South Australian Current Acts South Australian Current Acts5—Exemption or partial exemption of certain land from land tax
(1) Land is wholly
exempt from land tax under this section if—
(a)
proper grounds for the exemption exist; and
(b) such
an exemption has been granted, and remains in force, under this section.
(2) Land is partially
exempt from land tax under this section if—
(a)
proper grounds for the partial exemption exist; and
(b) a
partial exemption has been granted, and remains in force, under this section.
(3) An owner of land
may apply, in a form approved by the Commissioner, for an exemption or partial
exemption from land tax.
(4) A person must not
make any false or misleading statement or representation in an application
made, or purporting to be made, under subsection (3).
Maximum penalty: $10 000.
(5) The Commissioner
may, if satisfied that proper grounds exist for doing so, wholly or partially
exempt land from land tax (whether or not an application for exemption has
been made).
(6) The Commissioner
must, on exempting land wholly or partially from land tax under this section,
give notice to an owner of the land—
(a)
stating the day (which may be antecedent or subsequent to the date on which
the exemption is granted) as from which the exemption is to be effective; and
(b)
stating the extent of the exemption; and
(c)
setting out the grounds on which the exemption is granted.
(7) If the factual
basis of an exemption as stated in a notice under subsection (6) is wrong
or inaccurate, the owner to whom the notice is given must, within 21 days
after receipt of the notice, notify the Commissioner of the error or
inaccuracy.
Maximum penalty: $5 000.
Expiation fee: $315.
(a) land
is exempted wholly or partially from land tax under this section; and
(b)
circumstances change so that—
(i)
proper grounds for an exemption cease to exist; or
(ii)
proper grounds for an exemption continue to exist but a
lesser exemption than the one actually given,
the owner must forthwith inform the Commissioner in writing of that fact and,
whether or not the Commissioner is so informed, the land will cease to be
exempt from land tax, or the extent of the exemption will be reduced (as the
case requires).
(9) An owner of land
who fails to comply with an obligation under subsection (8) is guilty of
an offence.
Maximum penalty: $5 000.
Expiation fee: $315.
(10) Proper grounds
for exempting land from land tax under this section exist as follows:
(a) land
may be wholly exempted from land tax if—
(i)
the land is owned by a natural person and constitutes his
or her principal place of residence (whether or not he or she is the sole
owner of the land); and
(ii)
the buildings on the land have a predominantly
residential character; and
(iii)
no part of the land is used for a business or commercial
purpose (other than the business of primary production) or the part of the
land so used is less than 25% of the total floor area of all buildings on the
land;
(ab)
land may be wholly exempted from land tax if—
(i)
the land is owned by a natural person (whether or not he
or she is the sole owner of the land); and
(ii)
any buildings on the land of a predominantly residential
character are uninhabitable; and
(iii)
the Commissioner is satisfied—
(A) that the person has ceased to occupy
any building on the land of a predominantly residential character because it
has been destroyed or rendered uninhabitable by an occurrence for which the
person is not responsible (whether directly or indirectly) or which resulted
from an accident; and
(B) that any such building constituted the
person's principal place of residence immediately before the date on which the
building was destroyed or rendered uninhabitable; and
(C) that the person intends to repair or
rebuild the building within a period of 3 years from the date on which
the building was destroyed or rendered uninhabitable; and
(D) that the buildings on the land will,
after the completion of building work, have a predominantly residential
character; and
(E) that the person intends to occupy the
land as his or her principal place of residence after the completion of the
building work; and
(iv)
the person is not receiving an exemption from land tax
under another provision of this subsection in relation to other land that
constitutes the person's principal place of residence;
(ac)
subject to this section, land may be wholly exempted from land tax if—
(i)
the land is owned by a natural person (whether or not he
or she is the sole owner of the land) who has ceased to occupy the land; and
(ii)
the buildings on the land immediately before the person
ceased to occupy the land had a predominantly residential character; and
(iii)
no part of the land is used for a business or commercial
purpose (other than the business of primary production) or the part of the
land so used is less than 25% of the total floor area of all buildings on
the land; and
(iv)
the Commissioner is satisfied—
(A) that the person has ceased to occupy
the land as his or her principal place of residence because a building on the
land is being renovated or rebuilt; and
(B) that the buildings on the land will,
