Investment property owners are likely to receive a shock as significantly higher land tax assessments are expected this year and beyond as a result of soaring land values in NSW and Victoria. Other states do not seem to have had the same increases.
Unimproved land values on which land tax is assessed increased by more than 11% in 2014, according to the NSW Valuer General and this will form part of the next land tax assessment based on the average of the land value for the current tax year and the land values for the previous two years.
The most important factor the Valuer General considers in determining land values is sales of similar properties in a particular locality.
Investment property owners receiving their next land tax assessments should pay close attention to the land value stated on the assessment notice and monitor sales of similar properties. If you are concerned with any substantial increase in land value and the consequent land tax payable, you should consider having the land value reviewed.
In NSW land valuations are determined by the Valuer General, not the Office of State Revenue. Land valuation objection forms are available by calling 1800 110 038 or you can use the online objection facility at the Valuer General website. Any objection against land value stated in the notice must be lodged within 60 days from the issue of the assessment. Supporting evidence for a lower valuation should be provided, including details of unique aspects of your property such as unusable portions and sales of what you believe are comparable properties and land values in the area.
Here is a list of contacts for each state/territory if you wish to dispute your land tax valuation.
State Revenue Office in Victoria
Office of State Revenue in Queensland
Department of Finance in Western Australia
State Valuation Office in South Australia
State Revenue Office in Tasmania
There is no Land Tax in the NT.