The NSW Government has recently introduced a $440 million land tax support package to assist commercial and residential landlords for the 2020 land tax year.
The package enables a landlord to claim a reduction of up to 25% of land tax payable if the landlord:
- is leasing the property to a:
- residential tenant suffering at least a 25% drop in revenue as a result of the COVID-19 pandemic; or
- commercial tenant suffering at least a 30% drop in revenue as a result of the COVID-19 pandemic, who is carrying on a business from the property, provided that the annual turnover of that business does not exceed $50 million; and
- has reduced the rent payable by that tenant for at least the same amount as the amount of the land tax reduction; and
- the land tax relates specifically to the property leased by that tenant.
In addition to the support package, Revenue NSW is also offering additional land tax relief to landlords affected by COVID-19. Such additional relief includes extending deadlines for payments and leniency for late payments.
In order to make an application for the support package and/or the additional relief offered, landlords will need to lodge an application with Revenue NSW.
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