Coronavirus: Queensland’s $400m land tax package for stressed landlords could spark national chain reaction

NSW has indicated it could follow Queensland, as Victoria explores ways of easing the burden on landlords.

Landlord Joseph Coco, right, and tennant Nicola Williams, owner of Nikkiz Hair, after Mr Coco announced he would halve rent.

The Queensland government’s unveiling of a $400m land tax package for stressed landlords on Thursday is expected to trigger further relief for property owners nationally as commercial tenants demand rent holidays.

NSW has indicated that it could follow suit and Victoria is also exploring ways of easing the burden on landlords as they support tenants that have been hit by the coronavirus crisis.

The moves are expected in the wake of the federal cabinet this week announcing a new code for dealing with small commercial tenants that will become mandatory once state laws are passed.

But the code’s intrusive nature has sparked political and property criticism.

Former Queensland premier Campbell Newman, who now chairs property firm Arcana Capital, has lashed the proposed scheme.

“Landlords should look after small tenants and share the pain,” he posted on social media.

“However, the code of conduct is bad policy, one-sided, poorly thought through and would sit comfortably in Venezuela.”

He called on political leaders to explain why landlords had to waive rent “while banks that hold the debt aren’t waiving interest at all?” and argued the Coalition should not support the scheme.

The code mandates a moratorium on evictions for businesses with turnover of less than $50m that are eligible for JobKeeper as revenue has fallen by more than 30 per cent.

Retail landlords must offer “proportionate” rent reductions in the form of waivers and deferrals as they nurse businesses through to recovery.

The listed property sector was relieved by the federal code of conduct for commercial leasing, which was less draconian than initially feared.

Both commercial and retail tenants will be protected from evictions under measures unveiled by the Palaszczuk government.

Deputy Premier Jackie Trad said the $400m in land tax relief for property owners must be passed on to tenants.

“We’ve heard loud and clear the concerns of people worried about losing their home or business premises through no fault of their own, so we’ve been working hard to put protections in place to stop that happening,” Ms Trad said.

Queensland will be offering a three-month rebate of land tax for 2019-20, followed by a three-month deferral of land tax 2020-21 for property owners who agree to provide rent relief for tenants affected by the coronavirus downturn.

Property Council Queensland executive director Chris Mountford said the land tax relief was an effective way for the government to support businesses through this crisis.

The Palaszczuk government has also announced a package of measures to ensure residential tenants don’t lose their homes as a result of COVID-19 hardship.