Why does ownership structure affect land tax?

Each state in Australia assesses land tax based on the total taxable land held by a single owner. When you hold properties in different entities, each entity is treated as a separate owner with its own tax-exempt threshold (where applicable). This means you can potentially keep each entity's holdings below the higher tax brackets. However, some states have different rules for trusts and companies, including surcharges, so the optimal structure varies by state and portfolio size.

Is it worth setting up a trust just for land tax savings?

It depends on the numbers. Trusts have setup and ongoing compliance costs, including annual tax returns, trustee obligations, and accounting fees. For a single property, the costs often outweigh the savings. But as your portfolio grows, the land tax savings from splitting ownership across entities can be significant, sometimes tens of thousands of dollars per year. The simulator helps you see the exact dollar impact so you can make a decision based on your real numbers rather than rules of thumb.

How does land tax work differently for companies versus trusts?

Companies are generally treated as regular taxpayers with access to the standard land tax thresholds in most states. Trusts can be trickier. Some states apply a surcharge to land held in certain types of trusts, particularly discretionary trusts. Fixed trusts and unit trusts may be treated differently again. NSW, for example, applies a trust surcharge that can negate the benefits of using a trust for land tax. The simulator models these state specific rules so you see the actual outcome, not a generic estimate.

Can I use an SMSF to reduce land tax?

An SMSF is treated as a separate entity for land tax purposes, which means it gets its own threshold. However, buying property in an SMSF comes with strict rules: limited recourse borrowing arrangements, sole purpose test compliance, and restrictions on living in or renting the property to related parties. The land tax savings need to be weighed against these constraints and the higher administration costs. Our simulator includes SMSF as an entity option so you can see whether the tax savings justify the complexity.

Does this simulator cover all Australian states?

Yes. The simulator includes land tax rates, thresholds, and surcharges for NSW, Victoria, Queensland, South Australia, Western Australia, Tasmania, the ACT, and the Northern Territory. Each state has different rules, rates, and thresholds, and some have recently introduced or changed surcharges. The simulator stays current with these changes so your comparison is accurate.

Compare land tax across ownership structures

The entity you buy in — individual, company, trust, or SMSF — changes how much land tax you pay. Sometimes dramatically. Model the differences before you commit to a structure.

4 structures

Compared side by side

All states

Every jurisdiction

Side-by-side

Clear comparison

Threshold aware

Correct brackets

How this is different

Choosing the wrong ownership structure can cost tens of thousands in avoidable land tax over a portfolio's lifetime. Presm compares individual, company, trust, and SMSF structures side by side, with the correct thresholds and rates for each, so you can make the call with real numbers — not assumptions.

What the simulator covers

Individual

Standard thresholds and rates. The simplest structure with the lowest tax-free threshold in most states.

Company

Different thresholds in some jurisdictions. No CGT discount but potential for lower land tax in certain states.

Trust

Trusts attract surcharges in some states and lose the general threshold in others. See the real cost before you structure.

SMSF

Self-managed super funds have their own land tax treatment. Model the impact on your retirement strategy.

Why ownership structure matters for land tax

Land tax is calculated on the total taxable land value held by a single owner. Most states have a tax-exempt threshold, and once you exceed it, rates escalate progressively. Three properties in your personal name means combined land values push you into higher brackets. Spread those across different entities and each may stay below the threshold or sit in a lower bracket.

This is not a loophole — it is how the system works. Different entities are separate taxpayers. The question is whether the land tax savings justify the cost of setting up and running additional structures. That is exactly what this simulator helps you work out.

How it works

Enter your portfolio

Your properties, their land values, and which state each is in. Takes about a minute.

Compare structures

Presm calculates land tax for individual, company, trust, and SMSF ownership — with the correct thresholds, rates, and surcharges for each state.

See the dollar difference

A clear side-by-side view of your annual land tax under each structure. Factor in entity running costs to see the net saving.

What investors should know

Structure decisions are hard to reverse. Consider these factors first.

Trust surcharges vary by state. NSW applies a land tax surcharge on discretionary trusts that can wipe out the benefit. Other states are more favourable. Check the numbers for your specific state.
Companies lose the CGT discount. A company pays no capital gains tax discount on sale. If you plan to hold and sell, the land tax saving needs to outweigh the CGT cost.
SMSF compliance is not trivial. Separate audits, borrowing restrictions, sole purpose test. The admin cost of running an SMSF needs to be weighed against the land tax saving.
Entity running costs add up. Accounting fees, ASIC fees, annual returns. A company or trust costs $1,500 to $3,000+ per year to maintain. The land tax saving needs to exceed this.
Stamp duty on restructuring. Transferring property into a new entity triggers stamp duty in most states. Factor this upfront cost into the long-term saving calculation.

Frequently asked questions

: Each state in Australia assesses land tax based on the total taxable land held by a single owner. When you hold properties in different entities, each entity is treated as a separate owner with its own tax-exempt threshold (where applicable). This means you can potentially keep each entity's holdings below the higher tax brackets. However, some states have different rules for trusts and companies, including surcharges, so the optimal structure varies by state and portfolio size.
: It depends on the numbers. Trusts have setup and ongoing compliance costs, including annual tax returns, trustee obligations, and accounting fees. For a single property, the costs often outweigh the savings. But as your portfolio grows, the land tax savings from splitting ownership across entities can be significant, sometimes tens of thousands of dollars per year. The simulator helps you see the exact dollar impact so you can make a decision based on your real numbers rather than rules of thumb.
: Companies are generally treated as regular taxpayers with access to the standard land tax thresholds in most states. Trusts can be trickier. Some states apply a surcharge to land held in certain types of trusts, particularly discretionary trusts. Fixed trusts and unit trusts may be treated differently again. NSW, for example, applies a trust surcharge that can negate the benefits of using a trust for land tax. The simulator models these state specific rules so you see the actual outcome, not a generic estimate.
: An SMSF is treated as a separate entity for land tax purposes, which means it gets its own threshold. However, buying property in an SMSF comes with strict rules: limited recourse borrowing arrangements, sole purpose test compliance, and restrictions on living in or renting the property to related parties. The land tax savings need to be weighed against these constraints and the higher administration costs. Our simulator includes SMSF as an entity option so you can see whether the tax savings justify the complexity.
: Yes. The simulator includes land tax rates, thresholds, and surcharges for NSW, Victoria, Queensland, South Australia, Western Australia, Tasmania, the ACT, and the Northern Territory. Each state has different rules, rates, and thresholds, and some have recently introduced or changed surcharges. The simulator stays current with these changes so your comparison is accurate.

Find the most tax-efficient structure

Individual, company, trust, or SMSF. Compare land tax across all four with real rates.