Queensland land tax surcharge for foreign owners: absentees, foreign companies and foreign trusts

Who is caught

QRO describes three kinds of owner.

• Absentee individuals. You are an absentee if you are a foreign individual (QRO includes New Zealand citizens), you do not hold a permanent visa, and you do not usually live in Australia. Australian citizens and permanent visa holders are not absentees.
• Foreign companies. A company is foreign if it is incorporated outside Australia, or if foreign persons, or their related persons, have a controlling interest of at least 50%.
• Trustees of foreign trusts. A trust is foreign if at least 50% of the trust interests are held by individuals who are not Australian citizens or permanent residents, by foreign companies, by trustees of foreign trusts, or by related persons of any of those. Your interest as a beneficiary is the percentage of the value of your entitlement, and QRO says special rules apply to discretionary trusts, including how takers in default are treated. The trusts guide compares the states.

For individuals, QRO's test for living in Australia is whether you can satisfy the Commissioner that you ordinarily reside here. QRO says you will be an absentee if you cannot, and either you were away from Australia on 30 June or you were away for more than 6 months in total during the financial year before 30 June. It looks at factors such as the reason for your absence and the time spent in and out of the country.

The rate and threshold

Absentees and foreign companies and trusts become liable for land tax when total taxable value is $350,000 or more, compared with $600,000 for individuals who are citizens, permanent visa holders or people who usually live in Australia. Taxable value comes from the annual valuation issued by the Valuer-General, and includes your share of jointly owned land.

The base rates for absentees and for foreign companies and trusts are the same up to $5,000,000:

Above $5,000,000 the two tables diverge: for absentee individuals it is $75,000 plus 2.0 cents per $1 over $5,000,000, with a further band from $10,000,000; for foreign companies and trusts it is $75,000 plus 2.25 cents per $1, with a further band from $10,000,000. QRO's calculating pages give the exact bands.

The 3% surcharge is then calculated as (taxable value - $350,000) x 3%.

Worked example. A foreign company owns Queensland land with a taxable value of $1,000,000.

1. Base land tax: $1,450 + 1.7 cents x ($1,000,000 - $350,000) = $1,450 + $11,050 = $12,500.
2. Surcharge: 3% x ($1,000,000 - $350,000) = 3% x $650,000 = $19,500.
3. Total: $12,500 + $19,500 = $32,000.

For comparison, QRO's individual table for an owner with the same $1,000,000 taxable value, who is an Australian citizen, a permanent visa holder or someone who usually lives here, shows $4,500. QRO's own example for a $400,000 holding is $2,300 plus $1,500 surcharge, so $3,800.

QRO's current pages state 3%. If you need an earlier year, the office keeps a previous rates reference.

What QRO assesses and how

QRO's assessment notice shows the surcharge in the land tax summary section, and it can also appear on reassessment notices. Liability is based on the land you owned at midnight on 30 June.

If your total taxable value is more than $350,000 and you move overseas, you must tell QRO within 1 month of the date you move, by completing the absentee/resident status declaration (Form LT16). The same form is used when your status changes, for example if you become an Australian citizen or permanent visa holder, or you start living in Australia after living overseas. QRO says interest and penalties may apply if you do not report a change.

There are limited cases where individual rates continue for foreign individuals working overseas. One is a public officer of the Commonwealth or a state who is away performing their duties. The other is someone who worked for their Australian employer for at least 1 continuous year before going overseas and is directed to keep working for that employer overseas for less than 5 years. Form LT16 is used for both, with employment contracts attached.

Exemptions and relief

There is no general exemption for individuals who are absentees, and QRO states they cannot claim the home or primary production exemptions.

For foreign companies and trustees of foreign trusts, QRO distinguishes by date. For land tax liabilities arising on or after 30 June 2026, an exemption from the foreign surcharge may apply to foreign entities that carry on commercial activities making a significant contribution to the Queensland economy and community, or that are large developers of residential property. For liabilities before 30 June 2026, QRO considered ex gratia relief for significant contributors.

Several conditions apply. QRO says an entity that essentially holds land passively, such as a landlord or property investor, is generally not treated as making a significant contribution. The large developer exemption lasts only while development activities are carried on. The exemption covers the surcharge component only, and land tax continues to apply. Applications use Form LT30 (large developers) or Form LT31 (significant contributors) and are emailed to LTFSrelief@treasury.qld.gov.au. QRO gives target processing times of 30 working days for pre-approval and 60 working days for exemption approval from the date it has all the information it needs. An approved entity must also give a yearly statutory declaration and report notifiable events within 28 days.

A build-to-rent concession can reduce the taxable value of land used for the foreign surcharge, and QRO's page mentions it for the 2024-25 assessment year.

Frequently asked questions

firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.