New year, new land tax considerations – what NSW, VIC and QLD property owners need to know for 2026

As we head into 2026, NSW, VIC and QLD property owners should take a moment to revisit their land tax position. While some settings remain unchanged, other rules are now firmly in place and may affect whether you qualify for key exemptions, particularly if you share ownership of your home or hold property through more complex structures. 

If you are in NSW or VIC, land tax assessment notices have already begun to be issued, making now the ideal time to understand what applies to you and avoid any surprises. 

Land tax thresholds for 2026 

Each state’s land tax thresholds for the 2026 year remain unchanged. 

NSW: 

• General threshold: $1,075,000 

• Premium threshold: $6,571,000 

VIC:

• General threshold: $50,000

• Trusts: $25,000

QLD: 

• General threshold: $600,000 

• Absentees, companies, trusts and super funds: $350,000 
   

These thresholds continue to be frozen, rather than indexed to property values. While this may seem good on the surface, rising land values mean more property owners are gradually being drawn into the land tax net over time. 

Land tax rates 

For the 2026 land tax year, the NSW rates remain: 

• Land value above the general threshold: 
  $100 plus 1.6% of the combined land value above $1,075,000 
• Land value above the premium threshold: 
  $88,036 plus 2% of the combined land value above $6,571,000 

VIC rates are unchanged from previous years, consisting of a progressive rates model and the absentee owner surcharge. A full breakdown of these rates can be found here.

QLD rates also remain unchanged, with a progressive rates model and maximum general rate of 2.25%. 

Principal place of residence exemption: A key change now locked in for NSW 

One of the most important rules NSW property owners need to be aware of in 2026 relates to the principal place of residence (PPR) exemption. 

From the 2026 land tax year onwards, new changes mean those living in the property must have a total ownership of at least 25% to qualify for the exemption. 

For anyone in shared ownership arrangements, particularly family structures or succession planning scenarios, this change can have a real impact. 

VIC VRLT notifications due – what holiday‑home owners need to know 

Victorian clients who own a holiday house should be aware that Vacant Residential Land Tax notifications are due by 15 February 2026.

Also important to note, From the 2026 land tax year, the rules have expanded so that unimproved residential land is now subject to VRLT if it has remained undeveloped for at least five years.

Any clients with vacant properties in Victoria should take the time now to review their VRLT obligations and ensure they’re compliant ahead of the deadline.

Preparing for the 2026 land tax year 

A few proactive steps can help you stay in control: 

• Review your ownership structures, particularly where property is jointly owned or held across family groups 

• Check your land valuations and consider lodging an objection if something doesn’t look right 

• Factor land tax into acquisition decisions, especially when expanding your portfolio 

• Seek advice early if your circumstances have changed exemptions, thresholds and structures all matter 

Land tax is becoming less about last-minute compliance and more about forward planning. With thresholds frozen and exemptions tightening, small details can make a meaningful difference to your position. 

If you’d like support reviewing your land tax exposure or understanding how these rules apply to your situation, our team is here to help you plan with confidence and clarity. 

Speak to a trusted advisor today by calling 1800 988 522 or visiting cutcher.com.au/contact.