COVID-19 NSW Land Tax Concessions- Rental Code of Conduct
On 29 March 2020, the NSW Government committed to implementing a six month moratorium on rental evictions for commercial and residential
tenants in financial distress, and a mandatory code of conduct for
commercial tenancies to support small and medium sized businesses
affected by COVID-19, as agreed at National Cabinet.
On 13 April 2020, the NSW Government announced a $440 million land tax
relief package to be split 50/50 between the commercial and residential
sectors. The following key measures are included as part of the package:
(a) Commercial tenancies – Landlords can apply for a concession of up
to 25% of the 2020 calendar year land tax liability on relevant
properties, if the savings are passed on to tenants via a rent reduction.
Also, a land tax deferral of any outstanding amounts for a three-month
period will be offered to landlords who claim the land tax concession.
The Government will give effect to the ‘National Cabinet Mandatory
Code of Conduct – SME Commercial Leasing Principles During
COVID-19’, which includes the following key measures:
• Landlords must negotiate rent relief with tenants in financial distress
due to COVID-19 by applying the leasing principles in the Code.
• A ban on the termination of a lease for non-payment of rent.
• A freeze in rent increases.
This measure will apply to business tenants with an annual turnover of
less than $50 million that are eligible for the Federal Government’s Jobkeeper program.
(b) Residential tenancies – Landlords will be eligible for a land tax waiver
or rebate of up to 25% if they pass the saving on to tenants in financial
distress (broadly, where household income is reduced by 25% or more).
An interim 60 day stop on landlords issuing termination notices or
applying for eviction orders due to rental arrears, where tenants are
financially disadvantaged by COVID-19. Landlords must negotiate a rent
reduction with the tenant in good faith in the first instance.
Other measures include a deferral of rents for six months for commercial
tenants with less than 20 employees in all Government-owned properties.
Coffs Coast Consulting Services
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Contact Shannon at Coffs Coast Consulting if you require assistance in getting your tax up-to-date to obtain aspects of the Federal Government Stimulus Package Ph (02) 5606 3692 or in box me through this website.
