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Information for NSW property tax customers and their advisers.
Property Tax 2024/2025 rates have now been published
Pursuant to Schedule 2 of the Property Tax (First Home Buyer Choice) Act 2022, the new indexation factors used for the calculation of property tax for the 2024/2025 financial year have been published. Read more information on how property tax is calculated.
On this page
First Home Buyer Choice (FHBC) is no longer available.
Those who have already opted into FHBC – property tax customers – won't be affected at all.
Property tax customers must fulfil the residency requirement and continue to pay property tax for as long as they own the home they purchased under the initiative.
Property tax is a tax which eligible first home buyers could choose to opt into for eligible purchases between 11 November 2022 and 30 June 2023.
Those who elected to pay property tax, instead of the upfront transfer duty, will pay the annual property tax for as long as they own the home they bought under the program.
Pay your property tax
For more information on how to pay your Notice of Assessment and your alternative payment options, visit the pay your property tax page.
Definitions
Excluded residence
The following residences if located on the same lot as the lot used and occupied by the owner of the lot for residential purposes:
Note: The equity partner is liable to pay a proportion of the usual transfer duty, under theDuties Act 1997, based on the percentage interest in the property they are acquiring.
Eligible purchaser / Included owner
The owner who has elected to pay property tax.
Full time care
In an aged care establishment, a building or part of a building used by an approved provider under the Aged Care Act 1997 of the Commonwealth for the provisions of respite care of residential care.
Principal place of residence
The one place of residence of a person, whether within or outside Australia, that is the primary residence of that person.
Spouse
The person to whom the applicant is legally married or living with as a couple in a de facto relationship as defined in theInterpretation Act 1987.
The fixed and Land Value Rate are calculated using the Gross State Product Per Capita/Land Value Indexation factors for the current financial year.
Year
2024 Gross State Product Per Capita Indexation factor
Land Value Indexation factor
2024
1.094633
0.968094
2023
Not Applicable
Not Applicable
2022
Not Applicable
Not Applicable
Examples of how these indexation factors are used for the calculation of property tax can be found below.
Fixed component
The fixed component for a financial year is calculated by multiplying the fixed component of the previous financial year by the Gross State Product Per Capita Indexation factor for the financial year.
Fixed component amount for a financial year = Fixed component amount for the previous financial year x Gross State Product per capita indexation factor for the financial year
Land Value Rate (variable component)
The Land Value Rate is calculated by multiplying the land value rate for the previous financial year by the Gross State Product Per Capita Indexation factor for the financial year and dividing by the land value indexation factor for the financial year.
Land value rate = Land value rate for the previous financial year x Gross State Product per capita indexation factor for the financial year ÷ Land value indexation factor for the financial year
Change of mind
Once you have made your choice to opt into property tax; you cannot change your mind once you are the owner of this land. However, you have until you complete your purchase to change your mind and seek a re-assessment to pay the transfer duty.
How is land valued for property tax?
The Valuer General determines the value of all land in NSW at 1 July each year.
Land value is the unimproved value of your land.
Property tax will be calculated using the land value as at the beginning of the previous financial year.
Notice of assessment
Assessing period
An annual assessment period is calculated from 1 July to 30 June (financial year).
Time for payment
Property tax assessment notices will be issued to the primary contact details provided to Revenue NSW annually on or after 1 July, using the most recent land values available. The Valuer General determines land values as at 1 July of the previous financial year. Where an assessment is issued prior to the 1st of August in a financial year, eligible first home buyers will be given the choice of paying property tax in one annual instalment or in quarterly instalments.
In full by the first instalment date after you received the notice (which will either be 31 August, 30 November, 28 February, and 31 May).
In quarterly instalments due on 31 August, 30 November, 28 February, and 31 May.
Where a property is opted in or the included owners advise of changes part-way through a financial year, pro rata provisions will apply. Pro rata provisions will be based on the number of days in the year for which a property has been owned by the included owners and/or the number of days in the year, with the correct rate applicable, for which a property has a particular land use.
However, no payment will be required until at least 30 days after the assessment has been issued.
Eligible first home buyers will receive a property tax assessment annually, for as long as they own the property.
