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"That's a relief" is a correct and usable phrase in written English
You can use it when you are thankful that something turned out to be better than expected, or when you are glad to be done with something. Example: "I was worried I wouldn't finish in time, but I was able to submit my assignment ahead of the deadline. That's a relief!"
Exact(58)
Homer: "Well that's a relief".
He comments cheerfully that "England is not a hysterical country" (that's a relief) and, writing in 2000, that the British taxpayer has "long subsidised Broadway".
But in a category marked out by exuberant classmates which look more like origami disasters than cars (Nissan Juke anyone?), that's a relief.
That's a relief for Madden, the game's namesake.
That's a relief.
"That's a relief," I said.
"That's a relief," he said.
"That's a relief," Habara said.
"That's a relief, " she said.
That's a relief — or is it?
That's a relief to Colin Powell coalitionaries.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com