Massive Land Tax & Absentee Surcharge increases year on year will destroy those absentees holding properties in QLD. CHECK MY PREDICTION CALCULATIONS:

Using my situation as an example - starting with an estimated Land value of $400,000 in 2015-2016, Land valuations have increased the Lot value by $50,000 to $60,000 per subsequent year. (Land Tax is calculated at the average of the current and last two years of land valuations then divided by three to calculate the average).

Land valuations are determined by the Department of Natural Resources and Mines (DNRM, www.qld.gov.au/landvaluations)

For 2016-2017 Financial Year THE Land tax & Absentee Surcharge totals $4863.30 (I bought Jan 2017 - 4 months before the shocking Budget announcement)

OF NOTE: Before continuing here, two recent appraisals of the property this year September 2018 revealed that despite the Land Value increases - the overall property value itself if put on the market would only have increased $35,000 above what it sold for (despite already outlaying $130,000 in set-up & purchase costs over and above the purchase price) - of which is subjected to CGT (and if a non-resident there is NO CGT discount either).  Let's also realise the costs involved in selling a property are also large.  As agents explained, the declared government land value increases will not necessarily mean your property will have appreciated in value on the market and definitely not in line with the inflated land value rates the government sets.

Using a prediction of further increases of land value based on last three years and uptrend in market, I set the land value increase per year at $60,000. I have calculated up until the 2025 Financial year ending.

As you can see in the table - each year the total taxes owing increase dramatically up until 2025 - just a mere 7 years away.

From having a liability of $4863.30 for 2017-2018 FYE, it will increase up to $16,170.00 for 2024-2025 FYE. Again, be mindful that the given land valuation will definitely not reflect the true market sale price that one will be able to achieve.  So, even at this stage, to sell the property will result in a financial loss.


What the HELL? How on Earth can anybody afford to keep paying this? Over $16,000 bill?  The bills beforehand would have already wiped out the rental income long ago.  You effectively become a complete slave to the QLD government.

For an investor like myself, as self funded medically retired from early Super payout, relying solely on that property's rental income to live off, it becomes totally and utterly unsustainable. TOTALLY.  Rent will not cover the taxes.

Considering all other outgoing costs required to hold an investment property plus income tax, I am left with a property that annihilates all net rental income and will leave me out of pocket to pay the difference.

Capital Gains are eaten up by the taxes and forcing my hand to sell the property early because I cannot live off zero dollars. This will incur a combined loss (capital loss, set up cost losses, renovation cost losses, further costs to fix property before sale, legal fees, agent's commission to sell and Capital Gains Tax) of approximately $120,000 if I were to sell right now.

Holding the property each year becomes impossible though, forcing my hand to sell at a loss. The Queensland Labor Government are doing this to its own Australian citizens - Not just foreign investors.

The option is to stay in Australia like a prisoner for 6 months of a year, but on a self-funded retiree income stream that becomes unsustainable as well due to the high living costs as well.  It has become a terrible Catch-22 scenario.

Queenslanders beware - you voted this government in and look what they have done and are doing to you and to your fellow Australians. What the HELL has happened with this country. What the HELL has happened to Queensland? Is this what you want? I don't think so. Communism isn't what I asked for.

These taxes are set to DESTROY all absentees who cannot work, who are retired, medically disabled, low income earners. This is a totally and utterly EVIL and UNETHICAL set of taxes that causes such a severe impact that it is unconstitutional and surely a breach of Human Rights - economic devastation imposed by the government.