Noosa’s residential land valuations have increased by 53% – what does this mean for Noosa home buyers and investors?

Queensland’s Valuer-General this month announced Noosa’s residential land valuations have increased by 53% – what does this mean for Noosa landowners and investors?

If you’re planning to buy Noosa land or property, it is important to understand these land valuation changes and how they could impact you.

Overall, Noosa showed an increase of 62 per cent in land valuations, with significant increases across all land-use categories. The median residential land value has increased by an overall 53 per cent from $405,000 to $620,000 while primary production land values have increased 60 per cent.

The report stated significant changes to residential land values and property markets was due to increases in higher-profile buyers being active in the Noosa market as well as the significant increase in the overall profile of the local government area in recent years.

There are some variances between some Noosa Shire localities in terms of level of increase in median values of residential land.

Notably, the suburbs of Sunshine Beach, Peregian Beach, Noosa North Shore, Noosa Heads, Cootharaba, Cooroibah and Boreen Point have all recorded a median land value increase of in excess of 70% since the previous land valuations assessment (October 2021). In contrast, the increasingly popular Cooroy recorded a median increase of under 10% since the previous assessment.

Noosa Land Valuations

The table below shows the changes in median value of residential land in the Noosa Shire area. The land valuations reflect land values as at 1 October 2022, and are effective from 30 June 2023.

Locality	Previous median land value as at 1 October 2021	New median land value as at 1 October 2022	Change in median land value	Number of properties
Black Mountain	$177,500	$285,000	60.6%	71
Boreen Point	$235,000	$425,000	80.9%	269
Castaways Beach	$570,000	$910,000	59.7%	253
Cooran	$222,500	$315,000	41.6%	359
Cooroibah	$225,000	$405,000	80%	121
Cooroy	$360,000	$395,000	9.7%	1,097
Cootharaba	$455,000	$820,000	80.2%	1
Federal	$139,000	$210,000	51.1%	1
Kin Kin	$138,000	$232,500	68.5%	87
Lake Macdonald	$375,000	$470,000	25.3%	17
Marcus Beach	$470,000	$785,000	67%	344
Noosa Heads	$580,000	$990,000	70.7%	1,490
Noosa North Shore	$392,500	$740,000	88.5%	170
Noosaville	$530,000	$850,000	60.4%	2,711
Peregian Beach	$510,000	$870,000	70.6%	1,330
Pinbarren	$146,000	$205,000	40.4%	15
Pomona	$285,000	$400,000	40.4%	516
Ringtail Creek	$187,500	$340,000	81.3%	5
Sunrise Beach	$475,000	$760,000	60%	1,202
Sunshine Beach	$780,000	$1,450,000	85.9%	1,061
Tewantin	$330,000	$435,000	31.8%	3,875
Tinbeerwah	$370,000	$497,500	34.5%	26
All localities	$405,000	$620,000	53.1%	15,021

What does this mean for home buyers and investors in Noosa?

Land valuations provide independent data that underpin decision making and allow landowners to monitor the changing value of their land. For home owners and investors, new land valuations could impact them on a cashflow perspective through:

1. Increases in the Council rates that are charged for a property
2. The amount of land tax applicable (particularly for property investors)

 

Land tax is of particular note for investors, and we talk more about this below.

   

Overview of Queensland Land Tax

Land taxes are an important part of Queensland’s taxation system, and one that many investors often overlook. This tax is a State tax, levied on all non-exempt freehold land you own in Queensland at midnight on 30 June each year. The funds are used to fund essential services such as roads, hospitals, schools, and other infrastructure projects.

The tax rate that applies depends on:

1. what type of owner you are
2. the type of land you own
3. the total taxable value of your land, and
4. if any exemptions apply.

1.What type of owner you are

Differing thresholds and rates apply depending on whether a taxpayer is an:

• individual (Australian citizens, permanent visa holders and other foreign individuals who usually live in Australia)
• absentee (foreign individuals without a permanent visa who do not usually live in Australia)
• corporation (including clubs, associations and societies)
• trustee (including trustees of deceased persons’ estates or superannuation funds)
• foreign companies (incorporated outside Australia, or in which foreign persons or related persons have a controlling interest of at least 50%)
• trustees of foreign trusts (where at least 50% of the trust interests are foreign interests).

 

2. The type of land you own

Types of land that are exempt from the calculation include land used as farming (in certain circumstances) and an individual’s principal place of residence.

3. The total taxable value of your land

The current rates below apply to the total taxable value of land owned at midnight 30 June 2022 by an individual or the trustee of a special disability trust. If you are a foreign individual (who owns land in Queensland) and you do not hold a permanent visa or usually live in Australia, the absentee land tax rates will apply.

Land owned by superannuation funds is taxed at the rates for companies and trustees.

Total taxable value	Rate of tax
$0–$599,999	$0
$600,000–$999,999	$500 plus 1 cent for each $1 more than $600,000
$1,000,000–$2,999,999	$4,500 plus 1.65 cents for each $1 more than $1,000,000
$3,000,000–$4,999,999	$37,500 plus 1.25 cents for each $1 more than $3,000,000
$5,000,000–$9,999,999	$62,500 plus 1.75 cents for each $1 more than $5,000,000
$10,000,000 or more	$150,000 plus 2.25 cents for each $1 more than $10,000,000

The higher the value of your land, the more land tax is payable so the new Noosa land valuations will result in increased costs (unless you are approved for an exemption).

4. If any exemptions apply.

As mentioned previously, depending on the ownership and use of the land, you may be eligible for a land tax exemption. Further details on exemptions can be found here.

When an exemption is applied for an approved in relation to a parcel of land, the taxable value of that parcel is excluded from the total taxable value of all your land. So, an exemption will reduce how much you have to pay.

Find out more

If you are planning to buy Noosa property, it is important to understand the land valuation changes and how it could affect you.  We are here to help and can put you in touch with a professional tax advisor who can help you understand the land tax system and can provide you with advice on how to minimise your land tax liability. Please don’t hesitate to contact us if you would like to discuss this.