Category Archives: Tax

Don’t jump the gun and lodge too early

Tax time 2020 is here, but it’s likely to be anything but routine. Many individuals on reduced income or have increased deductions may be eager to lodge their income tax returns early to get their hands on a refund. However, the ATO has issued a warning against lodging too early, before all your income information becomes available. It’s important to remember that employers have until the end of July to electronically finalise your income statement, and the same timeframe applies for other information from banks, health funds and government agencies.

For most people, income statements have replaced payment summaries. So, instead of receiving a payment summary from each employer, your income statements will be finalised electronically and the information provided directly to the ATO. Your income statements can be accessed through myGov and the information is automatically included in your tax return if you use myTax.

Tip: Tax agents can also access this information, and we’re here to help you get your return right this year.

Although you may be eager to lodge as soon as possible, the ATO has warned against lodging too early, as much of the information on your income may not be confirmed until later. It’s generally important to wait until income statements are finalised before lodging a tax return to avoid either delays in processing or a tax bill later on. Your income statement will be marked “tax ready” on myGov when it’s finalised, and other information from banks, health funds and government agencies will be automatically inserted into your tax return when it’s ready towards the end of July.

If you still choose to lodge early, the ATO advises carefully reviewing any information that’s pre-filled so you can confirm it’s correct. When lodging early you’ll
also have to formally acknowledge that your employer(s) may later finalise income statements with different amounts, meaning you may need to amend your tax return and additional tax may apply.

Tax return tips

With the great disruptors of the Australian bushfires and the global coronavirus (COVID-19) pandemic, and the associated government economic stimulus measures, there are some key tax-related matters for everyone to be aware of this year.

The ATO has a range of approaches to support taxpayers through tax time 2020, especially where new circumstances mean you might be receiving a different type of income or be able to claim new deductions. The ATO’s Tax Time Essentials page (www.ato.gov.au/taxessentials) provides a one-stop-shop for the things that are a little different this year and how they impact tax returns.

People accessing super early as a part of the COVID-19 early release scheme can rest assured that this money will not form a part of their assessable income. To date, 1.98 million people have withdrawn an average of $7,475 from their super under the scheme.

Another key difference this year is the introduction of the optional simplified method for claiming work from home expense deductions. This method allows you to claim 80 cents for each hour you worked from home from 1 March 2020 to 30 June 2020, to cover all deductible expenses. However, if you were working from home before 1 March 2020 or have documented actual expenses that work out to be more than 80 cents per hour you can still use the usual method to claim expenses related to working from home.

If you were unable to work from home and had to take leave or were temporarily stood down, if your employer made any kind of payment, either regular or one-off, those amounts will need to be declared as wages and salary on your return and tax will apply at your usual marginal rates. This applies regardless of whether the payments are funded by the government JobKeeper scheme.

If you’ve been made redundant or had your employment terminated, any payment you receive may consist of a tax-free portion and a concessionally taxed portion, which means that you could potentially pay less tax.

ATO’s employees guide for work expenses updated

The ATO has updated its employees guide for work expenses for 2019–2020. The document is designed to assist employees to determine whether incurred expenses are tax deductible, and outlines the substantiation requirements.

The following are highlighted as being new for 2019–2020:

  • The additional method for calculating running expenses incurred as a result of working from home (the “shortcut method” allowing an 80 cents per hour deduction) was introduced to help employees working from home during the COVID-19 pandemic. This method was initially only available to use from 1 March 2020 to 30 June 2020, but has now been extended to 30 September 2020.
  • Taxation Ruling TR 2020/1 Income tax: employees: deductions for work expenses under s 8-1 of ITAA has been released. This ruling provides guidance on when an employee can claim a deduction for a work expense.

The employees guide highlights “common myths” about expenses – for example, the myths that everyone can automatically claim $150 for clothing and laundry, 5,000 km of travel under the cents per kilometre method for car expenses, or $300 for work-related expenses, even if they didn’t spend the money, or that employees can claim gym membership if they need to be fit for work.

FBT: cars garaged at employees’ homes during COVID-19

The ATO has published a fact sheet to assist employers in determining if they have an FBT liability where cars are garaged at employees’ homes because of COVID-19.

