Land Tax for Trusts and Companies in Australia: State-by-State 2026 Guide

Why structure matters

Land tax is not just about the property. It is also about the owner.

The same property can produce a different land tax bill if it is owned by an individual, joint owners, a company, a discretionary trust, a unit trust, a fixed trust, a super fund or an absentee owner.

That is why investors should check land tax before choosing a structure.

The common trap

A structure that looks good for asset protection or estate planning can be expensive for land tax.

Trusts are the classic example. In some states, trusts get a lower threshold or no threshold. Companies can also face different rates. Foreign or absentee ownership can add surcharges.

The right question is not "can I buy in a trust?" The right question is "what does the structure do to annual holding costs?"

Victoria

Victoria has one of the sharpest land tax structure differences.

The State Revenue Office lists general land tax rates from $50,000 of taxable land holdings. Trust surcharge rates start from $25,000. Absentee owner surcharge rates can apply on top, with Victoria listing a 4% surcharge from the 2024 land tax year.

For a Victorian investor, the structure decision can easily move the annual tax bill by thousands of dollars.

NSW

NSW has a general threshold of $1,075,000 and premium threshold of $6,571,000 for 2026.

But Revenue NSW states that the tax-free threshold does not apply to land owned as part of special or discretionary trusts.

That means a trust can create land tax where an individual owner may have had no land tax bill at all.

Queensland

Queensland uses different thresholds and rates by owner type.

For individuals, Queensland Revenue Office says land tax applies if the total taxable value of freehold land at 30 June is $600,000 or more. Land owned as trustee is assessed separately using the rates for companies and trustees, while a trustee of a special disability trust is assessed using individual rates.

For companies and trustees, the threshold is lower. That means a property structure that works in NSW may not work the same way in Queensland.

When a trust may still make sense

Land tax is not the only factor.

A trust may still be appropriate for:

• Asset protection.
• Estate planning.
• Family succession.
• Income distribution, subject to tax law.
• Holding property with multiple family interests.

But the land tax cost should be part of the decision, not a surprise after purchase.

Practical checklist

Before buying in a trust or company:

1. Ask for an annual land tax estimate under each structure.
2. Check whether the structure receives a threshold.
3. Check whether foreign or absentee surcharge rules could apply.
4. Check whether grouping or related company rules apply.
5. Compare land tax against asset protection and succession benefits.
6. Model the property yield after land tax.
7. Get advice before signing, not after settlement.

Bottom line

Trusts and companies can be useful structures, but they are not automatically land-tax efficient.

For investment property, the annual land tax cost can change the entire return profile. Before buying, run the property through the Land Tax Calculator, then test the after-tax cash flow with the Investment Property Yield Calculator.

Sources: State Revenue Office Victoria land tax current rates and absentee owner surcharge guidance; Revenue NSW land tax thresholds and trust guidance; Queensland Revenue Office land tax rates for individuals, companies and trustees. This article is general information, not tax, legal or financial advice.