The Queensland Premier has scrapped the Sunshine State’s controversial land tax revisions after facing a barrage of criticism.
Annastacia Palaszczuk has moved to ditch the state’s controversial land tax after weeks of negative publicity and refusals by other premiers to co-operate.
The Queensland government has revised its land tax, which would see the taxable value of land owned in another Australian state or territory be included when determining the rate of land tax you pay in Queensland.
For example, if an investor had a $500,000 of land in Queensland, and a $600,000 of land in NSW they would have been valued in the proposed QLD land tax calculations at $1.1 million.
The policy, which was due to take effect from 30 June 2023 had been slammed by the NSW Premier Dominic Perrottet pledging against sharing the state’s landholder data.
It was expected to affect approximately 10,000 investors and generate the Queensland government almost $20 million a year in revenue from 2023–24.
The expected repercussions of the tax were that investors may sell up holdings, or deter investment opportunities, having further flown on effects to an already declining housing market and further driving up rents.
While this is good news for property investors, if you own investment properties you should regularly review your landholdings and determine whether they may be subject to state land taxes. If you are paying land tax, you may wish to consider your overall property strategy, and whether each property in your portfolio is still a viable investment, or whether there may be better performing investment options to help you achieve your financial goals.
For your information here are the current land tax rates, taxing dates and thresholds for NSW and QLD.
Please reach out to us if you would like us to review your situation, including your existing investment properties or any proposed property purchase and to ensure your property strategy is in line with your overall financial plan.
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Image – Land tax rates, taxing dates and thresholds – QLD and NSW
