Principal Place of Residence Land Tax exemption can still apply to you if you own less than 25% of the residence, for the 2024 and 2025 land tax years
The 2023-2024 NSW State Budget announced changes to the Principal Place of Residence Land Tax Exemption (PPR Land Tax Exemption) in the Land Tax Management Act 1956 (NSW). These changes have been in effect from 1 February 2024.
So, what do the changes mean?
The changes now mean the PPR Land Tax Exemption can only be claimed if all of those who use and occupy the principal place of residence together own a minimum of 25%.
Previously, land was eligible for the PPR Land Tax Exemption where only one of multiple owners, occupies the property as a principal place of residence. This was applicable even if it was merely 1%. The changes announced in the 2023-2024 NSW State Budget now mean the PPR Land Tax Exemption will only be available to a person or persons occupying the property as their principal place of residence if they own an interest of at least 25% in that property.
What if I have already claimed the PPR Land Tax Exemption but I own less than 25%?
Transitional provisions are available for individuals who have already claimed the principal place of residence exemption from land tax but who own less than 25%. Under the transitional provisions, land owners can continue to claim the PPR Land Tax exemption for the 2024 and 2025 land tax years. The minimum 25% ownership requirement will then apply from the 2026 land tax year.
How do I claim the concession?
To access this concession, the land owner(s) must apply to Revenue NSW to access the transitional provisions. If you have not claimed the PPR Land Tax Exemption by 1 February 2024, but were entitled to it, you can access the transitional provisions by updating your land tax details via Revenue NSW online.
Anyone who purchases a property on or after 1 February 2024 and owns less than 25% interest in the land that they occupy (or jointly with the other residents of the property), will not be entitled to the PPR Land Tax Exemption and can expect a land tax bill in connection with their ownership interest.
Revenue NSW is stringent when granting the PPR Land Tax Exemption. For assistance in understanding your land tax obligations, please contact our Head of Taxation and Superannuation, Stephen Lau.
