Land Tax Act Amendment Act 1985 (Qld)

529 ANNO TRICESIMO QUARTO ELIZABETHAE SECUNDAE REGINAE No. 39 of 1985 An Act to amend the Land Tax Act 1915-1984 in certain particulars [ASSENTED TO 19TH APRIL, 1985]

530 Land Tax Act Amendment Act 1985, No. 39 BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same , as follows:- 1. Short title . This Act may be cited as the Land Tax Act Amendment Act 1985. 2. Commencement . (1) This section and section 1 shall commence on the day on which this Act is assented to for and on behalf of Her Majesty. (2) Except as provided by subsection (I) this Act shall commence on 29 June 1985. 3. Principal Act and citation as amended . (1) In this Act the LandTax Act 1915-1984 is referred to as the Principal Act. (2) The Principal Act as amended by this Act may be cited as the Land Tax Act 1915-1985. 4. Amendment of s. 3. Interpretation. Section 3 of the Principal Act is amended by- (a) in subsection (1), inserting the following definition after the definition "This Act":- "Time-sharing scheme" means a scheme, undertaking or enterprise participants in which are, or may become, entitled to use, occupy or possess, for 2 or more periods during the period for which the scheme, undertaking or enterprise is to operate, property to which the scheme, undertaking or enterprise relates;"; (b) in subsection (2), in paragraph (a), omitting the word "his"; (c) inserting the following subsections after subsection (2):- "(3) Where for the purposes of this Act it is necessary to determine who were the beneficiaries of a trust as at midnight on a 30 June- (a) in the case of a trust other than a discretionary trust-the beneficiaries shall include every person who was a beneficiary of the trust during the period of 1-2 months immediately preceding that time; (b) in the case of a discretionary trust-the beneficiaries shall be those persons in whose favour a power of appointment has been exercised by any person during the period of 12 months immediately preceding that time. (4) In subsection (3)- "discretionary trust" means a trust over the property of which any person has a power of appointment. (5) In this Act, unless the contrary intention appears, a reference to a beneficiary of a trust shall be taken to refer to a

Land Tax Act Amendment Act 1985, No. 39 531 person entitled to a beneficial interest in land or income derived from land that is the subject of the trust.". 5. Amendment of s. 11 . Taxable value . Section 11 of the Principal Act is amended by- (a) omitting subsections (2) and (3) and substituting the following subsection:- "(2) The taxable value of all of the land of an owner is the amount of the unimproved value of such land or, where such land comprises 2 or more parcels, the aggregate of the unimproved values of those parcels respectively less any deduction allowable in accordance with this Act."; (b) inserting the following subsections after subsection (6B):- "(6C) Subsections (4), (6A) and (6B) do not apply to land that is owned by a person in the capacity of trustee. (6D) Where a person (other than a person who is an absentee) is an owner of land in the capacity of trustee and that land comprises one parcel the area whereof does not exceed 1.05 hectares that is used exclusively as the principal place of residence of all the beneficiaries of the relevant trust who were such beneficiaries at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied, in calculating the taxable value of all land of which the person is owner in that capacity there shall be deducted an amount equivalent to the unimproved value of that parcel. (6E) Where a person (other than a person who is an absentee) is an owner of land in the capacity of trustee and that land comprises one parcel the area whereof exceeds 1.05 hectares that is used exclusively as the principal place of residence of all the beneficiaries of the relevant trust who were such beneficiaries at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied, in calculating the taxable value of all land of which the person is owner in that capacity there shall be deducted an amount that bears to the unimproved value of that parcel the same proportion as 1.05 hectares bears to the area of that parcel. (6F) A trustee of a trust shall not be allowed the benefit of a deduction under subsection (6D) or (6E) where- (a) the trustee of another trust has obtained the benefit of such a deduction or the benefit of a deduction under section 11B (3A); or (b) in calculating the amount of land tax payable by a company under section II C (1) account was taken of a home unit which is used exclusively as the principal place of residence of all the beneficiaries of a trust, and a beneficiary of the first mentioned trust bears to a beneficiary of a trust referred to in paragraph (a) or (b) the relationship of

