Land Tax Relief for Landlords
On Monday 13 April 2020, the NSW Government announced a $440 million land tax relief package for commercial & residential landlords.
Additional funding to assist tenants and landlords as they deal with a downturn due to COVID-19;
Relief package expected to be divided evenly between the commercial and residential sectors;
Landlords will be able to apply for a 25% reduction on their land tax liability for each relevant property, provided they pass on the savings as a rent reduction to the tenant;
Landlords also offered a three-month land tax deferral on any outstanding amounts if they claim the concession;
Interim 60-day moratorium on evictions so tenants are protected. Any unpaid rent will accrue as arrears during this period.
Commercial landlords must pass on land tax relief to business tenants with an annual turnover of less than $50 million that experiences a 30% or more reduction in turnover due to COVID-19. This includes any business eligible for the JobKeeper payment.
Residential landlords must pass on the savings to tenants to be eligible for the land tax waiver of up to 25%.
Residential tenants who have had at least a 25% loss of income due to COVID-19 will need to enter into rent negotiations with their landlord or managing agent.
It is hoped that these concession will assist landlords and tenants to come together and negotiate new temporary lease terms, reach agreements on rent reductions, and also protect tenants from forced evictions related to COVID-19.
Please feel free to contact our office if you have any queries.