But I’ve never paid Land Tax!
If you have never paid Land Tax, you are not going to enjoy your first Land Tax bill! It’s understandable that you might not pay much attention to Land Tax – until you receive the first bill. However, if you own real estate other than the property you live in, you may have to pay Land Tax in the future.
You may become liable to pay Land Tax for the first time where the value of your existing properties increase, or you buy another property, or you receive property from a family members estate when they pass away.
It would not be any surprise if the Queensland Government increased its reliance on Land Tax in the future – by lowering thresholds or increasing the tax rates.
Capital Gains Tax v Land Tax
You only pay Capital Gains Tax once – to the Commonwealth Government – when you sell a property for a profit.
Land Tax is paid every year – to the Queensland Government – where the total value of your properties reaches the threshold. Once this situation arises, to avoid this tax, you have to sell one or more of your properties until the total value of your properties falls below the threshold.
The flippant comment is that the Commonwealth Government charges you a tax when you cease to be the property owner; and the Queensland Government charges you a tax if you remain the property owner.