The Queensland Office of State Revenue (OSR) has issued a mail out to promote voluntary compliance for landholders with a land tax home exemption. In connection with that program, the OSR issued the following advice to the Institute, and other consulted bodies:
The OSR notes that when a landholder applies for and is granted a land tax home exemption, they are notified that the exemption will continue to apply until the property is sold, or the client advises OSR that their circumstances have changed, or the Commissioner becomes aware of a change in circumstances. A change in circumstance may include:
- ceasing to use the property as their home
- occupying another property for more than 6 months in the year
- entering into any rental agreements of all, or part, of their home
- operating a business from their home.
As part of OSR’s compliance program, it will be contacting all clients with a home exemption to ensure that it has the latest information regarding the exemption. The program of client engagement will be progressed with a phased approach, commencing in January 2015. The first phase will test four different letter formats/styles to see which is the most effective in engaging with the clients who need to take action, i.e. let OSR know of any change in their circumstances with regard to the home exemption. Just over 12,000 letters were sent in January 2015.
The results of the trial will then be applied to the remaining individual landholders with a home exemption, before moving to the trusts and companies, providing all these clients with the opportunity to let OSR know if there has been a change. In some instances, a change of circumstance may mean that the landholder has a land tax liability.