New Land Tax Rules

What are the new tax laws and how do they affect investors

NSW Land Tax Increase:

NSW is set to increase land taxes for property investors by $1.5 billion. Starting in 2024, the tax-free threshold for land tax will be frozen at $1.075 million and no longer indexed annually in line with property price changes.

This means that as house prices rise, more properties will be subject to land tax, raising property owners' costs. The Real Estate Institute of NSW warns this will cost property owners thousands of dollars annually, forcing them to look elsewhere for investment opportunities.

Victoria's Tax changes:

In March 2024, Victoria announced a $4.74 billion increase in land taxes, severely reducing investor interest.

The tax-free threshold for investment properties in Victoria has been cut from $300,000 to $50,000. A new yearly flat fee has been added and tax rates on properties over $300,000 have been increased.

This has already contributed to a slowdown in Victoria's property market, with more landlords selling and fewer investors buying.

What does it mean for QLD investors

For QLD investors, this is a golden opportunity. The tax system in QLD makes it an attractive destination for property investment, especially as more investors from NSW and Victoria look for better options.

Next steps for investors

If you're considering investing in QLD property, now is the perfect time. As the land tax threshold in QLD moves with property prices, it will continue to be a smart choice.

Everyone's personal situation is different, but here at Dwyer Property Investments, we can show you how to take full advantage of these tax law discrepancies and start exploring your property options today.