30/07/2020 | Rob Lucas MLC | Lower Costs

A land tax relief scheme which supports landlords provide significant rent reductions for their residential and commercial SME tenants impacted by COVID-19 restrictions will be extended by two months, to the end of September.

Under the State Government scheme, eligible* landlords can receive up to a 25% reduction on their 2019-20 land tax liability on affected properties – provided they pass on the full benefit^ in land tax relief to their impacted tenants.

Impacted tenants may include, for example, gyms, clothing retailers, medical and dental practices, motels and hotels, restaurants, cafes, beauty salons and hairdressers.

Treasurer Rob Lucas said the Government wanted to ensure as many local landlords as possible were able to be supported, with a burgeoning number of applications received by Revenue SA in the past two weeks.

“This initiative – part of our $1 billion in economic stimulus - is a powerful shot in the arm for local businesses and residential tenants who have suffered a significant downturn in trade and income as a result of COVID-19 and the necessary restrictions imposed to help limit its spread,” said Mr Lucas.

“By helping landlords, we help their tenants – and, in turn, ensure we sustain as many local jobs as possible throughout the greatest economic challenge of our time.

“Rent can be one of the biggest fixed costs for a small business or residential tenant and this scheme complements the work of many landlords who have been collaborating with their tenants and financial institutions to find an effective way through this period.”

Consistent with the experience of other states, applications to the scheme started relatively slowly when it opened nearly two months ago but have ramped up in recent weeks.

The extension also recognises the significant amount of other reporting arrangements that need to be completed around the end of the financial year, providing more time for landlords to submit their applications.

Applications for the land tax relief scheme are able to be submitted to 30 September, 2020 (inclusive) via www.revenuesa.sa.gov.au/ltcovid19relief

*For those taxpayers with an outstanding 2019-20 land tax liability and eligible for relief under this scheme, any remaining land tax payable can be deferred for up to six months until around December.  Taxpayers who have already paid their 2019-20 land tax liability and are eligible for relief under this scheme will be issued with a 25% land tax refund on eligible properties.

^Land tax relief would be applicable to eligible landlords who can demonstrate that 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 and including October 30, 2020.