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Apartments can still create land tax
Many investors assume land tax only matters for houses because apartments have a smaller land component. That is not always safe. Land tax is usually based on site or unimproved land value, and the apartment owner's share can still be taxable when combined with other land.
The risk is higher where thresholds are low, where the owner already holds other taxable land, or where the apartment is owned through a trust or company.
What to check
Ask for the land value or site-value share, then add any other taxable land you own in that state. Check whether the owner type changes the threshold.
Use the Land Tax Calculator for Victoria or the NSW Land Tax Calculator for NSW. Then add the annual bill to the Rental Yield Calculator.
Bottom line
An apartment's land component may be smaller than a house, but land tax can still matter. Always model it before comparing rental yields.
Sources: State revenue office land tax guidance. General information only.
RealEstateCalc Editorial
Property & Finance ResearchThe RealEstateCalc editorial team researches and writes about Australian property, finance, and tax topics. All content is fact-checked against official sources including the ATO, state revenue offices, ASIC Moneysmart, and the RBA.
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