Attention landlords! New legislation affecting ability to recover land tax27 June 2017 | General
On 22 June 2017, Queensland Parliament passed the Revenue Legislation Amendment Bill 2017 to close what it saw as a loophole in the law relating (only) to non-retail leases unfairly benefitting landlords and penalising tenants.
Parliament clearly took the view that rental levels of leases entered into after 1 January 1992 were negotiated on the premise that land tax was (by law) non-recoverable, and that landlords have been “double dipping” after the Vikpro case decision, i.e. as long as the lease provided for the land tax to be recoverable in a post 1 January 1992 lease, landlords were able to charge land tax (Vikpro Land Tax) from 30 June 2010.
This new legislation reverses that position. Vikpro Land Tax is no longer recoverable moving forward – so should not be budgeted for or charged post the legislation coming into effect, anticipated to be 1 July 2017.
The saving grace for landlords is that prior payments of Vikpro Land Tax made by tenants are non-refundable.