Amid the uncertainty in the global economy, stagnating interest rates, and the government’s continued push to stimulate economic growth, smart investors are proactively seeking new opportunities to protect and grow their wealth.
One of the most resilient and rewarding investment options remains property investment, a sector that consistently draws attention for its long-term potential and stability.
However, while real estate across Australia can deliver solid returns, understanding land tax is crucial to protect your profits. Land tax isn’t a federal levy; it’s administered individually by each state and territory, meaning thresholds, rates, and exemptions vary widely.
In this 2025 guide, we will break down the land tax rates and costs for every Australian state and territory, revealing which areas may offer smarter, more cost-effective investment potential — insights every property investor should know before buying. We will also highlight any common ongoing property expenses you should budget for.
If you’re planning your next property purchase, this guide, supported by insights from experienced accountant group in Box Hill will help you make smarter, tax-efficient decisions.
What is Land Tax?
Land tax is an annual charge on the unimproved value of land you own. It generally applies to:
- Investment properties
- Vacant land
- Commercial and industrial sites
Your principal place of residence is usually exempt.
Each state or territory determines:
- How much land value is exempt (the threshold)
- What tax rates apply above that threshold
- Who qualifies for exemptions or surcharges
2025 Land Tax Thresholds and Rates by State and Territory
| Jurisdiction | Land Tax Threshold for Individuals | Key Rates (General, Not Including Foreign/Absentee Surcharges) | Official Reference |
| NSW | $1,075,000 (General Threshold) $6,571,000 (Premium Threshold) | 1.6% above general threshold 2% above premium threshold | Revenue NSW |
| VIC | $50,000 starting threshold for taxable land | ~ 0.9% to 2.65% progressive across land value bands | SRO Victoria |
| QLD | $600,000 | ~1% to 2.25% progressive across land value bands | QLD Revenue Office |
| SA | $833,000 | ~0.5% to 2.4% progressive across land value bands | RevenueSA |
| WA | $300,000 | ~ 0.9% to 2.67% for land over $1m progressive across land value bands | WA Treasury & Finance |
| TAS | $500,000 threshold | $1,737.50 + 1.5% of land value above $500k | SRO Tasmania |
| ACT | No fixed threshold — tax based on Average Unimproved Value (AUV) over 5-year period | $1,693 + 0.54% to 1.14% depending on AUV tier | ACT Revenue Office |
| NT | No land tax in the Northern Territory | n/a | NT Government |
Estimated Land Tax by Investment Property Value (2025)
| State | $600k | $1M | $1.5M | $3M |
|---|---|---|---|---|
| NSW | $0 | $0 | $6,800 | $30,800 |
| VIC | $2,250 | $4,650 | $9,150 | $31,650 |
| QLD | $500 | $4,500 | $12,750 | $37,500 |
| SA | $0 | $835 | $4,145 | $29,685 |
| WA | $1,170 | $2,730 | $7,930 | $34,330 |
| TAS | $3,238 | $9,238 | $16,738 | $39,238 |
| ACT | $7,333 | $12,293 | $18,534 | $37,393 |
| NT | $0 | $0 | $0 | $0 |
Comparatively, Victoria’s land tax appears moderate, especially next to the ACT and Tasmania. However, when consider vacant land tax, the cost picture can shift dramatically, making professional advice vital when planning your next investment.
Other Ongoing Property Costs to Budget
Land tax is only one part of the property ownership costs. Smart investors always account for these in their financial plans:
| Cost Type | Description |
|---|---|
| Council rates | Charged by local councils for municipal services. |
| Body corporate fees | Applies to strata or community-titled properties. |
| Insurance | Building, landlord, and public liability cover. |
| Maintenance & repairs | Regular upkeep, compliance, and safety obligations. |
| Property management | Fees (typically 5–8% of rental income) if using an agent. |
| Vacancy costs | Periods with no rental income still incur expenses. |
Tip: Partnering with a local Box Hill accountant helps you plan for these recurring costs and build a sustainable investment strategy.
Final Thoughts
Understanding how land tax varies across Australia is crucial for property owners and investors alike. With VIC, TAS, and the ACT applying some of the highest effective rates, and the NT standing out with no land tax at all, it’s clear that location plays a major role in shaping your tax obligations. Factors like aggregation rules, ownership structure, and valuation methods can further influence how much you pay.
To ensure you’re meeting your obligations while maximising potential savings, it’s always best to seek expert guidance from a trusted accountant in Box Hill. The right professional advice can help you navigate state differences, optimise your property portfolio, and stay compliant with evolving tax regulations.
For expert guidance on tax planning, property investment structuring, and compliance, contact Infinity Tax Solution Plus — your trusted Box Hill accountant helping you invest smarter in 2025 and beyond.
Disclaimer: The information contained in this article is general in nature and does not constitute financial or taxation advice. You should seek advice tailored to your specific circumstances from a registered tax or financial adviser.
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