Updated: 28 April 2020

Government Stimulus Measure:

SA Land Tax Relief

What is the stimulus/relief?

Entities and individuals with outstanding South Australian land tax for 2019/20 can defer their quarterly payments for up to six months.

From 2020-21 the Land Tax Transition Fund relief, that was introduced as part of the recent significant land tax reform, will be increased from 50% to 100%.

Commercial and residential landlords who provide rent relief to tenants impacted by COVID-19 may be eligible for a 25% reduction on the affected property's land tax for 2019/20, provided that the relief landlords pass on to tenants is at least the same value of the land tax reduction, from 30 March 2020 up to and including 30 October 2020. 

This relief also extends to land owners who are unable to find a tenant due to COVID-19, if they can show their land was leased at 30 March 2020, however is now vacant as a result of COVID-19.

What is the aim of this initiative?

This measure is designed to support South Australians through the coronavirus pandemic by providing cash flow relief.

Who is eligible?

Entities and individuals currently paying land tax quarterly will be able to defer their third and fourth quarter instalments for up to six months.

For residential landlords to be eligible for the 25% reduction, the tenant must be facing financial hardship due to COVID-19. For commercial landlords to be eligible, the tenant must have an annual turnover equal to or less than $50 million and be eligible for the JobKeeper Payment. 

How do I get it?

There is no need to apply for the deferral, it will be applied automatically. Quarterly land tax notices will be issued as normal with details on how the deferral will operate.

Who should use this stimulus/other considerations?

This stimulus measures will not provide any assistance for those who have already paid their land tax in full.

The Land Tax Transition Fund relief is transitional relief for taxpayers with land tax greater than $2,500, who have had an increase in their land tax assessment as a result of the changes in aggregation of land owned. However, the relief does not apply to increases in relation to trust surcharge amounts.

Previously the relief was calculated as 50% of the increase in the land tax assessment in 2020-21, the relief has now increased to be equal to 100% of the increase.

Taxpayers with an increase above $102,500 are not eligible for any relief.

More Info: https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief

Closing comment

The Government is moving quickly and things are changing daily with regards to the response to COVID-19.  

Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact our office for more information.