Overview
General information
The Office of State Revenue (OSR) collects land tax in Queensland and administers the Land Tax Act 1915.
Land tax is levied by the Queensland Government on freehold land owned in Queensland as at midnight on 30 June each year.
For land tax purposes "land" includes vacant land, land that is built upon, building unit plans, group title plans, time shares and home unit companies.
Who is liable to pay?
Land tax is payable by the owner of any interest in freehold land in Queensland if the aggregate relevant unimproved value of all land interests at midnight 30 June exceeds the threshold.
Ownership of the land is generally determined at possession date.
There are various classes of taxpayers including residents (natural persons who ordinarily reside in Australia), absentees (natural persons who do not ordinarily reside in Australia), companies (includes clubs, associations etc.) and trustees (includes trustees of deceased persons' estates).
What is the relevant unimproved value for 2008-09
During 2007-08, 2008-09 and 2009-10 financial years if capping applies, the capped value will be used. If capping does not apply the lesser of the unimproved value or the averaged unimproved value will apply.
The capped value is 150% of the relevant unimproved value of the land for the previous finanacial year. For example:
For the 2007-08 financial year, an averaged unimproved value of $1 million applied for assessing land tax on a parcel of land, rather than the higher unimproved value of $1.2 million. For the 2008-09 financial year, the unimproved value is $3 million and the averaged unimproved value is $1.8 million. Because the averaged unimproved value is more than 150% of the value that applied for assessing land tax for the previous year, (i.e. the averaged unimproved value of $1 million) a capped value of $1.5 million applies for assessing land tax for 2008-09, (i.e. 150% of the 2007-08 averaged unimproved value).
Illustration Table:
| 2007-08 relevant unimproved value | 2008-09 relevant unimproved value | ||
|---|---|---|---|
| 2005 NRW value | 600,000 | 2006 NRW value | 1,200,000 |
| 2006 NRW value | 1,200,000 | 2007 NRW value | 1,200,000 |
| 2007 NRW value | 1,200,000 | 2008 NRW value | 3,000,000 |
| Averaged land tax value for 2008-09 assessing purposes | 1,800,000 | ||
| Capped land tax value for 2008-09 assessing purposes (150% of previous year value) | 1,500,000 | ||
| Relevant unimproved value used to assess land tax for 2007-08 (averaged over 3 years) | 1,000,000 | Relevant unimproved value used to assess land tax for 2008-09 (lesser of capped or averaged value) | 1,500,000 |
When is the capped value applied?
Capped value is applied if:
- the land is not subdivided land that qualifies for the 40% discount on unimproved value, and
- the land is a freehold parcel of land that had a relevant unimproved value as at the previous 30 June, and
- the uncapped value of the land is more than 150% of the relevant unimproved value as at the previous 30 June.
What are land tax thresholds for 2008-09?
Land owned by an individual
An individual may 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.
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 owned as at 30 June 2008 is equal to or greater than $350,000.
("Company" includes club, association, society etc. An "absentee" is an owner who does not ordinarily live in Australia or an external territory).
Select information sheets from the options on the right to view the tax rates.
Depending on the use of the land, certain exemptions/deductions may be available to reduce the total taxable value for assessing land tax.
See exemptions/deductions for more information.
