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. The land tax threshold changes from year to year. The amount can be found on the Revenue NSW website https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax.
The Land tax threshold for 2023 calendar year is $969,000.00. It is important to note that this is not market value, this is purely the unimproved value of the land as determined by the Valuer General at 1 July each year.
Generally, you do not pay Land tax if:
1. The property is your Principal Place of Residence (i.e. you live in it and treat it as your home).
2. The property is a Farm and used for Primary Production Purposes.
3. Any land you own with total taxable value below the land tax threshold.
It is important that you are aware of your potential liability for Land tax and that you keep your details up to date with Revenue NSW. This means:
1. Updating your contact details and/or your residential address as it changes.
2. Updating the change in the usage of the Land (if applicable).
If you do not keep your details up to date you risk delaying the assessment and receiving a backdated lump sum bill.
If you have any questions in relation to Land tax you should contact your Accountant. For general advice you may call our team of solicitors on 4627 3333.
This article was published on 29/11/23 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter and is not and should not be considered or relied on as legal, advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.