Land Tax Management Act 1956 No 26

An Act to make provision relating to the imposition, assessment and collection of a land tax upon unimproved values of certain lands; to repeal the Land and Income Tax Assessment Act of 1895 and certain other Acts; to amend the Landlord and Tenant (Amendment) Act 1948 , as amended; and for purposes connected therewith.

(1) This Act may be cited as the Land Tax Management Act 1956 .

(2) (Repealed)

This Act shall be read and construed subject to the Commonwealth of Australia Constitution Act , and so as not to exceed the legislative power of the State to the intent that where any provision of this Act, or the application thereof to any person or circumstance is held invalid, the remainder of this Act, and the application of such provision to other persons or circumstances shall not be affected.

(1) In this Act, unless the context or subject-matter otherwise indicates or requires—

Agent includes every person who in the State, for or on behalf of any person out of the State (in this definition termed “the principal”) has the control or disposal of any land belonging to the principal, or the control, receipt, or disposal of any rents, issues, or proceeds derived from any such land.

assessment means an assessment or reassessment by the Chief Commissioner under Part 3 of the Taxation Administration Act 1996 .

Chief Commissioner means the Chief Commissioner of State Revenue referred to in section 60 of the Taxation Administration Act 1996 .

flat means a room or a suite of rooms (whether or not forming part of a building or a detached building)—

(b) so constructed, designed or adapted as to be capable of being used or occupied as a separate dwelling.

Joint owners means persons who own land jointly or in common, whether as partners or otherwise, and includes persons who have a life or greater interest in shares of the income from the land and persons who by virtue of this Act are deemed to be joint owners.

Mortgage includes any charge whatever upon land, or interest therein, howsoever created, for the securing of money.

(a) in relation to land, every person who jointly or severally, whether at law or in equity—

(ii) is entitled to receive, or is in receipt of, or if the land were let to a tenant would be entitled to receive, the rents and profits thereof, whether as beneficial owner, trustee, mortgagee in possession, or otherwise,

(b) (Repealed)

(c) in relation to any leasehold estate in land, whether legal or equitable (other than under any lease to which section 21C or 21D applies), a person, or a person who is a member of a class or description of persons, prescribed for the purposes of this paragraph, and

(d) a person who, by virtue of this Act, is deemed to be the owner.

Planning instrument means an environmental planning instrument, within the meaning of the Environmental Planning and Assessment Act 1979 , and includes a deemed environmental planning instrument within the meaning of that Act.

principal place of residence of a person means the one place of residence that is, among the one or more places of residence of the person within and outside Australia, the principal place of residence of the person.

Public authority means a person or body declared by the regulations to be a public authority for the purposes of this Act.

(a) a documentary record, or

(b) a record made by an electronic, electromagnetic, photographic or optical process, or

(c) any other kind of record.

Register means the Register of Land Values kept under section 14CC of the Valuation of Land Act 1916 .

(a) forms part of a building comprising two or more flats, and

(b) is used and occupied as a principal place of residence, and for no other purpose, by a person who is a joint owner (otherwise than as a trustee) of the parcel of land on which the building is erected and who has entered into an arrangement with the other joint owners of that land under which the person has the exclusive right to occupy that flat (whether jointly with one or more of the co-owners or not).

Tax year or Land tax year means a period of 12 months starting on 1 January for which land tax is leviable and payable.

Trustee , in addition to every person appointed or constituted trustee by act of parties by order or declaration of a court or by operation of law, includes—

(a) an executor or administrator, guardian, committee, receiver, or liquidator, and

(b) every person having or taking upon himself or herself the administration or control of land affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of the land of a person under any legal or other disability.

Trustee company means a trustee company within the meaning of the Trustee Companies Act 1964 or the NSW Trustee and Guardian.

unit trust means a trust in respect of which the beneficiaries of the trust are owners of units in the trust and each unit holder, or each unit holder of a particular class—

(a) is entitled, as a beneficiary of the trust, to participate in any income or capital distributions (or both) of the trust, and

(b) the amount or proportion of any income or capital distribution to which the unit holder is entitled is based on the number or class of units owned by the person (or both).

The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.

(2) For the purposes of the definition of Residential unit in subsection (1) a flat used and occupied as the person’s principal place of residence by a person referred to in the definition does not cease to be used and occupied by that person as the person’s principal place of residence and for no other purpose by reason of the occupation under lease or licence for residential purposes of not more than one room in the flat.

(2A) (Repealed)

(3) For the purposes of the definition of flat in subsection (1), a building, or part of a building, used and occupied for residential purposes does not cease to be considered to be used and occupied as a separate dwelling merely because the building, or part of the building, is used for the purpose of another residential occupancy, if that residential occupancy may be disregarded for the purposes of the principal place of residence exemption under Schedule 1A.

(4) Notes included in this Act do not form part of this Act.

(5) (Repealed)

s 3: Am 1969 No 69, sec 2 (a); 1973 No 70, sec 5 (a); 1975 No 97, Sch 2; 1981 No 119, Sch 1; 1983 No 14, Sch 1 (1); 1983 No 171, Sch 1 (1); 1985 No 147, Sch 1 (1); 1985 No 215, Sch 1 (1); 1985 No 223, Sch 1 (1); 1986 No 205, Sch 2; 1987 No 88, Sch 1 (1); 1988 No 128, Sch 1 (2); 1989 No 135, Sch 1; 1989 No 222, Sch 1 (1); 1990 No 35, Sch 1 (1); 1990 No 88, Sch 1 (1)–(3); 1990 No 112, Sch 2; 1991 No 47, Sch 1 (13) (17); 1992 No 84, Sch 1 (1); 1994 No 48, Sch 5 (5); 1995 No 11, Sch 1.71 [1]; 1996 No 98, Sch 1.3 [1] [2]; 1996 No 125, Sch 4.2 [1]; 1997 No 41, Sch 2 [1] [2]; 1997 No 109, Sch 1.3; 1998 No 54, Sch 2.21; 1998 No 79, Sch 2.3 [1]; 1999 No 52, Sch 2.1 [1]; 2000 No 105, Sch 3 [1]; 2000 No 106, Sch 3 [1]; 2002 No 108, Sch 2.2 [1]–[4]; 2003 No 80, Sch 4 [1]; 2004 No 33, Schs 2.2 [1]–[3], 3.2 [1]; 2005 No 111, Sch 4 [1]; 2008 No 67, Sch 4 [1]–[4]; 2009 No 49, Sch 2.33; 2014 No 19, Sch 2 [1]; 2017 No 11, Sch 2 [1]; 2017 No 65, Sch 2.17 [1].

