New GST and land tax options in REIQ contracts: A step forward for Queensland agents and their clients

From 1 August 2025, Queensland real estate professionals will be working with a new generation of REIQ contracts, updated to align with the Property Law Act 2023 and the new seller disclosure regime.

Among the most significant and beneficial changes are the new GST and land tax sections in the contract schedule.

These updates are more than just administrative tweaks, they’re a powerful improvement that gives sellers greater flexibility and clarity, and they reinforce the privileged role Queensland agents play in preparing contracts, a responsibility not shared by agents in most other states.

Let’s explore what’s changed, why it matters, and how you can confidently guide your clients through these new options.

What’s New?

1. GST Options – Five Clear Choices

The updated REIQ contracts now include a dedicated section for sellers to specify how Goods and Services Tax (GST) is to be treated in the transaction. There are five options, allowing sellers flexibility for setting out what option is more appropriate in the circumstances of the sale.For most residential real estate transactions, GST will not be applicable and this section can be simply completed following the direction note in the contract. This is a major improvement over the previous approach, which often required additional clauses or legal interpretation, if GST was applicable.

These options help avoid confusion and reduce the risk of disputes post-contract. They also provide clarity to the agent around how GST will apply when a purchase price is being negotiated.

2. Land Tax Adjustment – Seller’s Choice

Sellers can now also choose how any applicable land tax is adjusted at settlement. The new section allows sellers to select the adjustment method that works best for them, and ensures that buyers are aware of the arrangement upfront. This transparency helps avoid disputes around how land tax is to be adjusted at settlement and supports smoother settlements.

Best Practice Tips for Contract Preparation

Completing these items in the Contract schedule is very straightforward.  Agents need to obtain their client’s instructions about what options to select. These instructions can be obtained by asking the client, by:

• For new clients: using the REIQ’s updated Residential Sales Schedule to the PO Form 5 Appointment of Property Agent; or

   

• For existing clients: sending the REIQ’s Taxation Details Instruction Form to the client or their nominated solicitor or accountant for completion.

Agents must not provide any advice to their clients about what option is most suitable for them.  If the client is unsure, they should be directed to seek advice from their solicitor or accountant.  Selecting the wrong option can be significant financial consequences for the seller.

Agents operating in Queensland are in a unique position. Unlike most other states, Queensland law allows licensed real estate agents to prepare contracts for the sale of property. This is a significant professional privilege and with it comes the responsibility to stay informed and act in the best interests of your clients.

The new GST and land tax sections are a big change in the contract and it will take time to adjust as agents become more familiar with these items.  By understanding these options and knowing how to seek clear instructions from your clients, you’re not just filling out a form, you’re adding real value to the transaction.

Read another REIQ article: Best practice: Issuing sales contracts leading up to 1 August 2025.

Or browse our suite of articles.