State governments are offering land tax deferrals for landlords whose incomes have been or will be hit by the COVID-19 shutdown.
State land tax revenues bring in
an estimated $11.6 billion for state governments who are already facing plunging
stamp duty revenues from a downturn in property sales.
NSW is offering behind the scenes
deals with landlords to take one of two options to defer land tax payments.
Landlords can go on an eight-month
instalment plan, without interest, starting in May, or they can defer paying
for three months with a six-month installment plan inclusive of interest.
Australia has announced land tax deferrals as part of its stimulus. Businesses
and individuals that pay their 2019-20 land tax on a quarterly basis can defer
their third- and fourth-quarter installments for six months.
South Australia is the second
jurisdiction to make changes to land tax due to the hit on rents expected from
tenants, both in residential and commercial sectors.
Victoria has also allowed
deferrals, but this only applies to landowners who have at least one
non-residential property and taxable land valued at less than $1 million.
In Queensland there have been no
Landlords there are suggesting the
federal government could provide support measures along the lines of the
National Rental Affordability Scheme.
Under the scheme, the federal
government gives an annual tax-free payment to investors who rent new dwellings
to low and moderate income households at a below market rate. It was closed to
new entrants in 2014.
Thursday, 2 April 2020