Land tax on land in the state of New South Wales.
Midnight 31 December
Corporate entities and trusts
Related companies’ holdings are grouped and one threshold applied to the aggregated values. A company is considered to be a related company if two or more companies are commonly owned or controlled.
Non-fixed trusts and non-concessional companies are assessed at premium rates with no tax-free threshold.
Exemptions and concessions
Principal residence is exempt, including:
- if moving house: an additional residence within 6 months before or after moving
- unoccupied land acquired with the intention to build or renovate, exempt for up to 4 years after acquisition (or of expiration of a pre-existing tenancy)
- a residence with owner absent for up to 6 years, having no other principal residence
- a residence whose owner is deceased, for up to 2 years
- a partial exemption for partial use as principal residence
Rural zoned land used predominantly for primary production is exempt. Non-rural can also be exempt if it is used for primary production with a ‘significant and substantial commercial purpose or character’, and on a for-profit basis. (Land Tax Management Act Sec 10AA)
The NSW Court of Appeal has held that land held for future development but used for grazing, can be exempt from land tax. See Land tax win for property developers, primary production
Land used and occupied primarily for low-cost accommodation or as a boarding house, for aged care or retirement is exempt.
Land owned by non-profits and charities, child care centres and non-government schools is exempt.
Land tax rates
Current NSW land tax rates are below. The threshold applies to the aggregated value of all land owned by an owner (or group when applicable).
The land value for assessment purposes is determined by the Valuer General of NSW, and is based on an average of the determined values as at 1 July for the previous 3 years. Valuations for strata units are apportioned according to the unit entitlement for each lot.
Update 18 June 2019 From 1 July 2019, holders of retirement visas (subclass 410 and 405) will be exempt from foreign investor surcharges on transfer duty and land tax for principal places of residence. See Budget measures
Update 20 June 2017 See budget measures
Update 21 June 2016 Measures affecting foreign investors were announced in the 2016-17 budget, which include:
- 4% stamp duty surcharge on purchase of residential real estate from 21 June 2016, and no further 12 month deferrals payment of stamp duty for off-the-plan purchases from 2017
- 0.75% land tax surcharge on residential real estate starting from 2017, and
- no longer entitled to a tax-free threshold for the land tax surcharge
From 18 July 2016, a purchaser declaration must be completed by any person entering into a transaction on or after 21 June 2016, that results in the acquisition of an interest in land in NSW.
See further information here. See also:
- February 20, 2018 Nuts and Bolts of Land Tax Surcharge and Discretionary Trusts
- April 26, 2017 Foreign trusts – NSW surcharge land tax and surcharge purchaser duty
- April 6, 2017 Land Tax Surcharge and Stamp Duty Surcharge – Impact on Discretionary Trusts
Land tax payment
Land tax can be paid in 3 monthly instalments, or in one payment with a discount of 1.5%.
A land tax assessment objection must be lodged within 60 days of the date of service of an assessment or decision, extendable with Commissioner’s approval. See Objections and reviews
More detailed information
This page was last modified 2019-02-28