This threshold varies from State to State. If the value of the combined taxable land you own in each State is less than the threshold, you are exempt from land tax in that State.
Land Tax is tax levied on the owners of the land on the relevant date. Joint owners are assessed as if they are a single owner.
* The ACT levy it on ownership at midnight on the first day of the quarter.
* Tasmania levy it on ownership on 1st July.
* NSW and Victoria levy it on ownership at midnight on 31 December of the previous year.
* Qld, SA and WA levy it on ownership at midnight on 30 June.
In some States qualifying fixed trusts are entitled to the land tax free threshold. Discretionary trusts, on the other hand, do not receive the threshold and are taxed from the first dollar in land value. The trust deed provisions which are important are:
> Clauses giving the trustee the power to accumulate
> The absence of clauses expressly providing that the unit holders are presently entitled to trust capital and can require the trustee to wind up the trust and distribute the property to the unit holders.
> The identity of the unit holders to determine if they are held by discretionary trusts, in which case the land tax free threshold is lost at the secondary land-owner level.