The NSW Government has introduced further land tax relief measures for the 2021 Land Tax Year to landlords who provide rent relief waivers to tenants experiencing financial distress due to the COVID-19 pandemic.
For a landlord to be eligible for relief for the 2021 Land Tax Year the following criteria apply and must be met by a landlord:
A tenant of Crown or Local Government land that is deemed to be an owner for land tax purposes under the Land Tax Management Act 1956 (NSW) may also apply for relief if they are subleasing the land to an eligible tenant as described above.
The land tax relief will be a reduction in the 2021 land tax payable on the parcel of land where rent relief has been given to the tenant who occupies that land and will be the lesser of:
Any land tax relief provided to a landlord by Revenue NSW for the 1 January 2021 – 28 March 2021 relief period of which applications closed on 31 May 2021 will be taken into account when applying for relief under these updated measures. Therefore, the maximum land tax relief a landlord may claim for the 2021 Land Tax Year is 100 percent of land tax payable for the 2021 Land Tax Year.
The land tax relief will:
There is no requirement for rent reduction negotiations to be concluded or for all rent reductions to have been waived when applying for land tax relief however if circumstances do change following submission of any application updated information will need to be provided to Revenue NSW immediately.
At Gadens, our Real Estate and Construction Team and Tax Team are well equipped to advise and assist clients with queries relating to rent relief negotiations and any tax relief. We are here to help and invite you to contact our office should you require any assistance.
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Archie Smith, Partner
Belinda Drivas, Senior Associate