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Frequently asked questions

07 May 2020

Answers to your questions about the government's tax relief measures in response to COVID-19.

Land tax

Will land tax be waived due to the COVID-19 pandemic?

While there is currently no moratorium on land tax, Revenue NSW has put in place several measures to assist taxpayers, such as extending deadlines for payments and applying leniency for late payment.  

If you would like to apply for an extension, or request an instalment plan, please go to www.revenue.nsw.gov.au/instalment. If the instalment plan cannot be approved online, you will be notified, and one of our Tax Debt team will contact you to discuss your application.

I am a landlord and my tenants are unable to pay rent due to COVID-19. Can my land tax payments be deferred/suspended as a result of this loss of income?

We acknowledge this is a difficult time and as part of the Government’s response to the Novel Coronavirus (COVID-19) pandemic, Revenue NSW continues to work to ensure the best economic outcomes for the people of NSW. 

Revenue NSW has put in place several measures to assist taxpayers, such as extending deadlines for payments and applying leniency for late payment. If you would like to apply for an extension, or set up an instalment plan, please go to www.revenue.nsw.gov.au/instalment. If the instalment plan cannot be approved online, you will be notified, and one of our Tax Debt team will contact you to discuss your application.

I paid my land tax prior to the COVID-19 pandemic. Now my circumstances have changed. Can I get a refund?

We will not provide a refund of payments already made. However, for any outstanding balance, if you would like to apply for an extension, or request an instalment plan, please go to www.revenue.nsw.gov.au/instalment. If the instalment plan cannot be approved online, you will be notified, and one of our Tax Debt team will contact you to discuss your application.

If I set up an Instalment Plan can I still receive the land tax discount?

Customers who prefer to pay by instalments are not entitled to receive the land tax discount and will accrue interest on any overdue debt. To be eligible to receive the land tax discount customers must pay the Notice of Assessment in full by the due date. To set up an instalment plan please go to www.revenue.nsw.gov.au/instalment.

I am not a Permanent Resident of Australia and due to the COVID-19 pandemic, I am unable to return to Australia. This means I will not be in Australia for 200 days. Is there any leniency in regards to Foreign Surcharge?

Under the legislation the Chief Commissioner does not have any discretion in relation to the 200-day rule. If a person has not been in the country for 200 or more days, they cannot be deemed as ordinarily resident.

I am building my home, however due to COVID-19 building work has been delayed. Can I get an extension of time to complete construction?

Under Section 1A, Clause 6 of Land Tax Management Act 1956, the Chief Commissioner does not have any discretion to extend the 4 year period for this exemption.

Payroll tax

As part of its package of economic stimulus package in response to COVID-19 (coronavirus), the NSW government announced a number of measures.

Payroll tax discount for businesses with total grouped Australian wages of no more than $10million for the 2019-20 financial year

What return periods does the six-month payment deferral apply to?

You can defer your monthly payments for the March, April, May, July, August and September 2020 periods. No action is required if you defer these payments.

Do I still need to lodge my 2019/20 annual reconciliation?

Yes, you're still required to lodge your annual reconciliation, however, the due date for the 2019/20 annual reconciliation has been extended to 30 October 2020.

What happens after the six-month deferral period?

Between 26 October 2020 and 29 November 2020 customers can enter into a Payroll Tax Stimulus Arrangement.

Can I still make a monthly payment?

Yes, you can continue to make your monthly payments.

Do I need to enter my wage details in the monthly calculator?

No, you're not required to enter your wage information or advise us of your monthly liability.

However, if you normally use the monthly calculator, you can continue to do so as it will help when completing the annual reconciliation.

If my monthly tax liability is less than the threshold, do I still need to lodge a nil return like I normally would?

No, you're not required to lodge a nil return for March, April, May, July, August or September 2020.

I have set up direct debit after using the estimate method to calculate my monthly payments for the year. Do I have to cancel these?

Yes, you'll need to log onto the payroll tax online service to cancel all future payments.

Can I get my refund for the reduction now, or do I have to wait until the end of the financial year?

The reduction will be applied when you lodge your 2019/20 annual reconciliation and, if you're entitled to a refund, it will be paid at that time.