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TPC Gold | Can You Use Your IP’s Equity to Pay Off Your Home Loan Early?

This snippet is from one of our previous episodes: Q&A – How to Avoid Poor Loan Structure 

It’s a question we get all the time from property investors: “Can I use the equity in my investment property to pay off my home loan faster?” 

In today’s TPC Gold soundbite, Bryce and Ben unpack this exact scenario—and explain why it’s not as straightforward as it seems. 

Spoiler alert: It all comes down to how the ATO views the purpose of your loan. 

In this short but powerful episode, you’ll learn:
💸 What the ATO considers a private (non-deductible) purpose—and how that affects your tax deductions
⚠️ How redraws and lines of credit can accidentally “pollute” your loan structure
✅ Why having separate splits and clean offsets is crucial for clarity and compliance 

Want to Avoid Costly Mistakes in Your Property Finance Strategy?

If you’re thinking about refinancing, using equity, or paying off your mortgage sooner, make sure the structure is right from the beginning. 

Book a free initial appointment with an investment-savvy mortgage broker from our sister company, Empower Wealth.

Need Personalised Tax Advice?

Tax deductibility depends on your personal circumstances and how funds are used. For advice specific to your situation, book an appointment with a qualified tax accountant from our sister company, Empower Wealth.

Remember: No mortgage broker should be giving tax advice. Always speak to a registered tax professional to get it right. 

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If You Enjoyed TPC Gold | Can You Use Your IP’s Equity to Pay Off Your Home Loan Early? You Might Also Like:


Transcript

Bryce Holdaway
We’ll go on to another sort of related question as we get all these segues. This is from Dean. “Hi guys, my question is can you use equity in your investment property to wipe out your principal place of residence mortgage? Cheers, Dean.” I’ll have a go at that. 

Ben Kingsley
Yeah. 

Bryce Holdaway
I’ll have a go at the answer, and you’re the mortgage broker, so you come and tidy up the edges…but the answer is you can do it. This is a common question. So people say: If I secure against an investment property and then pay off a non-tax deductible debt like a principal place of residence, can I do it? The answer is you can do it, Ben. But the tax department looks under and they go: What was the purpose of the loan? And if you secure against your investment properties to use a loan to pay off a private non-tax deductible debt, the tax office just goes “I see what’s going on under here. The purpose of the loan wasn’t for investment. It was actually for a private purpose, therefore we will not allow the interest to be deductible.” So to answer the question, you can do it, but it’s not gonna give you any benefit.  

Ben Kingsley
No, effectively you’re going to have the same debt and it’s still going to be in the same position where it is effectively non-deductible debt. The other classic one that people do here, Bryce, is they release equity from their investment properties or their family home or whatever it may be, and then turn that into an investment property and then say: oh, no, no, no, that property’s an investment property now and I release the equity out of that to put a deposit down for my new upsized family home. Surely I can claim that because it’s against that investment property. No, purpose of funds test – in terms of what it does, that money is still non-deductible. So be very careful. People just think that they can pay loans down and then release the money against all that, and that’s going to be deductible? Not true.  

Bryce Holdaway
Love it. Ben, beware of pollution. So this is often something that people don’t think about. So for example, let’s say you do everything by the book. You set up a loan, it’s for investment purposes only. You’ve got a redraw facility Ben, and what happens is you think: well, with that redraw facility, I’m going to put all of my income into the redraw facility, and for five days, I’m going to have all the interest benefits of that. And then on a Thursday, I’m going to pull my cash out and pay for the groceries.  

Problem: The pulling out of the money just changed the purpose of the loan. You have just fully polluted that loan. So it was initially set up with an intent for investment, and the fact that you parked some money there and pulled it out for groceries at the end of the week; you have just polluted the loan. You’ve just made that loan very complicated, which is why an offset facility is cleaner and avoids the pollution over a redraw facility.  

Ben Kingsley
And while we’re at it, Bryce, and we’ve talked about this before, the other great pollution killer, or basically the interest deductible killer, is lines of credit. I get $100,000 line of credit, I use $80,000 for investment purposes, and $20,000 to buy a car. 

