Can a business be profitable and still go broke?

Yes. This is one of the most common reasons businesses fail — not because they are not profitable, but because they run out of cash to pay wages, suppliers, or tax obligations while waiting on money that is technically "earned" but not yet received.

What's the difference between a P&L and a cash flow statement?

A profit and loss statement (P&L) shows revenue and expenses over a period, regardless of when cash actually moved. A cash flow statement shows the actual cash coming in and going out of the business during that same period. They are both necessary, and they rarely match exactly.

How often should I check my cash flow?

Monthly at a minimum — weekly if your business has tight margins, seasonal changes, or is growing quickly. A rolling forecast, even a simple one, provides an early warning before a cash shortage becomes a crisis.

Why does my accountant talk about profit more than cash flow?

Traditionally, compliance-focused accounting has centred on tax returns and financial statements, which are built around profit. A proactive accountant or business advisor will also look at cash flow because it is often the more important number for day-to-day decision making.

What is a cash flow forecast and why does my business need one?

A cash flow forecast predicts the money expected to come into and leave your business over a future period. It helps business owners identify potential shortfalls early, plan for upcoming expenses, and make better financial decisions before problems arise.

7 Land Tax Mistakes Costing South Australian Business Owners Thousands

Rocco Lagana
Aug 11
5 min read

Last Updated August 2026

If you own commercial property, investment property, or land through a trust in South Australia, land tax can become expensive very quickly — and often in ways that aren't obvious until the assessment lands. A poorly planned ownership structure can add thousands of dollars a year compared to one that's reviewed properly beforehand, and once you've settled on a property, several of these mistakes are difficult or impossible to undo.

Here are the seven that cost the most, and what's worth checking before you buy, restructure, or sign anything.

Residential property with a sold sign representing property ownership and South Australian land tax

Assuming Your Business Premises Is Exempt

A common assumption is that trading out of a property works the same as the home exemption. It doesn't. The principal place of residence exemption applies to your home — not to commercial, industrial, or investment property, even if it's your own business operating from it.

If you own the building your business trades from — personally, through a company, or through a trust — it's generally treated as taxable land like any other commercial property..

Not Understanding Aggregation

Aggregation simply means RevenueSA adds together the taxable value of all the land you own in South Australia before working out whether land tax applies — it doesn't assess each property in isolation.

Did you know? Two properties that are each individually below the land tax threshold can still create a land tax liability once RevenueSA aggregates their value together.

Here's how it plays out in practice. A business owner — call her Sarah — owns a warehouse used for her business, and a separate investment property. Individually, neither property's site value comes close to the general threshold. Combined, the aggregated taxable site value may exceed the applicable threshold, potentially creating a land tax liability that neither property would trigger on its own.

Land Tax in South Australia Aggregation Diagram

It's not unusual for business owners who've built up a small property footprint over several years — a warehouse here, a rental there — to never have added up what RevenueSA will actually assess them on until the first combined bill arrives.

Getting Caught Out by the Trust Threshold

Land held in a trust is assessed differently, with a much lower starting threshold than land held individually. Business owners often assume that buying a commercial property through their existing family trust will work the same as buying it personally — it generally won't.

Trustees also need to properly notify RevenueSA of the trust and its beneficiaries. Miss this step, and a less favourable default rate can apply. Once settlement has occurred, unwinding or changing an ownership structure can involve stamp duty, tax consequences and legal costs that may far exceed the cost of getting advice beforehand — this is one to get right before you sign, not after.

Not Realising Related Entities Can Be Grouped

One conversation that comes up surprisingly often goes something like: "I've put each property in a different company, so each one gets its own threshold, right?" Unfortunately, it's rarely that simple — if the companies are related, RevenueSA can treat them as a single owner for aggregation purposes, and a structure that looks like it should split land tax across several thresholds can instead be assessed as one combined holding.

If you're considering splitting property across entities specifically to manage land tax, get advice on the grouping rules first.

Missing the Assessment Date

Land tax in South Australia is assessed based on who owns the land at midnight on 30 June each year. Settle a purchase in late June, and you can be liable for the full year's land tax on a property you've owned for a matter of days. Settle just after, and you may avoid that year's liability entirely.

For larger commercial purchases, this is genuinely worth factoring into settlement timing — a difference of a few days either side of 30 June can change the outcome materially.

Not Budgeting for Threshold Changes

South Australia's land tax thresholds are adjusted periodically in line with site values — they don't stay fixed. A property that wasn't taxable last year isn't guaranteed to stay that way.

Forgetting Land Tax Is Deductible on Investment Property

On the flip side, it's easy to forget that land tax paid on a genuine investment or commercial property is deductible against the income it produces. It's not deductible on exempt land, like your home — but it's a legitimate cost that shouldn't be missed at tax time.

The Bottom Line

The biggest land tax mistakes usually happen before the property is even purchased. Once contracts are signed and settlement has occurred, changing the ownership structure can involve additional tax, stamp duty and legal costs that are often far more expensive than getting advice upfront. If you're buying commercial property, investing through a trust, or restructuring your business, we'd be happy to review the proposed ownership structure before you commit, so you understand the land tax implications before they become a costly surprise.

Frequently Asked Questions

Is my business premises exempt from land tax in SA?

No. The principal place of residence exemption applies to your home, not to commercial or business premises, even if you operate your own business from the property.

How does land tax aggregation work in South Australia?

RevenueSA generally combines the taxable site value of all the land you own in South Australia under the same ownership, rather than assessing each property separately. If the combined value exceeds the relevant threshold, land tax applies to the total — which is how two properties that are each under the threshold individually can still trigger a liability together.

What is site value, and why is it different from market value?

Site value is the value of the land itself, as determined by the Valuer-General, generally excluding buildings and most improvements. It's the figure land tax is actually calculated on — not the purchase price or current market value of the property, which can lead to assessments that look surprising if you're expecting the tax to reflect the property's full value.

Can I object to my site value?

Yes. If you believe the site value used in your land tax assessment is incorrect, you can generally lodge an objection with the Valuer-General within 60 days of receiving your assessment. It's worth reviewing the site value shown on your assessment against comparable land if a bill looks unexpectedly high.

Who receives the land tax assessment?

The assessment is issued to the registered owner (or owners) of the land as recorded by the Land Titles Office — for land held in a company or trust, this generally means the assessment goes to the entity or trustee, not to individual beneficiaries or shareholders directly.

Does my SMSF pay land tax on property it owns?

Generally, yes — an SMSF that owns land in South Australia is subject to land tax like any other owner, and land held by an SMSF trustee may be assessed under the rules that apply to trust-held land. This is worth reviewing with your accountant given the interaction between SMSF and land tax rules can be more complex than it first appears.

What happens if I inherit property?

Inherited property is generally reassessed under your ownership from the point you become the registered owner, and it's added to any other taxable land you already hold in South Australia for aggregation purposes. It doesn't retain any exemption status the previous owner may have had unless you separately qualify for that exemption yourself.

Is farmland exempt from land tax in SA?

Land used for a genuine primary production business may qualify for an exemption, but it isn't automatic in every case — eligibility depends on factors including the size of the landholding and how directly the owner is involved in the primary production business. It's worth confirming eligibility rather than assuming farmland is automatically exempt.