Land Tax

In New South Wales (NSW), land tax is imposed on individuals who possess property with a taxable value exceeding the specified threshold. Various types of property ownership can trigger liability for land tax, including: 

• Land with residential buildings such as flats, units, or houses 

• Land with commercial buildings 

• Industrial and commercial units 

• Unoccupied land 

• Holiday homes 

• Investment properties 

• Land leased from the government 

• Company title units 

• Parking spaces 

Furthermore, land tax liability may arise under certain conditions: 

• Individuals classified as foreign owners for land tax purposes, which includes properties chosen for property tax, may need to pay land tax. 

• Owners not included for property tax who have a combined land value exceeding the land tax threshold may also be liable. 

NSW Land Tax Exemptions

Certain landowners in New South Wales (NSW) are not required to pay land tax due to specific exemptions. These exemptions include a range of circumstances and types of properties, each with its own set of conditions. The key exemptions are as follows: 

• Permanent Place of Residence: A property used as an individual’s primary home is exempt from land tax. However, this exemption applies to only one property per individual. 

• Land Below the Threshold: Properties with a total taxable value below the specified land tax threshold do not incur land tax. 

Other Exemptions: There are additional specific exemptions available under certain conditions, which include: 

Boarding Houses: If a boarding house had at least 80% of its occupants staying long term during the previous year, and the tariffs charged did not exceed the maximum allowed for that year, the property is exempt from land tax. 

Primary Production Land: Land located in rural, rural residential, or non urban zones that is primarily used for primary production activities (such as farming, grazing, or crop cultivation) and where the resulting products are sold, may be exempt from land tax. 

Childcare Centres: Land used entirely for the operation of a childcare centre may be exempt if the organisation running it qualifies as an educational or childcare service according to the relevant legislation. 

Non Profit Organisations: Land held in trust by non profit organisations, including charities, educational institutions, or religious organisations, can be exempt from land tax. The organisation must provide documentation to NSW Revenue to prove its non profit status. 

Residential and Caravan Parks: Caravan parks or residential properties used as homes for retirees may be exempt from land tax. 

Retirement Villages, Aged Care Establishments, and Nursing Homes: Properties that are operating as retirement villages, aged care facilities, or nursing homes and are occupied are exempt from land tax. 

Low Cost Accommodation: Land used for providing low cost accommodation and located within 5 kilometres of the Sydney General Post Office is exempt from land tax. 

These exemptions ensure that certain types of properties and property owners, particularly those contributing to public welfare, housing, and essential services, are not burdened by land tax, thereby supporting their ongoing operation and service to the community. 

NSW Land Tax Threshold

The thresholds for land values in New South Wales (NSW) determine the amount of land tax payable by property owners. These thresholds are updated annually and apply in the following manner: 

General Threshold 

The tax calculation starts with a base amount of $100 plus 1.6% of the land value that exceeds the general threshold, up to the premium threshold. 

Premium Threshold 

For land values that exceed the premium threshold, the tax is calculated as $88,036 plus 2% of the land value above this threshold for the 2024 tax year. 

Publication and Application 

The threshold values are published in the government gazette on or before the first Friday of December each year. Before 2023, they were published in October. 

Land tax is assessed for the entire year following the taxing date of December 31, with no pro rata calculations allowed. 

The table below shows the general and premium thresholds for the 2024 tax year: 

Valuation of Land in NSW  for Land Tax 

In New South Wales (NSW), the process for valuing land for land tax purposes involves a few key steps: 

Annual Valuation by the Valuer General 

Every year, on July 1, the Valuer General assesses the value of all land in New South Wales (NSW). 

The valuation is based on the unimproved value 

 of the land, which means the value of the land itself without considering any buildings, structures, or other improvements on it. 

Determining the Taxable Value 

The taxable value of each parcel of land is calculated using an average of its assessed values over three years: the current year and the two preceding years, if available. 

This averaging process helps to mitigate the impact of year to year fluctuations in land values, providing a more stable and predictable basis for calculating land tax. 

Special Considerations for New Parcels of Land 

For land that has been newly created (e.g., through subdivision or amalgamation) and therefore does not have a three year history, only the years following its creation are considered in the average. 

