Further to our article published a few weeks ago, ‘Queensland Land Tax Changes – Are you Affected?’, there has been some recent developments in this area.
During the recent Prime Ministers National Cabinet Meeting in Canberra, it is reported that the Premier learned that the other states were not going to provide assistance as a result of the changes to the Queensland Land Tax. Victorian Premier Dan Andrews, stated he was not happy about helping the Queensland government to raise taxes on his own constituents. NSW Premier Dominic Perrottet, also advised his state would not cooperate.
As a result, Queensland Land Tax changes that were due to start on June 30 2023, were shelved by Premier Annastacia Palaszczuk last Friday fortnight, with a simple statement. Ms Palaszczuk said that the land tax changes required the “goodwill of other states” to work. “If we can’t get that additional information, I will put that aside,” she said.
This has come as a big surprise to some, including the Queensland Treasurer, who previously stated one day earlier (Thursday) that the land tax changes could go ahead even if other state governments did not pass on the required information.
The land tax changes, that were previously legislated and due to commence at the stroke of midnight on June 30 2023, involved adding in landowner’s interstate holdings when calculating the land tax on (non-exempt) Queensland land. While landowners were not taxed on the land held outside Queensland, the taxable value of interstate land were to be included to determine the rate of tax that would apply to their (non exempt) Queensland landholdings. This would have resulted in a number of landowners breaching the threshold for the first time and having to pay tax or pushed landowners into a higher tax bracket.
In order to remove the legislated land tax changes, the Palaszczuk government will now have to pass an amendment to the Revenue Bill in State Parliament. Hopefully this will be sooner rather than later!
By Murray Reiha CPA Accountant at Walshs