Page 2405 - Week 07 - Thursday, 27 August 2020
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(1) Does an ACT land tax credit scheme for property investors aim to provide relief for landlords who reduce rent on their privately rented properties by at least 25 percent due to COVID-19, and may be eligible for a tax credit to cover 50 percent of the rental reduction, up to a limit of $1 300 per quarter; if so, is this scheme available for landlords who reduce rent for privately rented properties that are part of a serviced apartment complex.
(2) If the scheme is not available in relation to serviced apartment complexes, (a) where has the ACT Government specified this exclusion (ie Revenue Office website) and (b) what is the reason behind this exclusion.
(3) What is the precise scope in regards to eligibility of criteria, as well as considerations that expressly render an applicant ineligible for the (a) land tax credit (private landlords) and (b) commercial rates credit (commercial landlords).
(4) Have there been successful applicants for either scheme who are landlords to hotel/apartments who have discounted rented properties by at least 25 percent to tenants (excluding short-term hotel guests); if so, how many were (a) private landlords and (b) commercial landlords.
(5) Are unsuccessful applicants to these schemes advised as to why their application was rejected, including precisely what criteria was not met.
(6) What avenues do unsuccessful applicants have to appeal their outcome.
Mr Barr: The answer to the member’s question is as follows:
(1) The land tax credit scheme is available to residential landlords who reduce rent on their privately rented properties by at least 25 per cent due to COVID-19. Eligible landlords can receive a land tax credit to cover 50 per cent of the rental reduction, up to a limit of $1,300 per quarter. The original rental agreement must have been in place prior to 1 March 2020. The scheme is not available to landlords who operate their rental property by renting to a company in the business of providing short term rentals. In this situation, there is no one person as a tenant who is renting the property.
(2) The fact sheet for the land tax credit scheme, which is available on the ACT Revenue Office website, states the purpose of the scheme is “…to help landlords and private tenants reduce the risks of homelessness and financial hardship during the COVID-19 public health emergency.” This excludes rentals in a category where there is no tenant at risk of homelessness, and it is a business that would benefit from the rent reduction. The Revenue Office website has recently been updated to state serviced apartment owners who providing a short-term rental to a business are ineligible for the scheme.
(3)
a. The eligibility criteria for the land tax credit scheme are outlined in question (1). Applicants with circumstances outside of this scope cannot be approved.
b. The commercial rates credit, which is a separate scheme, is available to landlords who provide evidence that they have reduced the rent for their business tenants that have been significantly impacted by COVID-19, with different levels of support available depending on how much the business has been impacted. Assistance is also available for owner-operated properties. Applications are not approved unless satisfactory documentary evidence is provided with the application.
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