The New ‘Vacant Land’ Rule (2) – ‘Substantial and Permanent Structure’

When is land considered 'vacant'?

According to S.26-102(1)(b), land may be considered 'vacant' if there's no substantial and permanent structure on it that serves a purpose independent of any other structure.

What makes a structure 'substantial and permanent'?

For a structure to be considered substantial and permanent:

• It needs to be significant in size, value, or importance.
• It shouldn't be supporting or enhancing another structure.
• It must be fixed and enduring, not temporary.

Examples of substantial and permanent structures include commercial buildings, parking garages, grain silos, and homesteads on farms.

For instance, if farmland has a large grain silo, it's not considered 'vacant' because the silo serves an independent purpose. However, if the silo is replaced by temporary storage containers, the land might be considered 'vacant' because the containers aren't fixed and enduring.

Got questions? Reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment on our live calendar.

• The New 'Vacant Land' Rule (1)
• The New ‘Vacant Land’ Rule (3) – ‘In Use or Available for Use’
• The ‘Vacant Land’ Exclusions (1) – The ‘Carrying on A Business’ Exception (1)
• The ‘Vacant Land’ Exclusions (2) – The ‘Carrying on (any) Business’ Exception (2)
• The ‘Vacant Land’ Exclusions (3) – ‘Primary Producer’ and ‘Exceptional Circumstances’ Exceptions