This ensures that newly developed or altered parcels of land are still fairly assessed even if they lack a full three year valuation history. 

Example Calculation 

To understand how the average land value is determined, consider the following example: 

Yearly Valuations: 

• 2022: The land value as determined on July 1, 2021, is $1,050,000. 

• 2023: The land value as determined on July 1, 2022, is $1,100,000. 

• 2024: The land value as determined on July 1, 2023, is $1,150,000. 

Average Value Calculation: 

The average value for the 2024 tax year is calculated by summing the land values from the past three years and dividing by three. 

Calculation: 

Average Value= ($1,050,000 + $1,100,000 + $1,150,000) / 3
= $1,100,000 

In this example, the average land value for land tax purposes in the 2024 tax year is $1,100,000. 

Changes to NSW Land Tax in 2024

Principal Place of Residence Exemption 

The 2023-24 NSW State Budget introduced an important amendment to Schedule 1A of the Land Tax Management Act 1956, impacting the principal place of residence (PPR) exemption. Under the new rule, to qualify for the PPR exemption, the property must be occupied as the primary residence by the owner who must hold at least a 25% ownership interest in the property, whether alone or combined with others. 

However, there is a transitional provision for those currently claiming the PPR exemption but holding less than a 25% ownership interest. These individuals can continue to claim the exemption for the 2024 and 2025 tax years, provided they apply by January 31, 2024. From the 2026 tax year onwards, the 25% minimum ownership requirement will be strictly enforced. 

For properties purchased on or after February 1, 2024, if the new owner has less than a 25% interest in the property, they will not qualify for the transitional provision and will be subject to land tax starting from the 2025 tax year. This change aims to ensure that significant ownership is a criterion for land tax exemptions on principal residences. 

In Victoria, land tax is an annual charge imposed on the total taxable value of all land holdings, with the exception of exempt properties such as a primary residence. 

The land tax is calculated using site values, which are determined by the Valuer General Victoria, based on all taxable land owned as of midnight on December 31 of the preceding year. 

Land tax applies to individuals or groups that own different types of properties. These properties include: 

• Investment properties, such as residential rental units 

• Commercial properties like retail shops, office spaces, and factories 

• Holiday homes 

• Vacant land 

Each of these property types can contribute to the overall taxable value that determines the land tax obligation. 

Process of Land Tax Assessment 

The process of land tax assessment begins with the determination of site values, which involves evaluating the land’s worth based on its market value, location, and other relevant factors.  

Once the site values are established, they are used to calculate the tax for the upcoming year. The total value of all taxable land holdings is then considered to determine the applicable tax bracket and rate. 

The issuance of land tax assessments typically occurs between January and June each year. During this period, property owners receive notifications detailing their land tax liabilities. These assessments outline the amount of tax due and provide information on how it was calculated, ensuring transparency and clarity for the property owners. 

Thus, land tax serves as a means for the government to generate revenue from property ownership, excluding primary residences. It affects various types of properties and is based on carefully assessed land values to ensure a fair and equitable taxation process. 

VIC Land Tax Rates

For the 2024 Land Tax year in Victoria, the rates are structured based on the total taxable value of landholdings. The rates increase progressively with the value of the land, with different fixed amounts and percentages applied to various brackets.  

 VIC Land Tax Exemptions 

There are several common exemptions from land tax in Victoria. These exemptions include: 

• Principal Place of Residence (PPR): This exemption applies to the main home where one lives. It also extends to land where a PPR is being built or renovated, and to land owned by an immediate family member of a person with a qualifying disability, provided that person uses the land as their PPR. 

• Primary Production Land (PPL): Land used for primary production activities, such as farming, may qualify for this exemption. 

• Charities: Properties owned and used by charitable organisations are exempt from land tax. 

• Rooming Houses: Buildings where rooms are rented out individually to tenants also qualify for an exemption. 

Holiday homes, even if they do not generate any income, do not qualify for a land tax exemption. 

Vacant Residential Land Tax

Vacant Residential Land Tax (VLRT) applies to residential properties that were vacant for more than six months in the previous calendar year. For instance, VRLT in 2024 is assessed based on a property’s vacancy status in 2023. Property owners must report any residential land that has been vacant for over six months by January 15 of the following year. 

