If you’re a homeowner or a real estate agent in New South Wales, you have most likely come across the terms land tax and land calculator. Land tax refers to the tax levied on land owners in New South Wales on the midnight of December 31 every year. Whether income is earned from the land or not, land tax is applicable.
Use a land tax calculator
A land tax calculator can be used so you can have an idea on how much land tax should be paid based on all the land that you own and if it entails land tax.
Here are some of the things that you need to know about land tax:
- When it comes to land tax, an owner refers to any of the following: sole owner, joint owners, a company or owners of company title units, trustees of superannuation funds, trust beneficiary, society or organisation where the land is not exempt, unit holders whose interest in a unit trust is entitled to the land tax threshold, and lessees of crown or local council land.
- If you are considered an owner of land, you may have to pay land tax if the property falls under any of these classifications: vacant land, holiday or vacation home, land where a residential unit has been constructed, company title units, investment property, residential, commercial or industrial units, commercial properties or land which is leased from the state or local government.
- How is land tax computed? It is calculated based on the combined value of all the land that entails land tax above the threshold. The rate of tax is $100. Add to this is 1.6 per cent of the land value between the threshold as well as that of the premium rate, and two per cent thereafter. Bear in mind that you will not pay land tax if the total value of your land does not go over the land tax threshold. Keep these in mind so you can better prepare should you need to pay land tax.
- A land tax calculator can be used so you can have an idea on how much land tax should be paid based on all the land that you own and if it entails land tax. There are so many websites that offer land tax calculators, but it is still best to seek help from a professional to have a better understanding of the particulars of land tax in Australia. Getting feedback from friends who have experience in paying land tax will also help.
Do you know other things that should be considered when it comes to land tax? Share your ideas in the comments section.