Land Tax

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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?

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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

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