after the completion of the renovation or rebuilding, have a predominantly
residential character; and
(C) that the person intends to resume
occupation of the land as his or her principal place of residence when the
renovation or rebuilding work is complete (or is completed to a suitable
stage); and
(v)
the person is not receiving an exemption from land tax
under another provision of this subsection in relation to other land that
constitutes the person's principal place of residence;
(ad)
subject to this section, land may be wholly exempted from land tax if—
(i)
the land is owned by a natural person (whether or not he
or she is the sole owner of the land); and
(ii)
no part of the land is used for a business or commercial
purpose (other than the business of primary production) or the part of the
land so used is less than 25% of the total floor area of all buildings on
the land; and
(iii)
the Commissioner is satisfied—
(A) that the person is, or will be,
renovating or constructing a building or buildings on the land; and
(B) that the buildings on the land will,
after the completion of the renovation or construction work, have a
predominantly residential character; and
(C) that the person intends to occupy the
land as his or her principal place of residence when the renovation or
construction work is completed (or is completed to a suitable stage); and
(iv)
the person is not receiving an exemption from land tax
under another provision of this subsection in relation to other land that
constitutes the person's principal place of residence;
(b) land
may be partially exempted from land tax by reducing its taxable value in
accordance with the scale prescribed in subsection (12) if—
(i)
the land is owned by a natural person and constitutes his
or her principal place of residence (whether or not he or she is the sole
owner of the land); and
(ii)
the buildings on the land have a predominantly
residential character; and
(iii)
a part of the land of 25% or more but not more than 75%
of the total floor area of all buildings on the land is used for a business or
commercial purpose;
(ba)
land may be wholly exempted from land tax if—
(i)
the land is owned by a natural person and constitutes his
or her principal place of residence (whether or not he or she is the sole
owner of the land); and
(ii)
the buildings on the land are used for the purposes of a
hotel, motel, set of serviced holiday apartments or other similar
accommodation; and
(iii)
more than 75% of the total floor area of all buildings on
the land is used for the person's principal place of residence;
(bb)
land may be partially exempted from land tax by reducing its taxable value in
accordance with the scale prescribed in subsection (12) if—
(i)
the land is owned by a natural person and constitutes his
or her principal place of residence (whether or not he or she is the sole
owner of the land); and
(ii)
the buildings on the land are used for the purposes of a
hotel, motel, set of serviced holiday apartments or other similar
accommodation; and
(iii)
25% or more of the total floor area of all buildings on
the land is used for the person's principal place of residence,
(and for the purposes of the scale prescribed in subsection (12), the
area used for the hotel, motel, set of serviced holiday apartments or other
similar accommodation will be taken to be the area used for business or
commercial purposes);
(c) land
may be wholly exempted from land tax if the land is a supported residential
facility within the meaning of the Supported Residential Facilities
Act 1992 and is licensed as such under that Act;
(ca)
land may be wholly exempted from land tax if the whole of the land is used for
the provision of residential care by an approved provider;
(cb)
land may be partially exempted from land tax if part of the land is used for
the provision of residential care by an approved provider by reducing its
taxable value by an amount equal to the value of that part of the land after
applying any principle determined by the Commissioner for the purposes of this
paragraph;
(d) land
may be wholly exempted from land tax if the land constitutes a caravan park;
(e) land
within a retirement village may be exempted from land tax if—
(i)
the land constitutes a residential unit—
(A) occupied, under a residence contract,
by a natural person as his or her principal place of residence; or
(B) available for occupation, under a
residence contract, by a natural person as his or her principal place of
residence and likely to be so occupied at some time during the ensuing
12 months; or
(ii)
the land is appurtenant to such a residential unit; or
(iii)
the land is a facility provided under the
retirement village scheme for the exclusive use of residents (and their
guests);
(f) land
within a retired persons' relocatable home park may be exempted from land tax
if—
(i)
the land constitutes the site for a relocatable home
and—
(A) there is a relocatable home on the site
owned by a natural person and occupied by the natural person as his or her
principal place of residence; or
(B) it is likely that within the ensuing
