The land tax rate in NSW for 2009 is to remain at 1.6% (plus $100) on the combined value of all taxable land in excess of the threshold. The NSW Valuer General (VG) has determined the land tax threshold for 2009 is $368,000.00. Note however, that land tax rate for properties valued at over $2.25m is charged at the premium rate of 2%
Who is required to Pay Land Tax?
In NSW, land tax is levied on landowners on the value of the land in NSW they owned at midnight on 31 December of each year.
Generally, your home and land used for primary production (such as farms) are exempt. Land tax is calculated on the combined value of all taxable land (the other land that doesn't include the home or farm) you own above the threshold. That is, it's assessed on the land value between the threshold amount ($368,000.00 in 2009) and the premium rate threshold.
Examples of other land that may included in determining whether you're liable to pay land tax include investment properties, vacant land, holiday homes and factory units.
What about those land values?
This report reveals a problem caused by the economic slowdown, in turn caused by the recent global financial crisis, in that properties' valuations in NSW were assessed before the impact of the economic slowdown really hit. The time lag in those assessments have caused VG figures recently released to suggest that some land values in NSW have actually increased quite handsomely! Other more sobering reports, and probably truer and more current, such as this one, actually discuss the falling market values.
The VG and the NSW government appear not to be denying the anomaly, but state when land values are reassessed in 2009, those assessments will take into account land values relative to the market at that time. We'll see.
Who is required to Pay Land Tax?
In NSW, land tax is levied on landowners on the value of the land in NSW they owned at midnight on 31 December of each year.
Generally, your home and land used for primary production (such as farms) are exempt. Land tax is calculated on the combined value of all taxable land (the other land that doesn't include the home or farm) you own above the threshold. That is, it's assessed on the land value between the threshold amount ($368,000.00 in 2009) and the premium rate threshold.
Examples of other land that may included in determining whether you're liable to pay land tax include investment properties, vacant land, holiday homes and factory units.
What about those land values?
This report reveals a problem caused by the economic slowdown, in turn caused by the recent global financial crisis, in that properties' valuations in NSW were assessed before the impact of the economic slowdown really hit. The time lag in those assessments have caused VG figures recently released to suggest that some land values in NSW have actually increased quite handsomely! Other more sobering reports, and probably truer and more current, such as this one, actually discuss the falling market values.
The VG and the NSW government appear not to be denying the anomaly, but state when land values are reassessed in 2009, those assessments will take into account land values relative to the market at that time. We'll see.
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