The Victorian Government has announced land tax relief for landlords as part of its Economic Survival Package in response to the coronavirus (COVID-19) pandemic.

By law, you are required to pay land tax to the State Revenue Office if the total taxable value of all the Victorian land you own, individually or jointly as at 31 December, is equal to or exceeds $250,000 ($25,000 for trusts). For each year you own land in Victoria with a total taxable value equal to or above the relevant threshold, you must pay land tax.

The primary land tax exemptions include those for:

  • Your principal place of residence (PPR).
  • Primary production land (PPL).
  • Charities.
  • Rooming houses.

Landlords who provide tenants impacted by coronavirus with rent relief may be eligible for a 25% reduction on the property’s 2020 land tax.

This relief is also available to land owners who are unable to secure a tenant because of the coronavirus pandemic.

Landlords can also defer the remainder of their 2020 land tax to 31 March 2021.

This relief is available for residential and commercial properties, however, for commercial landlords to be eligible, the property must be rented to a tenant with an annual turnover of up to $50 million, and the tenant must be eligible for the Commonwealth Government’s JobKeeper Payment.

Refer to the below link to check your eligibility to receive Land Tax relief from the State Revenue Office.

https://www.sro.vic.gov.au/land-tax/claim-coronavirus-land-tax-relief

The Davidsons team is here to assist you navigate your land tax relief exemption should you be eligible.  For more information contact your Davidsons team member. Alternatively call us on 03 5221 6399 or email us at info@davidsons.com.au for more assistance.

 

Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.