Various state governments have offered land tax relief to landlords with tenants impacted by the COVID-19 pandemic. The benefits of the relief must be passed on to tenants in the form of reduced rents.
Western Australia: Commercial landlords in Western Australia who reduce rents of their small business tenants impacted by COVID-19 will have land tax relief via grants paid to the landlords equivalent to 25 per cent of their land tax bill. To be eligible, the commercial landlord must provide rent relief of a minimum of three months’ rent and freeze outgoings to small businesses that have suffered at least a 30 per cent fall in turnover due to the pandemic.
South Australia: Eligible commercial or residential landlords will be offered a 25 per cent reduction on their 2019-20 land tax liability on affected properties. They must be able to demonstrate that they have provided rent relief at least equal to the amount of the land tax reduction, since 30 March 2020, or that they will provide such relief up to 30 October 2020.
New South Wales: The 25 per cent reduction in land tax payable is also available to commercial and residential landowners in New South Wales for the 2020 land tax year, who have reduced the rent of their affected tenant by at least as much as the tax reduction.