Home Property & You What is Land Tax QLD? Queensland’s Land Tax Guide

What is Land Tax QLD? Queensland’s Land Tax Guide

What is land tax QLD?

What is Land Tax in QLD

If you own property in Queensland, you may be liable to pay land tax. Land tax is a state tax calculated on the freehold land you own in Queensland at midnight on 30 June each year. The tax rate that applies depends on what type of owner you are. It also depends on the total taxable value of your land, and if any exemptions apply.

Land Tax Administration

The Queensland Government administers the land tax regime through the Queensland Revenue Office (QRO). The QRO is responsible for assessing and collecting land tax from Queensland landholders.

Minimum Threshold

As an individual, you are liable for land tax if the total taxable value of your freehold land—comprising land owned solely and your share in land owned jointly with others is $600,000 or more. The taxable value of your land is based on your annual land valuation issued by the Valuer-General. If you are a company or trust, you are liable for land tax regardless of the value of your land.

If you are new to land tax, you may want to learn more about what it means for you. The QRO website provides a range of resources to help you get started. These resources include information about land tax, types of owners, taxable value of land, changes that affect land tax, record keeping, calculating land tax, and exemptions.

Recent Changes

There have been significant changes to the land tax regime in Queensland in recent years. For example, new rules around the land tax threshold and rates for individuals were introduced in 2020. Additionally, the Office of State Revenue (OSR) now issues land tax assessment notices, rather than the QRO.

If you own land in Queensland, it’s essential to stay up-to-date with the latest changes to the land tax regime. This will help you to understand your obligations and avoid any penalties or fines.


Who is Liable for Land Tax?

Land tax applies to freehold land, whether vacant or built on (residential, commercial, and investment properties) and occupied or not. The taxable value of your land is based on your annual land valuation issued by the Valuer-General. If you own multiple properties, the total taxable value of all properties is added together to determine your liability.

Trusts

If you own a trust, you may be liable for land tax if the trust has an interest in land and the total taxable value of the trust’s land is $350,000 or more. The trustee is responsible for paying land tax on behalf of the trust. The trustee can apply for the home exemption if the trust owns a residential property, i,e, the principal place of residence of one or more beneficiaries of the trust. Trusts include Self Managed Super Funds (SMSFs).

Foreign Person

If you are a foreign person, you may also be liable for additional foreign surcharge duty and land tax. The foreign surcharge duty is an additional duty of 7% on the acquisition of residential land by foreign persons. The foreign surcharge land tax is an additional land tax of 2% on the taxable value of residential land owned by foreign persons.

Company

If you are a corporation or a foreign company, you are liable for land tax if the total taxable value of your freehold land in Queensland is $350,000 or more. You may also be liable for additional land tax if you own land that is not used for primary production.

You can apply for a land tax clearance search to confirm if any land tax is owing on your property. This search will provide you with the current position of your land tax account and any outstanding amounts owed.

Land tax liability depends on various factors such as the type of owner, the value of their land, and the particular needs of owners of land. Different thresholds and classes of landholdings apply to individuals, trusts, corporations, and foreign companies. It is essential to understand the current rules and regulations to avoid any potential penalties or fines.


Calculating Your Land Tax

Calculating your land tax is a straightforward process. It involves determining the taxable value of your land and applying the applicable land tax rate. The rate of land tax used depends on the type of owner you are, such as an individual, company, trustee, foreign company, or absentee. This rate will apply to your share of the land that you own, if you own land with others.

To calculate your land tax, you first need to determine the taxable value of the land you own in Queensland on 30 June of each financial year. This taxable value will be the total taxable value of all land that you own in Queensland at 30 June. You will need to exclude any land on which you have received an exemption.

Once you have determined the total taxable value of your land, you can then apply the applicable land tax rate to calculate the amount of land tax you owe. The applicable land tax rate is determined by your tax bracket, which is based on the total taxable value of your land. The higher your total taxable value of land, the higher the applicable land tax rate.

If you own land interstate, you may also be subject to land tax in that state or territory. In this case, you may be eligible for a credit for the amount of land tax paid in the other state or territory.

To make the calculation process easier, you can use the Queensland land tax calculator. This calculator can help you estimate your land tax liability based on your property portfolio and the taxable value of your land.


What is Land Tax QLD for Individuals

Taxable Value of LandRate of tax
Up to $599,999$0
$600,000 – $999,999$500 plus 1 cent for each $1 more than $600,000
$1,000,000 – $2,999,999$4.500 plus 1.65 cents for each $1 more than $1,000,000
$3,000,000 – $4,999,999$37,500 plus 1.25 cents for each $1 more than $3,000,000
$5,000,000 – $9,999,999$62,500 plus 1.75 cents for each $1 more than $5,000,000
$10,000,000 or more$187,500 plus 2.75 cents for each $1 more than $10,000,000

Example 1

Total taxable value of $690,000

Tax band is $600,000 – $999,999

Tax calculation = $500 + (1 cent x $90,000 excess) = $500 + $900

Tax payable = $1,400


What is Land Tax QLD for Companies and Trusts

Taxable Value of LandRate of tax
Up to $349,999$0
$350,000 – $2,249,999$1,450 plus 1.7 cents for each $1 more than $350,000
$2,250,000 – $4,999,999$33,750 plus 1.5 cents for each $1 more than $2,250,000
$5,000,000 – $9,999,999$75,000 plus 2.25 cents for each $1 more than $5,000,000
$10,000,000 or more$150,00000 plus 2.25 cents for each $1 more than $10,000,000

Example 2

Total taxable value of $850,000

Tax band is $350,000 – $2,249,999

Tax calculation = $1,450 + (1.7 cents x $500,000 excess) = $1,450 + $8,500

Tax payable = $9,950


By understanding how land tax is calculated, you can ensure that you are paying the correct amount of land tax each financial year.

