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Overview
You may be eligible for one or more of the following land tax relief measures:
- a land tax rebate reducing land tax liabilities by 25% for eligible properties for the 2019-20 assessment year
- a waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year
- a 3 month deferral of land tax liabilities for the 2020-21 assessment year
Eligibility for the Land Tax Rebate
You may be eligible for the land tax rebate if at least one of the following circumstances applies to you. You are a landowner who leases all or part of a property to one or more tenants and all the following apply.
- The ability of one or more tenants to pay their normal rent is affected by the coronavirus (COVID-19) pandemic.
- You will provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax rebate.
- You will comply with the leasing principles even if the relevant lease is not regulated.
You are a landowner and all the following apply:
- All or part of your property is available for lease.
- Your ability to secure tenants has been affected by the COVID-19 pandemic.
- You require relief to meet your financial obligations.
- You will comply with the leasing principles even if the relevant lease is not regulated.
If you are eligible for the land tax rebate under both the above circumstances, it is expected you will apply the rebate paid firstly to provide rent relief to your residential or commercial tenants. You can then apply any remaining rebate to your own financial obligations (e.g. in relation to debt and other expenses).
The land tax rebate will only apply to each property that meets the above eligibility requirements and conditions, rather than the rebate applying to entire taxable landholdings.
Where there are multiple tenants for a single property, including mixed-use developments, if the eligibility requirements and conditions are met for at least one tenancy, then the whole property is eligible for the land tax rebate.
The land tax rebate does not need to be repaid if the eligibility requirements and conditions are met.
You can apply for the land tax rebate up to 30 June 2020.
For more information and how to apply click here.
If you have any questions with regards to COVID-19 Land Tax Relief or would like to organise a phone meeting with an Accountant, please contact us.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
