Land tax valuation: how your land value is assessed and how to object

Land tax is a state tax on the value of the land you own above a threshold, and it is calculated on the land value assessed by the Valuer General each year, not the price you paid or the value of the buildings. This guide explains how the land valuation for land tax works, how to read your valuation notice, and how to object if the figure looks too high.

Key takeaways

• Land tax is based on the land value, or site value, of your land, not the whole property.
• The Valuer General assesses this value each year, and it appears on your valuation notice.
• Your total taxable value is the combined taxable value of the land you own above the threshold.
• You can object to a land valuation you believe is too high, within the deadline.
• An independent valuation is strong evidence to support an objection.

What is a land tax valuation?

A land tax valuation is the land value used to work out your land tax. It is the value of the land itself, the site value, excluding buildings, fences and other improvements.

Each year the Valuer General determines this value from market evidence. In some states the figure is an average of the land value over recent years, which smooths out year-to-year swings.

How land tax is calculated

To calculate land tax, the revenue office adds up the taxable value of all the taxable land you own and applies the rate above the threshold; your main residence is usually exempt.

The taxable value comes straight from the land value on your assessment, so a higher land value means a higher total taxable value, and more tax for landowners.

Land value vs capital improved value

It helps to keep the terms straight. The land value, or site value, is just the land, while the capital improved value includes the buildings. Council rates may use either, depending on the state.

Land tax is based on the land value, which is why two similar homes can attract very different land tax if their land values differ.

Your valuation notice and land value search

Your land value appears on your land tax assessment notice, and often on a separate valuation notice. You can also check it yourself.

Most states offer a land value search, or search tool, where you enter your address or title reference to view current and past land values for your property.

How to object to your land valuation

If you disagree with the figure, you can lodge an objection, usually within a limited window from the date the notice is issued, so act promptly.

A strong objection is backed by evidence. An independent valuation of your land, showing a lower site value than the assessment, is one of the most persuasive things you can submit.

How Valato helps

Valato provides independent land valuations across Australia to support a land tax or council rates objection, with a defensible site value and the market evidence behind it.

If your land value looks too high, that gives you a real basis to object. Compare the valuation options or order a valuation, and check the objection rules with your state revenue office.

The bottom line

Land tax is calculated on the land value assessed by the Valuer General, not your whole property. If the land value on your notice looks too high against the market, lodge an objection supported by an independent valuation before the deadline.

Frequently asked questions

General information only: This article is general in nature and does not take into account your individual circumstances. It should not be relied on as tax, financial or legal advice. Land tax is state-based and the rules, thresholds and deadlines vary; confirm the current rules with your state revenue office or a qualified professional.