Revenue Ruling No. LT 071v2

Exemption - Residential Parks Primarily Used and Occupied by Retired Persons

Section 10Q Land Tax Management Act, 1956

Ruling no. Issued date Dates of effect Status
From To
LT 071 7 March 2003 7 March 2003 31 December 2015 Replaced by LT 071v2
LT 071v2 17 December 2015 1 January 2016 - Current

Preamble

  1. Where a residential park is primarily used and occupied by retired persons, an exemption from land tax or a reduction in the land value of the land is available, if guidelines approved by the Treasurer under section 10Q of the Land Tax Management Act 1956 (LTM Act) are met.

  2. The purpose of this ruling is to notify land owners of the approved guidelines and explain how owners may apply for the concession.

Guidelines Approved by the Treasurer

  1. The guidelines apply for the purposes of determining whether land which is or includes a “community or residential community” within the meaning of the Residential (Land Lease) Communities Act 2013 (“RLLC Act”), and referred to in this ruling as a community, is entitled to a land tax exemption or reduction in taxable value under s.10Q of the LTM Act.

  2. An exemption or reduction in taxable value does not apply unless the community is registered under section 14 of RLLC Act.

  3. This paragraph applies if a parcel of land is used for the purposes of a community and no part of the land is used for another purpose.  If more than 50% of the homes on the land are used and occupied by at least one qualifying home owner, the land is exempt low cost accommodation under s.10Q of the LTM Act.

  4. This paragraph applies if part of a parcel of land is used exclusively for the purposes of a community, and part of the parcel is used for other purposes.  If more than 50% of the homes on that part of the land used exclusively for the purposes of a community are used and occupied by at least one qualifying home owner, that part of the land so used is low cost accommodation for the purposes of s.10Q of the LTM Act.  Pursuant to ss 10Q(4) and 10R(3)-(3C) of the LTM Act, the taxable value of the parcel is reduced in accordance with the following formula:

    RTV = TV x A/B

    Where:

    RTV = reduced taxable value of the parcel.
    TV = taxable value of the parcel of land if no reduction applied.
    A = estimated area of land used exclusively for the purpose of a community.
    B = total area of the parcel of land.

  5. This paragraph applies if there is no clear boundary between parts of the land used for the purposes of a community and parts of the land used for other purposes.  If more than 50% of the homes on the land are used and occupied by at least one qualifying home owner, those parts of the land so used are low cost accommodation for the purposes of s.10Q of the LTM Act.  Pursuant to ss 10Q(4) and 10R(3)-(3C) of the LTM Act, the taxable value of the parcel of land is reduced in accordance with the following formula:

    RTV = TV x C/D

    Where:

    RTV = reduced taxable value
    TV = taxable value of the parcel of land.
    C = number of residential sites occupied by qualifying home owners.
    D = total number of residential sites capable of separate occupation in a cabin, mobile home, caravan, tent or other form of residence.

  6. The entitlement to an exemption or a reduction in taxable value of a parcel of land is to be determined having regard to the relevant facts and circumstances on the taxing date for each tax year (that is, midnight on the 31 December preceding the tax year).

Definitions applying to terms used in this ruling

  1. An unoccupied residential site or home is classified as being occupied by a qualifying home owner if the operator who manages, controls or otherwise operates the community will only permit the site to be occupied by home owners of which at least one is a qualifying person.

  2. A qualifying home owner is a person who is retired or who is at least 55 years old.

  3. The following terms used in this ruling have the meanings given by the RLLC Act:

    community or residential community means an area of land that comprises or includes sites on which homes are, or can be, placed, installed or erected for use as residences by individuals, being land that is occupied or made available for occupation by those individuals under an agreement or arrangement in the nature of a tenancy, and includes any common areas made available for use by those individuals under that agreement or arrangement

    Note: A community may be:

    1. a caravan park (that is, land, including a camping ground, on which caravans, or caravans and other moveable dwellings, have been, are or are to be placed, installed or erected), or

    2. a manufactured home estate as defined in the Local Government Act 1993 (that is, land on which manufactured homes have been, are or are to be placed), whether or not the caravan park or manufactured home estate is the subject of an approval under the Local Government Act 1993.

    home means:

    1. any caravan or other van or other portable device (whether on wheels or not) other than a tent, used for human habitation, or

    2. a manufactured home as defined in the Local Government Act 1993, or

    3. any conveyance, structure or thing of a class or description prescribed by the regulations for the purposes of this definition.

    home owner means:

    1. a person who owns a home on a residential site in a community that is the subject of a site agreement (whether or not the person resides at the site), or

    2. a person who obtains an interest in a site agreement as the personal representative, or a beneficiary of the estate, of a deceased individual who, immediately before the individual’s death, was a person mentioned in paragraph (a), or

    3. another successor in title of a person mentioned in paragraph (a), but does not include any person, or any person of a class, excluded from this definition by the regulations.

    operator of a community means a person who is:

    1. the person who manages, controls or otherwise operates the community, including by granting rights of occupancy under site agreements or tenancy agreements, whether or not the person is an owner of the community, or

    2. the personal representative, or a beneficiary of the estate, of a deceased individual who, immediately before the individual’s death, was a person mentioned in paragraph (a), or

    3. a mortgagee in possession of a community for which site agreements are in force, or

    4. another successor in title of a person mentioned in paragraph (a), other than a person, or a person of a class, excluded from this definition by the regulations.

    residential site means a site in a community for a home that is used, or is intended to be used, as a residence by an individual.

Ruling

  1. Owners who wish to apply for the concession must apply by completing the application form on the OSR website. The application should be lodged no later than 30 days after receiving a notice of assessment which includes the relevant land.

  2. The completed application may be posted to the Chief Commissioner at the following address:

    Office of State Revenue
    GPO Box 4042
    Sydney NSW 2001

    or, alternatively, the application may be lodged at any branch of the Office of State Revenue or emailed to landtax.lodgements@revenue.nsw.gov.au.

  3. Records of owners who claim concessions are regularly audited by the Office of State Revenue. Documentary evidence supporting the application, showing that the use and occupation of the land meets the approved guidelines must be retained and produced for inspection, if requested.

Stephen R Brady
Chief Commissioner of State Revenue

Last updated: 29 November 2017