Only time will tell. However, it seems reasonable that a residential property investor with multiple interstate properties and only one or two Queensland-based properties will sell them to avoid the reach of the Qld Revenue Office. (Equally, an investor with predominantly Qld-based properties may sell off an interstate property to avoid a land tax hike.)
If Qld properties are retained, investors are likely to want to increase rents to try to recover some or all of the additional Qld land tax.
Either way, it is likely to exacerbate the already difficult rental climate in Qld. (Not forgetting the Greens plans for nationwide residential rent controls.)
Under the 2023 Qld land tax changes, Qld land tax will be calculated based on:
1. the total of your taxable land located in Queensland. and 2. the statutory value of your interstate land.
Qld land tax is calculated based on the taxable value of Australian land which is then applied to the Qld portion of the land holdings.
The Qld Revenue Office's example has the fictional Lena's Qld land tax bill increasing from $1,950.00 to $8,422.37.
There is no credit given for land tax payable in another State.
It is surprising that it has taken this long for the issue to be picked up by the media and many investors will be unaware of these changes. However, for the moment, the Qld Government is holding firm. Also, once implemented in Qld, how long until other States follow suit?
Fears over land tax changes to include interstate investors’ holdings outside of Queensland
September 2022
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