Unutilised value allowances and postponement of tax

(Sections 9A and 621-62N - Land Tax Management Act 1956)

Preamble

1. Where land that is used solely as the site of a single dwelling-house is situated in a commercial, industrial or business zone, the owner is entitled to claim a postponement of part of the land tax payable. The postponement is based on an allowance called the unutilised value allowance. This allowance is a calculation of the difference between the land value and the value that would be determined if the land was situated in a residential zone.
2. Up to the 1992 tax year, allowances were calculated using land values determined for all rating and taxing authorities. From the 1993 tax year, unutilised value allowances are calculated using land values determined exclusively for land tax purposes but the method of calculating the allowance is unchanged.
3. The purpose of this Ruling is to introduce an application form to be used by owners who did not receive the concession for the 1992 tax year (and who wish to claim the concession for the 1993 or later tax year) and to explain the conditions that must be met.

Ruling

4. Owners must apply for a postponement of part of the land tax payable and for the determination of an unutilised value allowance by completing Form 62(l).
5. Land that is used solely as the site of a single dwelling-house which is situated in a commercial, industrial or business zone or is land affected by a zoning which allows the building of residential flats or subdivision is entitled to have an unutilised value allowance determined.
6. The unutilised value allowance will be used to assess the amount of land tax to be postponed having regard to Section 9A of the Land Tax Management Act 1956.
7. Application Form 62(l) is attached to this Ruling and is in the form of a statutory declaration. The completed application 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 also be obtained.