On 11 June 2024, the Queensland Treasurer delivered the 2024-2025 Queensland Budget (the Budget), and introduced the Revenue and Other Legislation Amendment Bill 2024 (QLD) (the Bill) to the Queensland Legislative Assembly. The Bill will effect a number of revenue measures announced in the Budget, which we have summarised in this alert.

  • A key measure in the Bill which was announced in the leadup to the Budget was an extension of the existing first home buyer duty concessions, including:
    • an increase in the eligibility threshold for the ‘first home concession’ from $550,000 to $800,000 (with the value from which the benefit of the concession will gradually reduce being similarly increased from $500,000 to $700,000); and
    • an increase in the eligibility threshold for the ‘first home vacant land concession’ from $400,000 to $500,000 (with the value from which the benefit of the concession will gradually reduce being similarly increased from $250,000 to $350,000).
  • In order to offset the revenue cost arising from extending the first home buyer duty concessions, the Bill will also effect an increase to Queensland’s foreign surcharge rates, including:
    • an increase to the rate of the ‘land tax foreign surcharge’ applied to foreign persons, foreign companies and the trustees of foreign trusts who hold land located in Queensland from 2% to 3% from the 2024-2025 land tax year. For reference, the equivalent surcharge rate in NSW and Victoria is 4%; and
    • an increase to the rate of the ‘additional foreign acquirer duty’ applied to foreign persons, foreign companies and the trustees of foreign trusts which acquire direct or indirect interests in residential land located in Queensland (including through acquisitions in landholders and corporate trustees) from 7% to 8% from 1 July 2024. For reference, this is now in line with the equivalent surcharge rate in NSW and Victoria.
  • The Bill will also implement payroll tax measures announced in the lead up to the Budget, including:
    • an extension of the 50% payroll tax rebate for wages paid to apprentices and trainees until 30 June 2025; and
    • restricting access to the 1% discount on the payroll tax rate for regional employers to businesses with Queensland taxable wages of $350 million per year or less.