There must be a “nexus” between a state and a thing which it seeks to tax. This is one reason property taxes are so prevalent – it is easy to establish the nexus between a state and the land within its borders.

The Queensland government has recently amended that state’s land tax laws, with new rules applying from July 1 next year. The new rules do not impose tax on land in another state. However, in a first for any state, the land tax will be calculated using a formula which takes into account the value of “relevant interstate land”.