Revenue New South Wales has informed that the 2023 Land Tax Notice of Assessments will be sent from Wednesday 04 January 2023 through to mid-February 2023.
Land tax is an annual tax levied on the owners of land in New South Wales as of midnight on 31 December of each year on land values that are above the land tax threshold.
Land tax applies regardless of whether income is earned from the land.
If you buy or sell a property, land tax is based on the settlement date not the contract or exchange date.
Who Pays Land Tax?
You may have to pay land tax if you own, or jointly own:
- Vacant land, including rural land
- Land warehouse, residential unit or flat has been bought
- A holiday home
- An investment property or properties
- Company title units
- Residential, commercial or industrial units, including cost basis
- Commercial properties, including factories, shops and warehouses
- Land leased from the state government.
Thresholds for the 2023 Land Tax Year
The thresholds for your land values change each year.
The general threshold for the 2023 land tax year is $969,000.
The premium threshold for the 2023 land tax year is $5,925,000.
Note that the thresholds do not apply to some trusts.
How is Land Tax in New South Wales calculated?
Land tax is calculated by:
The general threshold applies then $100 plus 1.6% of land value above the threshold, up to the premium rate.
For example, if you own a property with a land value of say $1 million then the general threshold calculation will apply and the land tax is calculated as follows:
$1,000,000 – $969,000 = $31,000 then
$100 plus 1.6% of $31,000 = $100 plus $310 = $410.
If the premium rate applies then $67,364 plus 2% of land value above the threshold.
How is Land Valued for Land Tax?
Every year, the valuer general determines the value of all land in New South Wales as at 01 July each year.
The taxable value of each parcel of land is determined on the average values from the current year and the past two years, where applicable.
Your Assessment Notice
If you are liable for land tax, you should receive an annual assessment notice that includes a list of all New South Wales land you own as at 31 December the previous year and how much land tax you are required to pay.
If you have any queries in relation to your land assessment notice, please do not hesitate to contact us. We can assist you in advising whether for example, you are able to claim an exemption to pay land tax such as the principal place of residence exemption, the primary production of land exemption applies and whether the type of trust holding the land qualifies for the land tax threshold or not.