The rates above are indicative, and you should verify them with the Queensland Office of State Revenue to ensure accuracy and currency. Additionally, land tax thresholds and rates may be subject to change by legislative updates.

Always refer to the latest information or seek advice from a tax professional for the most accurate and up-to-date details tailored to your specific situation.


Exemptions and Concessions

As mentioned earlier, land tax is a state tax calculated on the freehold land you own in Queensland at midnight on 30 June each year. However, there are several exemptions and concessions available to certain entities.

Principal Place of Residence

Firstly, if you use the land as your principal place of residence, you may be eligible for a home exemption. This means that your land will be exempt from land tax. You have to meet certain eligibility criteria and one of them is to satisfy that you live in the property for at least six months of the year.

Charitable Institutions

Charitable institutions are also eligible for an exemption from land tax. To qualify for this exemption, the land must be used for charitable purposes and not for profit. Similarly, land used for primary production may also be eligible for an exemption.

Moveable Dwelling

If you own a moveable dwelling (caravan) park, you may be eligible for an exemption from land tax. This exemption applies to the land where the moveable dwellings are situated.

Aged Care Facility

Aged care facilities and retirement villages may also be eligible for an exemption from land tax. This exemption applies to the land where the facilities are situated.

Natural Disasters

In the case of natural disasters such as the Queensland bushfires, land tax relief may be available for affected landowners. This relief may include a waiver of land tax for the affected year or a deferral of payment.

Aboriginal and Torres Strait Islander

The land tax exemption also applies to Aboriginal and Torres Strait Islander peoples who can demonstrate a connection to the land through their ancestors. This exemption recognises the special relationship that First Nations peoples have with the land.

Vacant Land

Finally, vacant land may also be eligible for a home exemption if it meets certain criteria such as being held for future development or being used for recreational purposes.

The table below summarises the different types of land tax exemptions and concessions available in Queensland:

Entity

Exemption/Concession

Principal place of residence

Home exemption

Charitable institutions

Charitable institutions exemption

Primary production

Primary production exemption

Moveable dwelling (caravan) parks

Moveable dwelling (caravan) parks exemption

Aged care facilities and retirement villages

Exemption

Natural disasters

Relief

Aboriginal and Torres Strait Islander peoples

Exemption

Vacant land

Home exemption

The eligibility criteria for each exemption and concession may vary. Therefore you should consult with the Queensland Revenue Office for more information.


Penalties, Charges and Disputes

If you fail to pay your land tax by the due date, you may be charged a penalty. The penalty is calculated based on the amount of unpaid tax and the number of days overdue. The surcharge rate for late payment of land tax is 8.5% per annum, calculated daily. You can avoid penalties by paying your land tax on time.

Disputes

If you disagree with a Queensland land tax assessment, you have the right to object. You can object to an assessment if you believe that the site value or statutory value of those landholdings is incorrect, or if you believe that you are entitled to an exemption or concession that has not been granted. You must lodge your objection in writing using the approved form within 60 days of receiving the assessment notice.

If you are dissatisfied with the outcome of your objection, you can apply for a review by the Queensland Civil and Administrative Tribunal (QCAT). You may also seek legal advice if you wish to dispute a land tax assessment.

Financial Hardship

If you are experiencing financial hardship and are unable to pay your land tax, you may be eligible for ex gratia relief. You can apply for relief by completing the relevant form available on the Queensland Treasury website.

The Land Tax Act 2010 and the Land Tax Regulation 2010 provide further details about land tax in Queensland. The applicable rate of land tax is determined by the total taxable value of your landholdings in Queensland and any interstate landholdings. You have notification obligations if you acquire or dispose of land or if there is a change in ownership.

In summary, it is important to pay your land tax on time to avoid penalties and charges. If you disagree with a land tax assessment, you have the right to object and seek a review. If you are experiencing financial hardship, you may be eligible for ex gratia relief. For further information, visit the Queensland Government website or contact the Queensland Revenue Office.


Impact on Property Investment and Farming

If you own investment properties or farmland in Queensland, you will be subject to land tax. The tax is calculated based on the total value of your Australian landholdings, not just the properties in Queensland. This means that if you own properties in other states, you will also be subject to land tax in Queensland.

The new land tax rules in Queensland have caused concern among property investors and farmers. Some have expressed worry about the impact on their cash flows and expenses. The changes may also affect the value of their property portfolio, particularly if they have a large number of investment properties in Queensland.

If you are a first-time property investor or farmer in Queensland, it is vital to be aware of the new land tax rules. You should factor the tax into your cash flow projections and expenses when considering purchasing a property.

Farming is an important industry in Queensland and Australia wide. Therefore the new land tax rules may have a significant impact on farmers. If you own farmland in Queensland, you will be subject to land tax based on the value of your land. This may affect your ability to maintain and invest in your farm, particularly if you have a large amount of land.

It is important to stay informed and consult with a professional if you have any questions or concerns.

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