Based on feedback from our members, and in consultation with our Queensland State Taxes Committee, The Tax Institute writes to you in relation to the Government’s intention to remove the upcoming changes to Queensland’s land tax regime concerning interstate landholders. Broadly, these changes will determine a taxpayer’s liability to land tax in Queensland based on the total value of their land holdings across Australia.
We urge Government to provide a definitive view regarding their intention to annul the proposed changes. If the proposed measure is not intended to take effect, we recommend that the Government undertake the following steps as a matter of urgency:
- repeal the enacting legislation before the commencement date of 1 January 2023; and
- ensure that the Queensland Revenue Office (QRO) is sufficiently resourced and supported to make any necessary changes to IT systems and administrative practices to give effect to the legislative repeal.
If Government intends to annul the measure and these steps are not undertaken, there is a significant risk that impacted taxpayers will nonetheless become liable to land tax under the requirements of the measure. We do not consider this to be an equitable or appropriate outcome.