Joint owner examples (no individual deductions)

Assessments for joint owners

If you own land with others, you are a joint owner. We assess joint owners for land tax in 2 stages – a joint ownership assessment and an individual assessment.

Read more about land tax and joint owners.

Here are examples of how land tax is assessed where:

• land is owned jointly and the total value of the jointly owned taxable land is under the taxable threshold – Example X
• land is owned jointly and its value is over the the taxable threshold and it is used as a principal place of residence (PPR) for one owner – Example Z.

Example X: Jointly owned land under the taxable threshold

• At midnight on 31 December of the preceding tax year, Mr Wood and Ms Lee each owned 50% of Property A, an investment property with a taxable value of $40,000.
• Ms Lee also owns one other property in her own name, Property B, an investment property with a taxable value of $275,000.

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

Mr Wood does not own any other land so his total taxable land holdings are under the taxable threshold. This means he does not receive an individual assessment.

Individual assessment of Ms Lee

• Ms Lee receives an individual assessment for all the taxable land she owns, being her share of Property A ($20,000) and all of Property B ($275,000) because the total taxable value of her land holdings is over the taxable threshold of $50,000.
• 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 the property she owns by calculating the:
  • total value of her taxable land holdings
  • 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 $275,000.
• The value of Ms Lee’s interest in Property A, being 50% of $40,000.
• Accordingly, the total value of Ms Lee’s taxable land holdings is $295,000 ($275,000 + $20,000).

Calculating the tax payable on Ms Lee’s total land holdings

• The general land tax rate for land holdings valued from $100,000 to less than $300,000 is $975.
• 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% of Property C, with a taxable value of $340,000.
• Property C is an investment property for Ms Lee, but Mr Wood lives in this property and uses it as his PPR.
• Ms Lee also owns one other property in her own name, Property D, an investment property with a taxable value of $200,000.

Joint ownership assessment

As Property C is Mr Wood’s PPR, it is exempt from land tax so no joint ownership assessment is issued.

Individual assessment of Mr Wood

Mr Wood does not own any other land and as Property C is exempt, he does not receive an individual assessment.

Individual assessment of Ms Lee

• Ms Lee receives an individual assessment for all taxable land she owns, which is her share of Property C and all of Property D.
• As no joint ownership assessment was issued for Property C, 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:
  • total taxable value of her land holdings
  • tax payable on her total land holdings.

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

• Property D which Ms Lee owns by herself is valued at $200,000.
• The value of Ms Lee’s interest in Property C, is $170,000, being 50% of $340,000.
• Accordingly, the total value of Ms Lee’s land holdings is $370,000 ($200,000 + $170,000).

Calculating the tax payable on Ms Lee’s total land holdings

• The general land tax rate for land holdings valued from $300,000 to less than $600,000 is $1,350 + 0.3% of the amount greater than $300,000.
• The land tax payable by Ms Lee is $1,560, being $1,350 + (($370,000 - $300,000) × 0.3% = $210).
• She does not receive a joint ownership deduction for Property C because the joint ownership was not assessed for tax on this property.