COVID-19 NSW: Business, Individuals – COVID-19 Land Tax Relief

This program aims to provide relief to commercial and residential landowners, who provide a reduction in rent to a tenant who is experiencing financial distress as a result of COVID-19.

There are three relief periods for which a landowner can apply for relief:
1. Period 1
- A landowner providing a reduction in rent to a tenant between 1 April 2020 and 30 September 2020 can receive a reduction in land tax payable for the relevant parcel of land. The land tax reduction will be the lesser of:
a) The amount of rent reduction provided to an eligible tenant for any period between 1 April 2020 and 30 September 2020.
b) 25% of the land tax attributable to the parcel of land leased to that tenant.
- Applications close on 31 March 2021.

2. Period 2
- A landowner providing a reduction in rent to a tenant between 1 October 2020 and 31 December 2020 can receive a reduction in land tax payable for the relevant parcel of land. The land tax reduction will be the lesser of:
a) The amount of rent reduction provided to an eligible tenant for any period between 1 October 2020 to 31 December 2020.
b) 25% of the land tax attributable to the parcel of land leased to that tenant.
- Applications close on 31 March 2021.

3. Period 3
- A landowner providing a reduction in rent to a tenant between 1 January 2021 and 28 March 2021 can receive a reduction in land tax payable for the relevant parcel of land. The land tax reduction will be the lesser of:
a) The amount of rent reduction provided to an eligible tenant for any period between 1 January 2021 and 28 March 2021.
b) 25% of the land tax attributable to the parcel of land leased to that tenant.
- Applications close on 30 April 2021.

Eligible applicants include commercial and residential landowners who must:
1. For 2020 applicants
- Be leasing property on their parcel of land to:
a) A commercial tenant who has an annual turnover of less than $50 million
b) Lost 30% or more of turnover due to COVID-19.
c) A residential tenant who has lost 25% or more of household income due to COVID-19.
- Have reduced the rent of affected tenants for any period between:
a) 1 April 2020 and 30 September 2020
b) 1 October 2020 and 31 December 2020
- Provided the rent reduction without any requirement to be paid back at a later date.
- Have a 2020 land tax liability that can be reasonably attributed to the parcel of land where the rent reduction has been given.

2. For 2021 applicants
- Be leasing property on your parcel of land to a commercial, retail tenant who has:
a) An annual turnover of less than $5 million.
b) Lost 30% or more of turnover due to COVID-19 (15% or more for not-for-profit tenants).
- Have reduced the rent of affected tenants for any period between 1 January 2021 and 28 March 2021.
- Provide the rent reduction without any requirement to be paid back at a later date.
- Have a 2021 land tax liability that can be reasonably attributed to the parcel of land where the rent reduction has been given.