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 depending on the use of the land.
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 or for a longer period where permission is given by the owner. A refund may be available as a result of a reassessment, but monies paid more than five years prior to the refund request being received cannot be refunded.
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) in accordance with a deceased person’s Will;
- a trustee, beneficiary or unitholder of land held on trust, where an appropriate notice has been lodged;
- 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. Where a part of the land is occupied by the owner as their principal place of residence, and that part exceeds 75% of the total floor area of all buildings upon the land, the land may qualify for a full exemption from land tax.
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 the land tax payable against the new principal place of residence may be granted for that financial year. To be eligible, they cannot receive any rent for either home in that same financial year.
- 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 an exemption); and
- the other is the intended (but not yet occupied) principal place of residence, and would otherwise be liable for land tax
a waiver of the land tax payable will be made available on the parcel of land which becomes the owner’s principal place of residence during the year, 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 waiver is sought.
- 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 an exemption); and
- the other is 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 the parcel of land which was the owner’s previous principal place of residence, 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 waiver is sought.
- 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, upon completion of the build, a builder’s Schedule 19A or Certificate of Practical Completion to evidence that the build has been completed.
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 land is owned by a natural person and:
- 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 upon land that was previously their principal place of residence because they are renovating or rebuilding the buildings upon the land, that land may receive an exemption from land tax for up to 2 financial years:
- where the person owns only that parcel of land and they rent another property or stay with friends/relatives during the renovation/rebuild; 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).
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 or rebuilt 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 exemption 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
An exemption may be granted to land where a person purchases land that will become their principal place of residence upon completion of renovations or rebuild prior to moving in.
The person may be granted an exemption for up to 2 financial years if a natural person owns 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 exemption period or the 12 month period following completion of the rebuild/renovation;
- the application for relief is received within 5 years from the date the person purchased the land; and
- no other land is owned that is receiving an exemption from land tax on the basis that it is their principal place of residence.
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 this timeframe. The discretion will only be used where the Commissioner determines that there is good reason to do so.
The Commissioner also has the discretion to waive the 12 month occupancy requirement for the exemption available to land undergoing a renovation or rebuild where the owner, at the time they applied for the exemption, intended to occupy the land for 12 months but there were good reasons why the owner was unable to do so.
Should an owner wish for the Commissioner to consider their case and use the discretion available, they must write to the Commissioner providing their reasons why there are good reasons to either extend the 2 year exemption period or to waive the 12 month occupancy requirement.
To request an extension to the 2 year exemption period or a waiver of the 12 month occupancy requirement, please email psassessment@sa.gov.au, outlining the reasons, and any supporting evidence, for your extension/waiver request. Please also include either your ownership, assessment number or the property address.
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 to become their principal place of residence.
To apply for land tax exemption, please complete an online Application for Land Tax Exemption or Relief including any supporting documentation.