Reducing Land Tax

February 26, 2023

There are several ways to potentially reduce land tax, which is a tax levied by state governments in Australia on the value of land owned.

  1. Take advantage of exemptions and concessions: Each state has different land tax exemptions and concessions available, such as owner-occupier exemptions or primary production land exemptions. Review the eligibility criteria for these exemptions and apply for them if you qualify.
  2. Consider transferring ownership: If you own land with others, transferring ownership to a different ownership structure, such as a family trust or company, may potentially reduce the amount of land tax paid. However, it’s important to seek professional advice before making any decisions as there may be legal and tax implications.
  3. Review property valuations: Check that the valuation of your land is accurate as higher valuations can result in higher land tax. If you believe the valuation is incorrect, you may be able to appeal it.
  4. Sell or develop the land: If the land is vacant, selling or developing it may potentially reduce the amount of land tax paid. However, this option may not be suitable for everyone and should be considered carefully.
  5. Consult with a professional: Seeking advice from a qualified accountant or property lawyer who specializes in land tax can help you identify potential tax savings opportunities and develop a strategy to reduce land tax.

It’s important to note that land tax laws and regulations vary between states and can change over time, so it’s important to stay up-to-date and seek professional advice before making any decisions.