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Rent Concessions and Your Tax Return 20/21

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

For tenants & landlords

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.

Please ensure you discuss any rent concessions with your STS Accountant before filing your most recent tax return.

This information was sourced from ato.gov.au.