What is land tax
Land tax is like a membership fee you pay to the government each year for owning land in Queensland. The amount depends on how much land you own, how valuable it is, and who owns it.
What land is taxed
Land tax applies only to freehold land, which means land you fully own and is not leased from the government. It includes
- vacant land
- land with houses, apartments, or investment properties
- land in unit complexes or timeshare schemes
What if I share ownership
If you own land with others, you only pay tax on your share of the property. But the tax office will add up all the land you own in Queensland to calculate your total tax bill.
What if I own an apartment or unit
Owning an apartment is like owning a slice of a pie. You own part of the land where the building sits. Your share is listed on your council rates notice, or you can check with your body corporate or sale contract.
When do I have to pay land tax
Think of land tax like an entry ticket. You only pay if the value of all the land you own reaches a certain limit.
- If you are an individual and your land is worth 600,000 dollars or more, you must pay land tax
- If you are a company, trust, or absentee owner, the limit is 350,000 dollars
If your land is below these limits, you do not have to pay land tax.
How much land tax will I pay
The more land you own, the higher the tax. Land tax works like income tax. Higher value landowners pay more, while smaller landowners may pay little or nothing. The exact rates depend on your ownership type and total land value.
What happens when I buy or sell land
If you are selling
You are responsible for paying land tax if you own the land on 30 June, even if you sell it the next day.
If you are buying
Land tax usually does not transfer to the buyer. But be careful. If the contract says you must take over the tax, or if you move in before settlement, you might have to pay it.
To avoid surprises, buyers should apply for a land tax clearance certificate before finalising the purchase.
Can I get an exemption
Some landowners do not have to pay land tax. This could apply if
- you live in the property as your main home
- the land is used for charity, farming, or special cases
If your situation changes, like renting out your home, you might lose an exemption and start paying land tax.
When does land tax change
Land tax is not set in stone. Your bill can go up or down if
- you buy more land
- you sell land
- your land increases in value
- you get or lose an exemption
If these things happen, your land tax may be reassessed, meaning you could owe more or less than before.
Paying land tax
The tax office will send you a bill each year. You can
- pay the full amount at once
- set up an instalment plan if you prefer smaller payments
If you pay late, you may face extra fees and interest.
What to remember
- if your land is worth less than the limit, you do not pay land tax
- if you sell land after 30 June, you still pay the tax for that year
- buyers should check for any hidden land tax before purchasing
- land tax can change if you buy, sell, or change how you use your land
Land tax can be tricky, but understanding the basics will help you avoid unexpected costs and plan ahead.
