What is Principal residence land classification?
The Principal Residence Land classification may be
applied to land on which an owner of at least a 50 per cent or more
interest in the land or related person (as defined by the Land Tax Act 2000), resides.
The property must be occupied and used by the owner/related person as their
main place of residence as at 1 July of each financial year. The applicant
cannot apply for the Principal Residence Land classification until after they
have commenced residing at the property.
a. Person other than owner residing at the property
Where a related person to the owner, as defined in the Land Tax Act 2000
, resides at the property, principal residence classification may apply. Common examples of related person include a beneficiary of the estate of a deceased owner or a spouse or former spouse of an owner. If your status as a 'related person' does not fit with any of the related person definitions in the Land Tax Act 2000,
you are not eligible to claim this property as your principal residence.
b. Fifty percent or more ownership
For land to be the owner's main place of residence the
property must be the place where the owner of at least a 50 per cent interest
in the land ordinarily eats and sleeps. An owner can be a single person or
multiple people in combination for the purpose of meeting this criterion. If
the residents of the property own less than 50 percent of the property, the
property is not eligible for the classification.
main place of residence
A person's main place of residence is the place they
spend the majority of their time - the main place where that person routinely
eats and sleeps. One property only can be considered your principal residence
unless you have adjoining land. Leaving personal possessions at a property or
using it as a weekend home does not typically qualify the property for the
principal residence land classification.
Main place of residence as at 1 July of each financial year
For the Principal Residence Land classification to be
applied to the property an owner or related person must have been residing
there as at 1 July of that financial year. There are no pro-rata provisions for
What is adjoining land?
In some circumstances land
adjoining your PRL can also receive the classification. To qualify:
the adjoining land must be on a separate title held by the owner of the principal residence land;
there must not be a dwelling on the adjoining land which is used as a place of residence;
the land must be used in conjunction with the principal residence land;
the owner of the adjoining land must not receive an income from the use of the adjoining land; and
the owner of at least a 50 percent interest in the principal residence land must also be the owner of at least 50 percent interest in the adjoining land.
What is the New Home Builder's Rebate?
New home builders may be eligible for a rebate on the current
year's land tax where they qualify for Principal Residence Land classification
on their newly built home. The owner must not have owned another property
classified as principal residence land as at 1 July that year.