REIWA CEO Cath Hart said new measures extending land tax exemptions represent a welcome saving for people currently building new homes or renovating.
“The ongoing delays in the building industry have pushed completion times out significantly. This is not only putting a strain on the property market, it’s also putting a strain on people’s finances,” Ms Hart said.
“Land tax is just one of the extra costs people are facing if their home takes longer than two years to complete.
“The Cook Government has announced a temporary extension to the two-year land tax exemptions.
“This will offer some relief for those building or renovating while also juggling the costs of a mortgage or rent on their current residence.”
The temporary extension is available to homeowners who signed their building contract between 1 July 2020 and 30 June 2023.
Eligible homeowners who are not receiving an exemption for another residence may now receive an exemption for:
- the first three assessment years that their residence is being constructed; and
- an additional fourth year in very limited circumstances, such as builder liquidation.
Eligible homeowners who are receiving an exemption for a second residence:
- will no longer be required to repay two years of land tax if they are unable to meet the two-year construction timeframe; and
- may receive an exemption for an additional third year in exceptional circumstances outside their control, including situations where delays were caused by demonstrated material or labour shortages.
Homeowners who are eligible for the temporary exemption and have already paid land tax will be eligible for a refund.
Sourced from REIWA