COVID-19 VIC: Business, Non-Profits, Individuals – Coronavirus Land Tax Relief

This program aims to provide land tax relief for commercial and residential landlords in response to coronavirus. It forms part of the Victorian Government's $1.7 billion economic survival and jobs package, which has been developed to help Victorian businesses and workers survive the devastating impacts of the coronavirus pandemic.

The 2020 land tax relief measures are:
1. Land tax deferral for 2020 assessments (announced on 21 March 2020)
- Land owners due to pay 2020 land tax that own at least one non-residential property and have total taxable landholdings below $1 million are not required to pay their 2020 land tax assessment until 31 March 2021.

2. Land tax reduction and deferral for landlords, including those with properties that have multiple tenancies, and commercial owner-occupiers
- On 15 April 2020 the Victorian Government announced a land tax reduction of 25% and deferral for landlords who provide tenants impacted by coronavirus with rent relief consistent with the principles of the Support to Landlords and Tenants package between 29 March 2020 and 31 December 2020, or who are unable to secure a tenant during 2020 because of coronavirus. These landlords can defer payment of the remainder of their 2020 land tax assessment until, or before, 31 March 2021. They can also have any amounts of their 2020 land tax liability that they have already paid returned but must pay their 2020 land tax liability (as reduced by this relief measure) by 31 March 2021.
- On 20 August 2020, the Victorian Government announced further land tax relief for landlords, in response to the coronavirus pandemic, as part of its extension of the commercial and residential tenancy relief schemes until 31 December 2020. Landlords of residential and commercial properties who provide a 50% or more outright rent waiver of at least three months’ rent to eligible tenants can claim up to a 50% reduction of the property’s 2020 land tax and defer paying the remaining 2020 land tax to 31 March 2021. Vacant properties are not eligible for the additional 25% land tax reduction.

The 2021 land tax relief measures are:
1. Land tax reduction and deferral for landlords, including those with properties that have multiple tenancies, and commercial owner-occupiers (announced on 4 September 2020 and in December 2020)
- Landlords who provide tenants impacted by coronavirus with rent relief consistent with the principles of the Support to Landlords and Tenants package between 1 January 2021 and 28 March 2021 may be eligible for a 25% reduction on the property’s 2021 land tax (exclusive of any absentee owner surcharge).
- These landlords can 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, 30 November 2021. They can also have any amounts of their 2021 land tax liability that they have already paid returned but must pay their 2021 land tax liability (as reduced by this relief measure) by 30 November 2021.
- Applications are currently open for residential landlords, and landlords of properties with multiple tenancies (residential and/or commercial) until 30 June 2021.
- Applications for commercial landlords of properties with a single tenancy, and owner-occupiers are yet to be announced.

2. Vacant residential land tax waiver for 2021 (announced on 10 September 2020)
- On 10 September 2020, the Victorian Government announced a full waiver of 2021 vacant residential land tax liabilities, which would ordinarily apply to residential properties in Melbourne’s inner and middle suburbs, that were vacant for more than six months in 2020.
- Eligible applicants must notify SRO of vacant properties by 15 January 2021 via their online portal so the waiver can be automatically applied. Landlords will not get an assessment and do not have to pay the vacant residential land tax in 2021.

Please refer to the website for more information.

Please refer to the website for the eligibility requirements of each type of tax relief measure.