Land tax can be a tricky road to navigate at the best of times. With exemptions, thresholds and valuations to consider, it can be a daunting task in, at times, uncharted waters for many.
So, with the 2022-23 federal budget recently being released, we explore what the latest on QLD land tax means for Queenslanders.
Calculated after every financial year, most Queensland landowners are not actually viable for land tax due to the value of their land simply not being high enough.
In truth, the local government assesses QLD land tax, and if identified at a high value, you may be liable to pay land tax.
A letter will be sent out to you with a summary of your land holdings and information regarding available exemptions.
The Valuer-General in QLD generally provides land evaluations in March each year. The QLD Revenue Office must then use the Valuer-General’s land valuations to assess and calculate the taxable value of the land you own.
So, QLD land tax applies to the total taxable value of your land, assessed and evaluated by the average of your land valuation for the current tax year, accompanied by the previous two years.
H3: Objections to the Tax
If you feel as though the estimation of your land’s value is not quite in line with your belief, you have 60 days – from the date the valuation notice was issued – to lodge an objection.
Tax exemptions are a welcomed aspect of land ownership with many variables and logistics to consider.
You may be eligible for the QLD land tax exemption depending on the land’s ownership and use. There are several ways to gain exemptions on QLD land tax which can be found here.
Furthermore, suppose eligible and an exemption are granted to a parcel of land. In that case, the taxable value of that particular parcel is excluded from the total taxable value of the land’s entirety.
An exemption will reduce how much the state’s tax landowners must pay and offer some much-needed QLD tax relief.
Generally speaking, the land’s owner is the person or corporation registered as the owner with the Department of Resources, but there are many other variables to consider.
A complete rundown and criteria can be found on the QLD government’s site, plus a brief rundown of QLD’s land tax thresholds and types of owners for QLD land tax.
If you are an Australian citizen or a permanent visa holder that usually resides in the country, then QLD land tax rates for individuals will apply to the land you own.
As an individual, keep in mind that you are liable for land tax if the entire taxable value of your land – as of June 30 – is $600,000 or higher.
The land tax rates for companies and trustees will apply for both in this situation. If the total taxable value of the land owned by a company is $350,000 or more, you will be liable to pay tax on the land you own.
Trustees (of a trust or superannuation fund) are liable to pay land tax under the same criteria as companies, with the threshold mimicking the $350,000 limit.
Another aspect to consider is how ownership changes may affect your land tax and, more precisely, which may be liable to pay QLD land tax between seller and buyer.
Long answer short, it’s complex as many variables must be considered, but they can be found on the QLD government’s website.
With the 2022-23 federal budget recently being released, one must be careful traversing the complexities of it all. But there is light at the end of the tunnel for individuals and small businesses alike.
After assessing the federal budget, it’s easy to wonder where you sit regarding Josh Frydenberg’s 2022 announcement.
Whether you’re a business or landowner, there are a few tribulations to get familiar with as you navigate your way through a dense set of budget allocations.
For an easy read on where you stand regarding the 2022 Federal budget, this blog will answer most of your questions.
There are a couple of ways to find out information regarding land tax. Firstly, you can access information such as your land portfolio, assessment notices and land tax estimations via QRO online.
Alternatively, an online enquiry form can be filled out or call 1300 300 734 for assistance.
Better yet, contacting us will save you time and money so you can focus on your land and/or business.
Generally, assessment tax notices are sent out at the beginning of August each year and continue for several months after the fact.
If you own multiple properties within QLD, the total taxable value is calculated by combining the taxable value of each property.
Now that you have become familiar with federal budget details, the hardest part is yet to come, but don’t fret; it doesn’t have to be.
Acquiring a helping hand with your taxes may add to your expenses, but it is an expense that pays off in the long run.
Tax accountants are the safest and easiest way to navigate QLD land taxes, offering simple ways to get QLD tax relief through exemptions and meet specific criteria and thresholds.
At Valles Accountants, we are not only #1 for tax in Brisbane, but we also specialise in small businesses and personal tax.
We are the premium accountants to assist you with any enquiries you may have regarding land tax.
For peace of mind, working with us at Valles Accountants will not only free up valuable time, but you will be placing your past, present and future in safe hands.