Compare the assistance available to landlords
The NSW Government is offering 3 types of support to commercial and residential landlords across NSW as part of the COVID-19 support package:
commercial landlord hardship fund
residential tenancy support payment
land tax relief for eligible commercial and/or residential landowners.
Use our guide to compare the assistance available and work out which one suits your situation.
COVID-19 land tax relief
Land tax relief is available for eligible commercial and/or residential landowners who have reduced their tenants’ rent due to COVID-19, between 1 July 2021 and 31 December 2021.
The relief will be a reduction in the 2021 tax payable on the parcel of land where a rent reduction has been given to the tenant who occupies that land.
The reduction in land tax payable 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 land tax attributable to the parcel of land leased to that tenant.
Commercial landowners can still apply for this period of land tax relief, even if they applied for any of the previous relief periods, provided they meet all the eligibility requirements.
Residential tenancy support payment
The residential tenancy support payment assists COVID-19 impacted tenants and their landlords to maintain tenancies and reduce financial hardship
The amount per tenancy agreement will be capped at whichever is lower:
- the amount of rent reduction provided to an eligible tenant during the eviction moratorium period, beginning 14 July 2021, or
If you're a residential landlord, you can apply for either the residential tenancy support payment or the land tax relief. You cannot apply for both, so you'll need to decide which is more appropriate for you, before applying.
From 11 November 2021, tenants can also apply for the residential tenancy support payment. Opening applications up to tenants as well as their landlords helps clear rental arrears, and avoid disputes or recovery action for rent, during the moratorium transitional period.
Tenant application claims must be paid into an agent’s trust account or landlord’s rent account (not the tenant’s personal account).
Commercial landlord hardship fund – applications are expected to open in late October 2021
The commercial landlord hardship fund will provide additional support to smaller landlords whose main source of income is impacted because they have provided rent relief to their tenant(s) and have not claimed land tax relief.
Small commercial or retail landlords, with total taxable land holdings of less than $5 million, may be eligible for a grant of up to $3,000 per month if they have provided rental waivers for their tenant(s).
More information is available in the Commercial Landlord Hardship Fund guidelines.
Commercial rent protection
If your business is unable to meet lease commitments due to the current COVID-19 public health orders, you may be eligible for protections under the Retail and Other Commercial Leases Regulation (COVID-19) 2021.
Under the Regulation, retail and commercial property owners must renegotiate rent with eligible tenants in good faith having regard to the leasing principles in the Code of Conduct and the economic impact of the COVID-19 pandemic. If parties are unable to come to an agreement, they must first attend mediation to try and resolve a lease dispute before a lessor can take certain actions against the lessee.
Common questions and case studies
Visit Commercial leases and COVID-19 Common Questions for more information about the support available to commercial tenants and landlords.