Commercial residential property

While surcharge land tax does not apply to commercial land, some commercial businesses provide a form of housing on residential land. From 2017, certain residential premises will be exempt from 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.

Application for assessment or reassessment

To apply for an assessment or reassessment, a written submission must be made outlining the relevant grounds. Documentation supporting the submission may also be required.

Submissions should be sent to Revenue NSW.

Overpayments 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.

Frequent questions

Can a reassessment be made if residential land with a premise was purchased prior to 2017 and surcharge land tax was paid?

Yes, a reassessment of the surcharge land tax can be made and any overpayment will be refunded if the requirements of Revenue Ruling G 011 have been satisfied. A request for a reassessment must be made within 5 years of the initial assessment.

What documentation is required to support a submission?

The supporting documentation required will vary depending on the type of premise. We encourage applicants to provide supporting documents which substantiate their claim that their premise meets the requirements of Revenue Ruling G 011.


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GPO Box 4269

Last updated: 15 May 2018