Skip to main content Skip to home page

If you own land with others, you are a joint owner. We assess joint owners for land tax in two stages.

Stage 1 - Joint ownership assessment
We assess all of the joint owners together on all of their jointly owned land as though they were one person.

Stage 2 - Individual assessment
We assess you individually on all the taxable lands you own in any capacity, including your interest in any jointly owned land. If you are assessed for tax on the jointly owned land under a joint ownership assessment, we apply a deduction to your individual assessment.

In certain situations, we do not assess the joint ownership for jointly owned land, including where: 

  • All jointly owned land is exempt from land tax.
  • The jointly owned land is used by one or more of the owners as their home (principal place of residence). 
  • The total value of the jointly owned taxable land is under the taxable threshold.

You may however be liable for tax on these properties in your individual assessment. Where this is the case, you will not receive a joint ownership deduction because your individual assessment is the only time we assess the jointly owned land for tax.

Land tax and joint owners

We have provided examples below of how land tax is assessed where:

Example X: Jointly owned land under the taxable threshold

  • At midnight on the preceding tax year, Mr Wood and Ms Lee each owned 50 per cent of Property A, an investment property with a taxable value of $100,000.
  • Ms Lee also owns one other property in her own name, Property B, an investment property with a taxable value of $200,000.

Joint ownership assessment 

As the taxable value of Property A is under the taxable threshold, Mr Wood and Ms Lee do not receive a joint ownership assessment for the property. 

Individual assessment of Mr Wood

The only land that Mr Wood owns is Property A. Because Mr Wood’s total taxable landholdings are under the taxable threshold, he does not receive an individual assessment.

Individual assessment of Ms Lee

  • Ms Lee receives an individual assessment for all of the taxable land she owns, which is Property A and Property B, because the total value of all the taxable land she owns is over the taxable threshold of $250,000.
  • As no joint ownership assessment was issued for Property A, there is no need to calculate a joint ownership deduction for Ms Lee.
  • Ms Lee is just assessed for tax on all of the property she owns by calculating the:
  1. Total value of her taxable land holdings.
  2. Tax payable on her total land holdings.  

Calculating the total taxable value of Ms Lee’s land holdings

  • Property B which Ms Lee owns by herself is valued at $200,000.
  • The value of Ms Lee’s interest in Property A, which she owns with Mr Wood in a joint ownership is $50,000, being 50 per cent of $100,000.
  • Accordingly, the total value of Ms Lee’s taxable land holdings is $250,000 ($200,000 + $50,000).

Calculating the tax payable on Ms Lee’s total landholdings

  • The general land tax rate for land holdings valued between $250,000 and less than $600,000 is $275 + 0.2 per cent of the amount greater than $250,000.
  • The land tax payable by Ms Lee is $275.
  • She does not receive a joint ownership deduction for Property A because the joint ownership was not assessed for tax on this property.

Example Z: Jointly owned land used as a principal place of residence

  • At midnight on 31 December of the preceding tax year, Mr Wood and Ms Lee each owned 50 per cent of Property A, with a taxable value of $280,000.
  • Property A is an investment property for Ms Lee, but Mr Wood lives in this property and uses it as his principal place of residence (PPR).
  • Ms Lee also owns one other property in her own name, Property B, an investment property with a taxable value of $200,000.

Joint ownership assessment 

As Mr Wood lives in Property A and uses it as his PPR, no joint ownership assessment is issued for the property. 

Individual assessment of Mr Wood

Mr Wood does not own any other land and uses the jointly owned land, Property A, as his PPR. This makes it exempt from land tax and so he does not receive an individual assessment.

Individual assessment of Ms Lee

  • Ms Lee receives an individual assessment for all of the taxable land she owns, which is her share of Property A and Property B.
  • As no joint ownership assessment was issued for Property A, there is no need to calculate a joint ownership deduction for Ms Lee.
  • Ms Lee is just assessed for tax on all of the property she owns by calculating the:
  1. Total taxable value of her landholdings.
  2. Tax payable on her total landholdings.  

Calculating the total taxable value of Ms Lee’s landholdings

  • The value of Ms Lee’s interest in Property A, which she owns with Mr Wood in joint ownership is $140,000, being 50 per cent of $280,000.
  • Property B which Ms Lee owns by herself is valued at $200,000. 
  • Accordingly, the total value of Ms Lee’s land holdings is $340,000 ($200,000 + $140,000). 

Calculating the tax payable on Ms Lee’s total landholdings

  • The general land tax rate for land holdings valued between $250,000 and less than $600,000 is $275 + 0.2 per cent of the amount greater than $250,000. 
  • The land tax payable by Ms Lee is $455, being $275+ (($340,000 - $250,000) x 0.2%).
  • She does not receive a joint ownership deduction for Property A because the joint ownership was not assessed for tax on this property.
Last modified: 16 August 2019
Take a moment to tell us why. If you'd like a response to your feedback, please contact us online instead.
Back to top