12 months there will be a relocatable home on the site owned by a natural
person and occupied by the natural person as his or her principal place of
residence; or
(ii)
the land is appurtenant to such a site; or
(iii)
the land is a facility provided by the owner of the land
for the exclusive use of residents (and their guests);
(g)
land used for primary production that is situated within a defined rural area
may be wholly exempted from land tax if—
(i)
the sole owner is a natural person who is engaged on a
substantially full-time basis (either on his or her own behalf or as an
employee) in a relevant business; or
(ii)
the land is owned jointly or in common by 2 or more
natural persons at least 1 of whom is engaged on a substantially full-time
basis (either on his or her own behalf or as an employee) in a
relevant business and any other owner who is not so engaged is a relative of
an owner so engaged; or
(iii)
the land is owned solely, jointly or in common by a
retired person and the following conditions are satisfied:
(A) the retired person was, prior to his or
her retirement, engaged on a substantially full-time basis (either on his or
her own behalf or as an employee) in a relevant business; and
(B) the co-owner or co-owners of the land
(if any) are relatives of the retired person; and
(C) a close relative of the retired person
is currently engaged on a substantially full-time basis (either on his or her
own behalf or as an employee) in a relevant business; or
(iv)
the land is owned solely or by tenancy in common by the
executor of the will, or the administrator of the estate, of a deceased person
and the following conditions are satisfied:
(A) the deceased person was, prior to his
or her death, engaged on a substantially full-time basis (either on his or her
own behalf or as an employee) in a relevant business; and
(B) the co-owner or co-owners of the land
(if any) are relatives of the deceased person; and
(C) a close relative of the deceased person
is currently engaged on a substantially full-time basis (either on his or her
own behalf or as an employee) in a relevant business; or
(v)
the land is owned by a company, or by 2 or more
companies, or by a company or companies and 1 or more natural persons, and the
main business of each owner is a relevant business; or
(vi)
the land is owned by a company and 1 of the following
conditions is satisfied:
(A) a natural person owns a majority of the
issued shares of the company and is engaged on a substantially full-time basis
(either on his or her own behalf or as an employee) in a relevant business;
(B) 2 or more natural persons own in
aggregate a majority of the issued shares of the company and each of them is
engaged on a substantially full-time basis (either on his or her own behalf or
as an employee) in a relevant business;
(C) 2 or more natural persons who are
relatives own in aggregate a majority of the issued shares of the company and
at least 1 of them is engaged on a substantially full-time basis (either on
his or her own behalf or as an employee) in a relevant business;
(h) land
may be wholly exempted from land tax if—
(i)
the land is owned by the trustee of a
special disability trust; and
(ii)
the Commissioner is satisfied that the land constitutes
the principal place of residence of the principal beneficiary of the
special disability trust.
(10a) Land is not
exempt from land tax during a financial year under subsection (10)(ac)
or (ad) unless—
(a) the
Commissioner is satisfied that—
(i)
the owner who applied for the exemption occupies the
property as his or her principal place of residence for a period of at least
12 months after completion (or completion to a suitable stage) of the
renovation, rebuilding or construction work to which the application related;
or
(ii)
the owner who applied for the exemption intended to so
occupy the property when applying for the exemption but there were good
reasons why the owner was unable to do so; and
(b)
the Commissioner is satisfied that no rent or other consideration is paid or
payable for occupation by some other person, during the financial year or, in
a case where paragraph (a)(i) applies, during the period referred to in
paragraph (a)(i).
(10b) Land may not be
exempted from land tax under subsection (10)(ac) or (ad) for a
period that exceeds 2 years unless there are, in the Commissioner's
opinion, good reasons to exempt the land for a longer period.
(10c) The Commissioner
may, on application under this subsection, grant a waiver or refund of
land tax paid or payable by or on behalf of an owner of land for a financial
year if—
(a)
proper grounds for exempting the land from land tax under
subsection (10)(ac) or (ad) existed for that financial year; and
(b) the
application is made not more than 5 years after the assessment of the
liability to the tax to which the application relates.
(11) The regulations
may, however, prescribe additional criteria that must be satisfied if land is
to be eligible to be exempted wholly or partially from land tax under
subsection (10).
(11a) For the
avoidance of doubt, land may not be exempted from land tax under
subsection (10)(ab) for a period that exceeds 3 years.
