An exemption from land tax may be available to residential units and other facilities provided for the use of residents within a retirement village.

What is a retirement village?

For the purposes of this exemption, a retirement village is as defined in the Retirement Villages Act 2016.

What land is exempt?

Land within a retirement village may be exempt from land tax if the land constitutes a residential unit which is:

  • occupied under a residence contract, as at midnight on 30 June; or
  • available for occupation, under a residential contract, as at midnight on 30 June and likely to be occupied at some time during the twelve months following 30 June;

by a natural person as their principal place of residence.

What is a residence contract?

A residence contract, also known as a licence to occupy, is a contract between the retirement village owner and the resident which entitles the resident to occupy a unit within the village.

What is a principal place of residence?

A principal place of residence is where the land (home):

  • is the primary residence of the owner(s);
  • is the owner(s) usual residence; (that is, where they undertake their normal living activities, such as eating and sleeping);
  • is occupied on an ongoing basis, that is, occupation is not merely transitory or an intention to occupy; and
  • has buildings which are predominately residential in nature.

View more information on the principal place of residence exemption.

Is other land owned by the owner of the retirement village exempt?

The exemption extends to any land adjacent to and used in conjunction with the residential unit, for example a private garden area.

It also extends to any land within the village which provides a facility for the exclusive use of residents (and their guests), such as a community hall.

Vacant land within a village for future development or other properties not used as part of the retirement village are not eligible for an exemption.

Are there any other requirements for the land?

The Certificate of Title for the land must be endorsed with “Application Pursuant to the Retirement Villages Act 2016, the land is to be used as a Retirement Village”.

Endorsement under the previous legislation (Retirement Villages Act 1987) is also acceptable.

If this is not stated on the title, an exemption may still be provided if you can substantiate that the land is being used as a retirement village.

Example

The Golden Years Pty Ltd has recently built a retirement village. The village consists of 10 independent living units, a community hall and an area of vacant land which will be used for future expansion of the village.

As at 30 June:

  • 5 of the units are occupied by residents who have signed a residence contract;
  • 3 of the other units are completed and expected to be occupied by the end of the year; and
  • the remaining 2 units are partially complete.

The Certificate of Title for the property states “Application Pursuant to Retirement Village Act 2016 the land is to be used as a Retirement Village”.

An exemption would apply on the 8 completed units. The community hall would also be granted an exemption because it is for the exclusive use of residents.

An exemption would not apply to the remaining 2 units as they were not complete as at 30 June, or to the vacant land.

However, when the vacant land is developed, any new units which are complete and ready for occupation as at a future 30 June may qualify for an exemption for the following year.

How do I apply for an exemption?

You can apply online.

  • Select Retirement Village as the property type option that best describes the use or circumstances of the property.

Before you commence your application, you will need:

  • Your ownership number. This can be found in the top right corner of your land tax or emergency services levy notice of assessment.
  • The assessment numbers of the units/community facilities. This can be found on your land tax or emergency services levy notice of assessment, water rates or council rates notice.
  • Supporting documentation, such as a copy of:
    • Notification of Retirement Village Endorsement on the Title.
    • Builder’s completion certificates.