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I don't understand the question. Can you reword to make it clearer?
Couple points.
Land Tax is calculated as of 31 Dec each year for NSW.
(For example, if Person A has an IP which subject to land tax, if they offload (settle) prior to 31 Dec, they won't be subject to land tax on that property. It is not pro-rata).
My understanding (and I could be wrong), you are allowed to nominate a property as a PPR while you live elsewhere and the PPR exemption continues. You are only allowed to have ONE PPR nominated.
Clause 2 also has the joint owner problem. Often found with siblings and friends who invest. Its FORCES the owners to each have just one residence. The OSR often penalise some who inadvertently misunderstand this issue.
What does this actually mean?
It depends, is the correct answer.
If the land is classified as exempt then it is not subject to tax. There is not an actual "PPOR" test as such. It is one of the exemptions. Clause 2. However if you don't PRINCIPALLY RESIDE for the nominated period of six months you may need to satisfy the Commissioners Rulings contained in Schedule 1 of the Act. There are 16 exemptions / concessions but each must be carefully considered and may require a application to be valid..
http://www.osr.nsw.gov.au/info/legislation/rulings/land/lt082v2
Hi,
I am wondering if I am liable to land tax if we "move" to our parents house to be in a local area of a school we like, but nominate an "unoccupied" house as PPOR?
Thanks
Chilli, unfortunately it's common practice. At my school we caught one family that paid for someone's electricity in order to get their name on it so they could get in.
Others buy IP's in the area and say they are living there. Only caught out if the tenants kids go to school. Some families try to register all the family's kids.
We have those that turn up on the first day thinking we'll just take the kids and get the paperwork later. Nope- they have to provide the paperwork then we check, THEN they can bring the kids. We've learnt that trick.
Frustrating I know.
Think the rule is not so strict as it allows concession "If the owner INTENDS to use and occupy the land solely as his or her principal place of residence" but the clause applies only in ther periof of 4 tax years immediately following the year in which the person became owner of the land