COVID-19 Relief

Land tax relief for landlords

The South Australian Government has announced land tax relief for non-residential and residential landlords in response to COVID-19.

Landlords who provide tenants impacted by COVID-19 with rent relief may be eligible for a 25% reduction on the land tax payable on a parcel of land in the 2019-20 land tax year.

This relief is also available to residential and non-residential land owners who are unable to secure a tenant because of COVID-19. To be eligible for land tax relief, eligible landlords will need to demonstrate that the land was leased to 30 March 2020, but has since been vacant due to the impact of COVID-19.

Land tax relief is limited only to land occupied by affected tenants or vacant due to the impact of COVID-19. A separate application must be completed for each property.

If you have already paid your land tax in full, or have made your third instalment payment, for 2019-20, you may choose to credit your relief against a future liability or to receive a refund.

This measure is in addition to the land tax instalment deferral measure.

View the Treasurer's media release.

Read more about land tax relief for landlords: non-residential.

Read more about land tax relief for landlords: residential.

Land Tax Relief for Landlords: Non-Residential

Who is eligible?

You may be eligible for relief if:

  • you have received a Land Tax Notice of Assessment for 2019-20
  • you do not have an outstanding land tax debt prior to 2019-20
  • the land you own is used for non-residential purposes
  • your property was leased at 30 March 2020 to a non-residential tenant(s).

and

  • at least one of the tenants is eligible for the Australian Government's JobKeeper payment.
  • the tenant(s) must not have an annual turnover of more than $50 million.
  • you can demonstrate that you have provided, or will provide rent relief to affected tenants between 30 March 2020 and 30 October 2020. A deferral of rent is not considered rent relief.

or

  • the land was leased to a non-residential tenant or tenants at 30 March 2020 and at least one tenancy has been vacated since, and you have been unable to secure a tenant because of COVID-19

How much is the COVID-19 landlord land tax relief?

The maximum land tax relief available is 25% of the land tax liability of the relevant property.

If the level of rent relief provided, or rent forgone from a vacant tenancy, between 30 March 2020 and 30 October 2020 (inclusive):

  • is equal to or more than the value of 25% of the land tax liability for the relevant property, you may be eligible for the full amount of land tax relief .
  • is less than the value of 25% of the land tax liability for the relevant property, you may be eligible for a lower level of land tax relief equal to the value of rent relief provided.

What evidence will I need to provide?

Specific requests for information that relates to your situation will display as you complete the form.

You will be required to provide evidence to support your claim. This could include, but is not limited to:

If your property is tenanted

  • The lease agreement or written evidence of the arrangement existing between you and your affected tenant(s) at 30 March 2020.
  • Evidence that at least one of your non-residential tenants is eligible for the JobKeeper payment.
  • Evidence that you will reduce, or have already reduced, the rent payable for the affected tenant or tenants by at least as much as the value of the land tax reduction for the relevant property between 30 March 2020 and 30 October 2020 (inclusive).
  • If the value of rent forgone is less than the value implied by/equal to 25% land tax associated with the relevant property, evidence of the total value of rent reduction over the period 30 March 2020 to 30 October 2020 (inclusive).

If your property is not tenanted

  • The lease agreement or written evidence of the arrangement in place as at 30 March 2020.
  • The date when one of the tenancies within the property became available for rent.
  • A document to support your effort to lease the property, such as a copy of the property advertisement and rental amount (screenshot from online media or PDF), and/or the exclusive managing and leasing authority agreement with the real estate agent or property manager.
  • If you have not sought to secure another tenant(s), please provide an explanation why.
  • Evidence that the value of the rent forgone from the vacant tenancy over the period 30 March 2020 to 30 October 2020 (inclusive) is at least equal to the value of 25% of the land tax associated with the relevant property.
  • If the value of rent forgone from the vacated property is less than the value equal to 25% land tax associated with the relevant property, evidence of the estimated rent forgone from the vacated tenancy over the period 30 March 2020 to 30 October 2020.

How do I apply?

Apply for COVID-19 land tax relief - landlord of non-residential land

Application close 30 September 2020.

How is the relief provided?

If you haven’t fully paid your 2019-20 land tax liability

Relief will be provided as a credit against your fourth instalment for the relevant property.

If you have fully paid your 2019-20 land tax liability

You can request to have this as a credit towards your future land tax liability or a refund cheque sent to you. Please indicate this on the application form.

If you choose to receive the relief as a credit to offset a future land tax liability you will see the amount of relief credited on your next land tax liability notice.

If you choose a refund by cheque this will be mailed to the postal address we have on record for you.

