Revenue Ruling No. LT 100

Exemption – Land Used and Occupied Primarily for a Boarding House – 2017 Tax Year

Section 10Q Land Tax Management Act 1956

Ruling history

Ruling no. Issued date Dates of effect Status
From To
LT 091 21 December 2012 1 January 2013 31 December 2013 Relates to the 2013 land tax year only
LT 093 19 December 2013 1 January 2014 31 December 2014 Relates to the 2014 land tax year only
LT 095 22 December 2014 1 January 2015 31 December 2015 Relates to the 2015 land tax year only
LT 098 17 December 2015 1 January 2016 31 December 2016 Relates to the 2016 land tax year only
LT 100 24 November 2016 1 January 2017 31 December 2017 Relates to the 2017 land tax year only
These rulings are issued annually

Preamble

  1. Where land is used and occupied primarily as a boarding house, an exemption from land tax or a reduction in the land value of the land is available under section 10Q of the Land Tax Management Act 1956 if guidelines approved by the Treasurer are met.

  2. The purpose of this ruling is to outline the approved guidelines applying to the 2017 tax year, and to explain the conditions that entitle the owner to claim an exemption or a reduction in the land value.A declaration must be completed by owners who wish to claim the concession. The form is published on OSR’s website at www.osr.nsw.gov.au.

Guidelines approved by the Treasurer

  1. The guidelines under which a NSW boarding house is exempt from land tax for the 2017 tax year are as follows:

    1. Land anywhere in NSW that is used by the owner as the site of a boarding house will be entitled to an exemption from land tax for the 2017 tax year if, during the whole of the year ended 31 December 2016, in respect of at least 80% of the accommodation actually occupied:

      1. occupation was by persons who were long term residents (as defined); and

      2. where full board and lodging was provided, the maximum tariff charged per room was no more than*:

        $365 per week for single accommodation; or
        $605 per week for family or shared accommodation

        or where less than full board and lodging was provided, the maximum tariff charged per room was no more than*:

        $244 per week for single accommodation; or
        $405 per week for family or shared accommodation.

    2. Where the requirements of paragraph 3(i) above were not met because the land was used as a boarding house for only part of the 2016 calendar year, the land will qualify for exemption if at least 80% of the accommodation that was actually occupied during the period of operation as a boarding house in 2016 was occupied by long term residents within the limits shown in paragraph 3(i).

    3. The owner must provide a statutory declaration stating that, in respect of at least 80% of the accommodation actually occupied by boarding house residents, the tariff for each room for full board and lodging during the whole of 2017, will not exceed*:

      $372 per week for single accommodation or
      $616 per week for family or shared accommodation

      or where less than full board and lodging is provided, the tariff for each room  during the whole of 2017 will not exceed*:

      $249 per week for single accommodation or
      $413 per week for family or shared accommodation.

    {*Tariff rates do not include GST.}

  2. For the purposes of these guidelines:

    "Boarding house" means premises which:

    1. are registered under the Boarding Houses Act 2012 as either a general boarding house or an assisted boarding house; and

    2. are used and occupied by long term residents who:

      1. are not members of the family of the owner or manager; or

      2. are not directors or shareholders or members of the family of a director or shareholder of a company if the company is the owner; and

    3. are not premises which are licensed under the Liquor Act 2007; and

    4. are not used and occupied by persons who are subject to a Residential Tenancy Agreement under the Residential Tenancies Act 2010; and

    5. are not premises used as a backpacker’s hostel, serviced apartment or tourist accommodation.

    Owners of boarding houses can find more information about the Boarding Houses Act 2012 and how to register at:

    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Boarding_houses.page

    Family or shared accommodation” means a room or suite of rooms jointly used and occupied by a family or a group of persons under one agreement between the owner or operator of the boarding house and the family or group.

    Family” includes a couple, whether or not married to each other.

    Long term resident” is a boarder or lodger who, during 2016, uses and occupies a room or a bed for a continuous period of at least 3 months.

    Room” means an area of a boarding house surrounded by 4 walls, with or without windows, containing 1 or more beds.

    Single accommodation” means a bed or a room used and occupied solely by one person under an agreement between the owner or operator of the boarding house and the person.

    Suite of rooms” means 2 or more rooms let to a family or a group of persons under a single agreement between the owner or operator of the boarding house and the family or group.

    Tariff” means the cost of a room or bed as well as electricity, water and other charges.

  3. For the purposes of paragraph 4(ii) above, a member of the family of the owner or manager or a member of the family of a director or shareholder means a person who may be entitled under the Succession Act 2006 to an inheritance should the owner, manager, director or shareholder die intestate.

Ruling

  1. To qualify as full board and lodging the operator must provide at least two main meals each day.

  2. If only part of the land or only part of the premises is used for a boarding-house, a pro rata reduction in the land value of the land will be calculated.A partial exemption may apply if part of a building has a separate use to that of a boarding house, eg a shop or a café.If the premises is a single building, the reduction in land value is to be made on a floor area basis.Otherwise the reduction is to be made using the ratio of the land area used and occupied as a boarding house to the total area of the land.
  3. Owners must apply for exemption by completing part A and either part B or C of the standard declaration.The application should be lodged by 31 March 2017 or within 30 days after receiving a notice of assessment which includes the land, by posting to the Chief Commissioner at the following address:

    Office Of State Revenue
    GPO Box 4042
    Sydney NSW 2001

    or the application may be emailed to landtax.lodgements@revenue.nsw.gov.au.

  4. Records of owners who claim concessions are regularly audited by the Office of State Revenue. Documentary evidence supporting the information in parts A, B or C of the declaration must be retained and produced for inspection, if requested.

Stephen R Brady
Chief Commissioner of State Revenue
24 November 2016

Last updated: 29 November 2017