NSW Commercial Property Funding

The NSW Government has added a $440 million land tax relief relating to Covid-19

On April 13, 2020, the NSW government announced a package to help assist landlords and tenants.

The plan will see the NSW government roughly divide $440 million between commercial and residential landlords and tenants. Landlords must negotiate rent relief agreements with tenants in financial distress due to the virus.

In return, the government is offering eligible landlords land tax concessions of up to 25% if they pass the saving on to tenants.

The six-month support package includes a moratorium on ­applications for forced evictions due to rental arrears for those ­financially disadvantaged by COVID-19, and new requirements for landlords and tenants to negotiate over rent payments.

As part of the package, the Office of Small Business will receive $10 million to fund additional mediators to help landlords and tenants negotiate an outcome when discussions stall, and the NSW Tenants Union will receive $2.3 million immediately in order to increase their resourcing to answer more tenant queries.

But the majority of the funding will be funnelled into providing a 25% land tax rebate or waiver for landlords who pass on an equivalent amount of rental relief for their tenants, as well as deferring land tax for the next three months for landlords who are yet to pay their land tax bill this year.

COVID-19 help for small businesses

 

 

10th May 2020

Author

Peter Farrell

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