What about Land Tax?

LAND TAX is a State-levied tax imposed on those who own one or more investment properties (other than their own home). The tax is calculated on the total land holdings within a particular state or territory. Land Tax is based on the unimproved value of the LAND only. The tax does not apply to any buildings.

Each state has different rates and rules. New South Wales Land Tax rates have steadily increased over the years. In NSW where the land tax threshold is $352,000 (equal to or above) at a stinging rate of 1.7%. Not surprisingly there’s considerable public concern as high land values have caught out many property holders, particularly the elderly, who’d never paid the tax before and are finding it difficult to manage.

However, in Queensland, the threshold is $500,000 (equal to or above). As property values are lower in Brisbane, than in Melbourne or Sydney, you could own 3 properties and still be exempt from paying Land Tax.

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