ACCESSING LAND TAX RELIEF

The Property Council has written to the Queensland Treasurer outlining industry concern with the limitations in accessing the Government’s $400 million land tax relief package.

Since the Queensland’s Government’s $400 million land tax relief package was unveiled, some Property Council members have encountered issues that have prevented them accessing land tax relief to support tenants, or in the case of owner-occupiers, their own business.

The two issues that members have encountered while trying to access relief are:

• Property Purchased after 30 June 2019 – Landlords who purchased their property after 30 June 2019 have not paid land tax directly to the Office of State Revenue (OSR). However, they have paid a portion of land tax as part of the property purchase price. OSR is advising that these new landlords are ineligible for land tax relief as they were not the owner when land tax assessments were made. The previous owner cannot claim relief on the new owner’s behalf as they do not currently lease the property. The current eligibility framework will mean that many tenants miss out on land tax relief.
• Owner Occupiers – Many land taxpayers are ineligible for the land tax relief because they occupy their own property and the conditions are based on whether your property is leased or available and marketed for lease. Common examples of these types of businesses include pubs, breweries, industrial sheds, gyms, tourism operators and restaurants. Many of these types of businesses have been forced to close due to the current crisis and are desperately in need of relief.Owner occupier businesses are also unable to apply for the commercial rental relief that may be available to many of their competitors.

The Property Council continues to communicate these issues to the Queensland Government.

To view the Property Council’s full letter, please click here.