Land Tax Relief for Landlords
The Victorian Government has announced land tax relief for landlords as part of its Economic Survival Package in response to COVID-19.
These are the details from the State Renevue Office...
If you are a commercial or residential landlord and you meet the eligibility criteria for tax relief, you can access the following:
- Landlords who provide rent relief to tenants impacted by COVID-19 could be eligible for a 25% reduction on 2020 land tax.
- This 25% land tax reduction is also available to land owners who are unable to find a tenant for their property due to COVID-19 (commercial and residential).
- Landlords can also defer the remainder of their 2020 land tax to 31 March 2021.
Land Tax Reduction
Commercial Landlords are eligible if:
- All or part of their property is rented or all or part of the property is currently available for lease, and
- At least one of the tenant’s ability to pay their normal rent or your ability to secure a tenant is affected by the COVID-19, and
- You have provided rent relief to the affected tenant/s in accordance with this scheme.
Landords will need to provide evidence of the above, including evidence that your tenant is eligible for the Jobkeeper Payment and have an
annual turnover of up to $50 million.
Residential Landords are eligible if:
- all or part of their property is rented or all or part of the property is currently available for lease, and
- that at least one of the tenant’s ability to pay their normal rent or your ability to secure a tenant is affected by the COVID-19, and
- you have provided rent relief to the affected tenant/s in accordance with this scheme..
Land Tax Defferal
Your 2020 land tax payment can be deferred until after 1 January 2021 and will need to be paid in full by 31 March 2021.
Land owners that have:
- At least one taxable non-residential property
- Total taxable landholdings below $1 million.
Non-residential property includes commercial property, industrial property, and vacant land (excluding residential vacant land).
The SRO will directly contact all taxpayers eligible for this assistance package.
FAQs - from SRO
How much rent relief do I need to provide on relevant property to get the 25% land tax reduction?
Commercial Landlords need to provide rent relief that is consistent with the National Cabinet Mandatory Code of Conduct for SME Commercial Leasing Principles during COVID-19, which was announced on 7 April 2020. This code requires tenants to be provided with relief in proportion to the tenant’s loss in turnover that they have experienced from the COVID-19 crisis.
For residential landlords, to be eligible for the 25% land tax discount, you will need to at least pass on the equivalent amount in rent relief to your tenant.
It sounds like I’m eligible. How do I apply for land tax relief as a landlord?
You apply through the State Revenue Office. The first step right now is for you to register on My Land Tax, at sro.vic.gov.au/mylandtax.
When will this be available?
Emergency legislation is to be put to the Victorian Parliament on Thursday 23 April 2020.
Can I still defer my 2020 land tax in full even if I don’t provide rent relief?
No. A landlord must provide their tenant impacted by coronavirus with rent relief in order to be eligible for the land tax reduction and deferral.
What if I have already paid my 2020 land tax and want to defer?
You can request a return of the tax paid. The tax will need to be paid in full by 31 March 2021.
The SRO will contact all eligible land owners and provide further information, including about how to request the return of your payment.
Does tax deferral relief apply to residential properties?
The measure applies to a land owner that owns at least one non-residential property and total taxable landholdings below $1 million. Eligible land owners can defer their entire assessment, which may include residential land.
How do I find my total taxable landholding?
Your property information, including your total taxable landholding, is available in My Land Tax, an online application that enables you to manage your land tax information quickly and easily.