South Australia has shaped up as a sweet spot for property investors due to its value for money, rental demand and tight housing supply. Add in an increasing population and solid employment, it has become a market offering stability and potential for future capital growth.
In comparison to other capital cities, Adelaide offers relatively affordable entry costs and attractive yields. Several major infrastructure projects, including the $15.4 billion Torrens to Darlington project and $600 million upgrade to Adelaide airport, are helping to shape the city and boost confidence.
While it is easy to be swept up in the excitement of finding an investment property, it is important to stay across your financial obligations beyond maintenance and repairs. Land tax is an annual state-imposed charge on the value of land, excluding any structures.
This guide explains who pays land tax, who’s exempt, how it’s calculated, when to pay and importantly, how to effectively plan.
Who pays land tax in SA?
Let’s look at how land tax in South Australia is calculated before exemptions are applied. Remember, this is an annual charge that must be paid each year.
The taxable amount is based on the total unimproved value of all land you own in South Australia as of midnight on 30 June each year.
The amount varies depending on the use and type of property ownership, with different rates for individuals and trusts. If the site value of the land is below the relevant threshold, then no land tax needs to be paid.
Who is exempt from paying land tax in SA?
The good news is that not all land is subject to this tax, with several exemptions. It is not payable on:
- Principal place of residence
- Sites with a home under construction or renovation
- Sites with uninhabitable or destroyed homes
An owner-occupier moving into aged care is also exempt from land tax or if the property is part of a deceased estate. You may also be eligible for a full or partial exemption if a portion of the land is used for business or commercial premises.
Land used for primary production, eligible new housing opportunities, associations or not-for-profit organisations is also exempt from land tax.
Eligible build-to-rent projects may qualify for a 50 per cent land tax reduction, available until the 2039-40 financial year. This was introduced by the South Australian State Government in their 2023-2024 budget.
How is land tax calculated in SA?
Land tax is calculated on the unimproved value of your land, as assessed each year by the Valuer-General.
2025 – 2026 Land Tax Thresholds
- General threshold $833,000
- Trust tax threshold $25,000
Remember, the total taxable value of all land holdings – including your share in jointly owned properties – is combined before applying the threshold. So, if you own multiple investment properties across the state, these are then added up together.
Land tax thresholds are indexed annually based on the average percentage change in site values. For 2025-2026, the average percentage change is 13.8 per cent with an index of 1.85.
You can work out your land tax using RevenueSA’s calculator here. You will also find calculators for previous financial years.
When do you pay lax tax in SA?
Assessments are generally issued from October every year using property valuations determined by the Valuer-General. Payment can be made using a credit card, and you will need a reference number. You can also utilise B-PAY, online, by telephone, mail or in person.
The amount can be paid in full by the due date shown on the notice, or you may be able to opt for an instalment plan.
It is important to check your assessment carefully – if properties you no longer own are listed or new ones are missing, contact RevenueSA immediately to correct any errors.
It is recommended to discuss your assessment with someone from the department before submitting a formal objection. The latter needs to be lodged within 60 days on which the notice was served or the date on which the taxpayer was notified of the decision.
LJ Hooker is here to help
When you are ready to start or add to your property portfolio in South Australia, be sure to contact your nearest LJ Hooker agent. They are specialists who are experienced in helping people looking to get started in investing and can access property databases and valuation tools.
Importantly, they understand the South Australian investment market and can also arrange for an experienced property manager to take care of the property. This reduces the burden on you as a landlord and will allow you to focus on growing your portfolio. Don’t forget to be a tax-smart investor by getting all your documentation in order from the start. This includes knowing what expenses can be claimed, your tax obligations and declaring all rental-related income in your annual return.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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