UPDATE (December 2022): In July 2022, the Queensland Government introduced amendments to the land tax rules, to levy interstate land tax. The government is no longer proceeding with these changes. The Betting Tax and Other Legislation Amendment Bill 2022 gives effect to this decision.
Do you own an investment property in Queensland?
If so, are you aware of the changes to the land tax rules from July 2023?
If you only own properties in Queensland, then these changes will not affect you. However, if you own property in Queensland and in other states, these changes will directly impact you.
What has changed?
From 1 July 2023 (for land tax assessed on land values as at midnight on 30 June 2023), your land tax assessment undertaken by the Queensland Government will be calculated on the total value of your Australian land, not just the value of your Queensland land (as previously was the case)
Is all interstate land to be included in the calculation?
No. ‘Excluded Interstate Land’ will be ignored when calculating land tax. Typically, the same exclusions that apply to Queensland land, will also be available to interstate land. Some of these exemptions include the home (principal place of residence) exemption, primary production exemption, supported accommodation exemption, moveable dwelling (caravan) exemption, and the retirement village exemption.
Will this mean I pay more land tax?
As mentioned above, there will be no change to the land tax liability for taxpayers who only own land in Queensland.
However, taxpayers owning land in Queensland and non-exempt land elsewhere in Australia, will pay more land tax in Queensland.
This increased land tax in Queensland does not affect land tax payable elsewhere in the country and will not create any credit available in the other states for additional tax paid in Queensland.
Does this impact the foreign owner surcharge?
Yes, the 2 per cent surcharge applied to absentee and foreign companies or trusts, will be applied to the land tax calculated under this new methodology (to include all interstate land values).
These changes impact me, do I need to do anything?
Yes, action is required if you are a landholder that is impacted by these changes, as you will be required to declare all your interstate landholdings each year.
To do this, you will need to create a QRO Online account and complete the annual declaration, by the earlier of the following (each year):
- within 30 days of receiving a land tax assessment notice
- on or before 31 October.
You can visit here to set up your QRO Online Account: https://www.business.qld.gov.au/running-business/support-assistance/qro-online/manage-account/create-account
How can I find out more?
For more details and example calculations for these changes, please visit the QRO website, found here: https://www.qld.gov.au/environment/land/tax/interstate
If you need further information, please contact us at SIDCOR on 1300 743 267 OR here.