The NSW Government has reintroduced COVID-19 leasing regulations and announced new land tax concessions for landlords who provide rent relief to eligible tenants.
Land Tax Relief
Landlords who provide rent relief (ie, a waiver not a deferral of rent) to eligible tenants between 1 July 2021 – 31 December 2021 will be entitled to a reduction in their land tax payable for the 2021 land tax year.
The amount of the land tax reduction will be the lesser of:
- the amount of rent reduction provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021; or
- 100% of the land tax attributable to the parcel of land leased to that tenant.
To be “eligible” the tenant must
- occupy land in NSW under a retail or commercial lease;
- have an annual turnover for the 2020–2021 financial year of less than $50 million (including the turnover of any corporate group which the tenant is a member of); and