Exemptions and deductions
Please select from the options below for more information on exemptions or deductions for land tax.
When a resident land owner (an individual) uses the land as his/her principal place of residence (PPR), the land owner may be eligible for a PPR exemption/deduction.
Generally, land is not used as a PPR unless the owner has used that land, and no other land, for residential purposes continuously for the 6 month period preceding the liability date, or if used for residential purposes for less than 6 months, where the Commissioner is satisfied the land is used for the owner's principal place of residence.
A full or partial exemption/deduction may be allowed where land is used as a PPR and for another purpose.
Full PPR Exemption/Deduction
Land (comprised in 1 parcel) is exempt from land tax if:
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the land is owned and used by a person as a PPR; and
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the land is not used for a substantial non-PPR purpose; and
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that person owns no other land in Queensland.
Where the exemption does not apply, a deduction from the relevant unimproved value is allowed for the land used as the owner's PPR.
Only one property can be claimed as the owner's PPR whether it is in Queensland or anywhere else.
The existing full PPR exemption/deduction has been extended and may apply where there is a single letting of part of a person's PPR to family members, or where the land is used for a non-PPR purpose which is not a substanital non-PPR purpose.
Partial PPR Exemption/Deduction
The PPR provisions have been extended to allow a partial exemption/deduction in certain situations.
A partial PPR exemption/deduction may apply where land is used both as a PPR and for a substantial non-PPR use. In deciding if the purpose is substantial, all relevant factors will be considered, such as whether the property is leased and the extent of the business or income-producing use.
How to apply
To claim a PPR exemption/deduction, go to Forms and select the form you need. For example, individuals should complete the form LT12 - Exemption / Deduction Claim - Principal Place of Residence (PPR) Individuals.
More information
For further information you should refer to Practice Direction LT 17.1 - The Land Tax Concession for a Principal Place of Residence.
The same criteria apply as for a natural person; however all beneficiaries must reside on the property and a power of appointment and trust deed must be provided at the time of claiming the deduction.
In the situation where a person has been granted the right to reside, a life tenancy or is a beneficiary under a will, and actually resides on the property, the principal place of residence deduction will also be allowed if the required criteria are met.
To make a claim for this deduction, choose the appropriate form.
If all or part of an owners land is used solely for the business of primary production (agriculture, pasturage or dairy farming), the owner may apply for this deduction.
To determine whether the use of the land constitutes a business of primary production, the Commissioner of Land Tax will consider a number of factors, as outlined in Practice Direction LT 1.1 - Guidelines for determining the business of agriculture, pasturage or dairy farming. Land used as a hobby farm is not eligible for the deduction.
Owners who may qualify for this deduction are:
- individuals who reside in Australia
- relevant proprietary companies
- exempt charitable institutions
- trustees of trusts provided all the trust beneficiaries fall within one of the above owner categories.
To make a claim for this deduction, see Land tax forms.
The primary production deduction previously granted to absentees who are Australian citizens ceases 30 June 2007.
Movable dwelling parks
For 2005-06 and subsequent financial years, land is exempt if it is used predominantly as a moveable dwelling park on which more than 50% of the total number of sites are occupied, or solely available for occupation, for residential purposes for periods of more than 6 weeks at a time. A movable dwelling park is a place where caravans or manufactured homes are situated for occupation on payment of consideration, such as rent. The Commissioner will consider a number of factors as outlined in Practice Direction LT 15.1 Exemption for land used pre dominantly as a moveable dwelling park.
To claim an exemption, see Land tax forms.
A number of exemptions from land tax are provided by the Land Tax Act 1915. Some of the more commonly encountered exemptions are outlined below:
- Land owned by or in trust for any person or society and used or occupied by that person or
society solely as the site of a building owned and occupied by a non-profit society, or a non-profit club, or a non-profit association. The Commissioner will consider a number of factors,as outlined in Practice Direction LT 4.2 Application of section 13(1)(g)(i) of the Land Tax Act 1915. - Land owned by an exempt charitable institution and used predominantly for qualifying exempt
purposes, e.g., education, religious activities, relief of poverty, care of the sick. The Commissioner will consider a number of factors, as outlined in Revenue Rulings General,- 2.3 Exempt Institutions and Exempt Charitable Institutions
- 3.3 Relief of Poverty
- 4.3 Public Benevolent Institutions, and
- 5.3 Guidelines as to Charitable Object or an Object Promoting the Public Good.
- Land used for premises or facilities for residents of a retirement village.
Movable dwelling parks
For 2005-06 and subsequent financial years, land is exempt if it is used predominantly as a moveable dwelling park on which more than 50% of the total number of sites are occupied, or solely available for occupation, for residential purposes for periods of more than 6 weeks at a time. A movable dwelling park is a place where caravans or manufactured homes are situated for occupation on payment of consideration, such as rent. The Commissioner will consider a number of factors as outlined in Practice Direction LT 15.1 Exemption for land used pre dominantly as a moveable dwelling park.
To claim an exemption, see Land tax forms.
