With so much Covid19 related information coming through on a daily basis it is hard to keep up with it all. You may have seen Landlord Financial Support packages but not sure exactly about it.
A landlord can claim either this Payment or the COVID-19 land tax benefit (which is an offset of the land tax liability equal to the rent reduction granted), but not both.
Applying for Assistance
Online applications are now available.
Only the landlord or their managing agent can claim the payment, which is paid direct to the landlord’s account or agent’s trust account as nominated by the applicant.
You will be asked to provide:
1. proof of the residential tenancy arrangement, including the rental bond number or, if no bond has been lodged, a copy of the residential tenancy agreement. If you don’t have either, you can still apply and will need to upload other proof to show a tenancy agreement exists
2. a copy of the written agreement to reduce or waive rent from 14 July 2021
3. consent from the tenant to share their personal details with Fair Trading
4. a nominated account for payment. For managing agents this should be the agency’s rental trust account.
Payments made to managing agents are treated as any other rent payment and will be subject to the usual fees applied under the managing agency agreement.
In most instances, the payment will be received in a short period of time where the details of the tenancy agreement can be verified against rental bond data. Other circumstances will take longer.
The Residential Tenancy Support Payment provides up to $3000 per tenancy agreement.
This payment will be available for landlords who agree to reduce the rent for COVID-19 impacted tenants from 14 July 2021. The amount for each landlord will be capped at the rent reduction that is passed onto the tenants, or $3000, whichever is the lower.
Landlords can make separate claims for each premise they own.
Landlords cannot ask tenants to repay the reduced amount of rent that has been paid to them under the Residential Tenancy Support Payment or land tax benefit.
A landlord is eligible for this payment where:
– there is a residential tenancy agreement with a tenant – as proof, you will need a rental bond number or a written tenancy agreement;
– the tenant is an eligible COVID-19 impacted tenant; and
– the landlord has entered a written agreement with the tenant to reduce or waive rent payable from 14 July 2021. A copy of this agreement will be required with a claim for Payment.
– A landlord can agree to vary the rent for a period that goes beyond 11 September 2021.
– Rent reductions beyond 11 September 2021 may be claimed as part of the payment.
A landlord can also:
– reduce or waive rent in excess of $3000;
– reduce or waive rent arrears that accrued before 14 July 2021;
– agree to vary the rent for a tenant who is not an eligible COVID-19 impacted tenant; or
but these arrangements cannot be claimed as part of the payment.
There are also a range of other financial supports available. See nsw.gov.au
2021 land tax COVID-19 relief – Guidelines (1 July 2021 – 31 December 2021)
Reduction in land tax payable
A landowner can receive a reduction of up to 100 per cent of land tax payable for the 2021 land tax year, subject to the terms of these guidelines.
A landowner providing a reduction in rent to a tenant between 1 July 2021 and 31 December 2021 can receive a reduction in land tax payable for the relevant parcel of land.
The land tax reduction will be the lesser of:
– the amount of rent reduction provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
– 100 per cent of the 2021 land tax attributable to the parcel of land leased to that tenant.
Landowners can be eligible for land tax relief provided all eligibility requirements are met.
Landowners can also be eligible for land tax relief for either, or both 2020 land tax COVID-19 relief and 2021 land tax COVID-19 relief, provided all eligibility requirements are met.
Land tax attributable to a parcel of land is calculated as follows:
Taxable value of the parcel of land divided by aggregate taxable value of all parcels of land, multiplied by landowner’s 2021 land tax liability.
If you haven’t completed payment of your land tax for 2021, the relief granted will be used to offset the balance of land tax you have left payable. If your land tax for 2021 has been paid in full, the reduction can be refunded to you.