Please note: An updated article as at 1 September 2020 summarising the COVID-19 measures can be found here.

Summary of Land Tax Measures Across Australia

State and territory revenue offices continue to make announcements in response to the COVID-19 crisis. Relevant to many taxpayers will be the numerous land tax changes. The changes include rebates, waivers and deferrals for eligible taxpayers.

Below is a high level summary of these measures as at 21 April 2020.

Victorian land tax relief in the midst of the COVID-19 pandemic

The Victorian Government announced on 15 April 2020 that it will implement a $500 million stimulus package and introduce emergency legislation, which will look to supporting both tenants and landlords through this unprecedented crisis.

Announcements indicate that the emergency legislation this will include:

• Land tax relief for landlords;

• A temporary ban on evictions;

• Pausing of rental increases for 6 months; and

• Rent relief for tenants experiencing financial hardship.

To manage the increased workload generated by these measures the Government has advised that a new Coronavirus Relief Deputy Commissioner role will be established at the State Revenue Office to manage the land tax relief claims.

It is expected that legislation will be introduced into Parliament by next Thursday, 23 April 2020. We will provide updates as more details come to hand. A summary of the details, as currently understood are noted below.

Land tax relief for landlords

Landlords may be able to access:

• A 25% discount on their land tax if they provide rent reliefs to tenants impacted by the coronavirus; and

• A deferral of any remaining land tax until March 2021.

It is noted that these measures are in addition to the Revenue Office’s existing deferral for land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million.

Rent relief for tenants experiencing financial hardship

Business with an annual turnover of under $50 million per year and have experienced more than a 30% reduction in turnover due to the coronavirus will be eligible for rental waivers or deferrals.

The Government advised that it will also create an $80 million rental assistance fund for renters facing hardship due to the coronavirus. To be eligible, renters will need to:

• Register their revised agreement with Consumer Affairs Victoria or gone through mediation;

• Have less than $5,000 in savings; and

• Be paying at least 30% of their income in rent.

If you have any questions please contact our specialist team at:

Denise Tan
Senior Associate
T +61 3 9611 0160 | M +61 438 714 965
E dtan@sladen.com.au

Laura Spencer
Senior Associate
T +61 3 9611 0110
E lspencer@sladen.com.au

Phil Broderick
Principal
T +61 3 9611 0163  l M +61 419 512 801   
E  pbroderick@sladen.com.au