How is land tax calculated?

[ej89]

Hey,
Newbie question but I'm happy to embarass myself with it lol
So I hear a lot of people calling for no land tax at the moment in Sydney.. E
How is land tax calculated? Is it calculated on the purchase price or the current value?
If current value, how is value determined firstly? Secondly, if the value goes up or down does that mean you're paying more or less tax?

Sorry for the silly question.. It's not so much about the brackets that the value is in, just more so is it calculated on purchase price or current value.. Haven't found anything when I searched on google..

 

[RPI]

Not silly at all

it is on the unimproved capital value in QLD. This is a figure for the land value but with no improvements on it. It is usually a lot less than the market value of the land

 

[Paul@PFI]

Hey,
Newbie question but I'm happy to embarass myself with it lol
So I hear a lot of people calling for no land tax at the moment in Sydney.. E
How is land tax calculated? Is it calculated on the purchase price or the current value?
If current value, how is value determined firstly? Secondly, if the value goes up or down does that mean you're paying more or less tax?

Sorry for the silly question.. It's not so much about the brackets that the value is in, just more so is it calculated on purchase price or current value.. Haven't found anything when I searched on google..

Land tax is a state tax. It is administered by the relevant State Revenue agency - ie NSW Office of State Revenue.

Each of these agencies has a website - Google "Land Tax NSW OSR" and the information pages will provide you with sufficient info. Each state has similiarity except ACT where land tax is another term for council rates but since there is no local govt its called land tax.

Land tax is based on the unimproved land value determined by the relevant state land valuation agency. They now often contract private valuers to do the vals. Each property isn't specifically valued which can sometime mean that valuations need to be objected to if it imposes a excessive burden or if the property has charecteristics that affect it. ie it is narrow and cannot be built on like a normal lot. Revals are done every so often. NSW uses a smoothed average of vals for three years and the threshold is also smoothed in a similar manner. This is meant to avoid big ups and downs. Every now and again states adjust the threshold for bracket creep.

In NSW land tax is a two tier system. Basic land tax applies to most property. High value land has a premium rate applied.

Some land is exempt the main one being the principal place of residence. Other land can be exempt of concessionally dealt with.

Land tax is a first charge over land and any liability passes to the new owner. A land tax clearance certrificate clears the purchaser of that problem and its a normal part of the conveyance process.

Registration for land tax is not part of the settlement process. Its the owners responsibility not the tax agents or solicitor.

 

[Scott No Mates]

A good starting point: www.osr.nsw.gov.au

Look at the section on land tax.

If you get bored with that read the land tax management act.