Absentee owners and joint owner assessments

Key information

If you are an absentee owner, an absentee owner surcharge applies to your land tax.

If you own load with others, you are a joint owner.

Joint owner assessments

We assess joint owners for land tax in 2 stages. 

• Stage 1 – joint owner assessment: all joint owners are assessed as though they were one person on all land they own jointly together.
• Stage 2 – individual assessment: if an owner owns land in any other capacity (individually or as part of another joint ownership), we assess each owner individually on all the taxable land they own, including their interest in any jointly owned land, with a deduction applied to their individual assessment for tax paid at the joint ownership level.

The deduction is the lesser of: 

• your share of the tax in the joint ownership assessment, or 
• the amount of tax in your individual assessment for your share in the jointly owned land. 

Absentee owners and joint owner assessments

How the absentee owner surcharge applies depends on whether all joint owners are absentee owners. 

If all the joint owners are absentee owners, the surcharge applies to the joint ownership with any trust is disregarded. At the individual level, the surcharge will apply to each absentee joint owner.  

If not all the joint owners are absentee owners, the surcharge will not apply to the joint ownership assessment. At the individual level, the surcharge will apply to a joint owner who is an absentee owner, but does not apply to a joint owner who is not an absentee owner.  

In both scenarios, a joint owner of land will not be assessed at the individual level if: 

• they do not own other land jointly with other owners or individually in any capacity, and 
• is either a non-absentee owner, or is an absentee owner who has already been assessed at the joint ownership level. 

This is to ensure the COVID-19 debt temporary surcharge is correctly imposed during the 2024 to 2033 tax years. Read more about the COVID Debt Repayment Plan. 

The following examples show how the absentee owner surcharge applies in each situation.

Example A: All joint owners are absentee owners

At midnight on 31 December of the preceding tax year, John and Indira each own 50% of Property A, an investment property with a taxable value of $330,000. 

Indira also owns another property in her own name, Property B, an investment property with a taxable value of $200,000. 

Both John and Indira are absentee owners. 

John and Indira, as the joint owners of Property A, will be assessed together in the joint ownership assessment. 

Indira will be assessed separately as an owner of 50% of Property A and the owner of Property B.

Joint ownership assessment

John and Indira’s joint ownership liability is calculated by applying the appropriate rate of land tax to the total taxable value of their non-exempt land. 

The taxable value of Property A (the jointly owned land) is $330,000. 

The general absentee owner rate for land holdings worth from $300,000 up to $600,000 is $13,350 + 4.3% of the amount over $300,000. 

That means the land tax payable is $13,350 + (($330,000 – $300,000) × 4.3%) = $14,640. 

John and Indira share liability for this amount. 

John's individual assessment

John does not own any taxable land other than Property A, and meets the other conditions for not being assessed at the individual level.

Indira's individual assessment

As Indira owns other property, she receives an individual assessment. This includes all the taxable land she owns, including the jointly owned land.

There are 3 steps to calculate Indira’s land tax liability:

1. Calculate Indira’s liability on her total land holdings.
2. Calculate Indira’s joint ownership deduction.
3. Calculate Indira’s individual tax liability by applying the deduction.

Step 1: Calculate Indira’s liability on her total land holdings

Calculate the total taxable value of Indira’s land holdings

The value of Indira’s individual land holding, Property B, is $200,000.

The value of Indira’s joint ownership land holding in Property A is $165,000 (being 50% of $330,000).

That means the total value of Indira’s land holdings is $365,000 ($200,000 + $165,000).

Calculate the tax payable on Indira’s total landholdings

The general absentee owner surcharge rate for land holdings valued from $300,000 up to $600,000 is $13,350 + 4.3% of the amount over $300,000.

The land tax payable by Indira before the joint ownership deduction is $13,350 + (($365,000 - $300,000) × 4.3%) = $16,145.

Step 2: Calculate Indira's joint ownership deduction

Indira is entitled to a joint ownership deduction in her individual assessment. The deduction is the lesser of:

• 50% (proportion of Indira’s share in the jointly owned land) × $14,640 (total amount of land tax assessed on the joint ownership assessment) = $7,320, or
• $165,000 (the value of Indira’s share in the jointly owned land) divided by $365,000 (Indira’s total land holdings) × $16,145 (tax on Indira's total land holdings) = $7,298.42.

Therefore, Indira is entitled to a joint ownership deduction of $7,298.42.

Step 3: Calculate Indira’s individual tax liability by applying the deduction

Subtract the deduction ($7,298.42) from the tax on Indira’s total land holdings ($16,145). The land tax payable by Indira as an individual is $8,846.58 (i.e. $16,145 - $7,298.42).

Indira must also to pay the joint ownership assessment.

Example B: Some joint owners are absentee owners

At midnight on 31 December of the preceding tax year, Minh and Therese each own 50% of Property A, an investment property with a taxable value of $330,000.

Therese also owns one other property in her own name, Property B, an investment property with a taxable value of $200,000.

Only Therese is an absentee owner.

As the joint owners of Property A, Minh and Therese will be assessed together in the joint ownership assessment.

Therese will be assessed in respect of her interests in both Property A and Property B.

Joint ownership assessment

Minh and Therese’s joint ownership liability is calculated by applying the appropriate rate of land tax to the total taxable value of their non-exempt land.

The taxable value of Property A (the jointly owned land) is $330,000.

As only Therese is an absentee owner, general rates of land tax apply to the joint ownership assessment. The general rate for land holdings valued from $300,000 up to $600,000 is $1,350 + 0.3% of the amount over $300,000.

That means the land tax payable is $1,350 + (($330,000 – $300,000) × 0.3%) = $1,440.

Minh and Therese share liability for this amount.

Minh's individual assessment

Minh does not own any taxable land other than Property A and meets the other conditions for not being assessed at the individual level.

Therese's individual assessment

As Therese owns other property, she receives an individual assessment. This includes all the taxable land she owns, including the jointly owned land.

There are 3 steps to calculating Therese’s land tax liability:

1. Calculate Therese’s liability on her total land holdings.
2. Calculate Therese’s joint ownership deduction.
3. Calculate Therese’s tax individual liability by applying the deduction.

Step 1: Calculate Therese’s liability on her total land holdings

Calculate the total taxable value of Therese’s land holdings

The value of Therese’s individual land holding, Property B, is $200,000.

The value of Therese’s joint ownership land holdings in Property A is $165,000 (being 50% of $330,000).

That means the total value of Therese’s land holdings is $365,000 ($200,000 + $165,000).

Calculate the tax payable on Therese’s total landholdings

The general absentee owner surcharge tax rate for land holdings valued from $300,000 and up to $600,000 is $13,350 + 4.3% of the amount over $300,000.

The land tax payable by Therese before the joint ownership deduction is $13,350 + (($365,000 - $300,000) × 4.3%) = $16,145.

Step 2: Calculate Therese's joint ownership deduction

Therese is entitled to a joint ownership deduction in her individual assessment.

The deduction is the lesser of:

• 50% (proportion of Therese’s share in the jointly owned land) × $1,440 (total amount of land tax assessed on the joint ownership assessment) = $720, or
• $165,000 (the value of Therese’s share in the jointly owned land) divided by $365,000 (Therese’s total land holdings) × $16,145 (tax on Therese’s total land holdings)) = $7,298.42.

Therefore, Therese is entitled to a joint ownership deduction of $720.

Step 3: Calculate Therese’s individual tax liability by applying the deduction

Subtract the deduction ($720) from the tax on Therese’s total land holdings ($16,145). The land tax payable by Therese as an individual is $15,425 (i.e. $16,145 - $720).