An exemption from land tax may be granted on a parcel of land where the Commissioner is satisfied that, at midnight on 30 June immediately before the relevant financial year, the land is owned and occupied by a natural person as their principal place of residence (that is, their home).

The land may be partially or wholly exempted from land tax.

What if only one owner lives in the home?

Where a property is owned by 2 or more people, only one of them is required to be living in the principal place of residence to claim this exemption. However, if the residing owner owns an interest in the property of less than 50%, they may not be eligible for an exemption where the residing owner holds an interest of:

  • 5% or less, unless the Commissioner is satisfied that the resident’s interest was not for a purpose related to the reduction of the amount of land tax payable; or
  • between 5% and 50% and the Commissioner has formed the opinion that the resident’s interest was created to reduce the amount of land tax payable.

Can the exemption apply for previous financial years?

Where criteria is satisfied for previous financial years, a principal place of residence exemption may be backdated up to a maximum of 5 years. A refund may be available as a result of a reassessment.

Eligibility for a full principal place of residence exemption

In order to be eligible for a full exemption, the following criteria must be met:

1.  The land must be owned by a natural person and be their principal place of residence (that is, their home). Where a property is owned by 2 or more people, only one natural person is required to meet this condition.

Also see the what if only one owner lives in the home section.

A principal place of residence is where the property:

  • is the primary residence of the natural person owner(s);
  • is the natural person owner(s)’s usual abode; (that is, where they eat and sleep); and
  • is occupied on an ongoing basis and occupation is not merely transitory or an intention to occupy.

For the purpose of this condition, the term 'owner' can also include:

  • a shareholder in a home unit company;
  • the holder of a life interest (not being a lessee);
  • a trustee, beneficiary or unitholder of land held on trust;
  • a beneficial owner entitled to ownership of the land under the laws of intestacy (where the registered proprietor is deceased, probate or letters of administration have been granted and the estate is yet to be administered);
  • a person deemed the beneficial owner where the laws of intestacy apply (that is, where the registered proprietor is deceased, probate or letters of administration have been granted and the estate is yet to be administered); or
  • where the owner is deceased, the executors of the deceased person’s will.

The term owner does not include the directors of a company which owns the land.

2.  The buildings on the land must have a predominantly residential character; and

Note: Residential character of the building is determined by its design and use. Caravans and tents are not regarded as buildings for the purpose of these criteria.

3.  At least 75% of the total floor area of all buildings (including sheds and garages) on the land are used for residential purposes as the owner’s principal place of residence.

Eligibility for a partial principal place of residence exemption

A partial exemption from land tax may apply where between 25% and 75% of the total floor area of all buildings (including sheds and garages) on the land are used for a business or commercial purpose (other than the business of primary production). In order for the exemption to apply, the first 2 criteria for the full exemption must still be met.

Where a partial exemption may apply, the following scale applies:

Area used for business or commercial purposes expressed as a percentage of the total floor area of all buildings on the land Percentage reduction in taxable value of land
More than 75% nil (no exemption)
75% 25%
70% or more but less than 75% 30%
65% or more but less than 70% 35%
60% or more but less than 65% 40%
55% or more but less than 60% 45%
50% or more but less than 55% 50%
45% or more but less than 50% 55%
40% or more but less than 45% 60%
35% or more but less than 40% 65%
30% or more but less than 35% 70%
25% or more but less than 30% 75%
less than 25% 100% (full exemption)

Motels, hotels, serviced apartments and other similar accommodation

This exemption, or partial exemption, extends to motels, hotels, serviced apartments and other similar accommodation. The area used for the hotel, motel, set of serviced holiday apartments or other similar accommodation will be taken to be the area used for a business or commercial purpose.

Land tax relief where the owner moves into the property during the financial year

Where the land becomes the owner’s principal place of residence during the financial year, a refund or waiver may be granted in any of the following circumstances:

  • where a natural person owns land at 30 June which becomes their principal place of residence (PPR) during the financial year and they sell any other land they had received a principal place of residence exemption on in the financial year, a waiver of land tax payable may be granted. To be eligible, they cannot receive any rent for either home in that same financial year.
  • where a natural person owns 2 parcels of land as at midnight 30 June because they have:
    • bought a new home and are in the process of selling their previous home or have recently sold their previous home;

    and

    • one of the properties is their current principal place of residence (and eligible for exemption); and
    • the other is either the intended (but not yet occupied) principal place of residence or their previous principal place of residence, and would otherwise be liable for land tax

    a waiver of the land tax payable will be made available on both parcels of land, provided no rental income is received from either property (when not occupied by applicant) during the period that the homes are owned concurrently and that the former residence is sold prior to the end of the financial year in which the exemption is sought; or

  • where a natural person buys land as their principal place of residence, which was a taxable parcel of land when owned by the vendor, and the land tax on the land is apportioned (usually by a conveyancer or similar) between the buyer and vendor at settlement, a refund of the land tax paid by the purchaser is available.

