Relevant unimproved value for land tax

The ‘relevant unimproved value’ for a financial year is the lesser of the:

• averaged unimproved value of the land as of 30 June
• unimproved value of the land that applies as of 30 June
• the capped value of the land for the relevant year.  

The ‘capped value’ is 150% of the relevant unimproved value of the land as of the previous 30 June. Capping applies from 1 July 2007 until the end of the 2010 financial year.

The averaged unimproved value of land is:

• the averaged unimproved value for the current and previous 2 financial years

or

• if the unimproved values for 3 financial years are not available, then the current year's unimproved value is multiplied by an averaging factor (see below).
  

Capping for the relevant years only applies if the:

• land is not subdivided land that qualifies for the 40% discounting on unimproved value under section 3CA of the Land Tax Act 1915 
• land is not newly created parcels of freehold land that do not have an unimproved value for the previous 30 June
• lesser of the unimproved value or averaged unimproved value is more than 150% of the relevant unimproved value of the land for the previous 30 June.