Land Tax is a tricky part of land ownership
This State Government tax is payable if the total land value of the property that you own in NSW on the last day of the year (excepting your principal place of residence) exceeds a land tax threshold. Whether or not you will have a land tax liability depends on the land value and the land tax thresholds. There is a general threshold and a premium threshold. The general threshold for NSW in 2023 is $969,000.
Land value is the value of the land, ignoring the value of the building(s) and structures on the land. In the case of a unit, land value is the value of the land upon which the building has been erected. The value is then apportioned among the units in the strata scheme using the unit entitlement. You can usually find the land value for each property on the council rates notice.
If you fail to register for land tax, it is highly likely that, at some point, this will be discovered by Revenue NSW. They will then remit you for all the unpaid land tax (which could be over several years) and usually charge you interest together with penalties.
In my opinion it is not easy for a person to know when they are required to pay land tax. The obligation is on the landowner to discover this and ignorance is not a defence. You must register for land tax if the value of all your taxable land is above the land tax threshold, even if you haven’t received a notice of assessment. To register, you will need a client ID and correspondence ID.
Marriott Lane is not aware of the land that you own, so we cannot be aware of any obligation for you to pay any land tax. Occasionally, Revenue NSW will contact us and ask for confirmation about the ownership of a property we are managing. We process the payment of land tax obligations for many of our owners from the rent we receive on their behalf.
As the next deadline for Land Tax is looming, it could be worth checking your situation.