Queensland land tax change has implications for interstate property owners

If you own an investment property or even just a holiday house in Queensland you should be aware of the changes to land tax in Queensland.

Summary

From 30 June 2023, individuals, and entities that hold land in Queensland are likely to see an increase in land tax payable under the Revenue Legislation Amendment Bill 2022. Land tax will now be calculated based on the Queensland proportion of the total value of the Australian land owned by the landholder.

The total value of Australian land includes Queensland and all interstate land. The statutory value of the land will still be determined by the jurisdiction that applies to where the landholding for the purposes of calculating the land tax applicable.

Land Tax will be imposed on the taxable land owned using the following calculation:

tax = G x TL/AL

where—

tax means the amount of land tax imposed.

G means the gross amount worked out under subsection (2) of the Land Tax Act 2010 based on total value of Australian Land

TL means the total taxable value of the taxable land owned by the taxpayer in Queensland.

AL means the total value of the Australian land owned by the taxpayer.

Implications

Jurisdiction specific land tax exemptions (including primary place of residence and primary production) will still apply under the amended legislation. We expect to see this amendment impact those individuals and entities who:

(a) hold property assets in both Queensland and New South Wales

(b) hold property for investment or commercial purposes, where land tax is most likely to be applicable.

Touch base if you would like to seek specific advice on land tax implications for your Queensland assets.