If the property is jointly owned by 2 or more people, only one of them needs to meet the principal place of residence criteria.

However, if the owner residing in the home upon the land has less than a 50% ownership interest in the land (in other words, they have a minor interest in the property), the land is not eligible for an exemption if:

• their interest is less than 5% and the Commissioner of State Taxation cannot be satisfied that the interest was created for a purpose unrelated to reducing the land tax payable on the land.
• their interest is between 5% and 50% and the Commissioner of State Taxation forms the opinion that the interest was created for a purpose related to reducing the land tax payable on the land.

Exemptions for joint owners of more than one property

Owning two properties jointly with another person does not automatically entitle both owners to exemptions on both properties.

For a principal place of residence exemption to apply, each property must be the primary residence of at least one of the owners.

Example 1 - Megan and Sara

Megan and Sara are sisters who jointly own 2 homes. Megan lives in one home as her principal place of residence and Sara lives in the other as hers.

Assuming all exemption criteria are met, an exemption may apply on both properties, as each is occupied by at least one owner as their principal place of residence.

Example 2 - Deb and Terry

Deb and Terry are married and jointly own a home and a holiday house. They live in the home as their principal place of residence, and use their holiday home frequently.

Assuming all exemption criteria are met, an exemption may apply on their home as it is the principal place of residence of both of the owners.

The holiday house will not be eligible for the principal place of residence exemption as it is not the primary residence of either of the owners.

The principal place of residence typically only applies to the property you live in at the beginning of the relevant financial year.

If you’ve recently bought a new home that you intend to occupy as your principal place of residence and haven’t yet sold your previous principal place of residence, you might be able to get an exemption for one property and a waiver of land tax for the other, depending on your situation.

Situation 1 - You are still living in your old home on 30 June

Your old home will receive an exemption from land tax for the relevant financial year, as that was your principal place of residence at the beginning of that financial year.

The new home will not be eligible for an exemption from land tax for that year because you were not residing in it at the beginning of that financial year, but it may be eligible for a waiver of land tax for that financial year if:

• You sell your old home within that financial year, and
• Your old home was not rented out at any time between the date you moved out and the date it was sold, and
• Your new home was not rented out at any time during the financial year.

The new home may qualify for a land tax exemption in future years, provided it continues to be your principal place of residence and all other eligibility criteria are met.

Scenario 2 - You have already moved into the new home by 30 June

Your new home will receive a land tax exemption for the relevant financial year, as that was your principal place of residence at the beginning of that financial year.

This exemption will continue in future financial years, as long as you continue to meet all the exemption criteria.

The old home will not be eligible for a land tax exemption because you were not residing in it at the beginning of that financial year, but it may be eligible for a waiver of land tax for that financial year if:

• You sell your old home within that financial year, and
• It was not rented out at any time between the date you moved out and the date it was sold.

If you purchased a property that was liable for land tax under the previous ownership (for example, if it was their investment property), you may have paid a share of that land tax at settlement. In some cases, you may be eligible for a refund of the land tax you paid if:

• The property you purchased has become, or will become, your principal place of residence, and
• You have not rented out any part of the property between the date of settlement and the date you move in, and
• If you owned a previous principal place of residence, you sell that property before the end of the financial year in which you purchased the property.

As part of the application process for an exemption, you will need to supply a copy of your settlement statement showing the land tax paid.

Important: You may not receive a refund for the full amount you paid. The refund will be the lesser of:

• The actual amount you paid to the vendor at settlement for land tax, or
• A proportion of the land tax that would have been payable for the financial year if the vendor only owned that one property (this is called the single holding amount), calculated based on the number of days from settlement to the end of that financial year (using a 365-day year, even in a leap year).

If your home has been destroyed or rendered uninhabitable by an occurrence for which you were not responsible, or as a result of an accident, you may be eligible for an exemption from land tax for up to 3 financial years while you repair or rebuild.

You must have been living in the home as your principal place of residence immediately before the building was destroyed or rendered uninhabitable.

As part of the application process for an exemption, you will need to provide an insurance report or other similar documentation stating that the home has been destroyed or rendered uninhabitable by an occurrence for which you were not responsible and contracts to show that you are repairing or rebuilding the home.

