As of 1 August 2025, Queensland’s new Property Law Act 2023 and the updated seller disclosure regime have officially taken effect. Alongside these legislative changes, the latest property contracts now include terms that buyers must treat with caution — especially the clauses dealing with land tax apportionment.
We are already seeing a clear trend: many contracts prepared by agents now include conditions requiring the buyer to contribute to the seller’s land tax. This can leave buyers paying hundreds or even thousands of dollars extra at settlement. In almost nine out of ten contracts we review, unless a lawyer has been consulted beforehand, the default position is that the buyer is asked to share the seller’s land tax liability.
Why Buyers Should Care
The principle is simple: Don’t share the seller’s land tax liability without reason.
- Land tax is the seller’s responsibility as the property owner.
- There is no automatic obligation on the buyer to cover the seller’s tax.
- This term is negotiable — you do not have to accept it as written.
- Previous standard residential contracts were different and did not require buyers to contribute to the seller’s land tax.
The Risk Hidden in the Contract
If left unchecked, the land tax clause may:
- Adjust land tax on a single holding basis, or
- Adjust land tax based on the seller’s actual liability, which can be much higher if the seller owns multiple properties.
Both situations unfairly shift costs that rightly belong to the seller onto the buyer.
How to Protect Yourself
With the new law in place, buyers should:
- Carefully review the land tax clause before signing any contract.
- Seek legal advice early — lawyers can negotiate or amend the contract to ensure you are not sharing the seller’s liability.
- Stay informed — remember, land tax apportionment is a matter of contract negotiation, not a fixed legal requirement.
Conclusion
The new disclosure regime is designed to provide more transparency in Queensland property transactions. But it does not prevent contracts from including unfair clauses. Buyers must stay vigilant:
Don’t share the seller’s land tax liability without reason.
At Ensure Legal, we review contracts every day to protect buyers from unnecessary costs. If you are considering purchasing property in Queensland, contact Stephen Kwok, Principal Lawyer, to ensure your interests are safeguarded and that you are not left paying for the seller’s tax obligations.
Our commercial property lawyers can review land tax adjustment clauses before a commercial property contract is signed.
