Land Tax deferral for landlords affected by COVID-19

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.


South 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 changes.

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.



Source- https://www.afr.com/policy/economy/states-start-offering-land-tax-deals-to-landlords-20200330-p54f7i

Marlene Liontis
Thursday, 2 April 2020

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