2024 Tax Deduction Guide for Property Investors
Prepare for the 2023 Land Tax Year – What you need to know
November 29, 2022 |
Revenue NSW will issue the 2023 Land Tax Notice of Assessments in January 2023.
We have prepared a list of the main changes to Land Tax for 2023, which covers the following:
- Extended Payment Plans
- Opt-in Digital notifications
- Changes to Land Tax
- 2023 Land Tax thresholds
- Are you selling your property early in the New Year
- Extended Payment Plans
When you receive your land tax assessment notice it provides you with three payment options.
Pay in full to receive a discount
- If you pay in full by your first instalment date, you will receive a 1.5 per cent discount (excluding past interest or penalties)
- From the 2023 land tax year, the discount for early payment of land tax will reduce from 1.5 per cent to 0.5 per cent if paid within 30 days after the service of the notice of assessment.
Pay in interest-free instalments
- If you pay in three instalments, each instalment will fall due one month after the last. If you do not pay an instalment on time, the total amount owing becomes due and you may be charged additional interest
- Pay within a 6-month period. If you have no overdue land tax amounts, you can opt in via our online services. The payment plans can be set up with monthly or fortnightly payments. If you miss or make a late payment, the plan will be cancelled, and interest may be applied. Please note that your first installment will include any overdue amounts, interest, or penalties (if any).
Note: Plans that extend beyond 6 months may accrue interest daily until paid in full.
Direct debits and payment plans
You can schedule a direct debit to make repayments against your payment plan via the online services. To find out more about this option please click here
Payment plans for overdue tax
If you have overdue land tax, you can apply for a payment plan to extend your payment dates. These plans may include interest.
- Opt – in Digital notifications
Revenue NSW has now introduced the online land tax services portal and you can now receive your notifications electronically. You must register for land tax if the value of all your taxable land is above the land tax threshold, even if you haven’t received a notice of assessment.
To register, you will need a client ID and correspondence ID. These are located in the top right hand corner of your land tax assessment notice. If you need further assistance with online registration, you will find assistance here:
Check your assessment notice
Check that the following details on your assessment notice are correct:
- all land that you owned on 31 December last year is listed
- land that has been granted an exemption has been highlighted
- you’re not falsely claiming an exemption on any land
- your foreign person status.
If your details are incorrect, update them online before the first instalment date or, if it’s a ‘nil’ assessment, within 40 days of the date shown on the assessment notice.
- Changes to Land Tax – Foreign Residents
From the 2023 land tax year, surcharge land tax payable on residential land owned by foreign persons is increased from 2% to 4% of the taxable value of the residential land owned at midnight on 31 December 2022.
- Land Tax Thresholds 2023
Revenue NSW will issue the 2023 Land Tax Notice of Assessment from 2nd January 2023. If you have a tax liability for 2023 and opted-in to receive your notice directly to your inbox, this will be sent to you from Service NSW on behalf of Revenue NSW.
How is land tax calculated?
Land tax is calculated on the total value of all your taxable land above the land tax threshold, not on each individual property. If the combined value of your land does not exceed the threshold, no land tax is payable. Your liability for each year is based on the value of all land you owned on 31 December in the previous year. Any changes to the land you own this year will only affect how much you pay next year.
Thresholds
The thresholds for land values change each year and are applied as follows:
- General threshold: $100 plus 1.6 per cent of land value above the threshold, up to the premium threshold.
- Premium threshold: $67,364 plus 2 per cent of land value above the threshold.
- The threshold is published in the Government Gazette in October each year and is applied to land holdings on 31 December each year.
- Land tax is applied for the full year following the taxing date of 31 December, and no pro-rata calculation applies.
| Tax Year | General Threshold | Premium Threshold |
| 2023 | $969,000 | $5,925,000 |
| 2022 | $822,000 | $5,026,000 |
| 2021 | $755,000 | $4,616,000 |
| 2020 | $734,000 | $4,488,00 |
| 2019 | $692,000 | $4,231,000 |
| 2018 | 629,000 | $3,846,00 |
How is land valued for land tax?
Every year, the Valuer General determines the value of all land in NSW at 1 July each year. Land value is the unimproved value of your land. The taxable value of each parcel of land is determined on the average value from the current year and the two past years, where applicable.
When a parcel of land has been created less than three years ago – for example, through a subdivision or amalgamation – we only consider the years after it was created.
- Are you selling your property early in the New Year
You can request an early issue Notice of Assessment for 2023 if you’re settling a property in the first 2 weeks of January 2023.
Applications can be made from 12 December 2022.
Source: Revenue NSW
How can we help?
If you have any questions or would like further information or property tax advice, please feel free to contact our office via email – [email protected] or phone 02 8651 8000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail.
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