Under current projections, landholders in Queensland with properties in QLD and other states, could be subject to a land tax assessment from the government, even if their holdings do not meet the current threshold for the tax in QLD.

Changes to the threshold for how much land a person must own in order to be exempt from paying land tax in Queensland will come into effect on 30 June 2023, meaning that a taxpayer in NSW with sub-threshold property on both sides of the border will have to pay land tax for the first time.

The general manager of technical policy at the IPA, Tony Greco, stated that not many people are aware of this change of legislation, with most investors likely to be shocked by their next land tax assessment.

Click here to see the QLD land tax thresholds, for different types of owners

What does this mean for me?

If you only have property within QLD, there won’t be any change for how you are assessed. However, if you own property in other states, that property value will count towards your QLD land tax assessment.

How will it work?

Anyone with property in Queensland and another jurisdiction or territory must register their interstate landholdings on the Queensland Revenue Office’s website.

The QLD government website said: “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.”

Examples:

Mr Greco (The general manager of technical policy at the IPA) gave two examples of how this might work.

  1. An individual landowner owns land in Queensland with a taxable value of $745,000 and also owns land in Victoria valued at $1,565,000 on 30 June 2023. The land tax bill would be $1,950 for the 2022–23 financial year but under the aggregation of interstate properties changes the land tax bill in Queensland will increase to $8,422 for each of the following years.
  2. An individual landholder with $599,999 in taxable land in Queensland and $400,000 in NSW would pay no land tax for the FY22–23 as the Queensland landholding is under the exemption threshold. Under the aggregation of interstate properties changes, land tax will be payable in Queensland despite both properties falling under the respective state land tax exemption thresholds. For each following year this individual will be paying $2,700 land tax.