(12) The scale for
partial exemption from land tax under subsection (10)(b) or (bb) is as
follows:
|
Area used for business or commercial purpose expressed as a percentage of the
total floor area of all buildings on the land |
Percentage reduction in taxable value of land |
|---|---|
|
More than 75% |
Nil |
|
75% |
25% |
|
70% or more but less than 75% |
30% |
|
65% or more but less than 70% |
35% |
|
60% or more but less than 65% |
40% |
|
55% or more but less than 60% |
45% |
|
50% or more but less than 55% |
50% |
|
45% or more but less than 50% |
55% |
|
40% or more but less than 45% |
60% |
|
35% or more but less than 40% |
65% |
|
30% or more but less than 35% |
70% |
|
25% or more but less than 30% |
75% |
|
(less than 25%) |
(100%) |
(12a) The Commissioner
may, on application under this subsection, grant—
(a) a
waiver or refund of land tax paid or payable by or on behalf of a trustee of a
special disability trust on land for a particular financial year; or
(b) a
refund of an amount paid by or on behalf of a trustee of a special
disability trust as a transferee of land to the transferor of land as an
adjustment of land tax paid or payable on the land for the financial year in
which settlement takes place,
if the following criteria are satisfied:
(c) the
land was acquired by the trustee during the course of the financial year;
(d)
the Commissioner is satisfied that the land constitutes or will constitute the
principal place of residence of the principal beneficiary of the
special disability trust during the course of the financial year;
(e) the
application is made not more than 5 years after the assessment of the
liability to the tax to which the application relates.
(13) In this
section—
"approved provider" has the same meaning as in the Aged Care Act 1997 of
the Commonwealth;
"close personal relationship" means the relationship between 2 adult
persons (whether or not related by family and irrespective of their gender)
who live together as a couple on a genuine domestic basis, but does not
include—
(a) the
relationship between a legally married couple; or
(b) a
relationship where 1 of the persons provides the other with domestic support
or personal care (or both) for fee or reward, or on behalf of some other
person or an organisation of whatever kind;
Note—
Two persons may live together as a couple on a genuine domestic basis whether
or not a sexual relationship exists, or has ever existed, between them.
"close relative"—a person is a close relative of another if—
(a) they
are spouses or domestic partners; or
(b) one
is a parent or child of the other; or
(c) one
is a brother or sister of the other;
"domestic partner"—a person is the domestic partner of a person if he or
she lives with the person in a close personal relationship;
"principal beneficiary"—
(a) has
the meaning given in section 1209M(1) of the Social Security Act, in the
case of a special disability trust within the meaning of section 1209L of
that Act; or
(b) has
the meaning given in section 52ZZZWA(1) of the Veterans' Entitlements
Act, in the case of a special disability trust within the meaning of
section 52ZZZW of that Act;
"relative"—a person is a relative of another if—
(a) they
are spouses or domestic partners; or
(b) one
is an ascendant or descendant of the other, or of the other's spouse or
domestic partner; or
(c) one
is a brother or sister of the other or a brother or sister of the other's
spouse or domestic partner; or
(d) one
is an ascendant or descendant of a brother or sister of the other or of the
other's spouse or domestic partner;
"relevant business"—a business is a relevant business in relation to
land used for primary production that is situated within a defined rural area
if—
(a) the
business is a business of primary production of the type for which the land is
used or a business of processing or marketing primary produce; and
(b) the
land or produce of the land is used to a significant extent for the purposes
of that business;
"relocatable home" means a residence that is capable of being moved (in 1 or
more sections) from site to site but does not include a caravan, motor home or
other moveable structure that can be registered under the Motor Vehicles
Act 1959 ;
"residential care" has the same meaning as in the Aged Care Act 1997 of
the Commonwealth;
"retired persons' relocatable home park" means land comprising home
sites—
(a) that
are used (or to be used) for the purpose of establishing 2 or more
relocatable homes; and
(b) over
which rights of occupation for that purpose are granted, by lease or licence,
predominantly to persons who are over the age of 55 years and have
retired from full-time employment;
"Social Security Act" means the Social Security Act 1991 of the Commonwealth;
"special disability trust" means—
(a) a
special disability trust within the meaning of section 1209L of the
Social Security Act; or
(b) a
special disability trust within the meaning of section 52ZZZW of the
Veterans' Entitlements Act;
"spouse"—a person is the spouse of another if they are legally married;
"Veterans' Entitlements Act" means the Veterans' Entitlements Act 1986 of the
Commonwealth.