Land tax assessment on hold

Over recent weeks the Property Council has been engaged with the State Government on the development of an ex gratia relief guideline for Queensland’s new foreign land tax surcharge.

The Property Council has argued that, as currently drafted, the surcharge would make Queensland the most hostile Australian jurisdiction to foreign investment. Last week the Property Council led a delegation of industry leaders to meet with the Treasurer to outline the sector’s concerns.

It was anticipated that the ex gratia relief guideline, which will outline exemptions from the surcharge, would be finalised before land tax assessment notices were issued at the end of July.

The Office of State Revenue has advised that, in light of the concerns raised by the Property Council, land tax assessments for parties that OSR believes may be affected by the new surcharge will be placed on hold.

Landowners identified by OSR as likely to be captured by the definition of a ‘foreign company or trustee of foreign trusts’ will be postposed until the Government has the opportunity to refine and finalise the ex gratia relief guideline.

Affected landowners will be advised by OSR. Other landowners will be issued with their land tax assessment notice over coming weeks as per usual practise.

The Property Council will continue engagement with the Government to ensure that the final guideline produces a better outcome for the industry.