Land Tax and Other Legislation (Empty Homes Levy) Amendment Bill 2022

Overview

This bill proposed an Empty Homes Levy to tackle Queensland's housing crisis by taxing vacant residential properties and undeveloped land at 5% of their capital improved value each year. Modelled on Vancouver's empty homes tax, which reduced vacancies by 24%, it aimed to push an estimated 20,600 vacant homes back onto the rental market over four years. This was a private member's bill introduced by Dr Amy MacMahon MP (Member for South Brisbane). It was discharged and did not become law.

Who it affects

Property investors with vacant homes and undeveloped land would have faced a significant annual levy, while renters and first home buyers could have benefited from more properties becoming available and potentially lower prices.

Key changes

• 5% annual levy on residential land left vacant for more than 6 months, on top of existing land tax
• Levy based on capital improved value (expected sale price), not just land value
• Short-term letting such as Airbnb would not count as occupancy, pushing these properties toward long-term rentals
• Vacant undeveloped land suitable for housing also captured, targeting speculative land banking
• Eight exemption categories including active construction, recent ownership change, death of owner, move to aged care, primary production, and a general fairness discretion
• Property owners could apply to the Commissioner of State Revenue for exemptions after receiving an assessment notice