Tax Relief

Property tax breaks to assist landowners and tenants affected by COVID-19 restrictions

Applications are now available for eligible commercial and residential landowners granting rental discounts to tenants in financial distress due to COVID-19 to apply for a property tax break or rental allowance payment as part of a series of measures implemented by the government of NSW were introduced to ease the stress and financial burden of COVID-19 restrictions.

Minister of Finance and Small Businesses Damien Tudehope said the property tax breaks and rent subsidy payments are designed to make it easier for landowners to support their tenants during this difficult time.
“Many tenants, commercial and residential tenants, are currently having a hard time with reduced sales or working hours due to COVID-19 restrictions,” said Tudehope.

“We heard from landowners that they want to help their tenants, but they also have bills to pay. Thanks to the financial relief, they can offer rent reductions together with their tenants and reduce part of the cost burden during the restrictions.

“This new package follows a similar property tax relief program that ran from May 2020 to May 2021 and has received more than 17,200 applications and granted $ 186 million in relief to date.

“This property tax relief program is demand-driven; There is no limit to the number of landowners the government can support. “

Better Regulation and Innovation Minister Kevin Anderson said homeowners can choose between applying for a property tax break or paying up to $ 1,500 per lease if they agree to cancel the rent for COVID-19 tenants by Aug. July 2021 to December 31, 2021.

“At times like these, we need solutions that work for everyone, and the NSW government is committed to helping renters and landlords get back on their feet so people don’t have to worry,” said Anderson .

“This $ 1,500 payment means landlords are less likely to face missing mortgage payments. Additional protection for residential tenants means they don’t have to worry at this point that they will be evicted due to circumstances beyond their control. “

Additional staff were hired to support the high volume of applications.

Eligible NSW landowners can receive a reduction of up to 100 percent on their property tax liability for 2021. Residential landowners may receive the property tax credit or may request a payment of up to $ 1,500 per lease if they have granted a discount on rent from July 14, 2021 through December 31, 2021 to a tenant who is 25 percent or more of his or her due to COVID-19 Has lost household income.

To be eligible for a property tax break, property owners must rent to a commercial tenant who has annual sales of up to $ 50 million and is eligible for either the 2021 COVID-19 Business Grant, JobSaver, or the COVID-19 Micro Business Grant, or renting to a tenant who has lost 25 percent or more of their household income due to COVID-19.

The landowner must have reduced at least the amount claimed for the tenant concerned for the period between July 1, 2021 and December 31, 2021. Both commercial and residential properties cannot require their tenants to repay the lower rent claimed from the discounts.

Applications for real estate tax relief can be made at: https://www.service.nsw.gov.au/transaction/apply-covid-19-land-tax-relief

Applications for housing benefit can be made at: https://www.service.nsw.gov.au/transaction/apply-residential-tenancy-support-payment

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