Written by From the 2025 Land Tax Year, principal place of residence (PPR) exemption will only be available to owners who own at least 25% of the property, either solely or jointly, and meet PPR eligibility requirements as set out by Revenue NSW. These include basic conditions to use and occupy the property as their principle place, only claim one exemption per family worldwide, be a natural person and have continuously used the property solely for residential purposes before the relevant taxing date of 31 December. A PPR can be parcel of residential land or a strata lot (e.g. caravan on land does NOT constitute a building as it is mobile and ‘not affixed’).
Further, only particular portions of PPRs may be used as rentals and workspaces, and if renovation is undertaken before moving into a PPR, individuals must use the house for 6 months following the completion of construction. These details can be proven by providing accepted documents like utility bills, removalist invoices, licence address history or insurance papers. Council land and water rates are not accepted. If individuals believe they should be exempt but do not meet these criteria, they may consult the Chief Commissioner of State Revenue.
Residents may apply via Land Tax Online by 31 March or the due date on their notice of assessment. Landowners who are eligible to claim a PPR exemption prior to 1 February 2024 and own less than a 25% share in the property may continue to claim the exemption for the 2024-25 tax years. Landowners who purchase or acquire a property on or after 1 February 2024 and do not meet the minimum ownership requirement will become liable for land tax starting from the 2025 land tax year.