The measures will apply to commercial leases where the tenant is in financial distress due to COVID-19, including but not limited to shops, cafes, gyms, hairdressers, restaurants, offices, warehouses and industrial sites.
The land tax relief is expected to be divided approximately 50-50, with around $220 million going to the commercial sector and a further $220 million expected to benefit the residential rental market.
Commercial landlords will be offered the land tax concession if they pass on the savings to tenants through a rent reduction.
Eligible landlords will be able to apply for a land tax concession of up to 25 per cent of their 2020 (calendar year) land tax liability on relevant properties. A further land tax deferral for any outstanding amounts for a three-month period will also be offered to landlords who claim the land tax concession.
Additional support measures as outlined by the Code of Conduct include:
- Landlords must negotiate rent relief agreements 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.
The policy will apply to business tenants with a turnover of less than $50 million that experience a 30 per cent (or more) reduction in revenue as a result of the COVID-19 pandemic, in line with the Prime Minister’s announcement on 7 April.
Read more about the land tax concession at nsw.gov.au
Destination NSW
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