Tens of thousands of additional properties in Queensland have come under the realm of land tax in the past year, as the state sees ongoing escalations in land valuations. Property owners in Queensland who possess investment properties are obligated to pay land tax if the combined value of their land exceeds the threshold of $600,000, a benchmark established nearly two decades ago in 2007. The latest figures from Queensland Treasury reveal that the number of properties subject to land tax has surged to 194,579 in the 2023-24 fiscal year, marking a notable 14 per cent increase from the prior year when around 170,660 properties were liable for the tax.
Meanwhile, the number of individuals falling under Queensland's land tax regime has also soared by 30 per cent, rising from approximately 41,200 in 2022-23 to about 53,400 in 2023-24. The Queensland Revenue Office relies on valuations provided by the state’s valuer-general to ascertain whether an individual's total land value surpasses the $600,000 land tax threshold, which has remained unchanged despite the fervent surge in land values across the state. Brisbane witnessed a 17.5 per cent escalation in land values in 2022, followed by an 11.9 per cent increase in 2023, while the Gold Coast observed a significant surge of 36.8 per cent in 2022 and an additional 25 per cent climb in 2024.
The Real Estate Institute of Queensland's chief executive, Antonia Mercorella, highlighted the substantial increase in the number of properties subject to land tax and recommended that the land tax threshold should be adjusted in line with the Consumer Price Index (CPI) to reflect the current property market scenario in Queensland. With concerns that elevated land tax costs could prompt investors to divest their properties, Ms. Mercorella emphasized the need for a reassessment of the threshold value at which land tax is applicable. Treasurer David Janetzki affirmed that the new LNP government does not intend to modify the state's land tax settings, emphasizing that the primary focus remains on stamp duty relief, particularly for first home buyers acquiring new homes.
Acknowledging that as land values rise, more landowners may breach the land tax threshold, a spokesperson for Queensland Treasury mentioned that the system incorporates a three-year averaging of land value to mitigate the impact of increasing land values on the tax payable by landholders. The Treasury confirmed that in 2023-24, 26,515 land tax exemptions were granted to first-time taxpayers, along with 21,391 exemptions in the previous year, thereby shedding light on the nuanced landscape of land tax obligations in Queensland. Additionally, the land tax threshold for companies and trusts has been set at $350,000, delineating the varying thresholds applicable to different ownership structures in the state.