NB Landlords and Tenants - Proposed Repeal of Land Tax Prohibition

Since 1 January 1992 landlords in Queensland have been prohibited from passing on the cost of land tax to their tenants.  The Queensland Government is currently considering repealing this provision with effect from 30 June 2009.

Landlords should note that the prohibition on requiring tenants to pay land tax contained in the Retail Shop Leases Act and the Residential Tenancies Act will continue to apply.  However landlords of commercial premises will be able to pass on land tax through outgoings for leases entered into on or after 1 July 2009, if the bill is passed.

The current draft bill makes it clear that the current prohibition on collection of land tax will continue to apply for leases entered into prior to 1 July 2009 and the prohibition will also continue to apply for leases entered into pursuant to the exercise of an option under a lease entered into before 1 July 2009.

The Office of State Revenue is considering the feedback and comments which it received on the draft bill in February.  We will keep you informed in future publications as to whether or not the removal of the land tax prohibition is ultimately passed, once the State election has occurred and Parliament resumes.