Land Tax

• General Information
• Land Valuations
• Objections and Appeals 
• Payments
• Certificate of Rates, Land Tax and Other Charges

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General Information

• What is Land Tax?
• Who Pays Land Tax?
• Exemptions
• Responsibilities of Owners and Agents
• How is Land Tax Calculated?

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  and the marginal rates used to calculate Land Tax are determined by disallowable instrument under s139 of the Taxation Administration Act 1999 . See Disallowable Instrument DI 2005-60  for current determined marginal rates (valuation ranges and percentage rates).

See the Land Tax pamphlet  (56Kb) for general information.

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.

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.

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.

Notification of Rental Status of Property for Land Tax Purposes Form  (48Kb).

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.

Notification by Agent of Rental Status of Property for Land Tax Purposes Form  (52Kb).

How is Land Tax Calculated?

Land tax liability is assessed quarterly for all properties and is based on the status of a property on 1 July, 1 October, 1 January and 1 April (liability dates). Land tax is assessed for a whole quarter and there is no daily pro-rata of land tax liability within a quarter.

Residential property that has been rented but is temporarily vacant on a liability date will continue to be liable unless firstly, the vacancy continues for the whole quarter and secondly, the owner notifies the Commissioner for ACT Revenue in writing that the property has not been rented in that quarter.

Quarterly land tax assessments for 2008-09 are based on the Average Unimproved Value (AUV) that includes the 2006, 2007 and 2008 unimproved land values of the property and are calculated in accordance with the following formula:

AUV x rate x no. of days in the quarter
no. days in the year

Land Tax Marginal Rates for 2008-09

The following land tax marginal rates apply in 2008-09:

Residential Properties	Marginal Rate
AUV up to $75,000	0.60 %
AUV from $75,001 to $150,000	0.89 %
AUV from $150,001 to $275,000	1.15 %
AUV of $275,001 and above	1.40 %

Commercial Properties	Marginal Rate
AUV up to $150,000	0.89 %
AUV from $150,001 to $275,000	1.25 %
AUV of $275,001 and above	1.59 %

Land Valuations

Unimproved Value

Land tax is calculated on the average unimproved value which is defined in section 9 of the Land Tax Act 2004  as the average unimproved value of the parcel of land under the Rates Act 2004 . If the owner is dissatisfied with the newly determined unimproved land value of the property, they may only lodge an objection to the resultant rates assessment and not to the land tax assessment. If your objection to the rates assessment is successful and the unimproved land value is redetermined, the land tax assessment will automatically be recalculated based on the new average unimproved value.

Objections and Appeals

For further information please see Objections and Appeals.

Payments

• Staggered Billing
• Payment of Land Tax
• Where and How Can I Pay?
• What if I Can't Pay?
• What If I Don't Pay?
• Make an On-Line Payment  (This link will take you to the ACT Government On-Line payment site)

Staggered Billing

To ease pressure on payment centres and avoid the need for taxpayers to wait in queues for long periods to pay land tax accounts, the ACT has been divided into three sectors for billing purposes. Assessments have different issue and due dates, depending on the suburb in which a property is located. The due dates for payment of your land tax are specified on your assessment notice.

Payment of Land Tax

The same staggered billing arrangements which apply to rates also apply to land tax. Quarterly land tax assessments are sent out with the same due dates for payment as rates instalments for a property. The amount of land tax payable and payment details are specified on the quarterly land tax assessment notice.

What if I Can't Pay?

If you are experiencing difficulties in meeting your land tax payments, please Contact Us immediately to arrange alternative payment arrangements.

What If I Don't Pay?

If payment of land tax is not received by the due date you will be liable for interest, charged and compounding on a monthly basis, on any amount that remains unpaid. Compounding interest charges, that may be subject to change during the year, are calculated and imposed on unpaid amounts on the 16th day of each month. 

Certificate of Rates, Land Tax and Other Charges

Following the lodgment of an application together with the determined fee (currently $38 per property), the ACT Revenue Office will issue a Certificate of Rates, Land Tax and Other Charges to the applicant. The applicant must complete the declaration stating that the certificate is to be used for conveyancing purposes only.

Applications for a Certificate of Rates, Land Tax and Other Charges can be lodged and paid for:

• online through the Canberra Connect Web Site (Canberra Connect );
• at the counter at the Customer Service Centre (Plaza Level, Canberra Nara Centre); or
• by post (PO Box 293 Civic Square ACT 2608).

The Certificate will enable the applicant to calculate the amount of Rates, Land Tax and Other Charges to be allowed for at settlement of a property transfer. Please note that it is not the responsibility of the ACT Revenue Office to calculate settlement balances and that any monies owing following settlement and transfer of a property are the responsibility of the new owner/s.

The certificate can be delivered to the applicant by facsimile, post, Document Exchange (DX) or held for collection from the Customer Service Centre (Plaza Level, Canberra Nara Centre).

Application for Certificate of Rates, Land Tax and Other Charges

• Online Application
• Manual Application  (51Kb)

Online Application

Application for Certificate of Rates, Land Tax and Other Charges can be lodged and paid for at the Canberra Connect Web Site (Canberra Connect ). The determined fee (currently $38 per property) can be paid by credit card (Visa and Mastercard only).

Manual Application Form

Applicants not wishing to use the online facility can print an Application for Certificate of Rates, Land Tax and Other Charges  (51Kb) and lodge it, along with the determined fee (currently $38 per property) either:

• in person at the

ACT Revenue Office Customer Service Centre
Plaza Level, Canberra Nara Centre
Corner London Circuit and Constitution Avenue - Entrance on London Circuit
Canberra City

OR

• by post to

ACT Revenue Office
PO Box 293
Civic Square ACT 2608

You may also obtain an Application for Certificate of Rates, Land Tax and Other Charges from the ACT Revenue Office Customer Service Centre.