The Queensland government recently released its land tax relief package. The package is designed to assist landlords with tenants whose ability to pay rent has been affected by COVID-19. https://www.qld.gov.au/environment/land/tax/covid-19 

Am I eligible for land tax relief? 

The land tax relief measures consist of:-

. a 25% rebate for land tax paid on properties held at 30 June 2019;

. a waiver of the 2% land tax foreign surcharge for land tax paid on properties held at 30 June 2019; and

. a 3 month deferral of payment of land tax on properties held at 30 June 2020.

The waiver and the deferral are automatic while the rebate must be applied for.

Eligibility for rebate - 2 Types

1. Landowner who leases property to one or more tenants and all of the following apply:-

  • ability of a tenant to pay rent is affected by COVID-19; AND
  • you provide rent relief to the tenant equal to at least the amount of land tax relief; and
  • you comply with the leasing principles established by the Queensland government.

2. Landowner and all of the following apply:-

  • all or part of the property is available for lease; AND
  • ability to secure tenants is affected by COVID-19; AND
  • you need relief to meet your financial obligations; AND
  • you comply with the leasing principles established by the Queensland government.

In summary, if you have tenants you must pass the rebate onto your tenants. If you do not have tenants you must use the rebate to pay debts and other obligations. You cannot profit from the rebate.