Good morning, Could anyone please advise if land tax is payable on an investment unit apartment in Queensland and if so how is it calculated. Is it included in the body corporate fees or is it paid separately?
Many thanks
DemkelLand tax is an individually tax and depends if you have reached the land tax threshold for that state or not. So no it’s not included into the strata it’s individual.
Mick C | Shape Home Loans
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Hi Demkel
Yes it certainly payable on each and every land holding in Queensland (assuming the property is an investment property).
Tax is based on the assessed land value by the Dept of Mines and Natural Resources as at the 30th June each year.
There is a threshold which varies depending on who owns the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In QLD land tax is generally not chargeable to an individual if they hold land which is valued less than the threshold – which is currently $600k. THis is land only within QLD and doesn’t include the main residence.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes 600K in a personal name or 350K for a Company, Trust or absentee owner.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thank you Mick, Richard and Terry
I have exceeded the 600K threshold and am currently paying Land Tax. I am trying to find out the Unimproved Land Value associated with buyng an investment apartment say, for example, $500,000 sale price and even the real estate agents are unable to tell me (not one but several). One Gold Coast agent who specialises in units and issues a monthly E-newsleter with videos, said “I’ve ever been asked that question before”. I would be gratefull for any further advice this Forum would like to offer. Especially any Queensland investors in the same situation.
Regards and thank you again
DemkelThe unapproved Land Value shown on the Council Rates Notice should give you a good guide.
One way to reduce it would be to look at buying in another entity as there is no aggregated Holdings in Qld
When we buy a property for a client we certainly look at their Land Tax position and if necessary would suggest buying in another State.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Could anyone please advise if land tax is payable on an investment unit apartment in Queensland and if so how is it calculated.
Yes it is payable. You own the land together with the other owners in the building. The amount will be apportioned according to your share. There are 2 option it could be apportioned:
1. Land Value / number of units in the building
2. Land Value * (your unit size in sqm / total units sqm)superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auThanks SuperAndrew
You have confirmed that Land Tax implicatons should be taken into condideration, once the threshold has been exceeded, as it will affect the profitability of the investment. One must presume, that the Office of State Revenue must issue a new Land Valuation annually, to each unit owner? Wold this be correct?
Any further input from yourself or the Forum would be appreciated.
Regards
DemkelYou should consider land tax from the get go, not once the threshold has been reached. It is difficult and costly to change land ownership later so plan ahead and minimise the pain.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes the Dept of Nat Resources issue a Land Tax assessment notice to each owner in the block on an annualised basis.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thank you fou your help Terry and Richard.
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