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🇦🇺 Australia /Economy & Trade

Queensland on track to make almost $5 billion a year from land tax

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Queensland's government is projected to collect nearly $5 billion annually from land tax by 2029-30, a significant increase from current revenue.
  • The tax, which does not apply to principal residences, affects investment properties and land valued above $600,000 for individuals or $350,000 for companies and trusts.
  • Critics, including the opposition leader at the time, previously labeled the tax a "stealth tax" affecting modest investors, while a real estate industry group advocates for a threshold review.

The Queensland government is on track to generate almost $5 billion annually from land tax by the 2029-30 financial year, according to new budget figures. This projection represents a nearly 80 percent climb in annual revenue from the tax over the next four years, with an expected $2.7 billion in 2025-26.

Think about a decade ago what $600,000 in land value meant compared to what it is today.

— David CrisafulliFormer opposition leader's concern about the unchanged land tax threshold.

Land tax revenue has seen steady growth over the past decade, driven by increasing land values. This tax does not apply to a person's primary residence but can affect investment properties. The threshold for individuals to pay the tax remains at $600,000, based on state valuations, a figure unchanged since 2007. Companies and trusts face a lower threshold of $350,000.

This tax is now picking up the most humble of mum and dad investors and I don't think that was the original intent of the tax.

— David CrisafulliCrisafulli's criticism of the land tax's impact on small investors.

During his time as opposition leader, Premier David Crisafulli criticized the land tax, calling it a "stealth tax" that impacted "the most humble" mum and dad investors. He questioned the unchanged threshold, noting that $600,000 in land value meant something significantly different a decade ago compared to the present. Crisafulli suggested the tax's intent may have shifted and called for fairness in its application.

We are not taking the easy option other governments have taken and are providing the certainty and stability Queenslanders can rely on.

— David JanetzkiTreasurer's statement on the government's budget and tax policy.

In response to Crisafulli's past comments, Treasurer David Janetzki stated that the latest budget includes no new or increased taxes, emphasizing the government's commitment to providing "certainty and stability." However, the Real Estate Institute of Queensland (REIQ) continues to advocate for a review of the threshold, proposing it be lifted in line with inflation to address bracket creep. REIQ chief executive Antonia Mercorella described the projected revenue as a "very significant amount of money" and highlighted that the $600,000 threshold was established nearly two decades ago when property prices were considerably lower.

We know that that threshold for land tax purposes is set at $600,000. That was established a long time ago, back in 2007, so nearly two decades ago.

— Antonia MercorellaREIQ chief executive highlighting the age of the land tax threshold.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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