As effective from 1 January 2005 the NSW State Government has introduced a new land tax levy that will affect all property investors.
The levy is applicable on a tiered scale
Land Value (unimproved)||Applicable annual levy rate|
$1 to $399,999||0.4%|
$400,000 to $500,000 ||0.6%|
$501,000 and over ||1.4%|
For example, on a median land value of $294,000 the calculated land tax for the year would be $1,176.00.
The tax is applicable on the unimproved land content value of the property (without considering a house or other fixtures) or its purchase price.
How is your land value calculated?
The NSW office of the Valuer General sets the value of your land. The valuer general may base property values on official sales median prices is a given council area over a given period. It is important to note that land valuations set by the valuer general office do not necessarily reflect the market trend.
The valuation issued by the valuer general is also used to determine your council rates.