Updated: Sep 28, 2021
If you're a commercial or residential landowner who has reduced your tenants' rent due to COVID-19, between 1 July 2021 and 31 December 2021, you may be eligible for the NSW Government's land tax relief.
The relief will be a reduction in the 2021 tax payable on the parcel of land where rent relief has been given to the tenant who occupies that land.
You can apply online at https://mybusiness.service.nsw.gov.au/transactions/land-tax-relief/ready-to-start
(See the recommended 14-step process for How to Apply on the Service NSW website.)
The land tax reduction will be the lesser of:
the amount of rent reduction you provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
100 per cent of the land tax attributable to the parcel of land leased to that tenant.
Land tax relief will:
be paid to you as a refund if you've already paid your land tax
be used to offset the balance of the amount of land tax payable if you have not yet completed payment.
Note: A residential tenancy support payment for properties tenanted in NSW is also available. If you're a residential landlord, you can apply for either the land tax relief or the residential tenancy support payment. You cannot apply for both, so you'll need to decide which is more appropriate for you, before applying.
Eligibility To be eligible for relief on your 2021 land tax, you'll need to:
be leasing property on your parcel of land to:
a commercial tenant who has:
an annual turnover of up to $50 million, and is eligible for the:
Micro-business COVID-19 Support Grant
2021 COVID-19 NSW Business Grant and/or
JobSaver scheme, or
a residential tenant who has lost 25% or more of household income due to COVID-19.
have reduced the rent of the affected tenant for any period between 1 July 2021 and 31 December 2021
have provided the rent reduction without any requirement for it to be paid back at a later date
have a 2021 land tax liability attributable to the parcel of land where the rent reduction has been given.
If you're not eligible for land tax relief you can request an extended payment arrangement for your land tax if necessary.
Note: You can still apply for this period of land tax relief, even if you applied for any of the previous relief periods, provided you meet all the eligibility requirements. For an itemised list of information and proof of identity documents to make an application, please visit the Service NSW website. If you're eligible, this relief can reduce your land tax liability for 2021 by up to 100%. You can apply for multiple properties in a single application. However, you can only select one bank account per person.
Once you've submitted your application you'll receive a confirmation email. Revenue NSW will review your application and advise you of the outcome. If further information is required they will contact you.
You're able to apply for multiple properties at the same time.
Only select one bank account per person.
If there's been a change of circumstances or eligibility since your initial application, you can resubmit your application.
If you're submitting this application on behalf of a landlord, you'll need to have the authority to do so.
There is no requirement for rent reduction negotiations to have been concluded when you apply for land tax relief.
Providing false or misleading information will incur penalties.
Collins Hume can provide assistance to our clients as we have done with previous NSW grant programs. Please contact the team at Collins Hume in Ballina or Byron Bay on 02 6686 3000.
Source: Service NSW