QLD Land Tax Update
The Queensland Government has updated the way Land Tax will be calculated as of 30 June 2023 – Assessment period for the 2024 Financial year. From this time the total value of your Australian Land will be used to determine whether the tax-free threshold has been exceeded ($350,000 Companies, Trustees & Absentees [Foreign Individuals] / $600,000 for individuals) and the rate of land tax will be applied on the value of the Queensland Landholdings.
If you own land in another state or territory in addition to Queensland, you will need to declare your interstate landholdings by setting up a “QRO Online Account” to complete the declaration including land description, value and percentage of ownership. This will need to completed by the earlier of the following
– Within 30 days of receiving a land tax assessment notice
– On or before 31st of October
Land value will be determined by the valuation legislation of the applicable state or territory in addition to, as whether any exemptions or exclusions are applicable. When declaring the value of the parcel of interstate land you would enter the statutory value of the land as at 30 June 2023, if this value is unknown, use the most recent value you can ascertain. If you receive an updated value for the interstate land, you can notify the Queensland Office of State revenue for the land tax liability to be reassessed.
To summarise these changes, you will only be taxed on the Taxable Value of Queensland Landholdings but ultimately with the inclusion of the total Taxable value of Australian landholdings could potentially see a scenario of creeping into the tax bracket where a higher rate of tax is applied on the Queensland Holdings. This can be demonstrated by the following example;
Percy Vere has Australian landholdings consisting of, a parcel in Queensland to the value of $745,000, and one parcel of land in New South Wales with a Statutory value of $1,000,000. Under the current arrangement, Percy would have a land tax liability of $1,950. Under the new arrangement in the 2023/2024 Financial Year, including the NSW property too, the calculation would see the liability increase to $7,169.29.
If you feel this update may be relevant to your circumstances, please give our office a call to discuss the matter in more detail.
