SOUTH AUSTRALIA – LAND TAX

A GUIDE TO LEGISLATION LAND TAX ACT, 1936
OUTLINE OF LAND TAX SYSTEM

Land tax together with an income tax was first introduced in South Australia under the Taxation Act of 1884. They were new taxes in aid of the general revenue of the State. Land tax is now levied under the Land Tax Act, 1936. It is part of the general revenue of the State and as such is applied towards financing the costs of the Government including the
provision of education, policy, social and other services for which no direct charges are made.

METHOD OF ASSESSMENT

Information for the assessment of land tax is derived mainly from records maintained by the Valuer-General’s Office by way of a computer system. These records contained the identity of the land, its ownership, use and site valuation. Information by annual returns from land owners as applies in some other States is not required in South Australia. However, changes in ownership of land must be notified in certain circumstances and also changes of address for the service notices.

Land tax is billed by a computer system which is linked with the Land Ownership and Tenure system to obtain alterations in the data maintained by the Valuer-General. Accounts for payment describe the land being taxed, however in some cases descriptions are abridged for reason of space. The land assessed is also identified by an Assessment Number which is the same as the Valuation Number allocated by the Valuer-General for valuation purposes. Under the valuation of Land Act the Valuer -General may, in his discretion, make a separate valuation of any portion of any land or may value any land conjointly with other land. This does not mean however that this valuation will necessarily be treated as a legal parcel of land for land tax purposes.

BASIS OF THE TAX

Land tax is calculated on the basis of determinations of the site value of land in force under the Valuation of Land Act at midnight 30 June preceding the financial year for which the tax is levied. The meaning of ‘site value’ is defined in the Valuation of Land Act. in broad terms it means the market value of the land disregarding the value of any buildings or other improvements thereon.

DETERMINATION OF SITE VALUE

The Valuation of Land Act requires the Valuer-General to make new general valuations within each area of the State at least once in every five years. an area for the purpose is usually a municipality or a district council area.

A general valuation involves the determination of site value and other forms of land value as may be required by the different rating and taxing authorities. At present, it is the practice of the Valuer-General to have revaluations made each year. This has made possible since the introduction of computer assisted valuations in 1986.

Separate notices of determination of site value are no longer issued by the Valuer-General’s Office. Owners are now notified of these values on accounts issued by the Taxing Authorities. A person who is dissatisfied with the valuation of land may object to the Valuer-General, either personally or by post. Such objection must contain a full and detailed statement of the grounds on which the objection is based.