Welcome to Property 101 and today we’ll discuss – Land Tax in Queensland.
As we just received our Land Tax bill, I thought it was timely to chat about the dreaded land tax. Firstly, it’s a State Government tax levied on the value of land owned by either an individual or another entity in Queensland as at midnight on 30th June each year. The tax is based on the value of the land, excluding any buildings. This means that if you own land in Queensland, you may be liable to pay land tax sooner or later.
The good news is that your principal place is exempt from land tax, so it only applies to investment properties. The amount of tax you pay depends on the value of your land and also importantly, the entity that owes the land.
However, they do provide a tax free thresshold. So if your total taxable landholdings (excluding your principal place) are worth less than $599,999 in a personal name or $349,999 in a company or trust, you won’t have to pay any land tax. However, if the total taxable value (excluding your home), of all your landholdings exceeds these threshold, you will be required to pay. Also, if you’re an absentee owner, they are even higher.
For example, let’s say you own an inner-city investment property Brisbane worth $1.2 million and the the assessed land value for this property is $890,000. For the current year, you will receive a land tax bill of $2,400. For properties with a higher assessed value, the tax rate increases.
Therefore – if you own property or are looking at buying in Queensland, it’s important to be aware of land tax and keep a track of your property’s assessed land value so you don’t get any costly surprises. All the best!
Link to Queensland Government Land Tax Site.
If you are considering purchasing a home or investment property in Brisbane and would like the assistance of a local Brisbane Buyer’s Agent, please don’t hesitate to contact us.
We look forward to hearing from you.
Sam Price, Director & Lead Buyer’s Agent – Templeton Property Brisbane.