Land Tax relief for Residential and Commercial Landlords

Apr 25, 2020

The South Australian Government has followed the lead of most other states and announced land tax relief for certain landlords who provide rent relief to their tenants. Relief is offered as a 25% reduction on their 2019/20 land tax liability for affected properties.

The relief is available when:

  • The land is used for residential or commercial purposes
  • The land is either:
    • being leased to a residential tenant suffering financial hardship due to COVID-19 (Details on what constitutes hardship yet to be announced)
    • 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.

Land Tax relief would be applicable to eligible landlords who can demonstrate they have provided the minimum required level of rent relief to tenants since March 30, 2020 and/or will provide such relief to tenants up to the 30th of October 2020.

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.

This measure is in addition to previously announced deferrals available for third and fourth quarter payments of land tax.

To receive relief you must apply for relief before the end of June 2020. Applications will be available shortly.

The SA government has also announced that they will soon introduce legislative changes to enforce the mandatory code of conduct for commercial tenancies (read our article here) but did not provide any new details.