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End of Financial Year Time – Land Tax Budget 2019-2020

With the End of Financial Year ('EOFY') soon approaching the Queensland Government have released a new Land Tax Budget for...
End of Financial Year Time – Land Tax Budget 2019-2020

With the End of Financial Year (‘EOFY’) soon approaching the Queensland Government have released a new Land Tax Budget for 2019-2020.

Below is a copy of the Queensland Government Budget Statement:

Queenslanders are not liable to pay land tax on land or part of the land, that they use as their home. Land tax is only payable when the total taxable value of an owner’s investment or commercial property landholdings exceeds the relevant tax-free threshold. The current land tax arrangements that are in place for many Queenslanders with investment or commercial properties remain unchanged following the 2019-20 State Budget.

Changes To Apply From 30 June 2019

  • Companies and trustees with landholdings of more than $5,000,000 but $10,000,000 or less
  • The land tax rates will increase from 2% to 2.25% from 30 June 2019.
    Companies and trustees with landholdings of more than $10,000,000
  • The land tax rates will increase from 2.5% to 2.75% from 30 June 2019.

The table below sets out the new land tax rates for companies and trustees:

Image sourced from Queensland Government Land Tax Budget 2019-2020 Statement.
  • Changes for Australian citizens and Australian permanent residents living overseas, absentees, foreign companies and trustees of foreign trusts.

Australian citizens and Australian permanent residents living overseas to be assessed as resident individuals

From 30 June 2019, Australian citizens and Australian permanent residents holding permanent visas living, working or travelling overseas for an extended period will no longer be assessed as absentees. This means for land tax assessed from the 2019-20 financial year onwards, they will benefit from the higher tax-free threshold and lower rates of tax that currently only apply to resident individuals. They will also not have to pay the absentee surcharge. This change brings Queensland into line with other major Australian States.


Increase in absentee surcharge

From 30 June 2019, the absentee surcharge will increase from 1.5% to 2%.

The increased surcharge will apply to foreign individuals who own land and do not ordinarily reside in Australia. As mentioned above, Australian
citizens and Australian permanent residents holding permanent visas living overseas will not have to pay the absentee surcharge from the 2019-20 financial year onwards. Foreign individuals who own land and live in Australia will continue to be assessed as resident individuals, according to the tax-free threshold and land tax rates above (see ‘Resident individuals’).

Introduction of foreign surcharge for foreign corporations and trustees of foreign trusts

From 30 June 2019, a new land tax foreign surcharge of 2% will apply to foreign companies and trustees of foreign trusts that own land.

The surcharge will apply to the portion of the taxable value of the taxable land that is equal to or greater than $350,000. For foreign companies and trustees of foreign trusts that have landholdings with a taxable value of more than $5,000,000, the surcharge will apply in addition to the land tax rate increases applying to companies and trustees generally.

Article written by Queensland Government.

📲 Feel free to contact Hatzis Lawyers for further information on End of Financial Year time and what conveyancing areas need to be assessed.

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