Land Tax in Australia: State & Territory Overview

What Is Land Tax?

In broad terms, land tax is a state or territory tax that may be payable on the unimproved value of land you own, above certain thresholds and subject to various exemptions. It is usually separate from council rates and is administered by the revenue authority in each Australian state or territory.

Common situations where land tax may be relevant include owning investment properties, holiday homes, vacant land or multiple properties. However, the exact rules vary significantly between New South Wales (NSW), Victoria (VIC), Queensland (QLD), Western Australia (WA), South Australia (SA), Tasmania (TAS), the Australian Capital Territory (ACT) and the Northern Territory (NT).

Common Land Tax Concepts (High-Level)

Although each jurisdiction has its own legislation, many land tax systems use some similar ideas. At a very high level, these can include:

• Tax-free thresholds: An amount of total land value that may be exempt from land tax, above which tax may apply.
• Different rates or scales: Progressive or stepped tax rates that may increase as the total taxable land value rises.
• Principal residence exemptions: In many cases, your main home may be treated differently from investment properties or vacant land, subject to conditions and evidence.
• Separate vs aggregated holdings: In some states or territories, multiple properties can be combined when calculating land tax, rather than assessed individually.
• Ownership structure: Land held in a personal name, company, trust or SMSF can be treated differently and may attract different thresholds or rates.

These concepts are general only. The precise way they are applied ? or whether they apply at all ? depends entirely on the legislation and revenue authority in each state or territory.

Land Tax in NSW

In New South Wales (NSW), land tax is administered by Revenue NSW. It may be payable on the total taxable value of land you own in NSW above certain thresholds, with some land (for example, your principal place of residence) potentially exempt in many cases.

The thresholds, rates, exemptions and surcharges change from time to time and can differ based on whether you are an individual, company, trustee or other type of owner. Foreign owner surcharges, if applicable, are subject to separate rules.

For current details about land tax in NSW, including thresholds, rates and exemptions, you should refer to the official Revenue NSW website or speak with a qualified tax adviser.

Land Tax in VIC

In Victoria (VIC), land tax is administered by the State Revenue Office (SRO Victoria). Land tax may apply to the total taxable value of Victorian land you own that is not exempt, based on thresholds and rate scales set out in Victorian legislation.

Certain land may be exempt, such as a principal place of residence, primary production land or land used for specific purposes, subject to the rules in force at the time. Different rates or surcharges may apply to different types of owners, including companies, trusts or foreign owners.

For current information about land tax in Victoria, refer to the SRO Victoria website or seek advice from a qualified tax professional.

Land Tax in QLD

In Queensland (QLD), land tax is administered by the Queensland Revenue Office. Land tax may be assessed on the total taxable value of land you own in QLD above the applicable threshold, subject to exemptions, ownership structure and other criteria.

Thresholds, rates and surcharges in Queensland can differ between individuals, companies, trustees and absentee or foreign owners. Rules can also change over time, so current information is important.

For the latest information, including land tax thresholds and rates in QLD, consult the Queensland Government website or discuss your situation with a tax adviser.

Land Tax in WA

In Western Australia (WA), land tax is managed by RevenueWA. Land tax may apply to the aggregated unimproved value of taxable land you own in WA above certain thresholds, subject to exemptions and specific ownership rules.

WA's land tax system includes thresholds and progressive scales that can differ based on the value of the landholding. Primary residence exemptions or other relief may be available in some circumstances, but each case depends on legislation in force at the time.

For accurate and up-to-date information, refer to the RevenueWA website or speak with an appropriately qualified tax professional.

Land Tax in SA

In South Australia (SA), land tax is administered by RevenueSA. Land tax may be payable on the aggregate taxable value of land holdings above the relevant threshold, subject to exemptions and ownership rules.

The SA land tax system includes different thresholds and rates, and may treat companies, trusts and individuals differently. Surcharges or special rules for particular owner types can also apply.

For current details on land tax in South Australia, consult the RevenueSA website or obtain advice from a qualified tax adviser familiar with SA legislation.

Land Tax in TAS

In Tasmania (TAS), land tax is administered by the State Revenue Office Tasmania. Land tax may be assessed on the combined value of taxable landholdings above certain thresholds, subject to exemptions, ownership structure and other criteria.

Tasmanian land tax rules may provide different treatment for principal residence land compared with investment or commercial land. Thresholds, rates and exemptions can change over time.

For official information about land tax in Tasmania, refer to the State Revenue Office Tasmania website or speak with an adviser familiar with Tasmanian tax rules.

Land Tax in ACT

In the Australian Capital Territory (ACT), land tax is administered by the ACT Revenue Office. Land tax rules in the ACT differ from those in the states and are influenced by the ACT's leasehold land system.

Whether land tax applies, and how it is calculated, will depend on factors such as how the property is used, who owns it and the total value of land holdings. Rules can change, and there may be different treatment for residential versus commercial property.

For current information about ACT land tax, refer to the ACT Revenue Office website or speak with a qualified tax adviser who understands ACT law.

Land Tax in the Northern Territory (NT)

The Northern Territory (NT) does not currently have a broad-based land tax system in the same way that some Australian states do. However, other taxes, fees or charges may still be relevant to property owners, and tax rules in any jurisdiction can change over time.

If you own or are considering property in the Northern Territory, you should confirm the current position with an appropriately qualified tax adviser or by referring to official NT Government information.

Practical Steps When Considering Land Tax

Because land tax rules vary across Australia, a cautious, methodical approach can be helpful. Some general steps people often take include:

• Listing all properties you own and the state or territory each one is located in
• Checking the current land tax thresholds, rates and exemptions on each relevant revenue authority's website
• Confirming whether properties are held in your own name, in a company, trust or SMSF, as this can affect how land tax is calculated
• Speaking with an accountant or tax adviser who understands land tax in the relevant states and territories
• Considering how land tax might affect your holding costs when reviewing property investment decisions

Our property buyer checklist and other resources are general tools only. They do not replace tailored advice and should be adapted in consultation with your professional advisers.

How a Buyers Agent Fits into Land Tax Discussions

A buyers agent does not calculate or advise on land tax, but they can help you factor holding costs into your property search in a general way. For example, they can work with your accountant or tax adviser to understand the types of properties and locations you are considering, then help you shortlist options that broadly align with your budget and strategy.

Our guide on Working with a Buyers Agent explains how this role typically sits alongside your legal, tax and financial advisers.