Land tax

Land tax is an annual state tax on the unimproved (land-only) value of property you own above a threshold, with your PPOR generally exempt. Each state has its own threshold, rate schedule, and assessment date - NSW assesses at 31 December, VIC at 31 December, QLD at 30 June. Importantly, the thresholds apply per state, not nationally, so a multi-state portfolio can keep each state's bill under its threshold while a portfolio concentrated in one state quickly tips over. Some states tax foreign owners at significantly higher rates, and most states have an absentee/non-resident surcharge stacked on top. Land tax is a deductible expense for investment properties.