|Ruling number||LT 107|
|Date issued||3 December 2019|
Chief Commissioner of State Revenue
|Effective from||1 January 2020|
|Effective to||31 December 2020|
|Status||Relates to the 2020 and subsequent land tax years|
4. The guidelines under which land used to provide low cost accommodation is exempt from land tax for the 2020 land tax years are as follows:
(i) Owners of land who provide low cost accommodation (not being licensed premises or a boarding-house) are entitled to an exemption from land tax or a reduction in the taxable value of the land for 2020 if the premises are used or partly used to provide low cost accommodation and the land is situated within a 5 kilometre radius of 1 Martin Place, Sydney (the former Sydney GPO Building) and:
(a) each tenancy is subject to a Residential Tenancy Agreement under the Residential Tenancies Act 2010; and
(b) the tenant used and occupied the residential premises or part of the premises for residential purposes and for no other purpose for the 6 months ending on 31 December 2019; and
(c) the maximum weekly tariff1 paid under a Residential Tenancy Agreement during this 6 month period was no more than the tariff limit specified in paragraph 4; and
(d) the owner gives an undertaking to pass on a benefit to the tenant(s), broadly equivalent to the value of the land tax exemption or reduction in taxable land value to the owner. The benefit may be passed on in one or more of the following forms:
(ii) An exemption or a reduction in the taxable land value is not applicable where any of the persons using and occupying the land was a member of the family of the owner; or, if the land is owned by a company, by a director or shareholder of that company, or by a member of the family of a director or a shareholder of that company.
(iii) A member of the family of the owner or a member of the family of a director or a shareholder means a person who could possibly be entitled under the Succession Act 2006 to an inheritance should the owner, director or shareholder die intestate.
(iv) The concession still applies if there were circumstances beyond the owner’s control which prevented the premises being used and occupied by a tenant for any part of the prior 6 months.
(i) $261 for one-bedroom accommodation; and
(ii) $347 for two-bedroom accommodation; and
(iii) $432 for three or more-bedroom accommodation
1. Maximum tariff limits do not include GST