Do you have a property or block of land in Queensland? You might want to read this article further! Even though you are not currently paying land tax in QLD now, you might be required to pay from 30 June 2023.
Interstate properties and land tax
From 30 June 2023, the QLD government will use the total value of your Australian land. This includes your taxable land in Queensland and your relevant interstate land – Land located in another state or territory that is valued under interstate valuation legislation and is not excluded interstate land.
The total value of your Australian land will be used to determine:
- whether the tax-free threshold has been exceeded
- the rate of land tax that will be applied to the Queensland proportion of the value of your landholdings.
The current tax-free thresholds are $600,000 for individuals (other than absentees) and $350,000 for companies, trustees and absentees.
Queensland land only
If you only own land in Queensland, you will not be affected by this change.
You will continue to be able to access all available exemptions, such as the home (principal place of residence) and primary production exemptions.
Queensland and interstate land
If you own land in Queensland and in another state or territory, you will need to declare your interstate landholdings. You’ll need to set up a QRO Online account and complete the declaration, including land description, value and percentage of ownership.
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.
Interstate land value
If you own land in Queensland and interstate, land tax will be calculated on:
- the total of your taxable land located in Queensland;
- the statutory value of your interstate land.
The ‘statutory value’ of interstate land is determined by valuation legislation in that state or territory. It does not include excluded land.
When you complete an interstate land declaration online, you’ll enter the value of each parcel of interstate land. For an interstate property you owned on 30 June 2023, you would enter the statutory value for that parcel of land as at 30 June 2023. If you don’t know the value of a parcel at the relevant 30 June, use the most recent value you can ascertain. If you get an updated value for your interstate land, you can notify us to have your land tax liability reassessed.
Calculating land tax with interstate land
The land tax rate that applies depends on what type of owner you are and the value of your land. This rate (and surcharge, if applicable) is applied to the total value of your Australian land. Then this figure is applied to the Queensland portion to get the annual land tax liability.
On 30 June 2022, Trevor owns land in Queensland with a taxable value of $745,000. His land tax is calculated using the rates for individuals.
Taxable value of land: $745,000
= $500 + (1 cent × $145,000)
= $500 + $1,450
Land tax will be $1,950 for the 2022–23 financial year.
On 30 June 2023, the value of Trevor’s land in Queensland has not changed. But he now also owns land in Victoria valued at $1,565,000. The total value of Australian land owned by him is $2,310,000, which means the land tax is calculated using a higher rate for individuals.
This is how Trevor’s land tax will be calculated:
Taxable value of Australian land: $2,310,000
= $4,500 + (1.65 cents × $1,310,000)
= $4,500 + $21,615
This amount is applied to the Queensland portion of Trevor’s land (i.e. ($745,000 ÷ $2,310,000) × $26,115)).
Land tax will be $8,422.37.
For land in Queensland, you may be eligible for a land tax exemption depending on the ownership and use of the land.
If your interstate land meets certain eligibility requirements, you can apply to have its value excluded from the land tax calculation.
Mostly, the eligibility requirements for exemptions that are available in relation to land in Queensland will apply for the exclusions available in relation to interstate land with generally equivalent requirements applying in some circumstances. Some exemptions will remain limited to land in Queensland only.
- Home (principal place of residence)
- Primary production
- Supported accommodation
- Moveable dwelling (caravan) park
- Retirement village
- Transitional home
- Charitable institutions
- Aged care
Fiskl Company owns the following landholdings:
- land in Queensland with a taxable value of $1,345,000
- interstate land (including a farm in Tasmania) with taxable value of $775,000.
Fiskl Company applies for the farm in Tasmania to be excluded because it is being used for a primary production business. The exclusion is approved, reducing Fiskl’s interstate land value to $150,000.
This is how Fiskl’s land tax will be calculated using the rates for companies:
Taxable value of Australian land: $1,495,000
= $1,450 + (1.7 cents × $1,145,000)
= $1,450 + $19,465
This amount is applied to the Queensland portion of Fiskl’s land (i.e. ($1,345,000 ÷ $1,495,000) × $20,915)). Land tax will be $18,816.51.
If Fiskl did not apply for the exclusion, their land tax liability would be $20,010.05, based on its total Australian land value of $2,120,000.