Australia: Updated guide on principal place of residence land tax exemption (New South Wales)
The tax authority updated its guide on applying for a principal place of residence land tax exemption.
The tax authority of New South Wales (NSW) updated its guide on applying for a principal place of residence land tax exemption.
The update comes following the state’s amendments to Schedule 1A of the Land Tax Management Act 1956 in the 2023-2024 NSW State Budget, which introduces a minimum 25% ownership of a principal place of residence requirement from 1 February 2024.
The guide provides that those who claim the exemption but own less than a 25% interest in the land may continue to claim it for the 2024 and 2025 land tax years. The minimum 25% ownership requirement will then apply to these owners from the 2026 land tax year onwards.
The exemption must be claimed by 31 January 2024 for the transitional provisions to apply. Thus, those who purchase a property on or after 1 February 2024 and own less than a 25% interest in the land will not be entitled to the principal place of residence transitional provisions, making them liable from the 2025 land tax year.