Queensland Government makes changes to land tax

The Queensland Government has announced changes to the method used to calculate land tax in the 2021-22 budget. These changes will commence in June 2023.

The changes will impact how land tax will be assessed for individuals, companies, trustees and absentees who own land both in Queensland and interstate.

The reason for this is to close a land tax ‘loophole’ where people with a number of properties in different States have had access to tax-free rate thresholds. The Queensland government has announced that by closing this ‘loophole’ it provides a ‘fairer system’ whereby interstate investors will be treated the same as Queensland investors.

Let’s go back and have a look at where we’ve come from. Before these changes, land tax in Queensland was calculated on the value of landholdings owned within Queensland only if the value of these landholdings exceeds the tax free threshold. The thresholds were $600,000 for individuals and $350,000 for companies, trustees and absentees.

With the changes, land tax will continue to be calculated on Queensland land holding value, but the availability of any threshold will be calculated by reference to the total value of all land owned by that taxpayer across Australia. 

If these changes impact your tax position and you would like to know more then please reach out to us at Congdon Fuzi or contact me directly on paul@congdonfuzi.com.au