Got some land? Why adding value to it now is worth thinking about

Are you one of the many Australians sitting on a block of land? Maybe you inherited some acreage? Perhaps it’s an investment block you bought years ago with vague plans to “do something with it eventually”? Maybe it’s a future build site but ‘the future’ just never seems to arrive?

In every case, there’s one question worth asking. What would adding even modest infrastructure to that block actually do for its value? And the timing of that question has just become more important than ever.

We’ll get to that, but let’s look at the fundamentals first.

In this Article:

• Why land with structures on it is worth more than bare land
• What kinds of structures lift value the most?
• Why timing matters: a note on the 2026 Budget changes 
• A simple example 
• Faster, cheaper and even easier value-adds: gates
• Questions worth asking before you build 

Why land with structures on it is worth more than bare land

A bare rural block and the same land with a building on it are not the same product in the eyes of a buyer.

An empty block has potential. But land with even basic usable infrastructure already on it offers far more than just potential. It’s a property that can be used immediately – whether that’s for storage, to facilitate a working hobby, as a rustic weekender, or as a base while a primary residence is built.

That difference shows up in value – we’ve all seen it on real estate listings. Across rural and acreage markets, blocks with pre-built infrastructure consistently command a higher price than the equivalent land without. And this value usually exceeds the original build cost. A thoughtfully built and positioned $80,000 barn on a bare block doesn’t add $80,000 to the saleable value. It often instantly adds much more – perhaps $95,000 to $110,000 – because the buyer is paying for the friction it removes and the options it creates. And of course, over time, this value just increases.

The same logic applies in smaller doses to fencing, driveway works, and entry infrastructure. Never underestimate the value that can be added by simple street appeal. For example, a high-quality gate at the entry to an acreage block is one of the cheapest and easiest ways to lift overall presentation and perceived value.

What kinds of structures lift value the most?

The fastest, simplest and most cost-effective options for adding real value to a rural or acreage block are:

A farm building built under exempt development rules in NSW

The fastest, simplest and most cost-effective options for adding real value to a rural or acreage block are:

A farm building built under exempt development rules in NSW

New South Wales has the most substantial exempt pathway available in Australia. If your block is zoned RU1, RU2, RU3, RU4 or RU6, ‘farm buildings’ such as hay sheds, machinery sheds, storage sheds, work sheds and shearing sheds can be built without council approval up to 200m² each, with a total footprint up to 2000m² on land over 10 hectares. No DA, no waiting period – you can just go straight from decision to delivery.

See our guide to council exempt farm buildings in NSW for the full criteria.

Other non-habitable exempt buildings

Outside of the farm building pathway in NSW, and in most states, structures below certain size and use thresholds can usually be built without council approval. NSW still generously caps these buildings at 50m² and 3m high. Most other states allow exemptions for non-habitable Class 10a rural buildings, just under tighter size limits – generally between 10m² and 60m² size limits and 2.4m-3m height caps, depending on the jurisdiction. A little smaller, but still perfectly useful and most importantly, no DA fees and no approval delay.

See our exempt barns guidance for what’s possible in your state

A habitable rural dwelling

It’s a higher investment and a longer pathway, given approval and construction timelines, but this is always worth thinking about. It creates a habitable property where there wasn’t one, which is always a significant value add. It gives you a second residence, weekender or rental income, and, when it comes time to sell, appeals to buyers looking for the same or their future primary residence.

A quality entry gate

Here’s one that might surprise you. One of the fastest, easiest and most cost-efficient improvements you can make to an acreage block is by adding a well-made gate. An attractive, good quality gate lifts kerb appeal, signals security, and changes how the property is perceived from the very first impression. Our sister company Authentic Gates handcrafts beautiful timber and steel gates that are designed to enhance rural and acreage entries.

Driveway works, fencing, and basic site preparation

This is easy to overlook, but in the same way a gate does, these shape how the block is perceived from the start. It’s often a few thousand dollars that’s very well spent, usually reaping far more in value than it cost.

Why timing matters: a note on the 2026 Budget changes

The reason this question has become more pressing recently sits inside the 2026-27 Federal Budget, handed down by Treasurer Jim Chalmers on 12 May 2026.

From 1 July 2027, the way capital gains tax works on investment property is changing. The 50% CGT discount, which has been in place since 1999, is being removed. Under the new system, the full capital gain becomes taxable income (after an inflation adjustment to your cost base), rather than just half of it. The main residence is unaffected. But blocks held as investments or as future build sites are.

