If you own investment property in Sans Souci, the 2026 NSW land tax changes could significantly impact your holding costs. Here's what every Sans Souci 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 Sans Souci 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: $850,000 with lower land tax
- Median house: $2,100,000 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 Sans Souci investment property:
| Land Value | Foreign Surcharge |
|---|---|
| $1,092,000 | $54,600/year |
| $1,365,000 | $68,250/year |
| $1,638,000 | $81,900/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 Sans Souci Investors
Current Sans Souci Investment Landscape
With a median house price of $2,100,000 and rental yield of 3.2%, here's the impact:
Estimated Land Tax on Sans Souci Investment Property:
| Property Value | Est. Land Value | Annual Land Tax |
|---|---|---|
| $1,785,000 | $1,160,250 | ~$4,029 |
| $2,100,000 | $1,365,000 | ~$4,740 |
| $2,415,000 | $1,569,750 | ~$5,451 |
⚠️ Important: These are estimates. Actual land value is determined by the Valuer General, often lower than market-implied values.
Sans Souci-Specific Considerations
Why Sans Souci Investors Are Affected
Sans Souci's property market has specific characteristics that impact land tax:
1. High land values: Sans Souci's waterfront living with Georges River access and boat ramps 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 Sans Souci investment property at median value:
| Annual | Amount |
|---|---|
| Gross Rent (3.2% yield) | ~$67,200 |
| Land Tax (estimated) | ~$4,740 |
| Land Tax as % of Rent | ~7% |
Strategies to Minimise Land Tax in Sans Souci
1. Review Ownership Structure
If you own multiple properties, consider:
2. Principal Place of Residence Planning
Living in your Sans Souci property exempts it from land tax. Consider:
3. Unit vs. House Investments
Units typically have lower land value components. In Sans Souci:
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 Sans Souci 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 Sans Souci Investment Property Review
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Need Expert Advice?
Land tax is just one factor in your investment strategy. With 25 years of experience in Sans Souci and surrounding suburbs, I can help you:
Call me on 0411 302 668 or book a consultation to discuss your Sans Souci investment.
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