Expansion of VRLT from January 1, 2025 

Starting January 1, 2025, VRLT will cover all residential land across Victoria if it remains vacant for more than six months in the preceding year. Before this date, VRLT was only applicable to vacant residential land in inner and middle Melbourne. Therefore, residential land vacant for more than six months in 2024 across Victoria may incur VRLT in 2025. 

Calculation of VRLT 

From January 1, 2025, VRLT is calculated progressively based on the capital improved value (CIV) of the property, which includes the land, buildings, and any capital improvements. The CIV is determined through the general valuation process and is shown on the property’s council rates notice. 

The rates for VRLT are as follows: 

• 1% of the CIV for the first year the property is liable for VRLT, provided it was not liable in the preceding year. 

• 2% of the CIV if the property is liable for a second consecutive year. 

• 3% of the CIV if the property is liable for a third consecutive year. 

Vacant Residential Land Tax Exemptions 

Land that is exempt from general land tax, such as a primary residence, is also exempt from the VRLT. However, an exemption from VRLT does not necessarily mean that the land is exempt from other forms of land tax.  

Apart from this, other exemptions include: 

Change of Ownership 

Homes unoccupied for more than six months in the preceding calendar year may be exempt from VRLT if the ownership of the property changed during that year. 

Newly Converted Residential Properties 

Properties that became residential during the year or in the previous two calendar years, and have unchanged ownership, may also be exempt. From January 1, 2025, this exemption period extends to three years if the owner has made genuine and reasonable efforts to sell the property. If the property remains unoccupied and unsold after this period, it will incur VRLT at a rate of 1% until sold. 

Holiday Homes 

Properties used as holiday homes, occupied by the owner for at least four weeks of the year, and where the owner has a principal place of residence (PPR) in Australia, can be exempt.  

Starting January 1, 2025, this four week occupancy requirement can be met by a relative of the owner or a relative of a vested beneficiary. However, homes owned by companies, associations, or organisations generally do not qualify for this exemption. 

Workplace Proximity 

Properties occupied by the owner for at least 140 days of the year for work or business purposes, with the owner also having a PPR in Australia, may be exempt. Similar to holiday homes, properties owned by companies, associations, or organisations typically do not qualify for this exemption. 

Construction and Renovation 

Homes undergoing major renovations or reconstruction are not classified as vacant for up to two years from the date a building permit for the construction or renovation was issued. The Commissioner of State Revenue has the authority to extend this period under specific circumstances. 

Joint Owners 

When land is owned jointly with others, each unique combination of owners constitutes a different joint ownership. It is essential to recognise the following points regarding joint ownership: 

• Each unique combination of owners is treated as a separate joint ownership. 

• Land tax is assessed for each unique joint ownership when the total taxable value of the jointly owned land meets or exceeds the $50,000 threshold, effective from 2024. 

• Each joint owner is also assessed individually for land tax. 

• If land is owned with different combinations of people, multiple joint ownership assessments may be issued if land tax applies. 

Jointly owned land may also be subject to the absentee owner surcharge or vacant residential land tax. 

Jointly Owned Land Used as a Home 

Jointly owned land that is used as a home by one or more of the owners, referred to as their principal place of residence (PPR), is exempt from land tax. 

No Assessment Scenarios 

No land tax assessments are issued if: 

• The jointly owned land is the owner’s PPR and it is the only land they own. 

• The owner has other land that is also exempt from land tax. 

Individual Assessments 

If an owner uses jointly owned land as their PPR and owns other taxable land, the individual assessment will reflect the PPR exemption.  

In contrast, if the land is not used as the PPR by the owner, the owner’s share of this land will be included in their individual land tax assessment without any joint ownership deduction. This occurs because the property itself is not assessed for land tax due to another joint owner using it as their PPR. 

Trust Owned Land 

The PPR exemption does not apply to land owned by a discretionary or unit trust, even if it is used as a PPR by a beneficiary. 

