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  • Writer's pictureBelinda Konik

Changes to the Principal Place of Residence Land Tax Exemption – Do they affect you?

Previously, individuals who owned and occupied a property as their principal place of residence (PPR) were exempt from paying annual Land Tax, provided they met the eligibility criteria. However, the 2023/2024 New South Wales State Government budget announcement amended the Land Tax Management Act 1956, changing the PPR Land Tax exemption eligibility criteria.


From 1 March 2024, to continue to be eligible for and claim the PPR Land Tax exemption, in addition to meeting the existing eligibility requirements, individuals must own a minimum of a 25% interest in the property, either solely or combined.


Transitional arrangements were in place for existing property owners which meant that, those individuals previously claiming the PPR Land Tax exemption, but who owned less than a 25% interest in the property, could continue to claim the exemption, but only for the 2024 and 2025 Land Tax years. However, the PPR exemption needed to be claimed by 31 January 2024.


Going forward, individuals who own less than a 25% interest in the property will be required to pay Land Tax from the 2026 Land Tax year onwards. Further, individuals who purchase property on or after 1 February 2024, and who own less than a 25% interest in the property, will no longer be eligible to claim the PPR Land Tax exemption.


This article is not legal advice, and the views and comments are of a general nature only. This article is not to be relied upon in substitution for detailed legal advice.


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