Section 10Q Land Tax Management Act 1956
|Ruling number||LT 098|
|Date issued||17 December 2015|
|Issued by||Stephen R Brady|
Chief Commissioner of Land Tax
|Effective from||1 January 2016|
|Effective to||31 December 2016|
|Status|| Relates to the 2016 land tax year|
These rulings are issued annually
|Ruling number||LT 095|
|Date issued||22 December 2014|
|Effective from||1 January 2015|
|Effective to||31 December 2015|
|Status||Relates to the 2015 land tax year only.|
|Ruling number||LT 093|
|Date issued||19 December 2013|
|Effective from||1 January 2014|
|Effective to||31 December 2014|
|Status||Relates to the 2014 land tax year only.|
|Ruling number||LT 091|
|Date issued||21 December 2012|
|Effective from||1 January 2013|
|Effective to||31 December 2013|
|Status||Relates to the 2013 land tax year only.|
|Ruling number||LT 089|
|Date issued||30 March 2012|
|Effective from||1 January 2012|
|Effective to||31 December 2012|
|Status||Relates to the 2012 land tax year only.|
|Ruling number||LT 087|
|Date issued||16 February 2011|
|Effective from||1 January 2011|
|Effective to||31 December 2011|
|Status||Relates to the 2011 land tax year only.|
Where land is used primarily as a boarding house, an 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 2016 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
The guidelines under which a NSW boarding house is exempt from land tax for the 2016 tax year are as follows:
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 2016 tax year if, during the whole of the year ended 31 December 2015, in respect of at least 80% of the accommodation actually occupied:
occupation was by persons who were long term residents (as defined); and
where full board and lodging was provided, the maximum tariff charged per room was no more than*:
$356 per week for single accommodation; or
$590 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*:
$238 per week for single accommodation; or
$395 per week for family or shared accommodation.
Where the requirements of paragraph 3(i)(a) above were not met because the land was used as a boarding house for only part of the 2015 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 2015 was occupied by long term residents within the limits shown in paragraph 3(i).
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 2016, will not exceed*:
$365 per week for single accommodation or
$605 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 2016 will not exceed*:
$244 per week for single accommodation or
$405 per week for family or shared accommodation.
(*Tariff rates do not include GST)
For the purposes of these guidelines, "Boarding house" means premises which:
are registered under the Boarding Houses Act 2012 as either a general boarding house or an assisted boarding house; and
are used and occupied by long term residents who:
are not members of the family of the owner or manager; or
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
are not premises which are licensed under the Liquor Act 2007; and
are not used and occupied by persons who are subject to a Residential Tenancy Agreement under the Residential Tenancies Act 2010; and
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 the following address:
“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 2015, used and occupied 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.
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.
To qualify as full board and lodging the operator must provide at least two main meals each day.
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. If the premises are 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.
Owners must apply for exemption by completing part A and either part B or C of the standard declaration. The application should be lodged as soon as possible but within 30 days after receiving a notice of assessment which includes the land, by posting to the Chief Commissioner at the following address:
or, alternatively, the application may be lodged at any branch of the Office of State Revenue.
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.