Why land is valued and what it's used for

Council rates

At least once every three years, the Valuer General provides land values to local councils in NSW.

Councils use land values to help distribute rates across their local government areas. Rates are annual or regular charges that landowners pay to councils. They are used to fund local services and infrastructure.

The Valuer General issues new land values to councils for rating at least every three years in line with the Valuation of Land Act 1916. See How often we provide values (below) for how this is timed.

Land values influence but don't determine the rates

• The Valuer General does not set rates for councils – even though those rates are influenced by the land value.
• A change in land value does therefore not necessarily lead to a change in rates.
• A council can choose the combination of rates, charges and fees and pricing policies that are appropriate for its area and community.
• Calculating rates and taxes based on the relative value of land on each property promotes equity between landholders.

To learn more about how your rates are calculated, please see Public - Office of Local Government NSW and Contact your local council.

How often we supply values to councils for rating

The Valuer General gives councils new land values at least every three years. Councils generally start using those land values for rating in the following year. For example, councils will use the 1 July 2022 land values for rating from July 2023.

Can you see your land value before your rates are set?

The Valuer General will send you a Notice of Valuation when your council receives new values.

The Notice of Valuation gives you the chance to consider your land value before your council sets your rates.

Video on how land values affect local rates

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Video transcript

How does my land value affect my council rates?

The Valuer General provides land values to every council in NSW at least once every three years.

These values are used by each council to help them calculate council rates.

The Valuer General does not set rates for councils.

A council can choose the combination of rates, charges, fees, and pricing appropriate for their area and community.

 

Rates are generally calculated in two parts:

1. A base charge, which is the same amount for every landowner in your local government area; 
2. A variable charge known as Ad Valorem, which is your land value multiplied by a rate in the dollar set by councils.

If your land value increases, it doesn't necessarily mean your rates will rise.

Council rate increases are based on each council's rating structure and increase limits are set by the Independent Pricing and Regulatory Tribunal (IPART).

 

For further information on how your rates are set, contact your local council.

Land tax

Each year, the Valuer General provides annual land values to Revenue NSW

Revenue NSW uses the land values to assess and collect land tax. This includes issuing a notice of assessment to certain landholders.

Visit Revenue NSW to find out more about which landholders need to pay land tax. You may be liable to pay land tax if:

• you own one or more parcels of taxable land, such as investment properties, holiday houses or commercial premises
• the total value of this land exceeds the current land tax threshold.

If you are a foreign person and own residential land in NSW, you must also pay a land tax surcharge.

You generally do not have to pay land tax on:

• your principal place of residence
• land used for primary production.

See Revenue NSW for details.

Valuer General's role is to provide the land values

The Valuer General's role in this process is to:

• Provide annual land values to Revenue NSW for tax calculation.
• Calculate the land tax threshold published in the NSW Government Gazette every December.
• Adjust the threshold based on annual movement in average land values across different zones in NSW.
• Follow the methodology outlined in Division 4A of the Land Tax Management Act 1956 for threshold calculations.

Video on how land values affect land tax

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Video transcript

How does my land value affect my land tax?

Every year, the Valuer General sends land values to Revenue NSW to help them calculate land tax.

The taxable value of land is determined on the average value of the land from the current year, and the previous two years, where applicable.

 

When a parcel of land is less than three years old, for example, through a subdivision, Revenue NSW only considers the years after it was created.

 

If you are liable for land tax, you will receive an Annual Assessment Notice from Revenue NSW which shows your land value and how much land tax you must pay.

Landowners can request an independent review of their land value by lodging an objection within 60 days from the date of issue of their notice.

 

For further information on land taxes, visit revenue.nsw.gov.au

For more information on land valuations visit valuergeneral.nsw.gov.au

Fairness and accuracy

Calculating rates and taxes based on the relative value of land on each property promotes equity between property owners.

The Valuer General's independence guarantees an impartial land valuation process, separate from how state and local governments use these valuations for setting rates and taxes.

To find out more about fairness and accuracy in land valuations see How we value land and About the Valuer General and Valuation NSW.

For more information

• How we value land
• Land values in NSW