Getting ready for the Land Tax year of 2024

Stay ahead of the 2024 Land Tax changes with our comprehensive guide, including updated thresholds, payment options, and key updates on principal place of residence exemptions. Nicholas Falzon | Director | Business Advisory Services

To gear up for the Land Tax year of 2024, we’ve put together key information that might prove helpful.

The Land Tax rate and thresholds for 2024 are subject to change annually. Previously, the Land Tax thresholds were officially announced on 15 October each year, however, recent legislative amendments have shifted this process, and starting from now, the Land Tax thresholds will be disclosed in the Government Gazette on the first Friday of December each year. Specifically, the 2024 Land Tax thresholds were published on Friday, 1 December 2023.

It’s important to note that Land Tax is applicable for the entire year following the taxing date of 31 December, with no pro-rata calculation being applied. 

So, are there new payment options for my Land Tax assessments? 

Yes! The new payment options for the 2024 NSW Land Tax assessments allow taxpayers to either make a discounted full payment or establish an interestfree payment installment plan lasting up to nine months. 

The payment choices include:

1. Extension of the initial notice of assessment due date from 40 days to 60 days.
2. Expansion of payment plan options from six months to nine months.
3. Clear delineation of payment options on the updated notice of assessment.
4. Introduction of SMS and email payment reminders.
5. The payment options are detailed in the 2024 NSW Land Tax Assessment Notice. 

Buying or selling a property?

Land Tax notice of assessment 

Issuance of the 2024 Land Tax notice of assessment commenced on Wednesday, 3 January 2024. If you decide to request an early issuance of your notice of assessment and/or need to make changes to your land holdings, such as updating your principal place of residency exemption, please follow these steps:

1. Log in to your MyServiceNSW account.
2. Update your Land Tax details.
3. Enter the property settlement date.

Land Tax clearance certificate – Section 47

To request a 2024 Section 47 Land Tax clearance certificate, you are now able to contact Revenue NSW Client Service Providers. Ensure that requests are made post-scheduling settlement and anticipate processing times of up to 10 business days.

At settlement, provide the purchaser with one of the following documents:

1. Section 47 Land Tax clearance certificate (vendor or purchaser copy) indicating a charge.
2. Copy of a notice of assessment (if the due date hasn’t passed).
3. If the notice of assessment due date has passed, provide the Amount to Clear (ATC) or clearance quote. 

Upon payment of the amount indicated on any of these documents, the charge on the land will be considered removed.

Important note: Obtaining a clear clearance certificate does not exempt the vendor from existing or potential future liabilities; its purpose is to safeguard the interests
of the purchaser. 

Principal Place of Residence (PPR) exemption updates

Changes to the Land Tax Management Act (LTMA) 1956 now require individuals collectively using land as their principal place of residence (PPR) to have a minimum 25% ownership stake for the exemption. Those eligible before 31 January 2024, with less than a 25% interest, can claim an exemption for 2024 and 2025. The 25% ownership requirement starts in 2026. Owners acquiring property on or after 1 February 2024, without meeting this requirement become liable from the 2025 land tax year.