Land that is owned or, and in some cases, land occupied by an association or not-for-profit organisation, which meet certain criteria may be exempt from land tax.

What is an association?

An association for the purposes of this exemption includes:

  • a group consisting of 2 or more persons (whether or not incorporated); or
  • any person, or group of persons, holding land on trust (whether or not incorporated).

What must the association be established for?

Land owned by associations established for:

  • charitable, benevolent or philanthropic;
  • religious;
  • educational;
  • sporting or racing;
  • ex-service persons (and dependants);
  • employer or employee industrial;
  • community recreation;
  • agricultural show grounds and exhibition venues;
  • conservation of native fauna and flora;
  • preservation of historical buildings or objects;
  • providing services or support to the community or a sector of the community; or
  • providing services or support in relation to literature, science, language, the arts, the preservation of historical, traditional or cultural heritage;

purposes may be exempt from land tax if certain criteria are met.

Land owned by an association established for charitable, educational, benevolent, religious or philanthropic purposes

Where land is owned by an association established for charitable, educational, benevolent, religious or philanthropic purposes, that land may receive an exemption where:

  • the land is used, or is intended to be used wholly or mainly for the purposes of the association; or
  • the whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

What if the land is owned on behalf of a trust?

Where land is owned on behalf of a trust, it is the trust, and not the registered owner of the land, which must be established for a charitable, educational, benevolent, religious or philanthropic purpose.

Land used for providing assistance to necessitous or helpless persons

An exemption may apply to land owned by an association that provides assistance to necessitous or helpless persons.

This assistance includes the supply of:

  • living accommodation;
  • food;
  • clothing;
  • medical treatment;
  • nursing;
  • pre-maternity or maternity care; or
  • other help.

The land must be used mainly or solely for the purpose of supplying this assistance.

Can the association charge for the service?

Assistance must be provided at either no cost or at a cost (monetary or otherwise) to the recipient which is substantially less than the value of the assistance.

What if the land is leased?

If the association providing the assistance does not own the land, it must occupy the land rent-free or be paying a nominal rental sum (monetary or otherwise).

Land used for educational purposes

An exemption may apply to land used solely or mainly as an educational institution.

The educational institution must be run on a not-for-profit basis.

What if the land is leased?

If the educational institution does not own the land, it must occupy the land for no payment.

Is other land owned by the educational institution but not used for educational purposes exempt?

Land or buildings held by the educational institution as an investment, that are not on the site or grounds of the educational institution, will not be eligible for an exemption.

What if the land is owned on behalf of a trust?

Where land is owned on behalf of a trust, it is the trust, and not the registered owner of the land, which must be established for an educational purpose.

Associations that receive an annual grant or subsidy from money voted by Parliament

An exemption may apply to land owned by association that receive an annual grant or subsidy from money voted by Parliament.

The land must be used solely or mainly for the purposes for which the grant or subsidy is made.

What if the land is leased?

If the association does not own the land, it must be occupying the land either rent-free or be paying a rental sum (monetary or otherwise) that is considerably lower than market value.

Land owned by sporting associations

An exemption may apply to all land owned by an association that was established for purposes of playing sport, including the playing of cricket, football, tennis, golf or bowling or other athletic sports or exercises.

The exemption may also extend to land that is held by an association that holds the land for the purpose of playing one of the abovementioned sports.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

What land is exempt?

An exemption applies to land that is owned by the association and used wholly or mainly for sporting purposes. The exemption also extends to any other land, except residential or vacant land, owned by the association.

Land owned by racing associations

An exemption may apply to all land owned by an association that was established for racing purposes including horse racing, trotting, dog racing, motor racing or other similar contests.

The exemption may also extend to land that is held by an association that holds the land for the purpose of playing one of the abovementioned racing activities.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

What land is exempt?

An exemption applies to land that is owned by the association and used wholly or mainly for racing purposes. The exemption also extends to any other land, except residential or vacant land, owned by the association.

Land owned by an association established for ex-service persons (and their dependants)

An exemption may apply to land owned by an association of former members of the armed forces or for dependants of former members of the armed forces, such as Returned Services League (RSL) clubs.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

What land is exempt?

An exemption may apply to all land that is owned by the association and used for the social or recreational purposes of the members of the association.

Land owned by employer or employee industrial associations

An exemption may apply to land owned by an association of employers or employees, registered under a Commonwealth or State law relating to industrial conciliation or arbitration.

The association’s members must be employers or employees, usually relating to a particular industry.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

What land is exempt?

An exemption may apply to all to land that is owned by the association and occupied for the purposes of the association.

Land held for the recreation of the local community

An exemption may apply to land owned by an association that holds the land wholly or mainly for the recreation of the local community. The term ‘local community’ refers to residents of a specified geographical locality, that is, in the general vicinity of the land.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

Land held by an association for the purpose of agricultural shows and exhibitions of a similar nature

An exemption may apply to land owned by an association that holds the land for the purpose of agricultural shows and other similar exhibitions.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

Land held by an association and used as a reserve for the conservation of native fauna and flora

An exemption may apply to land owned by an association whose objects is, or whose objects include the conservation of native flora or fauna.

What land is exempt?

An exemption may apply to all land that is owned by the association that is used without profit, mainly or solely as a reserve for the conservation of native flora or fauna.

Land held by an association for the preservation of historical buildings or objects of historical value

An exemption may apply to land owned by an association who holds the land for the purposes of preserving buildings or objects of historical value on the land.

The whole of the net income (if any) from the land must be used in the furtherance of the purposes of the association.

Land owned by an association of a prescribed kind

An exemption may be available to all land owned by an association of a prescribed kind and who holds the land wholly or mainly for the purpose of providing services or support to the community, or a sector of the community, in relation to literature, science, languages, the arts, the preservation of historical, traditional or cultural heritage, or for a similar purpose.

Prescribed associations currently eligible for an exemption are the Lakeside Villages Incorporated and The Retirement Homes Association of Australia Incorporated.

How do I apply for an exemption?

You can apply online. (Select Associations and not for profit organisations 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 number of the subject land. 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:
    • Constitution
    • Rules of Association
    • Memorandum and Articles of Association
    • Australian Taxation Office endorsements (e.g. showing charitable status, not-for-profit status)
    • latest financial records
    • Lease Agreement (if land is not owned by the association).