Land Tax

Nov 17, 2016

  • Land tax is assessed at 30 June of each year on land ownership, land use and site value (not capital value) for the following financial year;
  • Land tax is assessed where the site value of all taxable land owned as at 30 June exceeds the tax free threshold of $332,000;
  • Exemptions from land tax are available for:
  1. Land used as the Owners Principal Place of Residence;
  2. Land used for Primary Production;
  3. Land used for religious, hospital, library, charitable and other not for profitentities;
  • Essentially, land tax is assessed on commercial, industrial and residential property (not being a principal place of residence);
  • Land tax is assessed on the aggregation of multiple holdings by the same owner. On 25 February 2016, Revenue SA issued Revenue Ruling LT004 which outlines a new position concerning the aggregation of multiple holdings held by trusts. This ruling represents a change in policy by Revenue SA as they seek to impose land tax on entities that hold real property in its capacity as trustee for multiple discretionary trusts. This new view will not affect structures that have a different corporate trustee for each discretionary trust which holds property.

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