How am I impacted by the changes?
We outline the recent changes from Revenue SA about the Land Tax reform, however, only some owners will be impacted by the changes. Read below to find out what changes may apply to you.
Revenue SA has been sending out Land Tax Letters which you may have received. These letters are part of the Land Tax reform from 30 June 2020. The Land tax reform has changed how Revenue SA calculates the Land Tax for each property held.
The letter sent out by Revenue SA requests the recipient to log onto the Revenue site to confirm the details land holdings and if you have a trust which holds land, you may have to provide a nomination for the beneficiary of the trust. These requests are not a legal requirement, but we have been recommending that this request be followed.
There is an action by date on the front of the letter, but this date is not a due date. Revenue SA needs to be notified of a trust which holds land by 31 July 2020 whereas the nomination of the beneficiary can be completed by 30 June 2021.
The reform has changed the way that Revenue SA will calculate the Land Tax on the land that is held. As part of the new method of calculating the tax, land which is held under multiple structures will be aggregated to the individual who owns the land. This means that if you own land in your own name and land in joint names, you will be liable for the land tax for the land value of 100% of your own land and 50% of the joint land.
The general Land Tax rate is calculated on Land value above $450,000. The Trust Land Tax rate is calculated on land value above $25,000. The trust land tax rate is used to calculate the Land tax when a nomination for a beneficiary has not been submitted or the land was acquired after midnight 16 October 2019. Any land purchased after midnight 16 October 2019 will be liable to pay land tax on any land value above $25,000.
Please find below the individual and Trust rates for Land Tax;
Trust Land Tax Rates
| Total Taxable Site Value | Amount of Tax |
| Does not exceed $25 000 | Nil |
| Exceeds $25 000 but not $450 000 | $125 + $0.50 for every $100 or part of $100 above $25 000 |
| Exceeds $450 000 but not $723 000 | $2250.00 plus $1.00 for every $100 or part of $100 above $450 000 |
| Exceeds $723 000 but not $1 052 000 | $4980.00 plus $1.75 for every $100 or part of $100 above $723 000 |
| Exceeds $1 052 000 but not $1 350 000 | $10 737.50 plus $2.40 for every $100 or part of $100 above $1 052 000 |
| Exceeds $1 350 000 | $17 899.50 plus $2.40 for every $100 or part of $100 above $1 350 000 |
Individual Land Tax Rates
| Total Taxable Site Value | Amount of Tax |
| Does not exceeds $450 000 | Nil |
| Exceeds $450 000 but not $723 000 | $0.50 for every $100 or part of $100 above $450 000 |
| Exceeds $723 000 but not $1 052 000 | $1365.00 plus $1.25 for every $100 or part of $100 above $723 000 |
| Exceeds $1 052 000 but not $1 350 000 | $5477.50 plus $2.00 for every $100 or part of $100 above $1 052 000 |
| Exceeds $1 350 000 | $11 437.50 plus $2.40 for every $100 or part of $100 above $1 350 000 |
As part of the land Tax Reforms the Valuer-General will revalue the land in South Australia. It has been suggested that most of the land has been undervalued. This will mean there may be an increase in the value of the land for the Land Tax calculations.
For more information or if you have any questions about your personal situation, contact our office on (08) 8172 9150 or email our friendly team today!
