Land Tax Generally
Land tax is calculated on the value of land owned by a landowner as at midnight on 30 June each year.
The value of the land held must pass statutory thresholds before a land tax liability will arise. The thresholds for the period including 30 June 2011 are:
- $600,000 for individuals; and
- $350,000 for companies, trusts and absentees.
Prior to 30 June 2010, the Land Tax Act 1915 (Qld) was repealed and replaced with the Land Tax Act 2010 (Qld).
The new act introduced a new methodology for valuing land in Queensland. The anticipation has been that the new methodology would give rise to higher valuations and this has raised concerns for landowners.
On 3 May 2011, the Valuer-General issued annual valuation notices to landowners in Queensland.
These valuations are available online for landowners until 1 August 2011 at http://www.derm.qld.gov.au/property/valuations/online -listing.html.
The valuations are effective from 1 October 2010 and use the “site value methodology” for non-rural land and the unimproved value methodology to value rural land.
In addition to assessing liability for land tax, the statutory land valuations are used by:
- local governments as a basis for levying rates; and
- DERM for calculating State land lease rent.
Land Tax Planning
With land valuations now available, landowners can easily assess whether or not they will have a land tax liability for the land that they own at midnight on 30 June 2011.
If a landowner breaches the applicable threshold, that land tax will be imposed.
If landowners are concerned about their landholdings then steps might be taken to mitigate the land tax liability, however, these steps must be taken urgently so that they are completed by 30 June 2011.