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Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Land tax threshold and rates for foreign companies and trusts

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    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.

    Estimate your land tax

    Threshold

    As a foreign company or trustee of a foreign trust, you are liable for land tax if the total taxable value of your freehold land at 30 June is $350,000 or more.

    The taxable value of your land is based on your annual land valuation issued by the Valuer-General.

    Surcharge

    A foreign surcharge of 2% on taxable land valued at $350,000 or more applies in addition to the land tax rates.

    This is how the surcharge is calculated: (Taxable value – $350,000) × 2%.

    The surcharge will appear on the land tax summary section of your assessment notice.

    A change to the surcharge is included in the State Budget. Details will be available shortly.

    Build-to-rent concession

    For the 2024–25 land tax assessment year, you might be eligible for a build-to-rent concession for land tax, which would reduce the taxable value of land for the foreign surcharge.

    Find out about build-to-rent concessions.

    Rates

    The rates below apply to the total taxable value of all land owned at midnight 30 June by a company or trustee.

    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

    Total taxable value of $400,000
    Tax band is $350,000–$2,249,999
    Tax calculation = $1,450 + (1.7 cents × $50,000 excess)
    = $1,450 + $850
    = $2,300
    Add surcharge (2% × $50,000) = $1,000
    Tax payable = $3,300

    Foreign company

    Your company is foreign if:

    • it is incorporated outside Australia
    • foreign persons or related persons of foreign persons have at least 50% controlling interest.

    Trustee of a foreign trust

    You are a trustee of a foreign trust if at least 50% of the trust interests are held by:

    • an individual who is not an Australian citizen or permanent resident
    • a foreign company
    • a trustee of a foreign trust
    • a related person of any of the above.

    Your interest in a trust as a beneficiary is the percentage of the value of your entitlement under the trust. There are special rules for discretionary trusts where only ‘takers in default’ (i.e. people whose entitlements as beneficiaries result from the trustee not exercising their discretion) of an appointment by the trustee have a trust interest.

    Ex gratia relief from the surcharge

    You may be eligible to apply for ex gratia relief from the surcharge if you make a significant contribution to the Queensland economy and community.

    Also consider…

    Last updated: 11 June 2024