Does the land tax relief apply to Surcharge Land Tax?
No. There is no relief being applied to Surcharge Land Tax under this program.
If my application for relief is approved, will I be reassessed for land tax?
If your application for relief is approved, your land tax will not be reassessed for 2020. Your land tax account will instead, be credited with the amount of relief granted. If this results in your account having an overall credit balance, you will receive a refund. If not, the credit will reduce your balance payable. You will receive a confirmation letter for the outcome of your application rather than an assessment notice.
I do not pay land tax. Am I eligible for the relief?
If you're a landowner and you don’t have a 2020 land tax liability, refer to the Service NSW website, which provides other NSW Government support options you may be eligible for.
Who will let me know the outcome of my application?
Revenue NSW will review your application and advise you of the decision.
I own land in a trust. Can I still apply for the land tax relief?
Yes. Landowners that are trusts can apply for relief under this program.
If I have lost income due to my property being vacant or my tenant moving out, am I still eligible for land tax relief?
No. The relief only applies where the reduction of rent has been given to an eligible tenant.
If I get a new tenant, am I still eligible for land tax relief?
Yes, provided that the new tenant meets the eligibility requirement for this program and a rent reduction is being given to the new tenant.
I am providing rental credits rather than a reduction of rent. Am I still eligible for land tax relief?
Yes. Providing a reduction in rent payable by an eligible tenant via rental credits is considered the same as a rent reduction for the purposes of this program; on the condition that the rental credits are not required to be paid back by the tenant at a later date.
If I have multiple tenants on a parcel of land, am I still eligible for land tax relief? What if not all of these tenants are eligible?
Yes. When completing your application, simply add up the total rent amounts and rent reductions relating to only the eligible tenants on that parcel of land and provide supporting documents for each of these tenancies.
How can a residential tenant demonstrate that they meet the requirements to have had a 25 per cent reduction in household income?
Evidence to support this can be demonstrated with documentation such as a statement from your tenants explaining how they have been impacted by COVID-19, a letter from an employer or accountant, bank statements, payslips or other financial statements.
Any other documentation that helps demonstrate eligibility will be considered.
How can a commercial tenant demonstrate that they meet the requirement to have had a 30 per cent reduction in turnover?
Evidence to support this can be demonstrated with documentation such as a statement from your tenants explaining how they have been impacted by COVID-19, a letter from an accountant, bank statements, BAS or other financial statements for comparative periods.
For example, documentation for the current month or quarter compared to the same month or quarter in the previous financial year.
Evidence the business meets requirements for JobKeeper can also be considered as the same eligibility criteria for reduction in turnover applies for both programs.
Any other documentation that helps demonstrate eligibility will be given consideration.
How can a commercial tenant demonstrate that they meet the requirement to have less than $50 million in annual turnover?
To be eligible, a commercial tenant must have had an annual turnover of less than $50 million in the 2018/2019 financial year. This can be demonstrated with documentation such as a letter from an accountant, a tax return, BAS or other financial statements. Any other documentation that helps demonstrate eligibility will be given consideration.
How does the requirement for commercial tenants to have less than $50 million in annual turnover apply if their commercial activities extend beyond the property where the rent relief is being given?
The requirement for commercial tenants to have less than $50 million in annual turnover to be eligible for relief under this program refers to the tenant’s annual turnover considering their total commercial activities, not just the commercial activities being conducted at the property where the rent reduction is being given. This includes internet sales.
How does the requirement for commercial tenants to have less than $50 million in annual turnover apply if they are part of a group of companies?
Where the commercial tenant who is being given a rent reduction is part of a group of companies (i.e. there is one or more companies that are related to the commercial tenant) the annual turnover of the group of companies must be less than $50 million to be eligible for relief under this program.
I am a lessee of land owned by Crown or Local Government. Am I eligible for land tax relief?
The lessee of Crown or Local Government land is deemed to be the owner for land tax purposes. Therefore, a lessee under these arrangements can only apply for relief if they are subleasing the land to an eligible tenant under this program.
If my commercial tenant is a franchisee, am I eligible for land tax relief?
Where a commercial tenant is a franchisee, the franchisee must meet the requirement to have less than $50 million in annual turnover to be eligible for relief under this program, however some franchise agreements and structures can result in the franchisee and franchisor being considered related companies which can impact eligibility.
Do Hotel Management Agreements meet the eligibility requirements for land tax relief?
Hotel Management Agreements are not considered an eligible ‘lease’ under this program.
Do hire agreements, licensing agreements or other similar contracts meet the eligibility requirements for land tax relief?
Hire agreements, licensing agreements or similar contracts that require payment of a fee or charge for use of a space are not considered an eligible ‘lease’ under this program.
Can I pay by instalments?
In addition to these measures, there are several options available, such as extending deadlines for payments and getting leniency for late payment.
Apply for an instalment plan
If the instalment plan can’t be approved online, we’ll contact you.
If I have a variable rent agreement, am I eligible for land tax relief?
Where a variable rent agreement is in place, a reduction in rent will only be considered under this program where it can be shown that the variable amount of rent normally due and payable under the terms of the lease is actually waived or reduced by the landlord (i.e. a reduced amount of rent being paid by the tenant in line with the standard terms of the variable lease agreement is not considered a rent reduction).
My tenant pays outgoings, such as utilities, rates or other fees and charges in addition to rent, as part of their lease agreement. Are these costs considered a rent reduction if they are waived or reduced?
Outgoings, such as utilities, rates, taxes or body corporate fees are not considered rent for the purposes of this program. As such, if a landowner provides a reduction or waiver of outgoings payable by a tenant, it won't be considered a rent reduction for the calculation of relief under this program.
Are rent reductions to sublessees considered for land tax relief?
Only rent reductions provided by the landowner to a tenant are considered for relief under this program. Reduction in rent given to subtenants or sublessees are not considered, except for in some crown lease situations.
