Introduction
If you are a commercial or residential landlord and have suffered a reduction in rental income from tenants due to COVID-19, you may be eligible for the NSW Government’s land tax relief.
This measure was announced in early April and was the subject of one of our earlier newsletters.
We can now advise the application process has been made available and like the NSW small business COVID-19 support grant of $10,000, the application process is via an online application via Services NSW.
Relief is available to landlords:
- whose tenants can prove financial distress due to COVID-19, and
- who have reduced their tenants’ rent for any period between 1 April 2020 and 30 September 2020.
If eligible, the relief available may:
- reduce up to 25% of your 2020 land tax liability
- defer your land tax payments by up to 3 months
- provide a refund on the amount of rent reduction you’ve given a tenant, or
- reduce the amount of 2020 land tax payable if you have not yet completed payment.
Eligibility
To be eligible, you will need to:
- be leasing property on your parcel of land to:
- a commercial tenant who has:
- an annual turnover of less than $50 million, and
- lost 30% or more of rental income due to COVID-19.
- a residential tenant who has lost 25% or more of household income due to COVID-19.
- a commercial tenant who has:
- have reduced the rent of affected tenants for any period between 1 April 2020 and 30 September 2020
- provided the rent reduction without any requirement to be paid back at a later date
- have a 2020 land tax liability that can be reasonably attributed to the parcel of land where the rent reduction has been given.
Please note you are not eligible for this relief if you have negotiated with tenants that any rent relief provided currently is required to be paid back later.
Alternatively you can apply through Revenue NSW to request an extended payment arrangement for your land tax if necessary. You will need your Client ID and Correspondence ID found on your land tax assessment to apply online for this relief.
Once you have self-assessed and are satisfied the above eligibility criteria has been met you will need to follow the steps below and have the following documentation;
- a MyServiceNSW Account
- your proof of identity ***
- application contact details
- your land tax client ID
- your land tax correspondence ID
- the land details the relief is being applied for
- Electronic Funds Transfer (EFT) details
- evidence of your rental reduction. This can include:
- copies of tenancy agreements proving rental reduction
- rental ledgers
- a letter from your property manager
- evidence of your tenants’ financial distress due to COVID-19. This can include:
- their financial statements
- a letter from your tenants’ accountant or property manager.
Note: If further documentation is required, Revenue NSW will contact you. You must have your tenants’ permission to share their information with Revenue NSW.
***Proof of identity
Two forms of identity documents are required. The most common acceptable ones include:
- Australian drivers licence
- Medicare card
- Australian passport
- Australian birth certificate
Note: Your proof of identity documents will be digitally verified using the Document Verification Service (DVS). The Australian Government’s DVS verifies key government-issued documents.
How to apply
- Check the eligibility criteria.
- Gather the required documents.
- Select the ‘Apply online’ button.
- Log in or create your MyServiceNSW Account.
- Select and verify your identity documents.
- Enter your contact details. Revenue NSW will use these details to get in touch with you if they need to.
- Enter your land tax client and correspondence ID.
- Select which property the land tax relief is being claimed for.
- Select if your tenant is residential or commercial.
- Enter your rental reduction details.
- Upload supporting documents that show the rental reduction.
- Enter your bank details.
- Review your application.
- Select the Declaration boxes and submit your application.
Note: After submitting your application you’ll receive a confirmation email. Revenue NSW will review your application and advise you of the outcome. If extra information is required they will contact you.
More information
- 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.
- Providing false or misleading information will incur penalties.
