Land tax in Brisbane

I bought 3 IP's in Brisbane last year. Yesterday I received an annual land valuation notice for these properties. Based on these valuations I am going to be liable for $10k in land tax.

Is there anything I can do to avoid the land tax? If not, what should I consider before making further purchases in Brisbane to limit my land tax liability?
 
I bought 3 IP's in Brisbane last year. Yesterday I received an annual land valuation notice for these properties. Based on these valuations I am going to be liable for $10k in land tax.

Is there anything I can do to avoid the land tax? If not, what should I consider before making further purchases in Brisbane to limit my land tax liability?

Seek professional advice for sure.in QLD you can setup trust to minimise land tax, if one trust almost/reached the land tax threshold then setup new trust.
 
Trusts can have individual land tax thresholds in QLD, as can companies etc. May be expensive to take from your name to a trust now as that would effectively be a sale and a purchase, so duty and CGT (if any gain). Although now would be the time to consider it if you are going to hold long term as with capital growth comes more CHT on the way out and more duty for the trust on the way in.
 
Personal limit is $599,999 and trust (all types of trust???) $349,999.

We looked at setting up a trust to hold one house and the costs involved in doing that compared to holding in my name as an individual and paying nothing until the land reaches a value of $600K, which might take another few years.

In personal name once you hit $600K it is $500 plus 1 cent for each $1 more than $600K.

For companies, trustees and absentees, once you hit $350K it is $1450 plus 1.7 cents for each $1 more than $350K.

It is a fair whack and due to the considerably higher tax in a company or trustee name, you have to weigh up how long before you start paying the much higher rate, compared to owning in a person's name.

That is what we decided to do (hold in my personal name) if we go ahead with this plan.

Edit: This is without the cost of moving it from one name to another, which is another huge slug.
 
In NSW:
Properties purchased under joint names, say Mr A and Mrs A, gets a threshold

If Mr A has a property by himself, Mr A will incur 50% of above but Mr A will also have his own threshold.

Is this the same as QLD?
 
In NSW:
Properties purchased under joint names, say Mr A and Mrs A, gets a threshold

If Mr A has a property by himself, Mr A will incur 50% of above but Mr A will also have his own threshold.

Is this the same as QLD?

Not quite correct. If A + B owns a property with land value of $600K then its assessed to the joint owners and some tax is paid. THEN each individual is assessed on their share plus any personal property with share of the tax paid to the joint owners credited. If the personal assessment = zero its not issued.

End result is any individual in NSW gets a single threshold that includes all personally owned, share of joint and share of unit trust interests
 
In NSW:
Properties purchased under joint names, say Mr A and Mrs A, gets a threshold

If Mr A has a property by himself, Mr A will incur 50% of above but Mr A will also have his own threshold.

Is this the same as QLD?

No, it is different in QLD. Co owners are assessed separately s 22.
 
If you dont want to get into the complication of trust and company, which scenario below incur least amount of land tax in QLD for the $700k unimproved land

(1)
Husband + Wife joint name $700k


(2)
Husband $250K
Wife $250K
Husband + Wife joint name $200K
 
If you dont want to get into the complication of trust and company, which scenario below incur least amount of land tax in QLD for the $700k unimproved land

(1)
Husband + Wife joint name $700k


(2)
Husband $250K
Wife $250K
Husband + Wife joint name $200K

In QLD you could have each property each in a separate trust and likely not pay land tax for a long long time. (When land tax laws change). Just don't change the trust !! QLD has a nasty indirect duties rule that could trip stamp duty if the trust deed is amended and other matters.

Just because you can do this doesn't make it a good strategy.
 
If you dont want to get into the complication of trust and company, which scenario below incur least amount of land tax in QLD for the $700k unimproved land

(1)
Husband + Wife joint name $700k


(2)
Husband $250K
Wife $250K
Husband + Wife joint name $200K

I don't think either would result in land tax in QLD.
 
Personal limit is $599,999 and trust (all types of trust???) $349,999.

We looked at setting up a trust to hold one house and the costs involved in doing that compared to holding in my name as an individual and paying nothing until the land reaches a value of $600K, which might take another few years.

In personal name once you hit $600K it is $500 plus 1 cent for each $1 more than $600K.

For companies, trustees and absentees, once you hit $350K it is $1450 plus 1.7 cents for each $1 more than $350K.

It is a fair whack and due to the considerably higher tax in a company or trustee name, you have to weigh up how long before you start paying the much higher rate, compared to owning in a person's name.

That is what we decided to do (hold in my personal name) if we go ahead with this plan.

Edit: This is without the cost of moving it from one name to another, which is another huge slug.

So in saying this if I have 750k worth of Qld Land. I'm going to be slugged with a $2,000 Land Tax bill?

Melbourne is looking more enticing by the day. . . .
 
So in saying this if I have 750k worth of Qld Land. I'm going to be slugged with a $2,000 Land Tax bill?

Melbourne is looking more enticing by the day. . . .

$750k - $600k = $150k.
$150 x 1% = $1500
Plus $500 = $2000 all up. per year

So yes that is correct if you owned the property.

In NSW it would be
$750k - $432k = $318k
$318k x 1.6% = $5,088
Plus $100 = $5,188 all up per year

In VIC
$750k - $600k = $150k
$150k x 0.5% = $750
Plus $975 = $1,725 all up per year
 
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