Rental arrangement categories for state land tenures

Category 12 covers leases, licences and permits to occupy whose use is primarily residential and comprises 2 sub-categories.

Sub-category 12.1 includes leases, licences and permits to occupy used primarily for a single dwelling house or solely for private purposes including:

• storing a motor vehicle, boat or equipment owned or leased by the landholder and for the landholder’s private use
• cultivating gardens or lawns for the landholder’s private use.

Sub-category 12.2 permits to occupy may be used solely for short-term accommodation purposes, such as staying in a fishing hut for a weekend or holiday period.

How your rent is determined

The annual rent for both sub-categories 12.1 and 12.2 is calculated at 6% of the 3-year average of the land value for rental purposes, as prescribed by the Land Regulation 2020 or the minimum rent as prescribed by the Land Regulation 2020. This is indexed annually, with the new minimum rent coming into effect from 1 July each year.

The maximum rent for Category 12.2 permits to occupy is calculated at 6% of $14,200.00 no GST applicable. This is also indexed annually.

Due date

Annual rents are due on 1 September of the financial year for which the rent is payable. Invoices are normally issued before the end of July.

Quarterly payments

You may be eligible to make quarterly payments if your annual rent is greater than $2000. If eligible, you will be sent an invoice for the quarterly payment about 30 days before it is due. Payments are due on 1 September, 1 December, 1 March and 1 June.

If you would prefer to make a single payment for the total annual rent, email ltladmin@resources.qld.gov.au or call (07) 3199 7817.

Penalty on late payment

If you do not pay the rent within the time prescribed on the invoice, you will be required to pay penalty interest on the rent outstanding until the day the rent is paid. This is in addition to the rent.

Penalty interest rate

The penalty interest rate, accruing daily and compounding monthly, is 2% above the Suncorp-Metway business variable lending base rate as at 1 July of the annual billing period.

Hardship assistance

If you hold a term or perpetual lease, a road licence or occupation licence and are suffering financial hardship, you may be eligible to defer your payment. Holders of permits to occupy are not eligible.

If your application is successful, you will be allowed to defer all or part of your rent for the rental period. See deferring your rent or instalment for more information.

Note: No interest will be charged on the deferred rent.

If your lease is used exclusively for residential purposes, you may also be eligible for a reduction of rent or instalment.

Related information

Rental arrangements are made in accordance with the Land Regulation 2020.