The NSW Government has pledged to continue supporting commercial landowners by extending the deadline by which an application must be lodged for the 2021 COVID-19 land tax relief package to 31 May 2021. The program, which provides financial relief to landowners who have reduced their rent for a tenant experiencing financial stress resulting from the coronavirus pandemic, endeavors to keep many individuals across the state afloat, at least for the time being. Unlike the 2020 program, the package can reduce the land tax owed by a landlord by up to 25% in the 2021 land tax year and will apply to commercial properties only, as opposed to reducing land tax by up to 50% on both residential and commercial properties, which the 2020 program offered.
To be eligible for support, the landowner must:
- Have a commercial lease on a parcel of land with a retail tenant with an annual turnover of less the $5 million;
- Have a tenant who is in financial distress due to COVID-19 because of a reduction of turnover (at least 30% for profitable bodies, and 15% for non-profit) in the quarter ending 30 December 2020
- Have reduced their tenant’s rent between 1 January 2021 and 28 March 2021; and
- Owe land tax on the parcel of land being leased to their tenant for the 2021 land tax year.
The relief will be calculated based on a landowner’s land tax liability at the time an application is lodged but promises to recalculate shall an applicant’s financial circumstances change.