The NSW Government has introduced measures that provide relief to commercial and residential landowners, who provide a reduction in rent to a tenant experiencing financial distress as a result of COVID-19. Landowners will receive a reduction in their land tax payable for the 2020 land tax year if:
- They’re leasing a parcel of 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
- For commercial tenants – reduction in turnover of 30% or more
- For residential tenants – reduction in household income of 25% or more
- The landlord reduced the rent of the affected for any period between 1 April 2020 and 30 September 2020, and for 2020, the landlord has land tax attributable to the parcel of the land leased.
If the landlord meets the above criteria, they will be eligible to receive a reduction. The reduction will be the lesser of, the amount of rent reduction provided to a tenant for the period between 1 April 2020 and 30 September 2020 OR 25% of the land tax attributable to the parcel of land leased to the tenant. Furthermore, if a landlord receives a reduction under this program, they will also be able to have their outstanding land tax payments deferred for up to three months.