COVID-19 Rent Concession

Are you a landlord who rents out commercial property? Or do you rent your place of business?

If you have given or received a rent concession because of COVID-19, you need to consider this in your tax returns.

There may be changes to the income you declare, deductions you can claim and your GST and capital gains tax (CGT) obligations.

The changes will depend on:

  • The type of rent concession you have received. Such as a waiver or deferral
  • If a new or additional agreement has been created
  • If an existing agreement has changed

If you are a landlord, the changes can also depend on whether you used cash or accruals accounting.

For instance, as a tenant you may have paid rent for August 2020, but your landlord waived and refunded the amount to you, you are still entailed to claim a deduction for the rent in your 2020-21 tax rerun. Nevertheless, you should also include the refunded amount in your assessable income.

As a registered tax and BAS agent we at Moore Lewis & Partners can help you with your tax enquiries by contact us on 07 4638 5300.

For further information visit the Australian Taxation Office –

www.ato.gov.au/General/Property/Property-used-in-running-a-business/Rent-or-lease-payment-changes-due-to-COVID-19

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