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  • Surcharge land tax
  • Commercial residential
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In this section
  1. Commercial residential
  2. Exemptions and concessions
  3. Australian-based developers

Commercial residential

Surcharge land tax does not apply to commercial land, however some commercial businesses provide a form of housing on residential land.

From 2017, certain residential premises are exempt from surcharge purchaser duty and surcharge land tax.

Revenue Ruling G 011 clarifies where the surcharge will not apply to residential premises. The ruling identifies the following commercial premises as not being liable for surcharge:

  • Hotels, motels, and inns
  • Hostels and boarding houses
  • Student accommodation
  • Aged care and other care facilities
  • Bed and breakfast accommodation
  • Caravan and home parks
  • Separately titled rooms, apartments, serviced apartments, cottages and villas

It is important to refer to the ruling for information on the features that must be present to meet the requirements.

Consideration of other categories of premises may be made on a case by case basis.

How to apply

To apply for an assessment or reassessment, you must make a submission outlining the relevant grounds and provide supporting documents.

Over-payments will be made via Electronic Funds Transfer (EFT). Eligible applicants will be contacted with further information on how to proceed once their matter has been reviewed.

Supporting documents

If you're applying for assessment, include the following documents with our submission for surcharge purchaser duty:

  • original copy of the contract for the sale of land, and
  • copy of the instrument of transfer, and
  • completed purchaser/transferee declaration declaring the land usage as ‘commercial residential 104I(2)’.

If you're applying for a reassessment, your submission for surcharge purchaser duty will also need to include:

  • original stamped copy of the contract for the sale of land, and
  • copy of the stamped instrument of transfer, and
  • copy of the completed purchaser/transferee declaration

The supporting documents you may need to provide when you apply for an exemption or concession under Revenue Ruling No. G 011 are detailed below.

Hotels, motels and inns

  • Foreign Investment Review Board (FIRB) applications
  • Planning authority permissions
  • Management agreements
  • Hotel/motel insurance policies
  • Statutory licences, as applicable
  • Banking and finance documents

Hostels and boarding houses

  • Foreign Investment Review Board (FIRB) applications
  • Planning authority permissions
  • Proof of registration in the register of boarding houses
  • Boarding house licence if the boarding house is an ‘assisted boarding house’
  • Occupancy agreements

Student accommodation

  • Foreign Investment Review Board (FIRB) applications
  • Planning authority permissions
  • Contractual documentation
  • Occupancy agreements setting out the conditions between the parties

Aged care and other care facilities

  • Foreign Investment Review Board (FIRB) applications
  • Planning authority permissions
  • Documents showing that an ‘approved provider’ of aged care is operating on the premises.
  • Lease/occupancy agreements setting out the rights and responsibilities of the parties.

Bed and breakfast accommodation

  • Please provide the types of documents under ‘Hotels, motels and inns’, as applicable.

Caravan and home parks

  • Planning authority permissions
  • Documents showing that the park is operated on a commercial basis and for short-term accommodation (ie less than 90 days).

Separately titled rooms, apartments, serviced apartments, cottages and villas

  • Foreign Investment Review Board (FIRB) applications
  • Planning authority permissions
  • Management agreements
  • Body corporate by-laws which provide for the management, administration, control and use of the premises and common property.

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    Exemptions and concessions

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