The fact sheet states that the ATO will accept that an employer isn’t holding a car for the purposes of providing fringe benefits where the car isn’t being driven at all, or is only being driven for maintenance purposes. Provided that the employer elects to use the operating cost method and maintains odometer records, the employer will not have an FBT liability for
a car. Without electing to use the operating cost method or not having odometer records, the statutory formula method applies and an FBT liability will arise as the car garaged at the employee’s home is taken to be available for private use.

Where a home-garaged car is being driven by an employee for business purposes, the ATO says the employer may be able to reduce the taxable value of the car fringe benefit by taking into account the business use, provided the employer has logbook records and odometer records for the period in question. Logbook records will need to be for at least:

  • 12 continuous weeks; or
  • until the car stops being garaged at home, if this is less than 12 weeks.

The fact sheet also provides information on logbook requirements for car fringe benefits and options for employers to consider where COVID-19 has impacted driving patterns.

Loans put on hold and debt forgiveness: ATO’s views

Loans put on hold and debt forgiveness: ATO’s views

The ATO has “clarified” its position on loans put on hold during COVID-19. The ATO will consider a debt to be forgiven for tax purposes if:

  • the debtor is somehow relieved from the legal obligation to repay it; or
  • there is evidence that the creditor won’t insist on repayment or rely on the obligation for repayment.

A debt is not considered to be forgiven if a creditor only postpones an amount payable and the debtor acknowledges the debt – unless there is evidence that the creditor will no longer rely on the obligation for repayment.

The Div 7A implications are specifically spelt out (as a debt forgiven by a private company can be treated as a deemed dividend). For these purposes, a debt is forgiven if a reasonable person would conclude a creditor will not insist on payment or rely on the borrower’s obligation to pay. However, simply allowing more time to repay a debt due to COVID-19 will not result in the debt being treated as forgiven.

PM announces pandemic leave disaster payment for Victoria

Prime Minister Scott Morrison announced on 3 August 2020 a Federal Government “pandemic leave disaster payment”. The payment will be a one-off amount of $1,500, available to workers in Victoria who have no sick leave available who have to self-isolate for 14 days as a result of an instruction by a public health officer.

It will only apply to workers in Victoria, where the Government has declared a “state of disaster” and imposed Stage 4 lockdowns, which are expected at this point to run until mid-September.

The Victorian Government has already announced that it will provide a disaster payment, principally made to those on short-term visas; that is, those who are not permanent residents or citizens of Australia who otherwise wouldn’t have accessed Commonwealth payments. The Federal Government will provide its payment to those who fall outside that scope and who don’t have leave available to them because it has been used up.

Accessing the Federal Government payment

Services Australia has provided further details on its website. It states that, to get this payment, the applicant must:

  • be at least 17 years old;
  • live in Victoria; and
  • have no income from paid work, including sick leave entitlements.

In addition, the Victorian Department of Health and Human Services must also have told the applicant to self-isolate or quarantine. They must have done this because the applicant:

  • has COVID-19;
  • has been in close contact with a person who has COVID-19;
  • cares for a child, aged 16 years and under, who has COVID-19; and/or
  • cares for a child, aged 16 years and under, who has been in close contact with a person who has COVID-19.

If a person has to self-isolate more than once, they can claim this payment each time. However, a person cannot get this payment if they already receive:

  • an income support payment, ABSTUDY Living Allowance, Paid Parental Leave or Dad and Partner Pay;
  • the JobKeeper payment; or
  • the Victorian Coronavirus (COVID-19) Worker Support Payment.

Coronavirus Worker Supplement Payment (Victoria)

The Victorian Government announced its Coronavirus Worker Supplement Payment on 30 July. To be eligible for a one-off $1,500 Coronavirus (COVID-19) Worker Support payment, the claimant must have been instructed by the Department of Health and Human Services:

  • to self-isolate or quarantine at home because they are either diagnosed with coronavirus (COVID-19) or are a close contact of a confirmed case; or
  • that a child aged aged under 16 in the claimant’s care needs to self-isolate or quarantine at home because they are either diagnosed with coronavirus (COVID-19) or are a close contact of a confirmed case.

