Land Tax Relief To Help Landowners and Tenants Affected By COVID-19 Restrictions

18 AUG 2021


The NSW Government has announced that applications are now open for eligible Landlords who provide rental reductions to either residential or commercial Tenants in financial distress due to COVID-19, to claim Land Tax Relief or a Tenancy Support payment subject to meeting the relevant criteria. 

The purpose of the introduction of both the Land Tax Relief and Tenancy Support payments are to help reduce the stress and financial burden of the current COVID-19 restrictions affecting the State. Further, the introduction of these payments seeks to allow Landlords to assist their Tenants as much as possible by offering rent reductions and still ensuring that Landlords are also taken care of during these unprecedented times.

In accordance with the Land Tax Relief program, Landlords may be eligible to receive a reduction of up to 100% of their Land Tax liability for 2021.

To be eligible for a Land Tax Relief, Landlord must be leasing to:  

  1. 1.a commercial Tenant who: 
    1. 1.1has an annual turnover up to $50 million; and
    2. 1.2is eligible for either the 2021 COVID-19 Business Grant, JobSaver or the COVID-19 Micro-business Grant, or
    3. 2.a residential Tenant who has lost 25% or more of household income due to COVID-19.

In addition to the above criteria, the Landlord must have reduced rent for the affected Tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021. Both commercial and residential Landlords cannot require their Tenants to repay the reduced rent they claim through the rebates. 

Instead of claiming the Land Tax Relief, eligible residential Landlords may elect to claim a Residential Tenancy Support payment of up to $1,500.00 per tenancy agreement if they provided a reduction in rent from 14 July 2021 to 31 December 2021, to a residential tenant who has lost 25% or more of household income due to COVID-19. 

Applications for both the Land Tax Relief and Residential Tenancy Support Payment can be made online through the Service NSW website. 

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.

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