Bryce Holdaway
Ooh I like this one. 

Ben Kingsley
I then start paying off that car thinking that I’m paying off that portion that I took out for the car. Tax office doesn’t see it that way at all. The first $20,000 that you put in there is actually paying off the $80,000 investment debt. So this is another example of where an investment-savvy mortgage broker will separate out potentially a small amount for personal use and separate that in a different loan split for investment use. You can have multiple splits. It obviously requires a little bit more understanding and management, but ultimately it’s as simple as using your MoneySMARTS. Everything goes into that primary cap.  

Doesn’t matter if you’ve got a hundred loans under that; if one of those loans is for personal use, you’ve obviously got to pay that off. But it’ll be drawing that money from the primary account, exactly like all of the rental income you’ve got coming from all your properties will be going into that primary account. So there’s one central transactional account in which all of that money is going to be serviced from.  

Bryce Holdaway
Don’t pollute, Ben.  

Ben Kingsley
Don’t pollute, Bryce. At the end of the day, no mortgage broker should be giving tax advice. And here, we’re not giving advice, we’re just sort of saying these are the pitfalls. These are the challenges around that, so no one should be sitting here saying I heard this and I’m going to action this without actually seeking independent advice from a tax accountant. 

Bryce Holdaway
Foundational underneath that discussion Ben was cross security versus standalone, so the good thing is we were talking then about standalone options.  

Ben Kingsley
Yes. 

Bryce Holdaway
But making sure you don’t get the wrong standalone option, particularly for pollution. So great question Dean, thank you for that. Let me quickly get another one for us Ben. 

 

TPC Gold | Without THIS, Your Portfolio Is Just a Collection of Properties

There’s one mistake we see time and time again in the world of property investing—and it’s more common than you might think.

People start building a property portfolio… without ever building a plan.

They’ve got a couple of properties under their belt, the repayments are on track, and equity is starting to build. But behind the scenes, it’s all a bit cobbled together. No structure, no exit strategy, and no clear outcome in sight.

Does that sound like you?
If so, you might find our upcoming LIVE webinar really helpful. (More details below!)

In today’s TPC Gold soundbite, Bryce unpacks why having a plan is more important than how many properties you own, and what separates a strategic portfolio from a scattered collection of assets.

In this short but powerful episode, you’ll learn:
💡 Why “activity doesn’t equal achievement” when it comes to property investing
🧩 The risks of building a Franken-portfolio (and how to avoid it)
🎯 The key questions every investor must ask to stay on track

If you’re serious about financial freedom, you need more than just property…

You need a plan.

Want to Go from Confused to Confident?

Bryce & Ben will be running a FREE live webinar Tuesday 25th Feb 2025 at 7.30pm (AEDT) where they’ll walk you through their proven 5-step framework to help you build a portfolio that’s strategic, sustainable, and designed to deliver $3,000 a week in passive income.

Register now 👉 https://www.thepropertycouch.com.au/webinar or just click here!

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Transcript

Bryce Holdaway
And folks, I want to talk to you today about something that without this thing, your portfolio is just a collection of properties. Now, one of the biggest mistakes I see investors make, and I’ve seen this for years, is jumping into property without a clear plan.  

Now, at first, it looks like things are going really well. You’ve got one or two properties, the equity’s building, the repayments are being made, but here’s the truth. Without a strategy, all you’ve got is a collection of properties. It might feel like a portfolio, but unless those properties are working together towards a specific financial outcome, you’re probably just spinning your wheels. And I’ve seen people with five, six, even more properties who are no closer to financial freedom than someone with just one or two well-selected investments with a clear roadmap. Now it’s what I like to call the Frankenstein portfolio. A bit of this from a friend, a bit of that from a podcast, something they read on a forum. All stitched together, but with no real cohesion, no structure, and no real direction.  

Now, it is easy to get caught up in the excitement, especially if you’ve got borrowing capacity or a bit of equity, but unless you pause and ask some very key questions like: What’s the end game here? How many properties do I actually need? And what kind of cashflow do I want in retirement? Without those questions, you could be heading toward a future that looks very different to the one that you’d hoped for.  

