Services

HG Alert: Revenue Legislation Amendment Bill 2010: New land tax exemption for supported accommodation services proposed - 11 Jun 2010

The Revenue Legislation Amendment Bill 2010 (Qld) was introduced into parliament this week to give effect to changes announced in the 2010/2011 State budget. The Bill amends the Land Tax Act 2010 (Qld), the First Home Owner Grant Act 2000 (Qld) and the Payroll Tax Act 1971 (Qld).

Amendments to the Land Tax Act 2010

The Land Tax Act 2010  is due to commence on 30 June 2010. The Bill amends the new Act straight away by introducing a new tax exemption for land on which a supported accommodation service is conducted. This new exemption compliments the existing land tax exemption for land on which an aged care facility is located.

What is a supported accommodation service?

A supported accommodation service is a residential service accredited at level three under the Residential Services (Accreditation) Act 2002 (Qld). Level three accreditation is required for any residential service providing personal care (for example, assisting in managing financial affairs, personal hygiene, mobility and other day-to-day tasks).

What is a residential service?

There are a number of situations in which a residential service may be conducted. However, those which provide personal care (and therefore hold level three accreditation) must:

  • provide accommodation (as the main purpose of the service) in exchange for rent in one or more rooms;
  • have rooms occupied or available for occupation by at least four residents;
  • allow residents the right to occupy one or more rooms (but not the right to occupy the whole premises); and
  • provide a food service or personal care service to residents.

An aged rental scheme is also considered a residential service under which level three accreditation is required. An aged rental scheme is a scheme which:

  • provides accommodation mainly to older members of the community or retired people in exchange for rent;
  • has two or more self-contained units available for occupation by at least four residents (either separately or jointly); and
  • provides a food service or personal care service to residents.

Other amendments made by the Bill

Additional first home owner grant for regional Queensland transactions

The First Home Owner Grant Act 2000 (Qld) is to be amended retrospectively from 1 June 2010 to provide an additional $4,000 grant for eligible transactions to purchase or build a new home in regional Queensland on or after 1 June 2010 and before 1 July 2011. This grant is in addition to the existing $7,000 grant. The location of the land on which the home is to be purchased or built must be outside specified local government areas set out in the Bill.

Payroll tax rebate to be extended

The Payroll Tax Act 1971 (Qld) is to be amended from 1 July 2010 to extend the 25 percent payroll tax rebate on wages paid to apprentices and trainees. The rebate, which was due to expire on 1 July 2010, has been extended until 30 June 2011.

For more information on the Land Tax Bill 2010 (Qld), the Revenue Legislation Amendment Bill 2010 (Qld) or applying for an exemption from land tax, please contact HopgoodGanim's Commercial Property practice.