Exemption from Land Tax

In accordance with Section 4, 5 and 5A of the Land Tax Act 1936, an exemption from land tax may be granted in the following circumstances:

Land used as the Owner’s Principal Place of Residence;
Land used for Primary Production; and
Other exemptions.

Land used as the Owner’s Principal Place of Residence

1. Where the land was the principal place of residence of the owner at 30 June:

(a) a full exemption is available where:

the land is owned by a natural person (whether or not he/she is the sole owner of the land);
the buildings on the land have a predominately residential character; and
less than 25% of the total floor area of all buildings on the land are used for any business or commercial purpose (other than the business of primary production).

(b) a partial exemption is available where the first two full exemption criteria mentioned above are met and between 25% and 75% of the total floor area of all buildings on the land are used for any business or commercial purpose (other than the business of primary production). A sliding scale of exemption exists in these circumstances, ranging from 25% to 75% reduction in the taxable value of land. In this situation a Notice of Land Tax Assessment will indicate a taxable site value that is correspondingly less than the site value of the land as determined by the Valuer-General.

Motels, Hotels, Service Apartments and other similar accommodation

From 2010-11 the exemption, or partial exemption, extends to motels, hotels, services apartments and other similar accommodation. The area used for the hotel, motel, set of servived holiday apartments or other similar accommodation will be taken to be the area used for business or commercial purposes.

To apply for an exemption, you need to complete an Application for Residential Exemption Form once you have moved in. (If you have recently completed building your home, please include a Schedule 19A - Statement of Compliance when you send your Application for Residential Exemption to RevenueSA.)

2. Where the land becomes the principal place of residence of the owner after 30 June (i.e. between 1 July and 30 June in the year of assessment), the exemption described in 1(a) or (b) above, or a refund, may be available in any of the following two circumstances, provided you apply prior to 30 September following the end of the financial year for which the refund or waiver is sought:

(i) where at 30 June a person owns land on which a home is either to be constructed or is in the process of being constructed for owner occupation during the financial year for which the exemption is sought;

To apply for an exemption, you need to complete an Application for Residential Exemption Form. (If you have recently completed building your home, please include a Schedule 19A - Statement of Compliance when you send an Application for Residential Exemption to RevenueSA.)

(ii) where a person is in the process of selling a home and as a result owns two properties at 30 June, one of which is the current principal place of residence (and eligible for exemption) and the other is the intended but not yet occupied principal place of residence (and liable forland tax). Relief will be made available on both properties provided no rental income is received from either property (when not occupied by the owner) during the period that the homes are owned concurrently and the former residence is sold prior to the end of the financial year in which the exemption on the new residence is sought;

To apply for an exemption, you need to complete an Application for Residential Exemption Form once you have moved in to the new residence. (If you have recently completed building your home, please include a Schedule 19A - Statement of Compliance when you send your Application for Residential Exemption to RevenueSA.)

3. Where a person purchases a property, which was taxable in the ownership of the vendor (seller) and is to be occupied as a principal place of residence, the purchaser may be refunded any proportionate land tax paid as part of settlement provided you apply prior to 30 September following the end of the financial year for which the refund or waiver is sought:

To apply for a refund, you need to complete an Application for Refund of Land Tax Paid at Property Settlement Form once you have moved in.(If you have recently completed building your home, please include a Schedule 19A - Statement of Compliance when you send your Application for Residential Exemption to RevenueSA.)

* Please Note: Effective from the 2008-09 financial year, where a minor interest in land has been disregarded under the Land Tax Act 1936, the holder of the disregarded interest is not eligible for an exemption or refund. Please refer to Circular No. 279 for more information.

Land used for Primary Production

If the land is situated outside the “defined rural area” of the state (i.e. predominately outside the greater metropolitan areas of Adelaide and Mt Gambier) a primary production exemption is available if:

the land is 0.8 hectare or greater in area; and
the Commissioner of State Taxation is satisfied that the land is used wholly or mainly for the business of primary production.

If the land is situated inside the “defined rural area”, besides meeting the two conditions mentioned above, further conditions apply depending on how the land is owned.

To apply for an exemption, you need to complete an Application for Primary Production Exemption Form. Please also refer to the Primary Production Exemption Information Sheet.

Other exemptions

Subject to conditions, other exemptions from land tax include:

land used for religious, hospital or library purposes;
land owned, let to or occupied by an association whose objects are/include supplying assistance to helpless persons;
land owned, let to or occupied by an association which receives an annual grant or subsidy from money voted by Parliament;
land owned by an association whose object(s) is/include the conservation of native fauna or flora;
land owned or occupied without payment by a person or association carrying on an educational institution not for profit;
land owned by an association established for a charitable, educational, benevolent, religious, or philanthropic purpose;
land owned by specific types of sporting or racing associations; an ex-servicemen (or their dependents) association; an employer or employee industrial association; an association for the recreation of the local community; an association for the hosting of agricultural shows or similar exhibitions; or an association for the preserving of buildings or objects of historical value on the land;
land owned by a prescribed body and used for the benefit of the Aboriginal people.

To apply for an exemption, you need to complete an Application for Exemption pursuant to Section 4 of the Land Tax Act Form. Please also refer to the Section 4 Exemption Information Sheet.

land that is a caravan park; and/or
land that is a supported residential facility and licensed as such under the Supported Residential Facilities Act 1992;
a retirement village occupied by a natural person as his or her principal place of residence;
or a retired persons’ relocatable home park occupied by a natural person as his or her principal place of residence;
land that is used as a residential aged care facility approved under the Aged Care Act 1997 (Cwlth.)

To apply for an exemption, you need to complete an Application for Exemption pursuant to Section 5 of the Land Tax Act Form.

This page was last reviewed 5 April, 2011