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Land Tax

Land Tax

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Queensland Land Tax Lawyers

In Queensland, there are a number of exemptions to land tax obligations which a company or person may apply for. Exemptions from land tax are available in a number of different scenarios described below, and are crucial for a number of different types of businesses.

Primary Production Land

In Queensland, land used solely for the business of primary production may be eligible for a land tax exemption. While a land tax exemption can represent a significant saving, it is important to ensure a property qualifies for the exemption.

The relevant land must be used solely for primary production activities, where activities related to agriculture, dairy farming or pasturage. Specific activities which may qualify property as primary production land include:

  • Maintaining animals for sale or for produce (e.g cattle);
  • Cultivating land to sell produce (e.g. crops);
  • Propagating or cultivating plants or mushrooms (e.g. nurseries and greenhouses); or
  • Planting or tending trees.

Consult with our lawyers to determine whether you are eligible for a land tax exemption for primary production land.

Charitable Institutions

Charitable institutions which are registered under the Taxation Administration Act 2001 have access to a number of tax concessions including potential land tax exemptions.

Registered charitable institutions may be exempt from land tax where the land is used solely for exempt purposes, which includes:

  • Land used to provide charitable services such as healthcare or education;
  • Land used to carry out fundraising activities; or
  • Land used to administer the institution’s operations, such as an office.

The exemption will apply to the whole of the land if the relevant activity requires all of the land, otherwise a partial example may apply if only part of the land is used for the exempt purpose.

In order to be eligible for an exemption, the land must be used for the charitable purpose of the institution, the land must be solely owned by the institution and there cannot be any private benefit received from the activity. Time limits apply and must be followed.

Consult with our lawyers to determine whether your charitable institution is entitled to a land tax exemption, when and how it should apply

Society, club or associations

A club, society or association which is registered with the Queensland Revenue Office may be liable for a land tax exemption or concession for land it owns (or holds in trust ) which is used for charitable activities, sporting activities or educational activities.

Conditions and limits apply, and our lawyers can assist you to determine whether your society, club or association is eligible for any exemption or concession.

Foreign Surcharge

Foreign entities owning land, or holding land in trust, in Queensland, may be charged a 2% additional tax on land exceeding $350,000 in value, making a significant increase in tax payable.

However, ex-gratia relief may be available for the reduction or removal of the foreign surcharge for foreign companies which make significant contributions to the Queensland economy and community, and whose business create jobs, encourage investment and align with government priorities.

The law surrounding foreign surcharge and whether it applies, how it should be calculated and any potential relief is available can be complex and should be navigated with the assistance of professional legal and financial advisors.

Vacant Residential Land Tax

Vacant residential land which is owned by companies, trusts and some individuals may be subject to additional tax. The tax applies to land valued at $75,000 or more and is vacant for more than 1 year and is assessed at 2% of the land’s taxable value.

Exemptions to the tax apply where the land is being developed, is used for primary production, is a principal place of residence or is located in certain regional areas. Land owners are required to report vacant residential land to the Queensland Revenue Office and penalties for failure to report can result in penalties.

Principal Place of Residence

In Queensland, your principal place of residence (which you own and occupy as your main residence) is generally exempt from land tax.

In order to be eligible for a principal place of residence exemption, you must have lived at the property for at least six months prior to the end of the financial year, and not have occupied another property as your main residence during that time.

Partial exemptions may apply if only part of the land is used as your principal residence, the property is undergoing construction or renovation or if there are multiple owners of the property.

Penalties and tax may apply if you do not meet the criteria for eligibility.

Valuations

In Queensland, land tax applies to the taxable value of land owned by individuals, companies, and trusts. This value is determined through annual valuations conducted by the Valuer-General.

Land is typically valued as of October 1st of each year, with notices issued by March 31st of the following year. The Valuer-General uses various methods to estimate land value, considering factors like recent sale of similar properties, location, zoning and market trends. Land tax is then generally calculated based on the current year’s value and the previous last two years’ values.

If you believe your land valuation is inaccurate, you can lodge an objection with the Valuer-General.

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