Land tax amendments

Land tax

Exemption for rent/buy scheme

An amendment provides a land tax exemption for any land that is the subject of a rent-buy scheme for which the NSW Land and Housing Corporation is currently liable to pay land tax. This amendment applies from the 2006 tax year.

Exemption for owner who is in full time care

At present, the Land Tax Management Act 1956 allows the principal place of residence exemption to continue to be claimed by a person in respect of his or her former principal place of residence for a period of absence from the residence of up to 6 years, subject to certain conditions, including a requirement that the land must not be rented for more than 6 months in any land tax year.

An amendment allows that concession to be extended indefinitely during any period in which the former resident is in full time care in a hospital, mental hospital or aged care establishment or living with a permanent carer. This amendment will have effect for the 2007 land tax year.

Former principal residence of a deceased person

An amendment extends an existing concession that allows land that was the principal place of residence of a deceased person, to remain exempt for 12 months after death, or until the property is transferred in accordance with the will, or sold.

The purpose of the amendment is to extend the exemption where the property is transferred to a beneficiary prior to sale, provided the sale is completed within 12 months. This amendment will apply from the 2007 land tax year.

An amendment also allows the exemption to continue beyond 12 months if the land is used and occupied by a person who resided with the deceased owner, and that person continues to occupy the property with the permission of a beneficiary of the estate. This amendment will have effect from the 2007 land tax year.

Application of principal place of residence exemption to companies

An amendment makes it clear that the principal place of residence exemption cannot be claimed in relation to land partly owned by a company, even if a natural person is one of the part owners.

However, the amendment does not prevent the principal place of residence exemption applying in respect of land owned by a company if the Land Tax Management Act 1956 deems the company not to be an owner. Examples include company title units, and land being sold by a company, where the sale has not been completed but the purchaser has taken possession under the contract of sale.

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