NSW gives 25% per cent land tax relief to landlords.
Earlier this month the NSW Government announced additional land tax assistance with both commercial and residential landlords able to receive land tax concessions of up to 25% of their 2020 calendar year land tax liability. This $440 million relief package follows the previous package announces that sets out rental waivers and deferrals for commercial tenancies, for more.
A reduction of up to 25 per cent of the land tax payable on a parcel of land in the 2020 land tax year is 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:
- 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.
To be eligible for the land tax support package, you must have a land tax liability in 2020.
You must also meet the requirements outlined in the support package, namely:
- your tenant is suffering from financial distress as a result of COVID-19
- you have reduced the rent of the affected tenant by at least as much as the tax reduction.
If you’re a landlord who doesn’t have a 2020 land tax liability, refer to the Service NSW website, which provides a number of NSW Government support options you may be eligible for.