Home Property & You What’s the NSW Land Tax Threshold?

What’s the NSW Land Tax Threshold?

What Is The Land Tax Threshold In NSW?
What Is The Land Tax Threshold In NSW?

The land tax threshold is an important factor for property owners in New South Wales (NSW) to consider. It determines whether or not they are required to pay land tax on their property. The threshold is set by the NSW government each year. It varies based on the total value of the land owned.

For the 2024 land tax year, the general threshold is $1,075,000 and premium threshold is $6,571,000. If the total value of the land owned is below the general threshold, then no land tax is payable. However, if the value exceeds the threshold, then the owner is required to pay land tax on the amount that exceeds the threshold.

The land tax threshold is subject to change each year. Property owners in NSW should keep up to date with the latest information from the NSW government. This ensures that they are aware of any changes that may affect them.


What Is The Land Tax Threshold In NSW?

What Is Land Tax?

Land tax is an annual property tax levied on the owners of land in the state government of NSW. The land tax threshold is the total value of taxable land that an individual or entity owns before they become liable to pay land tax. The threshold is set by the NSW government. It is adjusted each year in accordance with the average value of the land across NSW.

How Land Tax Is Calculated

The thresholds for land values are adjusted annually and the following rates are applied:

  • General Threshold: $100 plus 1.6 percent of the land value above the threshold, extending to the premium threshold.
  • Premium Threshold: For the 2024 tax year, the premium threshold is $88,036 plus 2 percent of the land value above the threshold.

These threshold figures are officially published in the government gazette on or before the first Friday of December each year.

Land tax is enforced for the entire year following the taxing date of December 31, with no pro-rata calculation applied. To calculate the land tax payable, you can use the Revenue NSW land tax calculator.

NSW Land Tax Threshold – 2020 to 2024

The table below shows the general threshold and the premium threshold land values from 2020 to 2024.

Tax YearGeneral ThresholdPremium Threshold
2024$1,075,000$6,571,000
2023$969,000$5,925,000
2022$822,000$5,026,000
2021$755,000$4,616,000
2020$734,000$4,488,000

General and Premium Thresholds

The general threshold applies to all landowners. The premium threshold applies to those who own land with a total value above the general threshold. The NSW Government Gazette publishes the land tax thresholds for each land tax year.

If the combined value of all taxable land owned by an individual or entity is below the general threshold, then no land tax is payable. If the combined value of all taxable land owned by an individual or entity is between the general and premium thresholds, then only the general threshold amount of tax is payable.

For landowners with a combined value of all taxable land above the premium rate threshold, be it vacant land or built-up land, they will have to pay both the general and premium rates.

For further information on payment of land tax in NSW, visit the NSW State Revenue Offices or Revenue NSW website.

Property owners who receive a land tax assessment notice must pay the first instalment by 31 March. The second instalment is payable by 30 September of the same year. If the combined value of your land is above the premium threshold, they may also be liable to pay the land tax surcharge.

Investment property or properties and land held in unit trust are also subject to land tax. Landowners who have received a notice of assessment and disagree with their land valuations can object to the assessment within 60 days of the taxing due date.

Understanding the land tax threshold is important for all landowners because it helps them to plan their long-term land holdings and land tax liabilities.


Related Post: Can I Pay Stamp Duty in Installments in NSW?

Related Post: How Much Deposit Do I Need for an Investment Property in Australia?


Specifics of NSW Land Tax Thresholds

2024 Land Tax Year Details

The land tax threshold in NSW is the value of your taxable land that is exempt land from land tax. The general threshold for the 2024 land tax year is $1,075,000 whilst the premium threshold is $6,571,000. Trusts like SMSFs, family trusts, unit trusts or discretionary trusts as well as companies are also subject to land tax.

Exemptions and Concessions

There are various exemptions and concessions available for land tax in NSW. Exemptions are available for primary production land, land owned by non-profit organisations, and land used for public or charitable purposes. Concessions are available for first home buyers or first-time buyers, residential land used as a principal place of residence or main residence, and land used for boarding houses or caravan parks.

Surcharge for Foreign Owners

Foreign owners of residential land in NSW are subject to a land tax surcharge. The surcharge is an additional 2% of the land value for the 2024 land tax year. Foreign persons are also subject to a surcharge on stamp duty and land tax for residential land.

Land tax is assessed annually and based on the value of the land as of the settlement date. The assessment notice is usually sent out in January of each year. If a property is sold during the year, the vendor may be required to obtain a Section 47 clearance certificate to clear any charge on the land.

In case of any objections or disputes, the land tax management act provides for consultation with client service providers, accountants, and legal advice. The amount of land tax payable can be estimated using the land tax calculator available on the Office of State Revenue website.

LEAVE A REPLY

Please enter your comment!
Please enter your name here