If you own property in Queensland, it is important to be aware of your land tax obligations. Land tax is a state government levy applied to the total taxable value of land you own as at midnight on 30 June each year. However, not all landowners are affected, and exemptions may apply depending on the type and use of the property.
In this article, we explain the basics of land tax in Queensland and help you determine whether it applies to your situation.
What Is Land Tax?
Land tax is an annual tax charged by the Queensland Revenue Office (QRO) on the unimproved value of land owned in Queensland. It applies to individuals, companies, trustees, and absentee owners who own land above a certain threshold.
It’s important to note that land tax is calculated on the total taxable value of all landholdings in Queensland, not per property.
Who Has to Pay Land Tax?
Land tax applies if the total taxable value of your land exceeds the following thresholds:
- Individuals: $600,000 or more
- Companies and trusts: $350,000 or more
- Absentee landowners: $350,000 or more
These thresholds are assessed annually as at 30 June, and tax becomes payable for the financial year that follows.
Which Properties Are Exempt?
Not all land is subject to land tax. The most common exemption is for your principal place of residence (your home). Other exemptions may apply for:
- Primary production land (e.g. farms)
- Charitable institutions
- Retirement villages and aged care facilities
- Certain types of trusts and community housing
If your land qualifies for an exemption, you must apply to the QRO to have it recognised.
How Is Land Tax Calculated?
Land tax is calculated using a progressive scale. The more land value you own above the threshold, the higher the tax rate applied. The QRO uses land valuations provided by the Valuer-General to assess the taxable value of your land.
You can estimate your land tax liability using the calculator available on the Queensland Revenue Office website.
What About Interstate Land?
In 2023, the Queensland Government proposed changes to land tax laws that would have included an owner’s interstate landholdings when assessing land tax liability in Queensland. The aim was to calculate land tax based on the total value of an individual’s Australia-wide landholdings, not just those located in Queensland.
This proposal was met with significant concern from property owners and industry groups, and was ultimately repealed before implementation. While the change did not proceed, it serves as a reminder that land tax laws can evolve – and may do so with little notice.
Staying informed and regularly reviewing your property portfolio with a legal adviser is essential to ensure continued compliance and sound investment planning.
Final Thoughts
If you are unsure whether land tax applies to you, or if you believe you may be eligible for an exemption, seeking professional advice is essential. Land tax can have a significant impact on your cash flow and investment strategy, particularly if you are a property investor or hold land in a trust structure.
Our experienced property law team can help you understand your land tax obligations, apply for exemptions, and ensure your property interests are protected. Contact us today for tailored legal advice.
