Though the 2020 COVID-19 rent relief schemes have now ended as of the end of March this year, many are still struggling to meet their ongoing obligations as the impact of pandemic continues.
In recognition of these ongoing difficulties, the Victorian Government is offering several relief measures to landlords in respect of their 2021 land tax. This relief is available to residential landlords and commercial landlords (whether for a single tenancy or multiple tenancies) as well as to commercial owner-occupiers.
- Landlords who have provided their tenants with rent relief for the period of 1 January 2021 to 28 March 2021 may be eligible for 25% reduction on the property’s 2021 land tax. The rent relief provided must be consistent with the Support to Landlords and Tenants package (residential) or Commercial Tenancy Relief Scheme (commercial).
- Landlords with multiple tenancies may apply for 2021 land tax relief for the whole of the property, rather than just the part occupied by tenants who have received rent relief.
- Owner-occupiers for commercial properties may be granted a 25% waiver of land tax and defer payment of the remainder to 30 November 2021 if one of the following applies:
- General commercial tenant- their annual aggregate turnover was not greater than $50M in either 2019-2020 FY or 2020-2021 FY AND they were eligible for JobKeeper in the March 2021 quarter; or
- Restaurants, pubs or clubs with a liquor licence- their annual turnover at the premises was not greater than $50M in either 2019-2020 FY or 2020-2021 FY AND turnover in December 2020 quarter was reduced by at least 30% when compared with the March 2020 quarter.
Get in quick if you wish to benefit from the above relief – applications close on 30 June 2021.
If you wish to discuss further, please contact us at NextGen Legal for more information.