Record keeping for land tax
If you receive a land tax assessment, or have an exemption or partial exemption, you must keep accurate records as we may request them for a review or investigation.
This is to ensure we can determine your liability (as of 30 June of a given year) and substantiate your eligibility for the exemption.
Depending on the type of exemption, different types of records may need to be kept.
You must also update us if:
- your details change
- land is no longer exempt land
- there is a change to the part of the land that is exempt.
To meet your record keeping obligations, your records must be:
- legible
- accessible
- retained
- at the time an exemption is claimed
- when you receive a notice that an exemption has been applied
- when you receive an assessment
- kept for at least 5 years unless we advise otherwise.
Not meeting these obligations is an offence. It is also an offence to wilfully damage or destroy records.
Privacy and confidentiality
All information and records (electronic and hardcopy) we hold are protected by law, and are maintained in accordance with the:
- confidentiality provisions contained in the Taxation Administration Act 2001
- information privacy principles (for personal information) contained in the Information Privacy Act 2009.
Home exemption
If you have a home exemption, examples of records and evidence that prove you used your home as your principal place of residence include:
- telephone, electricity or gas bills
- home and contents insurance
- rates notices
- other records that confirm your address is recorded with regulatory authorities or service providers
- any other relevant evidence or information.
A home exemption can also be available for a trustee of a trust, where all the relevant beneficiaries of the trust use the land as their home.
So, in addition to the above records, other records to substantiate this exemption include:
- trust deed including any variations
- power of appointment(s) including beneficiary name(s)
- financial statements.
Primary production exemption
There is a variety of primary production activities, so records and evidence will depend on the industry type.
Examples that substantiate this exemption include:
- evidence from the Australian Taxation Office (ATO) that the person has received tax concessions or deductions as a primary producer
- financial statements, profit and loss, general ledgers
- business plans and work journals that prove you carrying on a business of primary production
- stock details (e.g. movement register, purchase and sales receipts, livestock register)
- asset register, including fixed assets
- records of sales
- purchase of specialised equipment, such as harvesters, pumps for irrigation or water supplies, sprayers
- agistor agreement (if the agistor was conducting a primary production business)
- leases, licences or other agreements with third parties
- maps, photos, or other evidence of the specified area of land used
- any other relevant evidence or information.
Subdivider discount
To remain eligible for the subdivider discount, you must keep records that prove:
- you continue to be the owner of the subdivided land
- and
- the relevant parcel
-
- is not developed land
- and
- is not held for further subdivision and has been held for sale.
Records and evidence to substantiate eligibility for this discount include:
- ownership of the larger parcel and then the subdivided parcels
- evidence it is still not developed land
- evidence that the land is and has been listed for sale with a real estate agent
- records relating to how long the land has been listed for sale
- advertising records
- timestamped images of ‘for sale’ signs on the property
- any other relevant evidence or information.
Once land has been improved, such as a construction of a building or other facility capable of being used, it is no longer eligible for the subdivider discount.
Trust aggregation and foreign trusts
The trustee of a trust or foreign trust is responsible for keeping records, including:
- power of appointment(s) for the relevant tax year
- trust deeds including any variations
- unit holders (if a unit trust), their share of interest, and details of the unit holders including their citizenship if they are an individual; or for a corporation the country of incorporation
- financial statements including information that details the distributions being made.
Absentees
For land tax, you are an absentee if all the following apply as of 30 June:
- you are a foreign individual (including New Zealand citizens)
- you do not hold a permanent visa
- you do not usually live in Australia.
If you are 1 of the above, and depending on your travel movements, you may have to keep your travel records and any other evidence to substantiate that you ordinarily reside in Australia and not overseas, and are therefore not an absentee.
Australian citizens and permanent visa holders are not deemed absentees.
If you are absent from Australia less than 5 years because of your employment with an Australian employer, you may not be considered an absentee.
However, you must keep records such as:
- your Australian employment contract
- your overseas employment contract.