There has been considerable focus to date by the State and Federal Governments to help Australian businesses through this global pandemic, with a predicted positive impact on individuals. Further to this, there are also initiatives aimed at both business and individuals, of which the now released land tax break by the NSW Government is one.
The land tax break is expected to be divided evenly between the commercial and residential sectors at $220 million each.
What is on offer?
Landlords will be able to apply for a concession of up to 25% of their 2020 land tax liability on relevant properties, but it must be passed on to tenants through a rent reduction.
A further land tax deferral for outstanding amounts for a three-month period will also be offered to landlords who claim the land tax concession.
Who is eligible?
Commercial landlords with a turnover less than $50 million who experience a 30% or more reduction in revenue due to Covid-19.
Residential landlords will be eligible for a land tax break of up to 25% if they pass the savings on to tenants in financial distress. It is expected that residential tenants who have suffered a loss of income of 25% or more due to Covid-19 will enter negotiations with their landlord.
Conclusion
Both the State and Federal Government have placed a moratorium on evictions during this Covid-19 pandemic. Australians struggling because of Covid-19 restrictions are urged to take advantage of the schemes available to them.
Let Us Help
If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary 30 minute Zoom meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through this challenging time.
