What is land tax and what are the thresholds in Queensland?

Most people who own land in Queensland do not need to pay land tax and probably are not too concerned about it. Before you make a decision about buying or selling a property, you should however consider how that decision will affect your liability for land tax.

Land tax is a state tax, calculated on the freehold land you own in Queensland at 30 June each year. In short, the Office of State Revenue will add up the taxable value of all land that you own in Queensland at 30 June, excluding land on which you have received an exemption.

Different rates of tax apply depending on the total value of the land and what type of owner you are. You are liable when the total taxable value of your land is:

• $350,000.00 or more – for companies, trustees or absentees; and
• $600,000.00 or more – for individuals.

Importantly, you can claim a home exemption on land you use as your home.

For more information, please see: https://www.qld.gov.au/environment/land/tax/overview/about

If you believe that the government land valuation is incorrect, you do have the ability to challenge this by obtaining your own independent valuation – we can recommend contacting Local Valuers Australia for further advice.

Land tax clearance certificates

If you a buying a property, it is critical that you obtain a land tax clearance certificate prior to settlement to ensure that the seller pays for any land tax liability owing on the land. If you do not, the purchaser will be held liable for any land tax owing at 30 June.

In all of our purchases, we obtain a land tax clearance certificate as part of our minimum standard searches.