In 2020, the Queensland government introduced a number of land tax relief measures in response to the impacts of COVID-19. These measures have been extended for the 2020-2021 assessment year.
If you are a land owner, you may be eligible for one or more of the following land tax relief measures:
- a 3-month deferral of land tax liabilities for the 2020-21 assessment year.
- a land tax rebate reducing land tax liabilities by 25% for eligible properties for the 2020-21 assessment year.
Deferral of land tax liabilities
The issuing of assessment notices for 2020–21 were delayed, which means land tax liability has been deferred for 3 months.
For example, if your 2019–20 assessment notice was dated 1 November 2019 and you are liable for land tax again this year, your 2020–21 notice will not be issued before 1 February 2021.
You do not need to apply for the deferral.
Land tax rebate
You can apply for a land tax rebate to reduce your liability by 25% for eligible properties for the 2020–21 assessment year.
The rebate:
- does not apply to owner-occupied land
- is only available if you owned an eligible property at midnight on 30 June 2020, and were liable for land tax in relation to the property
- does not need to be repaid if the eligibility conditions are met.
Note: If you applied for the rebate in the 2019–20 year, you will need to reapply.
Eligibility for the land tax rebate
You may be eligible for the land tax rebate if at least one of the following circumstances applies to you:
You are a land owner who 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 coronavirus (COVID-19).
- You will provide rent relief to the affected tenant(s) of an amount at least commensurate with the rebate (in addition to any relief provided in relation to a land tax rebate received for the 2019–20 land tax assessment year).
- You will comply with the leasing principles even if the relevant lease is not regulated.
You are a land owner and all the following apply:
- All or part of your property is available and marketed for lease.
- Your ability to secure tenants has been affected by COVID-19.
- You require relief to meet your financial obligations.
- You will comply with the leasing principles even if the relevant lease is not regulated.
If you are eligible under both circumstances, you need 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 rebate will only apply to each property that meets the above requirements and conditions – it does not necessarily apply to all your landholdings.
Where there are multiple tenants for a single property, including mixed-use developments, if the eligibility requirements and conditions are met for at least one tenancy, then the whole property is eligible for the land tax rebate.
If you received the 2019–20 rebate, you may also be eligible for the 2020–21 rebate.
How do you apply for the tax rebate?
To apply for a rebate, follow the steps at OSR Online and follow the simple steps.
Applications close 26 February 2021.
How can Walsh Accountants Help?
If you have any questions with regards to COVID-19 land tax relief or require assistance to determine your eligibility, please do not hesitate to contact our office and speak with one of our Accountants.
