investment properties in both NSW and Victoria you receive two separate thresholds.

More Information

If you have any questions or require assistance with land tax registration please contact your client service partner at UHY Haines Norton.