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

Land tax subdivider discount

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    After you subdivide land, the new parcels are generally valued separately under the Land Valuation Act 2010. This often results in the land having a much greater total value than the original larger parcel before it was subdivided.

    A land owner’s land tax liability may increase based on the new values. However, a discount of 40% will apply to the parcel’s value when both the parcel and threshold requirements are met.

    Learn about annual land valuations.

    This subdivider discount is initially applied to your assessment based on information supplied by the Department of Resources, which will confirm the land was discounted for rating purposes as ‘subdivided land not yet developed’.

    You need to meet the following eligibility requirements under the Land Tax Act 2010 to retain the discount.

    Parcel requirements

    Each parcel receiving the discount must:

    • have been created from a larger parcel (which was not developed at the time of subdivision)
    • have the same owner(s) as the larger parcel
    • have been held for sale since its creation. This requirement may not be met if
      • the land is being held for another use (e.g. primary production)
      • the parcel is not being actively marketed
      • marketing is for off-the-plan sales resulting from further subdivision or creation of group title
      • the owner stopped marketing the parcel and put it back on the market
    • at 30 June of the relevant year
      • be owned by the subdivider
      • not be developed land (i.e. there is no building or other structure being constructed on the parcel)
      • not intended to be further subdivided (i.e. the parcel is retained for a future stage).

    Threshold requirement

    At 30 June of the relevant year, the land owner must have a minimum of 6 blocks in Queensland that satisfy the parcel requirements.

    Your obligations

    If you are receiving the subdivider discount on a parcel, you should ensure that you are still eligible.

    You must notify us if any parcel receiving the discount:

    • has not been held for sale since its creation (see public ruling LTA030.1)
    • was subject to any development activity at the liability date (e.g. construction of a home had commenced on the parcel on or before the liability date)
    • was retained with the intention to be further subdivided (e.g. land is planned to be part of a future stage in the subdivision or will be subdivided before its sale).

    You should also review your land tax assessment and advise us if any other details are incorrect. Find out when you should update your land tax details.

    If you are no longer eligible for the discount or land you owned at the liability date was not included in your assessment, your land tax liability for the relevant year(s) will be reassessed.

    Penalty tax normally applies to reassessments increasing a taxpayer’s liability, but this may be reduced significantly when you voluntarily disclose information to correct your liability.

    Check your eligibility

    Answer the questions below to see if you are eligible for the subdivider discount.

    Last updated: 16 March 2023