RH Commercial Insight

4 Legal Perspective: Land Tax Relief for Landlords & Tenants Wri tt en by Wilson Lawyers Following the recent announcements by the National Cabinet, the Queensland Government has revealed a $400 million dollar land tax relief package to support landlords and tenants during the COVID-19 pandemic. What does the COVID-19 land tax relief package include? One or more of the following measures are available for eligible commercial and residential landlords:  a Land Tax Rebate reducing land tax liabilities by up to 25% (3 months) for the 2019 to 2020 assessment year for eligible properties. This is a non-repayable refund for the period;  a Foreign Surcharge Waiver of the 2% land tax foreign surcharge for foreign entities for the 2019 to 2020 assessment year; and  a 3-Month Deferral of land tax liabilities for the 2020 to 2021 assessment year. You are not required to apply for the 3-Month Deferral or the Foreign Surcharge Waiver for the 2020 to 2021 assessment year. The O ffi ce of State Revenue will reassesses land tax and provide a refund where payments have been made already. PLEASE NOTE: If you are eligible for the Land Tax Rebate for the 2019 to 2020 assessment year, you will need to apply here by 30 June 2020. Our o ffi ce can assist with further details if needed. Who is eligible for the Land Tax Rebate ? The Queensland Government has outlined that the following landowners are eligible: 1. 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 normal rent is a ff ected by the COVID-19 pandemic;  you will provide rent relief to the a ff ected tenant/s of an amount at least commensurate with the Land Tax Rebate ; and  you will comply with the Leasing Principles (see below) even if the relevant lease is not regulated. OR 2. You are a landowner with all or part of your property currently available for lease and all the following apply:  your ability to secure a tenant/s has been a ff ected by the COVID-19 pandemic;  you require relief to meet your fi nancial obligations; and  you will comply with the Leasing Principles even if the relevant lease is not regulated. How does the Land Tax Rebate apply across multiple properties? The Land Tax Rebate will only apply to each property that meets the eligibility conditions. It will not necessarily apply against your whole taxable land portfolio. How does the Land Tax Rebate apply if the tenant only leases part of one property? Where there are multiple tenants for a single property, including mixed-use developments, if the eligibility requirements and conditions are met for at least one tenancy, then the whole property is eligible for the Land Tax Rebate . How do I use the Land Tax Rebate ? The Queensland Government expects you to apply the Land Tax Rebate fi rstly to rent relief for tenants. Any remaining relief can then be applied to the landlord’s own fi nancial obligations/debts.