By John Mikkelsen
Who’d have thought tax could potentially be an issue for the Sex Discrimination Commissioner or an example of women’s rights breaking an acceptable nexus between male and female?
I know many politicians and bureaucrats struggle to define what “female” actually means these days and some states only require a tick on an application form to officially change one’s gender regardless of biological block and tackle … but what could that possibly have to do with tax?
Well may you ask, but the question arose last week when I received a letter in the mail from the Queensland Treasury’s Revenue Department, informing me that following the latest unimproved land valuation on our coastal property, I could now be liable for land tax as of June 30 2025. Even if it was my principal place of residence I would have to register and submit a formal application to verify this within a relatively short time or I might be assessed on my half of the property’s value.
Wind the clock back a couple of weeks and my wife received a letter from the same department also informing her that her share of the property had exceeded the lower limit for land tax but she was exempted and didn’t have to take any further action … What the —?
To provide some historical context, my wife and I have jointly owned a number of investment properties in the past, these were all subject to capital gains tax based on 50 percent of the profits and they were all sold before we moved to the beautiful Sunshine Coast 12 years ago.
We have lived here in our jointly owned home since then and have never rented the property out or used it for business purposes.
Land tax had never been on my radar so my first thought was that this could be some extra money making scheme introduced by a Labor State Government – Wayne Goss, Peter Beattie, Anna Bligh or Anastacia Palaszczuk … nope, a quick search showed it was actually introduced way back in 1915.
And what a money spinner it is proving to be in modern times with rapidly increasing land values and a scale of non-indexed tax rates that kick in at a relatively low level of $600,000 and rise rapidly after that. Judge for yourself from this table provided by the Queensland Revenue Office https://qro.qld.gov.au/land-tax/calculate/individual/
| Total taxable value | Rate of tax |
| $0–$599,999 | $0 |
| $600,000–$999,999 | $500 plus 1 cent for each $1 more than $600,000 |
| $1,000,000–$2,999,999 | $4,500 plus 1.65 cents for each $1 more than $1,000,000 |
| $3,000,000–$4,999,999 | $37,500 plus 1.25 cents for each $1 more than $3,000,000 |
| $5,000,000–$9,999,999 | $62,500 plus 1.75 cents for each $1 more than $5,000,000 |
| $10,000,000 or more | $150,000 plus 2.25 cents for each $1 more than $10,000,000 |
Example 1: Total taxable value of $680,000
Tax band is $600,000–$999,999
Tax calculation = $500 + (1 cent × $80,000 excess)
= $500 + $800
Tax payable = $1,300
Example 2: Total taxable value of $6,400,000
Tax band is $5,000,000–$9,999,999
Tax calculation = $62,500 + (1.75 cents × $1,400,000 excess)
= $62,500 + $24,500
Tax payable = $87,000
Whew! All that is of course on top of council rates and separate water charges.
I think a majority of properties in our local government area would now be caught in the potential tax net, with numerous owners having to declare their status or pay up. Some house sales here in recent years have exceeded $30 million, so the land value would be well up in the list and many would include absentee owners.
The Real Estate Institute of Queensland (REIQ) is just one organisation aware of the widening web, issuing a media release last year which included the following:
https://www.reiq.com/resources/media-releases/time-to-wean-queensland-government-off-property-tax
Astonishing new data from the ABS has laid bare the Queensland Government’s bumper bounty from property tax revenue over FY23, all while the State endures a housing crisis.
The data, which excludes coal royalties, shows stamp duty now accounts for 25 percent of the tax base for the State Government compared to 20 percent ten years ago.
Additionally, property taxes (stamp duty and land tax) have risen by 133 percent (more than doubled) over the past ten years, equating to an additional $4.2 billion per year.
REIQ CEO Antonia Mercorella said given the steep upshoot in property values in the Sunshine State, it was time to reset reasonable parameters of property tax.
“Over the past five years, Queensland has recorded the highest growth in property taxes of any state,” Ms Mercorella said.
“Even with Victoria increasing taxes on property such as windfall gains tax in that period, Queensland is still taking the cake for escalating tax take.
“Despite record revenue and announcements relating to housing, it’s insulting and ironic that very little is being reinvested back into building social housing – with only 56 completed last year, the lowest on record and the lowest of any state.”
Ms Mercorella said Queensland’s property taxes may target home buyers and property investors, but make no mistake, they have a flow on impact to everyone and the economy…
“While ongoing and escalating land tax costs are inevitably partially passed on to renters in order to ensure investments still stack up and remain sustainable.
“It’s clear our state’s antiquated property tax system is no longer fit for purpose, and this unhealthy addiction to new highs of property revenue must be tapered and kept in check.
“The REIQ continues to call for the indexation of land tax – the threshold has been set at $600,000 since 2007, so it’s well overdue to readjust the value at which land tax applies…”
All other states have similar land taxes, some (such as Victoria) may be worse, some better, with only the Northern Territory being exempt.
Meanwhile I have filled out and submitted the required form online declaring my main residence status, so hopefully I will enjoy the same exemption as my wife. But the reason for the contrasting treatment remains a mystery which only someone with the bureaucratic skill of Yes Minister’s Sir Humphrey Appleby could explain. But I won’t be ticking any sex change form any time soon.
John Mikkelsen is a former editor of three Queensland regional newspapers, columnist, freelance writer and author of the Amazon Books Memoir, Don’t Call Me Nev.
(https://www.amazon.com.au/Dont-Call-Nev-John-Mikkelsen/dp/B09S244GP1/ref=tmm_pap_swatch_0?
