What Is Land Tax?
Land tax is an annual tax levied at the end of the calendar year on property you own that is above the land tax threshold. Your principal place of residence is exempt from land tax, and other exemptions and concessions may apply.
Land tax is different to property tax. Read more about property tax.
We will discuss Land Tax as it applies in NSW but the concepts are largely similar across all of Australia’s other states.
Who Pays Land Tax?
You may have to pay land tax if you own, or jointly own:
- vacant land, including rural land
- land where a house, residential unit or flat has been built for investment purposes
- 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.
Additionally, you may have to pay land tax if:
- You are deemed a foreign owner for land tax purposes (this includes properties opted into property tax).
- You are a not-included owner for a property opted into property tax and your aggregated land value of all properties owned is above the land tax threshold. For further information regarding land tax implications for properties opted into property tax, please refer to the property tax page.
Land tax applies regardless of whether income is earned from the land or not.
Generally, you do not pay land tax on:
- your home, known as your principal place of residence
- your farm, known as primary production land
- any land you own with total taxable value below the land tax threshold.
Read more about land tax exemptions and concessions.
How Is Land Tax Calculated?
Land tax is calculated on the total value of all your taxable land above the land tax threshold, not on each individual property. If the combined value of your land does not exceed the threshold, no land tax is payable. Your liability for each year is based on the value of all land you owned on 31 December in the previous year. Any changes to the land you own this year will only affect how much you pay next year. Estimate your land tax liability and surcharge (if applicable) with the land tax calculator below.
If the ownership and/or use of any of your land changes, notify the Office of State Revenue by lodging a return through land tax online.
Thresholds
The thresholds for land values change each year and are applied as follows:
- General threshold: $100 plus 1.6 per cent of land value above the threshold, up to the premium threshold.
- Premium threshold: $88,036 plus 2 per cent of land value above the threshold (2024 tax year).
- The threshold is published in the government gazette on or before the first Friday of December each year. Prior to 2023 the threshold was published in October each year.
- Land tax is applied for the full year following the taxing date of 31 December, and no pro-rata calculation applies.
| Tax Year | General Threshold | Premium Threshold |
|---|---|---|
| 2024 | $1,075,000 | $6,571,000 |
| 2023 | $969,000 | $5,925,000 |
How Is Land Valued For Land Tax?
The Valuer General determines the value of all land in NSW at 1 July each year. Land value is the unimproved value of your land. The property value without any buildings or civil works.
The taxable value of each parcel of land is determined on the average value from the current year and the two past years, where applicable.
When a parcel of land has been created less than three years ago – for example, through a subdivision or amalgamation – we only consider the years after it was created.
Example
| Year | Your Land Value |
|---|---|
| 2021 | $1,050,000 |
| 2022 | $1,100,000 |
| 2023 | $1,150,000 |
| Average Value | ($1,050,000 + $1,100,000 + $1,150,000) / 3 = $1,100,000 |
In the above example, your average land value for land tax purposes in the 2024 tax year is $1,100,000. Find out more about the method for valuing land.
You can also look up the average values in your local area, complete a land value search, or object to the valuation of your land.
Register For Land Tax
You must register for land tax if the value of all your taxable land is above the land tax threshold, even if you have not received a land tax notice of assessment from Revenue NSW. Our tax system relies on you to honestly and voluntarily self-assess and comply with your land tax obligations.
If you are liable for land tax but do not register, or fail to lodge a return, you may be charged interest and penalties under the Taxation Administration Act 1996.
You can register for land tax online using the Revenue NSW website.
Your Notice of Assessment
If you are liable for land tax, you will receive an annual notice of assessment that will include a list of all NSW land you owned on 31 December the previous year and how much land tax you must pay.
If you do not receive a notice of assessment, please contact us to find out if you are liable for land tax.
Check Your notice of assessment
Check that the following details on your notice of assessment are correct:
- all land that you owned on 31 December last year is listed
- land that has been granted an exemption has been highlighted
- you’re not falsely claiming an exemption on any land
- your foreign owner status is up to date.
If your details are incorrect, update them via your Service NSW Account by lodging a return through land tax online before the due date on your notice of assessment.
Update Your Land Tax Details
It is important that you keep your details up to date. This is because incorrect information can lead to delays in correspondence with Revenue NSW, assessment errors and penalties.
You need to declare any changes to your property or personal details, for example:
- you have changed your postal address or other contact details
- you no longer meet the eligibility criteria for your exemption or concession on all or part of the land
- you have a change in land usage
- the land details on your notice of assessment are incomplete or incorrect
- your foreign person status needs amending
You need to let Revenue NSW know when your circumstances change via their online portal. Penalties may apply if you do not notify then within certain timeframes.
Objections and Reviews
If you believe the Office of State Revenue have applied the legislation incorrectly to your assessment, you have the right to lodge a formal objection. Your objection must be lodged within 60 days of the assessment or decision being made.
If you have additional information that we haven’t previously considered, including applying for an exemption, you should lodge a variation return rather than an objection. You should do this through Land Tax Online, on or before the first due date of your notice of assessment.
To submit your objection, you will need to provide the following information:
- Reference number: Enter your Client ID, which can be found on correspondence we sent to you.
- Your details: Enter customer’s name, contact’s name, email address, phone number and select the objection type.
- Message: Outline grounds for objection within 60 days of your assessment. You must provide reasons if your objections are submitted late. You can upload files to support your objection. The onus is on you to prove your case.
Please note: even if you’ve lodged an objection, you must still pay by the due date as interest will be imposed on any overdue amounts, and a refund will be issued to you if your objection is successful. Like all things tax, pay first and argue later!
If you are dissatisfied with the result of your objection, you can request an external independent review.
If you disagree with your land value shown on your assessment you can go to valuergeneral.nsw.gov.au for more information about land values and the review process. You have 60 days from the issue date on your land tax assessment notice to lodge an objection to the land value.
Manage Your Land Tax
You can easily manage your land tax online with your Service NSW Account or by creating an account.
The Office of State Revenue’s digital platform will enable you to access your land tax conveniently alongside other services available through Service NSW.
If you have received a letter from Revenue NSW requesting you to complete a task, follow the instructions in their online services guide.
Useful Links
NSW
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax
QLD
https://qro.qld.gov.au/land-tax/
VIC
https://www.sro.vic.gov.au/land-tax
TAS
https://www.sro.tas.gov.au/land-tax
SA
https://www.revenuesa.sa.gov.au/landtax
WA
https://www.wa.gov.au/organisation/department-of-finance/land-tax
NT
There is no land tax in the NT 🏆
