Section 43A of the Land Tax Assessment Act 2002 provides a concession for the amount of land tax payable on subdivided lots owned at 30 June each year.
This concession allows subdividers to pay land tax and metropolitan region improvement tax on the lower undeveloped or englobo value of land holdings, rather than the full subdivided value of lots, for one year after the creation of the lots.
The unimproved value of each subdivided lot still held at 30 June immediately preceding the year of assessment will be calculated by apportioning the unimproved value of the land in its englobo state to the subdivided lot based on the lot’s area as a proportion of the land area of the englobo lot.
Conditions
Show moreThe concession will apply for the first year of assessment following the year in which the subdivided lots were created, subject to the following conditions
- The subdivision must have been approved in the previous year of assessment (i.e. between 1 July 2018 and 30 June 2019).
- The subdivider must still own the subdivided lot at 30 June immediately preceding the year of assessment for which the application for concession is made.
- An application for the concession must generally be made to the Commissioner of State Revenue no later than 31 August of the year of assessment. However, the Commissioner may grant an extension to a date no later than the following 30 June where reasonable grounds are shown. Nevertheless, early lodgment of the application form will ensure the concession is taken into account when the assessment is issued.
- The concession applies for one year of assessment following the creation of the lot.
- The subdivided lot must have been created for residential purposes.
- The subdivided lot must be vacant land to the extent that it does not have on it a building that may be used for residential purposes.
- The subdivided lot should not be more than 2,000m2 . A subdivided lot greater than 2,000m2 may be eligible for the concession if that lot is intended for a building or group of buildings that are solely for residential purposes and contain a number of residential units.
- The amount determined to be the concessional value of the lot will apply only if it is less than the unimproved value that would normally have applied for land tax purposes.
- Strata lots are not eligible for concessional treatment unless they are survey-strata lots.
Apply
Show moreLodge Application Form FLT43A ‘Concession Application: Land Tax Payable for Subdivided Lots’ by 31 August 2019 for the 2019-2020 year of assessment for eligible lots owned at 30 June 2019. Applications received after 31 August 2019 cannot be considered without reasonable grounds. The Commissioner cannot extend the time for lodging the application beyond 30 June 2020.
Early lodgment will ensure that the concession is taken into account when the assessment is issued.