Land Tax Clearance Certificates – What Sellers in Queensland Need to Know

When selling property in Queensland, one important (but often overlooked) step is obtaining a Land Tax Clearance Certificate. While it’s not mandatory in every transaction, it can be crucial to protect both the seller and the buyer — and ensure the settlement process runs smoothly.

What is a Land Tax Clearance Certificate?

A Land Tax Clearance Certificate is a certificate issued by the Queensland Revenue Office (QRO) that confirms whether land tax is owed on a property.

It protects the buyer by disclosing any land tax debts attached to the property. If land tax is outstanding, a buyer could be held liable for it after settlement — even though the debt relates to the seller's ownership period.

Because land tax debts "follow the land," not the owner, a Clearance Certificate is a way for buyers to check whether there’s any hidden liability before they complete the purchase.

Is a Land Tax Clearance Certificate Required in Queensland?

Unlike some other states, Queensland law does not make it mandatory for a seller to provide a Land Tax Clearance Certificate. However:

• Many buyers will require it as part of the settlement process.

• It may be requested under contract conditions.

• It is often best practice for sellers to obtain one voluntarily to avoid settlement delays.

Obtaining a certificate can help reassure your buyer and keep the transaction moving forward.

How to Apply for a Land Tax Clearance Certificate

Usually your solicitor will apply for a Land Tax Clearance Certificate with their search provider. Otherwise, you may search online via the Queensland Revenue Office website.

You’ll need:

• The property address

• The property title reference

• Details of the registered owner

• Payment of the application fee

The QRO aims to issue certificates within a few business days, but processing can take longer during busy periods.

What Does the Certificate Show?

The Land Tax Clearance Certificate will confirm:

• Whether any land tax is owing at the time of application

• Whether any land tax may become payable for the current financial year

Important:
Even if land tax is not currently owed, future land tax may still apply depending on the buyer’s circumstances (such as if they already own other properties or are classified as a foreign owner).

Why Sellers Should Apply for a Certificate

While not strictly required, applying for a Land Tax Clearance Certificate can:

• Speed up settlement by addressing buyer concerns early;

• Protect the seller’s reputation and avoid disputes about land tax;

• Assist with due diligence, especially in commercial sales;

• Avoid delays caused by buyers insisting on a certificate later in the process.

At East Legal, we often recommend applying for the certificate early in the sale process, particularly if you know your property is subject to land tax or you are selling commercial or high-value real estate.

Need Help With Your Sale?

At East Legal, we guide sellers and buyers through every stage of the property transaction – including handling Land Tax Clearance Certificates and ensuring no unexpected issues at settlement.

If you're thinking of selling, buying or have just gone under contract, contact us today to get the process started smoothly.