Land tax relief for Landlords

Land Tax Relief for Landlords

The Victorian Government has just announced land tax relief for landlords as part of its Economic Survival Package in repose to the COVID-19 crisis.

Landlords who provide tenants impacted by COVID- 19 with rent relief may be eligible for a 25% reduction in the property’s 2020 land tax.

This relief is also available to land owners who are unable to secure a tenant because of COVID-19.

Landlords can also defer the remainder of their 2020 land tax to 31 March 2021. The State Revenue Office will contact all taxpayers who are eligible for this deferral.

For commercial landlords to be eligible, the property must be rented to a tenant with an annual turnover of up to $50 million, and the tenant must be eligible for the Commonwealth Government’s JobKeeper Payment, ie. experienced a 30% reduction in turnover due to coronavirus.

For residential landlords to be eligible, Tenants must prove they are in rental distress – paying more than 30 per cent of their wage or entitlements on rent, and must have less than $5000 in savings in the bank.

Landlords must also prove they have struck an agreement with tenants to reduce the rent, to qualify for land tax reductions.

Other facts: 

To provide much needed peace of mind and security:

  • Evictions will be banned for residential tenancies for six months, except in some circumstances.
  • Evictions will be banned for six months for the non-payment of rent for commercial tenancies involving small and medium-sized businesses.
  • Rental increases will be banned for commercial and residential properties for the same period.

To get through this crisis, the Government is asking parties to “work together”. Partnerships will have to be formed between tenants and landlords, and landlords and their banks – to help people continue to pay the rent and keep a roof over their heads.

Tenants and landlords who struggle to strike a deal over rent reductions will be given access to a fast-tracked dispute resolution service, with Consumer Affairs Victoria or the Victorian Small Business Commission mediating to ensure fair agreements are reached.


If you have any queries, please email: or contact your Accountant directly via email.

This is a general summary only. For more information, please contact your Accountant.