In its simplest terms, any value added to a non-primary-residence block before 1 July 2027 sits under the existing 50% CGT discount rules. Value added after that date sits under the new system. Tax professionals working with rural and acreage investors are pointing to the same principle: the existing rules are generally more favourable. If you were already weighing up an improvement to your block, the timing is worth a conversation with your accountant to maximise the return on your investment.

A few caveats. The changes aren’t yet law and may shift during consultation. Whether the timing produces a better tax outcome for your specific situation may depend on inflation, your marginal rate, your holding period, and how much uplift the improvement actually generates.

A simple example

‘Bob’ owns a 10-acre rural block he bought in 2018 for $400,000. Several years of organic market growth has it sitting at around $520,000 as bare land by the end of 2026. At this time, Bob installs a barn for storage and a place to ‘camp down’ when he visits the block on weekends. The barn costs $100,000 to buy, install, fit out and finish. Before 1 July 2027, Bob gets his property professionally valued at $635,000.

That valuation matters. Under the proposed transitional rules, the property’s value at 1 July 2027 sets the dividing line between the old and new tax systems. Growth on the property up to that point keeps the existing 50% CGT discount when Bob eventually sells. Growth after that point falls under the new indexation rules, where the full gain (after inflation) is taxable rather than just half of it.

Working through Bob’s numbers:

• His cost base is $500,000 ($400,000 land plus $100,000 barn).
• His 1 July 2027 valuation is $635,000.
• His pre-deadline gain is $135,000.

Because Bob built the barn before the deadline, that $135,000 gain sits entirely inside the old 50% discount rules. When he eventually sells, only half of it ($67,500) gets added to his taxable income.

If Bob had waited until later in 2027 to build, that same $135,000 gain would have sat under the new rules instead. There’s no 50% discount under the new system. The full $135,000 (after an inflation adjustment) would have been added to his taxable income – all of it, not just half. Depending on his marginal rate, inflation over the holding period and when he sells, the difference in his eventual tax bill could be material, or surprisingly modest.

Of course, ‘Bob’ is a fictitious character and this is a hypothetical illustration only. It uses simplified assumptions about inflation, the sale price and Bob’s tax position. The proposed CGT rules are not yet law. Run any specific timing decision past your accountant before acting on it.

Faster, cheaper and even easier value-adds: gates

A quality entry gate, or a coordinated set of gates across a larger property, is a different investment again. The tax timing principle is the same, but the value-to-cost ratio is what makes gates particularly worth thinking about.

The maths gets interesting at scale. A $4,000 entry gate can lift saleable value by $7,000 to $10,000, putting roughly $4,500 of uplift into the pre-deadline valuation. A $30,000 investment in paddock or entry gates can lift saleable value by $50,000 to $65,000, putting around $27,000 of uplift into that bucket. In both cases, the uplift sits under the existing 50% CGT discount when the property eventually sells.

If a gate (or a set of gates) was already on your to-do list, this is the time to act. Get the work done before 1 July 2027 and lock in a professional valuation close to that date. The value uplift typically covers the cost. The kerb appeal and security land immediately. The tax timing benefit lands on top when you sell.

Few improvements offer that kind of return for the spend.

Questions worth asking before you build

Before committing to any build for your investment block, the practical questions are:

• What does the block already have that supports a build (access, services, useful aspect)?
• What’s the most appropriate structure type given how you’d use the block in the short term and how you’d want it to present to a future buyer?
• What planning pathway applies (development approval, complying development, exempt development)?
• If selling is on the horizon, how does the timing of the build interact with your tax position?

A Greenspan Design Solutioneer can walk you through the first three. The last one is a question for your accountant.

So, if you’re thinking of adding to your rural property, get in touch. Our team will help you work out where you stand and what your options are, so timing can become part of your planning, not an expensive afterthought.

Disclaimer

This article contains general information only. The references to the 2026-27 Federal Budget capital gains tax proposals are based on the Budget papers as published at the time of writing this article (26th May 2026). The proposed CGT changes are not yet law and may change during consultation and parliamentary passage. Nothing in this article is tax, financial, legal or investment advice. Tax outcomes depend on individual circumstances. Consult a registered tax agent or qualified financial adviser before making any decisions based on this information.