Month: March 2026

The Invisible Bill: 5 surprising Truths about your Land Tax Valuation

Land tax is a significant cost to Australian property owners, yet few people understand how their land valuation is calculated for the purpose of land tax. Land tax assessments are undertaken by the Australian government, specifically by each state’s Valuer-General, using large-scale valuation systems.

Historically, property-based taxation was based on valuation systems that were surprisingly transparent to property owners, such as counting chimneys for the Hearth Tax or windows for the Window Tax. Today’s methods are less visible due to the digital age of fact-finding.

We outline five truths about the assessment process used to determine your land value:

 

1. Unimproved Value of Land

The Valuer-General in each Australian state assumes your land is vacant, ignoring buildings or improvements. This unimproved-value-of-land method of assessment is not based on a sale price or a transaction, rather it is an estimate of what the land might sell for if empty. This ‘guess-timate’ is made without input from you and can change over time as urban areas are developed.

2. Top-Down Estimate

When comparing land sales, the Valuer-General must consider mostly developed properties, as vacant land sales are rare in today’s urban areas. Therefore, the Valuer-General works backwards from the sale price of developed properties and estimates how much of the sale price relates to buildings and improvements and how much relates to the underlying land. This ‘top-down’ approach introduces a higher level of subjective judgement and estimation.

3. Mass Appraisal

To value millions of properties each year, the Valuer-General relies on a mass appraisal method of valuation. Properties in similar locations and zoning categories are grouped together, and a ‘benchmark property’ is selected for a detailed valuation, thereby creating a percentage change applied to every other property in the group. There is a mathematical error if your property is unique due to its features and characteristics – easements, steep terrain, access limitations, for example – that are not identical to the benchmark.

4. Legal Restrictions

Land valuation is normally based on the concept of “highest and best use”, that is, the most profitable use allowed under zoning rules, however certain legal restrictions can override this principle.

For example, a legal case in 2023 involving the Sydney Fish Market highlighted how land subject to a Crown lease must be valued on the permitted use defined in the lease and not on the most profitable use allowed under zoning rules. The court disagreed that the site could be developed into luxury apartments because the lease restricted the site’s use to a “wholesale fish market”, resulting in the land valuation being adjusted lower than if the “highest and best use” rule was applied.

Legal restrictions can significantly affect valuation if there is an overriding factor permitting use of the land in a context that would increase or reduce the land value.

5. Unfairness will not win an Objection

A property owner who wishes to challenge a land tax valuation based on it being ‘unfair’ is in for a rude awakening. When objecting to a land tax assessment, successful applications require evidence, not just dissatisfaction or general grievance.

Commonly, reliable evidence may be:

  • Comparable sales showing the assessed value is too high
  • Land size or boundary details incorrectly recorded
  • Constraints such as easements, heritage listings, access and zoning limitations being overlooked

Strict timeframes apply to challenging a land tax valuation. A property owner has no more than 60 days from the notice date to lodge an objection application.

Land Valuation Notice – What to do NEXT

If you have received a land valuation notice, it would be prudent to review the details of it carefully. Because the burden of proof lies with you, the property owner, you must decide if you have identified if the Valuer-General has truly understood your property in their assessment of it. If you want to have their assessment reviewed, do you have evidence?

YML Group can review your Land Tax assessment and help you determine whether lodging an objection application with Revenue NSW might be a worthwhile step for you to take to mitigate your Land Tax obligation.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your Land Tax obligation. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Payday Super from 1 July 2026: What Businesses Need to Know

Australia’s superannuation system, notably the current quarterly payment cycle, will change for employers and employees from 1 July 2026. Employers’ superannuation guarantee (SG) contributions will need to align directly with the payroll cycle, meaning that the SG will be paid at the same time as wages and salaries. This change is known as ‘Payday Super’.

Changing the SG payment cycle gives regulators a way to tackle the growing issue of unpaid or underpaid SG by providing clearer visibility of employer compliance.

How does Payday Super benefit employees?

This reform aims to improve transparency for employees. It will ensure that SG is received sooner than quarterly, more consistently, and help boost retirement savings outcomes.

What are the implications for businesses?

Payday Super represents a significant shift in payroll and cash flow management for many businesses. Specifically, businesses will no longer have the flexibility to hold SG contributions until the end of the quarter.

Under the new rule, starting on 1 July 2026, employers will be required to:

This shift to more frequent SG payments will see the need for:

Preparing your Business early will be key to successfully transitioning to Payday Super

YML Group can support you with the approaching introduction of Payday Super. NOW is the ideal time for you to review your payroll system and cash flow management.

Our YML Business Services Team has the expertise to assist you with:

Contact YML Group today to discuss how we can make the introduction of Payday Super an easier transition for your business and you.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your SG obligations. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

Did you know you can buy an investment property using home loan interest rates?

If you’re interested and would like to explore whether this option could work for your situation, please feel free to give us a call. We’re more than happy to discuss the details and answer any questions you may have.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with SMSF property purchases. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.