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)

Daniel Lilley

Special Counsel

Brisbane 07 3009 8444
Email d.lilley@rclaw.com.au

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Supervising Partners

Gavin McInnes

Partner

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

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