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This video is intended as a guide only. We recommend you seek independent advice about state revenue matters and how they impact you and your circumstances.
This video does not deal with land tax on related corporations or trusts. More information about related corporations, trusts and their land tax treatment can be found on our website.
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Land tax is calculated on the site value of the land which is obtained from the Valuer-General’s Department. It is the value of the land excluding any buildings or other improvements.
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The site values of all taxable land owned in the same land tax ownership will be aggregated, or added together, to determine the land tax payable.
If you own properties in different ownerships, that is, where the owners of the properties are not the same person or the identical group of owners, the properties will be assessed first in the joint ownership and then the individual’s share of the joint properties will be assessed in the individual ownership.
If a property is taxed in a joint ownership, the individual will see a deduction on their individual Land Tax Assessment for their share of the tax on the jointly owned property.
This prevents them being double-taxed on the same property.
There are different rates and thresholds for general land and land that is held on trust.
Trusts can be quite complicated, please see our website for additional information and examples relating to trusts and land tax.
A minimum threshold applies to each land tax ownership. This means that if the total of the combined site values of all the taxable properties in an ownership is below the threshold, land tax will not be applied.
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Here are the minimum thresholds...
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For general land, the minimum threshold for land tax for 2022-23 is $534,000.
For land held on trust, the minimum threshold for land tax for 2022-23 is $25,000.
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I’ll get the current rates and the different tax brackets on screen for you now too.
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These are the general rates for 2022-23.
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These are the trust rates that apply in 2022-23.
Let’s now look at some examples using the general land tax rates for land that is not held on trust.
Courtney owns one taxable property which has a site value of $325,000 and is not held on trust. As this is below the minimum threshold for general land, no tax will be applied.
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Umar and Stefan own two taxable properties together, each worth $350,000. They don’t own any other taxable property on their own or with others.
Let’s calculate what their land tax will be.
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Land tax is calculated on a total site value of $700,000. There is no land tax on the first $534,000. Land tax on the difference between $534,000 and the total site value, which in this scenario is $166,000 is calculated at 50c per $100 equalling $830.
Land tax payable in this scenario is $830.
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Charlie and Sam own 4 taxable properties together, each with a site value of $450,000. The total site value is $1.8 million.
Let’s calculate what their land tax will be.
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Land tax is calculated on a total site value of $1.8m.
Land tax on $1,249,000 is $5,530.
Land tax on the difference between $1,249,000 and the total site value, which in this scenario is $551,000, is calculated at $2.00 per $100 equalling $11,020.
These 2 amounts are added together and the land tax payable in this scenario is $16,550.
If Charlie also owns individual properties and receives an individual Land Tax Assessment, Charlie’s share of the jointly owned properties will show on that individual Assessment. And a deduction for Charlie’s share of the land tax on the joint properties will reduce the individual Land Tax Assessment.
You can see more examples, including examples for joint ownerships, individual ownerships and multiple ownerships on our website.
More information can be found at www.revenuesa.sa.gov.au/landtax