Land Tax - The Facts

Land Tax is something we have written about previously this year but it is an area that we have considerable enquiries about so we thought we would provide information on the most frequently asked questions:

What is Land Tax?
It is an annual state government tax payable by the owner of the land. It is imposed in all states and ACT but not the Northern Territory. Each state and territory administers its own land tax laws. The laws are comparable between states with some variations.

Do I have to pay Land Tax on my Principal Place of Residence?
Your principal place of residence is generally exempt from land tax.

Do I have to pay land tax on property that isn’t earning any income?

Yes if your property is not exempt from land tax then it will be subject to land tax even if it is not earning income eg holiday house, hobby farm.

If I sell land part way through the way, do I receive a part refund for the land tax that was paid?

No, but the contract for the sale of the land may allow you to recover a portion of the land tax you paid from the purchaser. This is a matter for you to negotiate with purchaser prior to signing contract.

Do I have to pay Land Tax if on the 31st December I am in the process of selling my principal place of residence by I have already purchased my new place of residence?

You may be able to claim an exemption on both properties.

Do I have to pay land tax on my newly constructed residence if it is not ready for occupancy by 31 December?

If you buy land with the intention of building your place of residence, you can claim an exemption of up to 2 years after the date of purchase if you do not own and occupy an existing place of residence.

Do I receive a rebate if my land is rented at 31 December and I occupy it as my principal place of residence?

No if the property is taxed on the taxing date (31st December) then you are liable for the full amount of land tax for that year.

Who is considered to be a land owner for land tax purposes?

Sole owners, joint owners, companies, a trustee of a trust, a beneficiary of a trust, a shareholder in a home unit company are all considered land owners for land tax purposes.