The Queensland Government is moving to give landlords greater capacity to support tenants that have been adversely affected by the Coronavirus pandemic. They are doing this by providing $400 million in land tax relief which must be passed on to tenants where appropriate. Landowners are able to apply for this from 14 April 2020.
This relief will be in the form of a three-month rebate of land tax for 2019-20, followed by a three month deferral of land tax for 2020-21 for property owners who provide rent relief for tenants affected by the COVID-19 downturn.
The criteria for the land tax rebate includes:
- the landowner rents all or part of a property to a tenant/s OR all or part of a property is currently available for lease; AND
- at least one tenant’s ability to pay their normal rent OR the landowner’s ability to secure a tenant is affected by the COVID-19 pandemic; AND
- the landowner provides rent relief to an affected tenant/s commensurate with the amount of the land tax rebate OR if the property is unable to be leased, the landowner requires land tax relief to meet their financial obligations (such as debt repayments); AND
- the landowner complies with new Leasing Principles, even if the relevant lease is not regulated.
More information, including how to apply, can be found here.
*It is worth noting that at time of writing, this relief package has not yet been legislated.
General Advice Warning – The information in this article is educational and general in nature. It does not take into consideration your personal financial or taxation information, goals and objectives. Please ensure you seek appropriate financial and taxation advice.
Liability Limited by a scheme approved under Professional Standards Legislation.