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NSW Land Tax Objections
- Which government department handles the valuation and objection functions?
- How long do I have to file my objection?
- Can I get an extension of time to file an objection?
- Can DLS lodge an objection on my behalf?
- What information is contained in my Land Tax Assessment?
- What information is contained in the Notice of Valuation?
- What are the possible grounds for objection?
- What is the Valuation Method used in assessing my land tax liability?
- How do I complete the objection form?
- Does someone from the VG inspect my land before determining the assigned value?
- What is the objection process?
- How long does the objection process take?
- What if my objection is allowed?
- What if my objection is disallowed?
- Can I defer my land tax liability if I file an objection?
- How can DLS help me?
1. Which government department handles the valuation and objection functions?
The NSW Valuer General (VG) manages and oversees the land valuation process.
The NSW Department of Lands processes all land tax objections.
The NSW Office of State Revenue (OSR) manages the collection of all land tax revenue.
2. How long do I have to file my objection?
Taxpayers have 60 days from the date of issue of the land tax assessment/ Notice of Valuation to file an objection.
3. Can I get an extension of time to file an objection?
Extensions are granted at the discretion of the Commissioner only in exceptional circumstances.
4. Can DLS lodge an objection on my behalf?
Yes. Objections can be filed by solicitors, accountants and other agents on behalf of a taxpayer.
5. What information is contained in my Land Tax Assessment?
Land Tax Assessments are issued on an annual basis.
The Land Tax Assessment shows the name of the taxpayer, the total annual tax liability, any allowances granted and the date for payment of the assessment. It also shows the property value for the previous 3 years, and the average value applied for assessment purposes for the relevant year of assessment.
6. What information is contained in the Notice of Valuation?
The Notice of Valuation shows details of the owners and their postal address, the property address and property description details as recorded on the Register of Land Values, the land value as at 1 July in the valuing year, the date of the valuation and the last date on which an objection can be filed.
7. What are the possible grounds for objection?
Grounds for objection can be found in the NSW Valuation of Land Act:
- the values assigned for the property are too high or too low
- the area, dimensions or description of the property are not correctly stated
- the interests held by various persons in the property have not been correctly apportioned
- the apportionment of the valuations is not correct
- lands which should be included in one valuation have been valued separately
- lands which should be valued separately have been included in one valuation
- the person named on the Notice of Valuation is not the lessee or owner of the land.
- Heritage and/or other statutory concessions/allowances are incorrect.
8. What is the Valuation Method used in assessing my land tax liability?
Most land is valued using the “mass valuation” approach, where properties are valued in groups called "components".
The properties in each component are similar or are expected to reflect changes in value in a similar way.
A basket of representative properties are selected from components and individually valued each year to determine how much the land value has changed from the previous year.
During the valuation process, valuers analyse sales of both vacant land and improved properties, making adjustments for the added value of improvements.
The value of improvements is their worth as reflected by the real estate market in an area (not necessarily their replacement or insurance value). This change is then applied to all properties in the component to determine their new land values.
Factors such as the location of the land, the land size, shape and features, the local zoning applicable to the land, heritage restrictions, and nearby development and infrastructure are taken into account.
9. How do I complete the objection form?
Taxpayers must clearly indicate on the valuation objection form the ground(s) on which an objection is based.
Taxpayers must provide evidence to support any objection. Strong supporting evidence is sale prices of comparable properties prepared by a licensed valuer.
Factors such as your personal circumstances, council rates or land tax liability are not considered during the objection review process.
10. Does someone from the VG inspect my land before determining the assigned value?
It is highly unlikely that your property would have been inspected for valuation purposes, unless it was one of the representative properties selected within the relevant component code.
11. What is the objection process?
An objection must be filed by the due date. A representative from the Department of Lands will confirm receipt in due course. They may seek further valuation or other information in support. Their contract valuers may wish to inspect the property and/or meet with you to discuss your objection and the valuation evidence submitted in support.
12. How long does the objection process take?
That depends on the nature and complexity of the objection, and whether or not the Department of Lands' contract valuer requires further information and/or to meet with the taxpayer in connection with the objection. It could take many months.
13. What if my objection is allowed?
The taxpayer (or DLS, if we are the lodging party) will be notified accordingly.
A new land tax may issue, depending on the circumstances. A refund of any overpaid land tax will be issued. You then have a right to appeal the determination if you are not satisfied with it in whole or part.
14. What if my objection is disallowed?
The taxpayer (or DLS, if we are the lodging party) will be notified of the determination. The objection may be disallowed in whole or in part. Reasons may or may not be given for the determination.
You have a right of appeal, within 60 days of the date of the notice of determination of the objection.
15. Can I defer my land tax liability if I file an objection?
No. The land tax is due and payable by the due date, whether or not an objection has been filed. Interest is payable if land tax is not paid by the due date.
The OSR will commence proceedings to recover outstanding land tax. In extreme circumstances the OSR may even place a caveat on the title to the property to protect its position.
16. How can DLS help me?
We can:
- Act on your behalf in preparing objections and liaising with the Department of Lands in relation to your objection.
- Review your position to ascertain whether any statutory allowances or exemptions apply.
- Review and advise on any disallowance of your objection.
- Consider the merits of an appeal against any disallowance.
- Assist with re-structuring your affairs to minimize land tax exposure.
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