Tax rules and regulations are constantly evolving, and at Crest Accountants, we make it our priority to keep clients informed with the latest updates. In this article, we will discuss the Queensland land tax changes that property owners should be aware of.
Land Tax in Queensland: What’s Changing and What Remains As Is
Australian property owners should breathe a sigh of relief as the once-controversial “interstate aggregation” land tax reforms were scrapped entirely. The proposed changes, announced in the 2022-23 Queensland Budget, were to take effect from 30 June 2023.
For context, if the changes were implemented, it would have meant anyone who owns land in Queensland and another state or territory in Australia could face a larger land tax bill. As shared by Accountants Daily, this ‘aggregate’ method of calculating land tax means “an owner’s liability for land tax will be determined based on the total value of their Australia-wide landholdings that are not exempt, rather than solely on their non-exempt Queensland landholdings.”
The Backlash and Decision to Scrap the Proposed Tax Changes
Queensland Premier Annastacia Palaszczuk, at the time, announced the scrapping of these changes on 30 September 2022, following significant opposition. Other state and territory leaders criticised the plan, arguing that it unfairly taxed their residents for owning property in Queensland. Property investor groups also voiced concerns, warning that increased costs would be passed on to tenants amid rising rents. Advocacy from industry bodies and interstate pressure ultimately led to the indefinite deferral of the reforms, and later, their complete scrapping.
Current Queensland Land Tax Rules
Parliament confirmed that Queensland land tax will continue to be calculated solely on the taxable value of land holdings within Queensland, assessed at midnight on 30 June each year, preserving the status quo.
Land tax is a complex area of law that requires careful consideration. When weighing up the purchase of a new property, it’s essential to seek legal advice on land tax implications from a professional who understands the land tax regulations in the relevant state or territory.
Exemptions from land tax may be available for eligible properties, including primary residences, primary production land (such as farming or construction-related uses), and certain charitable or non-profit holdings. Land tax exemptions are not necessarily granted automatically; often, they must be formally applied for.
Thresholds and Rates for Individuals, Companies and Trusts
As of mid-2025, thresholds remain at $600,000 for individuals, and $350,000 for companies, trustees, and absentees.
Total Taxable Value Rate of Tax for Individuals
$0–$599,999 $0
$600,000–$999,999 $500 + 1 cent for each $1 over $600,000
$1,000,000–$2,999,999 $4,500 + 1.65 cents for each $1 over $1,000,000
$3,000,000–$4,999,999 $37,500 + 1.25 cents for each $1 over $3,000,000
$5,000,000–$9,999,999 $62,500 + 1.75 cents for each $1 over $5,000,000
$10,000,000 or more $150,000 + 2.25 cents for each $1 over $10,000,000
Companies, associations, and trustees (excluding special disability trusts) face a lower threshold of $350,000. The rates are:
Total Taxable Value Rate of Tax for Companies and Trustees:
$0–$349,999 $0
$350,000–$2,249,999 $1,450 + 1.7 cents for each $1 over $350,000
$2,250,000–$4,999,999 $33,750 + 1.5 cents for each $1 over $2,250,000
$5,000,000–$9,999,999 $75,000 + 2.25 cents for each $1 over $5,000,000
$10,000,000 or more $187,500 + 2.75 cents for each $1 over $10,000,000
Recent Updates to Queensland Land Tax
Land Tax Surcharge Increase
Effective from 1 July 2024 (for the 2024-25 financial year), the surcharge for foreign companies, trusts, and absentees rose from 2% to 3% on taxable land valued at $350,000 or more.
An “absentee” typically means an individual who does not ordinarily reside in Australia. This change was part of the 2024-25 Budget to boost revenue.
Increased Additional Foreign Acquirer Duty (AFAD)
The Additional Foreign Acquirer Duty (AFAD) is a duty charged on certain property transactions – such as transfer duty, landholder duty or corporate trustee duty – when the acquirer is classified as a foreign owner. The AFAD rate increased from 7% to 8% starting 1 July 2024, aligning with rates in NSW and Victoria.
Introduction of “Windfall Tax” Safeguards
The Revenue and Other Legislation Amendment Bill 2025 introduced a windfall tax.
This new mechanism ensures that if foreign surcharges (AFAD or land tax surcharge) are later deemed constitutionally invalid, refunds owed to taxpayers under such circumstances may be offset through the windfall tax, which will apply as an alternative.
What Queensland Land Tax Changes Mean for You
- Residential and commercial clients with properties across Australia can be reassured that only Queensland land values influence their Queensland land tax.
- Foreign individuals or entities owning property in Queensland should plan for higher surcharges.
- Developers and home buyers benefit from predictable land tax outcomes, even as protections like windfall tax are enacted to safeguard future tax revenue.
No Major Overhauls, But Stay Prepared
To ensure compliance and optimise your tax position, particularly when considering adding to your property portfolio, seek legal advice from a professional specialising in Queensland land tax. The team at Crest will work collaboratively with your lawyer to help you navigate these changes, explain exemptions, and explore strategies to ensure you stay compliant and well-prepared for the future. If you don’t already have a lawyer, we can point you in the right direction. Contact us today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.
