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Land Tax & Property

 Land Tax CalculatorsState Based Land Tax Rates & Calculators

As with Stamp Duty, Land Tax varies from state to state for its rate and threshold before applicable. Tax on land Thresholds also vary depending if the property is held by an individual or an interposed entity such as a company or trust.

The old saying of investing is to not have all your eyes in one basket apply well to the issue of Land Tax, by holding a small number of properties in various state it is possible to avoid Land Tax all together.

What is the Land Tax Threshold?
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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.
Thresholds – Calendar year 2015 and Financial year 2015/2016
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State Individuals Annual Threshold Companies/Trustees/ Absentees/ Annual Threshold Premium Threshold Date of Ownership
ACT Nil Nil 1ST Day of Quarter
NSW $432,000 $432,000 $2,641,000 31/12/2014
NT No Land Tax No Land Tax
QLD $600,000 $350,000 30/06/2015
SA $323,000 $323,000 30/06/2015
TAS $25,000 $25,000 01/07/2015
VIC $250,000 $250,000* 31/12/2014
WA $300,000 $300,000 30/06/2015
*Surcharge may apply above $25,000. 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. Refer to the links below for more details on each state.
Thresholds – Calendar year 2014 and Financial year 2014/2015
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State Individuals Annual Threshold Companies/Trustees/ Absentees/ Annual Threshold Premium Threshold Date of Ownership
ACT Nil Nil 1ST Day of Quarter
NSW $412,000 $412,000 $2,519,000 31/12/2013
NT No Land Tax No Land Tax
QLD $600,000 $310,000 30/06/2014
SA $316,000 $316,000 30/06/2014
TAS $25,000 $25,000 01/07/2014
VIC $250,000 $250,000* 31/12/2013
WA $300,000 $300,000 30/06/2014
*Surcharge may apply above $25,000. 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. Refer to the links below for more details on each state.

 

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Ensuring your property profolio give due consideration to stamp duty and tax on land.

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