If you need to update your personal information for the issuing of your Notice of Assessment, please follow the link below.
The assessment period relating to this notice, effective from 1 July to 30 June of the following year.
2. Client ID
Revenue NSW’s identification for a customer file. It is a unique ID allocated for each registered Client used to track and manage associated information. Please have this handy when making enquiries regarding your tax notice.
3. Issue Date
This is the date that the notice was printed and issued. The notice of assessment and any further correspondence will be delivered via email. If an email is undeliverable, the correspondence will be mailed to the postal address provided.
4. Correspondence ID
It is a unique identification number allocated to a correspondence issued by Revenue NSW. Please note Correspondence ID's are only valid for a period of 24 months. Please have this handy when making enquiries regarding your tax notice.
5. Total payable /Amount due and due date
Provides the total amount payable by the respective date mentioned next to it.
Where an assessment is issued prior to the 1st of August in a financial year, eligible first home buyers will be given the choice of paying property tax in one annual instalment or in quarterly instalments. Refer to Time for Payment for further information.
6. How to Pay
Lists the various payment methods accepted by Revenue NSW for Property Tax. Payments can be made via Credit Card online, Bpay or in person at Australia Post.
7. Property details
Provides details of the land item(s) the property tax liability was assessed for. It is Revenue NSW’s identification of your property. This section has your property address and title particulars.
8. Taxable Land Value
Displays the land value on which the property tax liability is calculated. The taxable land value is the land value as at the beginning of the previous financial year. For example, for the 2022-2023 financial year, property tax will be based on land values as at 1 July 2021. This date is also known as the base date.
9. Ownership%
Displays the ownership share of the included owner(s) in the property/land subject to property tax.
10. Days Owned
Displays the number of days the property/land is owned in the relevant financial year. Where a property is opted in part-way through a financial year, pro rata provisions will apply. Pro rata provisions will be based on the number of days in the year for which a property has been owned by the included owners. It is assumed ownership will continue until 30 June in that financial year unless an included owner notifies us otherwise.
11. Property Usage
Displays the class of land use and respective number of days of each usage type for the property/land by the owner. This is either owner occupied, not owner occupied or mixed use (where the property was used as both owner occupied and not owner occupied over the same period in one financial year).
12. Notes
Displays information of any additional considerations made while assessing the Property Tax liability. This might include any Special Treatments applied to the land for the financial year. A special treatment can be provided in certain cases to enable the land to continue to be taxed at the owner-occupied rate.
The assessment period relating to this notice, effective from 1 July to 30 June of the following year.
2. Issue Date
This is the date that the notice was created and issued. The notice of assessment and any further correspondence will be delivered via email. If an email is undeliverable, the correspondence will be mailed to the postal address provided.
3. Client ID
Revenue NSW’s identification for a customer file. It is a unique ID allocated for each registered Client used to track and manage associated information. Please have this handy when making enquiries regarding your tax notice.
4. Correspondence ID
It is a unique identification number allocated to correspondence issued by Revenue NSW. Please note Correspondence IDs are only valid for a period of 24 months. Please have this handy when making enquiries regarding your tax notice.
5. Total payable / Amount due and due date / Instalments
Provides the total payable amount. Liability can be either Paid in Full or in Instalments* by the respective date mentioned next to it.
*Where an assessment is issued prior to the 1st of August in a financial year, eligible first home buyers will be given the choice of paying property tax in one annual instalment or in quarterly instalments. The “Instalments listed below” box shows the options of instalments available (if any). Refer to Time for Payment for further information.
6. How to Pay
Lists the various payment methods accepted by Revenue NSW for Property Tax. Payments can be made via Credit Card online, BPAY or in person at Australia Post.
7. Property details
Provides details of the land item(s) the property tax liability was assessed for. It is Revenue NSW’s identification of your property. This section has your property address and title particulars.
8. Taxable Land Value
Displays the land value on which the property tax liability is calculated. The taxable land value is the land value as at the beginning of the previous financial year. For example, for the 2022-2023 financial year, property tax will be based on land values as at 1 July 2021. This date is also known as the base date.
