State-based taxes are under increasing scrutiny, and in our experience, many people don’t realise they may already have obligations in this area.

When Australians think of ‘the taxman’, most people think first of the ATO. But state-based taxes, like land tax and payroll tax, are managed separately by your state or territory’s revenue office.

State-based taxes can include:

Land Tax.
Payroll Tax.
Stamp Duty.
Other state duties and levies.

If you own property, run a business, or employ people across states, it’s worth understanding how these rules work and when you might need to take action.

Did you know state-based tax notifications don’t go to your Tax Agent?

Unlike federal tax obligations handled by the ATO (where tax agents have full access to your account), state revenue offices operate independently.

This means:

Your accountant or tax advisor won’t automatically see your state tax assessments or correspondence.
If there’s an issue, the state revenue office will most likely contact you directly – and you’ll need to forward that information to your advisor if you want help.

Tax agents don’t get notified when you receive a state-based assessment or notice unless you have organised for correspondence to be redirected to us.

We only know what’s going on when you tell us, and that’s when we can step in to help – so you should never ignore a notification from your state revenue office and assume your tax agent is across it!

Land Tax: Complicated and Case-by-Case

Land tax is a particularly complicated area, and the rules vary significantly depending on which state you’re in and how your property is held. There is no one-size-fits-all rule.

If you’re buying, selling, transferring, or restructuring any property ownership, it’s essential that you speak with your accountant first. Grouping provisions – which combine multiple properties or entities for assessment – can apply without your knowledge.

You are not obligated to notify the State Revenue Office (SRO) that properties should be grouped, and generally there are no penalties or interest applied if the SRO later decides grouping provisions do apply. But ignoring this can still result in unexpected (and significant) assessments.

Some common complexities include:

Grouping provisions: The state can assess multiple properties or entities together for tax purposes, even if you didn’t intend for them to be linked.
Timing: You might only have 60 days to object if you think a valuation is wrong.
Ownership changes: Buying, selling, transferring, or restructuring property can change your land tax position unexpectedly.

Always get advice before making property changes to avoid surprise assessments.

Payroll Tax: Easy to Trigger Across States

Payroll tax is another area where issues can arise quickly, particularly as your business grows.

Key points to be aware of:

Each state has its own threshold (and they vary significantly).
If you employ team members who live in other states, you may need to register for payroll tax in those states.
Some contractor payments may also count towards payroll tax.
You might pass the threshold without realising, particularly if you operate across multiple locations or use a mix of employees and regular contractors.

If you’re not regularly reviewing your payroll tax obligations by state, you may be exposed without knowing it.

How to Stay Ahead of State Tax Issues

To ensure you’re fully covered, we recommend taking the following action:

Forward any correspondence you receive from a state revenue office as soon as it arrives if you are not sure how it applies to you. For instance, if you receive a land tax notice in Victoria and you believe the valuation is overstated, you only have 60 days to object.
Speak with your accountant before undertaking any property transaction or restructures.
Let your accountant know if you’ve hired new team members interstate or remotely.
Ask your tax agent or advisor if you’re unsure about whether state-based taxes apply to you. You can contact Aintree Group to discuss these matters even if you are not currently a client.

The Bottom Line

State-based taxes don’t always get as much attention as ATO obligations, but ignoring them can be expensive and complicated. The best protection is awareness, and making sure your accountant, legal team, or tax adviser is looped in early.

We’re here to support you and help you navigate this space, but unlike with ATO matters, we can’t see what’s happening on your behalf unless you keep us informed.

If you’re unsure about your current land tax or payroll tax position, or you’ve received an assessment that doesn’t look right, seek advice as soon as possible. Acting quickly can save you money, time, and stress.