Property prices,but median residential land values in the Brisbane council region,as set by the state’s Valuer-General,have soared 25 per cent to $580,000 since they were last issued in 2020.
People with total Queensland landholdings worth more than $600,000 are liable for land tax. Rising values have increased the number likely to pay this year,with government reforms to push the number higher again next year.iStock
Landowners across the state with portfolios worth more than $600,000 are liable for land tax,and are sent letters by the state revenue office from August outlining the amount owed.
A Queensland Treasury spokesperson toldBrisbane Times landowners started seeing the letters in the past two weeks,with about 23,000 expected to be sent. Last financial year,the figure was 10,291.
Exemptions exist,such as land on which a person’s usual residence sits,but are not automatic and require approval by the revenue office.
The Queensland state government is urging local councils to do more about the housing crisis,as industry leaders are calling for a housing summit.
“In line with previous years,approximately 60 per cent of individual landowners receiving a first-time-tax-payer letter this year are expected to be granted a principal place of residence exemption,” the spokesperson said.
“When we identify that land value has reached the $600,000 threshold for the first time,we send a letter that provides information on land tax,available exemptions and how to apply. We also send SMS and email reminders to help them understand what they need to do and the support available.”
The Valuer-General’s Brisbane region data shows the median land value in 34 more of the city’s 180 suburbs has equalled or surpassed the threshhold — with several jumping from below $500,000.
The overview document states that the “most significant movements” had occurred in areas where land was previously valued below $350,000,largely in outer-ring suburbs 10 to 20 kilometres from the CBD,with lesser rises the closer the property was to the city.
“The increases in the residential market have had the effect of blurring the line of what has been traditionally classed as inner and middle ring suburbs,particularly where land values are concerned,” it noted.
The lowest of the five individual land tax bands,for land valued at up to $1 million,is calculated at $500 plus one cent for every $1 above the threshold.
The government’s own website provides an example of land valued at $680,000,resulting in an annual tax bill of $1300. Absentee owners,companies,trusts and foreign investors are taxed at a higher rate.
State land tax assessments consider all land owned by an individual or other entity in Queensland. However,from June next year,the state government will.
Budget documents show the state’s land tax revenue is tipped to jump from $1.6 to almost $1.8 billion this financial year,before passing $2 billion in 2023-24.
While sparking outrage from property groups and the state opposition as a “tax grab” likely to lead to investors selling up or passing the costs to tenants,others have said stopping the “distortion” of tax concessions could help level the playing field with first-home buyers.
Speaking on Wednesday,Treasurer Cameron Dick said he was unaware of any opposition from revenue offices in other jurisdictions — which some experts have suggested could make the same move — towards implementing the change.
“It’s a well-promoted tax avoidance scheme to buy property in different jurisdictions,thereby avoiding the land tax threshold,” Dick said.
,along with a,have driven calls for governments to consider fresh approaches to housing. The Queensland government has announced it would.
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