September 20, 2018

Land Tax in Queensland

In Queensland, land tax is state tax imposed on the land value. Under the Land Tax Act 2010, the Queensland Government imposes it on owners of freehold land every June 30. It is assessed based on the taxable value of the total land-holdings of the owner and any exemptions applicable.

Here are some of the things you need to know about land tax in Australia:

What types of land are liable for land tax

These include vacant land, land which is built on, as well as lots in building unit plans, group title plans, timeshare scheme, and which is owned by a home unit company.

There are different types of owner for land tax

In general, the owner refers to the individual or corporation which is registered as the owner with the Department of Natural Resources and Mines. An owner can also be someone with legal entitlement to the land, who is entitled to income from the land or is taken to be the owner. This is the case for undisclosed trusts, deceased states, etc.

Use a land tax calculator

This can give you an idea of the amount of land tax that you need to pay at general rates. There are many types of land tax calculators but in general, you need to state the year you’re calculating the land tax for, land value, as well as the state so you can calculate the estimated land tax.

Know how to minimise land tax

While there are ways to reduce land tax payments in Queensland, make sure to assess your current situation first and see if these tips suit you:

  • Buy property in different states. Each state has a land tax threshold. In the Northern Territory, there is no land tax at all. So instead of investing in property in one area which can lead to exceeding the threshold, consider doing it in different states.
  • Buy apartments/units instead of houses or freehold properties. Compared to a house, a unit has lower land content because of the shared strata with other apartment owners.
  • Buy in property in different entities. Buy properties using entities such as family members, companies, as well as trusts. Land tax thresholds are generally higher for individuals, so you may want to invest in property in individual names.

Certain changes can affect land tax

Some of the events that can affect the liability of an owner for land tax include buying or selling land, change of residential status, revaluation, not being able to meet exemption requirements, and changes that have an impact on trustees, corporations, as well as deceased states.

Do you know other things to consider when it comes to land tax in Australia? You can share your ideas in the comments section below.

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