Absentee Owner Surcharge 

Starting from the 2024 land tax year, a 4% absentee owner surcharge is applied to Victorian land owned by absentee owners. This surcharge was previously 2% from 2020 to 2023. The surcharge is an additional amount on top of the general land tax and trust surcharge rates. 

What is an Absentee Owner? 

An absentee owner is defined as an absentee individual, absentee corporation, or a trustee of an absentee trust. Each of these categories has specific criteria that determine whether the surcharge applies. 

Applicability of the Surcharge 

The absentee owner surcharge is applicable if the owner is considered an absentee as of December 31, impacting the following land tax year. The surcharge is calculated based on the total taxable value of the land and is included in the land tax assessment.  

The calculation method varies depending on the ownership structure, such as joint ownership, absentee corporations within a land tax group, or trustees of absentee trusts (discretionary, unit, or fixed trusts). 

Exemptions 

The surcharge does not apply to land that is exempt from land tax or if the total taxable value of the land is below the thresholds of $50,000 or $25,000 (for land held in trust and subject to the trust surcharge rate). 

Land Tax and Trusts 

Land held in fixed, discretionary, or unit trusts is typically subject to trust surcharge rates, which are higher than general land tax rates. This surcharge applies to trusts once the total taxable value of the land is $25,000 or more.  

For land valued at $3,000,000 or more, the surcharge rates align with general land tax rates. Exceptions to the trust surcharge include land held by administration trusts, excluded trusts, or implied and constructive trusts. 

Land Tax Trust Surcharge Rates

Beneficiary Disclosure 

If the beneficiaries of the trust are disclosed, the trust may be assessed at general rates. Additionally, the beneficiaries may have their interest in the trust land included in their individual land tax assessments. 

Absentee Owner Surcharge for Trusts 

For trustees of absentee trusts, an absentee owner surcharge applies to the trust’s taxable land. This surcharge, which is 4% from the 2024 land tax year, is in addition to the general or trust surcharge land tax rates.  

An absentee trust includes discretionary, unit, or fixed trusts with at least one absentee beneficiary. Trustees of absentee trusts must declare their absentee owner status. 

Different Trust Types and Land Tax Rules 

Land tax rules vary for different types of trusts: 

• Discretionary Trusts: Trusts where trustees have discretion over how to distribute income or capital among beneficiaries. 

• Unit Trusts: Trusts where beneficiaries hold units representing a fixed proportion of the trust’s income or capital. 

• Fixed Trusts: Trusts with fixed entitlements for beneficiaries. 

• Sub Trusts: Trusts where a beneficiary (trustee of the first trust) is a trustee of another trust (second trust). 

• Deceased Estates: Includes administration trusts handling the estates of deceased persons. 

Excluded Trusts 

• Certain trusts are excluded from the trust surcharge: 

• Charitable Trusts 

• Concessional Trusts 

• Public Unit Trust Schemes 

• Wholesale Unit Trust Schemes 

• Club Trusts 

• Superannuation Trusts 

• Implied or Constructive Trusts 

In Western Australia, landowners must pay a land tax if their land is valued over $300,000. This tax is assessed on land that is not being used as the owner’s principal place of residence. Typically, the Land Tax Notice of Assessment is issued between October and January each year. 

The assessment for land tax is based on the ownership status of the land as of midnight on June 30 of the previous financial year. For individuals owning multiple lots, all land holdings are combined, and the total value is used to calculate the land tax. However, if land is owned in different capacities, each ownership will be assessed separately. 

If a landowner sells their property between July 1 and June 30, they remain liable for the land tax based on their ownership status as of June 30 of the previous year. 

Calculating WA Land Tax

In Western Australia, land tax is assessed based on the total taxable value of all non exempt land held under the same ownership as of midnight on June 30. The taxable value is calculated as the lower of the following two amounts: 

• The current unimproved value of the land. 

• 150% of the previous year’s unimproved value. 

To determine land tax liability, landowners can use an online calculator provided by RevenueWA. This calculator takes the aggregated taxable value of all relevant land and applies the appropriate tax rate to calculate the land tax due. 

Aggregation of Land Value 

When calculating land tax, RevenueWA generally aggregates the values of all land parcels owned by the same entity. 

