The Queensland Government recently announced that the way land tax is calculated will change as of 30 June 2023.
Previously, land tax was calculated by reference to the taxable value of land owned in Queensland as of 30 June each year.
You are liable to pay land tax when the total taxable value of your land is:
- $350,000 or more—for absentees, companies and trustees of trusts and superannuation funds
- $600,000 or more—for individuals and trustees of special disability trusts.
There are several land tax exemptions that are available such as the following:
- Principal Place of Residence
- Transitional Home
- Primary Production
- Moveable Dwellings
- Charitable institutions
- Aged Care Facilities
- Retirement Villages
- Supported Accommodation
- Society, Club or Association
As of 30 June 2023, land tax will be calculated by reference to the taxable value of land owned Australia wide as of 30 June each year.
The below examples illustrate the effect of this change:
Land tax assessment using the previous calculation method:
As of 30 June 2022, Anthony owned the below properties in Queensland in his personal name:
- Main residence in Brisbane valued at $600,000;
- Investment property in the Gold Coast valued at $500,000.
Anthony’s main residence is considered exempt from land tax and his investment property is less than the individual land tax threshold of $600,000, therefore his 30 June 2022 land tax assessment was nil.
Land tax assessment using the new calculation method:
As of 30 June 2023, Anthony owns the below properties in Australia in his personal name:
- Main residence in Brisbane valued at $600,000;
- Investment property in the Gold Coast valued at $500,000;
- Investment property in Sydney valued at $500,000.
Anthony’s main residence is still considered exempt from land tax. However, the combined value of Anthony’s investment properties Australia wide is more than the individual land tax threshold of $600,000, therefore his 30 June 2023 land tax assessment is estimated as follows:
| Amount $ |
|
Value of Queensland land | 500,000 |
|
Value of New South Wales land | 500,000 |
|
Total value of Australian land | 1,000,000 |
|
|
|
|
Gross land tax payable | 11,100 | ($4,500 plus 1.65c for every $1 over $600,000) |
Less: Apportioned for interstate land | (5,500) |
|
Net Queensland land tax payable | 5,500 |
|
It is important to note that most of the above exemptions are available for eligible interstate land. However, the only one that does not apply is the exemption for Societies, Clubs or Associations.
We predict this change will have a significant impact on landowners. Please don’t hesitate to get in touch with us to discuss this matter further.
