Support available for Commercial & Residential Landlords
COVID-19 LAND TAX RELIEF
If you’re a commercial landowner who has reduced your tenants’ rent due to COVID-19, between 1 July 2021 and 31 December 2021, you may be eligible for the NSW Government’s land tax relief.
The relief will be a reduction in the 2021 tax payable on the parcel of land where rent relief has been given to the tenant who occupies that land.
The land tax reduction will be the lesser of:
the amount of rent reduction you provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
100 per cent of the land tax attributable to the parcel of land leased to that tenant.
Land tax relief will:
be paid to you as a refund if you've already paid your land tax
be used to offset the balance of the amount of land tax payable if you have not yet completed payment.
NEW SUPPORT FOR COMMERCIAL LANDLORDS
Hardship Fund
A new $40 million Hardship Fund will be established to provide a monthly grant of up to $3,000 for small commercial or retail landlords who provide rental waivers of at least the value of the grant and any land tax relief they are eligible for.
More information for landlords on this package will be available soon.
National Cabinet’s Mandatory Code of Conduct for Commercial Leasing
The Retail and Other Commercial Leases (COVID-19) Regulation 2021 will be extended until 13 January 2022 and will require landlords to renegotiate rent having regard to National Cabinet’s Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. Of the rent relief provided, at least 50 per cent must be in the form a waiver, and the balance a deferral.
Residential landlords can apply for either of the following; the residential tenancy support payment or the COVID-19 land tax relief. They cannot apply for both.
RESIDENTIAL TENANCY SUPPORT PAYMENT
The residential tenancy support payment is available to eligible landlords who agree to reduce the rent of COVID-19 impacted tenants from 14 July 2021.
The support payment will be made directly into the account of the landlord or their managing agent.
Landlords can make separate claims for each rental property they own. If they receive payment, they cannot ask the tenant to repay the amount they received.
The amount per tenancy agreement has been increased from the original $1,500 and is now capped at $4,500, or the amount of reduced rent from 14 July 2021, whichever is lower.
If you've already applied for the $3,000 you'll need to lodge a new claim of up to $1,500. You can only claim the further reduction that you've passed onto your tenant(s) or the additional $1500, whichever is the lower.
Residential landlords can apply for either the residential tenancy support payment or the COVID-19 land tax relief. They cannot apply for both.
Eligibility
To be eligible for the payment, you must:
be a landlord or managing agent
have proof of the residential tenancy agreement(s) with your tenant(s) such as:
a rental bond number, or
a written tenancy agreement if no bond has been lodged.
have reduced the rent for your COVID-19 impacted tenant(s) from 14 July 2021.
In addition:
the property that is the subject of the application must be the tenant’s principal place of residence
residential premises that are being used for commercial purposes, such as short-term rental accommodation or as a serviced apartment are NOT eligible for the payment
residential premises that are being used as a boarding house or other shared accommodation arrangement are also NOT eligible for the payment.
COVID-19 LAND TAX RELIEF
If you’re a residential landowner who has reduced your tenants’ rent due to COVID-19, between 1 July 2021 and 31 December 2021, you may be eligible for the NSW Government’s land tax relief.
The relief will be a reduction in the 2021 tax payable on the parcel of land where rent relief has been given to the tenant who occupies that land.
The land tax reduction will be the lesser of:
the amount of rent reduction you provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
100 per cent of the land tax attributable to the parcel of land leased to that tenant.
Land tax relief will:
be paid to you as a refund if you've already paid your land tax
be used to offset the balance of the amount of land tax payable if you have not yet completed payment.