Queensland Land tax is changing from 30 June 2023

The total value of your Australian land 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 and $350,000 for other entities such as companies and trusts.

If you only own land in Queensland, you are not affected by this change.

If you own land in Queensland and in another state, you will need to declare any landholdings you own outside of Queensland. You will need to set up 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

Land tax will only apply to the Queensland portion of the value of land tax. The Office of State Revenue provide an example on how tax will be calculated as follows:

Example

On 30 June 2022, Lena owns land in Queensland with a taxable value of $745,000. Her land tax is calculated using the rates for individuals.

Taxable value of land: $745,000

Calculation
= $500 + (1 cent × $145,000)
= $500 + $1,450
= $1,950

We will issue an assessment notice for $1,950 for the 2022–23 financial year.

On 30 June 2023, the value of Lena’s land in Queensland has not changed. But Lena now also owns land in Victoria valued at $1,565,000. The total value of Australian land owned by Lena is $2,310,000, which means the land tax is calculated using a higher rate for individuals.

This is how Lena’s land tax will be calculated:

Taxable value of Australian land: $2,310,000

Calculation
= $4,500 + (1.65 cents × $1,310,000)
= $4,500 + $21,615
= $26,115

This amount is applied to the Queensland portion of Lena’s land (i.e. ($745,000 ÷ $2,310,000) × $26,115)).

We will issue an assessment notice for $8,422.37.

If you have any questions about how these changes will affect you, please do not hesitate to contact us.