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New South Wales land tax relief measures

New South Wales land tax relief measures

Mat Quirk

In response to the COVID-19 pandemic, the NSW Government is introducing measures to help commercial and residential landowners who pay land tax within NSW. While there is no moratorium in place for land tax, the support package includes a number of measures to assist landowners including;

  • A discount on payable land tax, up to 25%
  • Extending deadlines for payment, and
  • Leniency for late payment  

The discount package is available where:

  • The land is used for business or residential purposes, and
  • The property, on that land, is being leased to a residential tenant, or a business tenant with annual turnover of up to $50 million - who can demonstrate financial distress resulting from the COVID-19 outbreak, and
  • You reduce the rent of the affected tenant by at least as much as the tax reduction, and
  • The land tax is directly related to the property for which rent has been reduced.

Financial distress is considered by the NSW Government to be;

  • Where revenue has declined due to the COVID-19 pandemic
  • 30% revenue decline for commercial tenants
  • 25% revenue decline in household income for residential tenants

For commercial landlords the NSW Treasurer announced additional measures for tenants in commercial leases who are in financial distress due to COVID-19.  The measures will apply to business tenants who have a turnover of less than $50 million and have had a reduction in turnover of 30% or more.

Landlords with tenants meeting these conditions will be eligible to apply for a land tax concession of up to 25% of their 2020 land tax liability for the relevant properties affected, and defer any outstanding tax for a 3 month period.

These measures will only be provided to landlords provided they pass on the savings to their tenants through a reduction of their rent. Taxpayers can apply for extensions or arrange a payment plan by visiting the Government
Those who elect, or apply, to pay their land tax by instalments, are not entitled to receive a land tax discount. The discount is only available to taxpayers who pay the tax in full by the due date on the assessment.
If you have paid your land tax prior to the COVID-19 pandemic, you will not be able to request a refund for land tax that has already been paid.