As expected, the Queensland budget introduced an increase in the rate of additional foreign acquirer duty from 3% to 7% on transactions involving certain residential land. The new rate applies where the liability for transfer duty, landholder duty or corporate trustee duty arises on or after 1 July 2018 (e.g. where the contract is dated 1 July 2018 or later). Exemptions can be applied for in certain circumstances (e.g. for the acquisition of land for a significant development which will benefit the State).
Land tax rates have also increased by 0.5% in respect of land owned at midnight on 30 June 2018, where aggregated landholdings are above $10 million. The increase applies to individuals, companies, trustees and absentees. The additional 1.5% absentee surcharge remains unchanged.
For a comparison of foreign buyer duty and land tax surcharges, see: