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Surcharge land tax exemption – intended principal place of residence
A foreign person may be exempt from surcharge land tax on their home in NSW if they meet certain residency requirements. Learn how to apply for the exemption.
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Who is a foreign person?
You are generally considered a foreign person, unless you are:
an Australian citizen, or
a permanent resident of Australia who has lived in Australia for 200 days or more within a calendar year (the 200 days do not have to be consecutive).
This definition means that a permanent resident of Australia who lives overseas for 165 days or more in a calendar year (166 days or more in a leap year) is considered a foreign person and may be liable for surcharge land tax.
Revenue NSW does not automatically grant this exemption to eligible landowners.
If you believe you meet the eligibility requirements follow the instructions below to apply in Land Tax Online.
When you need to apply
You must apply for your exemption by:
31 March of the year you are requesting the exemption (called the relevant tax year), or
by the due date of your assessment notice.
Supporting documents or information you will need to supply
You must provide supporting evidence to prove your PPR. Learn more about how to prove your PPR.
You also need to supply a copy of your visa grant notice and one of the following documents.
1
International movement record
To prove you have met the residence requirement for the relevant tax year (being in the country for 200 continuous days in the relevant land tax year), you must supply an international movement record.
The relevant tax year is the year you request the exemption to take effect.
You must provide your international movement record for the relevant tax year if you:
have been issued with an assessment notice for surcharge land tax for a prior land tax year, and
resided in your property as your PPR for 200 continuous days during the land tax year.
2
Declaration of intention to use and occupy
You must provide a declaration on the intention to use and occupy the property for 200 continuous days:
if you were not ordinarily resident in the previous land tax year, and
you intend to use and occupy your property as your PPR for the current land tax year.
Definition of ordinarily resident
You are considered ordinarily resident in Australia for the purposes of surcharge land tax if you have been in Australia for at least 200 days in the previous calendar year, and:
you are currently in Australia and have no visa restrictions on how long you can stay, or
you have recently left Australia, but before departing, you had no time limit on your stay.
The 200 days do not have to be consecutive to be ordinarily resident.
If you are unsure whether you qualify, consider seeking independent advice before submitting your declaration.
Examples of supporting documents or information
Example 1: Retrospective application for intended PPR exemption on surcharge land tax
In 2024 John was assessed for surcharge land tax. John has received a 2023 and 2024 land tax assessment notice which includes surcharge land tax.
In this case 2024 is the current land tax year, and 2023 was the previous or prior land tax year.
John used and occupied his PPR for a continuous period of 200 days in 2023 and would like to claim the intended PPR exemption from surcharge land tax for the 2023 land tax year.
John should update his land tax details in Land Tax Online and provide a copy of his international movement records for 2023, proving he met the residence requirements.
John's PPR will be exempt from surcharge land tax for the 2023 land tax year provided he meets the criteria. John will not be considered foreign for the 2024 land tax year as he will be considered ordinarily resident.
Example 2: Current year application for intended PPR exemption on surcharge land tax
In 2023 Martha was a permanent resident but was not in Australia for 200 or more days. Martha is considered a foreign person in 2024.
In this case 2024 is the current land tax year and 2023 was the previous or prior land tax year.
Martha intends on using and occupying her PPR for a continuous period of 200 days in the current land tax year and would like to apply for an exemption from surcharge land tax on her home.
Martha should update her land tax details in Land Tax Online and provide a declaration on the intention to use and occupy the property for 200 continuous days in the current land tax year.
Martha's PPR will be exempt from surcharge land tax for the current land tax year.
Please note, this will be subject to a review of Martha's compliance with the residence requirement.
How to apply
Tip
Make sure you have all the supporting documents ready before starting the online application.
You must apply for the exemption by updating your land tax details (lodging a return) in Land Tax Online.
Read more about how to update land tax details, including what happens after your application is submitted.