For example, land owned solely by an individual is not combined with land owned jointly with another person or land owned through a company or trust. This ensures that each ownership category is assessed separately. 

What is Unimproved Value (UV)? 

Unimproved Value (UV) refers to the value of the land itself without any buildings or structures on it. However, for land located within metropolitan areas and regional town sites, the UV includes certain improvements like drainage, levelling, and filling that are necessary for the land to be usable. 

Use of Unimproved Value 

• RevenueWA: UV is used by RevenueWA to determine land tax for properties that are not the primary residence of the owner. This helps in assessing the tax liability accurately based on the value of the land alone. 

• Local Governments: Local governments use UV to calculate rates on rural or rural residential properties. These rates contribute to the funding of local services and infrastructure. 

WA Land Tax Rates

The land tax rate in Western Australia varies based on the aggregated taxable value of the land. The tax is calculated progressively, meaning higher values of land incur higher rates of tax. The following table illustrates the different rates for different brackets: 

In addition to the land tax, properties located in the metropolitan region with a taxable value over $300,000 are subject to an additional Metropolitan Region Improvement Tax. This tax is imposed at a rate of 0.14 cents for every dollar of the aggregated taxable value exceeding $300,000. 

Jointly Owned Land 

When land is owned jointly with another person, it is assessed separately from land owned solely or with other individuals. For example, consider an individual who owns: 

• One lot individually. 

• A second lot jointly with John Citizen. 

• A third lot jointly with John Citizen and Mary Citizen. 

Each of these lots will be assessed independently for land tax purposes. This means that the value and tax liability of each lot will be calculated without combining the values of the other lots. 

Land Held in Trust 

Trustees are responsible for paying land tax on land they hold in trust. This responsibility is treated as if the trustee owns the land personally. However, if the trustee holds land in trust for different beneficiaries, each trust’s land is assessed separately. This ensures that the tax liability is specific to each trust arrangement. 

Separate Assessments for Trustees 

When a trustee holds land in trust for another person and also owns other land individually, the land held in trust and the land owned personally are assessed separately. This separation ensures that each piece of land is taxed based on its specific ownership and use. However, there are certain circumstances where the land might be assessed jointly, depending on the specifics of the trust arrangement. 

Principal Place of Residence for Trustees 

A trustee’s principal place of residence is not exempt from land tax unless the property is specifically held on behalf of a disabled beneficiary who uses it as their primary residence. This exemption is designed to provide relief to disabled beneficiaries who live in a property held in trust for their benefit. 

Ensuring Correct Assessment for Trust Land 

To ensure the land tax assessment is accurate, trustees must inform the tax authorities in writing if the assessment includes land held by a trust. The notification should include: 

• The endorsed Offer and Acceptance document from the purchase of the land. 

• The Deed of Trust, including the schedule and execution pages. 

Providing these documents helps the tax authorities verify the trust arrangement and ensure the correct tax treatment. 

Exemptions for Land Held in Trust 

Deceased Estate 

An exemption from land tax may be available for land held in trust by an executor or administrator of a deceased estate. This exemption applies if the land is occupied as a primary residence by a beneficiary under the will. This provision ensures that beneficiaries living in inherited properties are not unduly burdened by land tax. 

Disabled Beneficiary 

Land held in trust for a disabled beneficiary and occupied as their primary residence may also be eligible for a land tax exemption. This exemption aims to provide financial relief to disabled individuals who reside in properties held in trust for their benefit. 

Leasing Land 

In Western Australia, when land is leased from the state government, a government agency, local government, or a public statutory authority, the lessee (the person leasing the land) is treated as the owner for land tax purposes. This means that the lessee is responsible for paying any land tax due on the leased land. 

Rebate for Involuntary Lease Termination 

If a lease is terminated involuntarily (not by the lessee’s choice) before its scheduled end date, the lessee may qualify for a rebate. This rebate would cover the portion of the land tax assessment year that remains after the lease ends. For example, if a lease ends halfway through the year, the lessee might receive a rebate for the remaining half of the year. 

Subdividing a Lot 

When a lot (a defined portion of land) is subdivided, it becomes liable for land tax starting from June 30 following the approval of the subdivision by the Western Australian Planning Commission (WAPC). This is true even if the new lot does not yet have a certificate of title. 

