Department of Finance

Exemptions and Concessions

 

Residential exemptions and concessions

Criteria Publications
Primary Residence
Private residential property is exempt if owned by an individual who uses it as their primary residence as at 30 June, except property held in trust or owned in a company name.

A proportionate exemption may be allowed:

  • if not all owners reside in the property
  • where a piece of land is used for a dual use such as a shop (non-exempt purpose) and the owner(s) primary place of residence

Primary place of residence status of the property in regard to capital gains tax (CGT) is not relevant in determining whether the property is exempt from land tax.

 

Private residence under construction or refurbishment at 30 June
An exemption can be granted for one assessment year or two consecutive assessment years for private residential property that is undergoing construction or refurbishment.

If the residence is not completed within two assessment years, the Commissioner will “roll forward” the exemption by allowing an exemption for the assessment year following the second assessment year, and reassessing land tax for the first assessment year.

This exemption may apply if all the following criteria are met:

  • you commence/carry out construction or refurbishment of the private residence in the 2019-20 financial year
  • you do not own any other private residential property that is exempt from land tax as your primary residence
  • you occupy the property as your primary place of residence on or before 30 June 2021 and are the first person to do so

For the exemption to apply you must lodge: 

 

Moving from One Residence to Another: Established Home
You may qualify for this exemption if you owned two residences (your former residence and your new residence) at 30 June 2019.

You may qualify for this exemption if all of the following criteria are met:

  • the new residence was purchased between 1 July 2018 and 30 June 2019
  • you moved from your former residence to your new residence on or before 30 June 2020
  • you delivered possession of the former residence to a purchaser on or before 30 June 2020
  • you did not derive rent from either the former residence or the new residence during the period that you owned both properties
Important:

This exemption requires that you have actually commenced occupation in the new residence and delivered possession of the former residence to a purchaser.

Moving from One Residence to Another: Newly Constructed or Refurbished Home
This exemption applies for two consecutive assessment years where the owner occupies their primary residence while constructing or refurbishing a new primary residence.

You may qualify for this exemption if all of the following criteria are met:

  • you own two residences, the first acquired being occupied as your primary residence and the second acquired (new) residence is being constructed or refurbished. The new residence must have been purchased between 1 July 2018 and 30 June 2019
  • you complete the sale of the first acquired residence and deliver to the purchaser on or before 30 June 2021
  • you complete and occupy the second acquired newly constructed or refurbished residence between 1 July 2020 and 30 June 2021
  • while you owned both properties, you must not have derived any income from either property
For the exemption to apply you must lodge:

 

Subdivided Residential Land
This concession allows land tax and Metropolitan Region Improvement Tax to be paid on the lower undeveloped (or ‘englobo’) value of the land, i.e. the value of the land prior to the subdivision, rather than the full subdivided value of lots, for one year after the creation of the lots. For the exemption to apply you must lodge:

See the Land Tax Forms and Publications page for other publications relating to primary residence exemptions.

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Primary production exemptions

wine

Primary production consists of activities described as agriculture, silviculture, reafforestation, grazing, horse-breeding, horticulture, viticulture, apiculture, pig raising or poultry farming.

Secondary production is considered to be land used to process, store or transport processed or converted produce. Land used for this purpose is not exempt from land tax. We will apply a partial exemption if land is used for both primary and secondary production.

You must provide evidence to prove a primary production activity is a primary production business. See Commissioner's Practice LT 17 'Primary Production Business Exemptions'.

Apply for an exemption for land used for primary production business using form FLT30 'Exemption Application: Land Used for Primary Production Business'.

 

Changes to exempt land

If an exemption has been approved and the use, user or ownership of the land changes, notify us in writing by the beginning of the assessment year following the change, or 3 months after the day of the change, whichever is later. A penalty of up to $5,000 may apply if you do not notify us as required.

 

Charitable exemptions

Section 37 of the Land Tax Assessment Act 2002 provides that the Commissioner cannot give an exemption from land tax to land held by a charitable body or organisation that is a relevant body unless a beneficial body determination is in force.

The changes took effect from the 2015-16 year of assessment. For further details regarding charitable exemptions please refer to Revenue Ruling DA PT LT 18 Charitable Exemptions and Land Tax Circular 4.

Find out more about charitable exemptions.

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Other exemptions, concessions and rebates

Land may be eligible for an exemption, concession or rebate in a number of different circumstances.

Partial exemptions and concessions are available where only some of the owners use the land as their primary residence or where the land is used for both exempt and non-exempt purposes, such as residential and business/commercial purposes.

Pensioners are not entitled to a concession from land tax. However, a war widow(er) or a veteran's widowed mother are entitled to a concession to the extent of the first $10,000 of the total assessable value of the land on which they would otherwise be assessed.

The Office of State Revenue administers several schemes that may be of assistance.

The Department For Communities publishes various publications which include additional concessions and rebates.

Click on the link below to complete the relevant application form.
Land used for residential purposes by individuals under the terms of a will
Continued residential exemption after death of the owner
Land owned by an individual and used by a disabled person related to the owner as their primary residence
Land owned by a trust/company and used by a disabled beneficiary as their primary residence
Land used for residential purposes, not zoned solely residential and situated in the inner city area
Land owned by a religious body and used for religious purposes
Land owned by an educational institution and used for educational purposes
Land used as an aged care facility
Land owned by a non-profit or sports association and used for the purposes of that association
Land used as a caravan park or camping ground
Land used as a retirement village

Please apply in writing for the following exemptions, concessions and rebates.
Land owned or vested in the Crown, local government or an agency of the Crown
Land used for a public or religious hospital
Land held as mining tenements
Land dedicated to zoological, agricultural or other public purposes
Land owned by a veteran’s surviving partner or mother
Land held under an approved conservation covenant
Land vacated for sale by mortgagee
 

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