Land tax relief scheme - Application extended
It's safe to say that all experience a tough 2020. It was encouraging to see the positive side to things which brings us to some great news to landlords.
For NSW landlords who've reduced their tenant’s rent due to COVID-19, can still apply for the NSW Government’s land tax relief - those who have yet to apply can still do so with the submission date now extended until December 31.
What this relief means is that for any commercial or residential landlords whose tenants suffered set back, can 1) prove financial distress related to COVID-19 pandemic and 2) who have reduced their tenant’s rent for any period between 1 April, 2020 and 30 September, 2020 can apply to his scheme.
The criteria as follows:
i) commercial tenants must have an annual turnover of less than $50 million, and have lost 30 per cent or more of turnover due to COVID-19.
ii) residential tenants need to have lost 25 per cent or more of household income due to COVID-19.
iii) This scheme is only applicable to landlords who provided the rent reduction without any requirement to be paid back at a later date.
What this results are either:
i) A landlord’s 2020 land tax liability may be reduced up to 25%
ii) allowing them to defer their land tax payments by up to three (3) months
ii) allowing them to defer their land tax payments by up to three (3) months
iii) provide a refund on the amount of rent reduction a landlord has given a tenant
iv) or reduce the amount of 2020 land tax payable if the landlord has not yet completed payment.
