• The new package includes $100 million land tax relief for commercial landlords
• 25 percent land tax relief available for landlords who provide rent and outgoing waivers for small business tenants
• A further $24.5 million will be directed towards the building and construction industry to save jobs

COMMERCIAL LAND TAX RELIEF PACKAGE

The State Government has just announced a new suite of measures aimed at supporting the property and construction industry during the COVID-19 pandemic. The measures complement existing announcements and both the commercial and residential tenancies legislation that passed Parliament earlier this week.

Land tax relief

Commercial landlords will be able to apply to the Small Business Development Commission from 1 May 2020 for land tax relief. The relief will be equivalent to 25 per cent on the land tax bill for a property where the landlord can demonstrate they have waived a small business tenant’s rent and outgoings for a minimum of three months starting 1 March 2020. Small business tenants must have had a 30 per cent or greater reduction in turnover for a landlord to be eligible. A further condition stated on the Small Business Development Commission’s website is that commercial landlords will not seek to recover the three months of rent and outgoings waived.

Residential rent subsidies

The State Government has committed $30 million to provide some certainty and rental income for residential landlords. The State Government will pay residential landlords directly up to a maximum of four weeks rent (capped at $2,000) where their tenants have lost their jobs and are experiencing financial hardship. Other eligibility criteria include that the tenant must have applied for Centrelink assistance due to COVID-19, have less than $10,000 in savings and are spending at least 25% of their income on rent.

Construction industry grants

The announcement includes $10 million put aside for employers to receive a one-off $2,000 payment for apprentices and trainees who are receiving Construction Training Fund grants.

An addition $9 million will be used to make payments to employers in order to retain existing apprentices. The payments, that will be backdated from 1 April 2020 and be available from 1 June 2020, will range between $250 per month and $500 per month depending on the apprentice’s trade, prioritising those with the most critical skill needs. This measure will supplement existing Construction Training Fund arrangements and will exist for 6 months, with a review of its effectiveness after 3 months.

A further $5 million has been allocated for construction industry trainees and apprentices to complete short courses that will allow them to upskill during the COVID-19 pandemic. Individual trainees and apprentices will be able to claim up to $1,000 to cover the costs of any short courses.

Source: The Property Council of Australia