What is Retrospective Assessment? 

A lot is officially recognised as a specific piece of land approved by the WAPC. The tax authority (Commissioner) has guidelines on when to apply retrospective land tax to newly subdivided land that was previously exempt. Retrospective assessment means that land tax can be calculated and imposed for past years, up to a certain limit. 

Exemptions and Conditions 

Under the Land Tax Assessment Act 2002, some types of land are exempt from land tax in Western Australia. These exemptions include: 

• Private residential properties. 

• Land used for primary production (such as farming). 

• Land used as a dwelling or residential park. 

When such land is subdivided, it might lose its exempt status if specific conditions are met. If the exemption is lost, the taxable portion of the land is assessed for up to five or ten previous years, depending on the conditions met. 

Liability and Assessment Rates 

The owner of the land at the time of subdivision is responsible for paying the land tax, even if the previous owner benefited from the exemption and later sold the land. Each year is assessed using the land tax rates that applied during that specific year.  

The calculation is as if the subdivided land were the only land owned by the person at that time. If any land tax was already paid on the taxable portion for those years, the amount due will be reduced accordingly. 

WA Land Tax Exemptions

Certain property owners may be eligible for exemptions, concessions, or rebates on their land tax based on specific circumstances. Each type of exemption, concession, or rebate has its own application form and set of eligibility criteria. 

Types of Exemptions and Eligibility 

• Living in Own Home 

Property owners who use their property as their primary residence on June 30 may qualify for a land tax exemption. This means that if the property is the owner’s main place of residence, they are eligible to apply for this exemption, which reduces or eliminates the land tax liability for that property. 

• Moving Between Homes 

Owners moving from one home to another may receive a land tax exemption for the home they are leaving, provided the new home was acquired in the previous financial year. This exemption helps alleviate the tax burden during the transition period, ensuring that owners are not penalised while they are in the process of moving to a new residence. 

• Building a New Home 

Owners who are building a new home and do not live at another property they own during the construction period may qualify for an exemption. This exemption is designed to support those who are temporarily without a primary residence because their new home is under construction, ensuring they do not have to pay land tax on the property being built. 

• Moving to a New or Renovated Home 

This exemption applies to owners who are constructing a new home on newly acquired land with the intention of selling their old home. It supports those improving their living situation by providing relief from land tax during the period they are preparing to move into the newly built or renovated home and sell their previous residence. 

• Deceased Estate 

When a property owner passes away, their private residence may be eligible for a land tax exemption. This exemption provides relief from land tax during the period of estate settlement, recognising that the property may not be generating income and is undergoing a transition of ownership. 

• Owner in Care 

Property owners who move into full time care, such as a nursing home or hospital, may receive an exemption for their primary residence. This exemption acknowledges the change in the owner’s living situation and provides tax relief, ensuring that their primary residence is not subject to land tax while they are in care. 

Other Exemptions 

Various other exemptions are available for different types of property use and ownership. Each exemption has its own application form. These include: 

• Government owned land 

• Public or religious hospitals 

• Mining tenements 

• Land for public purposes 

• Veteran’s family 

• Conservation covenant land 

• Mortgagee sale properties 

In South Australia, land tax is charged every financial year. The land tax is calculated based on who owns the land as of midnight on June 30th, just before the financial year begins. Therefore, the person who owns the land at midnight on June 30, 2024, will need to pay the land tax for the financial year from July 1, 2024, to June 30, 2025. 

SA Land Tax Liability 

All the individuals and entities described below are liable to pay land tax in South Australia. 

Who is Considered an Owner? 

In general, the owner is the individual whose name appears on the Certificate of Title at Land Services SA. However, there are specific exceptions to this rule. 

Freehold Land Ownership 

Typically, the registered legal owner is considered the owner of freehold land. Additionally, anyone who holds legal or equitable ownership of the land at midnight on June 30th, before the financial year the tax is assessed, is also deemed an owner. This includes individuals who have the right to purchase or acquire ownership of the land. 

