South Australia extends Land Tax relief and Mandatory Code of Conduct period

Sep 14, 2020

The South Australian Government has increased land tax relief up to a potential 50% reduction to a landlord's 2019/20 land tax bill. Relief is available when:

  • The land is used for residential or commercial purposes and was tenanted at 30 March 2020.
  • The land is either:
    • being leased to a residential tenant suffering financial hardship due to COVID-19
    • being leased to a commercial tenant with turnover up to $50m who have at least a 30% drop in revenue and are eligible for the Australian Government's JobKeeper payment.
    • vacant due to the impact of COVID-19 and previously tenanted as at 30 March 2020.
  • The landlord reduces the rent of the affected tenant by at least as much as the land tax reduction
  • The land tax is directly related to the land for which the rent has been reduced.
  • There are no outstanding land tax liabilities prior to the 2020 Financial Year.

There are two periods where relief may apply:

  • 30 March 2020 to 30 October 2020
    • Maximum land tax relief available is 25% of the owner's 2019/20 land tax bill for that property
    • Not available to owner occupiers
    • Applications must be lodged by 30 September 2020
  • 31 October 2020 to 30 April 2021
    • Maximum land tax relief available is 25% of the owner's 2019/20 land tax bill for that property
    • Available to owner occupiers who are eligible for Jobkeeper from 31 October with annual turnover below $50m
    • The due date for applications has not yet been announced

Land Tax relief would be applicable to eligible landlords who can demonstrate they have provided the minimum required level of rent relief to tenants in the periods stated above. If eligible relief was only provided to tenants in one of these periods then the landlord will only be eligible for the period in which that relief was provided.

Landlords who have already fully paid their 2019/20 land tax liability and are eligible for relief will receive a refund equal to the amount of relief available.

Protections for South Australian Commercial tenants implemented under the National Mandatory Code of Conduct will also be extended to January 3, 2021. These provisions include a requirement to provide rent relief in certain circumstances, a prohibition on increasing rent of affected tenants and a ban on evictions fro non-payment of rent or outgoings.