The Queensland Government has announced land tax relief measures in light of the effects of the coronavirus on landholders and tenants.
What is land tax relief is available?
Landowners may be entitled to one or more of the following relief measures:
- Land tax rebate – reduction in land tax liability of 25% for eligible properties for the 2019-20 assessment year (need to apply – see below).
- Waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year (automatic re-assessment and refund if assessment already paid).
- Three month deferral of land tax liabilities for the 2020-21 assessment year (no application necessary).
Eligibility criteria for a land tax rebate
A land tax rebate will be available if either of the following two criteria applies to you:
- You are a landowner who leases all or part of a property to one or more tenants and all of the following apply:
- The ability of one or more tenants to pay their rent is affected by the coronavirus; and
- You will provide rent relief to the affected tenant)s) of an amount at least commensurate with the land tax rebate; and
- You will comply with the leasing principles (refer here) even if the relevant lease is not regulated.
- You are a landowner and all of the following apply:
- All of your property is available for lease; and
- Your ability to secure tenants has been affected by the coronavirus; and
- You require relief to meet your financial obligations; and
- You will comply with the leasing principles (principles here) even if the relevant lease is not regulated.
What if you are eligible for the rebate under both criteria?
You will first be expected to apply the rebate firstly to provide rent relief to your tenants (with any amount remaining available for your personal financial obligations).
What property is subject to the rebate?
The rebate will apply to each property that meets the eligibility criteria rather than applying to entire taxable landholdings).
Multiple tenants in a single property
Where there are multiple tenants for a single property (including mixed-use developments), if the eligibility criteria are met for at least one tenancy, the whole property is eligible for the rebate.
Does the rebate need to be repaid?
No repayment is required where the eligibility criteria are met.
When to apply
Up to 30 June 2020.
How to apply
The online link and instructions to apply can be found here.
We are here to help. We will continue to keep you updated on the latest stimulus measures and announcements. For more information, visit HLB Mann Judd’s COVID-19 Resource Centre to help you and your business in this challenging time.