Rates hike fears as land values soar as much as 178 per cent

Land valuations have sky-rocketed across the state in a move that could push up council rates, with at least one area recording eye-watering jumps of 178 per cent.

• SEQ new land values revealed

Land valuations have sky-rocketed across the state in a move that could push up council rates, with land prices in some local government areas surging by more than 150 per cent.

The Valuer-General released 805,000 valuations on Friday for 24 councils, including Brisbane – where total land value jumped 11.9 per cent and the median residential value is now more than $600,000.

Ipswich land owners have seen the total value of their properties increase by a huge 33 per cent, while in Noosa it climbed 62 per cent, and in Logan went up 18 per cent.

Overall, there was a 19 per cent increase across all 24 local governments areas assessed by the Valuer-General – with the biggest rise recorded in Cloncurry in the northwest, with a 178 per cent jump.

Noosa land values have jumped 60 per cent.

Valuer-General Laura Dietrich warned that councils and the Queensland Revenue Office could use the new data when calculating rates or land tax bills.

Ongoing demand for property, a boost in confidence in the rural sector, and continuing interstate migration and investment are among the factors credited for the increasing values.

“Changed housing needs due to work-from-home have altered the urban property market and where people want to live,” Ms Dietrich said.

“Primary production land values in the western rural areas have also shown significant increases in land values since their last revaluation date.”

Asked about the effects of the revised valuations on land tax, a Queensland Treasury spokeswoman said the impact was still being compiled to inform the upcoming state budget.

Most years, though, between 15,000 and 20,000 taxpayers are added to the state’s land tax base.

Land tax applies to investment properties, for the value of land that exceeds a $600,000 threshold.

Budget forecasts already show that land tax revenue is expected to grow significantly next financial year, with an extra $225m set to be raised.

“Around 60 per cent of taxpayers who become notionally liable for land tax subsequently receive an exemption,” the Treasury spokeswoman said.

In Brisbane, rates are calculated based on a three-year rolling average of land valuations in a bid to create a buffer from sharp increases or decreases. Residential rates are capped at 7.5 per cent.

A Logan City Council spokeswoman also confirmed the rateable value of a property in the city was calculated by averaging the land value over three years.

“By taking the average over three years, we aim to ease the impact of any major changes in the land value,” she said.

Ipswich Deputy Mayor Jacob Madsen said: “In keeping with existing practices, council will continue to use both rate capping and three-year valuation averaging to moderate the impact of above-average increases for those ratepayers who receive valuations increases higher than the rest of the city.”

Originally published as Rates hike fears as land values soar as much as 178 per cent