Land Tax- Information for Canberra Landlords

What is land tax?

Land tax is an ACT Government charge that generally applies to residential properties that are not the owner’s principal place of residence. This includes most rented and vacant residential investment properties. Land tax is separate from general rates.

Commercial properties are generally not subject to ACT land tax. Different rules may apply to properties held in companies or trusts, and foreign ownership surcharge obligations may also arise.

When must you notify the ACT Revenue Office?

You must notify the ACT Revenue Office within 30 days of a change in circumstances that makes your property liable for land tax.

This includes when you:

• Move out of your principal place of residence and rent it out or leave it vacant.
• Purchase a residential property that is not intended to be your principal place of residence.
• Start renting a secondary dwelling, such as a granny flat, on your home’s land.
• Experience a change in circumstances affecting an existing exemption or foreign ownership surcharge liability.

You should also notify the Revenue Office if your circumstances change and you believe an exemption now applies.

Notification is made using the Land Tax Notification Form.

Important: The property owner remains legally responsible for ensuring land tax is correctly assessed and paid, even if a property manager is appointed.

What happens if you do not notify or pay?

Failing to notify the Revenue Office within the required period can be treated as a tax default. Consequences may include:

• Backdated land tax: Outstanding liability may be assessed for the relevant periods.
• Interest: Interest accrues on overdue land tax and compounds monthly.
• Penalty tax: Penalties may apply, depending on the circumstances and the nature of the default.
• Debt recovery: Unpaid property tax debts may lead to recovery action and a statutory charge being registered against the property.

For the period 1 July to 31 December 2026, the published interest rate for overdue land tax is 12.43% per annum, compounded monthly. Rates can change, so check the current rate with the Revenue Office.

If you discover that you have not notified the Revenue Office, contact them promptly. Voluntary disclosure before an investigation begins may reduce applicable penalties.

If you cannot pay an assessment by its due date, contact the Revenue Office to discuss possible payment arrangements. Interest may continue to accrue under an agreed payment plan.

Are any exemptions available?

Some residential properties may qualify for an exemption. Eligibility depends on the property’s use, ownership and individual circumstances.

1. Principal place of residence

Land tax generally does not apply if the owner occupies the property as their main home on the first day of the relevant quarter: 1 July, 1 October, 1 January or 1 April.

If you move out and rent the property, land tax will generally apply. Limited transitional exemptions may be available.

2. Moving into a home

A purchaser intending to occupy a property as their principal place of residence may qualify for an exemption if they move in within three months of becoming the owner and do not rent the property. Similar provisions can apply when a rental property is taken back for owner occupation.

3. Moving out of your home

A limited exemption may apply for the first full quarter after moving out of your principal residence. If the property is rented during this period, land tax is payable.

4. Deceased estates and loss of independence

An exemption may be available for up to two years for a former principal residence following the owner’s death, subject to the relevant conditions. A similar exemption may apply where an owner can no longer live independently and moves into eligible care or accommodation.

5. Unfit for occupation

A property that cannot be lived in or rented because it is under construction, undergoing significant renovation or has been damaged may qualify for an exemption.

6. Nil or nominal rent

A property occupied rent-free, or for nominal rent sufficient only to cover specified property expenses, may qualify. Normal market rent does not qualify under this exemption.

7. Compassionate circumstances

An exemption may be granted for temporary absence due to compelling compassionate reasons, generally for up to two years, subject to approval.

8. Affordable community housing

A limited exemption may be available where a property is rented through an eligible registered community housing provider under the applicable affordability, rent and tenant-income requirements. An application and supporting documents are required within 14 days of renting the property.

9. Other land-use exemptions

Specific exemptions may apply to certain rural land, retirement villages, nursing homes, religious accommodation, eligible community housing and other prescribed uses.

Do exemptions happen automatically?

Not necessarily. Many exemptions are self-assessed, while others require an application and approval. Owners should notify the Revenue Office of relevant changes, submit the appropriate form and retain supporting evidence for at least five years where required. An exemption should not be assumed until eligibility has been confirmed.

How is land tax calculated?

Land tax is assessed quarterly, based on the property’s circumstances on 1 July, 1 October, 1 January and 1 April. Liability applies for the relevant quarter rather than being prorated daily.

For 2026–27, the charge comprises:

• A fixed annual charge of $1,778.
• A variable charge based on the property’s average unimproved value (AUV) and the applicable marginal tax rates.

For residential units, the valuation charge also takes the unit entitlement into account. The amount payable varies between properties.

What should landlords do?

• Notify the ACT Revenue Office within 30 days of a relevant change.
• Check assessments and payment due dates.
• Keep contact and ownership details up to date.
• Budget for land tax as an investment property expense.
• Seek advice from your accountant about your individual circumstances.

Further information

ACT Revenue Office – Land Tax

Land tax overview and obligations

Land tax exemptions

Notification requirements

Interest and penalty tax

Payment options and overdue debts

This information is a general guide only, current as at October 2026. Land tax obligations and exemptions depend on individual circumstances. Please confirm your position with the ACT Revenue Office and seek independent taxation advice where required.