9. Ownership Percentage
Displays the ownership share of the included owner in the property/land subject to property tax.
10. Days Owned
Displays the number of days the property/land is owned in the relevant financial year. Where a property is opted in part-way through a financial year, pro rata provisions will apply. Pro rata provisions will be based on the number of days in the year for which a property has been owned by the included owners. It is assumed ownership will continue until 30 June in that financial year unless an included owner notifies us otherwise.
11. Property Usage
Displays the class of land use and respective number of days of each usage for the property/land by the owner. This is either owner occupied, not owner occupied or mixed use (where the property was used as both owner occupied and not owner occupied over the same period in one financial year).
12. Total payable adjustment
Denotes any adjustments made to the Total Payable amount against any available account balance. For example: An overpayment from previous year utilized to offset your current liability, thus reducing your total payable amount.
13. Calculation adjustment
Denotes that a 4% cap has been applied to the assessment for all or part of the financial year depending on changes in land usage from the previous financial year and the number of days these land uses apply.
Displays information of any special treatments applied to the land(s) for the financial year. A special treatment can be provided in certain cases to enable the land to continue to be taxed at the owner-occupied rate.
Displays information of any additional considerations made while assessing the Property Tax liability. This may include information on any overdue balance from the previous financial year(s).
If you don’t pay your property tax on time, you will be charged daily interest on the amount you owe until the outstanding amount is paid in full. You may also be charged additional penalties.
Recovery of unpaid amounts
An amount of unpaid property tax is a charge on land, and the first charge on land. A charge on the land must be paid before land is transferred.
Change in land use
You are responsible for informing Revenue NSW within 3 months of when your land use changes using our property tax online enquiry form.
There may be circumstances where an owner is absent from their owner-occupied land due to unavoidable circumstances, or for a temporary period after which the first home buyer intends to return. In certain instances, the owner may not return such as moving into a nursing home.
A special treatment can be provided in certain cases to enable the land to continue to be taxed at the owner-occupied rate.
If an included owner is in full-time care and immediately prior to their entry into care they owned the land and the land was owner-occupied, the land will continue to be treated as owner-occupied. No income can be derived during this time except for an excluded residence or amounts reasonably necessary to cover land related costs of the land.
For example, Jim lived in his own home for the last 5 years, which has been treated as owner-occupied for property tax purposes. He recently moved into and now resides at an aged care establishment while being provided with residential care. Jim’s son moved into the property as caretaker and pays all the council, energy and water rates as well as the home insurance. As Jim does not derive income from the land, the owner-occupied rate of tax will continue to apply for so long as these circumstances continue.
If an included owner is absent from their land but immediately prior to their absence they owned the land, and the land was owner-occupied, the land will continue to be treated as owner-occupied. The absence cannot be longer than 3 years. Within 12 months of the included owner’s return they must resume occupation for a continuous period of 6 months. No income can be derived during this time except for an excluded residence or amounts reasonably necessary to cover land related costs of the land such as a caretaker. In addition, the included owner cannot use and occupy another residence they own during the time they are absent from their land receiving the special treatment.
For example, Jill had been paying property tax at the owner-occupied rate. The following year she moves overseas for work and rents a flat. Provided she does not receive income, except to cover land related costs or an excluded residence, the land will be treated as owner occupied for up to 3 years from when she moved out.
When an included owner becomes the owner of the land, they must move into the home within 12 months and live in it continuously for 6 months. The owner-occupied rate will be applied from the date of settlement to when the included owner moves in provided no income has been derived during this time.
For example, if John takes ownership of his home on 1 August 2023, John will have until 31 July 2024 to move into the property and must then reside in it as his principal place of residence for a continuous period of at least 6 months.
If John moves into the home in June 2024, he will be taxed at the owner-occupied rate, even during the period of 1 August 2023 and June 2024, provided that he does not derive any income from the land during that period.
By completing the Property Tax Application Form, you declare that the property is intended to be used as your principal place of residence and will be granted special treatment as owner-occupied unless and until you advise that the above criteria are not satisfied.
