For the 2008-09 financial year, resident individuals will be liable for land tax if the total relevant unimproved value of the freehold land owned by that person as at 30 June 2008 is equal to or greater than $600,000.

Note – rates are marginal rates unless otherwise specified

Companies, trustees or absentees will be liable for land tax if the total relevant unimproved value of the freehold land owned as at 30 June 2008 is equal to or greater than $350,000.

The 2008-09 State Budget changes take effect from 1 July 2008 for the 2008-09 financial year which relates to assessments of land held as at 30 June 2008.

For individuals who reside in Australia, land tax applies if the taxable value of land owned at 30 June 2007 is $600,000 or more.

For companies, absentees and trustees, land tax applies if the taxable value of land owned at 30 June 2007 is $350,000 or more.

Land tax rates incorporated the benefit of the previous statutory deduction, the general rebate and minimum tax payable for natural persons used to calculate land tax prior to the 2005-06 financial year. These rate changes also incorporated the statutory deduction threshold for resident individuals and phasing in rebate for companies, absentees and trustees.

The new rate scales are designed to incorporate these features of the current scheme and to provide rate reductions as well.

The new rates of tax will ensure all taxpayers will be better off compared to their position if there were no changes to the previous rates.

Land tax is payable on the taxable value of an owner's land. The taxable value is the relevant unimproved value of the land less exemptions and deductions.
If capping does not apply, the relevant unimproved value is the lesser of:

a. the unimproved value of the land that applies for the financial year; or

b. the averaged unimproved value of the land for the financial year.

If capping applies the relevant unimproved value is 150% of the relevant unimproved value of the land for the previous financial year. Capping applies for the 2007-08, 2008-09 and 2009-10 financial years only.

To obtain item (b), the unimproved value of the land for the current and previous two years is averaged. If the unimproved value for the three years is not available, an averaging factor (a percentage of the current year's value) is used.

Assessments are determined on land owned as at midnight 30 June each year and covers the next financial year.

Land tax is levied on the unimproved value of freehold land as determined by the Department of Natural Resources and Water. Under the provisons of the Land Tax Act 1915, unimproved values of land are averaged over the current and previous two years. The averaging of values is designed to minimise the impact of increases in land tax where there are rises in unimproved values. In addition from 1 July 2007 capped values were introduced.

The main reasons for greater increases in land tax assessed compared to increases in the unimproved value are:

• The increase in the relevant unimproved value may push the taxable value to a higher land tax rate bracket causing the increase in land tax assessed to be greater than the increase in the unimproved value of the land for that year; and
• The taxable value is the relevant unimproved value less any deductions or exemptions. If your circumstances change and certain deductions or exemptions do not apply during the current land tax year, the taxable value will increase resulting in increases in land tax assessed.

There is no apportionment of land tax. It is assessed for the full year based on land owned at midnight 30 June. Any apportionment is a private arrangement between the vendor and the purchaser.

• Payments may be made by cash or cheque at any Office of State Revenue counter in
  Brisbane, Cairns, Rockhampton and Townsville. In the case of a cheque (marked not negotiable) or a money order, this should be made payable to the Commissioner of Land Tax and can be posted to Commissioner of Land Tax, GPO Box 2476, Brisbane QLD 4001; or
• By BPAY.

BPAY payments must be made from a debit account. Credit card accounts are not accepted. Please allow an extra day for payment to be received by OSR, otherwise late interest may apply.

To automatically receive a receipt if paying in person or by post, simply attach the complete assessment notice with your payment. Your receipt will be issued once your payment has been processed.

Otherwise, an acknowledgement of a land tax payment can be obtained on request to OSR.

Yes. Interviews are conducted at any of our service centres in Brisbane, Rockhampton, Townsville or Cairns.

Please contact OSR regarding the discrepancy and we will check the land ownership records with the Department of Natural Resources and Water (NRW). If the land is in the purchaser's name, the land will be transferred to the purchaser. Amended assessments will issue. If it is found that the land has not been transferred in NRW, you will be required to provide a copy of the signed Transfer and Form 24, and a copy of the settlement confirmation statement. These two documents are usually sufficient to transfer the land to the purchaser for land tax purposes.

Land tax was introduced in Queensland in 1915. You pay land tax when the total relevant unimproved value of land owned by you exceeds the taxable threshold. See the relevant financial year's information sheet for more details.

The unimproved value is available from the Department of Natural Resources and Water. Alternatively, the vendor may disclose it to you.

Objections against the unimproved value can only be lodged with the Department of Natural Resources and Water. An objection against a land tax assessment cannot be made on the basis of an excessive valuation.

Payment by instalments or an extension of time to pay is an option available solely for cases where the Commissioner is satisfied there is a genuine financial hardship or other exceptional circumstances.

Substantial financial details must be provided with the requisite application form before the matter can be considered. If approved, a payment plan structure is put into place with the unpaid tax continuing to accrue interest daily at the rate of 12% per annum.

Our Debt Management Branch can assist you with this process.

The revenue is paid into Queensland Consolidated Revenue and is used to fund roads, police, hospitals, nurses, schools, teachers etc.

No, if you have not previously been liable for land tax and do become liable, OSR will contact you to explain your obligations and entitlements for the applicable period.

If you are liable to pay land tax after a determination has been made on any claims lodged for a deduction/exemption, OSR will mail you a notice of assessment of land tax for land owned at the relevant 30 June.