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The Queensland government has announced various land tax relief measures as a response to COVID-19. If you have been affected by COVID-19, the Queensland Coronavirus land tax relief may be available to you.
There are three types of relief available to you.

If you owned a property and are liable for land tax in relation to that property, you may be entitled to the following concessions:

  1. Land tax rebate reducing land tax liabilities by 25% for eligible properties for the 2019-20 assessment year. Please note you must apply for the land tax rebate by 30 June 2020.
  2. A waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year Please note you must apply for the waiver by 30 June 2020.
  3. A 3-month deferral of land tax liabilities for the 2020-21 assessment year. Please note this is an automatic deferral.

Eligibility For The Land Tax Rebate
The land tax rebate is available if you owned an eligible property at 30 June 2019 and were liable for land tax in relation to the property. 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:

  1. The ability of one or more tenants to pay their normal rent is affected by the COVID-19 pandemic.
  2. You will provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax rebate.
  3. You will comply with the leasing principles even if the relevant lease is not regulated.

OR

You are a landowner and all the following apply:

  1. All or part of your property is available and marketed for lease.
  2. Your ability to secure tenants has been affected by the COVID-19 pandemic.
  3. You require relief to meet your financial obligations.
  4. You will comply with the leasing principles even if the relevant lease is not regulated.

Eligibility for your claim should be substantiated in the from of correspondence with tenants, agreements, letters, bank statements showing a drop in rental income, proof of advertisement for vacant lots etc. This is an important part of record keeping and supporting your claim with the Office of State Revenue.
If you are eligible for the land tax rebate under both the above circumstances, the Office of State Revenue expect you to 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. This means that you will only be able to seek relief under land holdings directly affected by COVID-19.

If you have multiple tenants for a single property, including mixed-use developments, and 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.
You can apply for the land tax rebate up to 30 June 2020.

Eligibility For The Foreign Surcharge
As with the land tax rebate, the land tax waiver is only available if you owned an eligible property at 30 June 2019 and were liable for land tax in relation to the property.

How To Apply For These Concessions
You do not need to apply for the foreign surcharge waiver or the 3-month deferral, as this process is automatic.
You will however need to apply for the land tax rebate by the due date of 30 June 2020.
All applications for the land tax rebate will be processed through OSR Online. You will need to have an OSR Online account, or create one if you don’t already have one by clicking here.

If you require any assistance accessing the various land tax concessions available to you, please do not hesitate to call or email us.

 

Date published: 5 June 2020

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