(1) For the purposes of this Act, a trust is a special trust if—

(b) the trustee of the trust is the owner of the legal estate in the land, and

(c) the trust is not a fixed trust.

(2) For the purposes of this section, a trust is a fixed trust if the equitable estate in all of the land that is the subject of the trust is owned by a person or persons who are owners of the land for land tax purposes (disregarding section 25 (3)).

(3) For the purpose of determining whether a trust is a fixed trust under this section, any equitable interest of the trustee as trustee of the trust is to be disregarded.

(3A) If a trust satisfies the relevant criteria, the persons who are beneficiaries of the trust under the trust deed are taken to be owners of an equitable estate in the land that is the subject of the trust and, accordingly, the trust is taken to be a fixed trust.

Under section 25, owners of an equitable estate or interest in land are liable in respect of land tax as if they were legal owners of the land. Owners of an equitable estate in land are treated as secondary taxpayers.

(3B) For the purposes of this section, the relevant criteria are as follows—

(i) are presently entitled to the income of the trust, subject only to payment of proper expenses by and of the trustee relating to the administration of the trust, and

(ii) are presently entitled to the capital of the trust, and may require the trustee to wind up the trust and distribute the trust property or the net proceeds of the trust property,

(b) the entitlements referred to in paragraph (a) cannot be removed, restricted or otherwise affected by the exercise of any discretion, or by a failure to exercise any discretion, conferred on a person by the trust deed,

(c) if the trust is a unit trust—

(ii) the proportion of trust capital to which a unit holder is entitled on a winding up or surrender of units must be fixed and must be the same as the proportion of income of the trust to which the unit holder is entitled.

(4) A trust is not a special trust —

(b) if clause 9 of Schedule 1A applies in respect of the land that is the subject of the trust, or

(c) if the trust is a concessional trust, or

(d) in relation to any land tax year in which it is a superannuation trust, or

(e) if the trust is established by will, but only during the period ending on the expiration of 2 years after the date of death of the testator, or

(f) in relation to any land tax year in which it is a family unit trust, as provided by Schedule 1AA.

(5) For the purposes of this section, a trust is a superannuation trust in relation to a land tax year if—

(a) the trust was established on or before 30 June in the year before that land tax year and, in relation to the year of income ending in that year, the trust is—

(i) a complying superannuation fund (within the meaning of section 42 or 42A of the Commonwealth Act), or

(ii) a complying approved deposit fund (within the meaning of section 43 of the Commonwealth Act), or

(iii) a pooled superannuation trust (within the meaning of section 44 of the Commonwealth Act), or

(b) the trust was established after 30 June in the year before that land tax year and, as at midnight on 31 December in that year, the trust is—

(i) a regulated superannuation fund (within the meaning of the Commonwealth Act) or is taken to be a regulated superannuation fund under that Act, or

(ii) an approved deposit fund (within the meaning of the Commonwealth Act), or

(iii) a pooled superannuation trust (within the meaning of the Commonwealth Act).

(6) Despite anything to the contrary in this section, a trust is taken to be a special trust in relation to a land tax year if the trust is classified as a special trust in respect of that land tax year under section 25A, and the classification has effect in respect of that land tax year.

(7) In this section—

s 3A: Ins 1997 No 41, Sch 2 [3]. Subst 2002 No 108, Sch 2.2 [5]. Am 2003 No 80, Sch 4 [2]; 2005 No 111, Sch 4 [2]; 2006 No 87, Sch 2 [1]–[3]; 2010 No 118, Sch 3 [1]; 2012 No 20, Sch 2 [1]; 2014 No 19, Sch 2 [2].

(1) For the purposes of this Act, a trust is a concessional trust if—

(b) each person who is a beneficiary of the trust is—

(ii) a person in respect of whom a guardianship order is in force under the Guardianship Act 1987 , or

(iii) a person in the relevant group within the meaning of the Coroners Act 2009 .

(2) For the purposes of this section, a person is a beneficiary of a trust if the person is a person, or a member of a class of persons—

(a) in whose favour, by the terms of the trust, capital or income the subject of the trust may be applied—

(ii) in the event that a discretion conferred under the trust is not exercised, or

(b) entitled or permitted, under the terms of the trust, to use and occupy land that is the subject of the trust.

(3) For the purposes of this Act—

(a) a special disability trust (within the meaning of section 1209L of the Social Security Act 1991 of the Commonwealth or section 52ZZZW of the Veterans’ Entitlements Act 1986 of the Commonwealth) is taken to be a concessional trust, and

(b) the principal beneficiary of the special disability trust, as referred to in section 1209M of the Social Security Act 1991 of the Commonwealth or section 52ZZZWA of the Veterans’ Entitlements Act 1986 of the Commonwealth, is taken to be a beneficiary of the trust.

s 3B: Ins 2002 No 108, Sch 2.2 [5]. Am 2010 No 46, Sch 6 [1]; 2012 No 20, Sch 2 [2] [3]; 2014 No 41, Sch 5.6; 2022 No 35, Sch 2.6.

