Queensland introduced the Additional Foreign Acquirer Duty (AFAD) in 2016 and the Foreign Land Tax Surcharge (FLTS) in 2019 to curb speculative foreign acquisitions. While these measures were designed to protect local buyers, they inadvertently captured Australian developers using international funding, creating a prohibitive tax environment that delayed projects and discouraged investment.

Since 2016, twelve new or increased property taxes have been introduced, impacting Queensland’s competitiveness. The latest reforms aim to address these issues by reducing compliance barriers, clarifying eligibility criteria, and introducing faster approval processes, signalling a shift towards a more investment-friendly framework.

Key changes announced

Dwelling threshold reduced

One of the most significant changes is the reduction of the dwelling threshold for relief eligibility from 50 dwellings to 20 dwellings. Previously, only large-scale residential projects could access AFAD and FLTS relief, leaving mid-sized developments exposed to additional costs.

By lowering the threshold, the government has opened the door for smaller projects, such as townhouse complexes and boutique apartment developments, to qualify for relief. This change is expected to stimulate housing supply and encourage more diverse development across Queensland.

Pre-approval process

The introduction of a pre-approval process marks a major improvement in how relief is administered. Under the old system, developers could only apply for relief after acquiring land, creating uncertainty and financial risk. The new process allows developers to secure approval before acquisition, giving them confidence to proceed with transactions and improving access to finance. This proactive approach reduces risk and supports better project planning.

Published service standards

To complement the pre-approval process, the Queensland Revenue Office (QRO) has introduced published service standards for processing applications. Frequent applicants and renewals will be processed within 30 working days, while new applicants will receive decisions within 60 working days. These timelines provide transparency and predictability, addressing long-standing concerns about delays and improving investor confidence.

Broader recognition of group entities

The reforms also broaden eligibility by recognising the activity of the relevant corporate group of which the entity is a group entity in determining if the entity has made a significant contribution or is a significant contributor. Many projects involve joint ventures or complex corporate arrangements, and under the new rules, these structures will be considered when determining if the exemption criteria is satisfied.

Five year averaged significant contributor test

For landholders seeking relief from the FLTS, a new five-year averaged significant contributor test has been introduced. This test ensures that entities demonstrating sustained economic contribution to Queensland can access relief, rewarding long-term investment rather than short-term activity. It encourages stability and ongoing engagement with the state’s economy.

Under this administrative arrangement, a significant contribution means that an entity (or relevant corporate group) has:

• Current commercial activities, or committed future commercial activities over a 12-month period from the liability date, at the requisite contribution level or
• Commercial activities approved by the Commissioner.

In this context, requisite contribution level means employing 75 or more full-time equivalent employees in Queensland (excluding labour hire or contractors) or incurring expenditure in Queensland of more than $20 million annually (comprising Queensland payroll tax and land tax liabilities, Queensland goods and services and wages paid to Queensland residents).

In relation to commercial activities approved by the Commissioner, the Commissioner will have regard to:

• the commercial activity in the context of population size, demographics, and industry maturity in the area
• the nature of the area and/or industry
• the contribution the activity makes to the area and/or industry (for example, whether the entity is a major employer in the area or whether the industry would exist without the presence of the entity) and
• any other relevant factors.

Clearer criteria and transitional arrangements

Finally, the reforms provide clearer eligibility criteria and transitional arrangements for entities already receiving relief. This removes ambiguity and ensures continuity for ongoing projects, reducing compliance risk and supporting developers during the transition to the new framework.

Rulings

To implement these reforms, the QRO has issued the following updated rulings:

• Public Ruling GEN012.1 Administrative arrangement—exemption from AFAD and land tax foreign surcharge for residential land developers
• Public Ruling LTA000.6.1 Administrative arrangement—exemption from land tax foreign surcharge for landholders undertaking commercial activities that make a significant contribution
• Public Ruling DA000.15.5 Additional foreign acquirer duty—ex gratia for significant development for liabilities arising before 15 December 2025
• Public Ruling LTA000.4.4 Guidelines for ex gratia relief from the land tax foreign surcharge for liabilities arising before 30 June 2026

How SW can help

Navigating these new rules can be complex, especially with multiple rulings and transitional arrangements.

We assist developers and investors by:

• Providing tailored advice on eligibility under the new AFAD and FLTS relief framework.
• Preparing and lodging pre-approval applications with QRO to secure relief before acquisition.
• Structuring projects and ownership arrangements to maximise compliance and minimise tax exposure.

Contributors

Robert Parker – Consulting Director, Tax

Blake Trad – Consultant, Tax

The post QLD Foreign Tax Reforms: Merry Xmas for Queensland Developers appeared first on SW Accountants & Advisors.

This guide provides a clear, side-by-side comparison of BTR definitions, tax concessions, and access requirements across all Australian jurisdictions. If you’re planning a BTR project or need help navigating the rules, get in touch with our property tax experts for tailored advice and strategic support.

How can SW help?

We have helped clients navigate the complexities of the BTR scheme and determine their eligibility requirements. As specialists in property funds and property development, we provide strategic tax advice to support the success of your project.

The post Build to Rent | State Taxes comparison appeared first on SW Accountants & Advisors.

