Support for small business tenants
The NSW Government enacted the Retail and Other Commercial Leases (COVID-19) Regulation. This requires property owners to negotiate rent relief agreements with eligible tenants in financial distress due to COVID-19.
In addition, the NSW Government have now reinstated the Commercial Leasing Code of Conduct.
Under the Code of Conduct principles, owners must offer tenants rent relief proportionate to the tenant’s decline in turnover. Landlords must then waiver at least 50% of the rent relief provided. The balance will be deferred to a later date.
Support is available to landlords who provide tenants with rental relief.
Landlords leasing commercial properties
For landlords with tenants financially impacted COVID-19 NSW Lockdowns, the NSW Government are providing land tax concessions if they provide rent reduction to their tenants.
Landlords that provide reduced rent to commercial tenants between 1 July 2021 and 31 December 2021 may be eligible for a reduction in land tax payable for the relevant parcel of land.
The value of the land tax reduction will be the lesser of:
- The amount of the rent reduction provided to an eligible tenant, or
- 100% of the land tax attributable to the parcel of land leased to that tenant.
To be eligible for the land tax relief you must meet the following criteria:
- Your commercial tenant is suffering from financial distress as a result of COVID-19
- The tenant must have an annual turnover of up to $50 million and is approved for the Micro-business COVID-19 Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver schem
Apply here for Land Tax Relief https://www.service.nsw.gov.au/transaction/apply-covid-19-land-tax-relief
Furthermore, the NSW government have also announced that they will establish a $40 million Hardship Fund that will provide a monthly grant of up to $3,000 for small commercial or retail landlords. Further information regarding the Hardship Fund will be made available shortly.
Landlords leasing residential properties
Residential Landlords impacted by COVID-19 may be eligible under the Residential Tenancy Support Package, for land tax relief or a one-off grant payment. To be eligible, the landlord must be able to demonstrate that:
- They have provided rent relief since the 14th of July 2021, and
- The tenants have lost 25% or more of their household income.
The grant value is the amount of rent reduction passed on or $3,000, whichever is lower.
The value of the land tax reduction will be the lesser of the amount of the rent reduction provided to an eligible tenant or 100% of the land tax attributable to the parcel of land leased to that tenant.
You can apply for the grant here https://rtsp.fairtrading.nsw.gov.au/forms/8165
For assistance determining your eligibility for current government assistance contact us today