Land rent scheme

Leases granted before 1 October 2013

Changes to the Land Rent Scheme on or after 1 October 2013 do not affect you if you already signed your contract for sale before this date.

Lessees from before 1 October 2013 also have no restriction on the transfer of their lease. The Government will continue to assess these lessees on lessee income only.

Land rent payable

Land rent lessees who signed their contract for sale before 1 October 2013 can access both the standard land rent rate of 4 per cent of the unimproved value of the leased land and the discount rate of 2 per cent of the unimproved value, depending on your circumstances. For more information on unimproved land value, visit Land valuations.

When we grant you a land rent lease, you start at the standard land rent rate. To apply for the discount rate, you must meet the eligibility criteria.

If you’re an eligible lessee, the discount land rent rate applies from the date we receive your application.

Eligibility for discount land rent rate

The following are the eligibility criteria for the discount land rent rate for Land Rent Scheme participants who signed their contract for sale before 1 October 2013:

  • Property ownership: If you’re a lessee, you cannot own any other real property (in any State or Territory in Australia or overseas) to remain eligible for the discount rate. If you acquire any other real property at any time during the land rent lease, you must pay the standard rate of land rent. Ownership includes having a legal or a beneficial interest.
  • Residency: At least one of the lessees must live in the home once you’ve been issued a Certificate of Occupancy. If you don’t meet this condition, you must pay the standard rate of land rent.
  • Income: The total annual income of all lessees for the previous financial year must not be more than the income threshold amount in Table 1 below. The income is assessed on lessee income only and does not include the income of any partner.

From 1 July 2019, income thresholds have changed for pre-1 October 2013 leases, see: Taxation Administration (Amounts Payable - Land Rent) DI2019-143.

Table 1 – Total gross income threshold for discount land rent rate (before 1 October 2013)

Number of dependent children

Total gross income threshold











5 or more


Annual review

If we have approved you for the discount rate of land rent, you need to confirm by 30 September every year that your annual income is still less than the relevant income threshold amount using the Discount Land Rent Form.

We conduct an annual review of lessees' income to determine your continuing eligibility for discounted land rent.

If you’re no longer eligible for the discounted land rent rate for any of the following reasons, the standard rate of land rent of 4 per cent applies:

  • your total income is more than the income threshold
  • you fail to take up residency or all the lessees move out of the home once a Certificate of Occupancy and Use has been issued
  • you purchase other real property.