Land that is continuously unoccupied due to construction or renovations will be treated as owner-occupied. The duration of this special treatment is up to 5 years however, certain conditions must be met. No income can be derived during this time and neither the included owner or their family can use and occupy another residence they own during the time.
Within the first 2 years of the special treatment being applied, works will need to have physically commenced or significant steps taken to allow physical works to commence. The included owner will need to commence lawful occupation of the land for a continuous period of at least 6 months within 1 year after the building works are completed.
For example, Jack purchased vacant land in the previous year with the intention of building his property. In the current year he lodges a Development Application and building works commences in the second year following settlement of his purchase. Construction of the property is completed by the end of the fourth year and Jack moves in and continues to reside in the property for 6 months. For the period of time between settlement of the purchase to moving into the property, Jack was residing in his parent's home. His land will be treated as owner-occupied from when he first purchased the land as he has met all necessary requirements.
By completing the Property Tax Application Form, you declare that the property is intended to be used as your principal place of residence and will be granted special treatment as owner-occupied unless and until you advise that the above criteria are not satisfied.
Apply for special treatment
If your circumstances conform with the eligibility criteria outlined above and you would like to apply for a special treatment of certain land, please use the property tax online enquiry form.
A 4% cap has been introduced to provide some assurance to first home buyers who opt into property tax, that their annual liability for a particular lot of land will not increase by more than 4% – even if their land value increases by more than this margin – provided that their class of land use (owner occupied/ not owner occupied) in the current year was also a class of land use in the previous year.
Being a pro-rated tax, this can result in a 4% cap being applied to a property tax bill for all or part of a financial year depending on changes in land use from one year to the next, and the number of days these land uses apply.
The 4% cap is not applicable for the first year of paying property tax as there is no previous year’s calculation to apply the cap to.
We determine whether the current year’s liability is lower than the previous year’s (inclusive of the 4% cap that has been applied), and a Notice of Assessment is issued for the lesser liability of the two.
Examples
Where the ownership and land remain consistent from one financial year to the next, if the included owner:
has the same land use for the entire current financial year as they had in the previous year, they will receive the full benefit of the 4% cap. (See below Fig 1.1 and 1.2)
changes their land use for the entire current financial year as compared to the previous year, they will not receive the benefit of the 4% cap. (See below Fig 2.1 and 2.2)
changes their land use partway through the current financial year, they will receive the benefit of the 4% cap only for the portion of the year where the land use is the same as they had in the previous year. (See below Fig 2.3 and 2.4)
has both classes of land use in the current and previous financial year, the 4% cap will be applied on each usage. (See below Fig 2.5)
Note: There are some differences in the way the 4% cap applies where the land is mixed use, or has been subdivided or consolidated.
Prorated liability (i.e. based on current usage and inflated land value)
4% increase on prior year prorated for current year (i.e., dependant on previous year’s usage and independent of inflated land value)
Owner occupied - 100
$3,700 (a)
$1011.00 (e)
$966.10 (g)
Not owner-occupied - 266
$13600 (b)
$9,884.20 (f)
$9448.10 (h)
4% cap on above figures (used for 2025 FY): Owner Occupied - $3,848 (c) Not Owner Occupied - $14,144 (d)
Prorated Total Payment: $10,895.20
4% Prorated Total Payment: $10,414.20
For the FY 2023/2024, the prorated total of $10,895.20 is higher (based on inflated land value) than the 4% prorated total of $10,414.20 (based on a 4% increase on the previous year’s usage, dependant solely on the current year’s usage and independent of inflated land value). Payment will always be the lesser, in this case the capped 4% prorated total, that is $10,414.20.
Here we look at the same scenario as above, however the land value has inflated less, at 4.05% (to $1,040,500) FY2023/24.
Usage (days of the year
Base Annual Liability
Prorated liability (i.e. based on current usage and inflated land value)
4% increase on prior year prorated for current year (i.e., dependant on previous year’s usage and independent of inflated land value)
Owner occupied - 100
$3,521.50 (a)
$962.15 (e)
$966.10 (g)
Not owner-occupied - 266
$12,945.50 (b)
$9,408.45 (f)
$9448.10 (h)
4% cap on above figures (used for 2025 FY): Owner Occupied - $3,662.40 (c) Not Owner Occupied - $13,463.40 (d)
Prorated Total Payment: $10,370.60
4% Prorated Total Payment: $10,414.20
Now the prorated total of $10,370.60 is lower than the 4% prorated total amount of $10,414.20. As land inflation has not been sufficient to overcome the 4% prorated total capping, amount due will again be the lesser, $10,370.60.
