What is land tax in Australia and who has to pay it?

Mechanic: state land records publish the unimproved land value annually. State revenue office aggregates land value across all the properties you own in that state, calculates land tax against the aggregate, applying the threshold + progressive rate. Bills land in mid-year (July-Sept depending on state).

Thresholds (2026, verify current): NSW $1,075,000 + above. VIC $50,000 (no PPOR exemption above $300K aggregate from 2024). QLD $600,000. WA $300,000. SA $755,000. TAS $50,000. ACT property-by-property based on AUV. NT: no land tax. PPOR exemption applies in every state for your principal home.

Foreign-owner surcharge: NSW + 4% on every foreign-owned property regardless of land value. VIC absentee-owner +4%. QLD foreign-corporation +2%. SA +2%. WA + ACT +0.75-3%. Stacking: foreign owner of a $1.5M VIC IP can pay $40-60K combined land tax annually if the property hadn't been bought before the surcharge regime started.

Planning: spread holdings across states (each gets its own threshold), hold in family-trust structure (separate trustee = separate threshold), or hold in personal name vs spouse name (trustee-shifting tactics). Consult a tax adviser, the specifics depend on the state, the structure, + your existing portfolio. Don't assume the marketing-supplied 'land tax estimate' from a sales agent is accurate for your situation.