As our Nation and States continue to battle the coronavirus pandemic and navigate our way through what seems to be a constantly changing landscape, our community are looking towards our government for direction and assistance. Under the State Government scheme, eligible landlords now can receive up to a 50% reduction on their 2019-20 land tax liability on affected properties (up from 25%) – provided they pass on the full benefit^ in land tax relief to their impacted tenants.
Details of the package?
We can expect to see the following measures put in place over the coming weeks across New South Wales, according to a government announcement.
- In case a household is struggling to make rental payments and has suffered a loss of income equal to or greater than 25 percent due to COVID-19, there is a new obligation to enter into negotiations with their landlord or managing agent, prior to seeking a forced end to the tenancy.
- Tenants will be protected from eviction until NCAT is satisfied that negotiations have concluded. Any unpaid rent will accrue as arrears during this period.
- NSW Government to commit $220m towards residential rent relief in the form of land tax waivers or rebates.
- Residential landlords would be eligible for a land tax waiver or rebate of up to 25 percent if they passed the saving on to tenants in financial distress.
- A one-off $2.5 million boosts to tenancy advocacy and advice services across the state to assist landlords and tenants in negotiating new temporary terms.
- Action is also being taken to ensure that evictions for reasons not related to rent arrears are also stayed to minimize avoidable housing disruption and movement. The usual periods of required notice under the Residential Tenancies Act will be increased from the minimum of 30 days up to 90 days for terminations due to fixed or periodic leases ending, or other agreement breaches.
- Tenants will be protected from being added to tenancy databases (or ‘blacklists’) for breaches of agreements resulting from COVID-19 impacts.
Rolling out date:
The government is yet to announce the date. We will update you as soon as the announcement is made.
If you have any questions, be sure to reach out to KPG Taxation professionals.