You will note that our recently published Issue 9 of the State Taxation Series looked into land tax relief during the COVID-19 pandemic.
Shortly after Issue 9 was published, the Victorian Government announced further land tax relief for landlords on 20 August 2020 as part of its extension of the commercial and residential tenancy relief schemes until 31 December 2020.
The further land tax relief measures are as follows:
- Further land tax reduction for landlords.
In overview, this further relief is an increase in the land tax waiver to 50% from 25%.
Information published on the SRO website indicates that eligible landlords who satisfy the following criteria can apply for a 50% waiver of the property's 2020 land tax:
- Landlords of residential and commercial properties who provide a 50% or more outright rent waiver; and
- The rent waiver is for at least 3 months' rent.
- New 25% waiver for owner occupiers of commercial properties
The announcement on 20 August 2020 also introduced a new 25% land tax waiver for owner-occupiers of commercial properties.
To qualify for this new land tax waiver of 25%, published information on the SRO's website indicates that the owner occupier's business must satisfy the conditions in either of these two categories:
- For a licensed pub, club or restaurant under a general, full club or on-premises liquor licence:
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- At the premises level, annual turnover was no greater than $50 million in either the 2018-2019 or 2019-2020 financial year, and
- Turnover at that premises has reduced by at least 30% since March 2020.
- For other businesses:
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- Annual aggregated turnover was no greater than $50 million in either the 2018-2019 or 2019-2020 financial year, and
- They are eligible for, and participating in, the Australian Government's JobKeeper Payment.
You will be required to apply for this further relief, even if you have previously applied for a 25% waiver.
However, applications have been temporarily suspended while the system is being updated with the additional relief measures announced by the Victorian Government.
In the meantime, if you have not already registered for My Land Tax, you will need to register and subscribe to land tax updates to be notified when applications can be lodged.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
