Since late June, the stay-at-home orders have taken a heavy toll on the people of New South Wales. Many people were forced to stop work; businesses are trying to stay afloat; and many have struggled to pay rent. To revive the economy and offer financial relief for the people, the New South Wales government has introduced a variety of measures.
On 14 July 2021, the 2021 land tax COVID-19 relief (1 July 2021 to 31 December 2021) was announced to reduce commercial and residential landowner’s land tax payable for 2021, by up to 100 per cent. This article will explain to you everything you need to know about the 2021 land tax COVID-19 relief, including the eligibility criteria, the amount of relief available, how to apply and how you receive the relief.
Commercial landowners and residential landowners have slightly different eligibility criteria.
Commercial landowners are eligible if:
- The commercial tenant has an annual turnover of up to $50 million and is eligible for the Micro-business COVID-19 Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver scheme;
- The landowner reduces the rent of the affected tenant for any period between 1 July 2021 and 31 December 2021; and
- For 2021, the landowner has land tax attributable to the parcel of land leased to that tenant.
Residential landowners are eligible if:
- The residential tenant who has had a reduction in household income of 25 per cent (or more) as a result of COVID-19;
- The landowner reduces the rent of the affected tenant for any period between 1 July 2021 and 31 December 2021;
- For 2021, the landowner has land tax attributable to the parcel of land leased to that tenant; and
- The landowner is not claiming the Residential Tenancy Support Payment.
Amount of relief
The land tax reduction will be the lesser of:
the amount of rent reduction provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
100 per cent of the 2021 land tax attributable to the parcel of land leased to that tenant.
How to apply
Applications for land tax relief are available now via Service NSW and will be open until 31 January 2022.
How you receive the relief
If you haven’t completed payment of your land tax for 2021, the relief granted will be used to offset the balance of land tax you have left payable. If your land tax for 2021 has been paid in full, the reduction can be refunded to you.
Grappling with the consequences of the Coronavirus outbreak has not been easy for anyone. Landowners who pay land tax every year can seek financial relief in the latest measure by the NSW Government. The measure will also ease the pressure felt by commercial and residential tenants during the current economic downturn. If you meet the above the criteria, feel free to contact our office and we can prepare the application for you.
Ge Wu is the solicitor director of Legal Point Lawyers & Attorneys. He has been admitted to practise law since 2005. Throughout his practice, Ge Wu predominantly practises in the areas of Property Law, Immigration Law, Commercial Law, Civil Litigation and Family Law.
His experience covers all aspects of property law, commercial/retail lease, immigration law and civil litigation, while at the same time, he also has experience in family law, criminal law and other areas such as will-drafting and general advice.
He has frequently been instructed by corporate clients in pre-acquisition due diligence reports, structuring property development, land/shopping centre acquisitions, G.S.T. and stamp duty advice for buying/selling businesses, as well as share transfers and company re-structures.
Ge Wu has been appointed as Notary Public since 2011 and started to provide Notary Public service to clients from different cultural backgrounds.
Daniel’s expertise spans civil litigation, criminal law and real property matters.