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Interstate properties and land tax

Interstate properties and land tax

On 16 December the Queensland Government announced amendments to land tax.

The amendments relate to how land tax is calculated. This may apply to you if you own, or have an interest/share in, property in Queensland an in another Australian state or territory.

The aim of these amendments is to reduce the gap in land tax paid by landholders who own land solely in Queensland with those who own land both in Queensland and interstate.

For example, at current rates, a landholder with taxable landholdings of $1 million in Queensland would pay $4,500 in land tax, an average of 0.45%.

Another landholder, with $600,000 in taxable land in Queensland and $400,000 in New South Wales would only pay $500 in land tax in Queensland and nothing in New South Wales.

Under the amended system, this same landholder with $600,000 taxable land in Queensland and $400,000 in New South Wales would pay $2,700 in land tax, an average of 0.45% on the value of land held in Queensland.

This will not effect landholders who own land solely in Queensland and the main residence exemption will still apply.

The amendments are not retroactive, they will apply to land held at 30 June 2022 and onwards.

For more information on land tax and these amendments, please don’t hesitate to get in touch with us. Additionally, please visit the Queensland Government website for information.

Land tax | Environment, land and water | Queensland Government (www.qld.gov.au)

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