Land tax relief package to ease squeeze on SA landlords
The State Government will tomorrow announce a $50 million new package to help landlords in a move the treasurer says will prove crucial to SA’s economic recovery.
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Landlords will get to share in about $50 million of emergency land-tax relief over the next few months as part of State Government package to be announced today.
Treasurer Rob Lucas told The Advertiser small and medium-size tenants – including gyms, restaurants, cafes, beauty salons and hairdressers – would be some of the biggest beneficiaries of rent relief that would flow from the land-tax package.
About $10 million will be dedicated to residential landlords but details around how that will be distributed are still being finalised.
Today’s announcement will coincide with a pledge from the Government to provide rent relief to businesses significantly affected by COVID-19 that operate in state-owned buildings.
Mr Lucas, pictured, said the $50 million package, which complemented previously announced land-tax relief measures, would play a critical role in the state’s economic recovery.
“The Federal Government’s JobKeeper program helps employers pay if not all, at least some of their staff a certain amount of money,” Mr Lucas said. “But for many of the businesses that have closed down completely, the big remaining cost for them is their leasing arrangements with their landlords.
“Essentially, where we are left at the moment is that the tenant, in many cases, can’t pay all of their lease payments or some of their lease payments because it’s been such a big impact on the business.
“The banks have sort of come to the party, but not really because … ultimately the landlord will still have to repay the financial institutions all of the repayments.”
Mr Lucas said he would like the local government sector to “put more skin in the game” by offering rent relief.
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Local Government Association president Sam Telfer said councils were reviewing their hardship policies, waiving fees for local clubs, and looking at how they helped businesses and households in need with rate relief.
“Many councils have already announced they will defer rates for impacted ratepayers to ensure that they are not worried about these bills during this time of economic hibernation,” Mr Telfer said.
Opposition treasury spokesman Stephen Mullighan has been calling for land-tax relief for businesses.
“If you’re a business which has been forced to close, or a renter who has lost their job, paying the regular rental bill is suddenly very difficult,” Mr Mullighan said on Tuesday.
“This is one way the Government can support property owners by reducing bills, which are coming at the worst possible time for many people.”