What has changed?
The Land Tax Act 2004 (ACT) changed on 24 November 2015. Previously ACT land owned by a company and used to build residential premises for sale was automatically exempt from land tax for 2 years.
Now, a company carrying on business as a builder or land developer must apply in writing for a declaration that a parcel of ACT land is exempt from land tax. The company will be eligible for the declaration if the parcel is used by the company only to construct new residential premises and if the new residential premises are to be sold by the company when finished.
Once a declaration is given, the exemption applies for 2 years beginning on the first day of the first quarter after the company becomes the owner of the land.
What should you do?
ACT developers must now apply for land tax relief using the Application for a Builder’s Land Tax Exemption Form, which can be found at www.revenue.act.gov.au
For more information contact the Property Commercial and Finance Team: