The basics of land tax

Land tax is an annual tax applied to properties classified as ‘general’ land. The amount of tax payable on land in this category is assessed as at 1 July each year. Land tax accounts are sent to owners at different stages between October and March.

What is general land?

General land (shown as ‘GEN’ on your land tax assessment) includes holiday homes, rental properties, and commercial or vacant land.

What type of land may not be taxable?

• The landowner’s principal place of residence
• Primary production land
• Land used by the owners for religious purposes
• Land used as a medical establishment
• Land used principally for Aboriginal cultural activities and is Aboriginal land
• Land used to operate a retirement village, or for related purposes
• Land subject to a conservation covenant
• Land owned by a charitable institution
  

What happens if I sell my taxable land?

Where land tax applies to a property, the tax must be paid on the sale or transfer of that land. The land tax payable is apportioned between the seller and the buyer.

What do I need to do if my property usage changes?

It is your responsibility to ensure the State Revenue Office have classified your property correctly. If your property use changes and it is no longer your principal residence land, primary production land or exempt land, or if you are renting any part of your property, you must notify the Commissioner of State Revenue within 30 days of the change.

I am purchasing a property to be my principal residence. Why am I being asked to pay land tax?

People who are purchasing a property to be their principal residence are often surprised when required to pay a proportion of land tax.

If the property you are purchasing is subject to the payment of State Land Tax in the current ownership and has a land tax liability at 1 July last, you will be asked to contribute a proportion from settlement date to 30 June next.

However, as the property will be your principal residence, the State Revenue Office may review the classification and amend same to ‘Residential’ thus exempting you from the payment of land tax, but this will not take place until 1 July next when they next review classifications. You will not be reimbursed for the proportion of land tax paid the Vendor on settlement.

If you would like to check whether you will be required to pay a proportion of land tax on settlement before you make an offer, we can order a land tax search on your behalf. The cost is $12.75 and the search result is instant.

All material on this site is provided for information purposes only. The contents do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have. If there are any issues you would like us to advise you on arising from this material, please get in touch.