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Land tax deferral – a relief for land owners during COVID-19

01 April 2020

#Property & Real Estate, #Dispute Resolution & Litigation, #COVID-19

Land tax deferral – a relief for land owners during COVID-19

In our previous article on land tax assessments here, we discussed the need to promptly object to your land tax assessment notice if you consider that the valuation placed on your property is too high. Any objection must be lodged within 60 days of receiving your land tax assessment notice from the State Revenue Office (SRO).

The Victorian Government has announced a range of tax measures to support businesses through Victoria’s State of Emergency, as part of a broader economic survival package to support business and jobs in response to COVID-19. One such measure is that eligible land owners can now defer their 2020 land tax payment.

However, no extensions of time has been announced in relation to objecting to your land tax assessment notice.

Who is eligible for a deferral?

Only land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million are able to defer payment. 

Non-residential property includes:

  • commercial property
  • industrial property; or
  • vacant land (excluding residential vacant land).

How do I know if I am eligible?

The SRO will directly contact all eligible taxpayers directly in relation to this measure. You do not need to do anything at this stage.

How long can I defer payment?

If you are eligible, your 2020 land tax payment can be deferred until after 1 January 2021 and will need to be paid in full by 31 March 2021.

What if I have already paid my 2020 land tax?

You can request a return of the tax paid. The tax will need to be paid in full by 31 March 2021.

The SRO will contact all eligible land owners and provide further information, including about how to request the return of your payment. You do not need to do anything at this stage.

Does this measure apply to residential properties?

The measure applies to a land owner that owns at least one non-residential property and total taxable landholdings below $1 million. Eligible land owners can defer their entire assessment, which may include residential land.

No extension of time for objections

Despite the announcement of the above measures, it is important to note that no extensions of time have been announced in relation to objecting to your land tax. It remains the position that if you do not agree to the valuation placed on your property, you must still lodge an objection within 60 days of receiving your land tax assessment notice.

You must lodge your objection with the correct rating authority. If you disagree with the value of your property as listed on your council rate notice, you must object to your local council. Objections to the valuation given on your land tax assessment notice are to be lodged with the SRO.

Authors: Chris Brodrick & Kristin Watkins

Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.

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