1. GOLD COAST REAL ESTATE TEAM CONTACTS
Bryce Melville Rebecca Sheppard Yvette Mason Marieanne Golubinsky Meaghan Brodie
PARTNER SENIOR ASSOCIATE ASSOCIATE GRADUATE PARALEGAL
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bryce.melville@minterellison.com rebecca.sheppard@minterellison.com yvette.mason@minterellison.com marieanne.golubinsky@minterellison.com meaghan.brodie@minterellison.com
Property Developments
30 September 2016
QCA upholds ‘pass through’ of Qld land tax for commercial leases
The recent Queensland Court of Appeal
decision in Vikpro Pty Ltd v Wyuna Court Pty
Ltd [2016] QCA 225) upheld the Supreme
Court of Queensland’s decision in Wyuna
Court Pty Ltd v Vikpro Pty Ltd [2015] QSC 216.
Legislative Background
Land tax recovery clauses were unenforceable under
s44A of the Land Tax Act 1915 (Qld), which
continued to apply to leases entered into before 30
June 2009 under s76 of the Land Tax Act 1915 (Qld)
(now repealed by the Land Tax Act 2010 (Qld)).
Supreme Court of Queensland
On 7 August 2015, the Supreme Court of Queensland
held that Queensland land tax imposed on or after
30 June 2010 could be “passed on” by the landlord
to a tenant under a lease containing a recovery
clause that was entered into before 30 June 2009.
The decision clarified that one effect of the Land Tax
Act 2010 (Qld) was that from 30 June 2010, the
legislative prohibition on land tax recovery from
tenants was removed for leases entered into
between 1 January 1992 and 29 June 2009.
The tenant (i.e. Wyuna Court Pty Ltd) filed a notice
of appeal in respect of this decision.
Queensland Court of Appeal
On 6 September 2016, the Queensland Court of
Appeal upheld the decision of the Supreme Court
of Queensland.
Practical effect and closing remarks
This now means that (unless the decision is
reversed non appeal to the High Court of Australia
or by legislation) commercial and industrial
landlords can confidently ‘pass through’ post-30
June 2010 land tax under:
 Leases entered into between 1 January
1992 and 29 June 2009; and
 Leases arising from an option to renew,
assignment or transfer of such a lease.
For ‘pass through’ to be available, the lease must
allow the recovery of land tax from the tenant.
The decision does not affect existing prohibitions
on the ‘pass through’ of land tax for residential
premises and premises covered by the Retail Shop
Leases Act 1994 (Qld).
Further Information
If you would like advice on the implications of the
reforms or assistance with your retail leasing, please
contact us.
*Disclaimer
The information contained in this update is intended as a guide only.
Professional advice should be sought before applying any of the
information to particular circumstances. While every reasonable care has
been taken in the preparation of this update, MinterEllison does not
accept liability for any errors it may contain.