Queensland Consolidated Acts Queensland Consolidated Acts(1) This section applies if--
(a) land is used as the principal place of residence of a person (the principal resident) in relation to a financial year; and
(b) the commissioner is satisfied that, on 30 June immediately preceding the financial year, the land was also being used for a purpose (a non-PPR purpose) other than as the principal resident's principal place of residence.
(2) For deciding if the land is exempt from taxation under this Act or working out the allowable PPR deduction, the commissioner must decide whether the non-PPR purpose is a substantial non-PPR purpose, having regard to each of the following factors--
(a) whether a person other than the principal resident has been given a right to occupy any part of the land under a tenancy agreement;
(b) whether a person, other than the principal resident or a member of the principal resident's family who uses the land as his or her principal place of residence, carries out work on the land as an employee or contractor, other than work related to the land itself or a building situated on the land;
(c) the extent to which a person uses the land, or has set the land aside for use, for a non-PPR purpose;
Examples--
1 Two rooms of a house on the land are set aside for a hairdressing business.
2 A shed on the land is used for a repair business.
3 A retail shop is operated at the front of a house on the land.
(d) whether the gross income generated during the most recently ended financial year from business or an income producing activity on the land is more than--
(i) an amount prescribed under a regulation; or
(ii) if no amount is prescribed under a regulation--$30 000;
(e) any other relevant matter.
(3) However, the commissioner must decide the non-PPR purpose is not a substantial non-PPR purpose if the only relevant factors are 1 or more of the following--
(a) there is not more than 1 allowable letting for the land;
(b) a person who resides on the land carries out work on the land, other than excluded work, as an employee under an arrangement with the person's employer.
(4) In this section--
allowable letting means a person (the occupant) other than the principal resident has been given the right to occupy an allowable residential area on the land under a tenancy agreement, if--
(a) the area is used by the occupant for residential purposes; and
(b) the occupant has not given the right to occupy any part of the area to another person under a tenancy agreement; and
(c) the rent payable for the area is not more than the market rent for the area.
allowable residential area means a residential area that is not more than the prescribed area, except a residential area that--
(a) is 1 of 3 or more flats in a building; and
(b) is not used for residential purposes by the principal resident.
excluded work means work involving use of the land for a purpose for which, or in a manner in which, residential land is not ordinarily used.
Example of work that would be excluded work--
manufacturing work carried out in a shed
Example of work that would not be excluded work--
office work carried out under a telecommuting arrangement in a home study
prescribed area means--
(a) the area prescribed under a regulation; or
(b) if no area is prescribed under a regulation--28m2.