Queensland\u2019s land tax regime is expanding, capturing thousands of new properties. As land values rise, more property owners are facing higher tax bills. The state government expects significant revenue increases as the net widens.<\/p>\n\n\n\n
The Queensland government\u2019s land tax regime has become increasingly expansive in recent years. The number of properties falling under the regime has grown substantially, reaching 204,586 in 2024-25, up from 181,466 the year before. At the same time, the number of individuals liable for the tax surged by 30%, from 46,794 to 60,828. The revenue boost from this expansion is significant, with the state government projecting $2.47 billion in land tax collections for 2024-25, a noticeable increase from $2.03 billion the previous year.<\/p>\n\n\n\n
However, this growing tax base has raised questions about fairness, particularly in the face of rising property prices. Land tax is applied to investment properties, but homeowners\u2019 principal residences are exempt. The key threshold for paying land tax, set at $600,000 for individuals, has remained unchanged since 2007. This static threshold means that, as property prices climb, more people are falling into the tax net. For many, this could mean extra financial strain as their property values increase, but their land tax bill also grows.<\/p>\n\n\n\n
The Real Estate Institute of Queensland (REIQ<\/a>) has repeatedly called for the land tax threshold to be indexed to the Consumer Price Index (CPI<\/a>), to reflect rising property values. REIQ\u2019s Chief Executive Antonia Mercorella argues that it would be \u201clogical and fair\u201d to update the threshold to account for inflation and property price increases over the last two decades. With property prices in Queensland continuing to soar, she believes more people will be caught in the land tax net unless the threshold is adjusted.<\/p>\n\n\n\n Despite these calls, the Queensland government has made it clear that it has no plans to raise the threshold or index it to CPI. Treasury argues that the current threshold is already among the \u201cmost generous\u201d in the country, particularly compared to other states like Victoria, which has a far lower threshold. They also point out that most homeowners remain unaffected by the tax due to the principal place of residence exemption.<\/p>\n\n\n\n