Land Tax relief analysis shows WA streets behind
Analysis of Land Tax relief available to commercial landlords due to COVID-19 impacts has shown WA is well behind the rest of the nation. Using a six month pandemic period and a $50 million building as the base, WA landlords stand to lose 100 per cent of rent, compared with rental losses between 5 to 8 per cent across New South Wales, Victoria and Queensland.
Comparing states, the available land tax rebates look like this:
New South Wales: The land tax rebate received is $138,705, which must be passed on in full to the tenant, representing a total rent loss of 5 per cent
Victoria: The land tax rebate received is $48,904, which must be passed on in full to the tenant, representing a total rent loss of 5 per cent
Queensland: The land tax rebate received is $67,245, which must be passed on to the tenant as a minimum, representing a total rent loss of 8 per cent
Western Australia: The land tax rebate received is $63,028 and is only payable if the landlord waives 100% of the rent and freezes outgoings for a minimum of three months
Looking solely at the commercial office space as an example, Perth already has the highest vacancy rates in Australia. Limited land tax relief, combined with no indication on moves to refund or suspend the Perth Parking Levy, shifts too much of the burden onto commercial landlords. With this analysis at hand, we have called on Treasurer Ben Wyatt to adjust the land tax rebate so that it is more accessible and more effective.
These insights received a full page analysis in The West Australian on Saturday 16 April. You can read Ben Harvey’s article below.