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Chapters

  1. Overview
  2. Change in beneficial ownership of dutiable property
  3. Change in beneficial ownership of dutiable property - Regulation
  4. Change in beneficial ownership - Grant of an Option
  5. Acknowledgement of trust
  6. Off the plan transactions
  7. Breakup of marriages and de facto relationships
  8. Transfer of certain business property between family members
  9. Surcharge purchaser duty Australian-based developer
  10. Tax avoidance schemes
  11. Other changes to the Taxation Administration Act 1996
  12. Land Tax
  13. First Home Owner Grant
  14. Other legislative changes

12. Land Tax

5B - Land Tax Act 1956

Surcharge Land Tax principal place of residence exemption

Prior to the legislation amendment to the Land Tax Act 1956 for a foreign person to be eligible for a principal place of residence exemption from surcharge land tax, the person was required to use and occupy the land as their residence for a continuous period of 200 days or more in the current land tax year. There was no requirement for a physical presence of 200 consecutive days.

Following the amendment, the land must still be the foreign persons principal place of residence, however if the owner is physically absent from Australia, this absence does not count towards the 200 day period.

The amendment to the Land Tax Act 1956 also permits the Chief Commissioner of State Revenue to:

  • Waive the 200 day requirement in exceptional circumstances where a brief absence from Australia has occurred.

5C - Land Tax Act 1956

Certain development by Australian-based developers that are foreign persons

Prior to the legislation amendment to the Land Tax Act 1956 this exemption applied to Australian based developers who were using the land for:

  • new home construction, or
  • subdivision

Following the amendment, a new use was introduced, being:

  • development of land which will be wholly or predominantly used for commercial or industrial purposes

There have also been minor changes to the availability for a refund form surcharge land tax. These include:

  • A deadline of 12 months to apply for the refund from the date of:
    • the completion of the sale of the new home, or
    • the issue of the subdivision certificate, or
    • the start of the use of the land wholly or predominantly for commercial or industrial purposes; and
    • no later than 10 years after completion of the transfer of the residential land to the Australian corporation: and
  • A restriction on the refund being given where the Australian corporation acquired the land before 21 June 2016, and an application for the refund was not made on or before 21 June 2021.

5D - Land Tax Act 1956

Surcharge land tax - discretionary trusts

Prior to the legislation amendment to the Land Tax Act 1956 there were provisions provided with respect to tax avoidance schemes.

These provisions have been removed and replaced by the amendments to the Taxation Administration Act 1996.

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