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The Victorian Government announced a 2021 land tax reduction and deferral for landlords who provided rent relief to commercial tenants between 28 July 2021 and 15 January 2022, and for commercial owner-occupiers.

Applications closed on 30 April 2022. In limited circumstances, we may accept a late application.

Information about past land tax relief is available on our past coronavirus land tax relief webpage.

Check your eligibility for land tax relief due to coronavirus

Land tax reduction of 25% and deferral for eligible landlords with a single commercial tenancy.

Landlords who provided rent relief between 28 July 2021 and 15 January 2022, to their eligible tenant under the Commercial Tenancy Relief Scheme, are eligible for a 2021 land tax reduction of 25% for the relevant property (in addition to any relief previously provided and exclusive of any absentee owner surcharge).

These landlords could defer paying the remainder of their 2021 land tax assessment (and any 2020 land tax previously deferred under the 2020 relief measures) until or before, 31 May 2022. They could also have returned to them any amounts of their 2021 land tax liability that they had already paid. However, they must pay their 2021 land tax liability (as reduced by this relief measure) by 31 May 2022. 

In most cases, an eligible tenant under the Commercial Tenancy Relief Scheme is one who meets all of these conditions:

  • annual group turnover of less than $50 million in the 2020-21 financial year
  • operated a business in Australia as at 28 July 2021
  • experienced at least a 30% reduction in GST turnover in the relevant turnover test period, relative to their comparative turnover
  • is not an ’excluded’ tenant, or a certain prescribed class of tenant.

An eligible lease under the Commercial Tenancy Relief Scheme is a retail or non-retail commercial lease, or licence that was in effect on 28 July 2021.

More information on the Commercial Tenancy Relief Scheme, and information about disputes with tenants, is available on the Victorian Small Business Commission website

To be eligible for land tax relief, landlords must provide rent relief consistent with the Commercial Tenancy Relief Scheme. They must also ensure their tenant declares to them (tenants can use our commercial tenant details SmartForm and then email it to their landlord) that they meet the conditions in either of these two categories:

  • for general commercial tenants, they are eligible tenants and their lease is an eligible lease under the Commercial Tenancy Relief Scheme, or
  • for commercial tenants operating a licensed pub, club or restaurant under a general, full club or on-premises liquor licence, they would be eligible tenants and their lease would be an eligible lease under the Commercial Tenancy Relief Scheme when considering their turnover only at the premises.

Land tax relief will not be granted if the rent relief provided by a landlord to a tenant is:

  • not genuine and not consistent with the Commercial Tenancy Relief Scheme, or
  • if the amount of rent waived between 28 July 2021 and 15 January 2022 is less than 25% of the proportional land tax for the property, except where:
    • land tax is an outgoing which is the contractual responsibility of the tenant (in which case the land tax reduction must be passed on to the tenant), or
    • the rent relief is the outcome of an approved mediation process.

If a property is subject to both a lease and a sub-lease which were in effect on 28 July 2021, to be eligible for land tax relief:

  • the landlord must provide rent relief to the head-lessee consistent with the Commercial Tenancy Relief Scheme, and
  • the head-lessee must provide rent relief to the sub-lessee consistent with the Commercial Tenancy Relief Scheme, and
  • the sub-lessee must be either an eligible tenant under the Commercial Tenancy Relief Scheme, or be operating a licensed pub, club or restaurant under a general, full club or on-premises liquor licence and would be eligible tenants under the Commercial Tenancy relief Scheme when considering their turnover only at that premises. 

Landlords must apply for this relief measure separately from any previous relief measure.

Landlords can apply late for land tax relief for a property with a single commercial tenancy after they have: 

  • received a declaration from their tenant that they are an eligible tenant under the Commercial Tenancy Relief Scheme, and
  • reached a rent relief agreement with their tenant which complies with the Commercial Tenancy Relief Scheme.

A late application must provide:

  • a copy of the lease (if the same lease was not provided with a previous relief application to us)
  • a copy of the rent relief agreement, and
  • a copy of the tenant’s declaration.

We have further information about late applications on our website.

