Land Tax relief for Retail & Commercial Landlords

Retail and commercial landlords in New South Wales who provide reductions in rent to financially distressed tenants impacted by COVID-19 may be eligible for a reduction in their 2021 land tax liability. A landlord will be eligible for up to a 100% reduction on their 2021 land tax for the parcel of land for which they grant the rental relief. The land tax reduction provided will be up to the amount of rent relief provided by the landlord. Eligible landlords are defined as:

• Those leasing to a retail or commercial tenant, who has an annual turnover of up to $50 million and is eligible to be approved for the Micro-business COVID-19 Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver scheme; and
• Who reduces the rent of the affected tenant for any period between 1 July 2021 and 31 December 2021; and
• Has land tax attributed to the tenanted parcel of land for 2021.

If a landlord owns multiple parcels of land, the relevant land tax for each parcel will be calculated as follows:

The taxable value of the parcel of land divided by the aggregate taxable value of all parcels of land, multiplied by landowner’s 2021 land tax liability.

You may apply for the land tax relief through Service NSW. If you have not paid your land tax assessment for 2021, this will be partially or fully waived based on your entitlement. If you have paid your land tax assessment for 2021, this will be partially or fully refunded based on your entitlement.

Please note that information arising out of the COVID-19 issue is fluid and constantly changing every day. Should you have any questions, please do not hesitate to contact us on 9523 5535 or email property@southernwaters.com.au