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Foreign companies and trusts for land tax

As a foreign company or trustee of a foreign trust, you are liable for land tax if the total taxable value of your freehold land at 30 June is $350,000 or more.

Foreign company

Your company is foreign if:

  • it is incorporated outside Australia
  • foreign persons or related persons of foreign persons have at least 50% controlling interest.

Trustee of a foreign trust

You are a trustee of a foreign trust if at least 50% of the trust interests are held by:

  • an individual who is not an Australian citizen or permanent resident
  • a foreign company
  • a trustee of a foreign trust
  • a related person of any of the above.

Your interest in a trust as a beneficiary is the percentage of the value of your entitlement under the trust. There are special rules for discretionary trusts where only ‘takers in default’ (i.e. people whose entitlements as beneficiaries result from the trustee not exercising their discretion) of an appointment by the trustee have a trust interest.

Read the public ruling on foreign corporations and trusts (LTA000.3) for more information.

Surcharge

A surcharge of 2% applies in addition to the land tax rates for companies and trustees. The surcharge will appear on the land tax summary section of your assessment notice.

As part of the coronavirus relief package, the surcharge was waived for the 2019–20 assessment year.

Example

Total taxable value of $400,000
Tax band is $350,000–$2,249,999
Tax calculation = $1,450 + (1.7 cents × $50,000 excess) = $2,300
Add surcharge (2% × $50,000) = $1,000
Tax payable = $3,300

Learn how land valuations affect land tax.

Ex gratia relief from the surcharge

From the 2020–21 assessment year, we may consider ex gratia relief from the surcharge for foreign entities that make a significant contribution to the Queensland economy and community.

Read the public ruling on ex gratia relief from the land tax foreign surcharge (LTA000.4) for more information.