Land Tax Lawyers in Sydney

In New South Wales, land used solely for the business of primary production may be eligible for a land tax exemption. While a land tax exemption can represent a significant saving, it is important to ensure a property qualifies for the exemption.

The dominant use of the relevant land must be primary production activities, where activities related to agriculture, dairy farming or pasturage Specific activities which may qualify property as primary production land include:

• Agriculture (e.g livestock, crops or horticulture);
• Aquaculture
• Forestry; or
• Apriculture.

In New South Wales, exemptions are available for rural land, and some non-rural land which meets specific criteria.

Consult with our lawyers to determine whether you are eligible for a land tax exemption for primary production land.

If your charitable institution is registered in New South Wales and operates solely within the state, you may be eligible for valuable land tax exemptions. These exemptions can significantly reduce your operating costs and allow you to allocate more resources to your charitable mission.

Land owned by your institution may be exempt from land tax if it is used solely for exempt purposes in NSW. These include:

• Providing charitable services: this covers activities like healthcare, education, social support, and environmental protection.
• Fundraising activities: land used for events, shops, or other fundraising efforts may be exempt.
• Administrative operations: your office or other essential administrative facilities may qualify.

Exemptions may apply to all or part of the land depending on its use; however, the activity must directly align with the institution’s registered charitable purpose, not be for the direct benefit of a person, and the land must be owned solely by the institution.

Consult with our lawyers to determine whether your charitable institution is entitled to a land tax exemption, when and how it should apply

A club, society or association which is registered with the New South Wales Office of State Revenue may be liable for a land tax exemption or concession for land it owns (or holds in trust ) which is used for charitable activities, sporting activities or educational activities.

Conditions and limits apply, and our lawyers can assist you to determine whether your society, club or association is eligible for any exemption or concession.

Retirement villages are generally subject to land tax, with the ability to apply for specific exemptions from payment of tax for specific areas of the land, including:

• Retirement villages operating under the Community Land Management Act 1989 may be exempt from land tax on land which is used solely for common areas, facilities and services for residents;
• Retirement villages operating under the Strata Schemes Management Act 1996 may be exempt from land tax on land used for common areas and amenities; and
• Land used for providing residential aged care services within the retirement village may be eligible for full or partial exemption,

It is important to note that each exemption has specific eligibility requirements and conditions, documentation and compliance. The complexity of land tax regulations and exemptions makes professional guidance essential.

Foreign persons owning land, or holding land in trust, in New South Wales, must pay surcharge on any payable land tax, making a significant increase in tax payable. The foreign surcharge may be payable even if there is no land tax payable for the property, however exemptions are available for some visa holders and citizens of certain countries.

Surcharge land tax does not apply to commercial land, however, it may be attached to any commercial land which provides a form of housing on residential land, but does not apply to commercial premises for purposes such as hotels, motels, and accommodation.

In New South Wales, your principal place of residence (which you own as your continuous and exclusive place of residence) is generally exempt from land tax. This exemption applies to only one property per family unit.

In order to be eligible for an exemption, you must have lived at the property for at least six months prior 31 December, and the land must have been used solely for residential purposes in that time.

Partial exemptions may apply if only part of the land is vacant, or if you have recently moved into a new home.

Penalties and tax may apply if you do not meet the criteria for eligibility

In New South Wales, land tax applies to the unimproved value of land (the estimated value of the land without any buildings or improvements) owned by individuals, companies, and trusts. This value is determined through annual valuations conducted by the Valuer General.

Land is typically valued as of July 1 of each year, with notices issued by March 31st of the following year. The Valuer-General uses various methods to estimate land value, considering factors like recent sale of similar properties, location and zoning. Land tax will be payable if the valuation exceeds the current threshold of $822,000.

If you believe your land valuation is inaccurate, you can lodge an objection with the Valuer General.