Fears foreign land owners would abandon Queensland have eased after the state government agreed to broaden exemptions on the increase to its land tax surcharge.

The land tax absentee surcharge was increased from 1.5 to 2 per cent, along with a widening of the definition to include foreign companies and trusts, in the June's budget.

Brisbane Credit:Alamy

The hike was expected to pump an extra $540 million into the public purse over four years, however new figures show that number was chopped in half "following consultation with industry", Treasurer Jackie Trad said on Thursday.

Land tax revenue has been revised down y $291 million over forward estimates.