Land intended as your principal residence
What is this concession?
If you have purchased property which you intend to use as your principal place of residence (your home), you may be able to claim a concession. To qualify for the concession you must not own another property worldwide which you were using as your home at the taxing date.
If you purchase vacant land or if you purchase a home with the intention of demolishing and rebuilding or renovating, the concession applies for 4 tax years immediately following the year in which you acquire the property.
If you have owned a home that has been occupied for residential purposes by another person who was not an owner, but which you intend to occupy after rebuilding or renovating, the concession will apply for the 4 tax years starting from the time the building or renovations physically commence.
There is no discretion to extend the concession. Prior to the 2011 tax year, the concession applied for two tax years and could be extended under certain circumstances.
Eligibility
To be eligible for this concession
you, your spouse/de facto partner and any dependents aged under 18 who will also occupy the property must not own a property outside NSW that is your principal place of residence. Note: if the property is owned jointly, only one person who intends to use the property as their home needs to qualify.
on completion of building or renovation works you must physically occupy the property for a continuous period of at least 6 months. If you do not meet this residency requirement, the concession for all years will be revoked
no income must be gained from the use and occupation of the property since the commencement of building
the proposed use and occupation of the property as your residence is lawful
it must not be possible, under local planning laws, to build more than two residences or residential units on the property or by combining it with adjoining land you own.
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