Australia: Tax measures in 2023-2024 budget (Queensland)
New details of the build to rent (BTR) concessions and exemptions
New details of the build to rent (BTR) concessions and exemptions
The 2023-2024 Queensland budget—delivered 13 June 2023—includes new details of the build to rent (BTR) concessions and exemptions.
The budget introduces from 1 July 2023 land tax concessions and additional foreign acquirer duty (AFAD) and foreign investor land tax surcharge exemptions for eligible BTR projects. The exemption from AFAD would be effective for all land transfers (or agreements to transfer) from 1 July 2023.
However, the land tax concessions and exemptions would only begin for eligible BTR developments from the 2024-2025 land tax year (i.e., land held as of midnight 30 June 2024 onwards).
These land tax measures would be available for BTR developments that become “operational” between 1 July 2023 and 30 June 2030, and would apply from the earlier of 20 years from the date the concessions first apply or until 30 June 2050. Therefore, operating BTR developments do not appear to benefit from these measures.
For current BTR developments under construction, taxpayers can continue to apply for ex-gratia relief from existing AFAD and foreign land tax surcharge. However, land tax would continue to be levied on these properties with no concessional relief until these BTR properties become operational.
Other budget measures include:
- Removal of requirement to apply for land tax home exemption
- Payroll tax amendments
- Extension of payroll tax regional rate discount
- Extension of payroll tax rebate for apprentice and trainee wages
- Amendment of the Taxation Administration Act 2001 (TAA), regarding the operation of the refund provisions
For more information, contact a KPMG tax professional in Australia:
Sarah Shaw | spshaw@kpmg.com.au
Primrose Mroczkowski | pmroczkowski@kpmg.com.au
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