Land Tax
Land tax is a state based tax. In NSW land tax is levied on the unimproved capital value of land that is owned at midnight on 31 December each year. There are exemptions for your main residence, primary production land, aged care facilities and land owned by religious institutions.
In May 2004, the NSW government changed the rules for calculating land tax by removing the threshold and introducing a stepped scale based on land value. This brought many more people into the land tax base, but this measure proved to be politically unpopular and it has since reverted to the previous arrangements. The threshold for 2006 (ie land owned at midnight on 31 December 2005) is $330,000.
Land owners should review their land holding each year and determine whether of not they need to register for land tax. A land tax clearance is required in order to sell a property and this often triggers prior year amendments (including penalties) when a taxpayer has not registered for land tax.
Other states (except Northern Territory) also impose land tax. Some states calculate land tax at 31 December, others at 30 June or 1 July and the threshholds also vary. Reference should be made to the following websites, where applicable:-