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Interstate properties and land tax

From 30 June 2023, when we calculate land tax, we will use the total value of your Australian land. This includes your taxable land in Queensland and your relevant interstate land. ‘Relevant interstate land’ includes land located in another state or territory that is valued under interstate valuation legislation and is not excluded interstate land.

The total value of your Australian land will be used to determine:

  • whether the tax-free threshold has been exceeded
  • the rate of land tax that will be applied to the Queensland proportion of the value of your landholdings.

The current tax-free thresholds are $600,000 for individuals (other than absentees) and $350,000 for companies, trustees and absentees.

You’ll only pay tax on the land you own in Queensland (i.e. we are not taxing your land outside Queensland).

Queensland land only

If you only own land in Queensland, you will not be affected by this change.

You will continue to be able to access all available exemptions, such as the home (principal place of residence)and primary production exemptions.

Queensland and interstate land

If you own land in Queensland and in another state or territory, you will need to declare your interstate landholdings. You’ll need to set up a QRO Online account and complete the declaration, including land description, value and percentage of ownership.

From 30 June 2023, you will need to complete this declaration by the earlier of the following:

  • within 30 days of receiving a land tax assessment notice
  • on or before 31 October.

Interstate land value

If you own land in Queensland and interstate, we will calculate land tax based on:

  • the total of your taxable land located in Queensland
    and
  • the statutory value of your interstate land.

The ‘statutory value’ of interstate land is determined by valuation legislation in that state or territory. It does not include excluded land.

When you complete an interstate land declaration online, you’ll enter the value of each parcel of interstate land. For an interstate property you owned on 30 June 2023, you would enter the statutory value for that parcel of land as at 30 June 2023. If you don’t know the value of a parcel at the relevant 30 June, use the most recent value you can ascertain. If you get an updated value for your interstate land, you can notify us to have your land tax liability reassessed.

Averaging and the subdivider discount will not apply to interstate land.

Surcharge

If you are an absentee or a foreign company or trust, a surcharge of 2% is added when calculating land tax. This applies to the total value of your Australian land.

Calculating land tax with interstate land

The land tax rate that applies depends on what type of owner you are and the value of your land. This rate (and surcharge, if applicable) is applied to the total value of your Australian land. Then this figure is applied to the Queensland portion to get the annual land tax liability.

Example

On 30 June 2022, Lena owns land in Queensland with a taxable value of $745,000. Her land tax is calculated using the rates for individuals.

Taxable value of land: $745,000

Calculation
= $500 + (1 cent × $145,000)
= $500 + $1,450
= $1,950

We will issue an assessment notice for $1,950 for the 2022–23 financial year.

On 30 June 2023, the value of Lena’s land in Queensland has not changed. But Lena now also owns land in Victoria valued at $1,565,000. The total value of Australian land owned by Lena is $2,310,000, which means the land tax is calculated using a higher rate for individuals.

This is how Lena’s land tax will be calculated:

Taxable value of Australian land: $2,310,000

Calculation
= $4,500 + (1.65 cents × $1,310,000)
= $4,500 + $21,615
= $26,115

This amount is applied to the Queensland portion of Lena’s land (i.e. ($745,000 ÷ $2,310,000) × $26,115)).

We will issue an assessment notice for $8,422.37.

Excluded land

For land in Queensland, you may be eligible for a land tax exemption depending on the ownership and use of the land.

If your interstate land meets certain eligibility requirements, you can apply to have its value excluded from the land tax calculation.

Mostly, the eligibility requirements for exemptions that are available in relation to land in Queensland will apply for the exclusions available in relation to interstate land with generally equivalent requirements applying in some circumstances. Some exemptions will remain limited to land in Queensland only.

Exclusions available for interstate land Exemptions available for Queensland land only
  • Home (principal place of residence)
  • Primary production
  • Supported accommodation
  • Moveable dwelling (caravan) park
  • Retirement village
  • Transitional home
  • Charitable institutions
  • Aged care
  • Government land
  • Port authority land
  • Societies, clubs and associations

More information on exclusions and how to apply will be available after 30 June 2023.

Example

DBA Company owns the following landholdings:

  • land in Queensland with a taxable value of $1,345,000
  • interstate land (including a farm in Tasmania) with taxable value of $775,000.

DBA Company applies for the farm in Tasmania to be excluded because it is being used for a primary production business. The exclusion is approved, reducing DBA’s interstate land value to $150,000.

This is how DBA’s land tax will be calculated using the rates for companies:

Taxable value of Australian land: $1,495,000

Calculation
= $1,450 + (1.7 cents × $1,145,000)
= $1,450 + $19,465
= $20,915

This amount is applied to the Queensland portion of DBA’s land (i.e. ($1,345,000 ÷ $1,495,000) × $20,915)). We will issue an assessment notice for $18,816.51.

If DBA did not apply for the exclusion, their land tax liability would be $20,010.05, based on its total Australian land value of $2,120,000.

Objections

If you are dissatisfied with your land tax assessment that includes interstate land, you can lodge an objection.

However, if you wish to challenge the value of your interstate land that we have used in our calculations, you need to follow the processes under the relevant state or territory’s land valuation framework.