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 and residential land factsheet for additional information.
The below categories may be eligible to be classified as a principal residence land.
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 theLand Tax Act 2000,
you are not eligible to claim this property as your principal residence.
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.
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.
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.
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 Home business concession guideline for more information.
If you are renting out any part of your property, even if it is your principal residence land, land tax may be payable depending on the taxable value of the portion of land being rented.
If you rent out part of the property, that you use as your principal residence land,
email us. You will be asked to provide specific information to enable the taxable portion of your property to be accurately calculated.
Refer to the
Land tax and residential land factsheet for more information.
Land owned by a company may be granted a principal residence land classification if the land is used as the principal residence of a person or persons who own at least 50 per cent of the shares in the company.
The principal residence land classification will only be applied if the shareholder does not own any other principal residence land as at 1 July.
Land held in trust may be granted a principal residence land classification if a beneficiary of the trust resides at the property as their principal residence and the land is held by:
- a registered trustee company;
- an executor, administrator, guardian, committee, receiver or liquidator;
- a trustee appointed by a court;
- a trustee of a special disability trust (see the
Special disability trust guideline); or
- a trustee of a fixed trust in which:
- all of the beneficiaries are individually named or are descendants of individually named beneficiaries; and
- the beneficiary would be entitled, on the winding up of the trust, to 50 per cent or more of the value of the income and capital of the trust.
The principal residence land classification will only be applied if the beneficiary does not own any other principal residence land as at 1 July.
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 the Land 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.
From 1 July 2017, a principal residence land classification may remain on the property on 1 July of the financial year following a sole owner’s death providing the property:
- was classified as principal residence land on 1 July of the year of the owner’s death; and
- all or part of the property has not been sold or not been transferred to another person other than the personal representative of the deceased person.
How to apply
To apply for the principal residence land classification:
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.