 Package of Land Tax Changes
Amendments have been made to the Land Tax Act 2005 to:
- reduce general Land Tax rates for 2007 and subsequent years;
- reduce Land Tax rates for trusts for 2007 and subsequent years; and
- cap increases in the 2007 Land Tax assessments.
This page will be updated shortly as a result of changes announced in the 2008 State Budget. For further information in relation to these changes, please go to our home page.
Reduction of the general Land Tax Rates for 2007 and subsequent years
In addition to bringing forward the reduction in the top marginal rate to 3% from 2008 to 2007, there is also a 20% reduction to the middle Land Tax rates:
Taxable valuethreshold starting from |
Old rate |
New reduced rate |
$900,000 |
1% |
0.8% |
$1,190,000 |
1.5% |
1.2% |
$1,620,000 |
2.25% |
1.8% |
As a result of the amendments, the general Land Tax rates for 2007 and subsequent years are as follows:
Taxable value of landholdings |
Land tax payable |
Less than $200,000 |
Nil |
$200,000 to $540,000 |
$200 plus 0.2% for each dollar over $200,000 |
$540,000 to $900,000 |
$880 plus 0.5% for each dollar over $540,000 |
$900,000 to $1,190,000 |
$2,680 plus 0.8% for each dollar over $900,000 |
$1,190,000 to $1,620,000 |
$5,000 plus 1.2% for each dollar over $1,190,000 |
$1,620,000 to 2,700,00 |
$10,160 plus 1.8% for each dollar over $1,620,000 |
$2,700,000 and over |
$29,600 plus 3% for each dollar over $2,700,000 |
Reduction of the rates of Land Tax for trusts for 2007 and subsequent years
The reduction of the top marginal rate of Land Tax for trusts to 3% has also been brought forward from 2008 to 2007. Further, the middle rates have been reduced in the following manner:
Land ValueThreshold starting from |
Old rate |
New reduced rate |
$900,000 |
1.375% |
1.175% |
$1,190,000 |
1.875% |
1.575% |
$1,620,000 |
1.706% |
1.256% |
Land Tax rates for trusts for 2007 and subsequent years are as follows:
Taxable value of landholdings |
Land tax payable |
Less than $20,000 |
Nil |
$20,000 -$200,000 |
$75 and 0.375% for each dollar over $20,000 |
200,000 - $540,000 |
$750 and 0.575% for each dollar over $200,000 |
$540,000 - $900,000 |
$2,705 and 0.875% for each dollar over $540,000 |
$900,000 - $1,190,000 |
$5,855 and 1.175% for each dollar over $900,000 |
$1,190,000 - $1,620,000 |
$9,263 and 1.575% for each dollar over $1,190,000 |
$1,620,000 - $2,700,000 |
$16,035 and 1.256% for each dollar over $1,620,000 |
$2,700,000 and over |
$29,600 and 3% for each dollar over $2,700,000 |
Capping of increases in 2007 Land Tax assessments
Land Tax increases in 2007 are also capped at 50%. This means that no taxpayer will experience an increase in their Land Tax liability of more than 50% for the 2007 Land Tax year with respect to the same property holdings. Capping does not apply to a taxpayer whose 2006 Land Tax assessment is nil.
June 2005
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