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The Victorian Government has announced land tax relief for landlords in response to coronavirus (COVID-19).

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

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

If we have already advised you that your 2020 land tax has been deferred, you will only be applying for the 25% land tax reduction. If you have not been advised of a deferral, you can apply for a deferral at the same time as you apply for the 25% land tax reduction.

  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), your tenant must be:
    • If the tenant operates a licensed pub, club or restaurant:
      • 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 financial year, or their expected turnover in the 2019-20 financial year is less than $50 million.
    • If the tenant is residential, the agreement must be a tenancy agreement, a specialist disability accommodation agreement or a site agreement.
    • Both you and your tenant must have agreed to a reduced rent, unless the tenant is a commercial tenant where land tax is an outgoing which is the contractual responsibility of the tenant, or the rent relief is the outcome of an approved mediation process.
    • The rent reduction provided between 29 March 2020 and 29 September 2020 (in dollar terms) must be at least 25% of the 2020 proportional land tax (exclusive of absentee owner surcharge) for that property.

    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.

    While the Victorian Government may settle further conditions for eligibility, you can apply for coronavirus land tax relief if you meet these general criteria.

    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 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.
  3. Apply via My Land Tax

    Eligible landlords 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.

Next Steps

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

If your application is allowed, we will automatically defer payment of any outstanding land tax from your 2020 assessment up to 31 March 2021.

Last modified: 5 August 2020
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