HOW MUCH IS LAND TAX IN QUEENSLAND?

HOW TO CALCULATE YOUR AUSTRALIAN LAND TAX IN 2019?

LAND TAX

If you buy real estate in Queensland you will be required to pay a sum of Land Tax. Land Tax is a State Government Tax and is collected to contribute to Government services and infrastructure in Queensland. You are considered exempt from Land Tax for any land that has a home on it which is used as your principal place of residence.

The amount of land tax payable is calculated using a land valuation of your property with different rates applicable depending on what type of owner you are (Company or Individual).

TAX LIABILITY

Land Tax is calculated on the 30th of June each year and applies for the next 12 months. If you are buying real estate property in Queensland, it is important that before you become the owner of the Land that any Land Tax owing on the Land by the Seller is paid before settlement. If the Seller has not paid their land tax previously you as the new owner will become liable to the Queensland Government for payment of the Seller’s Land Tax.

Read more about Land Tax Clearance Certificates here: https://www.qld.gov.au/environment/land/tax/clearance

Be very careful when signing off-the-plan contracts (when the Land is still to be subdivided) as often these contracts make the Buyer responsible for payment of the Seller’s Land Tax on settlement. This Land Tax can be a considerable amount if the Seller already owns a lot of real property.  

For more reading on how buying and selling land affects your land tax visit the Queensland Government authority land tax resources page

here: https://www.qld.gov.au/environment/land/tax/changes.

& here: https://www.qld.gov.au/environment/land/tax/overview/about

Don’t hesitate to contact Horrocks Solicitors today for legal advice regarding your applicable land tax before June 30th arrives this month.

CONVEYANCING STEPS FOR GIFTING PROPERTY IN QLD

WHAT ARE THE CONVEYANCING STEPS FOR GIFTING A PROPERTY IN QUEENSLAND?

People often ask whether the conveyancing process is necessary when gifting a property to a family member or third party. In addition there is also the question of stamp duty…

CONVEYANCING
The conveyancing of a property to be given away or gifted is straight forward and this thus named "Transfer" is a regular conveyancing practice. A standard fee applies. The only other normal cost of the conveyancing will then be the two title searches. A title search is conducted at the start of the process, and also one on the day of settlement.

It is necessary for the Solicitor to prepare and sign the standard titles forms. If there are mortgages held by the Bank, it will also be required to organise settlement with the corresponding Bank.

STAMP DUTY
Stamp Duty is payable to the Queensland Government in all property transfers unless there is 
(i) a concession for first principal place of residence or
(ii) a transfer by one partner of a relationship to give the other person partner a 1/2 share or
(iii) in a relationship breakdown where there is a Binding Financial Agreement or Orders from the Family Court.

If you have any questions about your eligibility for these concessions, we can provide legal advice by phone or email by calling 07 3013 2300 or via our contact form.

Where stamp duty is payable it is calculated on the market value of the property.

The market value is determined by either 
1. A valuation from a registered valuer or
2. Obtaining a Letter of Appraisal from a Real Estate Agent. The Letter states the market value, confirming it with the address of 3 recent comparable sales in the area. 

For more information about gifting and transferring a property in the state of Queensland contact Horrocks Solicitors. Every conveyancing settlement is different and the specifics of your contract will be handled by one of our highly qualified staff ensuring you get settlement success.

For more about Conveyancing Brisbane return to our Home Page.