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QLD Budget 2018 – State Tax Changes

The Queensland State Budget was released on 12 June 2018.

There are a number of significant changes taking effect from 1 July 2018. If you have contracts for foreign buyers, you should ensure they are signed by 30 June as the AFAD is being increased from 3% to 7% from 1 July. The new AFAD rate will apply to contracts that are formed from options entered into pre 1 July 2018.

Changes Taking Effect 1 July 2018
Additional foreign acquirer duty increased

The government is increasing the rate of additional foreign acquirer duty (AFAD) from 3% to 7% on relevant transactions which involve a foreign person directly or indirectly acquiring certain Queensland residential land.

Land tax rate increase

From the 2018/19 financial year onwards, an increased land tax rate of 2.25% for resident individuals and 2.5% for companies, trustees and absentees will apply to an owner’s landholdings that exceed a taxable value of $10 million.

Premium motor vehicle duty

Motor vehicle registration duty payable on vehicles valued at more than $100,000 will increase by $2 per $100 of dutiable value from 1 July 2018. Heavy vehicles will not be liable for the increase.

Reduction of First Home Owners Grant (FHOG)

The FHOG will be reduced from $20,000 to $15,000 for new homes with a value of less than $750,000.

Changes Taking Effect 1 October 2018
Point of consumption betting tax

A 15% point of consumption betting tax will apply to all betting operators licenced in Australia, and will be imposed at a rate of 15% of net wagering revenue earned from bets placed by customers in Queensland. The betting tax will only apply to a betting operator’s revenue from Queensland bets revenue exceeding an annual threshold amount of $300,000 in a financial year. No tax will be paid on a betting operator’s revenue from Queensland bets up to and including $300,000 in a financial year.

Changes Taking Effect First Quarter 2019
Waste disposal levy

A waste disposal levy will commence in the first quarter of 2019 and will apply to 38 Queensland local government areas. The levy will be set at $70 per tonne for general waste, increasing by $5 per annum, and will apply to all general waste streams. The levy will be similar to those operating in other States.

This article was written by John Caravousanos, Partner.

John Caravousanos

P: +61 7 3169 4792

E: jcaravousanos@hwle.com.au

Important Disclaimer: The material contained in this publication is of a general nature only and is based on the law as of the date of publication. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this publication we recommend that you seek professional advice.