HOW TO CALCULATE YOUR AUSTRALIAN LAND TAX IN 2019?
LAND TAX
If you buy real estate in Queensland you will be required to pay a sum of Land Tax. Land Tax is a State Government Tax and is collected to contribute to Government services and infrastructure in Queensland. You are considered exempt from Land Tax for any land that has a home on it which is used as your principal place of residence.
The amount of land tax payable is calculated using a land valuation of your property with different rates applicable depending on what type of owner you are (Company or Individual).
TAX LIABILITY
Land Tax is calculated on the 30th of June each year and applies for the next 12 months. If you are buying real estate property in Queensland, it is important that before you become the owner of the Land that any Land Tax owing on the Land by the Seller is paid before settlement. If the Seller has not paid their land tax previously you as the new owner will become liable to the Queensland Government for payment of the Seller’s Land Tax.
Read more about Land Tax Clearance Certificates here: https://www.qld.gov.au/environment/land/tax/clearance
Be very careful when signing off-the-plan contracts (when the Land is still to be subdivided) as often these contracts make the Buyer responsible for payment of the Seller’s Land Tax on settlement. This Land Tax can be a considerable amount if the Seller already owns a lot of real property.
For more reading on how buying and selling land affects your land tax visit the Queensland Government authority land tax resources page
here: https://www.qld.gov.au/environment/land/tax/changes.
& here: https://www.qld.gov.au/environment/land/tax/overview/about