Land Tax is a tax payable to the Queensland Government and is calculated on land owned at midnight on the 30th of June each year.
Most Queenslanders are not liable for land tax because the value of their land is not high enough. Also, a family home is exempt from land tax. However, should you meet the relevant thresholds as you expand your portfolio, you will be liable to pay land tax.
You can find out if a Seller has a land tax liability by performing a “land tax clearance search”. The search will reveal the amount of land tax payable or if there is no land tax payable then the Queensland Government will issue a Clearance Certificate.
If you do not do the search and if the seller hasn’t paid their land tax liability on the property you’re buying, their debt may transfer to you. The Queensland Government cannot later recover unpaid land tax from a purchaser who obtains a Clearance Certificate which at the time said that no land tax was payable.