Land Tax Shock 2026: How NSW, VIC & QLD Changes Hit Property Investors
The Three Changes Hitting on 1 July 2026
NSW: The Rate Freeze Ends
In 2020, NSW froze its land tax thresholds at $755,000 (general) and $4,616,000 (premium) as a COVID relief measure. For five years, rising land values meant more investors crossed the threshold — but the threshold itself didn’t move.
From 1 July 2026, thresholds revert to indexed values. Revenue NSW is expected to set the general threshold around $1,075,000based on the three-year average of land values. While this sounds like a “higher” threshold, many investors who bought in the 2020-24 boom now sit well above it.
After: Threshold resets to ~$1,075,000 (est.). Rates unchanged, but recalibrated brackets mean properties valued $1M-$1.5M see the biggest shift.
VIC: The 1.65% COVID Debt Levy Becomes Permanent
Victoria introduced a “temporary” COVID Debt Levy in 2021 at 0.5% on land holdings above $1.8M. It ratcheted up annually: 1.0% in 2022, then 1.65% from 2024. The Andrews and Allan governments described it as a time-limited measure to repay pandemic-era borrowing.
In 2026, the levy is legislated as permanent. It stacks on top of Victoria’s already-progressive general rates, creating a combined effective rate that reaches 3.9% for holdings above $3M — the highest of any Australian state.
QLD: Mid-Year Fiscal Review Surcharge Hike
Queensland’s 2024 Mid-Year Fiscal and Economic Review (MYFER) introduced higher surcharges for interstate investors and tightened aggregation rules. The foreign investor surcharge increases from 2% to 3%, and the state doubled down on its controversial interstate land tax aggregation — meaning property held in other states can push you into a higher QLD bracket.
For investors with portfolios spanning NSW and QLD, the aggregation effect is particularly punishing. A $600K QLD property that would normally sit below the threshold can attract land tax once your total national portfolio is assessed.
How Much More Will You Pay?
Use the calculator below to compare your land tax bill before and after the 2026 changes. Select your state, owner type, and land value — the calculator applies the actual published rate schedules and announced changes for each state.
State-by-State Rate Comparison
The table below compares the five major states across key land tax dimensions. Pay attention to trust and foreign surcharges — they can more than double your effective rate.
| NSW | VIC | QLD | SA | WA | |
|---|---|---|---|---|---|
| Threshold | $1,075K* | $300K | $600K | $450K | $300K |
| General rate | 1.6–2.0% | 0.2–2.25% | 1.0–2.75% | 0.5–3.6% | 0.25–2.6% |
| COVID/extra levy | None | 1.65% | None | None | None |
| Trust surcharge | 1.6% | 0.375% | 0.5% | 0.5% | None |
| Foreign surcharge | 4.0% | 4.0% | 3.0%† | 2.0% | 7.0% |
| Aggregation | Intrastate | Intrastate | Interstate | Intrastate | Intrastate |
| 2026 change? | Yes* | Yes† | Yes† | No | No |
* NSW threshold estimated based on 3-year average indexation. † VIC COVID levy now permanent; QLD foreign surcharge up from 2% to 3%.
The 3D visualisation below shows the effective rate at $1M land value for each state. The height of each block represents the rate — the taller the block, the more you pay. Hover to see details.
The Hidden Traps: Trusts, SMSFs & Foreign Investors
Discretionary Trusts
Every state except WA imposes a trust surcharge on land held by discretionary (family) trusts. Victoria’s 0.375% surcharge is modest on its own, but stacked with the 1.65% COVID levy and progressive general rates, trust-held land above $1.8M faces an effective rate 40-60% higher than individually owned land.
In NSW, the trust surcharge is a flat 1.6% — significantly higher than Victoria’s percentage, but applied without the COVID levy stacking. For a $2M portfolio, NSW trust surcharge adds $32,000; in VIC, the combined effect adds approximately $38,500.
SMSFs
Land held by an SMSF trustee is assessed for land tax like any other entity. In Victoria, SMSF-held property attracts the trust surcharge. In states with aggregation rules, the SMSF’s land can be aggregated with the member’s personal holdings, potentially pushing the combined total into a higher bracket.
This becomes especially relevant for investors who hold one property personally and another through their SMSF in the same state.
Foreign Investors
Foreign investor surcharges have been climbing steadily. WA now charges 7%, and QLD’s MYFER lifted its surcharge from 2% to 3%. These surcharges apply on top of all other rates — including COVID levies and trust surcharges where applicable.
What You Can Do Before 1 July
Not every strategy works for every investor — but understanding your options before the new rates land gives you time to act.
Your land tax is based on the Valuer General’s assessment, not your bank valuation or purchase price. Request a current notice of valuation from your state revenue office. If you believe it’s inflated, you can object — but the window is typically 60 days from issue.
If you hold property through a discretionary trust in VIC or NSW, the trust surcharge adds a material cost. In some cases, transferring to a fixed trust or individual ownership can eliminate the surcharge — but watch for CGT and stamp duty consequences. Get advice specific to your situation.
QLD aggregates interstate holdings. If you own $800K in QLD and $1.2M in NSW, QLD assesses you on $2M — pushing you well above the $600K threshold. The only escape is to hold each state’s property in separate entities, which has its own complications.
Land tax is typically assessed on a snapshot date (31 December in most states, midnight on 30 June in QLD). If you’re buying, settlement timing can determine which year’s rates apply. A purchase settling on 2 January vs 30 December could mean a full year’s difference.
With three states simultaneously changing rates, the “cheapest state for investors” calculation has shifted. SA and WA are now materially cheaper for mid-range portfolios ($1M-$3M). Use the calculator above to compare your specific scenario.
Which State Hits Your Portfolio Hardest?
Answer five questions about your investment portfolio to find out which 2026 land tax change affects you most — and what to do about it.
How Lodgey Helps
Land tax is one of those costs that surprises investors because it arrives separately from your income tax return — and the rules differ in every state. Lodgey tracks your property portfolio across states, monitors land tax assessment dates, and keeps your evidence pack current so you never miss a valuation objection window.
When a state announces a rate change, Lodgey models the impact on your specific portfolio and flags it in your review inbox — before the assessment notice arrives. No more scrambling to understand a bill you didn’t expect.
See a personalised estimate of what you're likely leaving with the ATO — and how quickly Lodgey pays for itself. 60 seconds, no sign-up required.
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