The Victorian Government yesterday passed the State Taxation Acts Amendment (Relief Measures) Bill 2020 (Tax Bill). The Tax Bill amends various state taxation laws to support those in bushfire-affected areas. It also grants the Commissioner of State Revenue (Commissioner) unprecedented powers to give effect to emergency tax relief measures, at the direction of the Treasurer, in response to the COVID-19 pandemic.

In summary, the Tax Bill:

• Provides a 50% stamp duty concession on transfers of commercial and industrial land in certain areas affected by a state of disaster, where the relevant contract or agreement for the transfer was entered into on or after 27 January 2020
• Extends the period for the operation of the $20,000 first home owner grant for purchases of new homes in regional Victoria from 1 July 2020 to 1 July 2021
• Reduces the payroll tax rate for regional employers in certain areas affected by a state of disaster for the 1 July 2019–30 June 2020 tax year, and
• Gives the Commissioner statutory authority to give effect to tax relief measures in response to an emergency at the direction of the Treasurer (including the ability to defer, waive or refund a tax liability under a taxation law in full or in part).

Although the Tax Bill has not addressed the land tax concessions and relief to landlords announced by the Victorian Government last week, we expect that the authority granted to the Commissioner in point (d) above is intended to give the Commissioner the requisite flexibility to effect (and vary) those measures By way of summary, those concessions were:

• Commercial and residential landlords to be eligible for a 25% discount on their land tax if they provide tenants impacted by the pandemic with rent relief
• Any remaining land tax can be deferred until March 2021
• Any land tax already paid can be refunded
• For commercial landlords to be eligible, the property must be rented to a tenant with a turnover of under $50 million who is eligible to participate in the JobKeeper program, and
• Relief may also be available to landlords who cannot secure a tenant as a result of COVID-19.

This approach to enacting the Victorian Government’s land tax relief package gives the Commissioner significant flexibility to implement the changes at the direction of the Treasurer, avoiding the time consuming and complex Parliamentary process that might otherwise apply. However, for the time being, it also presents some uncertainty as to how the Treasurer and Commissioner will implement the changes.

The above content is commentary rather than legal advice and was prepared on the basis of applicable legislation, government programs and initiatives that were in place as of the date of publication. Given the ongoing evolution of both the COVID-19 pandemic and frequent consequential changes to the various laws and programs within all Australian states and territories, readers should seek legal advice on the current situation as applicable to their specific circumstances before taking any action in relation to the above.