This Act is to be read together with the Taxation Administration Act 1996 which makes provision for the administration and enforcement of this Act and other taxation laws.

s 4: Subst 1983 No 14, Sch 1 (2). Am 1985 No 223, Sch 1 (2); 1987 No 88, Sch 1 (2); 1994 No 48, Sch 5 (13). Subst 1996 No 98, Sch 1.3 [3].

s 6: Am 1968 No 62, sec 2 (a); 1971 No 18, Sch, Part 1; 1983 No 14, Sch 1 (4); 1986 No 90, sec 2. Subst 1987 No 88, Sch 1 (3). Am 1987 No 209, Sch 43; 1992 No 57, Sch 1; 1992 No 112, Sch 1; 1994 No 48, Sch 12. Rep 1996 No 98, Sch 1.3 [3].

Land tax at such rates as may be fixed by any Act is to be levied and paid on the taxable value of all land situated in New South Wales which is owned by taxpayers (other than land which is exempt from taxation under this Act).

s 7: Am 1981 No 119, Sch 1; 1985 No 147, Sch 1 (2). Subst 1992 No 84, Sch 1 (2); 2006 No 50, Sch 3 [1].

Land tax shall be charged on land as owned at midnight on the thirty-first day of December immediately preceding the year for which the land tax is levied.

(1) Land tax is payable by the owner of land on the taxable value of all the land owned by that owner which is not exempt from taxation under this Act.

(2) The taxable value of that land is the total sum of the average value of each parcel of that land.

(3) The average value of a parcel of land is to be calculated, as provided for by section 9AA, on the basis of the land value of the land.

(4) The land value of land, in relation to a land tax year, is the value entered in the Register as the land value of the land as at 1 July in the previous year.

(5) The fact that there is no land value entered in the Register on 31 December in a year as the land value of the land as at 1 July in that year does not prevent land tax being levied and charged and becoming payable for any following tax year once that land value is entered in the Register and the average value is ascertained.

s 9: Am 1960 No 35, sec 2 (1) (a); 1961 No 32, sec 2; 1963 No 40, sec 2 (a); 1964 No 40, sec 2; 1965 No 33, First Sch (am GG No 120 of 4.11.1966, p 4516 (as on and from 14.2.1966)); 1967 No 59, sec 2 (1); 1968 No 62, sec 2 (b); 1969 No 69, sec 2 (b); 1970 No 64, sec 2 (a); 1971 No 48, sec 2 (a); 1972 No 75, sec 3; 1973 No 70, sec 4; 1975 No 97, Sch 3 (1); 1981 No 119, Sch 1; 1983 No 14, Sch 1 (5); 1983 No 171, Sch 1 (2); 1984 No 129, Sch 1 (1); 1985 No 147, Sch 1 (2); 1988 No 128, Sch 1 (3). Subst 1992 No 84, Sch 1 (3). Am 1997 No 37, Sch 3 [1]; 1998 No 79, Sch 2.3 [2]; 2000 No 106, Sch 3 [2]; 2006 No 50, Sch 3 [2].

(1) For the purposes of this Act, the average value of a parcel of land is the average of the land value of the land in relation to the year for which the average value is being ascertained (the current land tax year ) and the land value of the land in relation to the 2 preceding land tax years (the preceding land tax years ).

(2) If a land value adjustment is required in relation to a parcel in the current land tax year, the average value is to be determined before that land value adjustment is made (that is, on the basis of the land value without that land value adjustment) and, despite any other provision of this Act, the Valuation of Land Act 1916 or the Heritage Act 1977 , the land value adjustment is to be applied, for the purpose of assessing land tax, to the average value of the land for that land tax year (and not the land value).

(3) For the purposes of this section, a land value adjustment is—

(a) a land value reduction , being any reduction that is required to be made to the land value of land under this Act for the purpose of assessing land tax, or

(b) (Repealed)

(c) a special allowance , being any allowance made in respect of the land value of land under Division 3 or 4 of Part 1B of the Valuation of Land Act 1916 .

(4) In the case of a land value reduction, the land value adjustment is to be applied to the average value of land by applying any provision of this Act that specifies that the land value is to be reduced for the purpose of assessing land tax as if a reference to the land value of land were a reference to the average value of land.

For example, the reductions provided for by sections 9A, 9BA, 9C, 9D, 9E, 10 (2), (2A) and (2C), 10Q (4) and 10R (3) will now apply to the average value of the land in a land tax year and not to the land value of the land.

(5) (Repealed)

(6) In the case of a special allowance, the land value adjustment is to be applied to the average value of the land by deducting the allowance from the average value.

(7) If a parcel of land did not exist on 31 December immediately before either or both of the preceding land tax years, the average value of the land is taken to be—

(a) if the parcel did exist on 31 December immediately before one of the preceding land tax years—the average of the land value of the land in relation to the current land tax year and the land value of the land in relation to the preceding land tax year immediately before which it did exist, or

(b) in any other case—the land value of the land in relation to the current land tax year.

(8) Subsection (2) applies in relation to an average value determined as provided for by subsection (7) in the same way as it applies to an average value determined as provided for by subsection (1).

For example, if the newly created parcel qualifies for an allowance for subdivision under Division 4 of Part 1B of the Valuation of Land Act 1916 in the current land tax year, the allowance would be applied to the average value calculated as provided for by subsection (7).

(9) The average value of a parcel of land that is heritage-protected, and that was not heritage-protected on 31 December immediately before either or both of the preceding land tax years, is to be determined as provided for by subsection (7) (as if the parcel did not exist on the date or dates of 31 December on which it was not heritage-protected).

(10) If the land value of land in relation to a land tax year is altered (whether as a result of being reascertained or on objection or appeal or for the correction of a clerical error or misdescription), the average value of the land must be reascertained on the basis of the altered land value.

(11) If the average value of a parcel of land, after applying a land value adjustment, is less than zero, the average value of the parcel is taken to be zero.

(12) For the purposes of this section, land is heritage-protected if it is either heritage restricted (within the meaning of section 14G of the Valuation of Land Act 1916 ) or the subject of a heritage valuation under Division 6 of Part 6 of the Heritage Act 1977 , or both.

(1) This section applies to land if an unutilised value allowance (as ascertained under Division 3 of Part 7) is entered in the Register in respect of the land.

(2) For the purpose of assessing land tax, the land value of the land is to be reduced by the unutilised value allowance.

