!! UPDATE – 30 SEP 22 !!
It is being reported today that Queensland Premier Annastacia Palaszczuk has decided to “shelve” the controversial land tax changes (outlined below). We will provide more details as they come to hand.
Queensland Land Tax Changes
From 30 June 2023, Queensland land tax will be calculated using the total of your Australian landholdings.
The total of your Australian landholdings will be used to determine:
- whether the tax-free threshold has been exceeded;
- the rate of land tax that will be applied to the Queensland proportion of the value of your landholdings.
The current tax-free thresholds are $600,000 for individuals (other than absentees) and $350,000 for companies, trustees and absentees.
You’ll only pay tax on the land you own in Queensland (ie. Queensland land tax is not being imposed on land outside of Queensland).
Queensland land only
If you only own land in Queensland, you will not be affected by this change.
Queensland and interstate land
If you own land in Queensland and in another state or territory, you will need to declare your interstate landholdings.
You will need to setup a QRO online account and complete the declaration (including land description, value and percentage of ownership).
From 30 June 2023, you will need to complete this declaration by the earlier of the following:
- within 30 days of receiving a land tax assessment notice
- on or before 31 October.
Calculation land tax with interstate land
The land tax rate that applies depends on what type of owner you are and the value of your land. This rate (and surcharge, if applicable) is applied to the total value of your Australian land. Then this figure is applied to the Queensland proportion to get the annual land tax liability.
You can use the interstate estimator to get an idea of how much land tax you may have to pay from 30 June 2023.
For land in Queensland, you may be eligible for a land tax exemption depending on the ownership and use of the land. If your interstate land meets certain eligibility criteria requirements, you can apply to have its value excluded from the land tax calculation.
Exclusions available for Qld and 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
Action to take
If you own land in Queensland and interstate, you need to:
- Review the total value of your landholdings;
- Setup a QRO online account and complete the declaration of your landholding.
- Calculate your potential land tax liability using the online calculator to ensure you budget for the new liability.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent.
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or lifting weights in her local CrossFit gym. Book in to see Jeanette today.