See the refunds of overpaid tax section for additional information relating to any applicable refund.

If an owner has recently completed building their home and are applying for one of the waivers described above, RevenueSA requires a builder’s Schedule 19A or Certificate of Practical Completion.

Where a principal place of residence has been destroyed or rendered uninhabitable

Land may be exempted from land tax if the Commissioner is satisfied:

  • that the person has ceased to occupy any building on the land of a predominantly residential character because it has been destroyed or rendered uninhabitable by an event which the person is not responsible for (whether directly or indirectly) or which resulted from an accident;
  • that the building was the person’s principal place of residence immediately before the date the building was destroyed or rendered uninhabitable;
  • that the person intends to repair or rebuild the building within 3 years from the date the building was destroyed or rendered uninhabitable;
  • that the buildings on the land will have a predominantly residential character after completion;
  • that the person intends to occupy the land as their principal place of residence after the completion of the building work; and
  • the person is not receiving an exemption from land tax on other land under the principal place of residence provisions.

The land will be exempted from land tax for a period of up to 3 financial years. The land will become taxable following the exemption period if construction has not been completed.

See land tax exemptions, waiver or relief: where your residential home has been destroyed or rendered uninhabitable page for more information.

Where a principal place of residence is not occupied due to renovations or a rebuild

Where a person no longer lives at their principal place of residence because they are renovating or rebuilding the property, the person can elect to maintain the exemption from land tax for up to 2 financial years:

  • where the person owns only their principal place of residence and they rent another property or stay with friends/relatives during the renovation/rebuild, the exemption can be extended for up to 2 financial years even though the person does not live in the principal place of residence; or
  • where the person owns and lives in another parcel of land during the renovation/rebuild they can elect which parcel of land will receive the exemption (the property being renovated/rebuilt or the property they live in during the renovation/rebuild) for up to 2 financial years.

The 2 year timeframe for land being renovated/ rebuilt is only available when:

  • the building(s) being renovated/rebuilt will have a predominantly residential character on completion;
  • the person lives in the renovated house for at least 12 months following completion;
  • no rental income or other consideration is received from the property that is renovated/rebuilt during the 2 year period or the 12 months following completion of the rebuild/renovation;
  • the application for relief must be received within 5 years from the date the person moved out of their principal place of residence; and
  • the person will only be entitled to one principal place of residence exemption at any one time. The exemption can only be granted on land owned by the person who lives in, or intends to live in, the property.

See the land tax exemptions, waiver or relief (where you are renovating or rebuilding your residential home) page for more information.

Purchasing land that will become a principal place of residence

The exemption may also include where a person purchases a principal place of residence (being their only property) and renovates or rebuilds prior to moving in.

The person may be granted an exemption for up to 2 financial years if:

  • they own the land;
  • they live in the renovated/rebuilt house for at least 12 months following completion;
  • the building(s) being renovated/rebuilt will have a predominantly residential character on completion;
  • no rental income or other consideration is received from the intended principal place of residence during the 2 year period or the 12 month period following completion of the rebuild/renovation; and
  • the application for relief is received within 5 years from the date the person purchased the land.

Commissioner's Discretion

RevenueSA recognises that obstacles to completing renovations or rebuilds within the 2 year timeframe may occur. Accordingly, the Commissioner has the discretion to extend the timeframes. The discretion will only be used where the longer timeframe for the rebuild/renovation arises from exceptional circumstances outside the control of the taxpayer.

Applications for an extension must be made in writing to RevenueSA.

See land tax exemptions, waiver or relief: where you are renovating or rebuilding your residential home page for more information.

Application for exemption

The owner of land may apply for an exemption or partial exemption from land tax through RevenueSA for:

  • an exemption from land tax on their principal place of residence (their home);
  • an exemption from land tax while renovating or rebuilding their principal place of residence, or where their principal place of residence has been destroyed or is uninhabitable; or
  • a refund along with their principal place of residence exemption, if they paid land tax at settlement on land purchased as their principal place of residence.

Please complete an online Application for Land Tax Exemption or Relief including any supporting documentation.