(3) However, if the land is sold or otherwise disposed of or it ceases to be used or occupied solely as the site of a single dwelling-house, a person whose liability to pay land tax in respect of the land has been assessed in accordance with this section must, within 1 month, inform the Chief Commissioner of the date on which the land was sold or otherwise disposed of or ceased to be so used or occupied.

(4) Liability for land tax in respect of the year in which the land is sold, disposed of, or ceases to be used or occupied solely as the site of a single dwelling-house, and in each of the preceding years (up to a maximum of 4 preceding years) in which the person’s liability to pay land tax was assessed in accordance with this section is to be reassessed as if subsection (2) had not applied to the land.

(5) For the purposes of section 9 (3) (c) of the Taxation Administration Act 1996 , any such reassessment is authorised to be made more than 5 years after the initial assessment.

(6) Any such re-assessment is not a relevant land tax assessment for the purposes of section 35 (1) (b) of the Valuation of Land Act 1916 if it is based on the same land value or average value on which the original land tax assessment was based (before the reduction was made under subsection (2) of this section).

(7) In this section, single dwelling-house has the same meaning as in Division 2 of Part 8 of Chapter 15 of the Local Government Act 1993 .

s 9A: Ins 1963 No 40, sec 2 (b). Am 1968 No 62, sec 2 (c); 1973 No 70, sec 3 (b); 1981 No 119, Sch 1; 1983 No 14, Sch 1 (5); 1985 No 147, Sch 1 (3); 1985 No 215, Sch 1 (2). Subst 1992 No 84, Sch 1 (4). Am 1995 No 11, Sch 1.71 [2]. Subst 2001 No 96, Sch 2.2 [1]. Am 2006 No 50, Sch 3 [4].

(1) Land tax, in the case of land subject to the Strata Schemes Development Act 2015 , is to be levied and paid in respect of each lot comprised in a parcel.

(2) For the purposes of this Act—

(a) the land value of a lot comprised in a parcel is an amount that bears to the land value of the parcel (within the meaning of section 9 (4)) the same proportion as the unit entitlement of the lot bears to the aggregate unit entitlement, and

(b) the average value of the lot is to be ascertained on the basis of the land value of the lot, as determined under paragraph (a).

(3) Expressions used in this section have the same meanings as in the Strata Schemes Development Act 2015 .

s 9B (previously s 9AA): Ins 1994 No 72, Sch 2 (1). Am 1996 No 139, Sch 2.20 [1] [1A] (am 1997 No 55, Sch 2.18 [1] [2]; 1997 No 147, Sch 2.27 [2]). Renumbered 2006 No 50, Sch 3 [5]. Am 2006 No 50, Sch 3 [6]; 2015 No 51, Sch 9.12 [1].

For the purpose of assessing land tax, the land value of land within a colliery holding (within the meaning of the Mining Act 1992 ) is to be reduced by the amount recorded in the Register in relation to each parcel as the amount by which the presence of coal in that parcel increases the value of that parcel.

(1) For the purpose of assessing land tax, the land value of mixed development land or mixed use land on which is situated a flat is to be reduced by the allowable proportion in relation to the flat.

(2) The allowable proportion for a flat is as determined in accordance with whichever of the following paragraphs is applicable in the particular case—

(a) if there is an apportionment factor entered in the Register in respect of that land value—the proportion determined in accordance with the following calculation—

(b) if paragraph (a) is not applicable—the proportion specified in an application for a reduction under this section as the fair and reasonable proportion of the land value of the land to be attributed to the flat, subject to subsections (2A) and (2AA).

(c) (Repealed)

(2A) If there is no apportionment factor entered in the Register in respect of the land value of the land, the Chief Commissioner may request the Valuer-General to determine the apportionment factor in respect of the land concerned.

(2AA) If a request is made under subsection (2A)—

(a) the Valuer-General must determine the apportionment factor concerned and enter it in the Register, and

(b) the allowable proportion for the flat must be determined in accordance with subsection (2) (a).

(2AB) Apportionment factors for the purposes of this section are to be ascertained in accordance with Division 5 or Division 5A of Part 1B of the Valuation of Land Act 1916 , as appropriate to the land concerned. If such an apportionment factor is expressed as a percentage, the apportionment factor is, for the purposes of this section, to be converted to a fraction.

Divisions 5 and 5A of Part 1B of the Valuation of Land Act 1916 allow objections to be made against the amount of an apportionment factor.

(2AC) (Repealed)

(3) The reduction under this section applies only if the following requirements are satisfied—

(a) the flat must be used and occupied by the owner of the land (or one of the owners) as his or her principal place of residence and for no other purpose, in which connection the use of the land for the purpose of one, but not more than one, residential occupancy other than that of the owner under lease or licence from the owner may be disregarded if it is an excluded residential occupancy (within the meaning of clause 4 of Schedule 1A),

(b) (Repealed)

(c) an owner of the land who occupies the flat must not be an owner merely because of being a trustee,

(d) (Repealed)

(e) the owner of the land must not be a company or company jointly with another person or other persons, except in either case a trustee company acting in its representative capacity.

(4) For the purposes of determining whether a flat has been used and occupied by an owner of land as his or her principal place of residence under subsection (3) (a), clauses 8, 9 and 10 of Schedule 1A apply in respect of the flat, and that part of the land on which the flat is situated, in the same way as they apply in respect of land under the principal place of residence exemption.

The effect of this provision is to deem a flat to be used and occupied by the owner of the land as a principal place of residence in certain circumstances, similar to the principal place of residence exemption. As a consequence, the land value of the mixed development land or mixed use land on which the flat is situated can be reduced by the allowable proportion under this section.

(5) Unless the land concerned is land to which subsection (2) (a) applies, there is to be no reduction under this section unless—

(a) application has been made for the reduction by all the owners of the land, specifying the proportion that in their opinion is a fair and reasonable proportion of the land value of the land to be attributed to the flat, and

(b) the application is made in a form approved by the Chief Commissioner.

