Thursday 16 May 2019

A $1 billion hit to the Queensland budget as property market slides

A $1 billion hit to the Queensland budget as property market slides

A $1 billion hit to the Queensland budget as property market slides

Capricious and unconscionable outcomes for property owners in Victoria being slugged with massive Land Tax.

Capricious and unconscionable outcomes for property owners in Victoria being slugged with massive Land Tax.
This article reveals just how punitive the taxes are. And QLD of course is even worse as we know targetting Aussies with an Absentee Surcharge on top.

Capricious and unconscionable outcomes for property owners in Victoria being slugged with massive Land Tax.

Labor's economic failure puts Queensland to shame

Article revealing that Queensland is now 6th place in the State of States report released by Commsec. Opposition treasurer Tim Mander is scathing against Palaszczuk. Let's hope that she loses the next election and the Absentee Surcharge is scrapped and Queensland is put back on track.

Labor's economic failure puts Queensland to shame

Another real-life example of how a medical condition overseas could deem you an absentee

This is similar to what had occurred to me - this woman has been left stranded in Thailand after falling ill and unable to return to her country due to a 'not fit to fly' certification.

If she was an owner of a Queensland property then she could be facing an absentee surcharge and Land tax. As I was informed by Queensland Office of State Revenue, there is no exemption for medical conditions.

Seriously ill Scots Instagram model Rebekah Fulton remains stranded in Thailand over ‘fitness to fly’ certificate

$12.8 million tax driving investors to ditch Queensland homes

Here is the great report published by Brisbane Times Reporter Felicity Caldwell on 13 April, 2019.

Report reveals the $12 million tax grab taken from Queensland 'Absentees'

The Australian Property Council as well as Shadow Treasurer Timothy Mander express their harsh and justified criticism of this terribly unfair Labor tax.

Thanks to Craig Smith and Greg Fogarty for your contributions to the report.

$12.8 million tax driving investors to ditch Queensland homes

With shadow Treasurer Tim Mander criticising the Absentee Surcharge, I believe that this could pave the way to seeing it scrapped for Australian citizens should Queensland Liberal Party be re-elected.

Uncertainty continues - how the 6-month absence period is calculated - despite referring to "Reckoning of Time' interpretation.


QLD Labor gvt Jackie Trad treasurer treasury State revenue Land Tax


The Queensland Office of State Revenue have provided an explanation as to how they calculate the 6-month absentee period:

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"Reckoning of time for absentee status

I note your questions in relation to the calculation of days in and outside of Australia for the purpose of assessing whether a person has been outside of Australia for more than 6 months, and therefore may be considered to be an absentee for land tax purposes.

Whether a person has been outside of Australia for 6 months is calculated on the number of days they have been absent from Australia. The number of days absent is calculated on the basis that their date of departure is excluded, and their date of return is included.

This is consistent with s.38(1) of the Acts Interpretation Act 1954 (Old), which provides guidance on how to calculate times set out in Queensland legislation.

Please note however, that the calculation of time alone is not sufficient to determine whether a person is an absentee. We will consider all relevant circumstances to determine whether a person ordinarily resides in Australia at the relevant 30 June".
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I understand that OSR consider a number of factors. But, if the clinching determining factor by OSR came down to whether or not you were away for 6 months or more, it is important for us to know exactly how the 6 months period is calculated. OSR referred me to the Acts Interpretation Act and explained absence was calculated on number of days away.

Unfortunately, Section 38 does not provide sufficient clarification as to how the 6 month absence period would exactly be calculated.

One cannot assume that 183 days (half of 365 rounded to next number) would be exact. Each calendar month can vary in number of days, as well as February leap/non-leap years.

As we know, the Queensland Land Tax Act only specifies being absent for half a year, so the OSR's explanation does not assist much further. It shows yet again an area of ambiguity and open for individual interpretations.

I would suggest that for those who wish to return before the 6 month period is considered, they come back sufficiently earlier to have a buffer of several days/weeks.

Absentee Surcharge taxes determined on past and well as future travel behaviours and intentions

Labor government QLD Jackie Trad treasurer

The ambiguity of the Land Tax Act in respect to determining Absentee status has been acknowledged by the Queensland Office of State Revenue from a response to a complaint I submitted. Letter dated 13 May 2019.

Their justification is because, "While these provisions may seem ambiguous, specific criteria would not provide flexibility to fairly consider the wide variety of circumstances that may exist in a particular case".

The OSR explains how it determines status:
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"The absentee provisions contain a series of considerations in determining whether someone is an absentee for land tax purposes. In the first instance, OSR considers whether a person ordinarily resides in Australia. This is the consideration set out in s.31(1) above. There is a wide range of information that may be taken into consideration in determining this, but the question can involve some degree of judgement based on the information available. Some types of information we consider include, but are not limited to:

• where a person states is their residential address, and how long they have lived at that location
• the location of a person's employment and the proximity of that employment to their residence
• which address a person uses to receive correspondence, and
• which type/s of visas have been held or applied for by the person both in a foreign country or Australia, as may be relevant.

If, after considering the relevant facts and circumstances, we can be satisfied the person ordinarily resides in Australia, then the person will not be considered an absentee.

If a person cannot provide sufficient information to satisfy us they ordinarily reside in Australia, then we consider the requirements in s.31(2) of the LTA i.e. where a the person was on 30 June of the relevant year or if they have been absent for more than 6 months in the year preceding.

Both of these considerations may assist us in forming a view on whether a person ordinarily resides in Australia.

In considering where a person ordinarily resides, a one-off short-term absence for a holiday would not negate the fact a person ordinarily resides in a home in Australia when their regular employment, social and/or family activities are conducted in Australia. If a person is absent from Australia for a more extended period, or there are multiple short-term absences across one or several years, a full consideration of the facts and circumstances may indicate that they are not ordinarily residing in Australia".
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This reveals how confusing the legislation can be and how difficult it is for people to avoid becoming an Absentee.
Being in Australia for more than 6 months per year is not sufficient in itself, as is being in Australia on 30 June.

Multiple short term holidays away may well also cause the OSR to determine you are not ordinarily residing in Australia.

It also has been conveyed to me that that also extends to your past travel behaviour, that will apply to future financial years. Your future plans can also be taken into account by OSR.

It is a reverse onus of proof upon you to prove you are not an Absentee as opposed to OSR proving you are.

A $1 billion hit to the Queensland budget as property market slides

A $1 billion hit to the Queensland budget as property market slides A $1 billion hit to the Queensland budget as property market slides