Land value taxation history in the Australia dating back from Henry George [note 1] and Graham Berry [note 2]. Each Australian state has different laws of land tax. [4] [5]
South Australia was the first Australian state to introduce a land tax, based on the unimproved capital value of land, in 1884. [6] [7] In 1910, George Allen (first secretary to the Treasury) founded the Land Tax Office to service land taxes at the federal level as a form of wealth tax and as a means to break up large tracts of underutilised land. [6] [8] [7] Over time, the productivity base of the economy diversified from being mostly agrarian at the beginning of the 20th century, but wealth was held in more diverse forms and therefore federal land taxes were already ineffective. Federal land taxes were imposed until 30 June 1952, but still operate at the state/local level. [6] [7]
Land tax is generally levied on the unimproved capital value of the land (not the total property value). This is assessed every year. [4] [5] [9]
Land taxes in Australia are levied by the states, and generally apply to land holdings only within a particular state. The exemption thresholds (land tax will become payable at this dollar value) vary, as do the tax rates and other rules. Most Australians do not pay land tax, as most states provide a land tax exemption for the primary home or residence. [5] [4]
State | The laws of land tax | Other details | Refs |
---|---|---|---|
The state land tax exempts farmland and principal residences and there is a tax threshold. | Determination of land value for tax purposes is the responsibility of the Valuer-General. | [10] | |
The land tax threshold is $250,000 on the total value of all Victorian property owned by a person as at 31 December of each year, and taxed at a progressive rate. The principal residence, primary production land and land used by a charity are exempt from land tax. | — |
[11] | |
The threshold is $25,000 and the date of audit is 1 July. Between $25,000 and $350,000 the tax rate is 0.55% and over $350,000 it is 1.5%. | — |
[12] | |
The threshold for individuals is $600,000 and $350,000 for other entities. The date of audit is 30 June. | — |
[13] | |
The threshold is $332,000, taxed at a progressive rate. The date of audit is 30 June. | — |
[14] |
By revenue, property taxes represent 4.5% of total taxation in Australia. [15] A government report [16] in 1986 for Brisbane, Queensland advocated a land tax.
The Henry Tax Review of 2010 commissioned by the federal government recommended that state governments replace stamp duty with land value tax. The review proposed multiple marginal rates and that most agricultural land would be in the lowest band with a zero rate. Only the ACT moved to adopt this system and planned to reduce stamp duty by 5% and raise land tax by 5% for each of 20 years.
The difference between land tax and stamp duty is that the stamp duty is charged by state/territory governments on transactions like buying property and the land tax is charged by most state/territory governments on land you own.
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Land value taxation history in the Australia dating back from Henry George [note 1] and Graham Berry [note 2]. Each Australian state has different laws of land tax. [4] [5]
South Australia was the first Australian state to introduce a land tax, based on the unimproved capital value of land, in 1884. [6] [7] In 1910, George Allen (first secretary to the Treasury) founded the Land Tax Office to service land taxes at the federal level as a form of wealth tax and as a means to break up large tracts of underutilised land. [6] [8] [7] Over time, the productivity base of the economy diversified from being mostly agrarian at the beginning of the 20th century, but wealth was held in more diverse forms and therefore federal land taxes were already ineffective. Federal land taxes were imposed until 30 June 1952, but still operate at the state/local level. [6] [7]
Land tax is generally levied on the unimproved capital value of the land (not the total property value). This is assessed every year. [4] [5] [9]
Land taxes in Australia are levied by the states, and generally apply to land holdings only within a particular state. The exemption thresholds (land tax will become payable at this dollar value) vary, as do the tax rates and other rules. Most Australians do not pay land tax, as most states provide a land tax exemption for the primary home or residence. [5] [4]
State | The laws of land tax | Other details | Refs |
---|---|---|---|
The state land tax exempts farmland and principal residences and there is a tax threshold. | Determination of land value for tax purposes is the responsibility of the Valuer-General. | [10] | |
The land tax threshold is $250,000 on the total value of all Victorian property owned by a person as at 31 December of each year, and taxed at a progressive rate. The principal residence, primary production land and land used by a charity are exempt from land tax. | — |
[11] | |
The threshold is $25,000 and the date of audit is 1 July. Between $25,000 and $350,000 the tax rate is 0.55% and over $350,000 it is 1.5%. | — |
[12] | |
The threshold for individuals is $600,000 and $350,000 for other entities. The date of audit is 30 June. | — |
[13] | |
The threshold is $332,000, taxed at a progressive rate. The date of audit is 30 June. | — |
[14] |
By revenue, property taxes represent 4.5% of total taxation in Australia. [15] A government report [16] in 1986 for Brisbane, Queensland advocated a land tax.
The Henry Tax Review of 2010 commissioned by the federal government recommended that state governments replace stamp duty with land value tax. The review proposed multiple marginal rates and that most agricultural land would be in the lowest band with a zero rate. Only the ACT moved to adopt this system and planned to reduce stamp duty by 5% and raise land tax by 5% for each of 20 years.
The difference between land tax and stamp duty is that the stamp duty is charged by state/territory governments on transactions like buying property and the land tax is charged by most state/territory governments on land you own.
{{
cite web}}
: CS1 maint: archived copy as title (
link)
{{
cite web}}
: CS1 maint: multiple names: authors list (
link)
{{
cite web}}
: CS1 maint: archived copy as title (
link)
{{
cite journal}}
: Cite journal requires |journal=
(
help)