(6) There is to be no reduction under this section if the building on the land, or the buildings on the land together, comprise 2 flats and the land is exempted from taxation under this Act.

(6A) For avoidance of doubt, if a reduction in the land value of land is required under this section and the land is jointly owned, then, for the purposes of section 27 (3) (a), the individual interest of each of the owners of the land (including the owner who occupies the flat) is to be assessed on the basis of the land value of the land as reduced under this section.

(7) This section does not apply to land to which section 9D or 21B applies.

(8) In this section—

mixed development land has the same meaning as in Division 5 of Part 1B of the Valuation of Land Act 1916 .

s 9C: Ins 1990 No 35, Sch 1 (2). Am 1991 No 47, Sch 1 (9); 1992 No 84, Sch 1 (5) (6); 1997 No 37, Sch 3 [2] [3]; 1998 No 79, Sch 2.3 [3]; 2000 No 106, Sch 3 [3]; 2002 No 108, Sch 2.2 [6]–[9]; 2004 No 33, Sch 2.2 [4]–[8]; 2008 No 67, Sch 4 [5]; 2010 No 46, Sch 6 [2].

(1) For the purpose of assessing land tax, the land value of mixed use land on which is situated one single dwelling is to be reduced by the allowable proportion in relation to the dwelling.

(2) The allowable proportion for the dwelling is to be determined in accordance with whichever of the following paragraphs is applicable in the particular case—

(a) if there is an apportionment factor entered in the Register in respect of that land value—the proportion determined by deducting that apportionment factor from 1,

(b) if paragraph (a) is not applicable—the proportion specified in an application for a reduction under this section as the fair and reasonable proportion of the land value of the land to be attributed to the dwelling, subject to subsections (3) and (4).

(3) If there is no apportionment factor entered in the Register in respect of the land value of the land, the Chief Commissioner may request the Valuer-General to determine the apportionment factor in respect of the land concerned.

(4) If a request is made under subsection (3)—

(a) the Valuer-General must determine the apportionment factor concerned and enter it in the Register, and

(b) the allowable proportion for the dwelling must be determined in accordance with subsection (2) (a).

(5) Apportionment factors for the purposes of this section are to be ascertained in accordance with Division 5A of Part 1B of the Valuation of Land Act 1916 . If such an apportionment factor is expressed as a percentage, the apportionment factor is, for the purposes of this section, to be converted to a fraction.

Division 5A of Part 1B of the Valuation of Land Act 1916 allows objections to be made against the amount of an apportionment factor.

(6) The reduction under this section applies only if the following requirements are satisfied—

(a) the single dwelling must be used and occupied by the owner of the land (or one of the owners) as his or her principal place of residence and for no other purpose, in which connection the use of the land for the purpose of one, but not more than one, residential occupancy other than that of the owner under lease or licence from the owner may be disregarded if it is an excluded residential occupancy (within the meaning of clause 4 of Schedule 1A),

(b) an owner of the land who occupies the dwelling must not be an owner merely because of being a trustee,

(c) the owner of the land must not be a company or company jointly with another person or other persons, except in either case a trustee company acting in its representative capacity.

(6A) For the purposes of determining whether a single dwelling has been used and occupied by an owner of land as his or her principal place of residence under subsection (6) (a), clauses 8, 9 and 10 of Schedule 1A apply in respect of the single dwelling, and that part of the land on which the dwelling is situated, in the same way as they apply in respect of land under the principal place of residence exemption.

The effect of this provision is to deem a single dwelling to be used and occupied by the owner of the land as a principal place of residence in certain circumstances, similar to the principal place of residence exemption. As a consequence, the land value of the mixed use land on which the single dwelling is situated can be reduced by the allowable proportion under this section.

(7) Unless the land concerned is land to which subsection (2) (a) applies, there is to be no reduction under this section unless—

(a) application has been made for the reduction by all the owners of the land, specifying the proportion that in their opinion is a fair and reasonable proportion of the land value of the land to be attributed to the dwelling, and

(b) the application is made in a form approved by the Chief Commissioner.

(8) For avoidance of doubt, if a reduction in the land value of land is required under this section and the land is jointly owned, then, for the purposes of section 27 (3) (a), the individual interest of each of the owners of the land (including the owner who occupies the dwelling) is to be assessed on the basis of the land value of the land as reduced under this section.

(9) For the purposes of applying this section in respect of land on which there is a single dwelling and a residential occupancy other than that of the owner, the use of the land for the purpose of that other residential occupancy may be disregarded if that residential occupancy may be disregarded under the principal place of residence exemption under Schedule 1A.

(10) This section does not apply to land to which section 21B applies.

(11) In this section—

single dwelling has the same meaning as it has in Division 5A of Part 1B of the Valuation of Land Act 1916 .

(1) This section applies in respect of land owned by a person at midnight on 31 December in any year (ending with midnight at the end of 31 December 2039).

Under section 3AL of the Land Tax Act 1956 , land tax is charged, levied, collected and paid for the period of 12 months commencing on 1 January in the next succeeding year for land owned at midnight on 31 December in any year. So this reduction provision applies until the end of the 2040 land tax year.

(2) For the purpose of assessing land tax, the land value of a parcel of land is to be reduced by 50% if—

(b) construction of the building commenced on or after 1 July 2020, and

(c) the Chief Commissioner is satisfied that a significant proportion of the labour force hours spent on the construction of the building involves or involved work performed by persons whom the Chief Commissioner considers belong to any one or more of the following classes of worker—

(ii) long-term unemployed workers,

(iii) workers requiring upskilling,

(iv) workers with barriers to employment (such as persons with disability),

(v) Aboriginal jobseekers,

(vi) graduates, and

(d) the Chief Commissioner is satisfied that the building is being used and occupied for a build-to-rent property in accordance with guidelines approved by the Treasurer for the purposes of this section, and

(e) an application for the reduction is made in accordance with this section.

