A new Affordable Housing Land Tax Concession is now available for eligible property developers where land is used to create affordable housing.
What is the Affordable Housing Land Tax Concession?
The Affordable Housing Land Tax Concession will provide eligible property developers with an ex gratia concession where land being used to develop affordable housing has been aggregated for land tax with other land they own. The ex gratia relief is limited to one financial year for each property.
What does “affordable housing” mean?
To be eligible for the Concession, the home must meet the criteria for affordable housing under the South Australian Housing Trust Regulations 2010 and as published in the SA Government Gazette.
The criteria include:
- Having a legally binding agreement in place for the purposes of development authorisation; and
Properties are advertised for sale to an eligible home buyer at a price point equal or below those published annually in the SA Government Gazette.
The current price points (from February 2020) are:
- $365,000 for Greater Adelaide
- $296,000 for the rest of the state
- A 15% price increase on the above is permissible where other criteria, such as energy efficiency or proximity to public transport, are met.
RevenueSA will be liaising with SA Housing Authority to verify lots created for affordable housing before the concession is applied.