9EReduction in land value for certain build-to-rent properties—time limited

#### 9E Reduction in land value for certain build-to-rent properties—time limited 9E Reduction in land value for certain build-to-rent properties—time limited > > (1) This section applies in respect of land owned by a person at midnight on 31 December in any year (ending with midnight at the end of 31 December 2039). > > > > Note. > > > > Under section 3AL of the [Land Tax Act 1956](/view/html/inforce/current/act-1956-027), land tax is charged, levied, collected and paid for the period of 12 months commencing on 1 January in the next succeeding year for land owned at midnight on 31 December in any year. So this reduction provision applies until the end of the 2040 land tax year. > > > (2) For the purpose of assessing land tax, the land value of a parcel of land is to be reduced by 50% if— > > > > > (a) a building is situated on the land, and > > > > > (b) construction of the building commenced on or after 1 July 2020, and > > > > > (c) the Chief Commissioner is satisfied that a significant proportion of the labour force hours spent on the construction of the building involves or involved work performed by persons whom the Chief Commissioner considers belong to any one or more of the following classes of worker— > > > > > > > (i) apprentices or trainees, > > > > > > > (ii) long-term unemployed workers, > > > > > > > (iii) workers requiring upskilling, > > > > > > > (iv) workers with barriers to employment (such as persons with disability), > > > > > > > (v) Aboriginal jobseekers, > > > > > > > (vi) graduates, and > > > > > (d) the Chief Commissioner is satisfied that the building is being used and occupied for a build-to-rent property in accordance with guidelines approved by the Treasurer for the purposes of this section, and > > > > > (e) an application for the reduction is made in accordance with this section. > > > (3) The guidelines may include provisions with respect to the following— > > > > > (a) the circumstances in which a building is taken to be a build-to-rent property, including in relation to the following— > > > > > > > (i) the planning or development standards that must be complied with, > > > > > > > (ii) the minimum lease conditions that must be offered to tenants of the build-to-rent property, > > > > > > > (iii) the minimum scale of a building to qualify as a build-to-rent property, > > > > > > > (iv) the nature of the ownership and management of the building and the land on which the building is situated, > > > > > (b) the circumstances in which the applicant is required to give an undertaking to not subdivide the land or otherwise divide the ownership of the land, > > > > > (c) other matters relating to build-to-rent properties and the land on which build-to-rent properties are situated as the Treasurer determines appropriate. > > > (4) The guidelines must include policies to promote the development of new affordable housing and social housing in build-to-rent properties. > > > (5) Without limiting the other ways in which this section may cease to apply to a person, it ceases to apply to a person if the person breaches an undertaking given as referred to in subsection (3)(b). > > > (6) A guideline may— > > > > > (a) apply generally or be limited in its application by reference to specified exceptions or factors, or > > > > > (b) apply differently according to different factors of a specified kind, > > > > or both. > > > (7) If the Chief Commissioner is satisfied that only part of a parcel of land is being used and occupied for a build-to-rent property, the reduction in land value under subsection (2) is to be proportionately decreased in accordance with guidelines approved by the Treasurer for the purposes of this section. > > > (8) This section does not apply to an owner of land in respect of a tax year unless— > > > > > (a) the owner applies to the Chief Commissioner for the reduction, in the form approved by the Chief Commissioner, and > > > > > (b) the owner furnishes the Chief Commissioner with the evidence that the Chief Commissioner requests for the purpose of enabling the Chief Commissioner to determine whether there is an entitlement to the reduction. > > > (9) However, if, within the period of 15 years after subsection (2) first applied to reduce the land value of a parcel of land, the land is subdivided or the ownership of the land is otherwise divided— > > > > > (a) a person whose liability to pay land tax in respect of the land has been assessed in accordance with this section must, within 1 month, inform the Chief Commissioner of the date on which the land was subdivided or the ownership of the land was otherwise divided, and > > > > > (b) liability for land tax in respect of the following years is to be reassessed as if subsection (2) had not applied to the person— > > > > > > > (i) the year in which the land is subdivided or the ownership of the land is otherwise divided, > > > > > > > (ii) each preceding year in which a person’s liability to pay land tax was assessed in accordance with this section, but not more than 15 preceding years, and > > > > > (c) the subdivision or division is taken to be a tax default for the purposes of Part 5 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097). > > > (10) For the purposes of section 9(3)(c) of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), any such reassessment is authorised to be made more than 5 years after the initial assessment. > > > (11) Any reassessment is not a relevant land tax assessment for the purposes of section 35(1)(b) of the [Valuation of Land Act 1916](/view/html/inforce/current/act-1916-002) if it is based on the same land value or average value on which the original land tax assessment was based (before the reduction was made under subsection (2) of this section). > > > (12) In this section— > > > > affordable housing has the same meaning as in the [Environmental Planning and Assessment Act 1979](/view/html/inforce/current/act-1979-203). > > > > social housing means residential accommodation provided by a social housing provider within the meaning of the [Residential Tenancies Act 2010](/view/html/inforce/current/act-2010-042). > > **s 9E:** Ins 2020 No 19, Sch 3\[2\]. Am 2025 No 59, Sch 3\[1\].