Queensland Premier Annastacia Palaszczuk ditched the controversial land tax after weeks of negative publicity and a refusal by NSW Premier Dominic Perrottet to co-operate.
The changes, which were due to start next year, would calculate an owner’s liability for land tax based on the total value of their Australia-wide holdings that are not exempt, not just those in Queensland.
It was expected to affect approximately 10,000 investors and recoup the Queensland government almost $20 million a year from 2023–24.
With different states having different exemptions, thresholds and valuation timings the Queensland proposal was going to be a compliance nightmare for taxpayers.
The National Tax & Accountants Association said its members were pleased to hear of the last-minute change of heart by the Queensland Premier, with many raising concerns over one example on the Queensland Treasury website.
It showed that one Queensland landholder (with property in both Queensland and Victoria) under the new regime would incur a land tax increase from $1,950 to $8,422.37 for the 2024 financial year.
Source: Accountants Daily
