In June 2022, the Queensland Government passed legislation to introduce the Interstate Land Tax Model, which will take effect from 30 June 2023.
Queensland Revenue Office (QRO) has recently updated details of this new tax methodology on its website and has started directly communicating with members as to the implementation of this reform. This has led to increased media interest and member enquiry over the past week.
This unorthodox new method of land tax calculation will see a landholder’s entire nationally held property portfolio used to determine the rate of land tax that will be applied to the Queensland proportion of the value of a landholder’s property. The previous land tax thresholds remain unchanged.
The Property Council has raised concerns since the announcement of this nation first reform in December last year and has sought legal advice regarding its constitutionality. Previous communication can be found here:
- Media Release: 16 December, 2021
- Queensland Advocacy Alert: 10th tax on Queensland property since 2016: 16 December, 2021
- Queensland Advocacy Alert: Land tax adjustment: 24 June, 2022
- Queensland Advocacy Alert: Land tax adjustment 12 July, 2022
- Correspondence:
Aside from the financial impact and blow to investor sentiment, of great concern is the difficulty this new tax methodology will create for landholders across Australia. Many landholders- some of whom have never been liable for land tax previously- will be required to assess their holdings in other jurisdictions against the land tax exemption criteria in both Queensland and the jurisdiction in which their additional land is held.
Given there is no centrally held register of landholders, the onus will be on the landholder to provide accurate reports to QRO.
The Property Council will continue to voice its opposition to this new methodology directly with both QRO and Treasury, along with continuing to detail concerns around the practical application and unintended consequences of this major reform.
A working group of members keen to support our advocacy on this tax will meet in the coming weeks. If you wish to be involved in this working group, please email Property Council Qld Deputy Executive Director, Jess Caire, at [email protected].