Australia: Tax measures in 2025 budget (Queensland)
Queensland's 2025 budget introduces tax measures including streamlined ex gratia relief and a windfall tax.
The Queensland State Treasurer on June 24, 2025, delivered the state budget for the newly elected government. Tax proposals include:
Streamlining ex gratia relief for foreign surcharges
The budget introduces administrative improvements to streamline the ex gratia relief process for the additional foreign acquirer duty (AFAD) and foreign land tax surcharge. Unlike New South Wales and Victoria, Queensland relies on an ex gratia process that can involve lengthy engagement with the Queensland Revenue Office policy team. The government aims to work with the Property Consultative Committee to enhance certainty and timeliness in this process. Details are expected to be finalized by the end of 2025.
“Revenue protection” measures and windfall tax
While the constitutionality of surcharges for stamp duty and land tax is debated in an ongoing High Court case, the “Revenue and Other Legislation Amendment Bill 2025” introduces a “windfall tax” as a revenue protection measure. This tax is designed to counteract any entitlements taxpayers may have if the surcharges are deemed constitutionally invalid prior to the introduction of the amending legislation on April 8, 2024. The windfall tax applies only as an alternative to the foreign surcharge and is not imposed on taxpayers who accept the foreign surcharge. The legality of this amending bill may be subject to future court hearings depending on the High Court’s decision.
Other revenue measures
The budget also outlines:
- A transfer duty exemption for certain eligible first home buyers of newly built homes or vacant land to build a new home
- A payroll tax exemption for payments to general practitioners
- An extension of the 50% payroll tax rebate for apprentices and trainees until June 30, 2025
- A shared equity scheme for home buyers, currently limited to 1,000 home buyers
For more information, contact a KPMG tax professional in Australia:
Dorian Beaver | dorianbeaver@kpmg.com.au
Alex Pringle | apringle2@kpmg.com.au
Bella Hammond | bhammond2@kpmg.com.au