LAND TAX QUEENSLAND, NEW SOUTH WALES & VICTORIA
When purchasing a property, it is important to consider, not only the upfront costs, but the ongoing costs associated with owning property. One such cost is land tax.
Land tax is a state-based, annual tax calculated on the aggregated taxable value of all land owned by an entity in a particular state, either solely or jointly, each year.
Land tax is calculated by applying the appropriate land tax rate to the total taxable value of your land holdings (excluding any exempt land).
We’ve set out a break down below of information on the applicable land tax across the states as at August 2024.
Queensland
When is land tax assessed?
30 June each year.
What land is included?
- Vacant land
- Land that is built on (e.g. an investment property or holiday home)
- Lots on a strata title
- Lots in a timeshare scheme
- Lots owned by a home unit company
- Commercial properties, including factories, retail shops, office premises and factories
Note: only freehold land is included. Land that is state land or leased from the Queensland Government is not included.
What is the threshold for paying land tax?
- For absentees, companies and trustees of trusts and superannuation funds – $350,000 and over
- For individuals and trustees of special disability trusts – $600,000 and over
What is the applicable tax rate?
- Individual
- Absentee individual
- Company or trust
- Foreign company or trust
Exemptions
Your residential home is exempt.
Details of further exemptions can be found here: https://qro.qld.gov.au/land-tax/relief/exemptions/
Example
An entity holds land at the relevant time with a total taxable value of $1,500,000
*** The calculations below are based on rates and thresholds current as at 7 August 2024.
Individual:
Residential home
The exemption applies = $Nil
Investment
$4,500 + 1.65% x ($1,500,000 – $1,000,000) = $12,750
Company:
$1,450.00 + 1.7% x ($1,500,000 – $350,000) = $21,000
Trust (not including special disability trust)
$1,450.00 + 1.7% x ($1,500,000 – $350,000) = $21,000
Foreign company
Standard land tax:
$1,450.00 + 1.7% x ($1,500,000 – $350,000) = $21,000
PLUS surcharge land tax of 3% over the threshold:
($1,500,000 – $350,000) x 3% = $34,500
Total land tax = $55,500
Foreign trust
Standard land tax:
$1,450.00 + 1.7% x ($1,500,000 – $350,000) = $21,000
PLUS surcharge land tax of 3% over the threshold:
($1,500,000 – $350,000) x 3% = $34,500
Total land tax = $55,500
Absentee individual
Standard land tax:
$1,450.00 + 1.7% x ($1,500,000 – $350,000) = $21,000
PLUS surcharge land tax of 3% over the threshold:
($1,500,000 – $350,000) x 3% = $34,500
Total land tax = $55,500
Note: threshold for company / trust is used in this instance.
New South Wales
When is land tax assessed?
31 December each year.
What land is included?
- Vacant land
- Land that is built on (e.g. investment property or holiday home)
- Company title units
- Residential, commercial or industrial units, including car spaces
- Commercial properties, including factories, retail shops, office premises and factories
- Land leased from state or local government
What is the threshold for paying land tax?
- General threshold – $1,075,000 and over
- Premium threshold – $6,571,000 and over
What is the applicable tax rate?
- Individual, company or trust
- Foreign person
Exemptions
Your residential home is exempt.
Details of further exemptions can be found here: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax/exemptions-and-concessions
Example
An entity holds land at the relevant time with a total taxable value of $1,500,000
*** The calculations below are based on rates and thresholds current as at 7 August 2024.
Individual:
Residential home
The exemption applies = $Nil
Investment
$100.00 + 1.6% x ($1,500,000 – $1,075,000) = $6,900
Company:
$100.00 plus 1.6% x ($1,500,000 – $1,075,000) = $6,900
Trust
$100.00 plus 1.6% x ($1,500,000 – $1,075,000) = $6,900
Foreign company
Standard land tax:
$100.00 plus 1.6% x ($1,500,000 – $1,075,000) = $6,900
PLUS surcharge land tax of 4%:
$1,500,000 x 4% = $60,000
Total land tax = $66,900
Foreign trust
Standard land tax:
$100.00 plus 1.6% x ($1,500,000 – $1,075,000) = $6,900
PLUS surcharge land tax of 4%:
$1,500,000 x 4% = $60,000
Total land tax = $66,900
Foreign individual
Standard land tax:
$100.00 plus 1.6% x ($1,500,000 – $1,075,000) = $6,900
PLUS surcharge land tax of 4%:
$1,500,000 x 4% = $60,000
Total land tax = $66,900
Victoria
When is land tax assessed?
31 December each year.
What land is included?
- Vacant land
- Land that is built on (e.g. investment property or holiday home)
- Commercial properties, including factories, retail shops, office premises and factories
What is the threshold for paying land tax?
- For trusts – $25,000 and over
- For all other entities – $50,000 and over
What is the applicable tax rate?
- Individual or company
- Absentee individual or company
- Trust
- Trust with absentee owner
Exemptions
Your residential home is exempt.
Details of further exemptions can be found here: https://www.sro.vic.gov.au/rates-taxes-duties-and-levies/land-tax-current-rates
Example
An entity holds land at the relevant time with a total taxable value of $1,500,000
*** The calculations below are based on rates and thresholds current as at 7 August 2024.
Individual:
Residential home
The exemption applies = $Nil
Investment
$4,650.00 + 0.9% x ($1,500,000 – $1,000,000) = $9,150
Company:
$4,650.00 + 0.9% x ($1,500,000 – $1,000,000) = $9,150
Trust
$8,163 + 1.275% x ($1,500,000 – $1,000,000) = $14,538
* Trust (in this example, it is a discretionary trust holding land acquired post 2006 such that the land tax trust surcharge applies)
Foreign company
$44,650 + 4.9% ($1,500,000 – $1,000,000) = $69,150
Foreign trust
$48,163 + 5.275% ($1,500,000 – $1,000,000) = $74,538
* Foreign trust (in this example, it is a discretionary trust holding land acquired post 2006 such that the land tax trust surcharge applies)
Absentee individual
$44,650 + 4.9% ($1,500,000 – $1,000,000) = $69,150
