Other land tax exemptions

Who can apply

Your boarding house may be exempt from land tax if during the previous year:

• at least 80% of occupants were long-term residents, and
• you did not charge more than the maximum tariffs for that year.

Supporting documents or information

You will need to provide the following documents or information when you apply for this exemption:

• Date registered with NSW Fair Trading.
• Percentage of land used as a boarding house or assisted boarding house.
• Boarding house tenancy details, including:
  • total number of rooms, suites or beds available to boarding house residents
  • number of rooms, suites or beds occupied by long term residents
  • whether tariffs charged were more than maximum tariffs specified in the applicable revenue ruling, and
  • occupancy agreements to support your declaration.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Need more detailed information?

Revenue Ruling LT-117: Exemption - Land Used and Occupied Primarily for a Boarding House explains the conditions that entitle an owner to claim an exemption or a reduction in the taxable land value.

Who can apply

Your land may be exempt from land tax if it is:

• used for low-cost accommodation, and
• situated within a 5 km radius of 1 Martin Place Sydney (the former Sydney GPO Building). Use our interactive map to see if your property meets this requirement.

If only part of the land is used to provide low-cost rental accommodation, the owner may be entitled to a partial exemption.

Supporting documents or information

You will need to provide details of your tenancy agreements when you apply for this exemption.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Need more detailed information?

Revenue Ruling LT-118 – Exemption: Land Used and Occupied Primarily for Low Cost Accommodation explains the conditions that entitle the owner to claim an exemption or a reduction in the taxable land value

Who can apply

If you own a residential or caravan park used as a home for a community of senior or retired persons, you may be eligible for a full or partial land tax exemption.

Eligibility for this exemption is based on circumstances as of 31 December of the previous land tax year.

Supporting documents or information

You will need to provide the following documents or information when you apply for this exemption:

• Council’s approval to operate a manufactured home estate, caravan park, camping grounds and moveable dwellings.
• Council approved community plan (map) which includes site numbers and size or dimensions of each site.
• A list of the sites claiming to be exempt, including the names of the residents.
• A copy of the park’s insurance policy.
• A copy of the site agreements entered with the residents who occupy them.

Manufactured home estates

You will need to provide the following information if the residential park is being developed as a manufactured home estate:

• A copy of your council’s development approval.
• The sale agreement for the home.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Need more detailed information?

Revenue Ruling LT 071 v3 – Exemption: residential parks primarily used and occupied by retired persons contains approved guidelines and explains how owners may apply for the concession.

Who can apply

Land may be eligible for this exemption if it is owned or held in trust by a non-profit organisation, including:

• a charity
• an educational institution, or
• a religious organisation.

To qualify your organisation must:

• only have a charitable, educational or religious purpose, such as caring for aged or unwell clergy, or ministers and their wives, widows or children, and
• not carry out business for the profit of its members.

Supporting documents or information

You will need to provide the following documents or information when you apply for this exemption:

• Financial statements for the last 2 years.
• Your organisation’s:
  • latest annual report
  • constitution or a copy of the memorandum and articles of association, and
  • regulations, rules and objectives.
• Evidence that there can be no distribution to members if the organisation is wound up.
• Proof that income cannot be distributed to members.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Who can apply

Retirement villages, nursing homes and aged care establishments currently operating and occupied may be exempt from paying land tax.

Where land is only partly developed as a retirement village and/or aged care, a partial exemption will apply. Owners may calculate the partial exemption based on the area of land in use for an exempt purpose.

Supporting documents or information

You must provide the following documents or information when applying for this exemption:

• Copy of development approvals issued by appropriate authorities (Council or NSW Planning Authority).
• Copy of approved plans (Council or NSW Planning Authority).
• Copy of occupation certificate (Council or NSW Planning Authority).
• Copy of relevant approval to provide aged care under section 8-1 of the Age Care Act 1997 (Council or NSW Planning Authority).

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Need more detailed information?

Revenue Ruling LT 031 v2: Exemption for retirement villages and aged care establishments explains how land tax liability is calculated when an aged establishment is entitled to a reduction in the land value.

Who can apply

Land used entirely as a childcare centre may be eligible for an exemption.

Types of services include:

• long day care services
• family day care services
• outside school hours services, or
• preschool programs including those delivered in schools.

To qualify your organisation must be an educational or child care service as defined by the Children (Education and Care Services) National Law (NSW).

This exemption does not apply to:

• vacant land, or
• where the centre is under construction, even if intended for a childcare or education facility.

Supporting documents

You must include a copy of your service approval letter when you apply for this exemption.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Who can apply

Land containing a building used for a society, club or association may be  exempt from land tax provided:

• a society, club or association is not carried on for the financial profit of its members
• no part of the building is used for the purpose of a commercial activity open to members of the public.

The land may include car parks solely used by the members of the society, club or association.

Supporting documents

You must provide the following documents when you apply for this exemption:

• A copy of the constitution and/or a copy of the memorandum and articles of association and any amendments.
• A copy of the society, club or association’s financial statements for the last 2 years.
• A copy of the latest annual report.
• A copy of the trust deed (where land is held in trust).

When you need to apply

By 31 March of the relevant land tax year or by the due date of your notice of assessment.

Eligible build-to-rent (BTR) properties will receive a 50% reduction in land value for land tax purposes on the built-to-rent portion once construction is completed and an occupation certificate is issued.

An exemption may also be applied for surcharge land tax (or a refund of surcharges paid). This can be done with the BTR application or as a separate application.

BTR developments may also receive an exemption from surcharge purchaser duty.

Who can apply

Applicants must meet the following requirements:

• The BTR development commenced construction on or after 1 July 2020 and is available from the 2021 land tax year until 2040.
• Buildings on the parcel of land contain at least 50 self-contained dwellings used specifically for the purpose of BTR.
• At least 10% of the construction labour force hours involves work by certain classes of workers.
• Demonstrate that a genuine option to enter a fixed-term lease of at least 3 years was given to all tenants.

Supporting documents

To support your application, you will need to provide the following:

• A no objection notification or exemption certificate from Foreign Investment in Australia.
• Development Application containing:
  • compliance with relevant affordable housing policies that may be imposed under the Environmental Planning and Assessment Act 1979, and
  • a building on a parcel of land containing 50 self-contained dwellings used specifically for the purpose of BTR.
• Occupation Certificate.
• Documents that show the BTR properties are managed by a single management entity, or otherwise meet the requirements of Part 2, 2(d) of the Treasurer’s Guidelines.
• Construction labour force hours involved no less than 10% of certain classes of workers as stated in Revenue Ruling G014: Build to rent.
• Evidence that demonstrates a genuine option of a fixed-term lease of at least 3 years was given to all tenants, such as:
  • tenancy agreements
  • contracts
  • negotiation paperwork, or
  • prospectus.

When you need to apply

By 31 March of the relevant land tax year or by the due date of your assessment notice.

Need more detailed information?

Revenue Ruling G014: Build to rent and the Treasurer’s Guidelines explain the conditions that must be met to entitle an owner to claim the reduction in land value for eligible build to rent properties.

Foreign persons who own residential land in NSW must pay surcharge land tax unless they qualify for an exemption.

The following exemptions are available:

• Intended principal place of residence.
• Australian-based developers.
• Residential land used for commercial purposes.
• Build-to-rent.

Read more about surcharge land tax for foreign owners.