(a)$400 + ($1,040,500 × 0.003) = $3,521.50
(e) $3,521.50 × (100÷366) = $962.15
(b)$1500 + ($1,040,500 × 0.011) = $12,945.50
(f) $12,945.50 × (266÷366) = $9,408.45
(c)104% × $3,521.50 = $3,662.40
(g) 104% × $3400 × (100÷366) = $966.10
(d)104% × $12,945.50 = $13,463.40
(h) 104% × $12,500 × (266÷366) = $9448.10
Deferral
For land that is owner-occupied, there are grounds for deferral if the payment of the property tax would cause an individual to be unable to meet basic living expenses.
When reviewing an application for deferral, of part or all of the property tax assessed for the financial year, the Chief Commissioner will take into account:
basic living expenses
the income and expenses of the individual
whether the individual has disposed of assets since a property tax liability was previously deferred or since property tax became payable for the financial year
the ability of the individual to rearrange current financial commitments or otherwise manage the individual’s financial affairs
whether the individual’s ability to manage the individual’s financial affairs is impaired because of ill health, including a mental illness, intellectual disability or cognitive impairment
other matters the Chief Commissioner reasonably considers to be relevant.
Unpaid property tax continues to be a charge on land even if the Chief Commissioner approves deferral of payment.
Interest is payable on the deferred unpaid property tax.
Unpaid property tax, the payment of which is deferred, is payable in the next financial year or at a later time specified by the Chief Commissioner unless—
a further application to defer the payment is approved by the Chief Commissioner, or
The Chief Commissioner specifies a later date for payment.
Hardship Review Board
At any time, the included owner can contact the Hardship Review Board (HRB) and has the right to apply for hardship online. All decisions of the Board are made independently of Revenue NSW.
There are substantial penalties for providing false or misleading information to Revenue NSW. We regularly check your information against data from other government agencies and businesses.
Objections and reviews
You can lodge an objection or request a reassessment if you’re dissatisfied with an assessment or decision we’ve made. You must lodge the objection within 60 days of the issue date of an assessment or decision.
Land values used in property tax notices of assessment are obtained from the NSW Valuer General. Only the Valuer General has the authority to ascertain land values and determine objections relating to land valuation matters.
If your objection concerns land valuation matters, go to the Valuer General’s website to get an objection kit.
The Valuer General will consider your objection, inform you of the decision, and any rights of review or appeal you may have.
If there has been an alteration to the land value, the Valuer General will notify us and your property tax liability will be reassessed based on this new value. You’ll be sent a new property tax notice of assessment.
Selling your property
Property Tax Certificate update
A status certificate will need to be requested when selling a property. There will be no changes to the existing process to apply for a certificate. The application you submit will provide for both Land Tax and Property Tax. No additional charge will be applied.
After a request is submitted via the Client Service Provider, Revenue NSW will perform checks to determine if a Land Tax or Property Tax liability exists for that landowner,
a joint response will be issued for both taxes, and
the landowner or their representative can then contact Revenue NSW where a certificate is issued as 'Not Clear' for Land Tax or 'Opted In' for Property Tax to arrange clearance
If the property being sold is under contract, you must apply for a certificate and give the buyer a copy at least 14 days before the contract completion date. For contracts completing within 14 days, the buyer must be given a copy on the date that the contract is made.
Where a certificate is “Not Clear” for land tax or “Opted In” for property tax, further action will be required to arrange payment for any outstanding Land Tax or Property Tax associated with the property on or prior to settlement.
If the vendor owns three lots in one strata plan, they’ll be processed under one certificate. If more than three lots are involved, you’ll need to lodge more than one certificate.
Contact Us
If you haven't found answers on this website to questions about Property Tax and how to apply, see our contact details.