532 Land Tax Act Amendment Act 1985, No. 39 mother, father, sister, brother, husband, wife, stepmother, stepfather, stepsister or stepbrother unless the Commissioner is satisfied that the first mentioned trust and a trust referred to in paragraph (a) or (b) were not established by or on the instructions of the same person."; (c) in subsection (7), omitting paragraph (c). 6. Amendment of s. 11A. Deduction - exempt proprietary companies. Section 11 A of the Principal Act is amended by- (a) in subsection (1), inserting after the words "proprietary company" the words "(otherwise than in the capacity of trustee)"; (b) in subsection (2)- (i) in subparagraph (i) of paragraph (a), omitting all words from and including the words "(other than" and substituting the words "(other than in the capacity of trustee and other than land the subject of a trust of which he is a beneficiary where the trustee of that trust has obtained the benefit of a deduction under section 11 (6D) or (6E) or 11 B (3A in respect of that land or to which section 11B (3) or 13 (1) (vii) applied) after allowing for the deduction (if applicable) under section 11 (6A) or (6B) or 11B (2), exceeded $20 000"; (ii) omitting subparagraph (ii) of paragraph (a) and substituting the following subparagraph:- "(ii) a person who was then a member of the company was- (A) also a member of another exempt proprietary company that has obtained the benefit of the deduction under that subsection; or (B) also the beneficiary of a trust the trustee of which has obtained the benefit of the deduction under section 1 lAA (1) in respect of that trust;"; (iii) inserting the following paragraph after paragraph (a):- "(aa) where the trustee of a trust has obtained the benefit of the deduction under section 1 l AA (1) in respect of that land;"; (iv) omitting the word "and" appearing after paragraph (b) (ii) (A); (v) inserting after the word "and" appearing after paragraph (b) (ii) (B) the following provision:- "(C) where at the time referred to in that subparagraph he was the beneficiary of a trust, showing the prescribed particulars in respect of that trust; and"; (c) in subsection (3)- (i) omitting the word "but" appearing at the end of paragraph (a); (ii) omitting paragraph (b) and substituting the following paragraph:- "(b) to have an interest in all land owned at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied- (i) by any other exempt proprietary company of which he was then a member; (ii) by the trustee of a trust in his capacity as such trustee where the trustee is a natural person (other than an

Land Tax Act Amendment Act 1985, No. 39 533 absentee) or an exempt proprietary company and the member was then a beneficiary of the trust.". 7. New s. 11AA. The Principal Act is amended by inserting the following section after section 11 A:- "11AA. Deduction - trustee . (1) In calculating the taxable value of all land owned by a trustee in his capacity as such trustee there shall- ' (a) where all of the land is used by the trustee in his capacity as such for a prescribed activity, be deducted an amount equal to the unimproved value, or the aggregate of the unimproved values of the parcels respectively, of the land or $30 000, whichever is the less; (b) where a parcel of that land is used by the trustee in his capacity as such for a prescribed activity, be deducted an amount equal to the unimproved value of the parcel or $30 000, whichever is the less. (2) Subsection (1) does not apply in respect of land owned by a trustee in his capacity as such- (a) where the trustee of another trust has obtained the benefit of the deduction under that subsection in respect of that land or an exempt proprietary company has obtained the benefit of the deduction under section 1 IA (1) in respect of that land; (b) unless all the beneficiaries of the relevant trust are natural persons and no beneficiary is an absentee or, in so far as his beneficial interest is concerned, an agent or nominee of an absentee or a company or a trustee of a trust; (c) where at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied- (i) the unimproved value of all land in which a person who was then a beneficiary of the relevant trust had any interest (other than in the capacity of trustee and other than land the subject of a trust of which he is a beneficiary where the trustee of that trust has obtained the benefit of a deduction under section 11 (6D) or (6E) or 11B (3A) in respect of that land or to which section 1 l B (3) or 13 (1) (viii) applied) after allowing for the deduction (if applicable) under section 11 (6A) or (6B) or 11B (2), exceeded $20 000; or (ii) a person who was then a beneficiary of the relevant trust was- (A) also the beneficiary of another trust the trustee of which has obtained the benefit of the deduction

