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.
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