Land Tax in Australia – What Is It? & Do I Need to Pay?

Land Tax is payable if you own or jointly own a residential property within Australia that is not your principal place of residency and the total value of the property is greater/over the land tax threshold.

The ownership of a property (including land) that is intended as an investment whether to; build, subdivide or renovate for profit then Land Tax will be applicable. On a side note if you profit from the transaction you may also be liable for CGT (Capital Gains Tax) & GST (Goods Service Tax), consulting your accountant is highly recommended prior to proceeding with any purchase.

Land Tax is issued/paid yearly. When multiple properties are owned (non-primary residency use) the issued invoice is worked out on an aggregated basis. Links to each States Government department and their specific rates can be found below. *Please note that each year the figures used within the formula to calculate will be updated.

It is also worth mentioning that all states including the ACT are included, except for the NT (Northern Territory).

Note: If the property is your primary place of residency or in other words the property you live in you do not need to pay Land Tax.

Ownership; both sole or jointly owned is defined by the following:

Sole owner, joint owners, company, trust, beneficiary of a trust which is not a special trust, owned by a society who is not exempt (e.g. not for profit), unit holders within a trust, trustees of a superannuation fund (including Self-Managed Superannuation Fund) & lessees of crown or local council land (e.g. properties on lease hold agreements etc.)

Types of properties you have to pay Land Tax on:

Residential unit or flat, holiday home, vacant land (including rural), investment properties, commercial properties (including factories/warehouse, shops etc.) & lessees of crown or local council land (e.g. properties on lease hold agreements etc.)

Great links to State Government websites and other Resources:

NSW Government:
http://www.osr.nsw.gov.au/taxes/land

ACT:
http://www.revenue.act.gov.au/duties-and-taxes/land-tax

SA:
http://www.revenuesa.sa.gov.au/taxes-and-duties/land-tax

TAS:
http://www.sro.tas.gov.au/domino/dtf/SROWebsite.nsf/v-all/Overview%20-%20Land%20Tax?OpenDocument&menuitem=Land%20Tax

VIC:
http://www.sro.vic.gov.au/land-tax

QLD:
https://www.treasury.qld.gov.au/taxes-royalties-grants/land-tax/index.php

 

 

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