534 Land Tax Act Amendment Act 1985, No. 39 under that subsection in respect of that other trust; or (B) also a member of an exempt proprietary company that has obtained the benefit of the deduction under section 11 A (1); (d) except where the Commissioner in his absolute discretion determines otherwise, unless the trustee lodges with the Commissioner , in the prescribed manner and within the prescribed time, a return- (i) setting forth the names and addresses of each person who was a beneficiary of the relevant trust at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied; and (ii) containing or accompanied by a statement by each of the persons referred to in subparagraph (i)- (A) setting forth full and complete details of all lands in the State in which he had any interest at the time referred to in that subparagraph; (B) showing the full name of each exempt proprietary company of which he was a member at the time referred to in that subparagraph; and (C) where at the time referred to in that subparagraph the person was a beneficiary of another trust, showing the prescribed particulars in respect of that trust; ( iii) containing such other information as is prescribed. (3) For the purpose of subsection ( 2) (c) (i) a beneficiary shall be deemed- (a) not to have any interest in the land owned by the trustee in his capacity as such trustee; (b) to have an interest in all land owned at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied- (i) by the trustee of another trust in his capacity as such trustee of which he was then a beneficiary where that trustee is a natural person ( other than an absentee ) or an exempt proprietary company; (ii) by an exempt proprietary company of which he was then a member. (4) In respect of any year in respect of which land tax is leviable or payable, land is not used for a prescribed activity by a trustee in his capacity as such trustee- (a) unless the land has- (i) where the land has been a subject of the relevant trust for the period of 12 months immediately

Land Tax Act Amendment Act 1985, No. 39 535 preceding the time when its ownership for the purposes of this Act is determined, for that period; or (ii) where the land became a subject of the relevant trust during that period of 12 months, for the period commencing at the time at which the land became so subject and ending immediately preceding the time when the ownership of the land for the purposes of this Act is determined, been continuously used by the trustee in his capacity as such trustee for the purpose of a prescribed activity and for no other purpose; (b) unless neither all or part of that land nor all or part of any building situated on that land has- (i) where the land has been a subject of the relevant trust for the period of 12 months immediately preceding the time when its ownership for the purposes of this Act is determined, at any time during that period; or (ii) where the land became a subject of the relevant trust during that period of 12 months, at any time during the period commencing at the time at which the land became so subject and ending immediately preceding the time when the ownership of the land for the Purposes of this Act is determined, been rented, leased or let to any person; or (c) unless in any other case, the Commissioner is satisfied that the land is used by the trustee in his capacity as such trustee for a prescribed activity and for no other purpose. (5) In this section, unless the contrary intention appears- "prescribed activity" means any profession, trade or business but does not include any profession, trade or business that is declared by Order in Council not to be a prescribed activity for the purposes of this section; "trustee" means a trustee who is a natural person (other than an absentee) or that is an exempt proprietary company.". 8. Amendment of s. 11B . Provisions relating to land comprised in a building units plan etc. Section 11 B of the Principal Act is amended by- (a) in subsection (1)- (i) omitting paragraph (d) and substituting the following paragraph:- "(d) in the case of a building units plan- (i) subsections (2) and (3) apply to a lot deemed to be a separate parcel of land under paragraph (c) in lieu of

