So, your SMSF owns property (or is about to), and you’ve nailed the setup, the structure, and the strategy. Love that for you.
But have you factored in land tax?
Because here’s the thing: land tax is one of those sneaky little costs that can quietly eat away at your super returns if you don’t plan for it. It’s state-based, complex, and wildly inconsistent – but we’re here to break it down for you, SMSF House style.
Let’s talk thresholds, traps, and trustee tips.
First up – what even is land tax?
Land tax is an annual tax charged by each state or territory on the unimproved value of land you own (excluding your home). It’s based on your land’s value without the buildings or improvements – and it kicks in once you hit a certain threshold.
If your SMSF owns investment property, you’re in the firing line. And unlike individuals, SMSFs don’t get the warm-and-fuzzy exemptions for homes or family farms. Cold, hard land tax applies.
State-by-State Land Tax Breakdown (2024–25)
Land tax rules vary wildly from state to state.
We’ve cut through the confusion to give you the essentials—all in one place.
| State/Territory | Threshold | Rates |
|---|---|---|
| Queensland (QLD) | $350,000 | 0.2% to 2.75% |
| New South Wales (NSW) | $969,000 | 1.6% to 2% |
| Victoria (VIC) | $50,000 | 0.375% to 2.55% |
| South Australia (SA) | $450,000 | 0.5% to 2.4% |
| Western Australia (WA) | $300,000 | 0.25% to 2.67% |
| Tasmania (TAS) | $50,000 | 0.55% to 1.5% |
| Australia Capital Territory (ACT) | No threshold – uses rates system | n/a |
| Northern Territory (NT) | No land tax | n/a |
How Land Tax Could Affect Your SMSF (State by State)
Even though the rules differ across Australia, one thing’s for sure—if your SMSF owns property, land tax will come into play. Here’s what to keep in mind, broken down by state and territory:
Queensland (QLD)
QLD looks at the total value of all land you own—including property outside QLD—to calculate land tax. But depending on how your SMSF is set up, you might be able to avoid this. Definitely worth checking with your accountant or advisor.
New South Wales (NSW)
You won’t pay land tax until your property’s land value hits a higher threshold compared to other states. But SMSFs don’t qualify for any exemptions, so if your property is worth a decent chunk, expect a tax bill.
Victoria (VIC)
Victoria has one of the lowest land tax thresholds in the country. That means even smaller property investments in your SMSF can trigger tax. Plus, if your fund owns multiple properties, their land values are added together.
South Australia (SA)
SA combines the land value of all properties your SMSF owns in the state—even if they’re in different structures or trusts. SMSFs don’t get any land tax discounts or exemptions here, so it can add up quickly.
Western Australia (WA)
If your SMSF co-owns a property with another person or entity, WA will assess your land tax as if your fund owns the whole thing. Yep, really. Even owning just a slice could land you with a bigger bill.
Tasmania (TAS)
The threshold in Tassie is low, so you’ll reach the taxable limit pretty quickly. And with more investors buying up property, land values are on the rise—which means land tax is too. Factor it into your SMSF budget.
Australian Capital Territory (ACT)
ACT doesn’t charge traditional land tax. Instead, every property—including those owned by SMSFs—is charged ongoing quarterly rates based on land value. Different name, same impact on your cash flow.
Northern Territory (NT)
There’s no land tax in the NT (hooray!). But before you jump in, be smart—check whether the rental income, local demand, and long-term growth stack up for your SMSF’s goals.
6 SMSF Land Tax Lessons (That Could Save You Thousands)
- Your SMSF isn’t special
No principal residence = no exemptions. The taxman doesn’t care if you’re saving for retirement. - Structure matters – big time
A property held in a bare trust (for LRBAs) can still attract land tax. Some states treat trusts harshly – so setup counts. - Low thresholds = big bills
Especially in VIC and TAS. That ‘cheap’ land may come with a nasty annual sting. - Aggregation is a silent killer
States like VIC, SA, and QLD count all your land in that state – sometimes across entities. Multiple properties? Watch your totals. - You can object to valuations
Think your land value is inflated? Lodging an objection can shave down your tax bill – but there’s a deadline, so act fast. - Plan ahead (like a boss)
Include estimated land tax in your SMSF’s budget. Especially if you’re running a strategy with multiple properties or buying in land-tax-heavy states.
Is it worth it? Absolutely.
Yes, land tax adds to the cost of owning property in your SMSF – but with the right strategy and structure, you can still come out ahead. It’s all about knowing the rules, running the numbers, and planning with purpose.
That’s where SMSF House comes in. We know the ins and outs of SMSF property investing – including how to navigate land tax across the states. We’ll help you structure smart, stay compliant, and keep your fund on track to thrive.
Not Sure How Land Tax Will Impact Your SMSF? Let’s Map It Out.
Don’t let land tax catch your fund off guard. Whether you’re buying your first SMSF property or building a portfolio across states, we’ll help you:
- Understand what you’ll owe (and when)
- Structure smart to avoid nasty surprises
- Stay compliant and cash flow confident
Book a free strategy call with SMSF House today
Disclaimer
The information provided in this article is general in nature and is intended for educational purposes only. It does not constitute financial, legal, or tax advice and should not be relied upon as such. While SMSF House takes care to ensure the accuracy of information at the time of publication, land tax rules and thresholds may change and vary by state or territory. SMSF House is an accounting firm and does not provide financial advice. We recommend that SMSF trustees seek independent legal, tax, or financial advice that is tailored to their individual circumstances before making any decisions related to land tax or property investment within their SMSF.