Now, a true portfolio is more than just numbers. It’s about having a plan, a framework, a system that ensures each property is playing its part in helping you achieve a clear long-term goal. So if you’re sitting there thinking, I’ve got a couple of properties, but I’m not sure what comes next, you’re not alone. And the good news is we can help. We’re running a free live webinar Tuesday 25th March 2025 at 7.30pm Australian Eastern Daylight Time (AEDT).  

And in it, Ben and I will walk you through the same five-step framework we use to help thousands of Australians build property portfolios that are strategic, sustainable, and set up to deliver $3,000 a week in passive income. Now we’re going to cover three secrets. The first one is how to retire on $3,000 per week passive income with just five properties or less. The second secret is how to buy an investment property without impacting the family budget. And the third secret is how to invest with unshakable confidence, even when the headlines say the market’s about to tank. We’ll unpack how to select the right property, how to structure your loans, how to protect your lifestyle along the way, and how to avoid the costly mistakes that come from not having a plan.  

So if you’re ready to go from a loose collection of properties to a portfolio with purpose, join us at thepropertycouch.com.au/webinar. Leave your details and register; Tuesday 25th of March at 7.30 p.m. AEDT. I look forward to seeing you there. 

 

TPC Gold | Why Women Must Prioritise Financial Independence (Before It’s Too Late!)

This snippet is from one of our previous episodes: The Voice Behind “The Female Investor”! 

For far too long, women have faced systemic financial challenges—from the gender pay gap to lower superannuation balances—and the long-term impact can be significant. 

In retirement, more women than men experience financial insecurity, with many returning to the workforce, selling their homes, or facing unexpected financial struggles. 

That’s why in this TPC Gold soundbite, Ben is joined by Nicola McDougall—successful property investor and passionate advocate for women’s financial security—to discuss why financial independence is crucial for women at every stage of life. 

About Nicola McDougall 

  • Co-author of the best-selling book The Female Investor – Creating Wealth, Security & Freedom Through Property and Property Investing For Dummies (3rd Australian edition) 
  • Multi-award-winning property and finance journalist, industry spokesperson & business owner 
  • Chair of the Property Investment Professionals of Australia (PIPA)  

For Women, Property Investing is About More Than Just Wealth 

It’s about security, choice, and independence. It’s about having options, no matter what life throws your way. While women face unique financial challenges, the good news is—there are steps to take control.

Want to Build Long-Term Security & Independence? 

Grab a copy of Nicola McDougall’s best-selling book The Female Investor – Creating Wealth, Security & Freedom Through Property. 

Ready to take it a step further?

Join our LIVE webinar next week to discover how to build a property portfolio and retire on $3,000 per week. 👉 Register here!

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Transcript

Ben Kingsley
Obviously there are lot of property investment books out there but this one’s been close to your heart because you’ve been telling me about this passion to write this book for a long period of time, so this is probably where I want to give you the mic to sort of tell us what’s important to you about teaching other women – potentially single women as well – what’s the backstory there in terms of what makes this such an important project for you to be able to write this book. 

Nicola McDougall
Thanks, Ben. Well, interesting that you say single because I actually had the idea for the book in 2018. And at the time it was called the Single Girl’s Guide to Property Investment. I don’t remember if there was an epiphany of sorts or anything like that. But I guess it’s because I have written a million words about this stuff, but I also have lived and breathed it. And I am the product of all this, everything that we talk about in the book.  

I only got married a few years ago, and prior to that, I bought three properties by myself, notwithstanding the one tenant in common with my little brother, which only lasted a couple of years. So as someone who classes themselves as a feminist, I also believe in financial independence. And I really wanted, when I look around now, and I’m of a certain age where my nieces, my stepdaughter, they’ve all finished high school, they’re at uni, or they’re starting jobs. And at the other end of the spectrum, I have friends with the family or within my own family (where there are) women who are retiring now and things like that. And I’m smack bang in the middle here.  

