Queensland Revenue Office (QRO) has advised that the Interstate Model will be introduced effective 1 July 2023.
This new method of land tax calculation will be used to determine the rate of land tax that will be applied to the Queensland proportion of the value of a landowner’s holdings. The previous land tax thresholds remain unchanged.
Landowners will be required to provide a declaration to QRO that will include information such as land description, value, and percentage of ownership. This declaration will be required to be completed within 30 days of receiving a land tax assessment notice, or on or before 31 October, whichever occurs first.
The Property Council is concerned that the interstate model will create difficulties for landholders as it will require them to assess their holdings in other jurisdictions against the exemption criteria in both Queensland and the jurisdiction in which their additional land is held.
Exemptions
Owners of Queensland land will continue to be eligible for a land tax exemption if they meet the eligibility requirements.
QRO have advised that eligibility requirements for Queensland will apply to interstate land. However, some exemptions will remain limited to Queensland land only.
The Property Council has also raised concerns that averaging and the subdivider discount will not apply to interstate land.
The Property Council has raised concerns relating to the practical application of the reform due to the complexity of the various exemptions in place in different jurisdictions.
For further detail on exemptions please visit the QRO website.
As the Property Council has significant unresolved concerns around the practical application of this major reform, we are seeking further engagement with QRO to ensure there is appropriate public awareness around implementing the single largest reform to the method of collecting land tax the state has seen.
If you have any queries, please contact Property Council Deputy Executive Director Jess Caire at [email protected].