Do You Know the Australian Tax System?
In Australia, there are three levels of the tax system, namely federal taxes (e.g. personal income tax, GST), state taxes (e.g. stamp duty, land tax) and local taxes (e.g. council rates). When investing in property, if the property has its own land, then the land on which the investment property is built is subject to land tax. Therefore, the value of portfolio in a state directly determines how much land tax investors will have to pay to that state.
How to Calculate Land Tax?
Check the value of the land (this value is taxable land recognized by the government, not the market value of land for sale) on the appropriate the state’s website, enter the value of the land and calculate the appropriate land tax. It is important to note that land tax calculators are generally available on government websites for information purposes only, and some do not provide special planning for land tax for special structures (e.g. trusts), so please consult your state government and professional accountant for specific taxation.
Please also be mindful that if the investment property is owned by company or trust, then the land tax rates and thresholds could be different. Owner occupied property is generally not subject to any land tax.
Land Taxation Rates and Thresholds by State in Australia
Australian Capital Territory
General land tax: $1,392 + 0.54% - 1.14% of the average value of the land over the last 5 years, for all civil land to tax only, exempt or commercial properties are not covered
Overseas buyer’s land tax surcharge: 0.75%
Taxation dates: 1st July, 1st October, 1st January, 1st April each year
Land tax exemption threshold: $0
Land Value Search Online
https://www.accesscanberra.act.gov.au/s/public-registers/unimproved-values?registerid=m0I4a00000000CgEAI
Land Tax Calculation
https://www.revenue.act.gov.au/functionality/calculator-2021-22/prod/_nocache#/home
New South Wales
General land tax: 0% - 2%
Overseas buyer’s land tax surcharge: 2%
Taxation date: 31 December each year
Land tax exemption threshold: $822,000 for individuals and companies; $0 for most trusts
Land Value Search Online
https://www.valuergeneral.nsw.gov.au/services/addr-inquiry.htm;jsessionid=4825DA6025EA2A6B49579B2046392AF8?execution=e1s1
Land Tax Calculation
https://www.apps09.revenue.nsw.gov.au/erevenue/calculators/landtax.php
Victoria
General land tax: 0% - 2.25%
Absentee owner surcharge: 2.2% - 4.55%, which is a euphemism for the overseas buyer’s land tax surcharge, but is more complex
Vacant residential land tax: 1% (it will be levied on residential land in Melbourne's mid and inner suburbs if it is vacant for more than 6 months in a natural year)
Taxation date: 31st December each year
Land tax exemption threshold: $299,999 for individuals; $24,999 for trusts
Land Tax Calculation
https://www.sro.vic.gov.au/calculators/land-tax-calculator
Queensland
General land tax: 0% - 2.25%, and corporate trusts up to 2.75%
Overseas buyer’s land tax surcharge: 2% (same starting point as corporate trusts)
Taxation date: 30 June each year
Land tax exemption threshold: $599,999 for individuals; $349,999 for companies and trusts
Land Value Search Online
https://www.resources.qld.gov.au/qld/environment/land/title/valuation/search
Land Tax Calculation
http://amun.osr.qld.gov.au/sap/osrqld/wd_ltax_calc
Western Australia
General Land Tax: 0% - 2.67%
Overseas buyer’s land tax surcharge: not yet available
Urban land improvement tax : 0.14% (additional rates on top of ordinary land tax for urban properties)
Taxation date: 30 June each year
Land tax exemption threshold: $300,000
Land Tax Calculation
https://apps.osr.wa.gov.au/portal/0/home;jsessionid=tz9QtHwrU0nDEQLzCI2PoQa-Q2IGytbmcZAFPUr_ckdirIIsV5nr!-1896436366
South Australia
General land tax: 0% - 2.4%
Additional land tax on property held in trust: 0% - 2.4%; additional land tax is payable if land is in the name of a non-disclosed/non-traceable trust of the beneficiary (except for listed or large public trusts)
Taxation date: 30 June each year
Land tax exemption threshold: $482,000 for individuals; $25,000 for trusts
Land Tax Calculation
https://www.revenuesa.sa.gov.au/landtax/calculate-land-tax/2021-22-general-land-tax-rates-calculator
Tasmania
General land tax: 0% - 1.5%
Overseas buyer’s land tax surcharge: not yet available
Taxation date: 1st July each year
Land tax exemption threshold: $49,999
Land Tax Calculation
https://www.sro.tas.gov.au/land-tax/land-tax-calculator
Northern Territory
-Northern Territory
General land tax: none
Property activation levy: levy on vacant non-civil property land in Darwin CBD only; levy 1% on unused non-civil property and 2% on vacant undeveloped land
Land tax exemption threshold：$0
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