Land access checklist for landowners negotiating with coal seam gas operator released

The GasFields Commission Queensland has recently published a ' Land Access Checklist for Landholders', which lists seven general principles to assist landholders in negotiating land access agreements with coal seam gas operators.

This publication serves as a timely reminder that land access negotiations can have a serious impact on a landholder's use of their land and that landholders should seek advice during the negotiation of their compensation agreement.

Tax consequences of compensation payments are often overlooked during these negotiations but it is essential to consider the tax implications before negotiations are finalised.

From a tax perspective, the characterisation of a payment as either income or capital can have drastically different tax results. This is a complex area and guidance given by the Australian Taxation Office on the tax treatment of compensation payments may be difficult to understand.