OWNER'S RESIDENCE – LAND TAX

Revenue Ruling No. LT40

Concession for Land Partially Used and Occupied as an Owner's Residence (Section 9C Land Tax Management Act, 1956)


PREAMBLE

1. Up to and including the 1990 tax year, an owner of land was entitled to a reduction in tax where the land was used as the owner's residence and contained other premises.

2. Effective from the 1991 tax year, the reduction in tax is replaced by a reduction in the adjusted value. This new concession, based on the proportion of the adjusted value relating to the owner's residence, is called the allowable proportion.

3. Where land is used for residential and commercial purposes, the Valuer-General may determine a Mixed Development Apportionment Factor (MDAF) representing that part of the adjusted value relating to the commercial use of the land.

4. The purpose of this Ruling is to explain the methods of calculating the allowable proportion, to outline the conditions that must be met and to advise how to apply for the concession.

RULING

5. Where an MDAF has been determined and an owner's residence is the only residence on the land, the allowable proportion is the remainder of the adjusted value after deducting the MDAF. If there are two or more residences on the land, the remainder of the adjusted value is reduced in the proportion that the floor area of the owner's residence bears to the floor area of all residences on the land, including that of the owner.

6. Where an MDAF has not been determined by the Valuer-General, an owner must claim a proportion of the adjusted value considered to apply to that owner's residence and this may be accepted as the allowable proportion. If the Chief Commissioner of Land Tax is not satisfied that a claim is fair and reasonable, the allowable proportion will be the proportion that the floor area of the owner's residence bears to the floor area of all buildings on the land, including the owner's residence.

7. Where the area of the land exceeds 2,100 square metres, the allowable proportion is reduced in the proportion that 2,100 square metres bears to the total area of the land.


8. The new concession is available only where:

(i) part of the building or buildings on the land was used as an owner's residence and for no other purpose;

(ii) that owner was not a trustee [other than a "Trustee company" (as defined)]; and

(iii) that owner was not a company or a person owning the land jointly with a company (a company does not include a "Trustee company").

9. Owners of land who received a concession for the 1990 tax year and whose circumstances are unchanged will automatically receive the new concession and they need do nothing.

10. Owners of land who did not receive a concession for the 1990 tax year or owners who received a concession for the 1990 tax year but whose circumstances have changed are required to claim the new concession.

11. A standard application form for use by owners who wish to apply for the concession is attached to this Ruling. The application, which is in the form of a statutory declaration, should be posted to the Chief Commissioner at the following address:-

Office of State Revenue
Revenue Advisory Services
Post Bag 5215
Parramatta NSW 2124

but may also be lodged at any branch of the Office of State Revenue from where additional copies of the form can be obtained.

12. The Chief Commissioner should be advised of any change in the circumstances outlined in the application for concession as soon as possible after the change.



B. Buchanan
for CHIEF COMMISSIONER OF LAND TAX
15th October, 1992


(FORM 9C) CLIENT No:___________
TAX YEAR:___________


APPLICATION FOR REDUCTION OF ADJUSTED VALUE
(Section 9C of the Land Tax Management Act, 1956)

STATUTORY DECLARATION


(Please-strike out the choice not applicable to you wherever the symbol *
appears.)

I/We* ............................................................................................................................

of ...................................................................................................................................
(current address)

apply for the concession provided by the above Act for land at .......................

....................................................................................................................................
(write "as above" if same as current address

and do hereby solemnly and sincerely declare that as at 31 December ...... the
following details are correct:-

1. (a) the owner was not a trustee [other than a "Trustee company (as
defined) - please see over for definition];

(b) a company [other than a "Trustee company"] was not a legal,
equitable or joint owner of the land;

(c) I/we* used and occupied the residence for residential purposes
and no other purpose:

*(i) continuously for the 6 months preceding the above date; or

*(ii) continuously for a period of less than 6 months preceding
the above date.

(Where 1.(c)(ii) applies, a statement of the reasons why the use and
occupation was less than 6 months should be made on the reverse side of this
declaration.)

2. The land was/was not* partly used for commercial purposes.

3. (a) the floor area of my/our* residence is ..................................

(b) the total floor area of all residences on the land is ............................

(c) the total floor area of all buildings on the land including my/our*
residence is .............................................

4. (a) I/We* claim that the proportion of the adjusted value of the land
applying to my/our* residence is ..................................................

(b) The basis of the claim in 4(a) is ..........................................................

..............................................................................................................

I/We* make this solemn declaration, conscientiously believing the same to be
true, and by virtue of the provisions of the Oaths Act 1900.



............................................ ........................................
(DECLARANT(S) SIGNATURE)


Made and Signed before me this ............... day of ............ 19 .....



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JUSTICE OF THE PEACE


DEFINITION UNDER SECTION 3 OF THE LAND TAX MANAGEMENT ACT, 1956

"Trustee company" means a trustee company within the meaning of the Trustee Companies Act 1964 or the Public Trustee.

STATEMENT OF REASONS WHY THE RESIDENCE WAS NOT CONTINUOUSLY USED AND OCCUPIED BY THE OWNER(S) FOR THE SIX MONTHS PRECEDING THE TAXING DATE

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