Land tax is a state tax, calculated on the freehold land you own in that State
The tax rate that applies depends on:
- what type of owner you are (eg individual, trustee, company foreign resident)
- the total taxable value of your land, and
- if any exemptions apply.
In Victoria, Land Tax is payable for unimproved land (not including the buildings upon it) that you own which is:
- Not your primary residence
- Worth more than $250,000 combined.
- On the 31st December each year
This includes rental and investment properties, commercial properties, factories, holiday homes, vacant land and other non-exempt land.
Exemptions are for:
- Your Principal Place of Residence (PPR)
- A farm, or Primary Production Land (PPL)
- A ‘Rooming house’ or charitable housing for people with low-incomes
- Land used exclusively for charitable purposes — poverty, education, religion etc.
In NSW, Land Tax is payable for unimproved land of combined value $412,000, exempting your Principle Place of Residence. Higher rates are payable beyond $2,519,000.
In Queensland, Land Tax is payable on all your unimproved land above $600,000 combined when owned as an individual, or $350,000 if owned commercially, calculated on the freehold land you own in Queensland at midnight on 30 June each year.
You may want to read: What is Land Tax and can I reduce it?« Back to Glossary Index