Following previous requests during the 2022 land revaluations and given the revaluations in 2023, we continued to advocate to the QLD Treasurer to commit to land tax valuation threshold and freeze the tax increase to the 2021 valuations for residential and commercial properties that are being rented out in efforts to reduce possible flow on burdens to tenants. We also requested the Minister for Resources to reform the system by providing Queenslanders the details of how each individual property valuation was arrived at, as well establishing an independent body to assess objections.
In response to our recent letter to the QLD Treasurer regarding, they have provided the following (in italics):
Despite the recent nation-wide increase in land values, the current land tax threshold and exemption in Queensland ensure that most landowners won’t have a land tax liability, and those with small investment property holdings will generally have a minimal land tax liability. In particular, the key exemption for principal places of residence means most Queensland homeowners have no liability for land tax.
The thresholds at which land tax becomes payable in Queensland are among the most generous in Australia. For individuals, the land tax-free threshold of $600,000 is one of the highest in the country.
In its recent Budget, Victoria announced it will reduce the land tax threshold to just $50,000 from 1 January 2024 — meaning Queensland’s individual threshold will be 12 times higher than Victoria’s, despite Queensland also generally having lower average land values.
The generosity of Queensland’s land tax threshold is even more apparent when the threshold is put in the context of other major states having higher comparative average house and associated land values.
In addition, land tax in Queensland is subject to a system of three-year averaging of the land value, which helps further smooth the impacts of increasing land values on the tax payable by landowners.
To make it easier for landowners to apply for an exemption from land tax for the property they live in, the government is also putting in place an automatic exemption process for the principal place of residence for eligible owners, based on appropriate verifying data.
Further information
Until the automatic exemption process is in place, our office has posted the Land Tax Exemption Process at www.sandybolton.com/land-tax-exemptions-march-2023. A common exemption is if a property is your ‘Home’ rather than an investment property.
For queries regarding land valuations and also how these relate to Council rate calculations please read our update at www.sandybolton.com/land-valuations-local-government-rate-calculations-march-2023.
Further direct advocacy regarding land tax can be directed to the QLD Treasurer via treasurer@ministerial.qld.gov.au and please cc’ our office in via noosa@parliament.qld.gov.au and forward any response you receive to us.
For further direct advocacy regarding how land valuations are completed, can be directed to the Minister for Resources via resources@ministerial.qld.gov.au and please cc’ our office in via noosa@parliament.qld.gov.au and forward any response you receive to us.