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Where land is used and occupied primarily as a boarding-house, exemption from land tax or a reduction in the land value of the land is available if guidelines approved by the Treasurer are met.
The purpose of this ruling is to outline the approved guidelines applying to the 2007 tax year, to explain the conditions that entitle the owner to claim exemption or a reduction in the land value and to provide a statutory declaration to be completed by owners who claim the concession.
Guidelines approved by the Treasurer
The approved guidelines for the 2007 tax year are as follows:
Land that is used as the site of a boarding-house will be entitled to exemption from land tax for the 2007 tax year where, during the year ended 31 December 2006, in respect of at least 80% of the accommodation available to boarding-house residents:
occupation was by long term residents (a long term resident is considered to be a person who resided at a boarding-house for 3 consecutive months or for any periods totalling 3 months); and
where full board and lodging was provided, the maximum tariff charged was no more than:
$269 per week for single accommodation or
$450 per week for family or shared accommodation
or where less than full board and lodging was provided, was no more than:
$180 per week for single accommodation or
$300 per week for family or shared accommodation
Where the requirements of paragraph 3(i)(a) above could not be met, land used and occupied primarily for a boarding-house may still qualify for exemption provided:
at least 80% of the accommodation that was actually occupied was occupied by long term residents; and
at least 80% of the accommodation available to boarding-house residents was either occupied or was available for occupation at tariffs within the limits shown in paragraph 3(i).
Where at least 80% of the accommodation available to boarding-house residents was not occupied by long term residents, owners seeking exemption must provide an explanation of the reasons that this requirement was not met. Such circumstances will be considered on a case-by-case basis.
The owner must provide a statutory declaration that, in respect of at least 80% of the accommodation available to boarding-house residents, the tariff for full board and lodging during the whole of 2007, will not exceed1:
$277 per week for single accommodation or
$463 per week for family or shared accommodation
or where less than full board and lodging is provided, the tariff will not exceed:
$185 per week for single accommodation or
$309 per week for family or shared accommodation.
For the purposes of these guidelines, "boarding-house" is considered to mean premises which:
are used in the course of conducting a business of letting rooms to boarders or lodgers; and
are used and occupied by at least three (3) long term residents who:
are not members of the family of the owner or manager; or
are not members of the family of a shareholder of a company if an exempt proprietary company is the owner; and
are not premises which are licensed under the Liquor Act 1982; and
are not used and occupied by persons who are subject to a Residential Tenancy Agreement under the Residential Tenancies Act 1987.
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 shareholder means a person who would be entitled in terms of the Wills Probate and Administration Act 1898 to an inheritance should the owner, manager or shareholder die intestate.
Ruling
If only part of the land or only part of the premises were used for a boarding-house, a pro rata reduction in the land value of the land will be calculated by the Chief Commissioner if the Chief Commissioner is satisfied that a reduction claimed by an owner is fair and reasonable. Otherwise, the calculation will be made on a floor area basis.
Owners must apply for exemption by completing part A and either part B or C of the attached standard statutory declaration. The application should be lodged as soon as possible but within 30 days of the serving of an assessment which contains the land, by posting to the Chief Commissioner at the:
Office of State Revenue Client Services Division GPO Box 4042 Sydney NSW 2001
or alternatively, the application may be lodged at any branch of the Office Of State Revenue from where additional copies of all forms are available.
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 statutory declaration must be retained and produced for inspection, if requested.
Footnotes
^ The tariff rates indicated above do not include GST. Any GST collected on the rent should be accounted separately.