(3) The guidelines may include provisions with respect to the following—

(a) the circumstances in which a building is taken to be a build-to-rent property, including in relation to the following—

(ii) the minimum lease conditions that must be offered to tenants of the build-to-rent property,

(iii) the minimum scale of a building to qualify as a build-to-rent property,

(iv) the nature of the ownership and management of the building and the land on which the building is situated,

(b) the circumstances in which the applicant is required to give an undertaking to not subdivide the land or otherwise divide the ownership of the land,

(c) other matters relating to build-to-rent properties and the land on which build-to-rent properties are situated as the Treasurer determines appropriate.

(4) The guidelines must include policies to promote the development of new affordable housing and social housing in build-to-rent properties.

(5) Without limiting the other ways in which this section may cease to apply to a person, it ceases to apply to a person if the person breaches an undertaking given as referred to in subsection (3)(b).

(6) A guideline may—

(a) apply generally or be limited in its application by reference to specified exceptions or factors, or

(b) apply differently according to different factors of a specified kind,

(7) If the Chief Commissioner is satisfied that only part of a parcel of land is being used and occupied for a build-to-rent property, the reduction in land value under subsection (2) is to be proportionately decreased in accordance with guidelines approved by the Treasurer for the purposes of this section.

(8) This section does not apply to an owner of land in respect of a tax year unless—

(a) the owner applies to the Chief Commissioner for the reduction, in the form approved by the Chief Commissioner, and

(b) the owner furnishes the Chief Commissioner with the evidence that the Chief Commissioner requests for the purpose of enabling the Chief Commissioner to determine whether there is an entitlement to the reduction.

(9) However, if, within the period of 15 years after subsection (2) first applied to reduce the land value of a parcel of land, the land is subdivided or the ownership of the land is otherwise divided—

(a) a person whose liability to pay land tax in respect of the land has been assessed in accordance with this section must, within 1 month, inform the Chief Commissioner of the date on which the land was subdivided or the ownership of the land was otherwise divided, and

(b) liability for land tax in respect of the following years is to be reassessed as if subsection (2) had not applied to the person—

(ii) each preceding year in which a person’s liability to pay land tax was assessed in accordance with this section, but not more than 15 preceding years, and

(c) the subdivision or division is taken to be a tax default for the purposes of Part 5 of the Taxation Administration Act 1996 .

(10) For the purposes of section 9(3)(c) of the Taxation Administration Act 1996 , any such reassessment is authorised to be made more than 5 years after the initial assessment.

(11) Any reassessment is not a relevant land tax assessment for the purposes of section 35(1)(b) of the Valuation of Land Act 1916 if it is based on the same land value or average value on which the original land tax assessment was based (before the reduction was made under subsection (2) of this section).

(12) In this section—

social housing means residential accommodation provided by a social housing provider within the meaning of the Residential Tenancies Act 2010 .

(1) Except where otherwise expressly provided in this Act the following lands shall, subject to sections 10B, 10D, 10E and 10P, be exempted from taxation under this Act—

(b) land owned by any marketing board constituted under the Rice Marketing Act 1983 , an agricultural industry services committee constituted by the Agricultural Industry Services Act 1998 or Local Land Services,

(c) land owned by or in trust for a public health organisation within the meaning of the Health Services Act 1997 ,

(c1) (Repealed)

(d) land owned by or in trust for a charitable body,

(e) land owned by or in trust for a religious society if the society, however formed or constituted, is carried on solely for religious, charitable or educational purposes, including the support of the aged or infirm clergy or ministers of the society, or their wives or widows or children, and not for pecuniary profit,

(f) land owned by or in trust for, and used and occupied solely by—

(i) an association of employers or employees registered as an organisation under Part IX of the Industrial Relations Act 1988 of the Commonwealth,

(ii) (Repealed)

(iii) an industrial organisation of employers or employees within the meaning of the Industrial Relations Act 1996 ,

(iv) Unions NSW or any other association of bodies of a kind referred to in subparagraph (i) or (iii), or

(v) a company in which shares representing not less than 85 per cent of the paid-up capital thereof are held by or in trust for a body referred to in subparagraph (i), (iii) or (iv),

not being land of which any part is used for the purpose of a commercial activity open to members of the public,

(f1) land owned by the New South Wales Aboriginal Land Council, a Regional Aboriginal Land Council or a Local Aboriginal Land Council constituted under the Aboriginal Land Rights Act 1983 ,

(g) land owned by or in trust for any person or society and used or occupied by that person or society solely as a site for—

(i) a place of worship for a religious society, or a place of residence for any clergy or ministers or order of a religious society,

(ii) (Repealed)

(iii) a building (not being a building of which any part is used for the purpose of a commercial activity open to members of the public) owned and solely occupied by a society, club or association not carried on for pecuniary profit,

(iv) a charitable body,

(v) a public cemetery or crematorium,

(vi) a public garden, public recreation ground or public reserve,

(vii) a fire brigade, ambulance or mines rescue station,

(viii) a private health facility (within the meaning of the Private Health Facilities Act 2007 ) not carried on for pecuniary profit,

(ix) an authorised hospital within the meaning of the Mental Health Act 1990 not carried on for pecuniary profit,

(x) (Repealed)

(h) land owned by, or in trust for, any club or body of persons, and used primarily and principally for the purposes of any game or sport and not used for the pecuniary profit of the members of that club or body,

(i) land owned by, or in trust for, any club or body of persons, formed for promoting or controlling horse-racing, trotting-racing or greyhound-racing and used primarily and principally for the holding of meetings for horse-racing, trotting-racing or greyhound-racing,

(j) land used and occupied for the purpose of holding agricultural shows, or shows of a like nature and owned by, or held in trust for, a society which is established for the purpose of holding such shows and is not carried on for the pecuniary profit of its members and applies its revenues substantially towards the promotion or holding of such shows,

(k) land owned by a friendly society,

(l) association property that is vested in an association under the Community Land Development Act 2021 and is used primarily and principally—

(i) as an open access way or private access way within a community scheme, precinct scheme or neighbourhood scheme under the Community Land Development Act 2021 , or

