Queensland Government scraps land tax reforms

Tax Insights

The Queensland Government announced this morning that it will indefinitely defer the implementation of its controversial land tax reforms. 

Following our Tax Insight on 4 August 2022, and in response to significant criticism and opposition from various stakeholders, the Queensland Government has announced that it will indefinitely defer the implementation of its controversial land tax reforms, colloquially referred to as the ‘Interstate Land Tax Model’.blue_city_1_asset_14x.png

Described by CPA Australia as a “revenue grab” and “double taxation at its worst”, the reforms, which were due to take effect from 30 June 2023, would have resulted in Queensland land tax being calculated by reference to a taxpayer’s total Australian land holdings rather than just their property in Queensland.

While Queensland land tax would still only have been payable on the taxable land value of a taxpayer’s Queensland landholdings, the applicable rate would have been determined by reference to the aggregate value of the taxpayer’s landholdings Australia-wide.

This approach to calculating land tax would have represented a material departure from that followed in all other states and territories and resulted in a materially higher land tax liability for taxpayers who own land both within and outside of Queensland.

While the Queensland Government has not expressly ruled out implementation of the reforms and, indeed, Treasurer Cameron Dick has stated that he “stands by everything he’s said”, parallels can be observed to the proposed abolition of stamp duty on goodwill that was ‘indefinitely deferred’ approximately 20 years ago, but still remains on Queensland’s statute books today.

If you would like to discuss a stamp duty matter, whether Queensland or otherwise, please contact Sam Mohammad (Director – Indirect Tax).

October Federal Budget 2022

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