Primary production land tax exemption nsw

Land tax exemptions do not apply to vacant land or land where the centre is under construction, even if intended for a child care or education facility. Apply for the exemption You will need to enter your Client ID and Correspondence ID. To be eligible for this exemption , you must satisfy certain conditions, which vary depending on the location of the land.

An exemption may also be available for land being prepared for primary production. This applies whether or not it is the land owner that is.

What is primary production exemption? Is primary production land exempt from land tax? Tax expert Matthew Cridlan a partner at law firm K L Gates, said incorrect claims of the primary production land tax exemption was an area where the firm typically saw taxpayer errors arise. Land used for the business of primary production may be eligible for an exemption from land tax.

Land used for residential purposes that is located within supported residential facilities and aged care facilities may be eligible for an exemption from land tax. The authority of the licence is ONLY for land that the applicant owns, manages or leases for the business of primary production , except in the case of a category C licence issued to a primary producer. LT - When a land tax exemption will usually be granted on land used for a primary production business.

Primary production exemption.

It is a longstanding feature of the land tax system that primary production land is generally not taxed. As a result, property developers have traditionally claimed an exemption from land tax when their land bank is being used for. You may claim the exemption for multiple parcels of land , as long as the land is used for a primary production activity and is carried on for the same business of primary production (e.g. separate forms are required if you run your own cattle on one parcel and agist another parcel to a grazier and want to claim exemptions for both). Land tax is a tax levied on the owners of land in NSW as at midnight on December of each year.

In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. This is because Ben and Ruth as the landowners must carry on the business of primary production on the Land. Definition and eligibility criteria.

The NSW Court of Appeal has refused a claim for the primary production land tax exemption made by a couple for their property that was used for thoroughbred horse breeding. The couple claimed that only of the land was used to rent out a residence on the property and accordingly, the overwhelming majority percentage of the land was used for primary production. However, in an earlier decision. Incorrectly claimed the principal place of residence exemption ? Failed to notify Revenue NSW of any change in the use of land ? Revenue NSW expects to recoup approximately $100m in unpaid land tax in the first year of this crackdown.

This suggests that there are many instances of self. In a decision handed down on Mon 8. Appeal Panel of the NSW Civil and Administrative Tribunal refused a taxpayer leave to appeal an earlier decision which had refused the primary production land tax exemption for bee-keeping. Andrew Rider, CTA, is a recognised Doyle’s Guide leading Australian tax barrister, specialising in land tax , payroll tax and stamp duty litigation and dispute resolution.

Prior to coming to the Bar, Andrew was a solicitor and Associate to Justice Michael Kirby. Andrew lectures in taxation law at the University of Sydney Law School and previously lectured at the University of Technology. In NSW the exemption extends to any other property that is an integral part of the business of primary production , such as a water license.

In other jurisdictions, the exemption covers personal property used to carry on the business. This may include a parcel of land , used as the owner’s residence, which is adjacent to the land used for primary production. If land is owned by a trustee of a special trust the land tax threshold does not apply and land tax will be charged at a flat rate of 1. There are a number of exemption and concessions available.

For instance primary production land is exempt from land tax.