(ii) for the recreation of participants in such a scheme and their invitees,

(m) land owned by a State owned corporation (within the meaning of the State Owned Corporations Act 1989 ) specified in the regulations to the extent, and from the date (whether that date is before or after the commencement of the regulations), prescribed by the regulations in respect of the corporation,

(n) land owned by any gas or electricity supply authority specified in the regulations (being an energy services corporation within the meaning of the Energy Services Corporations Act 1995 , a distributor that holds a licence to operate a distribution system under the Electricity Supply Act 1995 or a gas distributor that holds an authorisation under the Gas Supply Act 1996 ) to the extent, and from the date (whether that date is before or after the commencement of the regulations), prescribed by the regulations in respect of such authority,

(o) land owned by the Returned Sailors, Soldiers and Airmen’s Imperial League of Australia (New South Wales Branch) and being the site of Anzac House,

(p) land that is the subject of a biodiversity stewardship agreement under the Biodiversity Conservation Act 2016 ,

(p1) land that is the subject of a conservation agreement under the Biodiversity Conservation Act 2016 or the National Parks and Wildlife Act 1974 , being an agreement that remains in force in perpetuity (that is, an agreement that remains in force for an indefinite period and that cannot be unilaterally terminated by the owner of the land),

(p1A) land that is the subject of a registered Trust agreement that was referred to in section 36 of the Nature Conservation Trust Act 2001 (being an agreement that is continued in force by clause 50 of the Biodiversity Conservation (Savings and Transitional) Regulation 2017 and that remains in force in perpetuity, as referred to in paragraph (p1)),

(p2) land in which the Biodiversity Conservation Trust holds an interest,

(p3) land that is vested in, owned by, held on trust by or for, or leased by a joint government enterprise that has the function of allocating funds for water savings projects,

(q) land used solely as a police station,

(r) land that is exempt from taxation under the principal place of residence exemption, as provided for by Schedule 1A,

(r1) with respect to taxation leviable or payable in respect of the year commencing on 1 January 1987 or any succeeding year, land approved for multiple occupancy, and occupied, in accordance with an environmental planning instrument within the meaning of the Environmental Planning and Assessment Act 1979 ,

(s) land used solely as a site for a school registered under the Education Act 1990 ,

(t) with respect to taxation leviable or payable in respect of the year commencing on 1 January 1975 or any succeeding year, land owned by a co-operative under the Co-operatives National Law (NSW) that has as its objects any of the objects listed in section 7 of the Co-operation Act 1923 ,

(u) land that is used solely for the provision of an approved education and care service (within the meaning of the Children (Education and Care Services) National Law (NSW) ), but only if—

(ii) the land is the place where children are educated or cared for by the service,

(v) land that is used solely for the provision of an approved education and care service (within the meaning of the Children (Education and Care Services) Supplementary Provisions Act 2011 ), but only if—

(ii) the service is provided by an approved provider under that Act, and

(iii) the land is the place where children are educated or cared for by the service.

(1A)–(1I) (Repealed)

(a) a building is erected on land to which the provisions of subsection (1) (f) or (g) (iii) or of section 10B or 10D (2) would apply if the building were solely occupied by the persons or bodies referred to in those provisions, and

(b) the building is partly used or occupied, or is intended to be partly used or occupied, by persons other than those persons or bodies,

the land value of that land shall, for the purposes of the assessment of those persons or bodies, be reduced to an amount which bears the same proportion to that land value as the rental value of the part so used or occupied, or intended to be so used or occupied, by those other persons bears to the total rental value of the building.

(a) part of any land or part of a building is used, or intended to be used, for the purpose of a commercial activity open to members of the public, and

(b) the provisions of subsection (1) (f) or (g) (iii) would apply to the land or building if no part of the land or building were so used, or intended to be so used,

the land value of that land or of the land on which that building is erected shall, for the purposes of the assessment of land tax, be reduced to an amount which bears the same proportion to that land value as the rental value of the part so used, or intended to be so used, bears to the total rental value of that land or building, as the case may be.

(2AA) (Repealed)

(2B) For the purposes of subsection (1) (f), the use or occupation of any land or part of any land by any body, being a body of a kind referred to in subsection (1) (f)—

(b) with which the body referred to in paragraph (a) is affiliated, or

(c) which is controlled by, or controls, the body referred to in paragraph (a),

shall not be deemed to be use or occupation by a person other than the body by, or in trust for, which the land is owned.

(2C) If part of any land is the subject of any of the following agreements, the land value of that land is, for the purposes of the assessment of land tax, to be reduced by an amount that bears the same proportion to that land value as the area of the part that is the subject of the agreement bears to the area of the whole of the land—

(b) a conservation agreement under the Biodiversity Conservation Act 2016 or the National Parks and Wildlife Act 1974 , being an agreement that remains in force in perpetuity (that is, an agreement that remains in force for an indefinite period and that cannot be unilaterally terminated by the owner of the land),

(c) land that is the subject of a registered Trust agreement that was referred to in section 36 of the Nature Conservation Trust Act 2001 (being an agreement that is continued in force by clause 50 of the Biodiversity Conservation (Savings and Transitional) Regulation 2017 and that remains in force in perpetuity, as referred to in paragraph (b)).

(3) For the purposes of sub-paragraph (iii) of paragraph (g) of subsection (1), the use or occupation of any building or part of any building by any society, institution, club or association not carried on for pecuniary profit, which is affiliated with the owner of the land on which the building is erected, or with which that owner is affiliated, or which is controlled by or controls that owner, shall not be deemed to be use or occupation by a person other than the owner.

(4) Subsection (1) (g) (iii), and the other provisions of this section as they relate to that subparagraph, apply in respect of premises comprised in a strata lot as if those premises were a building erected on the site of the strata lot (and a reference to a building is to be construed as a reference to the strata lot).

