Queensland’s Property Boom Triggers Calls for Land Tax Reform

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The Real Estate Institute of Queensland (REIQ) continues to call for changes to the land tax threshold in Queensland, as soaring land values push additional properties into the red.

It is understood more than 194,500 Queensland properties were subject to land tax across the state in the last financial year, an increase of 14 percent since the year before.

A property attracts land tax if its land valuation exceeds $600,000 (US$386,000), and in the case of property investors, the total land value is counted as an aggregate.

Antonia Mercorella, the CEO of REIQ, argued that the $600,000 threshold, unchanged since 2007, no longer reflects current property values.

“Property prices have soared in Queensland in recent years, and so in our view, it’s well overdue to re-adjust the value at which land tax applies,” she told The Epoch Times.

“The REIQ has long advocated for indexation of the land tax threshold to bring it into line with CPI.”

No Changes Planned

Despite these calls, the Queensland government do not plan to amend the current threshold.

“The state government has no plans to change Queensland’s land tax settings,” a spokesperson for Queensland Treasurer David Janetzki told The Epoch Times.

“The threshold of $600,000 also means those with small investment property holdings generally only pay a minimal land tax liability.”

The spokesperson also noted that Queensland’s threshold is significantly higher than other states.

“In particular, from Jan. 1, 2024, Victoria reduced its land tax threshold to just $50,000, meaning Queensland’s individual threshold is 12 times higher than Victoria’s,” he said.

When questioned about whether rising land values might lead to increased rents, the spokesperson declined to comment, but highlighted broader initiatives to address the housing crisis.

“The state government will unlock land for new housing, build better communities, and boost home ownership,” he said.

Land Tax Explained

Land tax is a state tax, calculated on the freehold land someone owns in the state as of June 30 every year.

The tax rate payable depends on what type of owner someone is, the total taxable value of the land, and if any exemptions apply.

Land tax applies to vacant land, land with a home, or investment property in place, land used for units, group title plans, and timeshare schemes.

Hope in Leadership

Following the appointment of the new Queensland government in November, Mercorella said the REIQ was hoping to see a return to optimism in the housing sector.

“Queensland has instilled a lot of hope in our new leaders, and there is a real opportunity to show them that housing will remain a key priority of this cabinet,” she said.

“When you consider how diluted the ‘great Australian dream’ has become for ordinary Queenslanders, and how essential shelter is for every one of us—a plan to bring hope back to housing must take focus.”