In Australia, guidelines on land tax may vary depending on the state you’re in. Queensland, for instance, implements a unique set of guidelines for land owners. The Office of State Revenue (OSR) is in-charge of collecting land tax. It’s also responsible for administering the Land Tax Act 1915. Also, the government of Queensland levies land tax on freehold land owners in the state at midnight on June 30 annually.
There are several things that you need to know when it comes to land tax. In this article, we will delve into the factors that affect land tax in Queensland:
What type of land requires land tax?
Land tax is levied on vacant land, land that is built upon, group title plans, plans of building units, time shares, as well as home unit companies.
What are the different types of landowners?
Owners who may be liable to pay land tax include individuals or residents (natural persons who usually reside in the country), absentees (natural persons who do not usually live in the country), trustees (these include estates of deceased persons), and companies (these include clubs and associations).
What is the taxable value of land?
This is used to compute the land tax that will be paid by the owner. In this case, there is a need to know how the taxable value is applied: whether it is calculated on the statutory land value or the averaged value.
- The statutory land value refers to the value of the land that is identified by the Valuer-General, Department of Natural Resources and Mines (DNRM). You’ll find it in the annual land valuation notice.
- The averaged value of land can be the average of the statutory land value for the current and previous two fiscal years, or the statutory land value of the current year, multiplied by the averaging factor for the year.
Moreover, land tax is calculated on the total value of freehold land that you own in the state at midnight of June 30 every year. Concessions are given on land that is used as your main place of residence and if the land is used for a farming business.
Several websites have an online land tax calculator that can give you estimates of the land tax that you need to pay. Bear in mind that this tool should only be used as a reference, since various factors play a role in how land tax is calculated.
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