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Land Tax



Latest News

State Budget 2005-2006:
See Circular 254 for details of changes announced in the Budget handed down on 26th May 2005.



Frequently Asked Questions

What is Land Tax?

Land Tax is an annual tax based on land ownership and usage of land as at 30 June. Revenue from Land Tax is paid into the general revenue account of the South Australian Government, and assists in the provision of public services such as education, health and public safety.

Who is liable for the payment of Land Tax?

The owner of the property as at 30 June is liable to pay the land tax assessed for the new financial year. The owner is generally taken to be the person whose name appears on the Certificate of Title at the Land Titles Office.

As Land Tax is calculated as at 30 June, the Notice for Payment will contain details of properties owned as at that time. Where a property was sold after 30 June, the vendor (seller) is still liable for the land tax. However, it should be noted, if the Land Tax is not paid at settlement it remains a first charge on the land and may be passed on to the purchaser.

It is an industry based convention for the legal real estate contract to provide for land tax to be apportioned (based on a calculation of the single holding tax see single and multiple holding tax ) between the buyer and seller of land.

How is Land Tax calculated?

The Land Tax Notice for Payment is calculated on the basis of the total site value of all land owned (either solely or jointly) as at midnight 30 June, excluding exempt land. (see what land is exempt from land tax)

It should be noted that where an owner owns more than one taxable property, land tax is calculated on the total site value of all properties owned. (For examples of calculation of land tax, see single and multiple holding tax).

What are the Land Tax Rates?

Land tax is calculated according to the following:

Rates effective from 1/7/2005
Total Taxable Site Value Rate
Up to $110, 000 Nil
$110,001 - $350,000 30 cents for each $100 or part $100 above $110,000
$350,001 - $550,000 $720 plus 70 cents for each $100 or part $100 above $350,000
$550,001 - $750,000 $2,120 plus $1.65 for each $100 or part $100 above $550,000
$750,001 - $1,000,000 $5,420 plus $2.40 for each $100 or part $100 above $750,000
Over $1,000,000 $11,420 plus $3.70 for each $100 or part $100 above $1,000,000

Single and Multiple Holding Tax

The terms "single holding" and "multiple holding" refer to the apportionment of land tax amongst taxable properties within an ownership.

Single holding tax refers to the calculation of land tax where there is only one taxable property in the ownership (see example below):

Example - only one non-exempt land holding
Site value is $120,000
Tax on first $110,000 = Nil
$120,000 - $110,000 = $10,000 @ 30 cents per $100 = $30

Total tax = $30.00

Multiple holding tax refers to where more than one non-exempt property is owned. RevenueSA is required to apportion the total land tax payable to each taxable property within the ownership. The total land tax payable is therefore apportioned amongst each of the taxable properties in the ownership based on their value as a proportion of the total site value of the ownership. (see example below):

Example - more than one non-exempt land holding

Site values are:

12 Smith St $250,000
51 Johns St $200,000
2/41 Queen St $150,000

Total Site Value

$600,000

Tax on site value up to $550,000 = $2,120
Tax on $600,000 - $550,000 = $825.00 ($50,000 @ $1.65 per $100)

Total Tax = $2,945.00

Apportionment between properties:

Tax for 12 Smith St

$250,000 (site value) x $2,945 (total tax) = $1,227.08
$600,000 (total site value)

Tax for 51 Johns St

$200,000 (site value) x $2,945 (total tax) = $981.67
$600,000 (total site value)

Tax for 2/41 Queens St

$150,000 (site value) x $2,945 (total tax) = $736.25
$600,000 (total site value)

Total Tax = $2,945.00

Where land is sold and adjustments are made to account for land tax (see who is liable for the payment of land tax) the calculation of land tax to be apportioned between the seller and buyer must be based on the calculation of a single holding tax for the property concerned. By using the single holding tax, the adjustment is calculated as if the property being sold is the only taxable property in the ownership.

Why this may be your first Land Tax account

  • The total site value of all taxable land owned by you as at 30 June may have exceeded the general threshold level of $110,000 for the first time;
  • You may have bought additional land, or your land has been revalued in the last financial year;
  • Land previously exempt may now no longer satisfy the exemption criteria.

What land is exempt from Land Tax?

Principal Place of Residence Exemptions:
Land that is owned by a natural person and is used as their principal place of residence as at 30 June is exempt. A land tax exemption is available to natural person's for the land on which their principal family home is situated (caravans or tents are not regarded as a principal place of residence).

Properties that are the owner's principal place of residence and a business is run from the premises may also be eligible for a partial exemption provided that:

  • one of the registered owners lived at the property on 30 June;
  • buildings on the land have a predominantly residential character; and
  • no more than 75% of the floor area of all the buildings are used for business purposes.

