What is duty and land tax?
Both duty and land tax are State/Territory-based imposts.
Duty is generally levied on the transfer of dutiable property (which includes land in the relevant jurisdiction unless specifically exempted) and is levied on the transferee.
Duty is charged on an ad valorem (by value) basis at progressive rates which vary by jurisdiction.
Land tax is levied on all land owned in the relevant jurisdiction as at a particular time/date unless exempted.
In New South Wales, it is triggered at midnight on 31 December each year and is generally $100 + 1.6% of the unimproved value of the relevant land (calculated on a rolling 3-year basis).
Surcharge duty and land tax regimes
In addition to the general duty and land tax regimes, various States/Territories have surcharge duty and/or land tax regimes for foreign persons.
Broadly, a foreign person does not mean a foreign tax resident for income tax purposes but, with limited exceptions in certain jurisdictions, anyone other than:
- Australian citizens; and
- permanent residents or New Zealand citizens in Australia on a special category visa provided that either spends at least 200 days a year in Australia.