The NSW government has announced a range of COVID-19 tax relief measures as part of the economic package to assist impacted businesses. The Payroll and Land tax measures are summarised below.

Payroll tax reduction

A payroll tax reduction of 25% is available for the 2021/22 year for businesses that have experienced a 30% decline in turnover with payroll of between $1.2M and $10M. 

Businesses that lodge monthly returns have the option to defer their returns due in July and August until 7 October 2021. An option is also available to defer lodgement and payment of the 2020/21 annual reconciliation until 7 October 2021. Businesses may also be eligible for an interest free payment plan of up to 12 months 

Further details on these measures are expected to be released by revenue NSW towards the end of August.

Land Tax Relief 

Commercial tenancies: 

Landlords with commercial tenants may be eligible for a land tax reduction of up to 100% of the 2021 land tax attributable to a parcel of land if they have provided rent reductions to their tenants.

Landlords need to have provided the equivalent rental relief to tenants and the tenant must be eligible for the: 

• COVID-19 Micro-business support grant and / or 

• COVID-19 NSW business grant and / or

• JobSaver scheme 


Additionally, the rent reduction must not be required to be paid back at a later date. Outgoings such as utilities, rates, taxes or body fees are not considered rent for the purposes of determining eligibility. This means if a landowner provides a reduction of outgoings payable by the tenant, it won’t be counted as a rent reduction. 

The relief is available for rent reductions made from 1 July 2021 until 31 December 2021.

Residential tenancies: 

For landlords with residential tenants, where rent reductions have been provided, the concessions available are: 

• Reduction of up to 100% of 2021 land tax or 
• Grant of $1,500 to residential landowners to pass onto the tenant 


Landlords need to have provided the equivalent rental relief to tenants and the tenant must have lost 25% or more of their income.

The relief is available for rent reductions made from 14 July 2021.

Applications for land tax relief measures have now opened – please refer to the following link https://www.service.nsw.gov.au/transaction/apply-covid-19-land-tax-relief#proof-of-identity

Should you require assistance with substantiating the eligibility criteria, please reach out to your contact at ADX Accountants.