(Section 9C Land Tax Management Act, 1956)
|Ruling number||LT 042|
|Date issued||2 December 1992|
|Issued by||B Buchanan |
Chief Commissioner of Land Tax
|Effective from||1 January 1992|
|Effective to||31 December 2003|
|Status||Refer to Sch IA Clause 6 LTMA|
Replaced by LT 082
Effective from the 1992 tax year, exemption or partial exemption from land tax is available for the 2 tax years immediately following the purchase of land, whether improved or unimproved, which the Chief Commissioner of Land Tax is satisfied was purchased with the sole intention of becoming the principal place of residence of the owner.
Exemption or partial exemption is not available to a company or a person owning land jointly with a company unless the company is acting in its representative capacity as a "Trustee company" (as defined).
This Ruling outlines how to apply for exemption or partial exemption and explains the conditions that must be met.
Exemption or partial exemption is available for the tax year only where, at 31 December:-
the land was zoned Residential or if it had no zoning, the Chief Commissioner is satisfied that it is to be used solely for residential purposes;
the local council will allow the construction of a dwelling or dwellings on the land;
the sole use of the land following purchase was in connection with the intended use and occupation of the land as the principal place of residence of the owner;
the land would qualify for the exemption as the owner's principal place of residence if the intended use was the actual use; and
the owner did not already own land or a strata lot(s) in NSW which was used and occupied as that owner's principal place of residence.
Exemption or partial exemption may be available to land even if an owner was unable to actually use and occupy the land as the principal place of residence within 2 tax years of having purchased it. It will depend on the Chief Commissioner being satisfied that any delay in commencing or completing the building or re-building of a residence was due to reasons beyond the control of the owner.
Where the owner was not resident in NSW at the date on which the land was purchased, evidence of the intention to use and occupy the land as that person's principal place of residence is required.
A representative of a deceased estate can apply for the exemption even though the deceased person died before taking up residence. In these cases, the intended use and occupation of the land would be satisfied provided the taxing date of 31 December was not more than 12 months after the date of death or the deceased's interest in the land had not been vested in a beneficiary at the taxing date.
A standard application form for use by owners who wish to apply for the exemption is attached to this Ruling. The application, which is in the form of a statutory declaration, should be posted to the Chief Commissioner at the following address:
Office of State Revenue
Revenue Advisory Services
Post Bag 5215
Parramatta NSW 2124
but may also be lodged at any branch of the Office of State Revenue from where additional copies of the form can be obtained.
The Chief Commissioner should be advised of any change in the circumstances outlined in the claim as soon as possible after the change.