If you own property, you may have to pay land tax.
Land tax is assessed when the combined (land) value of all property that you own (excluding your principal place of residence) equals or exceeds a threshold. In Victoria, the threshold is currently $250,000.
When you’re considering buying a new property, you should calculate how the value of that land will combine with the value of the land you already own. If the land tax threshold with the addition of the new property will be exceeded, you should estimate what your land tax liability will be.
Keep in mind that apartments aren’t exempt, even though you might think that they don’t have ‘land’. Generally, land value when talking about land tax actually means site value. Apartments have a site value, even if they are on level 10! The site value for each of your properties can be found on your council rates notice.
If you own land as a trustee of a trust, the threshold is lower and a surcharge is also payable.