I just really wanted to pass on everything that I’ve learned, everything that I’ve written about after all of these years to other women, whether they are young and just starting out, whether they’re around my age and in a relationship, but maybe they have a partner who is conservative risk-wise when it comes to investing. Maybe they are separated, divorced, or even widowed, unfortunately. And then there are women who are at retirement. I know I’ve spoken to a number of them who would like that their stories could have been different, which is that, you know, whilst we all would like to hope that our relationships with our significant others are still around when we’re retired, for 40-50% of us, that won’t be the case.  

Could well be that you may be a single woman in retirement who has their own property that they live in but they’re still surviving on the pension. They don’t have any additional funds, they don’t have any super. One in three Australian women have no super. You know, the demarcation between the male and female super balance starts (which it was horrific when I found this research for the book), starts when we’re in our late 20s. That difference between male and female super balances starts to move apart at that point, and it never, ever, ever catches up.  

And so to answer your question in a really roundabout way…hand on heart would love for women of all ages to prioritise their own financial futures and prioritise potentially having financial independence throughout their lives. Because no one wants to wind up in poverty; no one wants to wind up in poverty in retirement. But more elderly single women than men do. More elderly single women have to return to the workforce. More elderly single women have to actually sell the family home, and go renting in retirement and things like that. And I know it can be hard for younger women to think about that sort of stuff when they’re in their 20s and 30s. But now thanks to you guys and many others, there is so much opportunity for them to work with bonafide experts to improve their education and start forging their own financial path earlier which will give them more choices later.  

You know financial independence is something that women have never had and it’s a bit of a lofty ideal I suppose but why not? Wouldn’t it be great if we had when two people got together regardless of their gender and each were fine; they created things together, but outside of that relationship, they have their own financial independence that retained that way, as my assets do retain mine outside of my marriage. It would be better for everybody. It would reduce a huge amount of legal fees and separations and divorces. And it would reduce the number of people that are really financially struggling later in life, and certainly help the number of women out there who are nearing retirement and worried about actually having the funds to see out their twilight years. And that’s a real problem for many women. 

 

TPC Gold | Is Property Investing Worth It? What to Do When Progress Feels Slow

This snippet is from one of our previous episodes: How to Prioritise Your Property Investment Journey and Still Have a Life — Sydney LIVE Podcast ft. Q&A. 

Property investing is a long-term game, but what happens when it feels like nothing is happening?  

When life gets in the way, distractions pile up, and the market isn’t moving as fast as you’d hoped—it’s easy to start questioning if property investing is worth it. 

In this TPC Gold soundbite, we tackle one of the biggest challenges investors face: staying patient, focused, and motivated when progress feels slow. 

Here’s what we cover: 

🕰 Why property investing feels slow & why that’s normal
📉 How fear, media noise & market cycles can shake investor confidence
🛑 Why distractions & procrastination can cost you big time
🎯 How to stay committed to your investment goals—even in the “messy middle”
💡 The importance of understanding your ‘why’ to push through challenges  

So, Is Property Investing Worth It?

Absolutely—but only if you stay the course.  

Property investing isn’t about overnight wins; it’s about playing the long game and making strategic decisions. The most successful investors know how to cut through the noise, ignore the short-term distractions, and keep moving forward—even when progress feels slow. 

Want to Stay Focused & Build a Rock-Solid Property Portfolio?

🎓 Join our FREE Masterclass and learn how to build wealth through property the right way—without making costly mistakes or losing momentum. 

👉 Register here: https://masterclass.thepropertycouch.com.au/how-to-build-a-property-portfolio 

__________________

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Transcript

Bryce Holdaway
Hey our first question is from Louise who is one of our guests later today. She says: My single biggest challenge with my property investment journey has been keeping the momentum and not getting distracted or bored along the way. Property investing seems to sometimes move at a glacial speed and it’s easy to get a bit disheartened when you don’t see obvious progress. Ben, I wish I had this printed this a bit bigger.  

Ben Kingsley
I was going to say… 

Bryce Holdaway
It’s also easy to let life get in the way and not prioritise my investment journey. I delayed on a purchase by two years, Louise. Missing out on some great capital growth in Sydney because I was distracted by family and work life. Lou, Ben.  