A 'natural person', means an individual and does not include a company (or other body), which is classed as an artificial person. The principal place of residence exemption is not available for companies or other organisations, even if the land is occupied by any of its shareholders or members.

Application form for Residential Exemption

Land Tax relief may be provided under the following three scenarios:

  1. Where a person as at 30 June owns a property subject to land tax and occupies this property during the new financial year as their principal place of residence e.g., construction of a residence on vacant land. Application Form
  2. Where a person is in the process of selling a home and as a result owns 2 properties as at 30 June, one of which is the current principal place of residence (and eligible for exemption) and the other is intended but not yet occupied principal place of residence (and liable for land tax). Application Form
  3. Where a person purchases a property, which was taxable in the ownership of the vendor (seller) and is to be occupied as a principal place of residence, the purchaser may be refunded any proportionate land tax paid as part of settlement. Application Form

It should be noted that:

  • Unless the Commissioner otherwise allows, no rental income can be received from properties during the period that homes are owned concurrently and the former residence must be sold before the end of the financial year.
  • Land Tax assessed will still be payable if the property was not your principal place of residence on or before the due date of your Notice for Payment.

If you would like to apply for exemption under any of the above scenarios, please download and complete an applicable Application Form and return it to RevenueSA. Please note all Applications must be submitted by 30 September of the year following the year of assessment.

Other Exemptions
Exemptions are also available where land is used for the following purposes;

  • Land which is used wholly or mainly for primary production purposes and primary production is the owner's main business;
  • Land which is used wholly or mainly for religious or educational purposes;
  • Land which is used for non-profit associations for the purpose of recreation for the local community, the preservation of buildings, the holding of agricultural shows or other specified purposes (charitable or sporting purposes).

Applications for these other exemptions must be submitted in writing and forwarded to RevenueSA.

Does GST apply to land tax?

Land Tax is included in the Federal Treasurer's determination under section 81.5 of A New Tax System (Goods and Services Tax) Act, 1999 and is NOT subject to GST.

How do I pay my Land Tax Notice?

Details of the payment methods available are listed on our payments page.

Penalties and Legal Action

If your account is not paid by the due date, interest and penalties will be imposed on the unpaid tax.

If the tax and penalty then remains unpaid, legal action may be commenced without further notice and you may be liable for any costs incurred.

How is the value of my land assessed?

The land/site value is determined by the Valuer-General. If the site value on the account differs from the previous year, it will be as a result of a revaluation by the State Valuation Office.

Formal objections regarding the valuations must be in writing served personally or by post to the State Valuation Office. Objections must be lodged within 60 days after the date of service of the first Notice served.

PLEASE NOTE:

  • The 60-day objection period starts at the date of the first Notice received. If you receive  further Notices under the Land Tax Act, 1936, the objection period does not change.
  • You may not object to the valuation if the Valuer-General has already considered an  objection by you in response to another rating authority for this financial year.

All queries and objections regarding the valuation of your land, should be directed to:

State Valuation Office
GPO Box 1354
ADELAIDE SA 5001

What should I do if my Notice is wrong?

If you think your Land Tax Notice for Payment is incorrect in any way, please return it to RevenueSA with an explanation of the amendments required. Please provide a daytime contact and telephone number in order to process your enquiry promptly.

If you lodge an objection, your Land Tax Notice should still be paid in accordance with the due date shown thereon - any reduction in Land Tax resulting from the objection will be provided by way of refund.

Trusts

Where a property is owned by an individual or organisation on behalf of a trust, the owner(s) (trustees) can apply to have that property assessed separately from other land owned by the trustee in another capacity.

To apply, please provide this Office with:·

  • A letter advising which property is owned on behalf of the trust.
  • A stamped copy of the relevant trust deed in its entirety.
  • Evidence to show that the property was purchased on behalf of the trust.This can be in the form of a stamped transfer document, settlement statement, minutes of the Trust meeting, contract for sale or financial statements of the trust. If financial statements are supplied the statements should identify that the property is an asset of the trust.

Changing Address Details

If you wish to change your address details, please complete the online change of address form or telephone us on 08 8204 9870.

Customer service charter

RevenueSA aims to provide you with a service, which is efficient and responsive and will ensure that your privacy and confidentially is respected.

In responding to enquiries during the period from October to February each year, it should be recognised that RevenueSA experiences a major increase in workload with relation to land tax.

Over 88,000 Notices will be issued during this period and based on previous experience, delays can be expected. However, as many as possible of our staff will be dedicated to addressing customer enquiries and will strive, at all times, to respond to your queries in the shortest possible time.

 

       

This page was last updated 3 November, 2006