Further to our previous updates on the commercial leasing measures which the NSW Government has been implementing in response to the COVID-19 pandemic, the NSW Government has now provided further relief in the form of a $440 million package to relieve the land tax obligations for both residential and commercial properties.
In summary, the package allows landlords to claim a 25% reduction in land tax provided that the following 3 criteria are satisfied:
- The property is leased to either a:
- Residential Tenants – where the tenant has suffered at least a 25% drop in household income as a result of the COVID-19 pandemic; or
- Commercial tenant – where the tenant operates its business from the premises, has suffered at least a 30% drop in revenue and has annual turnover of less than $50 million.
- The Landlord has reduced the rent by at least the same amount as the amount of the land tax reduction; and
- The land tax relief relates specifically to the property being leased by the Tenant.
Landlords and tenants are both well advised to ensure that the application for the land tax reduction is lodged with Revenue NSW.
If you would like any further information in respect of Land Tax relief now available, please don’t hesitate to contact our office on (02) 9525 8688.