From the 2020-21 financial year, changes apply to how land tax is assessed for owners who own land in multiple ownerships.
If you own land with different persons or corporations, and land tax applies, you may receive more than one Notice of Assessment for Land Tax (“Assessment”).
An ownership consists of all the land owned by the same registered owner(s). This could be one or more persons, trusts or corporations.
The registered owner(s) of land are those who are registered on the Certificate of Title.
An ownership may contain one parcel of land or multiple properties, depending on how many properties the registered owner(s) own.
Where there is only one registered owner on the Certificate of Title.
Where there are two or more registered owners on the Certificate of Title.
What has changed for the assessment of land tax from 2020-21?
There are no changes to how land tax is assessed and the owner may see a reduction in land tax payable due to the threshold increase and rate reductions.
This applies for both individual ownerships and joint ownerships, as long the owner(s) do not own land in another ownership.
If the combined taxable site value for their land does not exceed $450 000 you will not receive an assessment.
However, land held on trust is taxed differently to other land. Please see Trusts for more information on the minimum threshold and tax rates.
Daisy owns land that she uses for rental purposes. She does not own any other land.
If this land is above the threshold, it will be assessed for land tax under Daisy's ownership – there is no change to how her land tax is assessed.
Jack and Daisy own land together, they own a unit and a house that are both used for rental purposes. They do not own any other land.
If the combined site value of the land is above the threshold, the land will be assessed for land tax under Jack and Daisy’s joint ownership – there is no change to how their land tax is assessed.
Any taxable land you own jointly with other people will firstly be assessed in the joint ownership and an Assessment will be issued.
There is no change to how the land tax is calculated in the joint assessment:
Poppy and Sarah own two pieces of land together, as follows:
They each have a 50% interest in the land.
Land tax for the joint ownership will be assessed on the combined site value of $550 000.
Your share of jointly owned land will also be combined with the site values of any land you own as an individual to calculate land tax payable.
In addition to the land in example 3, Poppy also owns a piece of land with a site value of $300 000. Her land tax for her individual ownership will be assessed as follows:
Land tax for the individual ownership will be assessed on the combined site value of $575 000.
A deduction will also be applied to your individual Assessment, which relates to the proportion of land tax assessed for your share in the joint ownership. If there was no land tax liability in the joint ownership (e.g. combined site value was below the threshold) no deduction will apply.
The land tax assessed in the joint ownership (Poppy and Sarah) on a combined site value of $550 000 is $500*.
Poppy’s individual Assessment will show:
*these are calculated on the estimated land tax rates for 2020-21, actual rates will not be available until the average percentage change in site values has been determined by the Valuer-General.
If you own the land as tenants in common, we will assess you on your share of the land, as specified on the Certificate of Title.
If you own the land as joint tenants, we will assume you own an equal share in the land as all the other owners.
If you own land in your own right, and your spouse or domestic partner also owns land in their own right, this land will not be combined together.
Taxpayers can obtain information regarding their ownership of land through the South Australian Integrated Land Information System (SAILIS), website www.sailis.sa.gov.au.
The deduction is equivalent to the land tax assessed on land in a joint ownership in proportion to your share of ownership.
Joe owns land with Moe (each have an interest of 50%) and also land on his own.
Total land tax assessed on the jointly owned land is $2500: 50% of which is $1250.
Joe’s individual Assessment will reflect a deduction of $1250.
This deduction is taken off your entire individual liability. This means the deduction reduces your overall tax liability on your individual Assessment, even where your individual liability is created because of other land you own.
If your deduction is greater than your individual Assessment, your individual liability reduces to zero and you may not be issued with an individual Assessment.
If you own land that is ‘excepted’ or ‘exempted’ from land tax, it will not be included in the taxable value of any other land you own for the purposes of assessing land tax.
Land that is exempt from land tax is not included in the assessment for joint or individual owners’ assessments.
Find out more about land tax exemptions.
The ownership of land held on trust is treated differently and may be assessed with a different rate of land tax.
View the Trust page for more information about how trusts are assessed for land tax.