Land tax exemption – not as simple as you would think!

Land tax is an area that Revenue NSW is regularly targeting in their audits and investigations.

In our Tax & Super practice, we have advised and worked with a number of clients on two common land tax exemptions - the principal place of residence exemption and the primary production exemption.

Client wins on primary production

We have recently helped clients with successfully arguing that the "primary production" exemption under section 10AA of the Land Tax Management Act 1956 (NSW) (LTMA) applied to their land.

One client was issued with land tax assessments over the last six land tax years (up until 31 December 2024), totalling $226,000.

Revenue NSW initially took the view that the primary production exemption did not apply because the horses that were maintained on the property were for "recreational riding."