Under new tax rules effective from 30 June 2023, the Queensland Government will calculate land tax on the basis of the total value of your Australian land. The new rules are different from the previous tax rules which calculates land tax on the basis on your Queensland land only.

The change in tax rules is an attempt by the Queensland Government to make the system “fairer and more equitable”. This means that owners with interstate properties will face higher land tax in Queensland. 

Under new tax rules effective from 30 June 2023, the Queensland Government will calculate land tax on the basis of the total value of your Australian land. The new rules are different from the previous tax rules which calculates land tax on the basis on your Queensland land only.

The change in tax rules is an attempt by the Queensland Government to make the system “fairer and more equitable”. This means that owners with interstate properties will face higher land tax in Queensland. 

Queensland land only

You will not be affected by the new tax rules if you only own land in Queensland. The land tax rates and exemptions applicable to the calculation of your land tax shall remain the same as before. 

Currently, you are not required to pay a land tax if your land is less than $600,000 for an individual or $350,000 for companies, trustees and absentees.

 

Queensland and interstate land

You are required to declare your interstate landholdings via your QRO Online account if you own land in Queensland as well as in another state or territory. As of 30 June 2023, you must complete the declaration by the earlier of the following:

• within 30 days of receiving a land tax assessment notice;
• on or before 31 October.

You must enter the value of each parcel of interstate land when completing the declaration.

 If you are an individual who falls into this category, your land tax will be calculated based on a total value of the following:

• the total of your taxable land in Queensland and,
• the statutory value of your interstate land.

 The statutory value shall be determined by valuation legislation in the state or territory. The value entered shall either be

• the statutory value as of 30 June 2023 or,
• the most recent value of the land

Surcharge

 An absentee is a foreign individual who do not ordinarily reside in Australia. A foreign individual is considered as an absentee if you:

• were away from Australia at 30 June, or
• have been away from Australia for more than 6 months in total during the financial year before 30 June.

An absentee cannot claim a home or primary production exemption and is liable for land tax if the total taxable value is $350,000 or above. In addition to land tax rates for absentees, there is a 2% surcharge when calculating your land tax. The 2% surcharge applies to the total value of your Australian land.

Calculating land tax with interstate land

Different land tax rate will apply to different types of owners when calculating the taxable value of your land. The calculation is done in two steps. The first step is the calculation of the taxable value of your total Australian land. In the second step, the result of the first step is applied to your land in Queensland to obtain the annual land tax liability.

When the value of your interstate land is updated, you can notify the Queensland Government for a reassessment of your land tax liability.

Example

On 30 June 2022, John owns land in Queensland with a taxable value of $650,000.

Taxable value of land: $650,000

Calculation 

= $500 + (1 cent x $50,000)

= $500 + $500

Tax payable = $1,000

Suppose if John also owns land in NSW

On 30 June 2022, John owns land in Queensland with a taxable value of $650,000 and land in NSW with a taxable value of $1,250,000. His land tax is calculated using the rates for individuals

Taxable value of Australian land: $1,900,000

Calculation

= $4,500 + (1.65 cents x $900,000)

= $4,500 + $14,850

= $19,350

This amount is applied to the Queensland portion of John’s land (i.e. ($650,000 ÷ $1,900,000) x $19,350)).

The amount on the assessment notice for the land tax is $6,619.73.

Excluded land

Depending on the ownership and use of the land, you may be eligible for a land tax exemption. Some exemptions are only limited to land in Queensland. More information on exclusions and how to apply will be available after 30 June 2023.

Exclusions available for interstate land	Exemptions available for Queensland land only
Home (principal place of residence)	Government land
Primary production	Port Authority land
Supported accomodations	Societies, clubs and associations
Moveable dwelling (caravan) park
Retirement village
Transitional home
Charitable institutions
Aged care

Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent. If you or your families or friends need our services, please feel free to contact our team for any assistance. 

This article is for informational purposes only and does not form part of our advice. This article is based on Australian Taxation Office (ATO). Please contact our team if you need any assistance.

Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, WeChat: clairechang26

Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, WeChat: michellejc