Queensland land tax

Discussion in 'Accounting & Tax' started by PropertyInsight, 30th Sep, 2017.

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  1. PropertyInsight

    PropertyInsight Well-Known Member

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    I am going to put an offer for a IP with significant land component (1600m2) in Brisbane.However, I am concerned about land tax. Is there any ways to estimate land tax?

    I currently paid $3500pa for land tax and do not want to let land tax eat all the rental income.
     
    PropertyInsight, 30th Sep, 2017
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  2. wylie

    wylie Moderator Staff Member

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    Get the Bank of Queensland (BOQ) app and put in the address. It will send you via email the details collected from RPData. (Or you can ask someone with access to RPData - agents, brokers etc to give you the details).

    Once you know the unimproved land value, add it to the unimproved land value of your current IP.

    Then go to OSR website or click this link and you can see what you will be paying in land tax. Be aware that once you hit UCV (unimproved value) of $1m the land tax jumps up substantially. It is all there in this website if you look around the different areas.

    You could look at buying in a different entity, but there are catches with trusts. So be careful and maybe get some advice before nominating the name you buy in.

    Calculating land tax | Environment, land and water | Queensland Government
     
    wylie, 30th Sep, 2017
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  3. PropertyInsight

    PropertyInsight Well-Known Member

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    I have found the land valuation at Queensland Globe . Use land valuation with the rate rate, I estimate the land tax.
     
    PropertyInsight, 30th Sep, 2017
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  4. PropertyInsight

    PropertyInsight Well-Known Member

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    I just calculated my land tax and realised that my lowest valued house sits on the highest land value. To save land tax, I reckon that it is better buy a big house on smaller land.
     
    PropertyInsight, 30th Sep, 2017
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  5. Trainee

    Trainee Well-Known Member

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    Buy the worst house on the best street not your thing? Land is what appreciates.
     
    Trainee, 30th Sep, 2017
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  6. wylie

    wylie Moderator Staff Member

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    Depends on what your end game is. We are paying a big whack of land tax on a particular double block. Now the combined value is over $1m, our land tax has doubled on this block.

    But we will develop the land so we are suffering short term pain for long term gain...

    Once you get UCV over $3m in Queensland your land tax (individuals) will really start to hurt...

    Screen Shot 2017-09-30 at 5.08.07 pm.png
     
    wylie, 30th Sep, 2017
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    However you cannot improve the location of a property - so a well located unit has less land (& land tax liability).
     
    Scott No Mates, 30th Sep, 2017
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