Queensland Backflips on Land Tax Reforms

In what has been a positive end to the weekly news cycle, we have seen Queensland announce that they would not be proceeding with their proposed land tax reforms. This comes as welcome news to both landlords, aspiring property investors, and of course renters or those looking to rent who would have no doubt seen increases in their rental prices as the higher taxes were passed on.

Under the current rules, Queensland land tax applies and is calculated based on the value of the land that you currently hold in Queensland. There are different land tax-free thresholds that apply depending on the entity that owns that particular Australian property in Queensland. These are as follows:

  • Individuals: $600,000 (other than absentees)
  • Companies / Trustee / Absentees: $350,000

This means that if the assessable value of your land in any given financial year is below $600,000 and the property is in your individual name, then your land tax bill would amount to zero. We should note here that this applies to investment properties and not to your primary residence, i.e. the house that you live in.

Under the current rules, if you own properties in different states and territories, then these would not have any impact on your land tax bill in Queensland.

What were the proposed changes..?

Queensland sought to amend the land tax legislation to factor in the total value of the taxpayer’s ‘Australian land’, including the other states and territories, calculating the tax bill as if all of the properties were located in Queensland, and then apportioning the tax bill based on the Queensland component.

Whilst this would likely have discouraged further investment in Queensland, and led to reduced stamp duty revenues for the state Government, the biggest issue for the state was that this change required the other states and territories to cooperate and provide the data to Queensland on land values in their own states. This would have meant having to employ further staff just to report to the other states on their own citizens’ investments, which may have been wishful thinking, and as the other premiers have expressed, was precisely this.

What happens next..?

The change comes as welcome news for property investors and renters, as this potential for increased taxes for borderless investors are now not on the cards in the short term. It’s important to note that the state Government has only shelved these reforms, so may revisit this in future, however for now investors can breathe easy with their Queensland investments.

If you have any questions about your Queensland property, or how the proposed changes may have impacted you, please feel free to reach out and book in a complimentary chat.


To Your Financial Success!

Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd - No: 200305462G | MAS License No: FA100035-3

Australian Expatriate Group is a division of Global Financial Consultants in Singapore providing specialist advice to Australians living abroad.

To learn more about how we may be able to help you, please contact us:

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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.

*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.

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