The state government is being urged to save the commercial sector by allowing landlords a 12-month hiatus from land taxes.
According to the Real Estate Institute of NSW (REINSW), commercial landlords who are not “monstrous and faceless corporations but mum and dad investors” rely on rental income, which is currently not being produced in hard economic times.
“The single biggest impost of income-producing property is land tax. Paying land tax, even in good times is difficult; in the current crisis, for many it’s impossible. Let there be no doubt, the landlord must pay land tax whether it has a tenant paying rent or not,” said Tim McKibbin, REINSW CEO.
The property group highlighted that even during times when landlords are struggling, they understand it’s a hard time for tenants and are reducing rates. This leaves landlords to pay additional costs out of their own pockets.
“Landlords are wanting their tenants to get through this difficulty and emerge with the viable business they had and paying the agreed rent,” Mr McKibbin said.
“The Prime Minister has made it clear on numerous occasions that every stakeholder would be expected to carry some of the burden; clearly both the tenant and landlord are doing more than their fair share.
“In all the circumstances, it is appropriate that the NSW state government step forward and waive land tax for the next 12 months. To demand industry to do its bit while refusing to shoulder any of the load is unconscionable,” Mr McKibbin concluded.