We aren’t rebuilding the Gabba anymore, so why the Land Tax grab?

May 14, 2024

In Queensland, if all or part of land you own is used solely for the business of primary production, you will likely be eligible for a land tax exemption.

In New South Wales, if the dominant use of land zoned rural, rural residential or nonurban is primary production, the land tax exemption will likely be available.

The exemption is available to non-foreign landholders who are individuals, companies and trusts.

Land tax becomes payable in Queensland if the land held by a landholder exceeds the relevant thresholds: $600,000 per individual; and $350,000 per company or trust.  New South Wales has one threshold of $1,075,000.

With the significant increase in rural property values over the last couple of years, a larger number of parcels of land are exceeding the threshold.

There has also been a high turnover of property ownership, and the State Revenue Offices will not assume that property sold will continue to be used for primary production after the transfer.

As a result, we are seeing a much higher incidence of primary production land being assessed for land tax.

If you purchase property that you intend to be used solely (in QLD) or predominantly (in NSW) for the business of primary production, you should apply for a land tax exemption so that you do not receive an assessment.

If you receive a land tax assessment for land you already own that satisfies the primary production use test, you should apply for a land tax exemption.

If you have been paying land tax on land that satisfies the primary production use test, you may be able to apply for a refund of the land tax paid.

Details about how to apply for the exemption is available on the State Revenue Office websites Primary production – Queensland Revenue Office (qro.qld.gov.au) and Apply for an exemption or concession | Revenue NSW.

Alternatively, contact one of our property team for assistance in relation to land tax exemptions.