Update on Queensland interstate land tax

In response to growing pressure from other state and territory leaders, reports have emerged that the Queensland government intends to scrap new land tax calculations for some landholders.

The newly legislated measure, due to begin on 30 June 2023, would see interstate landholdings being included in land tax assessments. Queensland was the first state to introduce this new calculation.

Under the measure, a landholder would have their land tax calculated based on their total Australian landholdings. The calculation would then be pro-rated to reflect the landholder’s Queensland-only landholdings.

For landholders only holding land in Queensland, there was no change to the calculation at all.

The change in land tax calculations was originally announced in the December 2021 Mid-Year Fiscal and Economic Review. Subsequently, the amending legislation went through the parliamentary process and received Royal Assent in June 2022.

We expect that in due course the Queensland government will officially announce a change in land tax law. As noted, the newly legislated change will need to be repealed in order for the announcement to be effective.

We will keep you informed of any developments as they become available to us. If you would like to reach out to understand how this affects your future land tax obligations, please contact our office.


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