88AHoliday home exemption

88A Holiday home exemption (1) Land is exempt from vacant residential land tax if— S. 88A(1)(a) amended by No. 46/2019 s. 19(1), substituted by No. 38/2023 s. 27B. (a) in the year preceding the tax year— (i) the owner of the land or a vested beneficiary of a trust to which the land is subject used and occupied other land in Australia as a principal place of residence; and (ii) the owner of the land or a vested beneficiary of a trust to which the land is subject, or a relative of the owner or vested beneficiary, used and occupied the land as a holiday home for a period of at least 4 weeks (whether continuous or aggregate); and (b) the Commissioner is satisfied that the land was used and occupied as a holiday home in that year. S. 88A(1A) inserted by No. 22/2024 s. 13(1) (as amended by No. 50/2024 s. 52(1)). (1A) Land is exempt from vacant residential land tax if— (a) the owner of the land is a corporation that either— (i) owned the land on 28 November 2023; or (ii) became the owner of the land on a date occurring after 28 November 2023 under a contract for the purchase of the land that was entered into on or before 28 November 2023; and (b) the owner of the land has been the owner continuously since the relevant date referred to in paragraph (a)(i) or (ii); and (c) since the relevant date referred to in paragraph (a)(i) or (ii), any transfer of shares in the corporation has been between persons who are relatives of one another; and (d) the PPR requirement is satisfied; and (e) in the year preceding the tax year, the land has been used and occupied as a holiday home for a period of at least 4 weeks (whether continuous or aggregate) by a specified person; and (f) the Commissioner is satisfied that the land was used and occupied as a holiday home in the year preceding the tax year. S. 88A(1B) inserted by No. 22/2024 s. 13(1) (as amended by No. 50/2024 s. 52(1)). (1B) Land is exempt from vacant residential land tax if— (a) the owner of the land is a trustee of a trust (other than a trust with a vested beneficiary); and (b) the land became subject to that trust— (i) on or before 28 November 2023; or (ii) on a date occurring after 28 November 2023 under a contract for the purchase of the land that was entered into on or before 28 November 2023; and (c) the land has been subject to that trust continuously since the relevant date referred to in paragraph (b)(i) or (ii); and (d) since the relevant date referred to in paragraph (b)(i) or (ii)— (i) for a unit trust scheme, any transfer of units in the scheme has been between persons who are relatives of one another; or (ii) for a fixed trust, any transfer of a beneficial interest in the trust property has been between persons who are relatives of one another; or (iii) for a discretionary trust, any change to the specified beneficiaries has been a change to add or remove a person who is a relative of another specified beneficiary; and (e) the PPR requirement is satisfied; and (f) in the year preceding the tax year, the land has been used and occupied as a holiday home for a period of at least 4 weeks (whether continuous or aggregate) by a specified person; and (g) the Commissioner is satisfied that the land was used and occupied as a holiday home in the year preceding the tax year. S. 88A(2) amended by No. 22/2024 s. 13(2)(a) (as amended by No. 50/2024 s. 52(2)). (2) In considering whether or not the Commissioner is satisfied for the purposes of subsection (1)(b) or (1A)(f) or (1B)(g), the Commissioner must have regard to— (a) the location of the land; and S. 88A(2)(b) amended by No. 46/2019 s. 19(2), substituted by No. 22/2024 s. 13(2)(b). (b) the distance between the location of the land and the principal place of residence of the owner, the vested beneficiary, a shareholder, unitholder, beneficiary or specified beneficiary (as the case requires); and (c) the nature and frequency of the use of the land. S. 88A(3) amended by No. 22/2024 s. 14(1). (3) Subject to subsection (3A), an owner who is entitled to an exemption from vacant residential land tax under this section in a tax year is not entitled to an exemption under this section in respect of any other land in that tax year. S. 88A(3A) inserted by No. 22/2024 s. 14(2) (as amended by No. 50/2024 s. 53). (3A) In addition to land of an owner that is exempt from vacant residential land tax under subsection (1), (1A) or (1B) (***the holiday home land***), land is exempt from vacant residential land tax if— (a) the land is residential land within the meaning of section 34B(2B); and (b) the land is owned by the owner of the holiday home land; and (c) the land is contiguous with the holiday home land or separated from the holiday home land only by a road or railway or other similar area across or around which movement is reasonably possible; and (d) the land enhances the holiday home land; and (e) the land is used solely for the private benefit and enjoyment of the person who uses and occupies the holiday home land. S. 88A(4) inserted by No. 46/2019 s. 19(3). (4) For the purposes of this section, a reference to the owner of land does not include a reference to— S. 88A(5) inserted by No. 22/2024 s. 13(3) (as amended by No. 50/2024 s. 52(3)). ***PPR requirement*** means the requirement that— (a) for a corporation, at least 50% of the shares of the corporation are directly or indirectly owned by one or more natural persons who, in the year preceding the tax year, used and occupied other land in Australia as a principal place of residence; or (b) for a unit trust scheme, at least 50% of the units in the scheme are directly or indirectly owned by one or more natural persons who, in the year preceding the tax year, used and occupied other land in Australia as a principal place of residence; or (c) for a fixed trust, at least 50% of the beneficial interest in the trust property is held directly or indirectly by one or more natural persons who, in the year preceding the tax year, used and occupied other land in Australia as a principal place of residence; or (d) for a discretionary trust, a specified beneficiary of the trust who is a natural person or a relative of that person, in the year preceding the tax year, used and occupied other land in Australia as a principal place of residence; ***specified person*** means— (a) for a corporation, a natural person referred to in paragraph (a) of the definition of ***PPR requirement*** or their relative; or (b) for a unit trust scheme, a natural person referred to in paragraph (b) of the definition of ***PPR requirement*** or their relative; or (c) for a fixed trust, a natural person referred to in paragraph (c) of the definition of ***PPR requirement*** or their relative; or (d) for a discretionary trust, a natural person, including a relative, referred to in paragraph (d) of the definition of ***PPR requirement***. S. 88A(6) inserted by No. 22/2024 s. 13(4) (as amended by No. 50/2024 s. 52(4)). (6) For the purposes of the definition of ***PPR requirement***, any shares or units owned or beneficial interest held by the trustee of a discretionary trust are taken to be owned or held by a natural person who is a specified beneficiary of the discretionary trust. S. 88AB inserted by No. 50/2024 s. 41. 88AB Exemption continues on death of certain persons (1) If land that is exempt land under section 88A(1) is owned by a natural person and the person dies, the land continues to be exempt land if, in the year preceding the tax year, a relative of the person— (a) used and occupied the land as a holiday home for a period of at least 4 weeks (whether continuous or aggregate); and (b) used and occupied other land in Australia as a principal place of residence. (2) Subsection (1) applies until the earlier of— (a) the third anniversary of the person's death or the expiry of the further period approved by the Commissioner under subsection (5); or (c) the day on which the person's interest in the land vests in a person (other than the person's personal representative) under the administration of the person's estate. (3) If land that is exempt land under section 88A(1A) is owned by a corporation with a sole shareholder who is a natural person and the person dies, the land continues to be exempt land if, in the year preceding the tax year, a relative of the person— (a) used and occupied the land as a holiday home for a period of at least 4 weeks (whether continuous or aggregate); and (b) used and occupied other land in Australia as a principal place of residence. (4) Subsection (3) applies until the earlier of— (a) the third anniversary of the shareholder's death or the expiry of the further period approved by the Commissioner under subsection (5); or (b) the day on which the shares in the corporation are transferred to another person (other than the person's personal representative) under the administration of the person's estate. (5) For the purposes of subsections (2)(a) and (4)(a), the Commissioner may approve a further period in any particular case. S. 88B inserted by No. 28/2017 s. 65, amended by No. 46/2019 s. 20(1)(a)(2) (ILA s. 39B(1)).