Queensland state budget summary 2024 – 25

The Queensland Treasurer announced its 2024-25 state budget on 11 June 2024 ahead of the State Government election later this year. While there is significant investment in infrastructure, energy and housing, there are a number of ‘pre-election sweetners’. This article summarises the key tax and other measures expected to be relevant to Forvis Mazars Queensland clients.

Additional taxes to be collected from foreign buyers

Additional foreign acquirer duty (AFAD) rate to rise

AFAD generally applies where a foreign person (including Australian companies and trusts owned by foreign persons) acquires residential property in Queensland. AFAD applies in addition to any duty payable.

The rate of AFAD will increase from 7% to 8% as from 1 July 2024.   This aligns the rate of additional duty on foreign purchases of residential land with that of New South Wales and Victoria.

Land tax surcharge 

A land tax surcharge applies to absentee persons, foreign companies and trustees of foreign trusts that hold land in Queensland. The surcharge rate will increase from 2% to 3% from 30 June 2024.   

The surcharge is payable in addition to the standard land tax (i.e., up to 2.75% for companies/trustees), resulting in a potential 5.75% annual tax on the value of land.

Impacted taxpayers should consider whether they are eligible for ex-gratia relief from the land tax surcharge. This may apply where a taxpayer can demonstrate a significant contribution to the Queensland economy.

First home duty concession

First home buyers are beneficiaries in this budget with a significant extension in the threshold to which duty applies. The value of homes eligible for the concession, rises from $550,000 to $800,000.

A full duty exemption will apply for homes valued up to $700,000 and a partial concession for homes valued between $700,000 and $800,000.

First home vacant land duty concession

There is a further extension in the duty concessions for first home buyers acquiring vacant land.  The threshold of eligible vacant land increases from $400,000 to $ 500,000. A full duty exemption will apply for land valued up to $ 350,000, and a partial concession for land valued between $350,000 and $500,000. 

Payroll tax—apprentices and trainees 

The 50% payroll tax rebate for wages paid to apprentices and trainees will be extended for a further 12 months through to 30 June 2025. 

Payroll tax—regional discount 

The regional discount eligibility criteria will be amended as from 1 July 2024 to exclude businesses that are headquartered in regional Queensland and pay taxable wages of more than $350 million on an annual basis.

Measures affecting individuals

• Car registration will be reduced by 20% for 12 months.
• All Queensland households will receive a State $1,000 cost of living rebate (in addition to the $300 being paid Federally)
• A flat rate of public transport fares of 50 cents per trip will be applied for 6 months across the State’s Translink public transport network.

This article provides general information only based on announced (and not enacted) measures proposed in the Queensland State Budget. For further information, please review the Queensland Budget website.