Timeframe

• It must be your intention to occupy the home as your principal place of residence once building work is complete.
• You must intend to repair or rebuild the building within 3 years from the date on which your home was destroyed or rendered uninhabitable.
• The exemption expires if the repair or rebuilding is not completed within 3 years from the date the home was destroyed or rendered uninhabitable, and the property may then become liable for land tax.

Building type

• The building that was destroyed or rendered uninhabitable must have been predominately residential in character.
• The building following repair or rebuild must also be residential in character.
• The design, use and functionality of a building will determine if a building is residential in character. Caravans and tents are not considered buildings for the purposes of this exemption.

Residency during the repairs or rebuild

• If you move into another home that you own while the repairs or rebuilding occurs, you can choose which property the exemption will be applied to (either the home being repaired/rebuilt or the home in which you are currently living).
• If you are renting or residing in a property which you do not own or partly own, the exemption will apply to the home being repaired or rebuilt.

If the occupier of the property is not the registered owner on the Certificate of Title, an exemption may still apply in any of the following situations, where the home is:

• Owned by the trustee of a Special Disability Trust and occupied by the primary beneficiary of the trust as their principal place of residence
• Owned by a home unit company and occupied by a shareholder (in their allocated unit) as their principal place of residence
• Occupied by the holder of a life interest (not being a lessee) as their principal place of residence.

All other exemption criteria must apply.

You may be eligible for a full or partial exemption from land tax if you use a portion of the land:

• for business or commercial purposes (excluding primary production)
• as a motel, hotel, serviced apartment or similar accommodation

Used for business or commercial purposes

Eligibility depends on how much of the total floor area of all buildings on the land (including sheds, garages and similar structures) is used for business or commercial purposes.

• Less than 25% is used: a full exemption will apply.
• Between 25% and 75% is used: a partial exemption will apply.
• More than 75% is used: no exemption is available.

Partial exemption scale:

Hotels, Motels, or Serviced Apartments

If you live in the property as your principal place of residence and also operate part of it as a hotel, a motel, serviced apartments or similar accommodation, you may still qualify for a full or partial exemption.

The portion of the property used for accommodation is treated as business or commercial use, and the same exemption scale above applies.

The property must be owned by a natural person to qualify for the principal place of residence exemption.

If the property is owned by a company, the exemption does not apply, even if the property is occupied by a director or shareholder of the company.

If the property is jointly owned by a natural person and a company, an exemption may apply, provided the natural person:

• lives in the home as their principal place of residence, and
• meets all other exemption criteria.

The natural person will not be eligible for an exemption if:

• they hold 5% or less of the property or
• they hold between 5% and 50%, and the Commissioner of State Taxation has disregarded their interest on the basis that it was created to reduce land tax.

If the property is occupied as the principal place of residence by at least one person entitled to ownership pursuant to the Will or under the laws of intestacy (a beneficial owner), a residential exemption may apply if all other criteria are met.

In this case, you do not need to apply for relief, but you will need to apply for a principal place of residence exemption. You will also need to provide a copy of the Will and grant of probate that evidence that the person has been granted a life interest in the property.

If an owner moves into a residential care facility on a temporary basis and subsequently returns to their principal place of residence, the exemption will continue so long as:

• the owner returns to live in the home within 12 months, and
• no rental income was generated from the property in their absence.

Residential care is defined in the Aged Care Act 1997 (Cwlth) as follows:

Residential care is either personal care or nursing care or both, that is provided to a person in a residential facility in which the person is also provided with accommodation that includes:

• appropriate staffing to meet the nursing and personal care needs of the person;
• meals and cleaning services;
• furnishings, furniture and equipment for the provision of that care and accommodation; and
• meets any other requirements specified.

Residential care does not include any of the following:

• Care provided to a person in the person’s private home
• Care provided in a hospital or in a psychiatric facility
• Care provided in a facility that primarily provides care to people who are not frail and aged
• Care that is specified not to be residential care.

Approved providers

An approved provider can be a person or body as long as it is approved under the Aged Care Act 1997 (Cwlth).  This includes facilities operated by the State of South Australia or local government authority.