Navigating Your Land Tax in 2023.

If you own an investment, chances are you may have already received your land tax Notice of Assessment for 2023. If you have noted a significant increase in your tax bill this year, you’re certainly not alone. Tax rate thresholds for land values change each year, and many are seeing substantial increases this time around.

While a property owner’s principal place of residence is generally exempt, land tax is payable on the total taxable value of all other property or land owned in NSW - either individually or jointly with another person - where the value is $969,000 or more (with a higher tax applied to premium properties over the value of $5,925,000).

Following a meteoric jump in Sydney property prices over the last ten years, it is no surprise that investor demand has cooled in more recent times, as tighter lending restrictions and the rising cost of living in a high inflation environment continue to place a great deal of financial pressure on the average person.

Many land and property owners will be surprised to have received increased land tax assessments, and are rightly questioning whether the increased tax really reflects the current state of the property market.

This increase is even more prominent for foreign investors with the NSW Government announcing in its 2022–2023 Budget that the land tax surcharge will increase from 2% to 4% this year.

How do I know my land tax is an accurate reflection of my property?

Seek an expert opinion on your property’s value, and consider your options.

If your land tax assessment is much higher than you believe it should be, or is significantly higher than it was in previous years, you may have the right to lodge a formal objection or variation return online.

It’s important to know that while objections can lead to valuations being reduced, a valuation may also be increased upon review. Accordingly, it is important to ensure that any objection is well founded and, ideally, expert valuation advice is obtained prior to formally lodging one.

Our team at DibChidiac specialise in knowing what your property is worth, at any point in time.

If you want to better understand what your property’s value is so you can make an informed judgment about your land tax bill, contact us today for a confidential discussion with one of our agents.