Queensland Consolidated Acts

LAND TAX ACT 2010 - SECT 40

40 Land not used for non-exempt purpose—allowable lettings and work from home arrangements

(1) The commissioner may not decide land is used for a non-exempt purpose if—

(a) the land is used as the home of a person (the
"principal resident" ) for a financial year; and

(b) when a liability for land tax arises for the financial year, either or both of the following apply—

(i) there is a permitted number of allowable lettings for the land;

(ii) a person who resides on the land carries out work on the land, other than excluded work, as an employee under an arrangement with the person’s employer; and

(c) the commissioner is satisfied the land is used only for the purposes mentioned in paragraphs (a) and (b) when a liability for land tax arises for the financial year.

(2) There is an
"allowable letting" for the land if—

(a) a person (the
"occupant" ) other than the principal resident has been given the right to occupy a residential area on the land (the
"leased area" ) under a tenancy agreement; and

(b) the leased area is not more than 50% of the total floor area of all residential areas on the land; and

(c) the leased area is not a residential area that—

(i) is 1 of 3 or more flats in a building; and

(ii) is not used for residential purposes by the principal resident; and

(d) the leased area is used by the occupant for residential purposes; and

(e) the occupant has not given the right to occupy any part of the area to another person under a tenancy agreement; and

(f) the rent payable for the leased area is not more than the market rent for the area.

(3) The
"permitted number" , of allowable lettings for the land, means—

(a) 1 allowable letting; or

(b) 2 allowable lettings, if—

(i) at least 1 of the lettings is a family letting; and

(ii) the total floor area of the leased areas for the lettings is not more than 50% of the total floor area of all residential areas on the land.

(4) An allowable letting is a
"family letting" if the occupant is a member of the principal resident’s family.

Note—

If there is a family letting for the land and the land is used for a non-exempt purpose, the family letting may be included in the use of the land as a home for the purpose of a partial exemption. See section 42 .

(5) In this section—

"excluded work" means work involving use of the land for a purpose for which, or in a way in which, residential land is not ordinarily used.

Example of work that would be excluded work—

manufacturing work carried out in a shed

Example of work that would not be excluded work—

office work carried out under a telecommuting arrangement in a home study