Overview of land tax in Queensland

Land tax is a tax on freehold land. For land tax purposes ‘land’ includes:

• vacant land 
• land that is built on
• lots in building unit plans
• lots in group title plans
• lots in a time share scheme
• lots owned by a home unit company.

Land tax is assessed on the taxable value of an owner's total land-holdings. We will add up the value of all land that you own in Queensland at 30 June. The taxable value will be the total value of your land, less any exemptions or deductions that you have claimed.

Land tax is a state tax. If you own land in another state, we advise you to contact that state’s tax office for information on your obligations and entitlements.

The owner of the land at midnight 30 June is liable to pay land tax. The owner is usually the person on the Certificate of Title. This includes every person who is entitled to be registered as the owner on the title.

Note: If a contract of sale is signed before 30 June, but the buyer takes possession after that date, the seller is still the owner for land tax purposes.

You must pay land tax if the total land tax value of land you own in Queensland at midnight 30 June exceeds the relevant threshold. This assessment is for the financial year starting 1 July and finishing the next 30 June.

If you buy or sell land during the year, the tax is not apportioned between the buyer and seller—the owner on 30 June is liable. If you wish the land tax to be apportioned, this matter will need to be negotiated between the buyer and the seller.

Land tax is calculated on the unimproved value of land. This is averaged (where possible) over 3 years to provide a relevant unimproved value for land tax purposes.

We cannot change a land tax assessment because the unimproved value is considered to be too high.

The unimproved value of land is determined by the Department of Environment and Resource Management (DERM). If you would like more information, or you think the value is wrong, you can contact DERM.

In most cases, you do not have to take any action—we will contact you to explain your obligations and entitlements. However, if we have not contacted you by 30 June in the financial year of your liability, you must let us know by 31 July of the next financial year.

If you are liable to pay land tax after a decision has been made on any claims lodged for a deduction/exemption, we will mail to you a notice of assessment that states the amount of land tax you must pay.

Your assessment notice will issue automatically based on the information that we hold—this includes the land you own and its taxable value. You must notify us of any changes to your entitlements or ownership within 1 month of the change, otherwise you may be penalised. 

The threshold that will apply to you will depend on what sort of taxpayer you are. There are various classes of taxpayers including:

• residents (people who usually live in Australia)
• absentees (people who do not usually live in Australia)
• companies (includes clubs, associations etc.)
• trustees (includes trustees of deceased persons' estates).

Note: The land tax liability for the 2009–2010 financial year was calculated on 30 June 2009.

Land owned by a resident

A resident (an individual) may need to pay land tax if the total relevant unimproved value of the freehold land owned is $600,000 or more.

Land owned by a company, trustee or absentee

A company, trustee (including trustee/s of deceased estates) or an absentee may be liable for land tax if the total relevant unimproved value of the freehold land is $350,000 or more.

‘Company’ includes club, association, society and similar. An ‘absentee’ is an owner who does not usually live in Australia or an external territory.

See current land tax rates.