KEY TAKE OUTS
- Eligible commercial and residential landowners may be entitled to receive a reduction in land tax payable for 2020 where they have provided a reduction in rent to a tenant due to COVID-19.
- These measures will provide relief to eligible landowners by reducing land tax payable for 2020 by up to 25%.
- Eligible landowners may also defer their land tax payments by up to three months.
The NSW Government has introduced land tax relief measures to landowners who provide a reduction in rent to tenants who are experiencing financial hardship due to COVID-19.
What land tax relief is available?
If eligible, landowners may be entitled to one of the following relief measures:
- The reduction of up to 25% of their 2020 tax liability; or
- A three-month deferral of their outstanding land tax payments.
If landowners have not completed payment of their land tax for 2020, the relief will reduce or offset the amount left to pay. If landowners have already paid their land tax for 2020, the reduction can be refunded.
Eligibility criteria for land tax relief
The land tax relief measures are available when:
- Landowners are leasing land to a commercial tenant who has an annual turnover of up to $50 million, or a residential tenant;
- The tenant is in financial distress as a result of COVID-19;
- Landowners reduce the rent of the affected tenant for any period between 1 April 2020 and 30 September 2020;
- The rent reduction is not be required to be paid back at a later date; and
- The land tax is directly related to the property for which the rent has been reduced.
What is considered financial distress?
A commercial tenant is considered to be in financial distress where there is a reduction in turnover compared to a previous comparable period of 30% or more.
A residential tenant is considered to be in financial distress where there is a reduction in household income of 25% or more.
How to apply?
Landowners can apply for the land tax relief through the Service NSW website.
For further information please don’t hesitate to contact:
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