Land tax relief for Residential and Commercial Landowners

What is it

The Queensland government has committed to a $400 million land tax relief initiative to help both landowners and tenants affected by the COVID-19 pandemic.  The relief will be for both residential and commercial tenancies but only if landowners comply with new leasing principles.

If you are an eligible landowner this relief will provide you with:-

1. A three-month land tax rebate for the 2019 – 2020 financial year; and
2. A three-month land tax deferral for the 2020 – 2021 financial year.

If you receive the rebate you will first have to use any payments to provide rent relief to your tenant/s.  If you have any rebate remaining you can then use this for other financial obligations, you may have.

Eligibility

The relief will apply to landowners with tenants currently under a lease or landowners with a property available to be leased.  Furthermore, you will have to meet the following conditions:-

1. Landowners currently leasing to tenant/s
   1. You have a tenant whose ability to pay their normal rent has been affected by COVID-19;
   2. You agree to provide rental relief to your tenant/s at an amount equal to that which is provided to you by the Queensland government land tax relief; and
   3. You agree to comply with the new leasing principles. You must agree to follow these principles even if the lease is not registered.  These are listed below.
2. Landowners with property available to be leased
   1. Your ability to secure tenants has been affected by the COVID-19 pandemic;
   2. You require the land tax relief to meet your financial obligations; and

For landowners with multiple tenants in a single property, if the above conditions are met for a single tenant then the whole of the property is deemed to be eligible for the rebate.

New Leasing Principles

As stated above to be eligible for the benefits residential and commercial landowners will have to comply with new leasing principles.

1. Residential
   1. You will negotiate in good faith with your tenant to seek a mutually agreeable resolution if their ability to pay is impacted by COVID-19;
   2. You will not evict your tenant if they are in financial distress and unable to meet their commitments due to the impact of COVID-19;
   3. You will not end a tenancy for any reason other than on an approved ground; this does not include the tenant’s inability to pay rent or the end of a fixed term lease;
   4. You will not charge break lease fees for tenants who need to end a fixed term tenancy early due to the financial, health or personal safety impacts of COVID-19; and
   5. You will allow a tenant to refuse entry for nonessential reasons, including routine repairs and inspections, particularly if a member of the household has a higher risk profile if exposed to COVID-19
2. Commercial
   1. You will negotiate in good faith with your tenant to seek a mutually agreeable resolution if their ability to pay is impacted by COVID-19;
   2. You will not evict your tenant if they are in financial distress and unable to meet their commitments due to the impact of COVID-19;
   3. You will not increase rent, except where rent is linked to increased turnover;
   4. You will not penalise a tenant who stops trading or reduces opening hours;
   5. You will not charge any interest on unpaid or deferred rent; and
   6. You will not make a claim on a bank guarantee or security deposit for non-payment of rent.

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