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Land Tax and COVID-19

Land Tax and COVID-19

The NSW Government has announced its intention that concessions will be made on payments of land tax for landlords of both residential and commercial premises.


  • Reductions of up to 25% of the land tax payable on the land in the 2020 tax year is available to eligible persons.

What is Land Tax?

Land tax is payable on the land value of properties owned by a particular entity at the end of each calendar year.  The land values need to exceed the land tax threshold which is currently $734,000.00.  Your principal place of residence is exempt from land tax as is a farm used for primary production.  Other exemptions may apply and can be found on the Revenue NSW website.

What is available in the package?

A reduction of up to 25% of the land tax payable on the land in the 2020 tax year is available to eligible persons.

“It’s available when:

  • your land is used for business or residential purposes
  • you’re leasing property on that parcel to a residential tenant – or a business tenant with annual turnover of up to $50 million – who can demonstrate financial distress resulting from the COVID-19 outbreak
  • you reduce the rent of the affected tenant by at least as much as the tax reduction
  • the land tax is directly related to the property for which rent has been reduced.

Financial distress is considered to be:

  • for commercial tenants – a 30 per cent drop in revenue due to COVID-19 pandemic
  • for residential tenants – a 25 per cent drop in household income due to COVID-19.”

Who is eligible?

Any person who is liable to pay land tax in 2020 is eligible, however they must meet the support package criteria, being:-

(a)  the tenant of your property has suffered financially through COVID-19.

(b)  the rent was reduced to that tenant by at least the amount of the tax reduction.

Eligible persons will receive a refund from Revenue NSW for the reduction of the land tax for affected properties.  The application process is still being finalised by Revenue NSW and will be available at a later date.

Reference Revenue NSW website.

For further information please don’t hesitate to contact:
1300 268 887

Contact Coutts today.

This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever to this blog, including all or any reliance on this blog or use or application of this blog by you.

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