Land Tax Changes – Queensland – Implications for Commercial Leases

What’s changed?
On 1 July 2009 new laws came into effect repealing section 44A of the Land Tax Act 1915 which provided that a Landlord could not charge a tenant land tax in any Lease that was entered into after 1 January 1992.

The effect of this means that where a Landlord enters into a Lease after 1 July 2009 the Landlord can charge a Tenant Land Tax as part of the outgoings under the Lease.

Does it apply to all Leases?
The changes apply to all new Leases executed after 1 July 2009. It will not apply to leases:

  • that are for retail purposes as defined under the Retail Shop Leases Act 1994 or residential purposes as defined under the Residential Tenancies and Rooming Accommodation Act 2008
  • where entered into prior to 30 June 2009
  • arise from the renewal of an option to renew a lease executed prior to 30 June 2009
  • arising from the assignment of a lease executed prior to 30 June 2009 (see section 76 of the Land Tax Act 1915)

Supervising Partners

Gavin McInnes

Gavin McInnes

Partner

Brisbane 07 3009 8444
Sydney 02 9307 8900
Email g.mcinnes@rclaw.com.au

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