Skip to main content Skip to home page

If you own land with others, you are a joint owner. We assess joint owners for land tax in two stages.

Stage 1 — Joint ownership assessment

We assess all of the joint owners together on all of their jointly owned land as though they were one person. Each unique combination of owners is considered a unique joint ownership, so if you own property with different people, you may receive more than one joint ownership assessment.

Stage 2 — Individual assessment

We assess you individually on all the taxable lands you own in any capacity, including your interest in any jointly owned land. If you are assessed for tax on the jointly owned land under a joint ownership assessment, we apply a deduction to your individual assessment.

In certain situations, jointly owned land does not attract land tax so we do not issue an assessment, including where:

  • all jointly owned land is exempt from land tax
  • the jointly owned land is used by one or more of the owners as their home, also known as principal place of residence (PPR)
  • the total value of the jointly owned taxable land is under the taxable threshold.

You may, however, be liable for tax on these properties in your individual assessment. If this is the case, you will not receive a joint ownership deduction because your jointly owned property has not been subject to land tax in a joint ownership assessment. 

Land tax and joint owners

Here are examples of how land tax is assessed where:

Example X: Jointly owned land under the taxable threshold

  • At midnight on 31 December of the preceding tax year, Mr Wood and Ms Lee each owned 50% of Property A, an investment property with a taxable value of $100,000.
  • Ms Lee also owns one other property in her own name, Property B, an investment property with a taxable value of $275,000.

Joint ownership assessment

As the taxable value of Property A is under the taxable threshold, Mr Wood and Ms Lee do not receive a joint ownership assessment for the property.

Individual assessment of Mr Wood

Mr Wood does not own any other land so his total taxable landholdings are under the taxable threshold. This means he does not receive an individual assessment.

Individual assessment of Ms Lee

  • Ms Lee receives an individual assessment for all the taxable land she owns, , being her share of Property A ($50,000) and all of Property B ($275,000) because the total taxable value of her land holdings is over the taxable threshold of $300,000.
  • As no joint ownership assessment was issued for Property A, there is no need to calculate a joint ownership deduction for Ms Lee.
  • Ms Lee is just assessed for tax on all the property she owns by calculating the:
  1. Total value of her taxable land holdings
  2. Tax payable on her total land holdings.

Calculating the total taxable value of Ms Lee’s land holdings

  • Property B, which Ms Lee owns by herself, is valued at $275,000.
  • The value of Ms Lee’s interest in Property A,  being 50% of $100,000.
  • Accordingly, the total value of Ms Lee’s taxable land holdings is $325,000 ($275,000 + $50,000).

Calculating the tax payable on Ms Lee’s total landholdings

  • The general land tax rate for land holdings valued from $300,000 to less than $600,000 is $375 + 0.2% of the amount greater than $300,000.
  • The land tax payable by Ms Lee is $425, being $375 + (($340,000 - $300,000) x 0.2% = $50)).
  • She does not receive a joint ownership deduction for Property A because the joint ownership was not assessed for tax on this property.

Example Z: Jointly owned land used as a principal place of residence

  • At midnight on 31 December of the preceding tax year, Mr Wood and Ms Lee each owned 50% of Property C, with a taxable value of $340,000.
  • Property C is an investment property for Ms Lee, but Mr Wood lives in this property and uses it as his PPR.
  • Ms Lee also owns one other property in her own name, Property D, an investment property with a taxable value of $200,000.

Joint ownership assessment

As Property C is Mr Wood’s PPR, it is exempt from land tax so no joint ownership assessment is issued.

Individual assessment of Mr Wood

Mr Wood does not own any other land and as Property C is exempt,  he does not receive an individual assessment.

Individual assessment of Ms Lee

  • Ms Lee receives an individual assessment for all taxable land she owns, which is her share of Property C and all of Property D.
  • As no joint ownership assessment was issued for Property C, there is no need to calculate a joint ownership deduction for Ms Lee.
  • Ms Lee is just assessed for tax on all of the property she owns by calculating the:
  1. Total taxable value of her landholdings
  2. Tax payable on her total landholdings.

Calculating the total taxable value of Ms Lee’s landholdings

  • Property D which Ms Lee owns by herself is valued at $200,000.
  • The value of Ms Lee’s interest in Property C, is $170,000, being 50% of $340,000.
  • Accordingly, the total value of Ms Lee’s land holdings is $370,000 ($200,000 + $170,000).

Calculating the tax payable on Ms Lee’s total landholdings

  • The general land tax rate for land holdings valued from $300,000 to less than $600,000 is $375 + 0.2% of the amount greater than $300,000.
  • The land tax payable by Ms Lee is $515, being $375+ (($370,000 - $300,000) x 0.2% = $140).
  • She does not receive a joint ownership deduction for Property C because the joint ownership was not assessed for tax on this property.
Last modified: 17 February 2022

wrapper

Take a moment to tell us why. If you'd like a response to your feedback, please contact us online instead.
Back to top