Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. The amount of land tax payable is dependent on the combined value of any taxable land you own or have an interest in. However, your principal place of residence or land used for primary production is exempt from land tax.
The value of taxable land is based on the unimproved value of the land, meaning it does not include any structures or improvements on the land such as a house. Furthermore, any land you own which is outside New South Wales, is not subject to land tax in New South Wales.
Land tax is calculated based on the combined value of all the taxable land you own. The land tax threshold for 2015 is $432,000.00 which means you will only pay land tax should the combined unimproved value of your land be above this threshold. If you are liable to pay land tax, the amount of tax which you will pay is $100.00 plus 1.6 percent (1.6%) of the land value between the threshold and the premium rate threshold ($2,641,000.00) and two percent thereafter.
Should you have any questions or queries concerning land tax, please do not hesitate to contact our office.