Australia — Tax: Wealth Tax (None)

Why this matters

Relocating individuals with significant net worth should understand that Australia does not tax net wealth or inheritances at the federal level, but state-level land tax (and foreign-owner land tax surcharges in some states) can still apply to real estate holdings.

Key facts

• No federal wealth tax or net worth tax exists in Australia — individuals and trusts are not taxed on their total net assets.
• Australia has no federal inheritance, estate, or gift tax.
• All states and territories levy land tax on landowners based on unimproved land value, generally with a tax-free threshold and an exemption for a principal place of residence.
• Some states apply a land tax surcharge specifically on foreign persons who own Australian residential land; Victoria also has a windfall gains tax on land rezoning value uplifts above AUD 100,000.

Steps

1. Current situation — There is no wealth tax in Australia at the federal level. If a wealth tax were introduced, it would require new federal legislation.
2. Check state-level land tax exposure — Even though there is no wealth tax, individuals owning Australian real estate should check the land tax rules (and any foreign-owner surcharge) in the relevant state or territory, since these are assessed annually on unimproved land value.

Common mistakes

• Assuming Australia has a wealth or net-worth tax — it does not
• Overlooking state-level land tax (and foreign-owner surcharges) when assessing overall real estate holding costs, since these are sometimes conflated with a 'wealth tax'