Queensland Land Tax is Changing

As from 30 June 2023 the Revenue Legislation Amendment Act 2022 Qld will impact Queensland landowners.

Currently Land Tax in Queensland is calculated only on the value of non-exempt landholding in Queensland.

From 30 June 2023 this will change to also include non-exempt landholding in other states.

The inclusion of these landholdings will potentially increase the land tax rate that is paid on the Queensland landholding.

The rates of land tax and the thresholds will not change.

How will it be calculated?

Calculate the total value of Australian land owned by the landholder.

Calculate the land tax on the value of the Australian land as if all that land is taxed in Queensland.

Apply the total land tax amount to the Queensland portion of the total value of Australian land owned.

E.g., ABC Pty Ltd owns:

  1. Non-exempt property in Queensland with taxable value of $750,000; and
  2. Non-exempt property in Victoria with taxable value of $2,000,000.

Under existing legislation land tax payable in Queensland would be $8,250 ($1,450 plus 1.7c per dollar over $350,000).

Under the new legislation land tax payable in Queensland would be $11,250.  See below for calculation.

Total value of land is $2,750,000 therefore tax on this is $41,250($33,750 plus 1.5c per dollar over $2,250,000)

Queensland portion is $750,000/$2,750,000 x $41,250.

As you can see even though values have not changed the rate of tax has changed due to values of land from other states now being included to determine the rate of tax you pay in Queensland.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.

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