Land Tax Relief for Property Owners

Landowners can receive a reduction of up to 50 per cent of land tax payable in the 2020 land tax year, subject to eligibility. There are currently three relief periods for which landowners can apply:

Period 1: 1st April 2020 to 30th September 2020

Landowners that provided a reduction in rent to tenants in this period can receive a reductions in land tax payable. The land tax reduction is the lesser of

  • The amount of rent reduction provided to an eligible tenant in the period.
  • 25 per cent of the land tax attributable to the land leased to that tenant.

Tenant eligibility criteria for Period 1:

-Commercial tenants: a reduction in turnover of 30 percent (or more) when compared to a previous comparable period.

– Residential tenants: a reduction in household income of 25 percent when compared to a previous comparable period.

It is the landlord’s responsibility to verify that tenants are in financial distress.

Period 2: 1st October 2020 to 31st December 2020

Landowners that provided a reduction in rent to tenants in this period can receive a reductions in land tax payable. The land tax reduction is the lesser of

  • The amount of rent reduction provided to an eligible tenant in the period.
  • 25 per cent of the land tax attributable to the land leased to that tenant.

Tenant eligibility criteria for Period 2 (no change from Period 1):

-Commercial tenants: a reduction in turnover of 30 percent (or more) when compared to a previous comparable period.

– Residential tenants: a reduction in household income of 25 percent when compared to a previous comparable period.

Period 3: 1st January 2021 to 28th March 2021:

In the latest budget, the government announced an extension to the rent relief scheme.

This extension will only be made available to retail tenants with an annual turnover of less than $5 million who continue to experience financial stress due to Covid-19.

A tenant wishing to apply for this relief must demonstrate a 30 per cent decline in turnover (15 percent for not-for-profits) for the December 2020 quarter in order to re-establish eligibility. This relief only applies to retail leases.