I have given my tenant a once off rent reduction. Can I claim the full 25% land tax reduction?

You are eligible for relief up to the amount you pass on to your tenant to a maximum of 25% of your 2019-20 land tax liability for that property.

For example: If you provided a once off rent reduction of $250 and your total land tax liability for that property is $2000, you can only claim up to the amount of relief you provided being $250 as it is less than 25% of the land tax liability (i.e. $500).

I have an outstanding land tax liability from a year prior to 2019-20. Can I apply?

No, only landlords who do not have an outstanding land tax liability prior to 2019-20 can apply.

Any outstanding debts prior to 2019-20 must be paid in full prior to applying.

My tenant is not in financial hardship. What can I do?

The relief is only available to landlords who have provided rent relief to tenants who have been financially impacted by COVID-19.

Can I receive my refund by EFT?

No, at this time the relief is provided as a credit to offset current 2019-20 liability, future land tax liability or refunded by cheque.

I am an owner occupier of a property which is liable to land tax.  Can I claim the relief?

The land tax relief is specifically aimed at land that is subject to non-residential (commercial) and residential leases, therefore the relief does not apply to an owner occupier.

Part of the criteria includes that the business turnover must be less than $50 million. What is this based on?

The $50 million is based on the 2018-19 financial year Australia wide grouped business turnover.

If the tenant is a franchise the $50 million is based on the 2018-19 business turnover for the franchise operator.

I own a shopping centre and have provided rent relief to some of my tenants. Can I claim the landlord land tax relief?

Landlords who provide tenants impacted by COVID-19 with rent relief may be eligible for a reduction up to 25% on the land tax payable on a parcel of land in the 2019-20 land tax year.

The landlord land tax relief can be claimed by completing the Application for Land Tax Relief for Landlords (Non-Residential) form available from our website. To progress your application, evidence of rent relief is required for the rent reduced tenancies to at least 25% of the land tax liability for 2019-20. Attach a schedule to your Application listing the tenancies and rent relief details. Evidence of JobKeeper is only required from one tenancy relevant to your Application.

Other criteria are included on the Application form.


Land Tax Relief for Landlords: Residential

Who is eligible?

You may be eligible for relief if:

  • you have received a Land Tax Notice of Assessment for 2019-20
  • you do not have an outstanding land tax debt prior to 2019-20
  • the land you own is used for residential purposes

and

  • the land was leased to a residential tenant or tenants at 30 March 2020 and continues to be leased
  • between 30 March 2020 and 30 October 2020 (inclusive) you reduce, or have reduced, the rent for the affected tenant or tenants
  • at least one of the residential tenants declare they are experiencing financial hardship due to COVID-19 (e.g. lost job, reduced working hours or on JobKeeper)

or

  • the land was leased to a residential tenant or tenants at 30 March 2020 and at least one tenancy has been vacated since, and you have been unable to secure a tenant because of COVID-19

How much is the COVID-19 landlord land tax relief?

The maximum land tax relief available is 25% of the land tax liability for the relevant property.

If the level of rent relief provided, or rent forgone from a vacant tenancy, between 30 March 2020 and 30 October 2020 (inclusive):

  • is equal to or more than the value of 25% of the land tax liability for the relevant property, you may be eligible for the full amount of land tax relief
  • is less than the value of 25% of the land tax liability for the relevant property, you may be eligible for a lower level of land tax relief equal to the value of rent relief provided

What evidence will I need to provide?

Specific requests for information that relates to your situation will display as you complete the form.

You will be required to provide evidence to support your claim. This could include, but is not limited to:

If your property is tenanted

  • The lease agreement or written evidence of the arrangement existing between you and your tenant at 30 March 2020.
  • A signed statement by the tenant and you (or your agent) to acknowledge the rent reduction has been provided to the tenant. A deferral of rent does not qualify as providing rent relief. The rent relief needs to be provided between 30 March 2020 and 30 October 2020 (inclusive) and be at least equal to the value of the reduction in land tax.
  • Evidence that you will reduce, or have already reduced, the rent for the affected tenant or tenants by at least the value of 25% of the land tax for the relevant property between 30 March 2020 and 30 October 2020 (inclusive).
  • If the value of rent relief is less than the value of 25% of land tax for the relevant property, evidence of the total value of rent reduction over the period 30 March 2020 to 30 October 2020 (inclusive).

