e-Revenue Queensland Issue 6 July 2008

Land tax for joint real estate investments

Land tax is based on the value of an owner’s aggregated land holdings as at 30 June each year. If you co-own property, then land tax is normally calculated on your share of the land.

However, when five or more people purchase a property the Commissioner may assess the joint ownership as one owner - deemed a trust.

In these circumstances, one of the owners as trustee may receive a single land tax assessment even though each owner’s individual share in the land would not have been sufficient to generate a land tax liability. Where the taxable value of all land held by the trust exceeds $349,999 a land tax liability will be triggered.

For more information

  • View the practice direction land tax 16.1 Joint owners – application of section 25(2A)
  • Visit the land tax section of the OSR website 
  • Subscribe to land tax email alerts
  • Call our Client Contact Centre on 1300 300 734.

Pay-roll tax annual returns due by 21 July

Registered pay-roll tax employers are required this month to lodge both their June periodic return (due 7 July) and their 2007-08 annual return (due 21 July).

Employers would have received a letter from the Office of State Revenue (OSR) containing important information regarding steps for lodging their June 2008 periodic return and the 2007-08 annual return.

 Annual return

Registered employers would have also recently received their new online lodgment password via mail from the Office of State Revenue (OSR).

Employers should follow the following steps to lodge their annual return:

  • select the lodge online option under the pay-roll tax section of OSR’s website and enter their client number and new password
    complete each section of the annual return
  • check the information displayed on the summary page and print a copy for their records
  • lodge the return using the ‘submit’ button when satisfied the return is complete.

To help employers complete their annual return, an online demonstration is available on the OSR website to walk through the online lodgment process.

If you haven’t received your new online lodgment password or if you are unable to lodge online and need to request a paper annual return, please call the OSR Client Contact Centre on 1300 300 734.

You must lodge an annual return even if no further tax is payable.

Periodic return

Employers must lodge their June periodic return before lodging their annual return.

The pay-roll tax online service now includes a new assessment information screen which enables employers to:

  • view their assessed liability history for the current financial year
    obtain their payment reference numbers for periodic returns.

For more information

  • Visit the pay-roll tax section of the OSR website
  • Subscribe to pay-roll tax email alerts
  • Call our Client Contact Centre on 1300 300 734.

Pay-roll tax harmonisation takes effect

Pay-roll tax harmonisation changes came into effect in Queensland on Tuesday 1 July 2008, bringing significant changes for Queensland businesses that pay out more than $1 million a year in wages.

Under the new scheme, pay-roll tax provisions relating to grouping, contractors, employment agents and employee share schemes are now aligned with those in New South Wales and Victoria.

Further amendments that may affect your business include:

  • Increased motor vehicle and accommodation allowances
  • New exemptions for parental and adoption leave
  • New exemptions for wages paid to volunteer fire fighters, emergency services workers and voluntary ambulance officers.

Registered pay-roll tax employers need to familiarise themselves with the changed legislation. You can view the Pay-roll Tax (Harmonisation) Amendment Act 2008 at the Office of Queensland Parliamentary Counsel website.

For more information

State Budget changes to duties

Transfer and mortgage duty self assessors need to be aware of important changes to duties announced in the 2008-09 State Budget.

Transfer duty

The Budget increased the first home transfer duty exemption to $350,000 from 1 July 2008 and a further increase to $500,000 from 1 September 2008, providing savings for those purchasing their first home. The State Budget has set the abolition of the First Home Owner Grant for homes with a value of $1 million or above from 1 January 2009 subject to the agreement of the other states and Commonwealth Government.read more...

The transfer duty rate structure was also simplified by reducing the number of rate bands from seven to five.

The combined effect of increases in concessions and exemptions and the revision of the rate structure will mean a reduction in duty payable on all homes valued between $320,000 and $1 million.

Mortgage duty

Mortgage duty will be abolished on 1 July 2008, six months earlier than scheduled, providing benefits for Queensland homebuyers, investors and businesses taking out a mortgage. To find out more about mortgage duty abolition, including transitional arrangements, view the Abolition of Mortgage Duty in Queensland information sheet in the forms and publications section of the OSR website.

For more information

Visit the 2008-09 State Budget announcement section of the OSR website
Call our Client Contact Centre on 1300 300 734.