Lax Tax Relief in Victoria
In response to COVID-19, the states and territories have announced a range of land tax measures to help landowners manage some of the challenges COVID-19 has presented. Each state and territory has different eligibility requirements and relief concessions.
On 15 April 2020, the Victorian Premier announced that eligible landlords will receive a 25% discount on their 2020 land tax and may defer the payment of their remaining 2020 land tax liability until 31 March 2021.
Landlords of commercial and residential properties who provide tenants impacted by COVID-19 with ‘rent relief’ may be eligible for the land tax relief. We note, however, that for landlords of commercial properties, the property must be rented to a tenant with an annual turnover of up to $50 million, the tenant's ability to pay their normal rent must be affected by COVID-19 and the tenant must be eligible for the Commonwealth Government’s JobKeeper Payment.
'Rent relief' requires that residential and commercial landlords pass on at least an amount equivalent to the 25% tax discount to their tenants.
This relief is also available to land owners who are unable to secure a tenant because of COVID-19.
Please refer to the following link for instructions on how to claim land tax relief – https://www.sro.vic.gov.au/land-tax/claim-coronavirus-land-tax-relief
Let’s Talk
For an in-depth discussion of how these initiatives might affect you and your business, please contact us on + 61 3 9527 5041.