Revenue Ruling No. LT 031

Exemption for Retirement Villages and Nursing Homes

Ruling history

Ruling no. Issued date Dates of effect Status
From To
LT 031 26 March 1991 1 January 1991 - Current
Replaces LT 014


  1. The Land Tax Management Act 1956 was amended in 1983 to incorporate new provisions dealing with grouping of related companies for the purpose of assessing land tax payable by such companies.

  2. A retirement village must meet the definition contained in the section 10R of the Act, which is based on that contained in the Retirement Villages Act 1989 and the Retirement Villages Code of Practice, 1989.

  3. Where land is only partly used for a retirement village and/or a nursing home, a partial exemption is available. The purpose of this Revenue Ruling is to explain how owners should calculate their liability in cases where a partial exemption is applicable.


  1. Section 10R(3) provides that if the Chief Commissioner is satisfied that only part of the land is used and occupied as a retirement village and/or a nursing home, the adjusted value of the land will be reduced by the proportion of the total area of the land which is so used. Owners are responsible for determining the proportion of the land so used in the first instance. Owners should indicate briefly in their return or an accompanying letter, the basis on which the calculation was made.

  2. It should be noted that any part of the land which is used for purposes which are ancillary to use as a retirement village and/or nursing home is also exempt. Such uses include leisure areas for the use of residents such as a swimming pool, a tennis court or a park, or a kiosk or shop(s) whose principal function is to serve residents.

  3. Where land is only partly developed as a retirement village and/or nursing home, partial exemption will apply. Owners may calculate the partial exemption based on the area actually in use. However, where planning approval has been obtained for the development of the unused portion, a calculation based on the number of units of accommodation in the partial development compared with the number of units once the land is fully utilised will be accepted.

  4. If owners are unsure of the proportion of land for which exemption may be claimed, a submission should be made to the Office of State Revenue, setting out all relevant details.

B. Buchanan
for Chief Commissioner of Land Tax
26 March 1991

Last updated: 2 July 2018