If you own investment property in Brighton-Le-Sands, the 2026 NSW land tax changes could significantly impact your holding costs. Here's what every Brighton-Le-Sands investor needs to understand.
The Big Changes for 2026
1. Frozen Tax-Free Threshold
The land tax-free threshold remains frozen at $1,075,000 for 2026, despite property values rising. For Brighton-Le-Sands investors, this means:
- More properties crossing into taxable territory
- Higher effective tax rates as values climb
- Annual land tax bills increasing year-on-year
- Couples who've allocated unequal ownership for asset protection
- Properties held in family trusts
- Blended family ownership structures
- Which entity owns each property
- Trust vs. personal ownership implications
- The new 25% PPR rule impact
- Timing of property purchases
- Renovation vs. new purchase decisions
- Future lifestyle plans
- Median unit: $780,000 with lower land tax
- Median house: $2,200,000 with higher land tax
- Understand your property's current market position
- Model different scenarios (hold vs. sell)
- Connect you with qualified tax professionals
- Find replacement properties if restructuring
2. Increased Foreign Owner Surcharge (5%)
The foreign owner surcharge has increased to 5% of land value. For a typical Brighton-Le-Sands investment property:
| Land Value | Foreign Surcharge |
|---|---|
| $1,144,000 | $57,200/year |
| $1,430,000 | $71,500/year |
| $1,716,000 | $85,800/year |
3. New 25% Ownership Rule for PPR Exemption
The most significant change: to claim the Principal Place of Residence (PPR) exemption, you now need at least 25% ownership in the property.
This affects:
What This Means for Brighton-Le-Sands Investors
Current Brighton-Le-Sands Investment Landscape
With a median house price of $2,200,000 and rental yield of 3.4%, here's the impact:
Estimated Land Tax on Brighton-Le-Sands Investment Property:
| Property Value | Est. Land Value | Annual Land Tax |
|---|---|---|
| $1,870,000 | $1,215,500 | ~$4,913 |
| $2,200,000 | $1,430,000 | ~$5,780 |
| $2,530,000 | $1,644,500 | ~$6,647 |
⚠️ Important: These are estimates. Actual land value is determined by the Valuer General, often lower than market-implied values.
Brighton-Le-Sands-Specific Considerations
Why Brighton-Le-Sands Investors Are Affected
Brighton-Le-Sands's property market has specific characteristics that impact land tax:
1. High land values: Brighton-Le-Sands's beachside lifestyle with café strip and Grand Parade promenade means land values have risen faster than improvements 2. Strong rental demand: Bus links to Rockdale Station drives tenant demand 3. Capital growth trajectory: Values have outpaced threshold increases
Rental Yield vs. Land Tax Impact
For a Brighton-Le-Sands investment property at median value:
| Annual | Amount |
|---|---|
| Gross Rent (3.4% yield) | ~$74,800 |
| Land Tax (estimated) | ~$5,780 |
| Land Tax as % of Rent | ~8% |
Strategies to Minimise Land Tax in Brighton-Le-Sands
1. Review Ownership Structure
If you own multiple properties, consider:
2. Principal Place of Residence Planning
Living in your Brighton-Le-Sands property exempts it from land tax. Consider:
3. Unit vs. House Investments
Units typically have lower land value components. In Brighton-Le-Sands:
4. Timing of Acquisitions
Land tax is assessed on December 31 each year. Strategic timing can affect your first year's liability.
Action Items for Brighton-Le-Sands Investors
1. Request a land valuation from Revenue NSW to confirm your current liability 2. Review ownership structures with your accountant before June 30 3. Model scenarios using the calculator below 4. Consider your portfolio mix - units vs. houses
Free Brighton-Le-Sands Investment Property Review
I'll provide a current market appraisal and discuss how land tax changes affect your Brighton-Le-Sands property's returns.
Book Free Review →Capital Gains Calculator
Calculate CGT if you sell your Brighton-Le-Sands investment
Selling Costs Calculator
Understand total costs of selling in Brighton-Le-Sands
Need Expert Advice?
Land tax is just one factor in your investment strategy. With 25 years of experience in Brighton-Le-Sands and surrounding suburbs, I can help you:
Call me on 0411 302 668 or book a consultation to discuss your Brighton-Le-Sands investment.
Ready to Take the Next Step?
Whether you're buying, selling, or just curious about your property's value, I'm here to help.