Starting from 1 February 2024, changes are coming into effect concerning the principal place of residence exemption from land tax. If you’re planning to purchase or currently own a property, here’s what you need to know:
Key changes
From 1 February 2024, anyone who purchases and occupies a property but own less than 25% interest (either solely or combined) will not be entitled to the principal place of residence exemption from the 2025 land tax year onwards.
Transitional Provisions
For existing homeowners and those who purchase a property and claim the exemption by 31 January 2024, transitional provisions will be in place until the 2026 land tax year. This means there’s a narrow window to assess and possibly adjust your property holdings in light of these changes.
Principal place of residence
You can claim an exemption for land that you use and occupy as your principal place of residence (your home).
The general requirements of this exemption are that you must: .
- only claim one exemption per family
- only claim one principal place of residence worldwide
- have continuously used and occupied the property solely for residential purposes before the taxing date
- have used the land for residential purposes
- be a natural person. The exemption does not apply to land owned partly or wholly by a company or held in a Special Trust.
When applying for the exemption you may need to provide supporting documents such as but not limited to:
- electricity bill showing usage
- gas bill showing usage
- home and contents insurance policy
Council land rates and water rates are not acceptable documents as these do not demonstrate you reside in the property.