REALWorld Law

Taxes

Ongoing taxation

What taxes (if any) are payable by the owner of real estate on a recurring basis and can these be reduced or offset in any way?

Australia

Australia

Land tax may be payable annually by the land owner depending on the unencumbered value of the real estate. The amount of land tax payable depends on the Australian state or territory in which the property is located and various other factors including, among others, the land value and the type of corporate vehicle which owns the land (eg trust or company). For example, in New South Wales land tax is levied at the rate of 1.6 percent to 2 percent of the land value.

Foreign owners of land may also be subject to additional land tax surcharges in New South Wales (for residential property) and Victoria (for all property).

Also, certain exemptions are available in most Australian states/territories (eg land used for primary production such as forestry plantations).