Land Tax Valuations Qld Conveyancing

How valuations affect Land Tax in Qld?

When it comes to buying or selling land in Queensland, it's important to consider the financial implications for land tax. While your assessment already takes your land tax liability into account, there are situations where land tax may also be payable during property transactions. River City Conveyancing solicitors have been taking care of Queensland conveyances for over 30 years and offer premium conveyancing services at an affordable price. Our local conveyancers can take care of your property and land purchase or sale with experience, expertise and dedicated attention to detail.

How to know if you’re liable for land tax when you buy or sell house and land in Queensland?

Sellers & Land Tax

For sellers, it's worth noting that even after you sell your land, you are still responsible for paying any outstanding land tax debt. Your liability is not adjusted if you only owned the land for a portion of the year.

Land Tax & Queensland Land Transfers

Typically, when transferring land, all mortgages and charges over the property must be released. As land tax holds a first charge over the land, it needs to be paid before the transfer can take place. The payment of any unpaid land tax is usually a matter between you and the buyer and is typically settled using the funds from the property sale. However, if the buyer takes possession of the property before settlement, it's important to disclose this on the Titles Queensland Form 24. Failure to do so or if the settlement isn't finalized within 28 days after June 30, you may still be assessed as the owner for land tax purposes.

Buyers & Land Tax

As for buyers, it's crucial to be aware that if the seller hasn't paid their land tax liability on the land you're purchasing, their debt may transfer to you. Sometimes, the seller might not even be aware of their liability for that particular year at the time of the sale.

To ensure that the land tax has been paid, it’s recommended to apply for a land tax clearance search. This search will provide you with a clearance certificate if no land tax is owing, or it will inform you of the amount of unpaid land tax required to obtain a clearance certificate.

If you receive a clearance certificate, rest assured that any unpaid land tax can not be recovered from you as the purchaser.

How do valuations affect Land Tax in Qld?

It is essential to utilize the Valuer-General's land valuations to determine the taxable value of the freehold land you own in Queensland.

However, it is important to note that you will only be subject to land tax if the combined taxable value of all your land holdings on June 30 exceeds the prescribed threshold.

Presently, the thresholds are:

$600,000 or more for individuals and trustees of special disability trusts

$350,000 or more for companies, trustees, and absentees.

Who is responsible for land valuations in Queensland?

The Valuer-General in Queensland is responsible for providing land valuations for the state, which are typically issued during the month of March each year.

In certain cases, after considering a market survey report and consulting with local governments and industry groups, the Valuer-General may choose not to conduct an annual valuation for land in a specific local government area. In such instances, the existing valuations remain in effect.

What to do if you disagree with your land valuation?

Should you disagree with your valuation, you have the option to lodge an objection within 60 days from the date the valuation notice was issued. It is worth noting that only the Valuer-General can address valuation inquiries and review objections.

Land tax is applicable to the total taxable value of all your land holdings. Typically, this is calculated as the average of your land valuation for the current tax year and the previous two years for each individual parcel of land.

In cases where a parcel of land has been recently created through activities such as subdivision or amalgamation, an averaging factor is employed to determine the averaged value.

What if you have multiple properties to calculate tax on?

If you possess multiple properties in Queensland, the total taxable value is calculated by aggregating the taxable value of each property.

To learn more about calculating tax on multiple properties read our post here:Land Tax

Revaluation of your Land Tax

If the Valuer-General decides to revalue your land, you'll receive a maintenance valuation notice. This notice will indicate the effective date of the new value. After that, if necessary, your land tax liability may be recalculated, and you'll receive a reassessment notice or a refund.

When you receive a land tax reassessment notice it's important to review and ensure that the new value of your land was correctly used to calculate its taxable value.

Want to read more about land tax calculations read our helpful conveyancing guides: Conveyancing Resources

Find the most recommended premium Conveyancing Lawyers near you in the Brisbane CBD

If you have any further questions or concerns about revaluation or reassessment of land tax, please don't hesitate to ask River City Conveyancing we’re here to help you with all aspects of your conveyance in Queensland.

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