The NSW Government has unveiled a $440 million land tax package to assist landlords and tenants as they deal with a downturn as a result of virus-related restrictions.
If you are a Landlord with commercial premises read on
25% Land Tax Concession
Landlords will be able to apply for a concession of up to 25 per cent of their land tax liability but it must be passed on to tenants suffering from the economic impacts of COVID-19.
Land Tax Deferral
Landlords will also be able to defer payment of any outstanding land tax for three months.
Land Tax Relief is available when:
- you have a land tax liability in 2020
- your tenant has annual turnover up to $50 million and can demonstrate financial distress resulting from the COVID-19 outbreak*
- you have reduced the rent by at least as much as the tax reduction
- the land tax is directly related to the property for which rent has been reduced.
Revenue NSW has indicated that you will need to provide supporting documents if you wish to apply for the reduction including:
- evidence that your tenant is in financial distress as a result of COVID-19
- BAS statements, or
- a letter from an accountant.
- evidence that the lease was reduced such as copies of old and new tenancy/lease agreements that indicate rent reduction.
*Note: Financial distress is considered to be a 30 per cent drop in revenue due to COVID-19 pandemic.
Clark McNamara Lawyers is preparing Rent Deferral Deeds that will protect the interests of Commercial Landlords.
Contact Peter McNamara today if you require assistance.