Land Tax
Frequently Asked Questions
- What is Land Tax?
- Who is liable for payment of Land Tax?
- Why is this the first time I have received a Notice of Land Tax Assessment?
- How is Land Tax calculated?
- Who determines the site value used to calculate Land Tax?
- What if I disagree with the site value of my property?
- Are there any exemptions from Land Tax?
- I sold a property AFTER 30 June. Who is liable for the Land Tax?
- Can I have a separate notice for each property?
- My property is held in Trust. Can it be on a separate notice?
- How do I change my address details?
- How do I pay my Land Tax Notice?
- How are penalties and interest calculated in cases of late payment?
Land ownership, site value and land use as at midnight 30 June each year are used to determine the Land Tax for the forthcoming financial year. Land Tax revenue assists in the provision of public services such as education, health and public safety.
Who is liable for payment of Land Tax?
The owner of the property as at midnight 30 June is liable to pay the Land Tax assessed for the forthcoming financial year. Where a property was sold after 30 June, the vendor (seller) is still liable for the Land Tax.
It is a common practice (although not a legal requirement) for land conveyancers to arrange a proportional adjustment between the purchaser and the vendor of land, for any applicable Land Tax at the time of land settlement. This adjustment should be calculated as if the property being sold is the only taxable property in the ownership.
For exemptions from Land Tax, to which you may be entitled, please refer to Exemption From Land Tax page.
Why is this the first time I have received a Notice of Land Tax Assessment?
There are three main reasons why you may have received a Notice of Land Tax Assessment for the first time:
- the total taxable site value of all taxable land owned by you as at 30 June may now exceed the threshold of $110,000;
- you may have bought additional land in the last financial year; or
- land previously exempt from Land Tax may now no longer satisfy the exemption criteria.
Land Tax is calculated on the basis of the total taxable site value of all land owned (by an owner or a group of owners) as at midnight 30 June.
Land Tax rates are:
| Total Taxable Site Value | Rate |
|---|---|
| Up to $110, 000 | Nil |
| $110,001 - $350,000 | $0.30 for every $100 or fractional part of $100 over $110,000 |
| $350,001 - $550,000 | $720 plus $0.70 for every $100 or fractional part of $100 over $350,000 |
| $550,001 - $750,000 | $2,120 plus $1.65 for every $100 or fractional part of $100 over $550,000 |
| $750,001 - $1,000,000 | $5,420 plus $2.40 for every $100 or fractional part of $100 over $750,000 |
| Over $1,000,000 | $11,420 plus $3.70 for every $100 or fractional part of $100 over $1,000,000 |
Where an owner owns more than one taxable property, Land Tax is apportioned to each taxable property within the ownership based on the taxable site value of each taxable property (see example).
Example
A person owns two taxable properties: Property A (with a site value of $200,000) and Property B (with a site value of $300,000).
Land Tax on $500,000 is calculated as follows:
| Tax on $350,000 | = |
$ 720 |
| plus Tax on $350,001 to $500,000 (i.e. $150,000 @ $0.70 for every $100 or fractional part of $100) | = |
$1,050 |
Total Land Tax payable |
= |
$1,770 |
The total Land Tax payable ($1,770) is apportioned on the Notice of Land Tax Assessment as follows:
| Property A = | site value of property ($200,000) |
||||
total taxable site value ($500,000) |
x | $1,770 | = | $ 708 | |
| Property B = | site value of property ($300,000) |
||||
total taxable site value ($500,000) |
x | $1,770 | = | $1,062 | |
| Total | = | $1,770 |
You can also use our calculator to determine your land tax.
Who determines the site value used to calculate Land Tax?
The site value is determined by the State Valuation Office. The value is determined using industry recognised valuation processes that take into consideration the sales and related market evidence and all other matters that may have an impact on the value of a property.
What if I disagree with the site value of my property?
You may object to the valuation within 60 days after the date of service of the Notice of Land Tax Assessment.
But Note:
(a) if you have previously received a notice or notices under the Land Tax Act 1936 referring to the valuation and informing you of a 60 day objection period, the objection period is 60 days after service of the first such notice.
(b) you may not object to the valuation if the Valuer-General has already considered an objection by you to that valuation.
Your objection must contain a full and detailed statement of the grounds on which the objection is based. Your objection can be directed to:
- In Person: State Valuation Office, 101 Grenfell Street, Adelaide SA 5000
- Mail: GPO Box 1354, Adelaide SA 5001
- Email: objections@saugov.sa.gov.au
Objection to Valuation Enquiries: Phone: 1300 653 345
If you lodge an objection, you are still required to pay your land tax by the due date. If your objection is upheld which results in a reduction in land tax, then a refund may be issued.
Are there any exemptions from Land Tax?
Click here for more information.
I sold a property AFTER 30 June. Who is liable for the Land Tax?
The owner of the property as at midnight 30 June is liable to pay the land tax assessed for the forthcoming financial year. Where a property was sold after 30 June, the vendor (seller) is still liable for the land tax.
The Act does not provide for pro rata payments or apportionment of the land tax where properties are sold and/or purchased during a financial year.
It is a common practice (although not a legal requirement) for land conveyancers and solicitors to arrange a proportional adjustment between the purchaser and the vendor of land, for any applicable Land Tax at the time of land settlement. This adjustment should be calculated as if the property being sold is the only taxable property in the ownership.
Any specific questions regarding the apportionment of the land tax or payment of the tax at settlement should be directed to your land conveyancer or solicitor.
Can I have a separate notice for each property?
No.
The land tax legislation requires land tax to be calculated on the basis of the total taxable site value of all land owned (by an owner or a group of owners) as at midnight 30 June.
Aggregation of the value of all properties of an owner for land tax assessment purposes is applied by all Australian jurisdictions that impose land tax. It is not considered equitable that two owners holding land identical in total value, one with one property and the other with two or more properties should pay different amounts of land tax.
My property is held in Trust. Can it be on a separate notice?
Click here for more information.
How do I change my address details?
If you wish to change your address details, please complete the online change of address form or telephone us on (08) 8204 9870 between 8:30am - 5:00pm on South Australian business days.
How do I pay my Land Tax Notice?
Click here for more information.
How are penalties and interest calculated in cases of late payment?
The Taxation Administration Act 1996 (Act) allows for a flat penalty tax of 75% of the unpaid land tax to be imposed in instances of the deliberate non-payment of land tax, or 25% for any other situation. The Commissioner of State Taxation has exercised discretion to reduce the 25% penalty tax to the rate of 5% of the annual primary land tax outstanding provided the further assessment is paid in full by the due date. The Act also allows for interest to be imposed on unpaid tax on a daily basis from the due date until the date the land tax is paid.
This page was last updated 27 October, 2008