Land tax relief for Queensland commercial and residential property owners

15 April 2020

Leisa Rafter , Partner, Tax |

The Queensland Treasurer recently announced land tax relief for commercial and residential property owners who agree to provide rent relief for tenants affected by COVID-19.

The relief includes a 25% rebate of land tax for 2019/20 and a three-month deferral of land tax for 2020/21.

A landowner can apply for the land tax relief if part or all of the property is either leased to a tenant(s) or available for lease and fulfils the below criteria.

  • For properties currently leased:
    • At least one tenant’s ability to pay their normal rent is affected by the COVID-19 pandemic
    • The landowner provides rent relief to an affected tenant proportionate with the  land tax rebate amount
    • The landowner complies with new the leasing principles, even if the relevant lease is not regulated.
  • For properties available for lease:
    • The landowner’s ability to secure a tenant is affected by the COVID-19 pandemic
    • The landowner requires land tax relief to meet their financial obligations (such as debt repayments)
    • You will comply with the leasing principles even if the relevant lease is not regulated.

It is expected that landowners will apply the rebate first to provide rent relief to your tenants. Landowners can then apply any remaining rebate to their own financial obligations.

The relief can be applied for until 30 June 2020 via OSR Online.

2019/20 foreign surcharge - delay

The implementation of the foreign land tax surcharge is delayed until FY2021 to allow the Government sufficient time to finalise the ex gratia relief guidelines.

Landowners who have not yet received their 2019/20 land tax assessment will now be issued an assessment for their full land tax liability without the foreign surcharge.

If you apply and are eligible for the above rebate/deferral, you will also be reissued with a new assessment which reflects the 25% rebate.

Need assistance?

If you need assistance with your commercial or residential property amidst the COVID-19 downturn, please contact a member of our national Real Estate and Construction team.