Ben Kingsley
Lou, there’s a couple of things in there. The first one is, and we’re going to get distracted more and more around the sentiment and the confidence piece that’s happening in the market. We’re already seeing, you know, credit squeeze, Royal Commission, APRA, those types of things are going to get worse and worse. And papers sell on fear, and so we’re going to see more and more of this sentiment and confidence challenge. So what’s interesting for me around that story and around timing and having patience is I’ve always believed that you should invest in property when you can afford to invest.  

And we’ve also talked about there’s different times in the market and there’s different markets within markets. So we still believe that there’s going to be really good buying opportunities but it comes back to this position that if I listen to the noise, I’m like the 95% of people who don’t create financial wellbeing.  

So if I follow that noise and I take my eye off the prize, why should I be taking advice from people who haven’t got successful? Why should I take advice from a journalist who needs to put out a story around that? So if you can maintain the focus on the long journey, and in my case, yes, I’ve been investing, as you know, since I was 23. And here’s an interesting fact for you, because I haven’t publicly stated this before, but I’ve bought six properties, that’s it. Six properties.  

Now a lot of people might be thinking, wow, I would have thought he might have 10, 12, 25, 30, or I could have bought 20 properties on my credit card in Detroit in the GFC, because I could buy them for about $800. But you’ve never heard me talk about my number, because it’s not necessarily relevant to the story of my success. They’re just damn good properties.  

And I’ve timed them out accordingly and you never hear or see our business gloat about 500% returns on investment and all those types of things. Because each of you are in different stories and every property that we try our best to buy is a challenge. And it’s usually under competition because if we’re buying property that aren’t under competition, we’re shopping in the wrong location. So I think from that point of view is: be patient. The greatest investors are patient; but strike when you’re in the position to strike and that means don’t procrastinate, don’t let the noise disrupt your view. And there was another great question from Nick. We read the questions guys and so I don’t know whether we’ll get to Nick’s question… 

Bryce Holdaway
We will. 

Ben Kingsley
…but it was about how do you cut that noise out? Simple, don’t be a sheep, don’t follow everyone else. The trailblazers are the people who see opportunity in these markets. And that’s what’s going to be happening because yeah, if we take a macro generalistic view, I think property is going to be sluggish for probably the next 36 months. Now if it’s like that, well do I just wait? The answer to that is no, because I’m not buying the Australian property market. There’s still going to be opportunities inside that market that if it meets my brief, I go.  

Because if I’m going to be buying, I know that economic cycles are real. They’re based in academia, they’re proven, they move in cycles. We’ve come off the top of the cycle in Sydney, we’re getting to the top of the cycle in parts of Melbourne, so that’s okay. And then once the next cycle moves through, because remember, we’re not speculating in property. We’re buying property for the long term so we can live off the passive income that it’s going to generate for us once we get the debt in order.  

Bryce Holdaway
How many people in the room are goal setters? I mean, sort of set them at the beginning of the year, write them down, and follow them. So we’ve got a few, which is great.  

Ben Kingsley
It’s probably consistent with most people who plan to become what they plan to become.   

Bryce Holdaway
But I guess the reason for saying that is because I’ve been a frustrated goal setter for about 20 years now. I remember my little Datsun 323 at university. Air conditioning…we had the windows down and the roof open down the freeway. And I had a little Zig Ziglar tape. Who’s Zig Ziglar? Anyone? Yeah, put it in. It was goals. And I remember listening to that. And I thought he had the framework, the way that you’d set it out, what you had to do. And I thought, this is it. I’m going to do this. And because I’m a perfectionist, I thought, well, I’ve got to fully plan it out and make sure I know what I’ve got to do… and by nature that was a frustrating exercise and I never got around to it but I think each year I’d have to do it.  

Long story short I finally nailed the process this year. I’ve set nine goals – they’re all date stamped, they’re specific, they’re measurable, they’re actionable, they’re results driven. And what the difference was for me is part of that process is I had to go to the why of each goal and really drill down into the why of each goal, because there comes a time when you get to what’s called the messy middle. And that’s where you’ve got all this enthusiasm when you start your investment property journey. We love it, we’ve read the books, we’re fired up, we see it’s a better future. And then at the end of it, we hopefully get to passive income. But somewhere in the middle, Louise, is the messy middle.  

