Victorian SRO - 2021 Land Tax Relief Applications Opening Soon

The Victorian Government recently issued a reminder that 31 March is the end of the "land tax year" and this is important to note when considering the relief measures provided due to the economic impact of the pandemic.  

The relief measures for the 2020 land tax year are ending soon, and applications for the 2021 land tax year are opening soon.

Generally, the same relief measures are being extended into the 2021 land tax year.   However, one relief package will not be available for the 2021 land tax year, where landlords of residential and commercial properties were given an additional 25% land tax reduction (ie. increased from 25% to 50%) when they provided 50% or more outright rent waiver of at least 3 months' rent to eligible tenants.    This additional 25% land tax reduction (ie. increased from 25% to 50%) is not available for the 2021 land tax year.

2020 applications closing on 31 March 2021

Applications for 2020 land tax relief close at midnight on Wednesday 31 March 2021, for all categories, including:

• residential landlords;
• commercial landlords; and
• commercial owner-occupiers.

More information about 2020 land tax relief can be found on the SRO website.

2021 applications opening soon

The opening dates for applications for 2021 land tax relief will depend on the category of landlord, with some applications already open.  

Applications are currently open for:

• residential landlords - applications can be made via My Land Tax ; and
• landlords with multiple tenancies (residential and/or commercial) - applications can be made via the SRO's LTX-Form-22 (Note: The landlord also needs to download and complete a Multiple Tenancy Schedule to accompany their application).

Applications will be opening soon for:

• commercial landlords of properties with a single tenancy - applications can be made via My Land Tax on Monday 12 April 2021; and
• commercial owner-occupiers - applications can be made via My Land Tax on Monday 26 April 2021.

Applications for 2021 land tax relief close on 30 June 2021.

What land tax relief is available for properties with multiple tenancies?

Landlords of properties with multiple tenancies can make a single application for 2021 land tax relief (ie. up to a 25% reduction) for the whole property, rather than just for the part of the property occupied by eligible tenants who have received rent relief.

A property with multiple tenancies includes:

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

Landlords can receive a reduction of up to 25% on the 2021 land tax of your property with multiple tenancies if they provide rent relief to tenants at the property that is consistent with the principles provided under the Support to Landlords and Tenants package announced on 15 April 2020, which for commercial tenants includes complying with the requirements of the Commercial Tenancy Relief Scheme.

The 2021 land tax reduction is limited to the total amount of rent the landlord waives in relation to eligible tenants at the property (and tenants are not required to repay at a later date).   Where land tax is an outgoing that is the contractual responsibility of the tenant, any land tax discount passed on to the tenant can count towards the total amount of rent waived.

Landlords of properties with multiple tenancies (residential and/or commercial) can apply for the land tax relief via the links provided above.

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Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.