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The New South Wales government has indicated that applications for its rental support payments are now open.
According to state Minister for Finance and Small Business, Damien Tudehope, the land tax relief and tenancy support payments “make it easier” for landowners to support their tenants during this challenging time.
He said: “Many renters, commercial and residential, are doing it tough right now, with reduced turnover or work hours due to the COVID-19 restrictions.
“We’ve heard from landowners that they would like to help their tenants, but they also have bills to pay. Providing financial relief will enable them to work with their tenants to offer rent reductions and to alleviate some of the cost burden during restrictions.”
Flagging that the new package is similar with the land tax relief program that ran from May 2020 to May 2021, Mr Tudehope said that scheme saw more than 17,200 applications received and $186 million of relief provided.
“This land tax relief program is demand-driven; there is no limit to the number of landowners that can receive support from the government,” he said.
As previously reported by REB, and reiterated by Minister for Better Regulation and Innovation Kevin Anderson in this latest statement, residential landlords can choose between applying for land tax relief or a payment of up to $1,500 per tenancy if they agree to reduce the rent for COVID-19-impacted tenants from 14 July 2021 to 31 December 2021.
“During times like these, we need solutions that work for everyone, and the NSW government is committed to supporting tenants and landlords as they get back on their feet, giving people one less thing to worry about,” Mr Anderson said.
“This $1,500 payment means landlords will be less likely to face missing mortgage repayments. Extra protections for residential tenants mean they won’t have to worry about being evicted at this time due to circumstances outside of their control.”
The NSW government has indicated that extra staff have been engaged to assist with an anticipated high volume of applications.
Options available to landlords
Eligible NSW landowners may receive a reduction of up to 100 per cent of their land tax liability for 2021.
The landowner must have reduced rent for the affected tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021. Both commercial and residential landowners cannot require their tenants to repay the reduced rent they claim through the rebates.
Residential landowners
Can receive the land tax relief or may elect to claim a payment of up to $1,500 per tenancy agreement if they provided a reduction in rent from 14 July 2021 to 31 December 2021 to a residential tenant who has lost 25 per cent or more of household income due to COVID-19.
Commercial landowners
Must be leasing to a commercial tenant who has an annual turnover up to $50 million and is eligible for either the 2021 COVID-19 Business Grant, JobSaver or the COVID-19 Micro-business Grant, or leasing to a residential tenant who has lost 25 per cent or more of household income due to COVID-19.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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