The Revenue Legislation Amendment Act 2022 (QLD) passed through QLD parliament, assenting on 30 June 2022. This Act makes several changes to the Land Tax Act (2010) and will be of particular significance to QLD property owners. The changes to the Land Tax Act will come into effect on and from the end of this financial year (June 30 2023).

The Land Tax Act will now require the value of the taxpayer’s total landholding in Australia to be considered when assessing a taxpayer’s land tax liability in Queensland, meaning that landowners who own multiple properties across the country will be susceptible to a considerable increase in Queensland land tax.

How does it work?

The changes will apply to land tax calculated at midnight on 30 June 2023, taking effect from 1 July 2023. The Queensland Revenue Office will determine the total value of a Queensland taxpayers’ ‘Australian Land’. This total value will then be used to determine the land tax rates in a manner that considers interstate land as QLD land. This tax will then be apportioned to Queensland land holdings.

The Revenue Amendment Act will require Queensland landholders to declare all interstate properties and their value. To facilitate this,  the Queensland Revenue Office will issue a Notice of Assessment in September 2023. Recipients then must lodge the value of properties around Australia to the Queensland Revenue Office within 30 days. If there is no previous land to declare, property owners must provide the Queensland Revenue Office with property values on or before 31 October each year.

What does this mean?

Landowners will only be taxed on their Queensland properties. However, the rate of tax liability, determined by the total value of their Australian Land, will be used to determine such tax. This, in effect, will boost Queensland property owners into a higher land tax bracket should they have any interstate holdings.

Who will be affected?

These amendments will apply to all landowning taxpayers in Queensland. However, there are some exemptions. The amendments will not apply to:

  • A principal place of residence
  • Rural and Primary Production properties
  • Supported accommodation
  • Moveable dwelling parks (caravans)
  • Retirement villages

If you have any queries as to how these changes will affect you, please reach out to our property team, who will be happy to advise you.

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