2024 Guide to Queensland Land Tax Law
When is land tax payable? Land tax applies to freehold land, including vacant land, built-on land, and lots in community title schemes such as apartments and units.
- The Queensland government cancelled proposed changes to the Land Tax Act 2010
- The changes would have included all Australian land holdings for tax assessment purposes, not just those in Queensland
- Land tax is a complex area of law that requires careful consideration
- It is particularly important to consider land tax implications when building a property portfolio.
If you own Real property in Queensland, you may be liable to pay land tax. This state tax is calculated based on the taxable value of your land and other factors such as ownership and exemptions. Individuals, corporations, and trusts can all be subject to land tax.
The land tax threshold varies depending on whether you own the land as an individual or through a trust or company. Currently, the threshold is $600,000 for individuals and $350,000 for trusts, companies, and absentees (foreign individuals who do not ordinarily reside in Australia). Ware there land tax thresholds? If the total taxable value of your land exceeds the land tax threshold, you will be liable to pay land tax.
The applicable rate depends on the taxable value and type of ownership (individual, company, or trust). As the value of land held increases, a higher land tax bracket applies. Understanding land tax in Queensland is crucial to avoid any unexpected financial obligations. Keep this guide handy to stay informed about your land tax liability in Queensland.
Example
As you can see from the table, as the total value of land held increases, a higher land tax bracket applies. Let’s take an example to demonstrate how land tax is calculated. Suppose the total land value is $700,000. In that case, the tax bracket will be $600,000–$999,999, and the calculation will be $500 plus (1 cent x $100,000), which equals $1,500. Therefore, the total land tax payable will be $1,500.
Calculate your land tax
Use our land tax estimator to find out how much land tax you may have to pay.
Land Tax Rates For Companies and Trusts
The current land tax rates for companies and trustees are as follows;
Total Taxable Value Of Land
Rate Of Land Tax
To calculate land tax payable for an Australian company with land holdings of a value of $550,000, the tax bracket is $350,000–$2,249,999. The calculation is $1,450 + (1.7 x $200,000).
The value of land in Queensland is assessed annually by the Valuer-General using different methods for rural and non-rural land. The ‘unimproved value’ method is used for rural land, while the ‘site value’ method is used for non-rural land. Community title scheme land is valued as a whole, and the value is sent to the relevant body corporate.
If you disagree with your land tax valuation, you have the right to lodge an objection within 60 days of receiving your valuation notice. Certain land may be exempt from land tax, such as land used as a primary place of residence, charitable institutions, primary production, and moveable dwelling parks, among others.
The Queensland government recently scrapped proposed changes to the Land Tax Act 2010, which would have resulted in a significant overhaul of the state’s land tax regime, including the inclusion of all Australian land holdings for tax assessment purposes, not just those in Queensland. Land tax is a complex area of law that requires careful consideration, particularly if you’re building a property portfolio.
“This is a tax implemented by a state that impacts the residents of NSW. It’s wrong, and we’re not going to comply with it,” the Premier said.
The tax was known to be turning investors away from Queensland and professional bodies, including CPA Australia, called it a “revenue grab”. – Qld Premier
