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Learn About Tax Liabilities on Land

Potential Buyers Should Learn About Tax Liabilities on Land for Sale

Brisbane offers plenty of opportunities for a prospective land buyer. The population in Queensland maintains a steady upward trajectory, which means potential money making ventures for a property owner. This metropolitan city offers many good reasons to invest whether you’re in the market for commercial land for sale or some lots that you hope to build a few rentals on.

Before signing the ownership papers, however, there is one element that every buyer must factor in – land ownership taxes. At what point exactly are you expected to pay yearly taxes?

Liability of Land Tax

Australia calculates liability of tax based on the taxable value of a freehold land at midnight on the 30th of June. The amount of tax that applies in your case will depend on the kind of landowner you are.

The government is clear about who it considers an ‘owner’. An individual with a legal entitlement, a privilege to rents and profits from the land or is otherwise taken to be the owner is eligible for land tax. A Brisbane property owner can pay taxes as an individual, absentee, trustee or company.

Type of Ownership

When considering land for sale in Brisbane, know where you fall into the four categories. Individual refers to a person who lives in Australia and threshold for the total taxable value is $600,000. It means that if on the midnight, of June 30th, the value of all the land you own as an individual hits the $600,000 mark, then you must pay tax.

An absentee landowner is one who doesn’t reside in the country or an external territory. For example, if you relocated to another region but still want to own land in Brisbane, then you qualify for the absentee tax liability whose threshold is $350,000. Overseas workers may continue paying taxes as individuals but only upon certain conditions. Get information on your absentee status when buying land.

If a corporation owns the land, then the total taxable tax is $350,000. The same threshold applies if you own the property as a trustee. Note that it is possible for one person to own land as different entities at one time.


Another tax element to think about when planning to get land in Brisbane is the exemption. Tax waivers allow you to pay fewer taxes on your parcel of land, hence the need to know which ones apply to your situation. For instance, individual and trustee owners can get home exemptions if they utilise the land as their homes.

Learning about tax liabilities will help you become a more effective land owner. Before you invest in any property, make sure that you take this in account.

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