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Everything you need to know about land tax in Queensland

Anybody who is interested in developing their property investment portfolio should first gain an in-depth understanding of the costs associated with doing so.

In Queensland, land tax is imposed on owned land such as holiday homes, investment properties and vacant land, among many other land uses. 

Find out everything you need to know about land tax in Queensland and become familiar with the potential costs of developing your property investment portfolio.

 

What is land tax?

Land tax is administered by the Office of State Revenue. The purpose of collecting land tax is to fund government services and new infrastructure for Queensland.

Land tax only applies to owners of land that exceed the land tax threshold. If the value of your land exceeds the threshold, a tax will be imposed on it and you will be liable. 

With that in mind, the landowner is only required to pay tax on the unimproved land. Which means the land minus any improvements such as landscaping, fences and paths.

 

How is land tax calculated in Queensland?

Land tax is calculated based on the type of ownership, the total taxable value of the land and whether any exemptions apply. The tax payable differs between states and territories, so investors should take that into consideration when purchasing land.

Land tax is calculated by the land tax threshold set by the Office of State Revenue.

 

Land tax threshold Queensland

The current land tax threshold in Queensland is $600,000. 

This means if you own an individual block of land or multiple lands in Queensland that amount to the threshold, you will be liable to pay land tax.

 

Taxable ValueLand Tax Rate
Less than $600,000$0
$600,000 or more but less than $1,000,000$500 + 1 cent for each $1 more than $600,000
$1,000,000 or more but less than $3,000,000$4,500 + 1.65 cents for each $1 more than $1,000,000
$3,000,000 or more but less than $5,000,000$38,500 + 1.25 cents for each $1 more than $3,000,000
$5,000,000 or more but less than $10,000,000$72,500 + 1.75 cents for each $1 more than $5,000,000
$10,000,000 or more$150,000 + 2.25 cents for each $1 more than $10,000,000

 

*Source: https://boxas.com.au/small-business-handbook/land-tax/ 

 

You might also like to calculate your land tax with the Queensland Land tax calculator.

 

Ways to legally avoid paying land tax in Queensland

In some cases, you may be exempt from paying land tax.

Recognised exemptions in Queensland include:

  • Home exemptions
  • Transitional home exemptions
  • Primary production exemptions
  • Moveable dwelling (caravan) parks exemptions
  • Charitable institutions exemptions
  • Other exemptions
    • Aged care facilities
    • Retirement villages
    • Supported accommodation
    • Society, clubs or associations

*Source: https://www.qld.gov.au/environment/land/tax/exemptions 

 

However, if you are eligible for exemption, this may only be a reduction in the tax you owe. 

To learn more about land tax, get in touch with us at Simmons Livingstone & Associates. Our local tax experts will be able to provide an in-depth idea of potential cash flows, expenses and taxes that you will need to consider before expanding your property investment portfolio.

 

If you liked this article, you might also like the benefits of investing in residential property.



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