Land tax

Land tax calculation
Land tax billing
Land tax rates
Certificate of Rates, Land Tax and Other Charges

General information

What is land tax?

Land tax is a general revenue measure that is used by the Government to provide a range of essential services to the ACT Community.

Land tax is imposed under the Land Tax Act 2004.  The marginal rates used to calculate land tax are determined under the Taxation Administration Act 1999.

Who pays land tax?

Generally, land tax applies to all rateable commercial properties and any residential properties that are rented or owned by a trustee or a corporation.

If you own a residential property that is rented, you are liable for land tax on that property.  This also applies to boarding houses and multiple dwellings, including dual occupancies and granny flats that are rented.  Rent can include cash, services or any other valuable consideration earned in respect of a property for which any form of tenancy arrangement exists.

Residential properties owned by a trustee or a corporation are liable for land tax, even if they are not rented.

Responsibilities of owners and agents

You are required to advise the Commissioner for ACT Revenue within 30 days if a residential property you purchase, or have an interest in, is rented or becomes rented.  You are also required to advise the Commissioner of any future changes in circumstances that may render any such property liable for land tax within 30 days of the change occurring.  Failure to provide the required information is a tax default and you may incur interest and penalties in addition to the primary tax.  Giving false or misleading information is a serious offence.

Agents may be required to fulfil any undischarged obligations of a taxpayer where the agent has possession, control or management of the taxpayer's business or property.  Any information regarding land tax liability must be notified in writing.

Exemptions

Residential land used as a retirement village, nursing home, or by a religious institution to provide accommodation to a member to perform their duties, is exempt from land tax.  Other exemptions from land tax include land used for rural purposes, broad-acre subdivision, residential land owned by a trustee under a will of a deceased person and occupied by a life tenant, and residential land owned by a not-for-profit housing corporation.

Exemption from land tax on residential land owned by a building or land development corporation can apply for two years from the first quarter after the date of ownership if constructing new residential premises that are to be sold when finished.

An exemption on compassionate grounds may be available for up to one year on a residential property that is rented where the Commissioner for ACT Revenue is satisfied that the owner (a natural person) is temporarily absent because of a compelling compassionate reason.  You must apply in writing to the Commissioner for consideration of your case.

Relevant links

• Land Tax Information pamphlet [RTF, 1.5Mb], [PDF, 2.1Mb] 
• Land Tax Act 2004 (external site)
• Current marginal rates for land tax (external site)
• Notification of Rental Status of Property for Land Tax Purposes Form [RTF, 2.3Mb], [PDF, 58KB]  
• Notification of  Agent and Rental Status of Property for Land Tax Purposes Form [RTF, 2.3Mb], [PDF, 105KB] 

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