Section 10Q Land Tax Management Act 1956
|Ruling number||LT 102|
|Date issued||8 January 2018|
|Issued by||Stephen R Brady|
Chief Commissioner of State Revenue
|Effective from||1 January 2018|
|Effective to||31 December 2018|
|Status||Relates to the 2018 and subsequent land tax years|
|Ruling number||LT 100|
|Date issued||24 November 2016|
|Effective from||1 January 2017|
|Effective to||31 December 2017|
|Status||Relates to the 2017 land tax year only|
|Ruling number||LT 098|
|Date issued||17 December 2015|
|Effective from||1 January 2016|
|Effective to||31 December 2016|
|Status||Relates to the 2016 land tax year only|
|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|
Where land is used primarily as a boarding house, an exemption from land tax or a reduction in the taxable land value of the land is available if the land is primarily used to provide boarding house accommodation in accordance with the following Treasurer’s guidelines.
The purpose of this ruling is to outline the approved guidelines applying, and to explain the conditions that entitle the owner to claim an exemption or a reduction in the taxable land value. A declaration must be completed each year by owners who wish to claim the concession. The form is published on the Revenue NSW website.
The guidelines under which land used as a NSW boarding house is exempt from land tax for the 2018 and subsequent land tax years are as follows:
Land anywhere in NSW that is used as the site of a boarding-house is exempt from land tax for the whole of a specific land tax year (called the “relevant tax year”) if:
the land was used as a boarding house for the whole or part of the calendar year immediately prior to the relevant tax year (called the “preceding year”); and
in respect of at least 80% of the total accommodation that was actually occupied during the period of operation as a boarding house in the preceding year:
the occupants were long term residents (as defined); and
the maximum tariffs charged were no more than the tariff limits specified or calculated in accordance with paragraphs 3 and 4 for that year;
the owner agrees that, in respect of at least 80% of the accommodation that will be occupied in the relevant tax year:
the occupants will be long term residents; and
the maximum tariffs charged will be no more than the tariff limits calculated in accordance with paragraphs 4 and 5 for that year.
To qualify for exemption for the 2018 land tax year, the maximum tariffs that were charged for accommodation during 2017 must not have exceeded:
for full board and lodging:
for less than full board and lodging:
The maximum tariffs that may be charged during 2018 must not exceed:
for full board and lodging:
for less than full board and lodging:
For the purposes of these guidelines:
“Bed nights” has the meaning given in the definition of “Total accommodation actually occupied”.
"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 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.
“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, or a person on behalf of the family or group.
“Family” includes a couple, whether or not married to each other.
“Long term resident” is a boarder or lodger who used and occupied a bed or a room or a suite of rooms for a continuous period of at least 3 months.
“Preceding year” means the calendar year immediately prior to the relevant tax year.
“Room nights” has the meaning given in the definition of “Total accommodation actually occupied”.
“Relevant tax year” means the specific land tax year to which the guidelines are being applied to determine if the land qualifies for exemption or a reduction in taxable value.
“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 (or a person on behalf of that person).
“Suite of rooms” means 2 or more rooms let to a family or group of persons under a single agreement between the owner or operator of the boarding house and the family or group or a person on behalf of the family or group.
“Tariff” means the cost of a room or bed as well as electricity, water and other charges, excluding Commonwealth GST.
“Total accommodation actually occupied” means the total number of “bed nights” in respect of all beds separately let during the relevant calendar year, plus the aggregate of all “room nights” for rooms or suites of rooms separately let during the relevant calendar year, where:
“bed nights” for each bed separately let means the number of nights in the relevant calendar year for which that bed was separately let; and
“room nights” for each room or suite of rooms separately let for single or family accommodation is the number of nights during the relevant calendar year for which the room or suite of rooms was separately let for single or family accommodation.”
For the purposes of paragraph (ii) of the definition of “boarding house”, 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.
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 each year or within 30 days after receiving a notice of assessment which includes the land, by posting to the Chief Commissioner at the following address:
or the application may be emailed to land tax lodgements.