The Queensland Government has introduced several COVID-19 land tax measures.

The measures include:

  • For the 2019/20 assessment year:
    • a land tax rebate reducing land tax liabilities by 25% for eligible properties
    • a waiver of the 2% land tax foreign surcharge for foreign entities and
  • For the 2020/21 assessment year, a three-month deferral of land tax liabilities.

A landowner is not required to apply for the foreign surcharge waiver or the three-month deferral. The Government will reassess land tax to apply for the waiver and provide a refund where the assessment amount has already been paid. However, a landowner will need to apply for the land tax rebate.
 

Eligibility for the land tax rebate

 
A landowner may be eligible for the rebate if at least one of the following circumstances applies:

1. the landowner 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 COVID-19
  • rent relief is provided to the affected tenant(s) of an amount at least commensurate
  • with the land tax rebate, and
  • leasing principles are complied with even if the relevant lease is not regulated.

2. a landowner and all the following apply:

  • all or part of the property is available for lease;
  • the ability to secure tenants has been affected by COVID-19;
  • relief is required to meet financial obligations; and
  • leasing principles are complied with even if the relevant lease is not regulated.

Application of the rebate

Landowners who are eligible for the rebate under both the above circumstances are expected to first apply the rebate that is paid out to provide rent relief to tenants, before applying any remaining rebate to their own financial obligations.

The rebate will only apply to each property that meets the above eligibility requirements, rather than applying the rebate to entire taxable landholdings. Further, where there are multiple tenants for a single property, if the eligibility requirements and conditions are met for at least one tenancy, then the whole property is eligible for the land tax rebate.

Landowners can apply for the land tax rebate up to 30 June 2020. To apply for the rebate via the OSR website, click here.