And so what happens is I now review those goals every day. It takes me 90 seconds. But then once a week, I look at them at length. And what I do is I go through these four or five bullet points on every goal. And it reminds me why I’ve set those goals. And it helps me when I get to the messy middle to remember why they’re there in the first place. So what I’d say is a lot of people come into our business and they see our book and it’s got $2,000 per week and they go, that’s what I want. And we can get to work and say, okay, let’s do what we need to do to get to work, but we need to realise that at some point you are going to hit the messy middle. So we need to ask better questions, right? So if someone comes in and says, I want $2,000 a week passive income; it’s our job to go: What for? Well, I want financial freedom. Okay, what for? I want to spend more time with my kids. We’re starting to get close now. We go, okay, so next question, if we’re skilled enough, we’ll go, what for? And the person will come in.  

Ben Kingsley
They don’t go exactly like this by the way.   

Bryce Holdaway
It’s a bit more subtle than that. But ultimately we’re trying to peel back the layers, right? So the person who comes in and says I want $2,000 a week, who then wants financial freedom, who then wants to spend more time with their kids, if we get to the crux of it, it’s because my dad never spent any time with me and I don’t want to be that dad with my kids, right?  

And I’ve just described a little bit of my own journey and my own why, because my dad was born in 1939. He’s a very wonderful father but he wasn’t around, right? And so I make it a priority each morning; I’ve decided that the breakfast meal is the meal that I want to spend with my kids every day because they’re most energetic, they’re most vibrant and they’re most up and about versus dinner at night where my wife is in the front row. She has to deal with that every single day.  

So for me, I’m always trying to work out the why. So that would be the first thing I’d be working with you Louise, is what’s the why? And I know that’s a real sort of statement “what’s your why?” but I’d really want to drill down as to why it is you’re building portfolio and what it is that’s driving you, so that we could remind you of that when you get into the messy middle. 

 

How Much Land Tax will I pay? (2025 Update)

Last updated: 1 March 2025

Land tax in Australia is a state or territory levy on land ownership, calculated annually based on the unimproved land value. Generally, it doesn’t apply to owner-occupied homes (principal place of residence) but does impact investment properties, commercial properties, and vacant land.

On the podcast, we get heaps of questions about land tax—how it’s calculated, whether investors should be worried, and which states have the trickiest rules. In fact, back in 2022, we saw a flood of questions when Queensland announced a new land tax, only to scrap it a month later after major backlash. 😌

 

Is Land Tax the same as Property Tax?

A common question we get is whether land tax is the same as property tax. While they might sound similar, they’re actually different. Land tax is based on the unimproved value of the land (excluding buildings or improvements) and is typically levied on investment properties, commercial properties, and vacant land.

Property tax, on the other hand, is a broader term that can refer to different things depending on the context. Internationally, it often refers to a general tax on the total value of a property (land + buildings), paid annually by both owner-occupiers and investors. In Australia, we don’t have a broad-based annual property tax across all properties, but some state-specific property taxes do exist.

 

Australian Land Tax Breakdown: How Much Will You Pay?

Since each state and territory has different thresholds, rates, and rules, we’ve pulled together all the key details  in one spot for our borderless investor community. Keep in mind that land tax rates can change depending on how the property is owned (e.g., individuals, trusts, or companies). Below is a state-by-state summary of land tax regulations for individual owners, including links to get more details.

 

State/
Territory
Thresholds and Rates More Information
New South Wales (NSW) General threshold: $100 plus 1.6% of land value above the threshold, up to the premium threshold.
Premium threshold: $88,036 plus 2% of land value above the threshold.
Land tax is applied for the full year following the taxing date of 31 December, and no pro-rata calculation applies.From 2024 onwards, the general threshold is $1,075,000 and the premium threshold is $6,571,000.
Revenue NSW
Victoria (VIC) From 2024 land tax year, the general rates are:

