Land tax threshold and rates for companies and trusts
Find out how land tax is calculated for companies and trusts.
Your liability for land tax is based on land you own at midnight 30 June each year.
The land tax rate depends on the type of owner you are.
A company (including clubs, associations and societies) or trustee (of a trust or superannuation fund) is liable for land tax if the total taxable value of all their land, comprising land solely owned and their share in land owned jointly with others, is $350,000 or more.
- If you are the trustee of a special disability trust, the rates for individuals apply.
- If you are a foreign company or trustee of a foreign trust, a surcharge of 3% on taxable land valued at $350,000 applies in addition to the land tax rates.
Threshold
As a company or trustee, you are liable for land tax if the total taxable value of all your freehold land is $350,000 or more.
A trustee of a special disability trust is treated as an individual for land tax, with a threshold of $600,000 or more.
The taxable value of your land is based on your annual land valuation issued by the Valuer-General.
You may be able to apply for exemptions to reduce your total taxable value.
Rates
The rates below apply to the total taxable value of land owned at midnight 30 June by a company or trustee.
If you are the trustee of a special disability trust, the rates for individuals apply.
If you are a foreign company or trustee of a foreign trust, a surcharge of 3% on taxable land valued at $350,000 or more applies in addition to these land tax rates.
| Total taxable value | Rate of tax |
|---|---|
| $0–$349,999 | $0 |
| $350,000–$2,249,999 | $1,450 plus 1.7 cents for each $1 more than $350,000 |
| $2,250,000–$4,999,999 | $33,750 plus 1.5 cents for each $1 more than $2,250,000 |
| $5,000,000–$9,999,999 | $75,000 plus 2.25 cents for each $1 more than $5,000,000 |
| $10,000,000 or more | $187,500 plus 2.75 cents for each $1 more than $10,000,000 |
Example 1—Australian company
Total taxable value of $6,400,000
Tax band is $5,000,000–$9,999,999
Tax calculation = $75,000 + (2.25 cents × $1,400,000 excess)
= $75,000 + $31,500
Tax payable = $106,500
Example 2—Trustee of self-managed superannuation fund
Total taxable value of $760,000
Tax band is $350,000–$2,249,999
Tax calculation = $1,450 + (1.7 cents × $410,000 excess)
= $1,450 + $6,970
Tax payable = $8,420
Companies
For land tax, ‘companies’ includes clubs, associations and societies.
You may be able to apply for exemptions to reduce your total taxable value.
Trustees of trusts and superannuation funds
In Queensland, trust land is registered in the name of the trustee. If your assessment includes both trust and non-trust-owned land, or is not assessed at the rate for trustees, call us on 1300 300 734 to discuss the trust relationship.
As a trustee, you are liable for land tax if the total taxable value of the freehold land held for that trust is $350,000 or more.
When calculating your total taxable value, we will not add the value of land held for one trust to the value of any other land you hold as:
- trustee of another trust, unless it is a cloned trust
- an individual or company.
Read the public ruling on assessment of trustees (LTA020.1) for more information.
Trustees of special disability trusts
The beneficiary of a special disability trust will always be an individual. For this reason, from 30 June 2022, for land tax purposes you’ll be treated as an individual rather than a trustee.
If you are a trustee of a special disability trust under the Social Security Act 1991 (Cwlth) or the Veterans’ Entitlements Act 1986 (Cwlth):
- you are liable for land tax if the total taxable value of your freehold land at 30 June is $600,000 or more
- the rates for individuals apply.
Trusts and trust aggregation
Land may be held by the trustee in its own capacity or on behalf of a trust.
If you are a trustee of a trust, your land tax liability will be assessed separately on the taxable land in Queensland that is held by the trust, as if that land were the only land owned by you as trustee.
When land is held by 2 or more trustees of the same trust, the land tax is assessed as if the land was owned by 1 person.
Aqua Pty Ltd is the trustee of the Ocean Family Trust. As trustee, Aqua Pty Ltd is the registered owner of a land parcel.
The land subject to the Ocean Family Trust is valued at $400,000.
Aqua Pty Ltd is also the registered owner—in its own capacity—of another land parcel, which is valued at $500,000. Aqua Pty Ltd would be assessed for land tax for that land parcel.
This means that Aqua Pty Ltd would receive 2 land tax assessment notices:
- one in its capacity as trustee
- one in its own capacity as a company.
For more information, read the public ruling on assessing trustees for land tax (LTA020.1).
Trust aggregation
Trust aggregation for land tax occurs when, at the time that liability for land tax arises (30 June), a taxpayer is a trustee for more than one trust and the interests of the beneficiaries of those trusts are the same. Land tax is assessed on the taxable value of all land that is held subject to those trusts.
This means that at 30 June, if you are a trustee of multiple trusts and each of the beneficiaries of the trusts are the same and hold the same interest in each of the trusts, you will be assessed on the total taxable value of the combined taxable landholdings of those trusts.
Where a trustee holds several parcels of land, each in the name of a different trust and the beneficiaries of those trusts and their interests in the trust at 30 June are the same, one land tax assessment notice will be issued to the trustee for all the taxable land that is held by those trusts.
Green Pty Ltd as trustee for Smith Family Trust 1
Holds land parcel A in Queensland
Beneficiaries (and interest):
- John Smith (50%)
- Jane Smith (50%)
Green Pty Ltd as trustee for Smith Family Investment Trust 2
Holds land parcel B in Queensland
Beneficiaries (and interest):
- John Smith (50%)
- Jane Smith (50%)
In this example:
- Green Pty Ltd is the registered owner of both parcels of land as trustee.
- Green Pty Ltd is the trustee of both the Smith Family Trust 1 and the Smith Family Investment Trust 2.
- Green Pty Ltd holds parcel A as trustee for the Smith Family Trust 1 and parcel B as trustee for the Smith Family Investment Trust 2.
- On 30 June, John Smith and Jane Smith are beneficiaries of the Smith Family Trust 1 and the Smith Family Investment Trust 2. The interests they hold in each trust are the same.
- Green Pty Ltd is liable for land tax as a trustee (under ss.20(2) and (3) of the Land Tax Act). One assessment notice will be issued because at the time of determining land tax liability (30 June), each trust has the same beneficiaries with the same interests. Land tax will be based on the total taxable value of all taxable land that is held by the trusts.
Where a trustee holds several parcels of land, each on trust for a different group of beneficiaries, a separate land tax assessment would be made for each trust.
June Smith as trustee for Johnson Family Trust
Holds land parcel A in Queensland
Beneficiaries (and interest):
- May Johnson (50%)
- April Johnson (25%)
- March Johnson (25%)
June Smith as trustee for Williams Family Trust
Holds land parcel B in Queensland
Beneficiaries (and interest):
- January Williams (50%)
- July Williams (50%)
In this example:
- June Smith is the registered owner of both parcels of land as trustee.
- June Smith holds land parcel A as trustee for the Johnson Family Trust and parcel B as trustee for the Williams Family Trust.
- The Johnson Family Trust and the Williams Family Trust have different beneficiaries.
- June Smith is liable for land tax as a trustee for the land held in each trust. Two separate land tax assessment notices will be issued.
The 2 trusts have different beneficiaries, which means that the trustee will receive separate assessment notices for each parcel of land.
Also consider…
- Find previous land tax rates.