To receive the payment, the claimant must:

  • be 17 years and over;
  • be currently living in Victoria (including people on Temporary Protection Visas and Temporary Working Visas 457 and 482);
  • be likely to have worked during the period of self-isolation or quarantine and are unable to work as a result of the requirement to stay at home;
  • not be receiving any income, earnings or salary maintenance from work;
  • have exhausted sick leave entitlements, including any special pandemic leave; and
  • not be receiving the JobKeeper payment or other forms of Australian Government income support.

There is no requirement for a claimant to be a citizen or permanent resident to be eligible for the Victorian Government payment.

JobKeeper changes: turnover test and employment start date

Prime Minister Scott Morrison announced further changes to JobKeeper on 7 August 2020. The changes are intended to ensure that eligibility for the revised JobKeeper scheme – to commence on 28 September 2020 – will be based on a single quarter tax period, rather than multiple quarters as previously announced. Employees hired as at 1 July 2020 will now also be eligible to receive JobKeeper.

Treasury has updated its JobKeeper factsheets as at 7 August 2020 to incorporate the PM’s announcements.

The JobKeeper rules implemented in March 2020 in response to the COVID-19 pandemic were due to finish on 27 September 2020. The Government then announced on 21 July 2020 that the scheme would be extended for six months (until 28 March 2021), in an amended form.

The key highlights of JobKeeper Version 2 – to start on 28 September – are that:

  • the extended scheme will apply at a top rate of $1,200 per employee (down from the current $1,500) per JobKeeper fortnight from 28 September 2020 until 3 January 2021, then drop to $1,000 until 28 March 2021;
  • lower rates will apply for part-time and casual employees; and
  • businesses will be required to re-test their eligibility for the payment scheme to access the extension.

Changes to turnover test

The latest changes relate to the eligibility test announced in JobKeeper Version 2.

JobKeeper Version 2 originally required that, from 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper payments would have to meet a further decline in turnover test for each of the two periods of extension, as well as meeting the other existing eligibility requirements. That is, at that time businesses would have been required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020.

The PM has eased the proposed changes to turnover tests for businesses Australia-wide.

The changes mean that businesses will now only be required to show the requisite actual decline in turnover for the September quarter, rather than for both the June and September quarters. Similarly, businesses will only need to demonstrate a decline in turnover for the December 2020 quarter, rather than each of the June, September and December 2020 quarters.

JobKeeper reference date now 1 July 2020

For JobKeeper fortnights beginning on or after 3 August 2020, the reference date for determining certain employee eligibility conditions has been changed from 1 March 2020 to 1 July 2020. The purpose of this change is to extend the scope of JobKeeper so that “it also benefits employers of more recently engaged employees”.

Importantly, the changed rules preserve the existing eligibility of employees for JobKeeper payments; that is, those for whom employers are currently receiving JobKeeper, termed “1 March 2020 employees” because they satisfied the rules as at that date.

As a result, for JobKeeper fortnights beginning on or after 3 August 2020, an individual can be an eligible employee if they:

  • meet the eligibility requirements with reference to the new 1 July 2020 date; or
  • qualify as a 1 March 2020 employee.

Newly eligible employees

The later reference date provides the opportunity for qualifying employers to access JobKeeper for those employees who they engaged after 1 March 2020 and who were in an employment relationship as at 1 July 2020. That is, for new employees engaged after 1 March.

The changes also allow employers to qualify for JobKeeper payments for those employees who do not qualify as 1 March 2020 employees, but became eligible by meeting the conditions under the new 1 July 2020 reference date.

Existing and re-employed employees

The amending rules make no changes to the existing eligibility of employees who are already covered by JobKeeper; that is, those for whom the employer has been receiving the benefit based on their status as at 1 March 2020. In other words, eligible 1 March 2020 employees do not need to retest (and potentially lose) their eligibility for their employer due to the introduction of the 1 July 2020 date, or satisfy any new nomination requirements.

Although employees do not qualify as 1 March 2020 employees if their employment has ceased since 1 March, they may qualify for JobKeeper if they are engaged by another employer as at 1 July 2020. Further, if 1 March 2020 employees are made redundant by an employer and are later re-employed by the same employer (including after 1 July 2020), there is scope for them to qualify without further testing.

