Land Tax threshold QLD

Discussion in 'Accounting & Tax' started by Gen-Y, 4th Dec, 2019.

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  1. Gen-Y

    Gen-Y Well-Known Member

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    I have a huge problem with the way - land tax threshold for Queensland.
    The threshold sums have not change since 2007 to 2020. :eek:

    How can we as investors get them to change it to a more progressive fairer way?
    Write to OSR?
    Lobby your local member?

    For individual - the threshold is $600k @ 1.0%
    For trust - the threshold is $350k @ 1.7%

    But the land valuation have continuously rise since 2007 for Queensland.

    https://www.publications.qld.gov.au...0c9ee2f6/download/previous-land-tax-rates.pdf

    Other states in Australia -
    Victoria have lower threshold and % charge unchanged since 2009
    Land tax current rates | State Revenue Office

    New South Wales have progressive rate and it is index each year
    Land tax

    Please discuss and share.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    The laws would need to be changed. SRO doesn't make the laws, parliament does so you would have to lobby politicians for this to happen.
     
  3. Gen-Y

    Gen-Y Well-Known Member

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    my current frustration is my land tax bill have increased 16% this year.
    I am 100% my property did not jump 16% this year. :(
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    Just wait till next year!
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Why did you not object? The ball was in your court.
     
  6. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes review the (unimproved) land valuations. If they are excessive the notice will be excessive. There is a time limit to that process
     
  7. wylie

    wylie Moderator Staff Member

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    I've objected several times over the years, but not for a while, because whilst a couple of times my objection (or my parents' objections) did see a reduction, it was hardly worth the effort and most years the objections were ignored.

    Land tax is the main reason we are moving out of property. It is a joke.
     
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  8. Synergy

    Synergy Well-Known Member

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    Is 2 houses per state a legit strategy to keep land tax on the low side? Do they just send a bill?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    There are many strategies, you just have to get under the threshold and factor in growth in values.
     
  10. wylie

    wylie Moderator Staff Member

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    One house is enough to be over the threshold if it is inner ring or a big block.
     
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  11. Synergy

    Synergy Well-Known Member

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    Oh, how do I know what I will be stung? Is there a website to see what thresholds they are per each state?
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    Yes, it is the relevant government department in each state.
    NSW Revenue NSW
    QLD State Revenue Office
    VIC State Revenue Office
    etc
     
  13. wylie

    wylie Moderator Staff Member

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  14. Bran

    Bran Well-Known Member

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    I have just sent an email to my accountant...

    Properties held in trust it seems, can have a designated beneficiary who then have an individuals threshold (450k) rather than the trust.

    I'm very peeved ive been stung in my trust for a couple of years now, with a UCV of 445k (total BS). With a three bed house on it, I couldnt sell it for more than 515k last year
     
  15. kierank

    kierank Well-Known Member

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    Do you have a link to a website that explains this in more detail?

    This year, we paid $13,000+ in Land Tax, about $250 a week :eek:.

    I need to do something to reduce it!!!
     
  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    Accountants are legally unable to give advice on land tax. This is state legislation and can only be advised on by a lawyer.

    Which state are you talking about?
     
  17. Gen-Y

    Gen-Y Well-Known Member

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    Why can't investors lobby the politician? Money talks yeah?
    Seriously - I am so bloody afraid to get another property in the inner ring of Brisbane of splitter block.
    I don't want to be stung upwards of $5000 again each year.
    Someone said I should get 2 or 3 of these joined for next purchase.
    Discretionary Trust - bucket company
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    Investors can lobby.

    Sounds like the person who suggested that is not a lawyer. Bucket companies will not help with land tax. But if a trustee owns property in QLD there could be a separate land tax threshold. If 2 trustees of 2 different trusts own the same property each could get a threshold.
    Similar with a company holding property.

    But there are many legal issues to consider, besides land tax.
     
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  19. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The value or profitability of the property itself isnt the issue. Land tax is a wealth tax that is applied to all land other than exempt land. Its like opposing council rates.

    The changed values of property in recent years mean owners must be vigilant for revaluation which may be excessive. The time to object is narrow. Many posts here about QLD values being a big high seem to indicate a common issue and may be a timing issue even. If the unimproved val is $445K and the potential sale with a dwelling is $515k seems a bit high. Depends whats on the land.

    The issue with land tax is one which is best explored when purchasing. Fixing it now will involve CGT and duty. I have seen plenty buy two or three in a trust then find it was the wrong thing to do. I also have many people say they have never heard of land tax. I ask if they got legal advice when buying and they say - No. They ask for a contract and sign it. Big mistake.
     
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  20. Gen-Y

    Gen-Y Well-Known Member

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    I didn't have a problem with paying land tax per say.
    It is just haven't been indexed with growth if any at all.
    How can they tell me that the land value have gone up 16% from last year.
    Base on what calculation? Surrounding land sold for the suburb?
    It is residential land - with a low set dwelling with zero improvement since 1962.
    I might be a mushroom, but I don't like to be fed cow poo.