Land tax is levied annually by each State or Territory government based upon the value of land for properties which reach the land tax threshold. This threshold changes each year and varies from State to State.
Whilst land tax does not affect all properties and there are concessions and exemptions which apply, there are significant changes being implemented in Queensland which should be considered when assessing your obligations as a land owner.
Currently, Queensland land tax is calculated based on the value of all non-exempt land in Queensland only however, with the implementation of the Revenue Legislation Amendment Act 2022 (Qld) this will change.
Instead of assessing land tax based on Queensland land only, it will now be assessed using the value of the person’s entire landholding Australia wide. Land tax will be calculated by expressing the Queensland portion of landholding as a percentage over the entire Australian land value to determine the final amount payable. You will still have an obligation to pay land tax (if applicable) in each of the State in which you own property.
This will likely result in an increase in the land tax payable for those with landholdings across Australia.
Despite the amendment to previous land tax requirements, generally your principal place of residence, moveable dwelling park, supported accommodation, primary production and retirement villages exceptions all still apply, ensuring no land tax is payable on these properties.
There has also been no impact to the benefit obtained by landowners holding land in the name of different entities. For example, if you own land in company X’s name in Queensland, and land in New South Wales under company Y’s name, the land tax in Queensland will be determined based on company X’s land value only.
It is important that you are aware of your obligations as a home owner and the potential impact that this Queensland legislation may have on you. You will need to declare the entirety of your ‘Australian Land’ by 31 October each year, or within 30 days of receipt of a land tax assessment notice, so that Queensland land tax can be assessed correctly.
If you have any questions about how this will affect you, or any property related questions in general, please do not hesitate to contact our dedicated team of lawyers and conveyances on 9525 8688 or email wmd@wmdlaw.com.au. Please also feel free to download our free Property eGuide.
