There has been a lot of news coverage regarding financial relief for individuals and businesses affected by the Covid-19 pandemic and recent lockdowns. However very little has been published about relief for both commercial and residential landlords.
Here is a summary of what is available for properties held in the state of New South Wales:
Land Tax Relief
Landowners of commercial and residential properties who have reduced their tenants’ rent due to COVID-19 during the period 1 July 2021 to 31 December 2021 are eligible for land tax relief.
The reduction will be the lessor of:
- the amount of rent reduction provided for any period between 1 July 2021 and 31 December 2021, or
- 100% of the land tax payable on the land leased to the tenant.
Applications can be made online on the Service NSW website.
Residential Tenancy Support Payment
This payment is paid to landlords of residential property who have provided a reduction in rent to their tenants who have been impacted by COVID-19.
The support payment will be the lessor of:
- the amount of reduction provided to the tenant during the 60 day eviction moratorium period, beginning 14 July 2021, or
- $3000 (but increasing to $4,500 from 24 September).
Applications can be made now via the Fair Trading NSW website.
Commercial Landlord Hardship Fund
If you’re a small commercial or retail landlord you can receive a grant of up to $3,000 per month if you have provided rental waivers (not deferrals) for your tenant from 13 July 2021. You can apply for this grant in October 2021.
To be eligible for this grant you need to satisfy the following criteria:
- taxable land holdings are less than $5 million as at 31 December 2020 (principal place of residence is excluded)
- gross rental income was more than 50% of your assessable income for the 2019-20 financial year
- be a landowner of NSW property subject to the Retail and Other Commercial Leases (COVID-19) Regulation 2021
- have a current lease agreement that provides rent relief from 13 July 2021
- will not be claiming the Land Tax Relief (as mentioned above)
- demonstrate that providing rent relief will cause financial hardship
Please note that you will not be eligible for either the Residential Tenancy Support Payment or the Commercial Landlord Hardship Fund if you have applied for the Land Tax Relief. It is recommended that you determine which one will provide the greater financial assistance before applying.
Further information regarding the above assistance can be found on the Service NSW website at www.service.nsw.gov.au