Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 54

Principal place of residence exemption

54. Principal place of residence exemption



(1) Subject to this Division, the following land is exempt land-

   (a)  land owned by a natural person that is used and occupied as the
        principal place of residence of that person;

   (ab) land owned by a person that is used and occupied as the principal
        place of residence of a natural person who has a right to reside on
        that land;

   (b)  land owned by a trustee of a trust that is used and occupied as the
        principal place of residence of a natural person who is a beneficiary
        of the trust.

(1A) Despite subsection (1)(ab), land referred to in that subsection is not
exempt land unless-

   (a)  immediately before the natural person who has a right to reside on the
        land was granted the right, the land was exempt land under section
        54(1)(a) or (b); and

   (b)  that person is not entitled to-

   (i)  an exemption under this Part in respect of any land; or

   (ii) an exemption from land tax under a law of any other State or Territory
        that corresponds to this Part.

(2) Subject to section 55, subsection (1)(a) or (b) only applies if the land
has been used and occupied as the principal place of residence of the owner or
beneficiary-

   (a)  since 1 July in the year preceding the tax year; or



   (b)  if the owner or trustee became the owner of the land on or after 1
        July in the year preceding the tax year, since a later date during
        that year.

(3) In addition to land of an owner that is used and occupied as a person's
principal place of residence (the PPR land), land is also exempt land if it is
owned by that owner and-

   (a)  is contiguous with the PPR land or separated from the PPR land only by
        a road or railway or other similar area across or around which
        movement is reasonably possible; and

   (b)  enhances the PPR land; and

   (c)  is used solely for the private benefit and enjoyment of the person who
        uses and occupies the PPR land and has been so used-

   (i)  since 1 July in the year preceding the tax year; or

   (ii) if the owner or trustee became the owner of the land on or after 1
        July in the year preceding the tax year, so used and occupied since a
        later date during that year.

(4) This section applies to land whether owned by a sole owner or joint
owners.