Changes to the Land Tax Act 1936

There have been numerous amendments to the Land Tax Act 1936 which have been outlined below. 
The expansion of the land tax exemption for land held by sporting and racing associations


Currently where land owned by sporting or racing associations that is used for non-sporting or non-racing activities is not exempt from land tax. 

The Government has announced that it will expand the scope of the land tax exemptions available to include all non-residential and non-vacant land from 1 July 2016. Please note, land held by a sporting or racing association that constitutes residential or vacant land will continue to be subject to land tax. 

An amendment to Section 4(1)(j) of the Land Tax Act 1936  

Land owned by an association established for a charitable, educational, benevolent, religious or philanthropic purpose is generally exempt from land tax.

The current provisions require that the owner of the land be established for charitable purposes, including where the land is held by a trustee on behalf of a charitable purposes trust, the trustee must also be established for charitable purposes. In some cases this can result in a trustee that owns land on behalf of a charitable purposes trust not satisfying the criteria in Section 4(1)(j) of the Land Tax Act 1936. 

The Government has announced that it will amend Section 4(1)(j) of the Land Tax Act 1936 to ensure that all trustees that hold eligible land as trustee of an eligible trust qualify for this land tax exemption.

The expansion of the land tax principal place of residence exemption

Currently, where a person moves out of their principal place of residence (PPR) to substantially renovate or rebuild their home, the site (land) may become liable for land tax. 

The Government has announced that, from the 2016-17 financial year, it will expand the PPR exemption criteria to provide individuals with the ability to maintain a PPR on the site being redeveloped for up to two financial years. 

The exemption may also extend to situations where a taxpayer purchases a property, whether vacant land or other unoccupied property, with the intention to renovate or construct what will become their PPR.