Trusts and Designated Beneficiaries 

When a trustee of a trust owning land notifies: 

• A designated beneficiary for a discretionary trust, 

• All beneficiaries for a fixed trust, or 

• All unit holders for unit trusts, 

These individuals are also considered owners, in addition to the registered legal owner. Thus, both the beneficiaries or unit holders and the registered owner share ownership of the land held in trust. In the absence of contrary evidence, the registered owner is presumed to be the taxpayer. 

Ownership of Crown Land 

If Crown land is held under a perpetual lease or is subject to an agreement for sale or right of purchase, the holder of the lease or agreement is deemed the owner for land tax purposes. A perpetual lease is a registered Crown lease, issued by the Department for Environment and Water on behalf of the Crown, that lasts indefinitely. 

Home Unit Companies 

In the case of home unit companies, the shareholder is considered the owner for land tax purposes. This means the value of the unit that the shareholder can occupy is included in the shareholder’s ownership, rather than being assessed against the home unit company as the registered owner. 

Shack Sites 

Lessees of shack sites on privately owned land are regarded as owners if: 

• The shack site is located on or near the River Murray, its tributaries, or connected lakes or lagoons. 

• A registered lease was in place as of midnight on June 30, 1989. 

• The lease term is at least 40 years. 

Similarly, individuals occupying land in a designated shack site area are also considered owners for land tax purposes. 

Moiety Ownerships 

In situations where land is owned by multiple people under a tenancy in common arrangement: 

• The land is divided into separate portions. 

• Each owner has the right to occupy a specific part of the land, as outlined in a lease registered over the land title. 

In these cases, each owner is considered the owner of the specific portion they are entitled to occupy. 

Land Held in a Representative Capacity (Trusts) 

When land is held by someone acting in a representative capacity, such as a trustee, it is taxed separately from land held by that person individually. 

Liability for Joint Ownership 

In joint ownership scenarios, any one of the joint owners can be held responsible for paying the entire land tax amount. This means all joint owners share responsibility for the tax. RevenueSA typically sends the tax bill to the first named joint owner on the land’s Certificate of Title. This person can then seek reimbursement for their share of the tax from the other joint owners. 

Multiple Owners in Different Capacities 

When multiple people meet the definition of owner but in different roles, the Commissioner of State Taxation may select the person with the most significant interest in the land as the owner for tax purposes for that year. This decision excludes others who might also be considered owners.  

This often happens when there is both a legal owner (listed on the Certificate of Title) and an equitable owner (someone with a financial interest in the property) as of midnight on June 30, just before the new financial year. 

SA Land Tax Calculation

After determining an owner’s combined (aggregated) land value, land tax is calculated using a progressive rate structure. There are two rate scales: general and for trusts.  

The general rates of land tax in South Australia, effective as of midnight on June 30, 2023, for the 2023-24 financial year are as follows: 

Trust Rates

For land held in a trust, the following progressive rates apply: 

Aggregation of Site Value 

The site values of all taxable land owned by an individual are combined (aggregated) to calculate the total taxable value. Land tax is then assessed on this combined value.  

The tax amount is then allocated proportionally to each parcel of land owned. This aggregation also applies to land held by the same trust. Land that is exempt from tax is not included in the aggregated total. 

Assessment of Land Tax 

For Single Ownership: When an owner has multiple parcels of land, the total taxable value of all these lands is combined for the land tax calculation. 

For Joint Ownership: 

• If the total taxable site value of land held jointly exceeds the taxable threshold, a Land Tax Assessment is issued for the joint ownership. 

• The assessment includes a deduction reflecting the individual’s share of the land tax owed in the joint ownership. 

• If the joint ownership does not reach the taxable threshold, no deduction applies to the individual’s assessment. 

• An individual’s Land Tax Assessment is issued only if the combined taxable site value of land owned individually and their share of jointly owned land exceeds the taxable threshold, and the deduction does not reduce the payable land tax to zero. 

SA Land Tax Apportionment and Exclusions

Apportionment of Land Tax to Individual Parcels 

When multiple taxable parcels of land are owned, the land tax calculated on the total (aggregated) value is divided among each parcel. This division is based on the site value of each individual parcel.  

