Edit: This proposed land tax change has now been withdrawn by the QLD government and no longer applies.
Even if a landholder’s properties in QLD do not meet the current threshold for the state’s land tax, they may be assessed by the government for land tax under new legislation that will take nationwide property holdings into account.
On 30 June 2023, significant changes to the threshold for qualifying for exemption from land tax in Queensland will come into effect, meaning that a taxpayer in NSW with sub-threshold property on both sides of the border will have to pay land tax for the first time if the combined value of their properties exceeds QLD’s land tax threshold.
The general manager of technical policy at the Institute of Public Accountants, Tony Greco, stated that few individuals are aware of this shift in legislation, with most investors likely to be shocked by their next land tax assessment.
What this means for you
There will be no difference in how you are assessed if you only own property in QLD. If you have property in other states, the value of that property will be considered when calculating your QLD land tax assessment.
What do I need to do?
Anyone with property in Queensland and another state or territory must register their interstate property holdings on the Queensland Revenue Office’s website. The QLD government website states,
“You’ll need to create a QRO Online account and fill out the declaration, including land description, value, and ownership percentage.”
“From 30 June 2023, you will need to complete this declaration by the earlier of the following:
- within 30 days of receiving a land tax assessment notice
- on or before 31 October.”
An example of how this could cost unknowing investors thousands of dollars
Let’s say an individual landowner owns land in Queensland with a taxable value of $745,000 and also owns land in Victoria valued at $1,565,000 on 30 June 2023. The land tax bill would be $1,950 for the 2022–23 financial year but under the aggregation of interstate property changes the land tax bill in Queensland will increase to $8,422 for each of the following years. Thousands of dollars extra.