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Taxable value of land

The Office of State Revenue (OSR) calculates land tax on the total taxable value of your freehold land at midnight 30 June.

The ‘taxable value’ for a financial year is the lesser of the:

  • Land Valuation Act 2010 value (statutory land value) of the land on 30 June
  • averaged value of the land on 30 June.

Learn more about the annual land valuations.

We determine the taxable value of each parcel of land separately and then combine the value of all your land to determine the total taxable value.

Your land tax assessment will include information on each of these values and how your liability was calculated.

How we calculate taxable value

We apply the relevant land tax rate to the total taxable value of all land you own as at 30 June 2017 to determine if you have a land tax liability. When determining all the land you own, we include all land owned solely and any interest in land owned with others.

You may own land in the name of various entities—for example, as an individual, the trustee of a trust, or in the name of a company you own. Where the value of the land each entity owns reaches the relevant threshold, an assessment notice will be issued.

If your assessment includes land you do not own or is missing land you owned at 30 June, contact us to reassess your liability.

Example 1

Ben owns an interest in four Queensland properties on 30 June 2017. The following describes the interest he owns in each property, the taxable value of the land and the proportional value of his interest.

 Property

Interest

Taxable value of land

Proportional value

Property #1

100%

$313,000

$313,000

Property #2

75%

$295,000

$221,250

Property #3

1%

$318,000

$3,180

Property #4

50%

$108,000

$54,000

The total taxable value of the land as at midnight on 30 June 2017 is $1,154,000. However, the total taxable value of Ben’s interest in the land is $591,430. Consequently, he will not receive a land tax assessment for 2017–18 because the total taxable value of his land is below the $600,000 threshold.

Example 2

Stacy Yang owns land in Queensland in her own name and as the trustee of a trust (SY Family Trust). She is also the director and sole shareholder of a company (SY Systems Pty Ltd) that owns land.

On 30 June 2017, these are the total taxable values of the land owned by each legal entity:

  • Stacy Yang—$450,000
  • Stacy Yang as trustee of the SY Family Trust—$635,000
  • SY Systems Pty Ltd—$772,000.

For 2017–18, a land tax assessment will issue to the SY Family Trust and to SY Systems Pty Ltd, because the total taxable value of their land is over the $350,000 threshold. However, she will not receive an assessment for land owned in her own name because the total taxable value is below the $600,000 threshold for individuals.

Statutory land value

This is the value of the land determined by the Valuer-General, Department of Natural Resources, Mines and Energy (DNRME), and is included in your annual land valuation notice.

OSR cannot change values issued by the Valuer-General.

Find out more about statutory land valuations, including your rights to object.

Averaged value

The averaged value of land is:

  • the average of the statutory land value for the current and previous 2 financial years or
  • the current year's statutory land value multiplied by the averaging factor for the year (where the previous 2 statutory land values are not available).

Example

A parcel of land had these values over the past 3 years:

  • $800,000 at 30 June 2017
  • $850,000 at 30 June 2016
  • $775,000 at 30 June 2015.

This is how the averaged value was calculated:

($800,000 + $850,000 + $775,000) ÷ 3 = $808,333

(In this case, because the statutory land value for 30 June 2017 is lower than the averaged value, the taxable value is $800,000.)

Averaging factor

This table shows the averaging factor for each year since 2010:

Year

Averaging factor

30 June 2017 0.94
30 June 2016 0.93
30 June 2015 0.96
30 June 2014 0.99
30 June 2013 1
30 June 2012 1
30 June 2011 0.94
30 June 2010 0.95

Example 1

A new parcel of land was created through a subdivision in April 2016. Its value on 30 June 2016 was $640,000.

Because there were no statutory land values for this parcel in previous years, the averaging factor was used to determine the averaged value. The averaging factor for 30 June 2016 was 0.93.

This is how the averaged value was calculated:

$640,000 x 0.93 = $595,200

Example 2

Before 30 June 2016, 2 adjacent lots were valued as 1 parcel of land at $800,000. During 2016–17, the owner sold 1 lot. The value of each lot at 30 June 2017 was $640,000.

Because there were no separate statutory land values for these lots in previous years, the averaging factor was used to determine the averaged value. The averaging factor for 30 June 2017 was 0.94.

This is how the averaged value for each of these lots was calculated:

$640,000 x 0.94 = $601,600

Contact us

Land tax

For land tax enquiries:

  • complete an online enquiry form
  • call 1300 300 734 (Australia) or +61 7 3227 6044 (overseas).

Calculate your land tax

Use our land tax estimator to find out how much land tax you may have to pay.

Licence
Creative Commons Attribution 3.0 Australia (CC BY 3.0)
Last updated
20 July 2017
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