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NSW land tax thresholds announced for 2013

NSW land tax thresholds announced for 2013

1 December 2012

If you own any property in NSW that is not your principal place of residence as at midnight on 31 December 2012, including a holiday house or unit, you may be liable to pay land tax. 

How is land tax calculated? 

The amount of land tax payable depends on the combined value of any taxable land you own or have an interest in. The value of taxable land does not include any structures or improvements on the land such as a house. Any land you own outside of NSW is not subject to land tax in NSW, but may be subject to land tax in the relevant state or territory. 

Land tax is calculated on the combined value of all taxable land you own above the threshold – which for 2013 has been set at $406,000. 

The amount of tax payable is $100 plus 1.6 % of the land value between the threshold and the premium rate threshold ($2,482,000) and 2% thereafter. If the combined value of your land is equal to or below the threshold, no land tax is payable. 

If land is owned by a trustee of a special trust the land tax threshold does not apply and land tax will be charged at a flat rate of 1.6% of the taxable value of the land up to the premium threshold, and 2% thereafter. 

Primary production land is exempt from land tax.

Averaging land values 

From the 2007 tax year onwards, the taxable value of each parcel of land you own will generally be determined by adding the land value for the current tax year and the land values that applied for the two preceding tax years then calculating the average. 

For example:

  • 2013 land value $560,000 (land value as at 1 July 2012)
  • 2012 land value $450,000 (land value as at 1 July 2011)
  • 2011 land value $400,000 (land value as at 1 July 2010)
  • Total = $1,410,000 divided by 3
  • Average land value = $470,000 

What should you do if you think you are liable for land tax? 

If you own a property in NSW other than your principal place of residence and you think you may be liable for land tax, you need to register with the Office of State Revenue (OSR) prior to 31 March 2013. You can download a registration form at www.osr.nsw.gov.au or by phone on 1300 139 816, or contact your local Boyce Accountant for assistance. 

Source: NSW Office of State Revenue 

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