Land used as the owner’s primary residence at 30 June is exempt from land tax.
You may be exempt from land tax for two consecutive assessment years for two properties that are owned in transitional circumstances at midnight 30 June if:
- the second property consists of a new home under construction or a residence under refurbishment and
- the owner occupies the property as their primary residence once the construction or refurbishment is completed.
The second property will be exempt from land tax for two consecutive years if:
- the property acquired first is occupied as the owner’s primary residence while the second residence is being refurbished/constructed. This residence must be sold and delivered to the purchaser prior to 30 June of the second assessment year.
- the property acquired second is under refurbishment or construction, and has been acquired in the financial year immediately before the first assessment year. The construction or refurbishment of this residence must
- have commenced or be carried out in the first assessment year, or commence in the previous financial year and continue in the first assessment year and
- be completed and occupied as the owner’s primary residence in the second assessment year
- no income was derived from either property while not occupied as the owner’s primary residence.
If an exemption is provisionally allowed and any of the conditions are not subsequently met, the exemption will be disallowed and an exemption applied solely to the owner’s primary residence.
Submit the application form below after you have commenced construction or refurbishment.
See the Land Tax Exemptions - Private Residences fact sheet.
You will need to complete and lodge the confirmation form after you've occupied the second property and the first property has been sold/delivered to the purchaser.
Extending the exemption
If you commenced construction between 1 July 2020 and 30 June 2023
If you entered into an initial building contract (or for an owner builder, if the building permit was granted) between 1 July 2020 and 30 June 2023, you must:
- complete construction of the second property in a financial year following the second assessment year and
- use the second property as your primary residence in the financial year following the assessment year and
- sell the first property and deliver it to the purchaser before the end of the financial year following the assessment year in which the second property is completed.
The Commissioner may exempt a third assessment year if there was a delay in completing construction which was beyond the owner’s control. Submit a web enquiry with your request for an extension and evidence of the reasons for the delay.
