Navigating the Recent ATO Scrutiny on SMSFs What You Need to Know

What Is the Absentee Owner Surcharge? The absentee owner surcharge is a state-level tax applied to land owned by individuals, corporations, or trusts classified as 'absentee'. It ensures that owners living abroad contribute to the state services—like roads, emergency services, and public amenities—that help maintain and increase the value of their property. This surcharge is not a federal tax. The rules, rates, and exemptions differ significantly between states like Victoria, New South Wales, and Queensland. The primary goal is to ensure overseas investors contribute fairly to the funding of state infrastructure that underpins their property's value. It also aims to encourage the active use of local land. For any international investor, Australian expat, or trustee holding Australian property, determining your liability is crucial. Whether you must pay the surcharge depends on several factors: Your residency status, including the amount of time you spend in Australia. The ownership structure (individual, company, or trust). The state in which your property is located. Essentially, it's a financial acknowledgement of your investment in a community you are not physically part of for most of the year. The 'Why' Behind Victoria's Absentee Owner Surcharge

Your Guide To The Land Tax Threshold For anyone holding investment properties, understanding the land tax threshold is critical for managing your annual costs. It acts as a starting line; you don't begin to incur tax until your portfolio's total land value crosses that state-specific point. This state-based tax is calculated solely on the unimproved value of your land. This is a crucial detail. It means the state revenue office disregards the value of any buildings, landscaping, or other structures on the property. It’s the land itself, not the dwelling on it, that is taxed. This is why a modest house on a large, valuable block in a sought-after suburb could attract a much higher land tax bill than a brand-new luxury apartment that occupies a very small land footprint. The visual below illustrates this point, showing how the assessment focuses on the land's value alone. This concept is the foundation for how the land tax threshold is applied to your portfolio. It’s all about the value of the underlying land. Why Does This Tax Exist? At its core, land tax is a significant source of revenue for state and territory governments. It helps fund essential public services that benefit the entire community, such as schools, hospitals, roads, and emergency services. The system is specifically designed to apply to those who own land as an investment, which is why your principal place of residence is almost always exempt. The land tax framework is built on a few key principles: Progressive Taxation: The more valuable your total land holdings are, the higher the rate of tax you will pay. State-Based System: This is a critical point. Each state and territory sets its own rules, rates, and land tax threshold. There is no single national system. Aggregation: All the taxable land you own within a single state is added together to determine if you’ve crossed the threshold for that jurisdiction. Because it's a state-based system, an investor with properties in both New South Wales and Victoria is assessed separately in each state. This means they can benefit from two different tax-free thresholds. Effective tax planning is essential for investors, just as it is for small business owners who need to stay current with the latest ATO tips for small business . How Land tax Thresholds Differ Across Australia If you own investment properties across Australia, you cannot view land tax as a single, national rule. Land tax is a state-based system, meaning every state and territory operates under its own distinct set of regulations. This is a critical point for any investor to grasp. A property portfolio with a specific land value in New South Wales could face a completely different tax bill compared to an identical portfolio in Queensland. The differences are not minor. Each state sets its own land tax threshold —the value your unimproved land must reach before the tax applies. Additionally, they set their own tax rates, which typically increase as your land value grows. 

When people ask how to reduce their taxable income in Australia, the answer boils down to two core strategies: boosting your allowable deductions and making smart use of tax-effective structures like superannuation.

Learn what a corporate trustee is, how it differs from individual trustees, and why the right structure matters for your trust. Understand the benefits, obligations and practical steps to set up or review your trustee company.

The ATO has confirmed higher super contribution caps for 2025–26, but the rules remain complex. Learn the current concessional and non-concessional limits, what’s tax-deductible, and the key timing requirements.

A Sydney specialist shares what she learned about Personal Services Income (PSI) after a near miss with the ATO — and how other doctors can avoid the same risks.

Learn what TASA is, how the updated Code of Conduct affects tax agents, and why it matters for clients, compliance, and your tax work.

PAYG Instalments explained in plain English. Learn why the ATO charges tax in advance, how it works, and what to check if your income has changed.

Refine your pricing with value-based strategies, tiered options, and A/B testing. Practical tips to help business owners earn what they’re truly worth.