How to minimise land tax

One of the most common issues I see happen to investors who focus on buying in one location only is land tax.

This is especially so if that market has had a strong price growth period, so the values of their holdings increased significantly.

Perhaps at the start of the year they were under the threshold, but by the end they had tipped over and were now liable to pay the relevant State Government more of their hard-earned money.

The key is, of course, is that it doesn’t have to be that way.

In fact, I have yet to pay one cent of land tax in my own personal portfolio, and these are the reasons why.

Diversity is key

Like so many other elements of property ownership in Australia, land tax is state-based with each having different payment thresholds.

While that might seem a little painful because of the different value limits, in reality it is a situation that can be financially beneficial for investors.

You see, my portfolio is spread across a number of different states, where I have yet to hit the thresholds.

Ditto, with our clients, who invest in real estate in the best markets across the country.

Not only does that mean they’re making the most of market conditions in diverse locations, they also are able to keep under the relevant land tax considerations in each state.

Of course, it’s important to realise that land tax is based on the land value – not the purchase price of the property – so there are opportunities to buy a number of properties in one location without worrying too much about paying land tax.

Ownership diversity

As well as buying in diverse locations, investors can also opt to buy in different names.

For example, my personal portfolio has a mix of properties in my name and in my wife Sophie’s name, too.

That’s because land tax is based on an individual’s assets and taxation position.

By owning property in different names, within the legal limits of course, you can minimise land tax as well.

A statement I’m often initially told by our many clients aged between 20 and 40 is they want to “set up a trust”.

Usually they say it’s for “protection and taxation purposes” but they often misunderstand the positives and negatives of using trusts as an ownership structure for property.

Now that is a blog for another day, but in short, buying property in a trust may mean you have to pay land tax from day one as there is no threshold as such, plus there are significant costs involved in setting up and maintaining one to boot.

Another diversification option when it comes to land tax, however, could be dwelling type.

While I am currently recommending clients buy established houses because of the favourable market conditions in many locations, established townhouses or units could be an option for people with affordability constraints.

In fact, buying an affordable house with development potential could achieve the same purpose in the future now I think about it.

What I mean is that most buyers can’t afford a house in Coogee, for example, but they could purchase an established unit, plus those types of dwellings are always in strong demand from renters in that location as well.

At the end of the day, we all have to pay our fair share of tax during our working and investment lives.

While our contributions help support those less fortunate than ourselves, that doesn’t mean that investors can’t be strategic with their location selections that will improve their overall chances of capital growth – with a happy by-product being a slightly smaller hit to their back pockets in taxes.


State by state land tax information

Australian Capital Territory

New South Wales

Northern Territory


South Australia


Western Australia


High-Performance Property Investment in
5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh

Related Post


Respecting your Privacy

Your Property Your Wealth Pty Ltd (YPYW) is committed to supporting the Australian Privacy Principles for all fair handling of Personal Information which set clear standards for the collection, use, disclosure, storage of and access to Personal Information collected during the course of business operations and compliance with the Privacy Act 1988 (Commonwealth) and its amendments (the Act), and the Australian Privacy Principles (APPs) set out in that Act. You can see the full text of the APPs online at the Office of the Australian Information Commissioner’s website at:

Personal Information means your name, mailing or residential address, telephone number, email address and other transaction and registration details including the company you work for and your role and financial information, including credit card information and information collected from credit reporting agencies.

Our respect for your rights to the privacy of your personal information is paramount.  We have policies and procedures in place to ensure that all personal information, no matter how or where it is obtained, is handled sensitively, securely and in accordance with the APPs.

This Privacy Policy sets out:

  • What sort of personal information is collected and stored;
  • How information is collected and used;
  • What happens if you choose not to provide the required information; and
  • How you can request access to the personal information we hold about you.

From time to time it may be necessary for YPYW to review and revise this Privacy Policy. We reserve the right to change our policy at any time. Amendments or replacements of the Privacy Policy will be posted on our website.

Collection of Your Personal Information

We only collect personal information relevant to our business relationship with you so that we can provide our services and products. We may collect your personal information:

  • directly from you including via telephone, email or facsimile;
  • when your register on our website;
  • when you place an order or service request with us;
  • where you access and interact with our website;
  • from other sources including a third party such as credit reporting; and
  • any correspondence we receive from you.

Is your personal information secure

Where you submit personal information, we manage it by using up-to-date techniques and processes that meet current industry standards to ensure that your personal information is kept secure and confidential. We also take measures to destroy or permanently de-identify personal information if it is no longer required.

Use and Disclosure of Personal Information

You acknowledge and consent that by providing your personal information to us that we may use and disclose your personal information for the purpose for which it was collected or for a related or ancillary purpose such as:

  • supply of our services and products to you in accordance with our Terms and Conditions and any agreement entered into with you, to facilitate, process, carry out and respond to your request;
  • to our third party service providers to assist us in providing and improving our services and products to you and developing, improving and marketing our services and products to you;
  • for regulatory reporting and compliance with our legal obligations, to various regulatory bodies and law enforcement officials and agencies to protect against fraud and for related security purposes;
  • to the seller or supplier of any products to you for the purpose of ascertaining and obtaining any information required to perform our services for you;
  • to identify you and conduct appropriate checks, including credit checks;
  • set up, administer and manage our services and products and systems, including the management and administration of an account;
  • to train and develop our staff to better provide services to you;
  • to contact you; and
  • to our successors and/or assigns

What happens if you do not want to disclose personal information?

You have no obligation to provide any personal information requested by us, but if you choose to withhold personal information, we may not be able to provide you with the products and services that depend on the collection of that information.

Removing your personal information

You may contact us at any time in writing and request that we remove and delete your stored personal information.

Providing Personal Information About Another Person

You represent to us that where you provide personal information to us about another person, you are authorised to provide that information to us, and that you will inform that person who we are, how we use and disclose their information, and that they can gain access to that information.

Linked Sites

YPYW’s website may contain links to websites which are owned or operated by other parties. You should make enquiries as to the privacy policies of these parties. We are not responsible for information, or the privacy practices of such websites.

How can you access your personal information?

You may in writing request access to personal information that we hold about you. We will provide you with access to personal information in accordance with the Act and APPs and we may not grant you access to the personal information that we hold where the APPs allow us to do so. If you are refused access to information, we will provide you with reasons for the refusal in writing.

How to contact us

If you have any questions in relation to privacy, please contact us on 0490 912 045 or email Daniel Walsh – For more information about privacy law please visit

High-Performance Property Investment in 5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh