Sad evicted roommates moving home complaining

COVID-19 Rent Relief and Land Tax

Luke Mitchell ||

In New South Wales, we have been waiting eagerly for the New South Wales government to introduce measures to provide land tax relief in relation to commercial leasing transactions.

Finally, the New South Wales government in the past week has confirmed that a landlord will receive a reduction in their land tax for the 2020 year on the basis of the lesser of the amount of rent reduction provided to a tenant for any period between 1 April 2020 and 30 September 2020, and 25% of the land tax attributable to the parcel of land leased to the tenant.

If a landlord receives a reduction under the above measure, they are also able to have their outstanding land tax payments deferred for up to three months.

Importantly, a landlord is only eligible for this land tax relief if they are leasing a parcel of land to a commercial tenant who has an annual turnover of up to $50,000,000.00, and the tenant is in financial distress as a result of COVID-19.

A tenant is only considered to be in financial distress where, if they are a commercial tenant, they have a reduction in turnover compared to previous comparable periods of 30% (or more). The landlord is responsible for verifying that their tenant is in financial distress.

Also, the rent reduction must not be required to be paid back at a later date. If a reduction in rent is provided that is required to be paid back at a later date, this is considered to be a deferral in rent and will not be considered as a reduction in rent for the purposes of this scheme.

Whether you are a tenant or a landlord and require assistance, please do not hesitate to contact a member of Coleman Greig’s Commercial Property team, who would be more than happy to assist you today.


Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.


More posts

Understanding roles in the strata scheme

A strata scheme is a building or group of buildings that have been divided into lots which can be apartments, villas, offices, units or townhouses. This will be articulated in the strata plan.

Can i put my home on Airbnb?

Airbnb is a form of short-term rental accommodation. To add your property to Airbnb in NSW, you are required to meet several laws and regulations governing short-term rentals.

When are liquidators required to seek approval to retain legal counsel?

When does a liquidator (or the company he or she is appointed to) need court, creditor, or committee approval to validly retain a solicitor to act in a liquidation matter which is likely to extend for longer than three months?  The answer to this question has only recently been settled.

Proposed changes to building and construction law in NSW

The Building Bill 2022 (the Bill) is the key avenue through which the NSW Government has proposed to reshape the culture of the building and construction industry by eliminating poor performance and improving the quality of building statewide.

Can you dismiss an employee who fails to return to the office?

Slowly but surely, most employers are requiring employees to return to the office for at least a portion of their working week. Some employers continue to struggle with employees resistant to returning to the office or those who have an expectation that they can continue to work from home whenever it suits them.

New powers to combat phoenixing in construction

The rise of phoenixing in the building and construction industry in Australia in recent years has proved a significant challenge to regulators. Mismanagement of time or cashflow can quickly propel businesses into insolvency.

The NSW Building Commission’s extraordinary powers

In late 2023, the NSW Government passed the Building Legislation Amendment Bill 2023 (Amendment Bill). The Amendment Bill established the NSW Building Commission and granted it extraordinary powers to enter construction sites, inspect work and take away information and materials.

© 2024 Coleman Greig Lawyers   |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230