Land tax: are you being overcharged

Posted on Dec 3, 2014 by Bruce Hurrell   |   Categories: Commercial & Business Law, Property & Conveyancing

Land tax notices in NSW start arriving at this time of year. Property owners should carefully review the land valuation notices and consider seeking advice on whether they accurately reflect the actual value of the land.

We have assisted our clients and achieved good results for them, where there is reason to believe that they are overpaying this tax.

If a property owner disagrees with the land value given by the New South Wales Valuer General they are entitled to submit an objection with the Department of Lands within 60 days from the date of issue of the land tax assessment notice. We have assisted our clients with the objection process and saved them considerable amounts of money.

There are many important factors which may affect the value the Valuer General has given to a property. Our advice is: Don’t just accept that value. It can be wrong.

The valuation is only based on comparable values and it is possible to have the valuation reduced. The value given is averaged over three years so if no objection is made the property owner could be overpaying land tax for at least the next three years.

The land tax threshold for 2015 is $432,000. A marginal tax rate of 1.6% of the aggregate taxable value above the tax-free threshold (plus $100) applies unless the taxpayer is trustee of a special trust. The premium rate threshold increases to $2,641,000. If the aggregate taxable value exceeds the premium rate threshold, a marginal tax rate of 2% applies.

Please contact our Commercial Property Lawyer, Bruce Hurrell, if you would like assistance in this area or more information.