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Give or receive a COVID-19 rent concession?

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Do you rent your business premises? Or are you a landlord who rents out commercial property?

If your landlord gave you a rent concession, or if you're a landlord who has given a rent concession to a tenant 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 (such as a waiver or deferral) you’ve received or given

  • if an existing agreement has changed, or a new or additional agreement has been created.

For landlords, the changes will also depend on whether you use cash or accruals accounting.

For example, if you are a tenant that had already paid your rent for August 2020 but your landlord waived and refunded the amount to you, you’ll still be entitled to claim a deduction for the rent in your 2020–21 tax return. However, you should also include the refunded amount in your assessable income.

Remember, we can help you with your tax so call us on (02) 8999 1030 . 

Source: ATO July 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Give-or-receive-a-COVID-19-rent-concession-/
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