(5) In this section—

charitable body means a body corporate, society, institution or other body carried on solely for charitable or educational purposes and not for pecuniary profit.

s 10: Am 1967 No 18, sec 125 (1) (ins 1967 No 81, sec 2); 1969 No 69, sec 2 (c); 1970 No 64, sec 2 (b); 1971 No 48, sec 2 (b); 1973 No 35, sec 12; 1973 No 68, Sch 3 (am 1974 No 35, Sch); 1973 No 70, secs 3 (c), 5 (b); 1975 No 97, Schs 1, 3 (2); 1979 No 205, Sch 2, Part 1; 1981 No 119, Sch 1; 1981 No 123, Sch 8; 1983 No 14, Sch 1 (5); 1983 No 42, Sch 3; 1983 No 171, Sch 1 (3); 1985 No 147, Sch 1 (2); 1985 No 215, Sch 1 (3); 1986 No 53, Sch 1; 1986 No 186, Schs 1, 2 (1); 1986 No 220, Sch 1; 1987 No 58, Sch 3; 1987 No 63, Sch 2; 1987 No 229, Sch 1; 1988 No 128, Sch 1 (4); 1989 No 204, Sch 1; 1990 No 88, Sch 1 (6)–(8); 1991 No 47, Sch 1 (1) (14); 1992 No 18, Sch 7; 1992 No 84, Schs 1 (5), 2 (1); 1994 No 48, Sch 5 (14); 1994 No 72, Sch 2 (2); 1995 No 94, Sch 5.6; 1995 No 98, Sch 4 [1]; 1996 No 38, Sch 1.9; 1996 No 121, Sch 4.33; 1996 No 139, Sch 2.20 [2]–[5] (am 1997 No 55, Sch 2.18 [1] [2]); 1997 No 11, Sch 1.11; 1997 No 37, Sch 3 [4] [5]; 1997 No 154, Sch 6.20; 1998 No 44, Sch 2 [1]; 1998 No 45, Sch 3.3; 1998 No 79, Sch 2.3 [4]; 1998 No 170, Sch 3.7 [1] [2]; 1999 No 52, Sch 2.1 [2]; 2000 No 51, Sch 3 [1] [2]; 2000 No 106, Sch 3 [4]; 2000 No 109, Sch 2.4; 2001 No 10, Sch 5.3 [1]; 2001 No 96, Sch 2.2 [2]; 2002 No 78, Sch 2.4; 2002 No 108, Sch 2.2 [10]–[14]; 2003 No 80, Sch 4 [3]–[6]; 2004 No 67, Sch 2 [1] [2]; 2004 No 87, Sch 6.9 [1]; 2005 No 64, Sch 2.31; 2005 No 111, Sch 4 [3]–[7]; 2006 No 125, Sch 2.4 [1] [2]; 2007 No 9, Sch 5.17; 2008 No 67, Sch 4 [8] [9]; 2008 No 112, Sch 6.16; 2010 No 46, Sch 6 [4]–[6]; 2013 No 51, Sch 7.25; 2014 No 19, Sch 2 [3]–[7]; 2014 No 88, Sch 2.33; 2015 No 5, Sch 8.17; 2015 No 51, Sch 9.12 [2]; 2017 No 22, Sch 2.23 [1]; 2018 No 68, Sch 1.14 [1] [2]; 2021 No 6, Sch 5.9; 2022 No 26, Sch 2.15; 2023 No 18, Sch 4[1] [2].

(1) Land that is rural land is exempt from taxation if it is land used for primary production.

(2) Land that is not rural land is exempt from taxation if it is land used for primary production and that use of the land—

(b) is engaged in for the purpose of profit on a continuous or repetitive basis (whether or not a profit is actually made).

(3) For the purposes of this section, land used for primary production means land the dominant use of which is for—

(b) the maintenance of animals (including birds), whether wild or domesticated, for the purpose of selling them or their natural increase or bodily produce, or

(c) commercial fishing (including preparation for that fishing and the storage or preparation of fish or fishing gear) or the commercial farming of fish, molluscs, crustaceans or other aquatic animals, or

(d) the keeping of bees, for the purpose of selling their honey, or

(e) a commercial plant nursery, but not a nursery at which the principal cultivation is the maintenance of plants pending their sale to the general public, or

(f) the propagation for sale of mushrooms, orchids or flowers.

(4) For the purposes of this section, land is rural land if—

(a) the land is zoned rural, rural residential, non-urban or large lot residential under a planning instrument, or

(b) the land has another zoning under a planning instrument, and the zone is a type of rural zone under the standard instrument prescribed under the Environmental Planning and Assessment Act 1979 , section 3.20, or

(c) the land is not within a zone under a planning instrument but the Chief Commissioner is satisfied the land is rural land.

s 10AA: Ins 2002 No 108, Sch 2.2 [15]. Rep 2003 No 80, Sch 4 [7]. Ins 2005 No 111, Sch 4 [8]. Am 2014 No 19, Sch 2 [8]; 2022 No 59, Sch 2.25.

(1) If land is used for more than one purpose and each of those purposes is an exempt purpose, the land is exempt from taxation.

(2) A purpose for which land is used is an exempt purpose if land used solely for that purpose would be exempt from taxation because of its use for that purpose.

s 10A: Ins 1975 No 97, Sch 3 (3). Am 1981 No 123, Sch 8; 1983 No 14, Sch 1 (5). Rep 1985 No 215, Sch 1 (4). Ins 1988 No 128, Sch 1 (5). Rep 1989 No 113, sec 4. Ins 1990 No 35, Sch 1 (3). Am 1996 No 139, Sch 2.20 [6]; 1998 No 44, Sch 2 [2]; 1998 No 104, Sch 4 [1] [2]; 2001 No 96, Sch 2.2 [3]. Subst 2003 No 80, Sch 4 [8].

Nothing in this Act operates to exempt from taxation under this Act any land owned by the SAS Trustee Corporation that is not land solely occupied by the SAS Trustee Corporation as offices from which to exercise and perform its powers, authorities, duties and functions.

s 10B: Ins 1975 No 97, Sch 3 (3). Am 1994 No 48, Sch 5 (15); 1996 No 39, Sch 4.5; 1996 No 122, Sch 7.7. Subst 2005 No 91, Sch 3.5.