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.

Eligibility criteria

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.  50 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.

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.

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.  

What is adjoining land?

• The adjoining land must be on a separate title held by the owner of the principal residence land.

• There is no dwelling on the adjoining land which is used as a place of residence.
• The land is used in conjunction with the principal residence land.
• The owner of the adjoining land does not receive an income from the use of the adjoining land.
• The owner of at least a 50 percent interest in the principal residence land is also 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 new home. The owner must not have owned another property classified as principal residence land as at 1 July that year.