Principal residence land

​​​​​​​​​​​​​​​​​The principal residence land (PRL) 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.

Refer to the Land tax treatment of residential land factsheet​ for additional information.

​Eligibility

The below categories may be eligible to be classified as a principal residence land.​ 

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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.

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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.

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A person's main place of residence is the place they spend the majority of their time. It is 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.​

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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 land tax.  ​

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If you​ conduct a qualifying home business, you may still qualify for principal residence land classification for the entire property. This does not apply if you are renting part of your property to a tenant. 

Refer to the Qualifying home business concession guideline for more information.​​

​Land owned by a home-unit company can be classified as principal residence land to the extent that the flats situated on the land are used as the principal residence of shareholders of the company. 

The proportion of the land not being used as shareholders’ principal residence will attract land tax. For more information about home-unit companies refer to theLand Tax Act 2000 or email us. You will be asked to provide specific information about the different usages and percentages of the property. ​​​​​

Where land is subject to fire, flood or a similar disaster, the owner may apply for a principal residence land classification for up to two financial years following the disaster, even if the property is not being used as their principal place of residence.  

If the extension is granted, the owner of the principal residence land is not entitled to have any other land classified as principal residence land during the period of the extension.​

​​​How to apply

To apply for the principal residence land classification:

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.

Vacant land built on during the financial year rebate​​

New home builders may be eligible for a Vacant land built on during the financial year 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.​


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