Queensland Consolidated Acts

LAND TAX ACT 2010 - SECT 39

39 Land used for non-exempt purpose

(1) This section applies if land is used as the home of a person (the
"principal resident" ) for a financial year (the
"relevant financial year" ).

(2) The commissioner may decide the land is used for a
"non-exempt purpose" if—

(a) the commissioner is satisfied that, when a liability for land tax arises for the relevant financial year, the land is being used for any purpose other than as the home of the principal resident; and

(b) the commissioner is satisfied that use of the land for purposes mentioned in paragraph (a) is substantial; and

(c) section 40 does not apply.

(3) For deciding whether use of the land for purposes mentioned in subsection (2) (a) is substantial, the commissioner must have regard to each of the following factors—

(a) whether a person other than the principal resident has been given a right to occupy part of the land under a tenancy agreement;

(b) whether a person, other than the principal resident or a member of the principal resident’s family who uses the land as his or her home, carries out work on the land as an employee or contractor, other than work related to the land itself or a building located on the land;

(c) the extent to which a person uses the land, or has set the land aside for use, for purposes mentioned in subsection (2) (a) ;

Examples—

1 Two rooms of a house on the land are set aside for a hairdressing business.

2 A shed on the land is used for a repair business.

3 A retail shop is operated at the front of a house on the land.

(d) whether the gross income generated during the financial year immediately before the relevant financial year from business or an income producing activity on the land is more than—

(i) an amount prescribed under a regulation; or

(ii) if no amount is prescribed under a regulation—$30,000;

(e) any other relevant matter.