Queensland to slug landowners Australia-wide

Revised levy adds interstate holdings into land tax calculation.

Landowners Australia-wide could face a tax bill from Queensland next year if their holdings include property in the state, even if sits below the current QLD threshold for the levy.

Changes to the way Queensland calculates that threshold mean it will include interstate holdings from 30 June 2023.

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Interstate properties and land tax

From 30 June 2023, when calculating land tax, this will incorporate the total value of your Australian land. This includes your taxable land in Queensland and your relevant interstate land. ‘Relevant interstate land’ includes land located in another state or territory that is valued under interstate valuation legislation and is not excluded interstate land.

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 (other than absentees) and $350,000 for companies, trustees and absentees.

A good example is outlined on the following link;
https://www.qld.gov.au/environment/land/tax/interstate.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.