COVID-19 landlord assistance - land tax, income tax, bank repayments

Discussion in 'Property Management' started by AnneC, 28th Mar, 2020.

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  1. AnneC

    AnneC Well-Known Member

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    Does anyone know whether the government has made any announcements for a deferral and reduction in land tax payments and income tax?

    Also , the banks are offering deferred payments for 6 months but accruing interest? Hopefully, there can be a reprieve with interest payments for that period?

    Any thoughts?
     
  2. thatbum

    thatbum Well-Known Member

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    I doubt any of those things will be the way they help landlords. But they are looking into it and possibly announcing something today or tomorrow apparently.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    I have heard nothing along those lines and interest will be capitalised into the loan.
     
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  4. Shogun

    Shogun Well-Known Member

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    Why should banks give you a reprieve on interest? Profits will go down and then shareholder recieves lower dividend so they ultimately pay
     
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  5. abc_123

    abc_123 Well-Known Member

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    Whether the state governments waive land tax rates etc or not (which I highly doubt they will). If they force me to provide free rent either directly or by removing any ability to actually enforce payment then I am not paying their charges.

    If I am unable to collect rent for my property because there is no one willing or able to pay it, then I don't expect any concessions as that is the risk you take. But don't force me to provide my asset for free and then expect me to keep on paying!

    If many landlords got together and refused to pay government charges on mass, then they would surely have to negotiate.
     
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  6. Omnidragon

    Omnidragon Well-Known Member

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    They’ll just bankrupt you and foreclose you. It’s cultural revolution basically. Read up on it.
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    unpaid land tax is a charge on the land. You won't escape it unless the laws change.
     
  8. abc_123

    abc_123 Well-Known Member

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    How will they sell the property to recover the money if it has a non paying tenant in it that can't be removed.

    They could sell it for peanuts. It won't be enough to cover the mortgage. Perhaps the government has priority over the bank and will still get their money but the bank will not be happy.
     
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  9. Omnidragon

    Omnidragon Well-Known Member

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    Oh they don’t need to get full price. The equity getting wiped out is yours. Sell at a 20% discount the bank will still get its money at 80% LVR.
     
  10. willair

    willair Well-Known Member Premium Member

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    At least within 24 hours the cheques will be in the accounts for CBA ,may be the last that are over the 2 dollar marked fully franked for a while.
    It never matters which way it goes with any unit holders in Bank always pick up the tab in one way or another

    upload_2020-3-28_12-37-36.jpeg
     
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  11. abc_123

    abc_123 Well-Known Member

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    Who is going to pay anywhere near 80% of the value of the property for the privilege of forking out large amounts of money indefinitely to house someone else for free? Not to mention the risk of having a tenant in there who has nothing to lose and can treat the property like garbage.

    It may actually be in the landlords interests to let them take it and telling them good luck coming after me for the outstanding loan after they sell it, rather than being forced to pour money into it indefinitely.
     
  12. AnneC

    AnneC Well-Known Member

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    If Banks are able to offer deferral, then I dont see why the Government cannot do the same.

    I suppose that with reducing property values, the land tax will come down.

    With reduced income, income tax will also be less.
     
  13. abc_123

    abc_123 Well-Known Member

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    They will just adjust the rates and thresholds so they collect the same overall.

    It will only help if your land value goes down if you can argue the value of your property is much less than other similar properties.

    Perhaps a landlord could argue that because a tenant is in place that they are required to provide free housing to, their property is worth much less than the sale price of a vacant or owner occupied property.
     
  14. Omnidragon

    Omnidragon Well-Known Member

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    Depends. I may, but depends.
    Either way the Govt has monumentally ****ed landlords up.
     
    Last edited by a moderator: 28th Mar, 2020
  15. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No it screws up your credit rating.

    it’s only for 6 months worst case scenario. Relax.
     
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  16. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Nah! not going to happen.
     
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  17. thatbum

    thatbum Well-Known Member

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    Have they? How? I didn't see it that way.
     
  18. Buynow

    Buynow Well-Known Member

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    The government won’t be compensating me for my equity market losses. WouldN’t expect them to compensate for investment property losses either. It’s just reality.
     
  19. AnneC

    AnneC Well-Known Member

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    So, why should landlords be expected to subsidize tenants and provide low cost or free housing, if the government does not compensate the landlord in some way
     
  20. abc_123

    abc_123 Well-Known Member

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    So you are happy to be forced to provide the use of your asset for free?

    Are you happy to be forced to work for free? Have someone move into your own home for free?