Employer obligations

Employers that are already participating in the JobKeeper program are required to give a notice to all employees about the revised JobKeeper reference date, other than:

  • employees to whom the employer has previously given a notice in writing advising that the employer has elected to participate in the JobKeeper scheme;
  • employees who had previous provided the employer with a nomination form in relation to the JobKeeper scheme;
  • individuals who the employer reasonably believes do not satisfy the 1 July 2020 requirements; and
  • employers that are ACNC-registered charities that have elected to disregard certain government and related supplies and the individual’s wages and benefits are funded from such government and related sources.

Further, to be eligible for the JobKeeper payment for any newly eligible employees under the 1 July 2020 reference date, a qualifying employer must provide notice to the ATO of information about that employee and their nomination. Where an employer has provided this notification to the ATO for entitlement to receive JobKeeper payments in respect of the eligible employee, the employer must notify the employee within seven days.

For those employers entering JobKeeper for the first time, the notification requirement will apply to all of their employees.

Extension of JobKeeper “UPDATED”

The Treasury has announced the following update in relation to the JobKeeper program:

  1. JobKeeper 1.0 will remain till 27 September 2020 and
  2. thereafter, JobKeeper 2.0 will continue for a further six months till 28 March 2021.

The changes to JobKeeper are:

  • There will be two rates of JobKeeper payments for eligible businesses (including self-employed) and not-for-profits:

1. From 28 September 2020 to 3 January 2021:

  • A $1200 payment per fortnight for:

    –  eligible employees who worked 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and

    –  eligible business participants who were actively engaged in the business for 20 hours or more per week on average

  • A $750 payment per fortnight for other eligible employees and business participants.

2. From 4 January 2021 to 28 March 2021:

  • $1000 payment per fortnight for:

    –  eligible employees who worked 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and

    – eligible business participants who were actively engaged in the business for 20 hours or more per week on average

  • A$650 per fortnight for other eligible employees and business participants

The JobKeeper payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery. The two-tiered payment aims to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic.

  • Further changes were announced on 7 August 2020 to adjust the employee reference date for eligibility and make it easier for organisations to access JobKeeper. From 3 August 2020, the relevant date for employment will move from 1 March to 1 July 2020.
  • The thresholds for the decline in turnover test will remain the same but now the test must be applied at several points:

    –  To be eligible for the JobKeeper payments from 28 September 2020 to 3 January 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for the September quarter 2020 (July, August, September) only based on actual GST turnover.

    –  To be eligible for the JobKeeper payments from 4 January 2021 to 28 March 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for the December quarter 2020 (October, November, December) only based on actual GST turnover.

The requirement to reassess the eligibility for the JobKeeper payments over the extension period is to ensure that only the businesses that need the most help will continue to receive the payments.

The JobKeeper payment will remain open to new recipients provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.

The Commissioner of Taxation will have discretion to set alternative tests where an employee’s or business participant’s hours were not usual during the February and/or June 2020 reference period.

The period with the higher number of hours worked is to be used for employees with 1 March 2020 eligibility.

Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee (i.e. the wage condition).

The changes are expected to be implemented through amendments to legislation and the legislative instrument, Coronavirus Economic Response Package (Payments and Benefits) Rules 2020.

If you have any questions, please contact your Accountant for further clarification.

The Treasury has announced the following:

  1. JobKeeper 1.0 will remain till 27 September 2020 and;
  2. thereafter, JobKeeper 2.0 will continue for a further six months till 28 March 2021.

The changes to JobKeeper are:

  • There will be two rates of JobKeeper payments for eligible businesses (including self-employed) and not-for-profits:

1. From 28 September 2020 to 3 January 2021:

  • for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1200 per fortnight
  • for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$750 per fortnight.

2. From 4 January 2021 to 28 March 2021:

  • for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1000 per fortnight
  • for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$650 per fortnight.

The JobKeeper payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery. The two-tiered payment aims to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic.

  • The thresholds for the decline in turnover test will remain the same but now the test must be applied at several points:
    • To be eligible for the JobKeeper payments from 28 September 2020 to 3 January 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for the June quarter and for the September quarter based on actual GST turnover.
    • To be eligible for the JobKeeper payments from 4 January 2021 to 28 March 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for each of the June, September and December quarters based on actual GST turnover.