Land held in trusts, such as discretionary, fixed, or unit trusts, is taxed at higher rates (trust land tax rates) and has a lower threshold for taxation, currently set at $25,000. 

Certain trusts may be exempt from these higher trust rates and taxed at general rates instead. 

Trusts Excluded from the Surcharge 

The additional trust surcharge does not apply to land held by: 

• Excluded Trusts: These include concessional trusts, superannuation (super fund) trusts, or administration trusts for deceased estates. 

• Implied, Constructive, or Resulting Trusts 

• Public Unit Trust Schemes: These are either listed trusts or widely held trusts. 

• Corporations as Trustees: When a corporation acts as a trustee of a fixed trust or unit trust scheme, and is grouped with related corporations, land tax is assessed according to section 13J of the Land Tax Act 1936. 

Grouping of Related Corporations 

Corporations are considered related for land tax purposes under the following conditions: 

• Corporate Control: One corporation exercises control over another. 

• Common Control: The same individual(s) exercise control over multiple corporations. 

• Joint Control: Control is jointly exercised by a corporation and its shareholders over another corporation, with over 50% of the issued share capital held between them. 

• Ownership of Beneficial Interests: A corporation owns more than 50% of the beneficial interests or units in land subject to a fixed or unit trust. 

When corporations are related, the land they own, whether solely or jointly, is grouped together. This aggregated land is then assessed for land tax as if it were owned by a single corporation. 

SA Land Tax Exemptions, Waivers, or Relief

• Promoting New Housing Opportunities: Tax concessions are provided to encourage the development of new housing, making it more accessible and affordable. 

• Residential Home: Exemptions can be granted for land used as the owner’s primary residence, ensuring homeowners are not burdened with additional taxes on their main dwelling. 

• Moving into Residential Care: If a homeowner moves into residential care, their primary residence may qualify for a land tax exemption, easing the financial transition. 

• Upon Homeowner’s Death: When a homeowner passes away, their property may be exempt from land tax, offering financial relief to the estate. 

• Renovating or Rebuilding: Landowners who are renovating or rebuilding their homes can receive exemptions, supporting improvements and maintaining habitable conditions. 

• Destruction or Uninhabitability: If a residential home is destroyed or becomes uninhabitable, the land may be exempt from land tax, reducing the financial impact on the owner. 

• Primary Production: Land used for primary production, such as farming or agriculture, is often exempt from land tax to support essential food production. 

• Supported Residential and Aged Care Facilities: Land used for supported residential facilities or aged care facilities can receive exemptions, promoting care for the elderly and those with special needs. 

• Retirement Villages: Properties used as retirement villages are eligible for exemptions, encouraging the development of communities for retirees. 

• Retired Persons’ Relocatable Home Parks: Exemptions are available for parks providing relocatable homes for retired individuals, supporting affordable housing options for seniors. 

• Associations or Not for Profit Organisations: Land owned by associations or not for profit organisations may qualify for exemptions, recognising their contributions to the community. 

• Off the Plan Apartment Purchases: Purchasing an off the plan apartment can grant land tax exemptions, encouraging investment in new housing developments. 

• Heritage Agreements: Land subject to a heritage agreement under the Native Vegetation Act 1991 can be exempt from land tax, preserving natural and cultural heritage. 

These exemptions, waivers, and reliefs are designed to support various housing and community needs in South Australia, offering financial relief in specific situations. 

Build to Rent Land Tax Concession

The South Australian government introduced a land tax concession to encourage the development of build to rent properties. This initiative is specifically targeted at properties where construction commences on or after July 1, 2023. The aim is to stimulate the construction of rental housing projects to address the growing demand for rental accommodations. 

Eligible build to rent projects will receive a substantial benefit through this concession. Specifically, there will be a 50% reduction in the land value of the relevant parcels of land when calculating land tax. This reduction makes it more financially attractive for developers to invest in such projects, potentially increasing the supply of rental properties in the market. 

The land tax reduction is available from the 2023-24 financial year and will remain in effect until the 2039-40 financial year. This long term incentive is designed to provide sustained support for the build to rent sector, encouraging more developers to participate in building rental housing, thereby addressing long term housing needs in South Australia.