The State Government has made changes to the payment of Land Tax as a result of the Covid-19 health crisis. These changes are proposed to assist commercial and residential landlords through reducing and deferring land tax payments which in turn are required to be passed onto the tenants.
The State Government is offering property owners a three-month rebate of land tax for 2019-20 followed by a three-month deferral of land tax 2020-21 if they agree to provide rent relief for tenants experiencing a business downturn as a direct result of the coronavirus.
A landlord can apply for land tax relief if they meet the following criteria:
- 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 requirements, even if the relevant lease is not regulated.
This Land Tax relief will be effective from Tuesday 14 April 2020 and can be applied for through www.qld.gov.au/landtax. This Land Tax relief is anticipated to account for about $400 million worth of relief and deferments.
Whether you are a property owner or tenant, if you need assistance in this challenging time with understanding Government relief packages or understanding different future income options, please contact McGees Property for assistance.