I asked Grok. Overseas investors will pay as well.
I'd say distressed as well. Thanks.
Yes, land taxes in New South Wales (NSW), Australia, are effectively rising for many property owners due to changes announced in the 2024-2025 NSW State Budget. While the land tax rates themselves (1.6% above the general threshold and 2% above the premium threshold) are not increasing, the structure of the tax system is being adjusted in ways that will increase the tax burden over time. Here’s how:
Land Tax Threshold Freeze:
The tax-free threshold for land tax was raised to $1,075,000 for the 2024 land tax year (an increase of $106,000 from the previous year), and the premium rate threshold was set at $6,571,000. However, starting from 1 January 2025, these thresholds will be frozen and no longer indexed annually to account for rising land values.
As property values in NSW continue to increase (with residential land values up nearly 8% on average as of 1 July 2024), more property owners will be pushed above the threshold over time—a phenomenon known as "bracket creep." This means that even without a rate increase, the taxable portion of land value will grow, leading to higher land tax bills.
Land values across NSW reached $2.98 trillion as of 1 July 2024, a 6.4% increase from the previous year, driven largely by residential properties. Since land tax is calculated based on the average of the past three years’ land valuations (as determined by the NSW Valuer General), rising values will naturally increase tax liabilities for existing taxpayers, even with fixed thresholds.
