Land Tax in Australia: A State-by-State Guide

What land tax is🔗

Land tax is an annual tax charged by each state and territory, not the federal government (the ATO has nothing to do with it). Each jurisdiction taxes the total value of your taxable land above a tax-free threshold, usually at a progressive rate, assessed at a set date each year (historically 31 December in NSW and Victoria, 30 June in QLD, SA and WA, 1 July in Tasmania). It is based on the unimproved land value (the site value of the land only, set by the Valuer-General), not the market value of the property and not the building on it. So a $900,000 property with land valued at $450,000 has land tax calculated from $450,000; the building does not count.

Your home is (usually) exempt🔗

The most reassuring point: your principal place of residence is generally exempt. Live in your home, own it in your own name, and it is your main residence, and you almost certainly pay no land tax on it. Land tax mainly applies to:

Two catches: if you move out and rent out your former home, you may lose the exemption once it stops being your main residence (some states offer a transitional period, so check). And a holiday home is generally not exempt: it is not your principal residence, so it is treated as investment land and can be taxable if its value pushes you over the threshold.

How land tax is calculated🔗

The basic formula: you pay on your taxable land value above the threshold, at your state's rate. The wrinkles that catch people:

• Aggregation: within a state, all your taxable land is added together, so multiple properties push you into higher brackets faster than you would expect. Aggregation works within a state, not across states.
• Trusts and companies: often get no tax-free threshold (or a lower one), sometimes plus a surcharge. Get specific advice if you use these structures.
• Foreign owner surcharges: several states add an extra surcharge on top of the standard rate for foreign owners.

State by state: how much it varies🔗

Every jurisdiction with land tax has its own threshold, rate structure and exemptions, and the differences are significant (Victoria, for instance, has historically had a much lower threshold than NSW, catching far more owners). We are not quoting precise dollar thresholds here, because they change regularly and a stale number could cost you.

Common traps🔗

• Aggregation pushing two modest properties into a higher bracket than either alone.
• Renting out your former home: it was exempt, you moved out and rented it, now it is taxable.
• Assuming a holiday home is exempt: it is not your main residence, so it generally is not.
• Land in a trust or company: often no threshold, plus possible surcharge.
• The foreign owner surcharge, which can add meaningfully to the bill.
• Forgetting to register: in most states you must notify the revenue office if you own taxable land, or risk back-taxes and penalties.

How to check and pay🔗

Work out if you are liable (own land other than your home, above the threshold on unimproved value), then register or notify your state revenue office if you are. They issue an annual assessment, with payment options that vary by state (annual or instalments). The revenue offices: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueSA, RevenueWA, State Revenue Office Tasmania, and the ACT Revenue Office. The NT has no land tax. Unsure? Contact your state revenue office or a registered tax agent, and do not guess.

❓ Frequently asked questions🔗

Keep reading🔗

• Tax on rental income: what landlords must declare
• Capital gains tax on property in Australia
• Glossary: stamp duty
• Glossary: land tax