23
Nov
2022

Land tax is an annual tax payable at the end of each calendar year on properties that are above the land tax threshold.

It is calculated on the combined value of all properties owned by you. If the total value does not exceed the land tax threshold, no land tax is payable.

The Valuer General determines the value of all land in New South Wales at the beginning of each financial year. This amount is calculated on the unimproved value of your land.

Below is a summary of the 2022 and 2023 thresholds: –

Who is exempt from paying Land Tax?

The good news is that there is no land tax payable on the following properties:-

• Your principal place of residence;
• Land that is used for primary production; and
• Land you own with a total taxable value below the land tax threshold.

Further to this, there are concessions available in circumstances where you are moving between homes, building a home before moving in, deceased estates and on mixed-use properties.

Land Tax when buying a property

When buying a property, it is crucial for you to perform your due diligence and have your solicitor review the Contract for Sale.

All Contracts for Sale of Land in NSW contain a land tax adjustment box. If this box is marked ‘yes’, then you will be liable to reimburse the Vendor for the land tax paid from the adjustment date to the end of the calendar year.

A solicitor may be able to negotiate for land tax adjustments to be deleted if Contracts have not exchanged or are under a cooling off period.

Land tax can be a very complex and expensive issue so if you require any assistance with respect to land tax matters or are thinking about entering into a property transaction, please contact our team at Anderson Boemi Lawyers on 02 9653 9466.

Disclaimer

The content of the Anderson Boemi Lawyers website is provided for information purposes only. The contents of this website do not constitute legal advice and should not be used as such. Formal legal advice should be sought in particular matters. If you have a particular matter you need legal advice for, or you have any questions about our disclaimer please contact our office on (02) 9653 9466.