The Victorian Government recently announced the extension of land tax reduction and deferral relief measures to 2021 land tax.
2021 Land tax reduction and deferral for residential landlords
The 25% land tax relief for residential landlords previously announced in April 2020 has been extended to the 2021 land tax.
Residential landlords who provide their tenants with rent reductions in 2021 consistent with the Support to Landlords and Tenants package between 1 January 2021 and 28 March 2021 may be eligible for a 25% reduction on the property’s 2021 land tax (exclusive of any absentee owner surcharge)
Eligible landlords can also defer the remainder of their 2021 land tax assessment until, or before, 30 November 2021 – and will also have the option of deferring the remainder of their 2020 land tax until that time.
Eligible residential arrangements include tenancy agreements, specialist disability accommodation agreements and site agreements.
Applications for 2021 land tax reduction and deferral for residential landlords, and landlords of properties with multiple tenancies are currently open and will close on 30 June 2021.
For more information on the 2021 coronavirus land tax relief eligibility and application process, please refer to the following link:
https://www.sro.vic.gov.au/land-tax/apply-2021-coronavirus-land-tax-relief
2021 Land tax reduction and deferral for commercial landlords
Commercial landlords who provide rent relief to eligible tenants consistent with the Commercial Tenancy Relief Scheme between 1 January 2021 and 28 March 2021, and eligible commercial owner-occupiers of property, who have been impacted by the coronavirus pandemic, can receive a 25% reduction on the property’s 2021 land tax and defer the remaining 2021 land tax (and any 2020 land tax which was previously deferred under this measure) until 30 November 2021.
For commercial landlords to be eligible, they must have the tenant declare that they meet the conditions in either of the following two categories:
- For a tenant conducting a general business they must be eligible for the Commercial Tenancy Relief Scheme:
a. annual aggregate turnover no greater than $50 million in either the
2019-2020 or 2020-2021 financial year; and
b. be eligible for, and participating in, the Australian Government’s JobKeeper
Payment in the March 2021 quarter. - For a tenant operating a licensed pub, club or restaurant that is not eligible under the first category:
a. they must be operating under a general, full club or on-premises liquor
licence as a commercial tenant.
b. their annual turnover was no greater than $50 million in either the
2019-2020 or 2020-2021 financial year; and
c. turnover at that premises in the December 2020 quarter reduced by at least
30% relative to the March 2020 quarter.
The tenant can make the declaration by completing a commercial tenant details SmartForm and emailing to the landlord.
Applications for 2021 land tax reduction and deferral for commercial landlords of properties with a single tenancy, and owner-occupiers are not yet open. Further information will be provided on the State Revenue Office website as it becomes available.
For more information on the 2021 coronavirus land tax relief in Victoria, please refer to the following link:
https://www.sro.vic.gov.au/2021-coronavirus-land-tax-relief
Similar coronavirus land tax relief measures for the 2021 land tax may be available for other States. Please contact us to discuss if you have properties in other States.
2020 land tax relief application
As a reminder, the closing date for the 2020 land tax relief application in Victoria is 31 March 2021.
For further information on the 2020 coronavirus land tax relief in Victoria, please refer to the following link:
https://www.sro.vic.gov.au/land-tax/apply-2020-coronavirus-land-tax-relief
Please contact your Blaze Acumen advisor if you have any questions in relation to the coronavirus land tax relief measures.