Currently in New South Wales, there is an exemption from land tax for land that you use and occupy as your principal place of residence (your home). There are some conditions, including that the exemption only applies to natural persons (not companies or trusts) and only one claim for the exemption can be made per family, worldwide.
From 1 February 2024, the principal place of residence exemption will only be available to people who occupy the property and own an interest of at least 25% of their residence, either solely or combined as a family.
A transitional provision will apply for people who currently own less than 25% interest in the land to claim the exemption for the 2024 and 2025 land tax years. To take advantage of the transitional provision, you must claim the principal place of residence exemption by 31 January 2024. The minimum 25% ownership requirement will then apply from the 2026 land tax year onwards.
People who purchase a property on or after 1 February 2024 and own less than 25% interest will be liable from the 2025 land tax year onwards.
If you own less than 25% interest in your home, you should ensure you claim the principal place of residence land tax exemption from Revenue NSW by 31 January 2024 in order to avoid a land tax bill for the 2024 and 2025 land tax years. You can apply for the exemption online at www.revenue.nsw.gov.au. If you need assistance, please call Cheney Suthers on 6362 5433.
