The NSW Government has introduced further measures to assist the financial management of your rental properties.
In particular, they are reducing land tax payable on eligible residential and commercial properties up to 25% for the current land tax year. To be eligible:
- you must have a land tax liability in the current land tax year,
- your property must be used for a residential or business purpose,
- you are leasing the property to a tenant who can show they are experiencing financial distress as a result of the COVID-19 pandemic,
- you reduce the rent payable from your tenant by at least as much as the reduction you receive on land tax, and
- the land tax payable directly relates to the rental property in question.
In line with other government measures to manage the effects of the pandemic, a commercial tenant must be able to demonstrate a 30% drop in revenue, and residential tenants must demonstrate a 25% drop in household income.
The application process is currently not available, but it appears the reduction will be received by way of a refund after land tax has been paid. To assist with paying land tax, Revenue NSW also has an option to apply for an instalment plan or receiving leniency for late payment of land tax.
How can we help?
We will continue to monitor announcements from Revenue NSW and provide an update as soon as we know further. If you have any questions in the meantime, don’t hesitate to contact one of our Property Lawyers on
1300 553 343.