From the 2017 tax year, if you plan to build or renovate, you can claim the concession for four years after you take ownership. If tenants or others occupy the home when you become the owner, you can only claim the concession once they move out.
you must physically live in the property continuously for at least six months once construction is complete
you cannot generate any income from the property once construction or renovations begin
you and any others can only use the land for legal purposes
the land must not have the option to build more than two residences or residential units under local planning laws, including when combined with adjoining land
you or another family member must not own and occupy another principal place of residence.
You may be able to claim an exemption if you move out of your main residence and live in a residence you do not own. You can claim the exemption for up to six years, or up to four years if you cannot live on the land eg due to renovation.
To qualify, you must:
have lived there continuously for at least six months before moving away
not own another principal place of residence
only earn income from the property to cover basic property expenses such as rates, water and other amenities
not lease out your property for longer than six months in a calendar year.
If you lease out your property for longer than six months, you’ll need to pay land tax in the following year unless you move back into the home before 31 December.
If you own the home you live in through a trust or company, you need to pay land tax if:
the land is owned by a company or owned jointly with a company, unless the company is a ‘trustee company’ under the Trustee Company Act 1964 or the Public Trustee, or a company acting as trustee of a concessional trust.
If you conduct some business at home, you might need to pay land tax for the proportion of the property used for work. You don’t have to pay land tax if you primarily conduct your business somewhere else and only one room in your home is sometimes used for work eg a home office or workshop.
Crown land: a lease of land owned and managed by state government for which the Crown is liable for land tax.
Council land: owned and operated by the local council.
Land is exempt from land tax if:
the term of the lease is less than 12 months, including any period under an option
the lessee is the Crown, a local or county council or a public authority
the lease was entered into before 1 January 1987 and the terms of the lease relating to rental payable remain unchanged (for land leased from the Crown only)
the lease was entered into before 1 January 1991 and the terms of the lease relating to rental payable remain unchanged (for land leased from local and county councils and NSW public authorities only).
You cannot apply for the Crown lease exemption online.
If you lease property from either the Crown or council and you think you may be liable for land tax, you can complete and lodge the Crown lease registration form.