New South Wales Consolidated Acts

LAND TAX MANAGEMENT ACT 1956 - SECT 9D

9D Reduction in land value for single dwellings on mixed use land

(1) For the purpose of assessing land tax, the land value of mixed use land on which is situated one single dwelling is to be reduced by the allowable proportion in relation to the dwelling.

(2) The allowable proportion for the dwelling is to be determined in accordance with whichever of the following paragraphs is applicable in the particular case:

(a) if there is an apportionment factor entered in the Register in respect of that land value-the proportion determined by deducting that apportionment factor from 1,

(b) if paragraph (a) is not applicable-the proportion specified in an application for a reduction under this section as the fair and reasonable proportion of the land value of the land to be attributed to the dwelling, subject to subsections (3) and (4).

(3) If there is no apportionment factor entered in the Register in respect of the land value of the land, the Chief Commissioner may request the Valuer-General to determine the apportionment factor in respect of the land concerned.

(4) If a request is made under subsection (3):

(a) the Valuer-General must determine the apportionment factor concerned and enter it in the Register, and

(b) the allowable proportion for the dwelling must be determined in accordance with subsection (2) (a).

(5) Apportionment factors for the purposes of this section are to be ascertained in accordance with Division 5A of Part 1B of the Valuation of Land Act 1916 . If such an apportionment factor is expressed as a percentage, the apportionment factor is, for the purposes of this section, to be converted to a fraction.

Note: Division 5A of Part 1B of the Valuation of Land Act 1916 allows objections to be made against the amount of an apportionment factor.

(6) The reduction under this section applies only if the following requirements are satisfied:

(a) the single dwelling must be used and occupied by the owner of the land (or one of the owners) as his or her principal place of residence and for no other purpose, in which connection the use of the land for the purpose of one, but not more than one, residential occupancy other than that of the owner under lease or licence from the owner may be disregarded if it is an excluded residential occupancy (within the meaning of clause 4 of Schedule 1A),

(b) an owner of the land who occupies the dwelling must not be an owner merely because of being a trustee,

(c) the owner of the land must not be a company or company jointly with another person or other persons, except in either case a trustee company acting in its representative capacity.

(6A) For the purposes of determining whether a single dwelling has been used and occupied by an owner of land as his or her principal place of residence under subsection (6) (a), clauses 8, 9 and 10 of Schedule 1A apply in respect of the single dwelling, and that part of the land on which the dwelling is situated, in the same way as they apply in respect of land under the principal place of residence exemption.

Note: The effect of this provision is to deem a single dwelling to be used and occupied by the owner of the land as a principal place of residence in certain circumstances, similar to the principal place of residence exemption. As a consequence, the land value of the mixed use land on which the single dwelling is situated can be reduced by the allowable proportion under this section.

(7) Unless the land concerned is land to which subsection (2) (a) applies, there is to be no reduction under this section unless:

(a) application has been made for the reduction by all the owners of the land, specifying the proportion that in their opinion is a fair and reasonable proportion of the land value of the land to be attributed to the dwelling, and

(b) the application is made in a form approved by the Chief Commissioner.

(8) For avoidance of doubt, if a reduction in the land value of land is required under this section and the land is jointly owned, then, for the purposes of section 27 (3) (a), the individual interest of each of the owners of the land (including the owner who occupies the dwelling) is to be assessed on the basis of the land value of the land as reduced under this section.

(9) For the purposes of applying this section in respect of land on which there is a single dwelling and a residential occupancy other than that of the owner, the use of the land for the purpose of that other residential occupancy may be disregarded if that residential occupancy may be disregarded under the principal place of residence exemption under Schedule 1A.

(10) This section does not apply to land to which section 21B applies.

(11) In this section:
"mixed use land" has the same meaning as in Division 5A of Part 1B of the Valuation of Land Act 1916 .
"single dwelling" has the same meaning as it has in Division 5A of Part 1B of the Valuation of Land Act 1916 .