Land tax is calculated on the taxable value of the land owned. The ‘taxable value’ for a financial year is the lesser of the:
- LVA value of the land that applies as of 30 June
- averaged value of the land as of 30 June
- capped value of the land for the relevant year.
LVA value
The LVA value is:
- determined by the Department of Natural Resources and Mines (DNRM)
- the value applied to the land under the Land Valuation Act 2010 (LVA).
As the LVA value of land is determined by DNRM, you should contact DNRM if you would like more information, or you think the value is wrong.
Averaged value
The averaged value of land is:
- the averaged LVA value for the current and previous 2 financial years
or
- if the LVA values for 3 financial years are not available, then the current year's LVA value is multiplied by an averaging factor.
See section 18 of the Land Tax Act 2010 for more information on the meaning of 'averaged value' and 'averaging factor'.
Capped value
The ‘capped value’ is 150% of the taxable value of the land as of the previous 30 June.
Capping of the taxable value of land for the 2011–12 financial year only applies if the:
- land is not subdivided land that qualifies for the 40% discounting on the LVA value under section 30 of the Land Tax Act 2010
- land is not newly created parcels of freehold land that do not have a LVA value for the previous 30 June
- lesser of the LVA value or averaged value is more than 150% of the taxable value of the land for the previous 30 June.
