The New South Wales government has announced a land tax relief for commercial and residential landlords whose rental incomes are affected due to the economic impacts of COVID-19.

The relief is available to landlords who have reduced their tenants' rent for any period from April to the end of September this year. Landlords whose tenants are in financial distress will also be allowed to apply for the relief.

Under the policy, eligible landlords will be given the following options:

  • reduce up to 25% of 2020 land tax liability
  • defer land tax payments by up to three months
  • provide a refund on the amount of rent reduction given a tenant
  • reduce the amount of 2020 land tax payable

NSW Minister for Finance and Small Business Damien Tudehope said the land tax concession is expected to be divided equally, with around $220m going to the commercial sector and $220m to the residential sector

"Eligible landlords will be able to apply for a land tax concession of up to 25% of their 2020 land tax liability on relevant properties so long as they pass on the full savings in the form of a rent reduction to their tenants," he said.

Qualified commercial landlords must be leasing their property to a tenant who has an annual turnover of less than $50m. The tenant should also prove that it has lost 30% or more of its turnover due to COVID-19.

Residential landlords whose tenants have lost 25% of more of their household income will also be eligible for the tax relief.

Landlords who are providing rent reduction must not require their tenants to pay back the difference at a later date.

According to NSW, landlords may apply for multiple properties at the same time.

The guide below shows what you need to do in order to apply for the NSW land tax relief:

Before applying for NSW land tax relief, make sure that you have all the documentary requirements

If you’re a  commercial or residential  landlord who has reduced  your tenants’ rent  due to COVID-19, you may be eligible for the NSW Government’s land tax relief.