Land tax threshold and rates for absentees
You are an absentee for land tax if you are a foreign individual, you don’t hold a permanent visa, or you do not normally live in Australia.
Your liability for land tax is based on land you own at midnight 30 June each year.
The land tax rate depends on the type of owner you are.
For land tax, you are an absentee if all the following apply:
- you are a foreign individual (including New Zealand citizens)
- you do not hold a permanent visa
- you do not usually live in Australia.
Australian citizens and permanent visa holders are not deemed absentees.
Similar to other types of owner, you will be assessed only on the land you own, which includes the value of your share in any land owned with others.
If you are an absentee, you cannot claim a land tax home or primary production exemption.
Threshold
As an absentee, you are liable for land tax if the total taxable value of all your land—comprising land owned solely and your share in land owned jointly with others—is $350,000 or more.
The taxable value of your land is based on your annual land valuation issued by the Valuer-General.
Rates
The rates below apply to the total taxable value of land owned as at midnight 30 June by an absentee.
If you are an Australian citizen, permanent visa holder or usually live in Australia, the land tax rates for individuals will apply.
Surcharge
An absentee surcharge of 3% on taxable land valued at $350,000 or more applies in addition to the land tax rates.
This is how the surcharge is calculated: (Taxable value – $350,000) × 3%.
The absentee surcharge will appear on the land tax summary section of your assessment notice. It can also appear on reassessment notices, if charged.
| Total taxable value | Rate of tax |
|---|---|
| $0–$349,999 | $0 |
| $350,000–$2,249,999 | $1,450 plus 1.7 cents for each $1 more than $350,000 |
| $2,250,000–$4,999,999 | $33,750 plus 1.5 cents for each $1 more than $2,250,000 |
| $5,000,000–$9,999,999 | $75,000 plus 2.0 cents for each $1 more than $5,000,000 |
| $10,000,000 or more | $175,000 plus 2.5 cents for each $1 more than $10,000,000 |
Example
Total taxable value of $400,000
Tax band is $350,000–$2,249,999.
Tax calculation = $1,450 + (1.7 cents × $50,000 excess)
= $2,300
Add 3% absentee surcharge = $1,500
Tax payable = $3,800
Determining absentee status
We consider several factors to determine if you usually live in Australia, such as the reason for your absence and the time spent in and out of the country. As a non-Australian citizen who does not hold a permanent visa, you will be an absentee if you:
- were away from Australia at 30 June
- or
- have been away from Australia for more than 6 months in total during the financial year before 30 June.
If the total taxable value of your land exceeds $350,000, you must tell us within 1 month of the date you move overseas by completing an absentee/resident status declaration (Form LT16).
Change of resident status
You may have been assessed for land tax as an absentee because you lived or worked overseas. Your status may change if you become an Australian citizen or permanent visa holder, or if you start living in Australia after you have lived overseas.
Complete an absentee/resident status declaration (Form LT16) to update your status.
Based on your circumstances, we will then tell you if your resident status has changed for land tax purposes.
Example
Joshua owns land in Queensland but lives overseas. He is not an Australian citizen or permanent visa holder. Joshua will be assessed as an absentee for land tax.
If Joshua decides to move to Australia to live permanently, he will need to notify us of his change of residential status by lodging a Form LT16. If the taxable value of his land is $600,000 or more, he may be assessed at the individual rates of land tax rather than the absentee rates.
Working overseas
In limited cases, the land tax rates for individuals will continue to apply for foreign individuals working overseas. For this to apply, you must:
- be a public officer of the Commonwealth or of a state, who is absent in the performance of your duties
- or
- have been working for your employer in Australia for at least 1 continuous year before you go overseas, and are directed by that employer to continue working for them overseas for a period less than 5 years. If the period is longer, you will be reassessed as an absentee for the whole time you are overseas.
If you believe these arrangements apply to you, complete an absentee/resident status declaration (Form LT16) and include copies of your Australian and overseas employment contracts.
Similarly, if you have received the benefit of the above arrangements, complete a Form LT16 and send it to us within 28 days of:
- ceasing to work for your employer
- working overseas for more than 5 years (public officers excluded).
Interest and penalties may apply if you don’t tell us that your resident status has changed.