Land rent payable
For land rent lessees who signed their contract for sale on or after 1 October 2013, your land rent payments are 2 per cent of the unimproved value of the leased land. You do not have access to the standard 4 per cent rate of land rent. (For further information on unimproved land value, visit Land valuations.
If you become ineligible for the discount rate, you may have to transition out of the Land Rent Scheme.
The following are the eligibility criteria for the discount land rent rate for Land Rent Scheme participants who signed their contract for sale on or after 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. 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.
- Income: To be eligible for land rent, the total gross income of the lessees must not be more than the $160,000 income threshold. We calculate income on a household basis – that is, the income of you and your partner – and include income from all sources, such as a second job, shareholder income, salary packaging benefits and short-term higher duty payments. The income threshold increases by $3,330 for each dependent child (see Table below)
Total gross income threshold for discount land rent rate (on or after 1 October 2013)
Number of dependent children
Total gross income threshold
5 or more
Once you obtain a land rent block, you must continue to meet the eligibility criteria for the discounted land rent to remain in the scheme.
If your circumstances change and you exceed the income threshold amount for two consecutive years, become the owner of other real property or stop living on the land under the land rent lease, you’ll have to transition out of the scheme. We will notify you, and you’ll have two years to complete the transition. You can do this either by purchasing the land outright from the Government or by transferring the lease to another eligible applicant who meets the eligibility criteria for the discounted land rent.
If you again become eligible during the two-year transition period – for example, through a loss of income or by selling other owned home – you should immediately contact us.