Land owners are liable to land tax if the taxable value of their non-exempt land owned at midnight on 30 June exceeds the land tax threshold:
- $600,000—for an individual other than an absentee or trustee
- $350,000—for a company, trustee or absentee.
The taxable value of land is based on statutory land valuations issued by the Valuer-General of the Department of Natural Resources and Mines. When a new valuation issued results in the taxable value of an owner’s land holdings exceeding the land tax threshold, an owner may become liable for land tax for the first time. An owner may also become liable through an increase in their landholdings due to an inheritance, an acquisition, or when leasehold land is converted to freehold.
Each year the Office of State Revenue (OSR) issues letters to individual owners who became liable for land tax for the first time in that year. The purpose of these letters is to inform first time land tax payers of their liability, and to provide them with an opportunity to check OSR’s records of their landholding, and to claim any relevant exemptions, such as the primary production or home exemption, before a land tax assessment is issued.
If the land owner does not claim an exemption, or it is not received by OSR before assessment processes commence, OSR will issue an assessment notice which notifies the amount of land tax payable and the due date for payment.
However, if a land owner who has received an assessment is eligible to claim a primary production or other exemption, they can still apply to OSR for the exemption, and a reassessment will be issued once the application is approved. No further action is taken to recover payment of their land tax assessment until their exemption application has been considered.
Land owners can claim a primary production exemption by returning their completed Form OSR LT11 to email@example.com. Alternatively, land owners can lodge their applications online by registering for OSR Online. This online tool enables users to apply for primary production or other exemptions online rather than by completing paper forms, as well as view assessment notices and make payments.
If any further information about the primary production and other land tax exemptions is required, information is available at the following link or by contacting OSR on 1300 300 734.
For those who may have current or future year land tax liabilities for land that is not used for the business of primary production or other exempt purpose, there is an extended payment option available to provide an alternative to the full payment of land tax by the due date. The extended payment option enables the payment of a land tax assessment, via direct debit, in three equal instalments over a 150-day period. Further information regarding this payment option is contained in land tax assessment notices, including how to register and the relevant payment due dates. Also, taxpayers’ experiencing genuine financial hardship may apply to enter into a pay-by-instalment arrangement to service their tax debt. Information on how to apply for such an arrangement is available at www.treasury.qld.gov.au.