Land Tax

Do you need help with land tax in NSW?  Peter Vickers Business Group has a team of specialist accountants and advisers with decades of experience in helping our clients with all aspects of taxation in Australia.

What is it and how does it work?

Land tax is a tax levied on all land owners (individually or jointly owned) in New South Wales (NSW)  and is applied at midnight on the 31st of December of each year. It applies to land regardless of whether income is earned from it and includes vacant, rural and land where a house, residential unit or flat has been built or is in the process of, or ready to be built.

Who is responsible for administering it?

It is administered by your state or territory government and is applicable everywhere except for the Northern Territory. In New South Wales this is Revenue NSW (formerly known as Office of State Revenue).

Who needs to pay it?

An owner with one or more parcels of taxable land (e.g. strata lots, investment properties, holiday houses, commercial premises, vacant land, company title units, etc.), is liable to pay the tax. Revenue NSW offers instalment plans so thankfully you won't need to pay the full amount in one hit. Late payments can attract a "premium rate" on what you owe plus quarterly-adjusted additional interest at a market rate, so prompt payment is highly recommended.

What about my home?

As your principle place of residence your home is generally exempt. This exemption can only be claimed for one property and must be the principle place of residence for at least one owner.

Are there any other exemptions?

Other exemptions may apply including:

• Caravan parks
• Boarding houses
• Childcare centres
• Low cost accommodation
• Primary production land

You may also be able to apply for an exemption if you are moving between homes, building or renovating before moving in, living away from home, where the owner has died or where the land is owned through a company or trust. More information on exemptions can be obtained from Revenue NSW.

How is it calculated?

The tax is calculated on the combined value of all the taxable land you own. Generally the threshold is $100 plus 1.6 per cent of land value above that threshold. The NSW Land Tax Threshold for 2022 is $822,000. This means your assessment is calculated on the combined value of all the taxable land you own above this threshold.

If you're concerned about your payment status with Revenue NSW talk to us for help and advice. Our team of specialist accountants have years of experience and are on hand to help with any questions or advice you might need. Call us today.

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