The requirement to reassess the eligibility for the JobKeeper payments over the extension period is to ensure that only the businesses that need the most help will continue to receive the payments.

The JobKeeper payment will remain open to new recipients provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.

The Commissioner of Taxation will have discretion to set alternative tests where an employee’s or business participant’s hours were not usual during the February 2020 reference period.

Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee (i.e. the wage condition).
The changes are expected to be implemented through amendments to the legislative instrument, Coronavirus Economic Response Package (Payments and Benefits) Rules 2020.

Changes to the JobSeeker program include:

  • The JobSeeker coronvirus supplement will decrease to A$250 a fortnight from A$550. Therefore, people on JobSeeker will receive a decrease from A$1100 to A$800 (base rate of A$550 plus the coronavirus supplement) per fortnight after September.
  • Recipients will be allowed to earn A$300 a fortnight before facing a reduction in their Government payment.
  • Easing of restrictions for sole traders.

In conjunction with the Government’s announced changes, Treasury has released the report, The JobKeeper Payment: Three-month review. The Government considered the findings in the report in formulating its changes to the JobKeeper payment.

If you have any questions, please contact your Accountant for further clarification.

ATO Tackling International Tax Evasion

Australian tax residents are taxed in Australia on their worldwide income. While most do the right thing and declare all their income, some try to avoid paying tax by exploiting secrecy provisions and the lack of information-sharing between countries. As the world becomes more interconnected and barriers are broken down, it is inevitable that there are fewer places for the unscrupulous to hide from tax.

With the rise of the global economy and easy flow of money across borders, no country is immune to international tax evasion and money laundering. A recent coordinated effort with Joint Chiefs of Global Tax Enforcement (J5) shows that member countries, including Australia, are doing all they can to protect their tax revenue. This most recent investigation yielded evidence of tax evasion by Australians using an international institution located in Central America.

Tax chiefs from the J5 countries met in Sydney on 17–21 February 2020 to share information about common mechanisms, enablers and structures that are being exploited to commit transnational tax crime. The J5 was initially formed in 2018 to fight global tax evasion and consists of the tax and revenue agencies of Australia, United Kingdom, United States, Canada and the Netherlands. The countries share intelligence on international tax crime as well as money laundering.

The current international investigation started on information obtained by the Netherlands, which led to a series of investigations in multiple countries and concerned an international financial institution located in Central America whose products and services are believed to be facilitating money laundering and tax evasion for customers across the globe.

J5 members believe that through this institution, a number of clients may be using a sophisticated system to conceal and transfer wealth anonymously to evade their tax obligations and launder the proceeds of crime. The enforcement action consisted of evidence, intelligence and information-collecting activities such as search warrants, interviews and subpoenas.

According to the ATO, several hundred Australians are suspected of participating in these arrangements. The ATO is currently proceeding with multiple investigations with support from the Australian Criminal Intelligence Commission (ACIC). In addition, it is encouraging anyone with information about the scheme or other similar arrangements to contact the ATO.

ATO Deputy Commissioner and Australia’s J5 Chief, Will Day, has said, “this multi-agency, multi-country activity should degrade the confidence of anyone who was considering an offshore location as a way to evade tax or launder the proceeds of crime”.

While the J5 is a powerful tool, it is by no means the only one in the ATO’s arsenal. The ATO also has a network of international tax treaties and information exchange agreements with over 100 jurisdictions, and uses them to identify facilitators such as banks, lawyers and financial advisers. Once a pattern has been identified, such as a practitioner with a large number of clients using the same methods to avoid or evade tax, the ATO is likely to look closely at the entire client base.

In recent years over 2,500 exchanges of information have occurred, enabling the ATO to raise additional tax liabilities of $1 billion. The message from the ATO is that anyone with offshore income or assets is better off declaring their interests voluntarily. Those who do so may have administrative penalties and interest charges reduced.

It’s important to keep in mind that holding offshore assets is not just for the wealthy. Australians with migrant backgrounds may not even know they hold offshore assets in some cases, but those assets are still subject to tax law. For example, grandparents or other relatives may start a bank account in an Australian’s name in another country to make contributions celebrating a holiday, birthday or other life event.

Click here to read more on the ATO website.

