The Queensland land tax grab that could hurt investors and renters


Are you a Queensland property investor or are you considering investing in Queensland?

Well, hold onto your hats!

In what could only be described as an extraordinary cash grab, the Queensland Government is making the most astonishing changes to land tax.

Once you are over the shock it should have you up in arms, but it has barely been raised by the media – mainstream or otherwise.

From 30 June 2023, an owner’s liability for land tax will be determined based on the total value of their Australia-wide landholdings that are not exempt, rather than solely on their non-exempt Queensland landholdings.


That’s right, if you also happen to own one or more properties interstate, in the same entity, your new Queensland land tax bill will include the statutory value of your interstate land.

So not only will the State Government in that respective state potentially send you a land tax bill, but you will also receive one from the Queensland Government.

In other words, this is a tax rate hike for all entities that hold land in Queensland as well as another Australian jurisdiction but will have no impact on Queensland-only landholders.

It will have major implications for investors and also renters when it comes into effect.

Here are my thoughts:

QLD Land Tax

To be clear, not everyone who owns property in Queensland will be up for the land tax.

There are exemptions for homeowners and for other uses of the land.

Also, if you hold an investment property and you do not reach the threshold you will remain exempt.

But the land tax threshold in Queensland remains very low, meaning most investors will get caught.

The land tax kicks in for individuals when their rateable land value hits $600,000 or more, while assets in companies and trustees it is $350,000.

In any case, purchase of an investment-grade house in Brisbane, and there is a high chance you will be straight into Land Tax territory.

From here on in, the rates of land tax ramp up faster than in any other capital city. 



Companies and trusts


You can read more about land tax essentials on the QLD Government Website.

The new regulations

Qld Government will now seek to assess all properties in your portfolio under the same entity when calculating your land tax bill.



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