54Principal place of residence exemption

54 Principal place of residence exemption (1) Subject to this Division, the following land is exempt land— S. 54(1)(a) amended by No. 46/2019 s. 29(1). (a) land owned by a natural person (who is not a person specified in subsection (4A)) that is used and occupied as the principal place of residence of that person; S. 54(1)(ab) inserted by No. 68/2007 s. 18(1). (ab) land owned by a person that is used and occupied as the principal place of residence of a natural person who has a right to reside on that land; S. 54(1)(b) amended by Nos 76/2012 s. 5(1), 18/2023 s. 44(1)(a). (b) land owned by a trustee of a trust that is used and occupied as the principal place of residence of a vested beneficiary in relation to the land; S. 54(1)(c) inserted by No. 18/2023 s. 44(1)(b). (c) land owned by an immediate family member of a person with a disability (qualifying) that is used and occupied as the principal place of residence of the person with a disability (qualifying). S. 54(1A) inserted by No. 68/2007 s. 18(2). (1A) Despite subsection (1)(ab), land referred to in that subsection is not exempt land unless— (a) immediately before the natural person who has a right to reside on the land was granted the right, the land was exempt land under section 54(1)(a) or (b); and (b) that person is not entitled to— S. 54(1A)(b)(i) amended by No. 76/2012 s. 5(2). (i) an exemption under this Division in respect of any land; or S. 54(1A)(b)(ii) amended by No. 76/2012 s. 5(2). (ii) an exemption from land tax under a law of any other State or Territory that corresponds to this Division. S. 54(1B) inserted by No. 47/2020 s. 48(1), amended by No. 18/2023 s. 44(2). (1B) Despite subsection (1)(b) or (c), land referred to in that subsection is not exempt land if rent is paid by or on behalf of the vested beneficiary or person with a disability (qualifying) for use and occupation of the land in the year preceding the tax year. S. 54(2) amended by Nos 68/2007 s. 18(3), 76/2012 s. 5(3), 47/2020 s. 48(2), 18/2023 s. 44(3). (2) Subject to sections 55 and 55A, subsection (1)(a), (b) or (c) only applies if the land has been used and occupied as the principal place of residence of the owner, vested beneficiary or person with a disability (qualifying) (as the case requires)— (a) since 1 July in the year preceding the tax year; or (b) if the owner or trustee became the owner of the land on or after 1 July in the year preceding the tax year, since a later date during that year. S. 54(3) amended by No. 76/2012 s. 5(4), substituted by No. 17/2019 s. 35(1). (3) In addition to land of an owner that is used and occupied as a person's principal place of residence (***the PPR land***), land is also exempt land if— (a) the land is owned by the owner of the PPR land; and (b) the land is contiguous with the PPR land or separated from the PPR land only by a road or railway or other similar area across or around which movement is reasonably possible; and (c) the land enhances the PPR land; and (d) the land is used solely for the private benefit and enjoyment of the person who uses and occupies the PPR land and has been so used— (i) since 1 July in the year preceding the tax year; or (ii) if the owner or trustee became the owner of the land on or after 1 July in the year preceding the tax year, so used and occupied since a later date during that year; and (e) the land does not contain a separate residence; and (f) both the land and the PPR land are wholly in regional Victoria. S. 54(3A) inserted by No. 17/2019 s. 35(1). (3A) In addition to land of an owner that is used and occupied as a person's principal place of residence (***the PPR land***), land is also exempt land if— (a) the land is owned by the owner of the PPR land; and (b) the land and the PPR land are both units in the same strata subdivision; and (c) the land is used primarily for one or both of the following purposes— (i) parking a motor vehicle; (ii) a storage facility; and (d) the land does not contain a separate residence; and (e) the land is used for the purposes specified in paragraph (c) by the person who uses and occupies the PPR land and has been so used— (i) since 1 July in the year preceding the tax year; or (ii) if the owner or trustee became the owner of the land on or after 1 July in the year preceding the tax year, so used and occupied since a later date during that year. (4) This section applies to land whether owned by a sole owner or joint owners. S. 54(4AA) inserted by No. 18/2023 s. 44(4). (4AA) For the purposes of subsection (1)(c), if the land is owned by joint owners, each joint owner must be an immediate family member of the person with a disability (qualifying) who is using and occupying the land as the person's principal place of residence. S. 54(4A) inserted by No. 46/2019 s. 29(2). (4A) For the purposes of subsection (1)(a), the following persons are specified— (a) a trustee of a trust (including an implied or constructive trust) to which the land is subject; (b) a beneficiary of a trust (including an implied or constructive trust) to which the land is subject; (c) a unitholder in a unit trust scheme to which the land is subject. S. 54(5) inserted by No. 17/2019 s. 35(2). S. 54(5) def. of *regional Victoria* amended by No. 22/2021 s. 20. ***regional Victoria*** has the same meaning as in section 18(8) of the **First Home Owner Grant and Home Buyer Schemes Act 2000**; ***strata subdivision*** has the same meaning as in the **Transfer of Land Act 1958**.