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Learn how land tax applies to NSW company title units. Understand the ownership structure and shareholder obligations and entitlements.
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Company titles overview
Company title
Company title is a property ownership structure where a single company holds the legal title to a property, including the land and any buildings on it, which typically consist of multiple units.
Company title unit
Company title unit refers to a specific unit (e.g. an apartment) within a company title building. When buying a company title unit, instead of purchasing the property directly, you acquire shares in the company, where the purchase of a fixed number of shares grants you the right to occupy or use a specific unit in the company title property.
The share allocation for each unit is usually proportional to factors like floorspace, location within the building, or other value considerations, meaning different units in the building can have a different number of shares allocated to them. As such, your ownership interest in the property is determined by your shareholdings rather than a deed or a title.
Governance
Governance of company title properties is defined by the company's constitution, which serves as the governing document that establishes all rules, rights, and obligations for shareholders, replacing the standard legal frameworks that typically apply to direct property ownership.
This structure means that property-related decisions are made collectively by shareholders according to corporate governance principles, and any changes to your living arrangements or property modifications must comply with the company's internal rules rather than standard property law.
Land tax for company title units
When land is held under company title ownership, each shareholder is deemed to own the specific part of the building they have the right to occupy, as set out in the company constitution, with that unit being treated as if it were a strata lot for land tax purposes.
The Land Tax Management Act 1956 was amended in 1990 with the addition of Section 21A to simplify land tax assessment for company title units. This amendment applies to all land tax assessments from 1 January 1991 onwards and establishes several important principles:
Individual liability: Shareholders are personally liable for land tax on their unit, not the company itself. This means the shareholder is obligated to submit a land tax return, not the company on title.
Shareholding disclosure: Revenue NSW requires details of both the shares issued to each shareholder and the total number of shares issued by the company.
This legislative framework ensures that company title units are taxed consistently with strata properties, providing clarity for both shareholders and revenue authorities whilst recognising the unique ownership structure of company title arrangements.
Obligations of shareholders – what you need to provide
To ensure your land tax is calculated correctly, shareholders need to provide:
a copy of their shareholding details (such as a share certificate or schedule), and
a relevant extract from their Memorandum and Articles of Association that confirms their entitlement to the shares (usually found under the ‘Share Capital’ clause)
If you are a shareholder and you do not have documentation to support your ownership of shares in a company title unit, you can contact the company's registered office and request a copy of the share register.
Keeping your sensitive information safe - what not to upload
Revenue NSW is bound by the Privacy and Personal Information Protection Act 1998 (PPIP). We are committed to protecting your personal information and request that you do not upload documents which include sensitive details.
Sensitive details can be any of the following:
credit card details
bank card details
bank account numbers
tax file numbers
personal and health information not required for tax administration.
Please remove any sensitive information from your documents before uploading files to Land Tax Online.
If you don’t have a Land Tax Online account, you will need to call us
If you have recently purchased a property under company title and do not have an existing land tax account in Land Tax Online, please contact us.
How land tax is calculated for company title units
Each company title unit is typically valued for land tax purposes by applying formula (a) below.
Formula A
However, if the Chief Commissioner of State Revenue is not satisfied as to the fairness and reasonableness of the proportion obtained by using formula (a), then formula (b) is to be applied instead.
Formula B
If you own other taxable land in NSW
If other taxable land is owned in NSW in addition to shares in a company title unit, the land value of the company shares would be added to the value of the other properties. The total combined land value of all properties would be applied for land tax calculation purposes.
Application of the threshold for land owned in a company title
The way a property is owned can affect how the threshold is applied.
For example, when you own property with others, you can only claim one threshold for land owned together.
If a property is held in certain types of trusts or by related companies, the owner may not qualify for the land tax threshold.
So for shareholders of property held under a company title, where the shareholder is a special trust or related company, the threshold will not be applied to the land tax calculation.
Only owns taxable land under a company title in NSW
XYZ sample company owns land where they have constructed 20 units for occupation by way of company title ownership. Each apartment is allocated 10,000 shares.
Property details:
Company title land total value: $30,000,000
Mr. X owns: 10,000 shares
Total company shares: 200,000 shares
Mr. X has no other taxable land in NSW
No exemptions apply
Step 1: Calculate Mr. X’s proportional ownership of the company title land
Formula: Total land value x (Mr. X’s shares ÷ total company shares) = taxable land value
Owns other taxable land in NSW in addition to land under a company title
ABC sample company owns land where they have constructed 25 units for occupation by way of company title ownership. Each apartment is allocated 5,000 shares.
Property details:
Company title land total value: $40,000,000
Mr. Z owns: 5,000 shares
Total company shares: 125,000 shares
Mr. Z also owns other taxable land in NSW valued at $800,000 (which is solely owned by Mr. Z - not in joint ownership)
No exemptions apply
Step 1: Calculate Mr. Z’s proportional ownership of the company title land
Company-owned land value x (Mr. Z’s shares ÷ total company shares) = taxable land value of company title unit
Deemed owners of company title units (i.e. the shareholders), are generally entitled to claim exemptions or concessions that are available to an ‘owner’ of land. For example, if the unit is the shareholder’s principal place of residence then the property would be exempt from land tax.
The same eligibility criteria applies to deemed owners of company title units that apply to other types of land owners. For example, if the deemed owner is a company, a principal place of residence exemption cannot apply.
If you are a foreign person who owns residential land in NSW through a company title ownership structure, you must pay surcharge land tax in addition to any land tax you may already pay.
Surcharge land tax does not have a tax-free threshold.
The current surcharge land tax rate is 5% of the total land value of your property.
Read more about surcharge land tax, including the definition of a foreign person and residential land.
