Relevant unimproved value
Land tax is assessed on the taxable value of an owner's land. The taxable value is the aggregate of the relevant unimproved value of all land owned less exemptions and deductions.
From 1 July 2007 a new initiative is introduced to cap the annual increases in the relevant unimproved value of each parcel of land, that is used to calculate the total taxable value of all land owned at midnight 30 June.
The relevant years when capping applies are the 2007-08, 2008-09 and 2009-10 financial years.
The capped value of the land for a relevant year is 150% of the relevant unimproved value of the land as at the previous 30 June. 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
- the land is not newly created parcels of freehold land which do not have an unimproved value for the previous 30 June; and
- the 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.
The relevant unimproved value for a financial year is:
- the capped value of the land for the relevant year; or
- the lesser of:
- the unimproved value of the land that applies as at 30 June (see Note below); or
- the averaged unimproved value of the land as at 30 June
The averaged unimproved value of land is:
- the averaged unimproved value for the current and previous two 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 Note below).
Note: The unimproved value of land for calculating land tax is determined by the Department of Natural Resources and Water (NRW) in March each year. For more information about land valuations, contact NRW on (07) 3896 3111 or log on to the Department of Natural Resources and Water website.
For further information on the meaning of "averaged unimproved value" and "averaging factor" refer to section 3AA of the Land Tax Act 1915.
