NSW Government: Land Tax Support Package

NSW Government Land Tax Assistance
The NSW Government is introducing measures to help commercial and residential landlords manage their rental properties.

At present, the Government have not finalised the specific documents required to apply for the reduction in land tax. However the information supplied would need to show your tenant is in financial distress as a result of COVID-19. These documents may include BAS statements, a letter from an accountant or evidence that the lease was reduced in response to this financial distress, such as copies of old and new tenancy/lease agreements that indicate rent reduction.

We ask that you start to prepare any supporting documents in readiness and we will advise you when the application process is released. Our partners and managers are available should you require assistance.

Basic Elements of the Land Tax Support Package
Includes a reduction of up to 25 per cent of the land tax payable in the 2020 land tax year. It’s available when:

• your land is used for business or residential purposes
• you’re leasing property to a residential tenant – or a business tenant with annual revenue of up to $50 million – who can demonstrate financial distress resulting from the COVID-19 outbreak
• you reduce the rent of the affected tenant by at least as much as the tax reduction
• the land tax is directly related to the property for which rent has been reduced.

Financial distress is considered to be:

• for commercial tenants – a 30 per cent drop in revenue
• for residential tenants – a 25 per cent drop in household income .

Further reading on the package can be found at Land Tax Support Package.