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We are building our new home on a vacant block of land? Am I liable for land tax on that block of land?

Transcript

We are building our new home on a vacant block of land, am I liable for land tax on that block of land?

The principal place of residence exemption is only available where there is a house affixed to the land and that house has a certificate of occupancy.

This means that the principal place of residence exemption is not available for vacant land or while the house is being constructed.

Once construction of the new house is completed, you may be eligible for a refund of land tax paid during the construction process. To be eligible for this refund, a certificate of occupancy must have been issued, and you must have occupied your new home as your principal place of residence for a minimum period of 6 months. 

It is important to note that you cannot have derived any rental income in relation to that property during the period you are seeking a refund for.

The refund is payable for up to two years if you didn’t live in another house you owned during the construction period or for one year, if you did. You may be eligible for a refund for an additional two years if there have been acceptable delays during construction and if certain other requirements are met.

Refund applications must be made in writing and provide supporting documentary evidence, including a copy of your occupancy permit and some utility bills. 

Last modified: 6 October 2020
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