2021 Coronavirus Land Tax Relief
The Victorian Government has announced two land tax reliefs in relation to the 2021 Land Tax Relief, announced on 4 September 2020 and December 2020, for landlords (including landlords with multiple tenancies) and commercial owner-occupiers.
Land tax relief and deferral for landlords and commercial owner-occupiers
Applications already open: residential landlords, and landlords of properties with multiple tenancies (residential and/or commercial).
12 April 2021 (Monday) Applications will soon be open for commercial landlords with a single tenancy.
Applications for commercial owner-occupiers will be open on Monday 26 April 2021.
The deadline for this application is 30 June 2021.
25% reduction in land tax and tax deferral for eligible landlords
Landlords who offer rent relief to tenants affected by coronavirus between 1 January 2021 and 28 March 2021, in line with the principles of the Support to Landlords and Tenants program, will be eligible for a 2021 land tax on the property 25% reduction (excluding any absentee landlord surcharge).
These landlords can defer payment of the remainder of their 2021 land tax assessment (and the 2020 land tax previously deferred under the 2020 mitigation) until on or before 30 November 2021. They may also refund the amount of 2021 land tax already paid but must pay the 2021 land tax liability (after the reduction in land tax as a result of this mitigation measure) by 30 November 2021.
Qualifying residential arrangements residential arrangements include tenancy agreements, specialist disability accommodation agreements and site agreements. most holiday accommodation, such as hotels, motels and B&Bs, as well as rooms in guest houses, are not let under qualifying residential arrangements and therefore do not qualify for land tax relief.
To qualify for land tax relief, commercial landlords offering rent relief must follow the Commercial Tenancy Relief Scheme. to their landlord) that they qualify under either of the following two categories.
For a general commercial tenant:
Have a total annual turnover of no more than $50 million for the 2019-2020 or 2020-21 financial year, and.
They are eligible to receive and participate in the Australian Government’s JobKeeper grant in the March 2021 quarter.
For commercial tenants who hold a club or indoor liquor license to operate, licensed bar, club or restaurant.
has an annual turnover of no more than $50 million at the premises level for the 2019-2020 or 2020-21 financial year, and
The turnover of the premises has reduced by at least 30% in the December 2020 quarter relative to the March 2020 quarter.
We will not provide land tax relief if we determine that the rent relief offered by the landlord to the tenant is
Is not genuine and does not comply with the principles of the Supporting Landlords and Tenants program or the Business Rent Relief Scheme, or
if the amount of rent exempted between 1 January 2021 and 28 March 2021 is less than 25% of the property’s land tax percentage.
Land tax relief for properties with multiple tenancies
Owners of properties with multiple tenancies can claim land tax relief for 2021 for the whole property, not just for the part of the property occupied by the qualifying tenant who has been granted rent relief.
Owners of properties with multiple tenancies can claim land tax relief through our Coronavirus land tax relief – Multiple tenancy properties Smart Form. You will also need to download and complete a ‘Multiple Tenancy Schedule’ to submit with your application.
You cannot claim land tax relief for multi-tenancy properties through My Land Tax.
Land tax relief of 25% and deferred tax for owner-occupiers
An owner-occupier of a commercial property can receive a 25% exemption from 2021 Land Tax on that property and defer payment of the remaining 2021 Land Tax (and the 2020 Land Tax previously deferred under Measure 2020) until 30 November 2021. requiring their business to qualify under either of the following two categories.
For general business tenants.
have a total annual turnover of no more than $50 million in the 2019-2020 or 2020-21 financial year, and
be eligible to receive and participate in the Australian Government’s JobKeeper grant in the March 2021 quarter.
For commercial tenants who hold a club or indoor liquor license to operate, licensed bar, club or restaurant.
has an annual turnover of no more than $50 million in the premises for the 2019-2020 or 2020-21 financial year, and
the turnover of the premises has reduced by at least 30% in the December 2020 quarter relative to the March 2020 quarter.
