QLD’s new land tax has “landed”: Here’s what you need to know

As of 30 June 2023, Queensland’s interstate properties and land taxes have been significantly revised to cover both local and interstate territories. But as existing legislation has taught us, any meaningful change boils down to its fine print. Let’s examine these modifications under a microscope:

Who does it apply to?

People who exclusively own land/property residing in Queensland remain completely unaffected. The new land tax laws are only relevant to individuals, companies/trustees with interstate property/land in their portfolios.

How broad is its coverage?

As mentioned, all land tax calculations made by the Queensland Government apply to both hyperlocal and interstate plots of land/property.

Accordingly, interstate plots of land/property legally fall under Queensland’s tax purview. The statutory value of all interstate land holdings is to be determined by valuation frameworks in their immediate, local jurisdictions. 

It is worth highlighting that plots of land/property are legally excluded from the taxable amount, should they satisfy any of the following criteria:

Exclusions available for interstate land

Home (principal place of residence)
Primary production
Supported accommodation
Moveable dwelling (caravan) park
Retirement village
Transitional home
Charitable institutions
Aged care

Exemptions available for Queensland land only

Government land
Port authority land
Societies, clubs and associations

How is the final tax amount calculated?

This begs the question; how are payable land taxes even calculated? Here’s a simple, step-by-step breakdown of the entire process:

A) The Queensland Government ascertains the combined, taxable value of both hyperlocal and interstate land holdings.

B) Secondly, they determine how much the combined value of local and interstate land holdings exceeds the relevant tax-free thresholds. Individuals and companies/trustees enjoy a tax-free threshold of $600,000 and $350,000, respectively.

C) The appropriate tax rates (depending on how much the tax-free threshold has been exceeded) are then applied to establish the final, payable amount. Individuals and companies/trustees only have to pay land taxes on the Queensland portion of their combined land holdings.

But some things are better explained using numbers; let’s take a brief look at the example below:

Example: Johnson Company

Johnson Company owns two landholdings:

  1. 1. An office building in Brisbane, Queensland, worth $1,000,000
  2. 2. A warehouse in Western Australia with a statutory value worth $500,000

Combined Taxable Amount:

Johnson Company has a combined taxable amount of $1,500,000 subject to Queensland company tax rates.

$1450 + $[0.017 x (1,500,000 – 350,000)] = $21,000

Final Taxable Amount:

Johnson Company is only liable to pay taxes on the Queensland portion of its land-holdings portfolio.

(1,000,000 ÷ 1,500,000) x $21,000= $14,000

Action these steps immediately!

Navigating the ever-evolving tax landscape is an enormous undertaking that no individual or business should attempt to perform alone.

As a client-focused buyer’s agent, I want to help you sidestep the consequences of land tax non-compliance altogether. We are always kept up-to-date on the latest tax news and updates in the real estate industry, be it large or small. We don’t just provide you unfettered access to off-market properties; we educate and assist you to ensure your Australian landholdings are 100% compliant with current tax laws!

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