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An owner includes a sole owner, joint owners, a company, a trustee of a trust, a beneficiary of a trust, a shareholder in a home unit company and /or any person deemed to be an owner by the land tax legislation including a person who leases land from the Crown or from a Local Council.
In most cases Revenue New South Wales (RNSW) will issue land tax assessments to each owner in their respective proportions. The ownership proportion is shown on the land tax assessment.
Ownership is based on ownership as at midnight on 31 December in any year.
Land tax rates and land tax thresholds are determined each year by RNSW.
Land Tax is calculated on the total value of all your taxable land above the statutory threshold (see below), subject to any exemptions as may apply in the circumstances.
There are two thresholds – the general threshold and the premium threshold. A different land tax rate applies in each threshold.
The general threshold rate is $100 plus 1.6% of the total value over the threshold up to the premium threshold.
The premium threshold rate is 2% of the total land value above the premium threshold.
The threshold is published by the NSW Valuer General in October each year and applied to land holdings as at 31 December each year.
The thresholds for the past few years are as follows:
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
If you own or have interests in more than one property then the value of all your liable land will be added together. You will then be charged land tax on the combined land value above the land tax threshold.
Each taxpayer is only entitled to the benefit of one threshold.
There are certain statutory exemptions. For instance if your property is your principle place of residence and is not owned by a company or trust, it will be exempt from land tax.
Other statutory exemptions include:
Allowances relating to heritage and other affectations could apply. These are usually noted on your land tax assessment. If not, a separate application should be made to RNSW. Please contact us and we can elaborate.
The property will be subject to land tax even if it is not income producing (e.g. a holiday home, a hobby farm or vacant land).
You are required to notify RNSW accordingly. A land tax return should be filed by you or your tax agent.
The VG is usually notified automatically on registration of the transfer of the property into the name of the purchaser.
Land tax is applied for the full year following the taxing date of 31 December – no pro rata calculation is applied.
The land tax assessment is based on land ownership as at midnight on 31 December each year. If you own property at that time then you are liable for the duty as assessed.
If you sell your property during the year then you need to notify the OSR accordingly.
As between the buyer and the seller, it is possible to agree with the buyer that land tax be apportioned as at the date of settlement of the sale of the property, but this is something that should be expressly negotiated with the buyer at the time of sale.
You are not entitled to a refund if you sell your property during the year.
You may be entitled to a land tax exemption (on both properties) in certain circumstances – as long as one residence is or was your principal place of residence and the newly purchased residence is or will be your principal place of residence.
You need to pay your land tax by the first instalment date shown on your land tax notice of assessment.
If you pay your land tax in full by this date, you will be eligible for a 1.5% discount on your land tax.
Interest and other penalties apply for late payment.
The payment options are specified in the land tax assessment.
The Commissioner may extend the time for payment in certain circumstances.
For substantial debt amounts you may have to complete and return an Application for a Payment Arrangement.
This is possible only in cases of financial hardship.
Seniors are not automatically entitled to an exemption or deferral.
A special application must be made to the Department of Lands in such circumstances. We can assist if you think this may apply to you.
If a property was the deceased’s principal place of residence it will be exempt from land tax for 2 years after the date of death, or until the land is transferred to any person (other than the deceased person’s personal representative or a beneficiary of the deceased person’s estate) – whichever occurs first. If the deceased’s principal place of residence is still used and occupied as the principal place of residence by a person living in the residence who was given a right to occupy by the will of the owner (for instance by virtue of a life interest in the property) or a person (other than a tenant) who lived with the owner immediately before their death and who continues to live in the residence with the permission of the deceased person’s representative (usually the executor of the estate) then that person is considered to be the “owner” of the land for land tax purposes and land tax is not payable – but only while the person continues to use and occupy the land.
Yes. New rules came into existence in June 2016.
If you are defined as a “foreign person” who owns “residential land” in NSW, then you must pay a land tax surcharge.
The definition of “foreign person” is extremely broad and includes foreign individuals, corporations, trusts and governments.
Each of the following for instance is a “foreign person” for the purposes of the surcharge:
There are specific provisions in the legislation dealing with the meaning of “ordinarily resident”, “substantial interest”, “aggregate substantial interest” and “residential land”.
The surcharge does not apply to Australian citizens (even if the individual holds dual citizenship).
Please contact us for further detailed information on whether the surcharge applies to your circumstances.
If you are defined as a “foreign person” who owns residential land in NSW, then you must pay a land tax surcharge.
This surcharge is in addition to any other land tax you may be liable to pay.
The surcharge rate is:
You must pay the surcharge on the taxable value of all “residential” land that you own as at 31 December each year.
The surcharge is assessed in relation to each parcel of “residential land” and is proportional to ownership.
Please contact us for further detailed information on whether the surcharge applies to your circumstances.
No. The surcharge purchaser duty is a separate surcharge and must be considered if a “foreign person” is intending to purchase “residential land” in NSW.
Other “dutiable transactions” (as defined in the NSW Duties Act) may also attract the surcharge purchaser duty.
Please contact us for further detailed information on these concessional arrangements.
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