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16 August 2017
Property Developments
Absentee Land Tax Surcharge in Queensland
The Queensland Government has amended the Land
Tax Act 2010 (Qld) (Act) to impose a 1.5% land tax
surcharge on absentee land owners (Absentee
Surcharge).
The Absentee Surcharge is expected to yield an extra
$20 million for Queensland in 2017-2018, and follows
similar initiatives from New South Wales and Victoria.
What is the Absentee Surcharge?
Absentees are liable for land tax if the total taxable
value of freehold land owned in Queensland at 30 June
is equal to or greater than $350,000.
If Absentees are liable for land tax, they will be
charged:
 land tax at the same rate as a company or trust
(which was always the case) – this rate has a
lower starting threshold and higher rate of taxation
than on resident individual owners; and
 the Absentee Surcharge in addition to their land
tax assessment.
Who is an Absentee?
An ‘Absentee’ is a person who does not ordinarily
reside in Australia.
The Office of State Revenue (OSR) will consider
several factors to determine if a person who has lived
outside of Australia during the financial year ordinarily
resides in Australia. These include:
 the reason for the absence; and
 the time spent in and out of Australia.
If OSR is not satisfied that the personal mainly resided
in Australia, the person will be an ‘Absentee’ if they:
 were away from Australia at 30 June; or
 had been away from Australia for more than 6
months in total during the financial year before 30
June.
There are limited exclusions to the above position.
These include a public officer of the Commonwealth or
of a State who is absent in the performance of their
duties.
State Comparison
There are clear differences with respect to land tax
surcharges across the Eastern Coast of Australia:
 Queensland – 1.5% absentee land tax surcharge
from 1 July 2017;
 New South Wales – 2% absentee land tax
surcharge from 1 July 2017 (increased from
0.75%); and
 Victoria – 1.5% absentee land tax surcharge from
1 July 2016 (increased from 0.5%).
Further information
If you would like advice on the Absentee Surcharge,
please feel free to contact us.
*Disclaimer
The information contained in this update is intended as a guide only.
Professional advice should be sought before applying any of the
information to particular circumstances. While every reasonable care
has been taken in the preparation of this update, MinterEllison does
not accept liability for any errors it may contain.