Act of grace payments

What is an ‘act of grace' payment?

In special circumstances, the NSW Government can make an act of grace payment in accordance with s5.7 of the Government Sector Finance Act 2018 if the minister considers it appropriate. 

As such, the payments set out on this page were made by The Hon. Victor Dominello, MP, on behalf of the Department of Customer Service, to people in exceptional circumstances such as bushfires and floods who are not eligible for any other types of funding.

The act of grace register

The Department of Customer Service issued the following act of grace payments up until 30 June 2021 in accordance with the Treasury Circular 22-01.

2019/20 NSW Bushfire Duty Relief Scheme

Total value of payments: $4,479,853

Total recipients: 217

Program duration: 3/3/2020-30/6/2021

About the program 

The NSW Bushfire Duty Relief Scheme was for eligible recipients whose homes were destroyed during the 2019/20 NSW bushfires.

Under the Scheme, eligible recipients opted to purchase a replacement property in a new location rather than rebuild their destroyed home, and obtain relief from transfer duty. Eligible recipients must have used the destroyed property as their principal place of residence and intended the replacement property to be used as their principal place of residence.

Eligible recipients for the Duty Relief Scheme either:
•    did not have to pay transfer duty on the eligible property, or 
•    paid a reduced amount of duty, or
•    received a full or partial refund of duty, if duty had already been paid.

The application period was from 3 March 2020 to 2 March 2022.  

Land Tax Bushfire Relief

Total value of payments: $368,158

Total recipients: 63

Program duration: 3/3/2020-30/6/2021

About the program

The Land Tax Bushfire Relief program provided tax relief to landowners with a 2020 Land Tax liability for a property that was substantially or wholly damaged by the 2019/20 NSW bushfires.

The relief was a reduction in the landowner's land tax liability in respect the bushfire damaged property. Notices of assessment for the 2020 tax year were held back from the annual batch assessment program and later issued showing the reduction in land tax liability.

2020 Land Tax COVID-19 Relief

Total value of payments: $138,720,181

Total recipients: 11,151

Program duration: 1/4/2020-30/6/2021

About the program

The Land Tax COVID-19 Relief program provided relief for both the 2020 and 2021 land tax years for eligible commercial and residential landowners who provided a rent reduction to a tenant experiencing financial distress due to COVID-19. 

For the 2020-2021 financial year, there were two separate phases to the relief, with differing criteria.

Phase One

1 January 2020 to 30 September 2020 and

1 October 2020 to 31 December 2020

In each period, relief of up to 25% of land tax liability was available, giving a total of up to 50% relief for the 2020 tax year.

Commercial leases - relief was available where tenants had an annual turnover of up to $50 million and experienced a reduction in turnover compared to a previous comparable period of 30% or more.

Residential leases - a reduction in household income of 25% or more was required.

Phase Two

1 January 2021 to 28 March 2021

Relief of up to 25% of the land tax liability was available to commercial landlords who provided a reduction in rent to commercial leases and impacted lessees as defined by the Retail and Other Commercial Leases (COVID-19) Regulation (No 3) 2020.

Eligibility criteria required tenants to have an annual turnover of up to $5 million and experienced a reduction in turnover for the quarter ending 30 December 2020 compared to the previous period of 30% or more. In the case of a non-profit body, a 15% or more reduction in turnover was required.