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The Victorian Government has announced land tax relief for eligible owners of land, including landlords who have provided rent relief to tenants impacted by the coronavirus (COVID-19) pandemic as part of the Government's Support to Landlords and Tenants package.

Landlords who provide tenants impacted by the coronavirus pandemic with rent relief may be eligible for a reduction of up to 50% on the property’s 2020 land tax. Additionally, those unable to secure a tenant because of the pandemic, and owner-occupiers of commercial properties, may be eligible for a 25% reduction on the property’s 2020 land tax.

Eligible applicants can also defer payment of their remaining 2020 land tax up to 31 March 2021.

  1. Check your eligibility

    If your property is tenanted

    • You must provide your tenant with rent relief consistent with the principles of the Government’s Support to Landlords and Tenants package.
    • Your tenant's ability to pay their normal rent must be impacted by the coronavirus pandemic.
    • If the tenant is commercial (includes retail, office and industrial),  it must meet the conditions in one of the following two categories:
      1. For a tenant conducting a general business it must be eligible for the Commercial Tenancy Relief Scheme:
      2. For a tenant operating a licensed pub, club or restaurant that is not eligible under the first category:
        • Your tenant must be operating under a general, full club or on-premises liquor licence as a commercial tenant.
        • Your tenant’s turnover at the premises has reduced by at least 30% since March 2020.
        • At the premises level, your tenant’s turnover was no greater than $50 million in the 2018-19 or 2019-20 financial year.
    • If the tenant is residential, the agreement must be a tenancy agreement, a specialist disability accommodation agreement or a site agreement.
    • Your land tax relief is limited to the amount of rent you waive (and don't require the tenant to pay at a later date), unless the tenant is a commercial tenant where land tax is an outgoing that is the contractual responsibility of the tenant, or the rent relief is the outcome of an approved mediation process.

    If your property is not tenanted

    • The property must have been tenanted under an eligible residential or commercial lease in March 2020, or was the subject of an executed lease agreement in March 2020, which the tenant did not fulfil.
    • The property must have subsequently been vacant for a continuous period of three months because of the coronavirus pandemic.

    If you carry on a business from your property

    • You must actively conduct a business from your property.
    • Your business must meet the conditions in one of the following two categories:
      1. For a general business:
      2. For a business operating a licensed pub, club or restaurant (and not eligible under the first category):
        • Your business must be operating under a general, full club or on-premises liquor licence.
        • Your business’s turnover at the premises must have reduced by at least 30% since March 2020.
        • At the premises level, your business’s turnover was no greater than $50 million in the 2018-19 or 2019-20 financial year.

    Am I eligible for land tax relief due to coronavirus?

  2. Prepare your information and evidence

    If your property is tenanted

    For residential and commercial property, you need to prepare information/evidence as to:

    • The lease agreement or written evidence of the arrangement existing between the tenant and landlord prior to the coronavirus pandemic.
    • Written evidence of the rent reduction or rent waiver that has occurred as a result of the impact of the coronavirus pandemic.
    • If it is a commercial property, a declaration from your tenant that they meet the relevant criteria. Your tenant can use our ‘Coronavirus land tax relief - commercial tenant details’ form to make this declaration to you. If your tenant is supplying evidentiary documents, they should ensure their Tax File Number is not visible.
    • If the tenant is commercial, you will be asked to declare that the rent relief you provided complies with the requirements of the Commercial Tenancy Relief Scheme.
    • If the reduced rental amount is the result of mediation, a copy of the mediation agreement.
    • Any other evidence to support your claim.

    If your property is not tenanted

    • The lease agreement or written evidence of the arrangement existing between the tenant and landlord prior to the coronavirus pandemic.
    • The date the property was vacated and became available for rent.
    • The advertised rental amount and date of advertisement (if applicable).
    • Copy of the property advertisement - this can be, for example, via a screenshot from online media or a PDF (if applicable).
    • Exclusive managing and leasing authority agreement with the real estate agent or property manager (if applicable).
    • Description of how the coronavirus pandemic has impacted your ability to secure a tenant.
    • Any other evidence to support your claim.

    If you carry on a business from your property

    • Evidence of a monthly JobKeeper declaration with the ATO (ensuring your Tax File Number is not visible) or a copy of your liquor licence.
  3. Apply for land tax relief

    Eligible landlords, except landlords of properties with multiple tenancies, can apply for the land tax reduction through My Land Tax, an online application for managing your land tax:

    Once you are logged in to My Land Tax:

    1. Select 'COVID-19 land tax relief for eligible land owners' on the dashboard.
    2. For the property you want to claim land tax relief, select 'Manage property' and from the drop down box, select 'I want to apply for COVID-19 land tax relief'.
    3. Answer all questions in relation to your application and upload documentary evidence for your claim as required.
    4. If you have more than one property for which you want to claim coronavirus land tax relief, you need to follow steps 2-3 for each property. Note: You need to lodge separate applications for each property and cannot claim for more than one property in the same application.

    Landlords of properties with multiple tenancies

    Landlords of properties with multiple tenancies can apply for land tax relief via our Coronavirus land tax relief - Multiple tenancy properties SmartForm. You also need to download and complete a Multiple Tenancy Schedule to accompany your application.

    You cannot apply for land tax relief for properties with multiple tenancies through My Land Tax, but must use the form, which has been designed for your situation.

Next Steps

Once you have submitted your application via My Land Tax, and any further eligibility conditions are settled, we will review it and let you know the outcome.

 

Last modified: 30 October 2020
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