31 Jan Changes to Eligibility for Land Tax Exemption for Principal Place of Residence-updated
On 1 February 2024 changes introduced to the Land Tax Management Act (LTMA) 1956 become effective, changing the eligibility for principal place of residence exemption for landowners (PPR exemption).
If you own less than a 25% interest in the land, and you currently receive a PPR exemption, these changes will apply to you. Refer to Revenue NSW for further information.
Previously, there was no restriction on the percentage of ownership required by a landowner to claim the principal place of residence. Where there were multiple landowners and only one of the owners occupies the property as their principal place of residence, the land tax exemption applied even if the occupier only held a 1% interest in the land.
The changes do not apply to home buyers who are participants in a shared equity scheme that is approved by the Chief Commissioner under section 281 of the Duties Act.
If you believe you may be affected by this change, or wish to make an appointment with one of our Solicitors, please contact us on 02 8525 2700, or click here to request an appointment with one of our Property Team who can provide advice as to your position and your options if you are affected.
Please note the information in the article is correct at the time of writing.