LAND TAX ASSESSMENT ACT 2002 - SECT 27A

LAND TAX ASSESSMENT ACT 2002 - SECT 27A

27A .         Construction or refurbishment of second private residence, 2 year exemption for

        (1)         Private residential property is exempt for 2 consecutive assessment years if —

            (a)         at midnight on 30 June immediately before the first assessment year, the owner owned that property and another private residential property that the owner had acquired before that property; and

            (b)         the property the owner acquired first is exempt for the first assessment year because of its use by an individual at midnight on 30 June in the previous financial year as the individual’s primary residence; and

            (c)         the property the owner acquired second would have been exempt for the first assessment year if, at midnight on 30 June in the previous financial year, the individual had used that property as the individual’s primary residence instead of the property acquired first; and

            (d)         the property acquired second was acquired in the previous financial year; and

            (e)         the commencement date for the construction or refurbishment of the private residence that forms part of the property acquired second —

                  (i)         is in the first assessment year; or

                  (ii)         is in the previous financial year and part of the construction or refurbishment is carried out in the first assessment year;

                and

            (f)         the completion date for the construction or refurbishment of the private residence that forms part of the property acquired second is in the second assessment year; and

            (g)         in the case of the refurbishment of the private residence that forms part of the property acquired second — at midnight on 30 June immediately before the first assessment year, the private residence was unoccupied, but only because the individual had not taken up occupation to enable the private residence to be refurbished; and

            (h)         the individual is the first occupant of the private residence that forms part of the property acquired second since its construction or refurbishment; and

                  (i)         the individual uses the private residence that forms part of the property acquired second as their primary residence during the second assessment year; and

            (j)         by the end of the second assessment year, the owner —

                  (i)         has sold or otherwise disposed of the property acquired first; and

                  (ii)         has delivered possession of that property to the new owner.

        (2)         However, the property acquired second is not exempt if, while the owner owned both properties, the owner or any other person derived income from the property that was not being used as the individual’s primary residence.

        (3)         The owner may apply for the exemption in the approved form after the commencement date for the construction or refurbishment.

        (4)         The Commissioner may require the owner to notify the Commissioner in the approved form of —

            (a)         the completion date for the construction or refurbishment; and

            (b)         when the individual occupies the property acquired second; and

            (c)         when the disposal and delivery of possession of the property acquired first occurs.

        (5)         The Commissioner is to make any reassessment necessary to give effect to this section.

        [Section 27A inserted: No. 31 of 2006 s. 23; amended: No. 29 of 2012 s. 15; No. 42 of 2022 s. 19; No. 9 of 2024 s. 5.]