  • Less than $50,000: Nil
  • $50,000 to less than $100,000: $500
  • $100,000 to less than $300,000: $975
  • $300,000 to less than $600,000: $1,350 plus 0.3% of amount above $300,000
  • $600,000 to less than $1,000,000: $2,250 plus 0.6% of amount above $600,000
  • $1,000,000 and above: Click here.
State Revenue Office Victoria
Queensland (QLD) For individuals:

  • Less than $600,000: Nil
  • $600,000 to $999,999: $500 plus 1 cent for each $1 more than $600,000
  • $1,000,000 to $2,999,999: $4,500 plus 1.65 cents for each $1 more than $1,000,000
  • $3 mil and above: Click here.
Queensland Revenue Office
South Australia (SA) 2020-21 General Rates:

  • Does not exceed $732,000: Nil
  • Exceeds $732,000 but not $1,176,000: $0.50 for every $100 or part of $100 above $732,000
  • Exceeds $1,176,000 but not $1,711,000: $2,220 plus $1.00 for every $100 or part of $100 above $1,176,000
  • $1,711,00 and above: Click here.
RevenueSA
Western Australia (WA) General Rates:

  • Up to $300,000: Nil
  • $300,001 to $420,000: $300
  • $420,001 to $1,000,000: $300 + 0.0025 dollars for each $1 in excess of $420,000
  • $1 mil and above: Click here.
Department of Finance WA
Tasmania (TAS) General Rates:

  • Up to $124,999.99: Nil
  • $125,000 to $499,999.99: ​$50 plus 0.45% of value above $125 000​
  • $500,000 and above: ​$1 737.50 plus 1.5% of value above $500 000
State Revenue Office Tasmania
Australian Capital Territory (ACT) Marginal rates that apply to property AUV (Average of the Property’s Unimproved Value over up to 5 years)

  • Up to $150,000: 0.54% of the AUV of the property
  • From $150,000 to $275,000: $810 plus 0.64% of the part of the AUV that is more than $150,000
  • From $275,001 to $1,000,000: $1,610 plus 1.24% of the part of the AUV that is more than $275,000
  • From $1,000,000 and above: Click here.
ACT Revenue Office
Northern Territory (NT) The Northern Territory does not currently impose land tax. Territory Revenue Office

It’s important to note that land tax generally applies to investment properties, commercial properties, and vacant land. Owner-occupied properties (principal places of residence) are typically exempt from land tax. However, specific exemptions and thresholds vary by state and territory. For detailed information on exemptions and specific calculations, please refer to the respective state or territory revenue office websites linked above.​

 

How are they calculated?

Land tax is calculated annually based on the combined unimproved value of taxable landholdings. Each state and territory has its own method of valuation and assessment. Generally, the process involves:​

  • Valuation of Land: The unimproved value of each parcel of land is determined by the state’s Valuer-General or equivalent authority.​
  • Aggregation of Landholdings: The total unimproved value of all taxable land owned by an individual or entity is aggregated.​
  • Application of Thresholds and Rates: The aggregated value is compared against the state’s land tax thresholds, and the applicable rates are applied to calculate the tax payable.​

For precise calculations and to understand how land tax may apply to your specific situation, it’s advisable to consult the relevant state or territory revenue office or seek professional advice from a qualified tax accountant.

 

Are there any Land Tax Exemptions and Relief?

There are several land tax exemptions and relief measures available across Australia, but they vary by state and territory. Common exemptions include land used as a principal place of residence, primary production land, and certain non-profit or charitable uses.

Some states also offer relief for properties affected by natural disasters or hardship. Since eligibility rules and application processes differ, it’s best to check directly with the relevant state or territory revenue office for the most up-to-date information.

 

Need expert guidance on land tax? Our sister company at Empower Wealth offers specialised tax accounting services to help property investors navigate land tax obligations, optimise deductions, and build sustainable tax structures that support your future goals. Get in touch today here!

Disclaimer: The information in this blog is intended for general informational purposes only and is based on current land tax rates and regulations at the time of writing. Land tax laws and thresholds are subject to change, and rates may vary over time. We recommend checking with the relevant state or territory revenue office or consulting a qualified tax professional for the most up-to-date and personalised advice.

 

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