What are land tax investigations?
Learn how Revenue NSW conducts investigations to ensure landowners pay the correct amount of land tax and what to expect if you are investigated.
Last updated: 30 May 2025
One of the ways Revenue NSW ensures compliance with land tax laws is by conducting investigations.
We use investigations to:
identify landowners who are liable for land tax identify foreign persons who are liable for surcharge land tax , and ensure the correct application of exemptions for land tax and surcharge land tax. We generally investigate land tax compliance issues over the past 5 years.
Our investigations also help us understand customer needs and how land tax policy or legislation can be improved.
How landowners are selected for investigation Landowners who are liable for land tax in NSW must keep their contact and property details up to date with Revenue NSW.
To ensure our data is current, Revenue NSW works with other government agencies to monitor changes in:
land ownership and usage, and the Australian residence of foreign persons (including permanent residents). We compare information from other government agencies with the information provided to us by landowners.
We will start an investigation when information from different sources is inconsistent.
This includes, but is not limited to, a landowner:
providing incorrect information failing to update contact details for land tax purposes receiving a land tax exemption when ineligible, and/or receiving multiple thresholds. Common errors that lead to investigations Common errors include:
Report tax evasion
Tax evasion affects all of us because it deprives the NSW government of the funds it needs to provide vital services such as education, healthcare and infrastructure.
If you know or suspect a person or a business is not complying with their land tax obligations, you can make a report by sending an email to [email protected]
How landowners are informed of an investigation We will send you a notice of investigation letter that:
formally confirms that an investigation has begun tells you what information we need from you and how to provide it, and when the requested information needs to be provided. If you have any questions, contact your case officer.
Your case officer’s contact details are on the notice of investigation letter.
What you need to do When you receive the letter, we expect you to:
respond to the notice of investigation by the due date on the letter provide timely and accurate responses provide the documentation and information requested in the letter be honest if you think you have made a mistake with your land tax obligations, and be courteous and respectful to your case officer. Read how to respond to a notice of investigation letter .
What happens during an investigation We understand land tax laws can be complex and errors may occur.
During our investigation we will help you understand your land tax obligations.
The case officer will review the information you have provided.
We may request more supporting information, and/or set up a meeting with you to:
clarify information discuss any issues, and give you an opportunity to provide more information before the conclusion of the investigation.
What to expect from Revenue NSW During an investigation you can expect that we:
clearly explain why you have been selected for an investigation and what we need from you listen to your needs and understand your situation give you an opportunity to provide additional information provide reasonable timelines for you to respond to our request for information handle your information securely and protect your privacy provide timely responses have case officers available for you to speak to help you understand your land tax obligations, and explain the outcome of the investigation. Read the Revenue NSW customer commitments .
What happens after an investigation An investigation may result in:
No further action – no errors are found Assessment notice issued – errors have been identified resulting in a change of tax payable (may increase or decrease) Assessment notice issued with a refund due – an overpayment has occurred resulting in a refund. We will then send you correspondence outlining the outcome of the investigation.
Paying your assessment notice Payment is due 60 days after the issue date of an assessment notice.
Read more about how to pay land tax , including setting up interest-free payment plans.
If you are due a refund, read how to request a refund in Land Tax Online .
Interest and penalties The Taxation Administration Act 1996
keep their contact and land details up to date by lodging a return, and/or pay the correct amount of land tax on time. The amount of these charges will depend on the outcome of the investigation and the circumstances of any tax shortfall.
For more details read interest and penalty tax .
Objections and reviews If you believe the land tax legislation has been incorrectly applied, you can lodge a formal objection with Revenue NSW.
Read how to lodge a land tax objection for more details.
Voluntary disclosures A voluntary disclosure is when a customer informs Revenue NSW of an error in their land tax assessment.
To voluntarily disclose an error, you need to update your land tax details (lodge a return) in Land Tax Online. This includes removing or adding any exemptions or concessions .
An error might mean:
your land tax liability is removed you need to pay more land tax and/or surcharge land tax , or you are eligible for a refund or credit. When to submit a voluntary disclosure You should voluntarily disclose any errors that have been made as soon as you become aware of them.
If you make a voluntary disclosure before 31 March or by the due date on your assessment notice, you will not be charged interest and penalty tax .
If you wait until an investigation has commenced, you may be charged interest and penalties on top of any land tax and/or surcharge land tax you owe.
Contact us If you are currently being investigated, contact your assigned Revenue NSW case officer. Their contact details are on your notice.
If you have a general question about our compliance activities, contact the land tax team .