Land tax reduction of up to 25% and deferral for eligible landlords with multiple commercial tenancies

Landlords who provided rent relief between 28 July 2021 and 15 January 2022, under the Commercial Tenancy Relief Scheme to their eligible tenants, are eligible for a 2021 land tax reduction of up to 25% for the relevant property (in addition to any relief previously provided and exclusive of any absentee owner surcharge).

These landlords could defer paying the remainder of their 2021 land tax assessment (and any 2020 land tax previously deferred under the 2020 relief measures) until, or before, 31 May 2022. They could also have returned to them any amounts of their 2021 land tax liability that they had already paid. However, they must pay their 2021 land tax liability (as reduced by this relief measure) by 31 May 2022.

A property with multiple tenancies includes:

  • a single piece of land (i.e. land contained within a single certificate of title) with multiple tenancies, or 
  • a single complex (i.e. a shopping centre) situated across multiple, common-owned titles with multiple tenancies.

The 2021 land tax reduction (28 July 2021 and 15 January 2022) is limited to the total amount of rent a landlord waives for eligible tenants at the property during that period (and does not require the tenants to pay at a later date). Where land tax is an outgoing, it is the contractual responsibility of the tenant and any land tax reduction granted to the tenant can count toward the total amount of rent waived.

Landlords must apply for this relief measure separately from any previous relief measure. Landlords can apply for land tax relief for a property with multiple commercial tenancies after they have:

  • received declarations from their tenants that they are eligible tenants under the Commercial Tenancy Relief Scheme, and
  • reached rent relief agreements with their tenants which comply with the Commercial Tenancy Relief Scheme, and
  • downloaded and completed a Multiple Tenancy Schedule to support the application.

We have further information about late applications on our website.

Land tax reduction of 25% and deferral for commercial owner-occupiers

Eligible landowners who actively use a property for commercial purposes are eligible for a 2021 land tax reduction of 25% for the relevant property (in addition to any relief previously provided and exclusive of any absentee owner surcharge).

A landowner could defer paying the remainder of their 2021 land tax assessment (and any 2020 land tax previously deferred under the 2020 relief measures) until or before, 31 May 2022. They could also have returned to them any amounts of their 2021 land tax liability that they had already paid. However, they must pay their 2021 land tax liability (as reduced by this relief measure) by 31 May 2022.

To be eligible, the landowner must hold an Australian Business Number. 

To be eligible, the landowner (or a person who controls the landowner) must also either carry on the business on the property or directly or indirectly control the business carried out on the property, and in a hypothetical scenario where the taxpayer is a tenant carrying on the business at the property:

  • They would be an eligible tenant under the Commercial Tenancy Relief Scheme, which generally means they had:
    • annual group turnover of less than $50 million in the 2020-21 financial year, and
    • operated a business in Australia as at 28 July 2021, and
    • experienced at least a 30% reduction in GST turnover in the relevant turnover test period, relative to their comparative turnover, or
  • If the business is a licensed pub, club or restaurant under a general, full club or on-premises liquor licence, they would be an eligible tenant under the Commercial Tenancy Relief Scheme if their turnover at the premises only was considered, which generally means they had:
    • an annual turnover of less than $50 million in the 2020-21 financial year at the premises, and
    • operated a business in Australia as at 28 July 2021, and
    • experienced at least a 30% reduction in GST turnover at the premises in the relevant turnover test period relative to their comparative turnover.

Properties being held or developed for the purpose of sale are not eligible for relief unless there is a business being actively conducted on the property. Construction work or development work on the property does not qualify as a business being actively conducted on the property.

Commercial owner-occupiers must apply for this relief measure separately from any previous relief measure. Landlords can apply for land tax relief for a commercial owner-occupier property after they have obtained and attached:

  • one of the following:
    • extracts from accounting records
    • business activity statements
    • bank statements, or
    • a statement prepared by a practising accountant, and
  • a statutory declaration that they would be an eligible tenant if they tenanted the property rather than owned it and that the information provided is true to the best of their knowledge and belief.

We have further information about late applications on our website.

Last modified: 2 May 2022

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