Revenue measures announced as part of the 2022–23 Queensland Budget, include:

• a mental health levy on payroll taxes above $10m
• extension of payroll tax deduction for small and medium Queensland businesses with the deduction being extended from the current ceiling of $6.5m in annual Australian taxable wages up to $10.4m
• 50% payroll tax rebate for apprentices and trainees will be extended for a further 12 months to 30 June 2023, and
• foreign acquisition duty relief for foreign buyers who are retirement visa holders when purchasing their principal place of residence on or after 1 January 2023.

Mental health levy

A mental health levy will be introduced which will apply to payroll tax liabilities arising on or after 1 January 2023. This will be applied to large employers, or groups of employers, with annual Australian taxable wages over $10m, including an additional levy applied to taxable wages over $100m, providing funding for mental health services.

The mental health levy will be applied as follows:

• a 0.25% levy on the annual Australian taxable wages of employers, or groups of employers above $10m
• an additional 0.5% levy on the annual Australian taxable wages of employers, or groups of employers, above $100m.

The levy will only apply to the portion of the wages above the respective taxable wage amounts (i.e. on a marginal basis).

Payroll tax relief for small to medium employers

Payroll tax relief will be provided for small and medium businesses, by increasing the payroll tax deductions available to employers, or groups of employers, with annual Australian taxable wages of between $1.3m and $10.4m. These changes are proposed to apply to payroll tax liabilities arising on or after 1 January 2023.

Racing levy

A 5% racing levy will be applied to the betting tax rate and bonus or free bets will be incorporated into the calculation of betting tax for liabilities arising on or after 1 December 2022.

Progressive coal royalty rates

3 additional progressive coal royalty rates will apply. The new tiers will apply on that part of the average price per tonne of the coal sold, disposed of or used on or after 1 July 2022 as follows:

• 20% for prices exceeding $175 AUD,
• 30% for prices exceeding $225 AUD, and
• 40% for prices exceeding $300 AUD.

How can SW help?

Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

Jeremy Wicht

Vincent Shi

The post QLD State Budget Overview 2022/23 appeared first on SW Accountants & Advisors.

Key takeaways

• $14.8bn infrastructure spending in 2020-21 – largest annual commitment in over a decade
• Infrastructure focus on roads and rail with key links in South East QLD, Rockhampton and Cairns
• $1bn commitment to onshore manufacturing, refurbishment and maintenance of trains in Maryborough and Rockhampton, including 20 new trains
• Support for key industries of tourism, agriculture and mining
• Implementation of a savings and debt plan to deliver $3bn in savings over four years by the Government focussing on core tasks only
• $7bn Unite & Recover Package to safeguard health and protect jobs, including reducing business costs through payroll tax reductions and other tax relief measures, and accelerating projects
• Support for small business through concessional job support loans, Small Business Adaption Grants, Business Investment Funds and electricity bill relief.
• Gross State Product forecast to grow by just ¼% – unchanged from COVID-19 forecast economic impact.

Impacts to your business

• Queensland small business support to maintain jobs
• Commitments to upgrades to road and rail infrastructure
• Payroll tax relief as part of COVID-19 response.

Opportunities for growth and stability

• Continuation of popular small business grants programs
• QLD Government commitment to procure 25% of spend from small to medium business
• Continued commitment from the Government to ensure payment of small and medium business creditors on time
• #GoodToGo advertising campaign to stimulate domestic tourism including support for new Indigenous Tourism businesses

The QLD 2020/21 State Budget also has a range of initiatives to develop and support regional areas with a strong focus on Agribusiness.

Key takeaways

• $300m in grants to help flood-affected farmers rebuild
• $6.3bn in assistance and concessional loans to support industry through times of drought
• Introducing a mandatory Dairy Industry Code of Conduct between farmers and large processors, allowing ACCC to raise awareness of and monitor and enforce compliance with code of conduct
• $81.6m has been allocated over three years to reduce irrigation water charges for the state’s farmers and fruit and vegetable growing businesses
• Investment to enhance Agricultural export with a focus on supporting emerging export markets
• Investing in and further developing our Gold Standard in Agribusiness
• Farm biodiversity certification scheme and ongoing stewardship and biodiversity practices of the sector
• Further investment to support the delivery of the Beef Australia 2021 expo held in Rockhampton (Rocky Beef Expo)
• Focus on National Agricultural Workforce Strategy
• Focus on National Leadership for Agricultural Innovation.

Impacts to your business

• Australian businesses can access grant funding to help develop their export activities
• The A-HKFTA will ensure a tariff rate of zero on all Australian exports to Hong Kong
• Tariffs on imports from Hong Kong into Australia will be eliminated.

Opportunities for growth and stability

• Water infrastructure and security focus underpins agribusiness sector growth via increased attractiveness as a investment destination of choice
• Investment in regional hub infrastructure e.g. airports, rail and roads, will aid agribusiness export opportunities
• Investment in maintaining and enhancing Australia’s globally recognised gold standards in relation to agriculture stewardship and biodiversity practices
• Workforce development programs and increased Innovation Investment will drive greater workforce productivity and production efficiencies.

Did the Budget deliver what you ordered?

It has been an extraordinary year of upheaval as the nation grapples with the effects of COVID-19 and we recognise that everyone has been impacted in different ways. Reach out to our experts below for assistance navigating the implications and opportunities this Budget  presents for you, your business and your industry.

Get in touch

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