About the program
The NSW government have introduced new measures to help provide relief for landowners of residential and commercial landowners who provide a reduction in rent to a tenant who is experiencing financial distress as a result of the COVID-19 crisis.

The COVID-19 land tax relief is intended to reduce a landowner’s land tax payable for 2020, by up to 25% for a taxable parcel of land where rent relief has been given to the tenant who occupies the land.

Landowners whom are eligible for the reduction may also defer their land tax payments by up to three months.

Reduction in land tax payable
If you are eligible, you will receive a reduction in your land tax payable for the 2020 Land Tax Year. Subject to the terms provided in the guidelines below.

The reduction will be the lesser of:

  • the amount of rent reduction provided to a tenant for any period between 1 April 2020 and 30 September 2020,
  • 25% of the land tax attributable to the land leased to that tenant.

Land tax attributable to a parcel of land is calculated as follows:

Taxable value of the land divided by aggregate taxable value of all parcels of land, multiplied by landowners’s 2020 land tax liability.

If you haven’t completed payment of your land tax before 2020, the relief will reduce or offset the amount you have left payable. If you have already paid your land tax for 2020, the reduction can be refunded to you.

3 month deferral of outstanding land tax
If you are eligible for this program, and receive a reduction, you’ll also be able to have your outstanding land tax payments deferred for up to three months

Eligible criteria
You will be eligible if:

  • you’re leasing a parcel of land to:
    – a commercial tenant, who has an annual turnover of up to $50 million, or
    – a residential tenant
  • the tenant is in financial distress as a result of COVID-19,
  • you reduce the rent of the affected tenant for any period between 1 April 2020 and 30 September 2020, and
  • for 2020, you have land tax attributable to the parcel of land leased to that tenant.

Financial distress
A tenant is considered to be in financial distress where:

  • for commercial tenants – there is a reduction in turnover compared to a previous comparable period of 30% (or more),
  • for residential tenants – there is a reduction in household income of 25% (or more).

You are responsible for verifying that your tenant is in financial distress.

Rent reduction
In order to be eligible, the rent reduction must not be required to be paid back at a later date. If a reduction in rent is provided, but is required to be paid back at a later date, this is considered to be a deferral of rent and will not be considered as a reduction of rent under this program.

If you are not eligible for the reduction in land tax or a deferral in land tax repayments under this program, but are experiencing difficulty in paying, you can still apply for a payment plan, to extend your payment due date. Click here to apply.

How to apply
To apply for the 2020 land tax COVID-19 relief, you will need to do so via Service NSW. Click here to access the application to apply for the program.

You will need the following too complete your application:

  • MyServiceNSW Account
  • Land Tax Client ID (can be found on your land tax assessment notice in the top right corner of the front page)
  • Land Tax Correspondence ID (can be found on your land tax assessment notice in the top right corner of the front page, under the Land Tax Client ID)
  • Land details for the parcel of land you are applying for the relief for
  • Supporting documentation to demonstrate eligibility for the program
    (examples of supporting documents include, but are not limited to:
    – to demonstrate that your tenant is in financial distress, as defined in the guidelines provided by Revenue NSW. (eg. your tenant’s financial statements, a letter from their accountant or property manager etc.
  • Your tenant’s permission to share their information with Revenue NSW.

Should any additional evidence be required to help establish the eligibility or validity of an application, Revenue NSW will contact the applicant directly.

Revenue NSW have advised that their aim is to process applications on a 30 day turnaround.

Other conditions
If you are applying for this program, once you have submitted the application, you must notify Revenue NSW by submitting an amended application as soon as possible, if there are changes in your circumstances or eligibility for this program. This includes a change in tenant or a change in rent during this period for which an application has been submitted.

An amendment to an application may result in a change to the amount of reduction in tax previously provided, under this program.

Any reassessment of a 2020 land tax liability that occurs after a reduction in land tax previously provided to you under this program.

Applications submitted for the 2020 Land Tax COVID-19 relief will be subject to potential compliance review for legitimacy.

Eligibility of both landowners and tenants can be reviewed to confirm that relief under this program has been submitted correctly.

Providing false or misleading information in an application for this program, or not notifying Revenue NSW of any changes in your circumstances, may result in a land tax reduction under this program being revoked. It is also an offence to provide false or misleading information and penalties may apply.