Dual occupancy: principal place of residence (superseded)
Ruling number | LT 005
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Date issued | 28 July 1987
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Issued by | AD Clyne Chief Commissioner of Land Tax |
Effective from | 31 December 1986
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Effective to | 15 August 2008
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Status | Replaced by LT 082 |
Preamble
The provisions for exemption from land tax of an owner's principal place of residence have been reviewed following the announcement by the Hon. Bob Carr, Minister for Planning and Environment, of relaxation of the N.S.W. Government's policy on Dual Occupancy in the Sydney region.
For the 1987 tax year (i.e. at taxing date 31 December, 1986) the Minister for Finance, Mr Bob Debus, M.P., has approved a variation of statute which will enable exemption of an owner's principal place of residence and a "granny flat" situated on the same property.
The extended benefit will apply to all land in N.S.W. which qualifies and is not limited to land in the Sydney region.
Ruling
Exemption under Section 10(l)(r)(ii) of the Land Tax Management Act 1956, will be allowed for a parcel of land, not exceeding 2100 square metres in area, with two dwellings provided one of those dwellings satisfies the existing requirements as the principal place of residence of an owner and the other dwelling is used for residential purposes only by a natural person.
Previously, exemption was precluded where more than one room was let. The new provisions will allow exemption in a wide range of circumstances, for example:
a house divided into two flats, one of which is the owner's residence;
a house used as the owner's residence and a detached flat;
a building consisting of two flats (such as a duplex), one of which is the owner's residence.
Those owners who previously received a reduction of tax under the Land Tax Act will now qualify for exemption under Section 10(l)(r)(ii) of the Land Tax Management Act if:
the area of the parcel does not exceed 2100 square metres;
there are not more than two flats on the land;
one flat qualifies as the principal place of residence of an owner.
A further benefit will be the allowance of full or partial exemption of land in excess of 2100 square metres as follows:
if not prevented from subdivision, an area of 2100 square metres is allowed;
if prevented from subdivision, an area not exceeding two hectares is allowed.
The effect of the variations to Section 10(l)(r)(ii) will flow through to Section 10(l)(u), Section 10(4) and Section 10(5) of the Land Tax Management Act where the area of a parcel of land exceeds 2100 square metres.
Existing requirements applicable to the use and occupation of land or a flat as the principal place of residence of an owner are unchanged.
Pending amendment to the legislation, the effect of the variation of statute will be to read Section 10(1)(r)(ii) and Section 10(1D)b(ii) and (iii) of the Land Tax Management Act as follows (the changes are underlined):
Exist legislation | Variations |
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Section 10(1)(r)(ii) | Section 10(1)(r)(ii) |
a parcel of residential land not exceeding 2100 square metres in area that is used and occupied as his principal place of residence, and for no other purpose, by the owner of the land or where there are joint owners, as his principal place of residence, and for no other purpose, by any one or more of
them, unless there were on the land, within the period of six months that last preceded the commencement of that year, two or more occupied flats and unless the owner or each of the owners, as the case may be, who so used and occupied the land is such an owner by reason only of being a trustee;
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a parcel of residential land not exceeding 2100 square metres in area that is used and occupied as his principal place of residence, and for no other purpose, by the owner of the land or, where there are joint owners, as his principal place of residence, and for no other purpose, by any one or more
of them, unless there were on the land more than two flats and unless the owner or each of the owners, as the case may be, who so used and occupied the land is such an owner by reason only of being a trustee;
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Section 10(1D)(b) | Section 10(1D)(b) |
"not being a building -
...
- in which more than one room is occupied by lessees or licencees for residential purposes; or
- from any part of which income is derived otherwise than as the consideration for a lease or licence of one room for residential purposes."
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"not being a building -
...
- in which more than one flat is occupied by lessees or licencees for residential purposes; or
- from any part of which income is derived otherwise than as the consideration for a lease or licence of one flat for residential purposes."
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The legislation defines a "flat" as "a room or suite of rooms constructed, designed or adapted for occupation or use as a separate dwelling, whether the room or suite is a detached building or forms part of a building".