What is the Coronavirus Land Tax Relief?

The Coronavirus Land Tax Relief is a program to help commercial landlords to manage their rental properties during the COVID-19 outbreak.

 

Background

Queensland commercial landlords may apply for one or more of the following land tax relief measures:

  • a land tax rebate reducing land tax liabilities by 25% for eligible properties for the 2019-20 assessment year
  • a waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year
  • a 3 month deferral of land tax liabilities for the 2020-21 assessment year

The rebate and waiver:

  • do not apply to owner-occupied land
  • are only available if you owned an eligible property at 30 June 2019 and were liable for land tax in relation to the property.

 

Eligibility

You may be eligible for the land tax rebate if at least one of the following circumstances applies to you.

  • You are a landowner who leases all or part of a property to one or more tenants and all the following apply.
    • The ability of one or more tenants to pay their normal rent is affected by the coronavirus (COVID-19) pandemic.
    • You will provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax rebate.
    • You will comply with the leasing principles even if the relevant lease is not regulated.
  • You are a landowner and all the following apply.
    • All or part of your property is available and marketed for lease.
    • Your ability to secure tenants has been affected by the COVID-19 pandemic.
    • You require relief to meet your financial obligations.
    • You will comply with the leasing principles even if the relevant lease is not regulated.

If you are eligible for the land tax rebate under both the above circumstances, it is expected you will apply the rebate firstly to provide rent relief to your residential or commercial tenants. You can then apply any remaining rebate to your own financial obligations (e.g. in relation to debt and other expenses).

The land tax rebate will only apply to each property that meets the above eligibility requirements and conditions, rather than the rebate applying to entire taxable landholdings.

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.

The land tax rebate does not need to be repaid if the eligibility requirements and conditions are met.

 

Timing

Applications close 30 June 2020.

 

More Information