Rental arrangements and land use categories
Landholders are required to pay an annual rent to the department.
Rent is calculated under the Land Regulation 2009 in accordance with -
- section 37(1) being a prescribed fixed amount; and
- section 37(2) being the land value for rental purposes, multiplied by the rental category percentage rate assigned to the tenure.
Land rent rebate
The Queensland Government recognises that the widespread drought across the state is causing many landholders severe hardship. As part of the government's drought assistance package, landholders of rural leases issued under the Land Act 1994 are eligible to a rebate of any increase in rent from 2012–13 to 2013–14.
The rebate is available to leases:
- in the land use category of Category 11 – Primary Production (PDF, 419K)*
- that are in a Drought Declared Area
- that have an increase on the annual rent payable from the 2012–13 financial year to the 2013–14 financial year that has not been caused by minimum rent increase.
Landholders who are eligible for the rebate will be provided information in their annual/quarterly invoice. Pages 2 and 3 of the invoice will provide details of the rebate available as part of the government's drought assistance package. In addition to the rebate, under section 192 of the Land Act, deferral of the required payment, in whole or part, past 1 September 2013 may be considered if a landholder of state land is suffering from hardship because of the effects of drought, flood, fire or disaster.
If the landholders' 2013–14 rent has not increased from 2012–13 they are not eligible to receive a rebate. However under section 192 of the Land Act, deferral of the required payment, in whole or part, past 1 September 2013 may be considered if a leaseholder or licensee of state land is suffering from hardship because of the effects of drought, flood, fire or disaster.
The categories are:
- Category 11—primary production
- Category 12—residential
- Category 13—business and government core business
- Category 14—charities and sporting and recreational clubs and is divided into two sub-categories:
- sub-category 14.1—charities and small sporting or recreational clubs with no more than 2000 members
- sub-category 14.2—large sporting or recreational clubs with more than 2000 members
- Category 15—communication sites and is divided into five sub-categories:
- sub-category 15.1—communication sites (community service activities)
- sub-category 15.2—communication sites (non-community service—rural)
- sub-category 15.3—communication sites (non-community service—urban)
- sub-category 15.4—communication sites (non-community service activities—rural)
- sub-category 15.5—communication sites (non-community service activities—urban)
- Category 16—divestment.
Minimum annual rent effective 1 July 2012
Effective 1 July 2012, the minimum annual rent payable for:
- Category 14.2 is $106
- Categories 11, 12, 13 and 16 is $214.
Effective 1 July 2013, the minimum annual rent payable for:
- Category 14.2 is $109
- Categories 11, 12, 13 and 16 is $221
These will be indexed annually.
Quarterly billing arrangements
Landholders of leases, licences and permits to occupy in categories 11, 12, 13 and sub-category 14.2, are eligible to make quarterly payments where their annual rent is greater than $2000.
Quarterly payments do not apply to Category 15 (communication sites) and Category 16 (divestment).
Where the landholder is eligible for quarterly payments, the landholder will be sent an invoice for the quarterly payment about 30 calendar days before the payment is due. These payments must be made on or before 1 September, 1 December, 1 March and 1 June of the relevant billing period.
Quarterly payment options are only available on individual tenures.
Eligible landholders who do not wish to make quarterly payments and would prefer to make a single payment for the total annual rent are advised to contact the departments State Land Finance unit:
- (07) 3199 7924
- (07) 3199 7920
- (07) 3199 7919
- (07) 3199 7918
- (07) 3199 7917
- (07) 3199 7843
For further information on quarterly payment refer to fact sheet L231—Rental arrangements: quarterly payments (PDF, 407K)*.
Penalty for late payment
If a landholder does not pay the rent within the time prescribed on the invoice, they must pay, as well as the rent, penalty interest on the rent outstanding until the day the rent is paid.
The penalty interest rate, accruing daily and compounding monthly, is two per cent above the Suncorp-Metway business banking variable lending base rate as at 1 July of the annual billing period.
If a lease is held exclusively for residential use by the leaseholder, and the leaseholder is experiencing hardship, application can be made for a residential hardship concession.
If the application is assessed as eligible, the rent on the lease may be reduced.
For any other lease an application for deferral of rent may be made if the lessee is suffering hardship due to the effects of drought flood fire disaster; or economic recession; or a severe downturn in the level of markets related to the purpose of the lease.
If approved, deferral of the rent is for 12 months and the deferred rent is subject to a reduced interest rate of two per cent.
The applicable Suncorp-Metway rate as at:
- 1 July 2012 is 8.94 per cent
- 1 July 2013 will be 8 per cent.
For further information, refer to the following fact sheets:
- Application for a rental concession for a lease that is rural leasehold land (PDF, 112K)*
- L215—Rental arrangements: Category 11—primary production (PDF, 419K)*
- L216—Rental arrangements: Category 12—residential (PDF, 445K)*
- L217—Rental arrangements: Category 13—business and government core business (PDF, 411K)*
- L218—Rental arrangements: Category 14.1—charities and small sporting clubs (PDF, 63K)*
- L219—Rental arrangements: Category 14.2—large sporting and recreational clubs (PDF, 411K)*
- L220—Rental arrangements: Category 15—communication sites (PDF, 66K)*
- L221—Rental arrangements: Category 16—divestment (PDF, 59K)*
- L231—Rental arrangements: quarterly payments (PDF, 407K)*
* Requires Adobe Reader
Last updated 3 July 2013