Charitable land waiver
A waiver is available for land owned by a charity if the land is used and occupied by a charity exclusively for charitable purposes for 15 years after the rezoning.
Land that is owned by a charity and is used and occupied by a charity exclusively for charitable purposes will be eligible for a waiver of the windfall gains tax, subject to the land continuing to be used and occupied exclusively for charitable purposes for 15 years continuously after the rezoning.
The charitable land waiver uses a definition for charitable land which is similar to the test in the charity exemption for land tax. The definition of a charity is based on the common law definition of a charity.
What constitutes a charitable organisation?
University land exemption
An exemption from windfall gains tax is available for land owned by a university that is rezoned by a WGT event.
To be entitled to the exemption, the university must:
- be a charity
- satisfy the Commissioner that any land revenue from the rezoned land will be used to further the university's charitable purposes.
- provide the Commissioner with a declaration as to:
- the nature and intended application of the land revenue, and
- how the application of the land revenue will further the university's charitable purposes.
Charitable or university land — frequently asked questions
What if the land ceases to be used for a charitable purpose before 15 years?
If the land remains owned by the same charity, but ceases to be used and occupied exclusively for charitable purposes within 15 years of the rezoning event, the land will not be eligible for the waiver.
In this situation, the deferral of the liability will continue until the next dutiable transaction, or until 30 years after the rezoning event, whichever comes first.
If the land is sold to an entity that is not a charity within 15 years:
- the land will not be eligible for the waiver
- the tax liability will be payable at the point of sale.
What if charitable land is sold before 15 years to another charity?
If the land is sold by the charity to another charity and the land will continue to be used and occupied exclusively for charitable purposes, the new charity can elect to assume the windfall gains tax liability.
In this case:
- the land will remain eligible for the tax waiver
- the 15-year condition will continue to apply from the point of the rezoning decision and will not reset on transfer of the land.
If no election is made, the waiver will not apply and the liability will be payable at the point of sale, being a dutiable transaction.