If your property is not tenanted

  • The date when the property became available for rent.
  • A document to support your effort to lease the property, such as a copy of the property advertisement and rental amount (screenshot from online media or PDF), and/or the exclusive managing and leasing authority agreement with the real estate agent or property manager.
  • Evidence that the value of the rent forgone from the vacant tenancy over the period 30 March 2020 to 30 October 2020 (inclusive) is at least the value of 25% of the land tax for the relevant property.
  • If the value of rent forgone from the vacated property is less than the value of 25% of the land tax for the relevant property, evidence of the estimated rent forgone from the vacated tenancy over the period 30 March 2020 to 30 October 2020.

How do I apply?

Apply for COVID-19 land tax relief - landlords of residential land

Application close 30 September 2020

How is the relief provided?

If you haven’t fully paid your 2019-20 land tax liability

Relief will be provided as a credit against your fourth instalment for the relevant property.

If you have fully paid your 2019-20 land tax liability

You can request to have this as a credit to offset future land tax liability or refunded by cheque. Please indicate this on the application form.

If you choose to receive the relief as a credit to offset a future land tax liability you will see the amount of relief credited on your next land tax liability notice.

If you choose a refund by cheque this will be mailed to the postal address we have on record for you.

I have given my tenant a one off rent reduction. Can I claim the full 25% land tax reduction?

You are eligible for relief up to the amount you pass on to your tenant to a maximum of 25% of your 2019-20 land tax liability for that property.

For example: If you provided a once off rent reduction of $250 and your total land tax liability for that property is $2000, you can only claim up to the amount of relief you provided being $250 as it is less than 25% of the land tax liability (i.e. $500).

I have an outstanding land tax liability from a year prior to 2019-20. Can I apply?

No, only landlords who are up to date with their land tax can apply.

Any outstanding debts prior to 2019-20 must be paid in full prior to applying.

My tenant is not in financial hardship. What can I do?

The relief is only available to landlords who have provided rent relief to tenants who have been financially impacted by COVID-19.

Can I receive my refund by EFT?

No, at this time the relief is provided as a credit to offset current 2019-20 liability, future land tax liability or refunded by cheque.

I am an owner occupier of a property which is liable to land tax.  Can I claim the relief?

The land tax relief is specifically aimed at land that is subject to non-residential (commercial) and residential leases, therefore the relief does not apply to an owner occupier.

I own an Airbnb apartment and rent this for short term accommodation.  Can I get the land tax landlord relief?

The land tax relief is specifically aimed at land that is subject to non-residential (commercial) and residential leases, therefore as there is no lease the relief does not apply to an Airbnb apartment.


Deferral of 2019-20 third and fourth instalments

Businesses and individuals paying land tax quarterly in 2019-20 will be able to defer payment of their third and fourth quarter instalments for up to six months.

What is the relief?

You can choose to defer the payment of your third and fourth 2019-20 land tax quarterly instalment payments for up to six months from the due date of the third instalment.

Will I still receive my instalment notices?

Yes, we will send your third and fourth instalment notices as usual.

How long can I delay the payment?

Third Instalment: defer payment up to six months from the due date

Fourth Instalment: defer payment up to three months from the due date

If you choose to defer your payments, these will be shown as arrears on your first land tax notice for 2020-21.

Will interest and penalty tax apply?

You will not incur any interest or penalty tax as long as you pay your 2019-20 land tax instalment liabilities within the timeframe mentioned above.

Do I need to apply?

No, you do not need to apply for this deferral.

I haven’t paid my first or second instalment, can I defer these?

No, the deferral relief only applies to your third and fourth instalment payments.

I still have land tax outstanding from previous years, can I defer this?

No, the deferral relief only applies to the 2019-20 third and fourth instalment payments.

Is my land tax waived?

No, you will still be required to pay your land tax, however you can defer the payment of your third and fourth instalment payments.


Land tax reform transition fund

The previously announced land tax reform transitional relief fund available to eligible taxpayers whose land tax bill will increase as a result of the changes in aggregation of land commencing from 1 July 2020 will be increased from 50% to 100% of the increase in an eligible taxpayer’s 2020-21 land tax assessment. This will be subject to the existing criteria.

See the land tax changes page for further information on criteria for the land tax transitional fund.


Concerned about meeting your land tax obligations?

If you have been impacted by COVID-19 and have any concerns about meeting your state revenue obligations, please email us at landtax@sa.gov.au or call (08) 8226 3750 to discuss options available.


Accuracy of Supporting Information

Recipients of any tax relief packages in relation to COVID-19 (including waivers, deferrals or other tax relief) may be subject to an audit by representatives of RevenueSA.

You are required to retain supporting information for a period of five years after the relief has been approved and/or provided to you.

If, during an audit or investigation, the information is found to be inaccurate or fraudulent, the relief amount may be repayable on demand, which may include further penalties.