Clearances
A land tax clearance certificate protects the interests of any intending purchasers of freehold land in Queensland by advising whether any land tax remains unpaid in the name of the vendor in relation to the land.
A land tax clearance certificate will confirm that either no land tax remains unpaid on the land or a potential liability may exist against the land or there is an amount of land tax outstanding for the land.
Payment of a clearance certificate liability or outstanding tax advice ensures the issue of a land tax certificate confirming no land tax remains unpaid on the land and removes any further liability from the purchaser. However this payment will not remove any additional debt owing by the vendor for this land.
If a purchaser does not obtain a land tax certificate confirming no land tax remains unpaid on the land, the tax will remain a charge against the land and the purchaser may be asked to pay the tax.
Any apportionment of land tax is a matter for the parties involved in the transaction under the terms of the contract. Land tax is paid in advance based on land owned as at midnight of 30 June and the Land Tax Act 1915 does not provide for the apportionment of tax where land is not owned for the full financial year.
The certificates can be requested by applying in writing direct to the Office of State Revenue (OSR) or online through CITEC CONFIRM.
The request must show the following details:
- vendor's name in full
- purchaser's name in full
- real property description
- anticipated date of possession.
The anticipated time for providing these certificates is 10 days. In limited instances this time may be extended.
Please ensure that your application is lodged with sufficient time to ensure that there are no delays in settlement.
The Land Tax Regulation 1999 prescribes fees for the provision of the certificates. The following fees are effective from 1 July 2008:
- $30.20 for an application lodged with the OSR
- $24.40 (plus CITEC delivery fee) for online applications by Public Access through CITEC CONFIRM.
Enhancements have enabled internet users to lodge applications directly to CITEC CONFIRM and be billed online. To take advantage of this service, please call the CITEC CONFIRM Hotline on (07) 3222 2700 or 1800 773 773 (from outside the Brisbane metropolitan area) or visit their website
