When is land tax payable in victoria

Apart from referring to these examples, you can use our land tax calculator , which estimates your land tax at general rates , including the absentee owner surcharge if applicable.

Land tax is calculated by applying the appropriate land tax rate to the total taxable value of your land holdings, excluding exempt land such as your home. Proportional land tax is the amount of land tax applying to one particular land as a proportion of your total land tax liability. This additional information is included on the back of the land tax certificate. For more information go to www.

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LIV Membership Join over 19, members and find out about the full suite of membership products and services. Other exemptions also apply. Land tax is payable on rental and investment properties, commercial properties such as retail shops, office premises and factories, holiday homes, vacant land, and other non-exempt land. The current land tax rates apply annually on a scale from approximately 0. It all depends on the site value. The Facts, Traps and Thresholds. Written by Adam Birrer. November 09, Contents What is Land Tax?

Does who owns the land matter? What Land Tax Traps do I need to know about? What do I need to know about Land Tax Thresholds? I own land, so what do I need to do next? What is Land Tax? In summary you will generally not be required to pay land tax if the property is: your home, known as your principal place of residence your farm, known as primary production land below the land tax threshold when it is assessed at midnight on 31 December each year Following are expanded details of land tax exemptions.

Back to Contents Land Tax Exemption Details Principal Place of Residence This exemption from land tax can apply where one of the owners uses and occupies the land as their principal place of residence. Concessions can also be applied in the following situations: land is intended as your principal place of residence changing your principal place of residence land is used for incidental business absence from your former residence deceased estates permitted occupancies mixed use properties Primary Production Land If the main use of the land is for primary production then this exemption may apply, whether or not it is you that is undertaking the primary production activity.

If the land is not zoned as rural, the property will need to pass a business test. This includes: vacant land, including vacant rural land land where a house, residential unit or flat has been built a holiday home an investment property or properties company title units residential, commercial or industrial units, including car spaces commercial properties, including factories, shops and warehouses land leased from state or local government.

Whether income is earned from the property or not, land tax still applies. Back to Contents Does who owns the land matter? Company or Trust Ownership A company is assessed in the same way as an individual unless it is related to another company. Trusts for land tax purposes can be divided into six categories, each with various taxing implications: special trusts fixed trusts superannuation trusts trusts created by a will concessional trusts charitable trusts A trustee is assessed in the same way as an individual unless it is a special trust.

A foreign person can be: an individual a corporation a trustee of a trust a beneficiary of a land tax fixed trust a government or government investor a partner in a limited partnership You are required to pay the surcharge on the taxable value of all residential land that you own as at 31 December each year. The surcharge is in addition to any land tax you may already pay.

The surcharge is assessed in relation to each parcel of land, and is proportional to ownership. You may be required to pay the surcharge even if you do not pay land tax. There is no tax-free threshold for the surcharge.

Leases of Crown Land If you lease property from either the Crown i.