536 Land Tax Act Amendment Act 1985, No. 39 sections 11 (6A), 11 (6B) and 13 (1) (viii) where the owner of the land is such otherwise than in the capacity of trustee; (ii) subsection (3A) applies to a lot deemed to be a separate parcel of land under paragraph (c) in lieu of sections 11 (6D) and 11 (6E) where the owner of the land is such in the capacity of trustee;"; (ii) in paragraph (e), inserting after the expression "11 (6B)," the expression "11 (6D), 11 (6E),"; (b) in subsection (2), inserting after the words "owns a lot" the words "(otherwise than in the capacity of trustee)"; (c) in subsection (3) omitting the words "owned and used exclusively by a person as his principal place of residence" and substituting the words "owned by a person otherwise than in the capacity of trustee and used exclusively by that person as his principal place of residence and the person owns no other land whatever in Queensland and is not deemed by a provision of this Act to own any other land whatever in Queensland"; (d) inserting the following subsections after subsection (3):- "(3A) Where a lot is deemed to be a separate parcel of land under subsection (1) (c) and is shown on a building units plan and is owned by a person in his capacity as trustee and is used exclusively as the principal place of residence of all the beneficiaries of the relevant trust who were such beneficiaries at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied and the area of land comprised in that plan does not exceed- (a) where the area calculated by multiplying 400 square metres by the number of lots shown on the plan is 1.05 hectares or less, 1.05 hectares; or (b) where the area calculated by multiplying 400 square metres by the number of lots shown on the plan is greater than 1.05 hectares, 4 hectares or such other area, being an area that is greater than 4 hectares, as is prescribed by the regulations, in calculating the taxable value of all land owned by the person in his capacity as such trustee there shall be deducted an amount equivalent to the unimproved value of that lot. (3B) A trustee of a trust shall not be allowed the benefit of a deduction under subsection (3A) where- (a) the trustee of another trust has obtained the benefit of that deduction or the benefit of a deduction under section 11 (6D) or (6E); or (b) in calculating the amount of land tax payable by a company under section 11 C (1) account was taken of a home unit which is used exclusively as the

Land Tax Act Amendment Act 1985, No. 39 537 principal place of residence of all the beneficiaries of a trust, and a beneficiary of the first mentioned trust bears to a beneficiary of a trust referred to in paragraph (a) or (b) the relationship of mother, father, sister, brother, husband, wife, stepmother, stepfather, stepsister or stepbrother unless the Commissioner is satisfied that the first mentioned trust and a trust referred to in paragraph (a) or (b) were not established by or on the instructions of the same person.". 9. Amendment of s. 1IC. Deduction-home unit companies . Section 11 C of the Principal Act is amended by- (a) inserting the following subsections after subsection (2):- "(2A) Where a home unit is used exclusively as the principal place of residence of all the beneficiaries of a trust referred to in paragraph (b) of the definition "home unit" in subsection (4) and a beneficiary of that trust bears to a beneficiary of another trust the relationship of mother, father, sister, brother, husband, wife, stepmother, stepfather, stepsister or stepbrother and the trustee of that other trust has obtained the benefit of a deduction under section 11 (6D) or (6E) or 1 l B (3A), in calculating the amount of land tax payable by a company under this section and notwithstanding anything else contained in this section that home unit shall be taken not to be a home unit unless the Commissioner is satisfied that the trusts were not established by or on the instructions of the same person. (2B) Where a home unit is used exclusively as the principal place of residence of all the beneficiaries of a trust referred to in paragraph (b) of the definition "home unit" in subsection (4) and a beneficiary of that trust bears to a beneficiary of another trust or the beneficiaries of other trusts the relationship of mother, father, sister, brother, husband, wife, stepmother, stepfather, stepsister or stepbrother and the first mentioned trust and that other trust or, as the case may be, those other trusts were established by or on the instructions of the same person and the property or part of the property the subject of that other trust or those other trusts consists of shares which entitle the holder thereof to the exclusive use of a unit or units and that unit is a home unit or, as the case may be, those units are home units, in calculating the amount of land tax payable by a company or companies under this section and notwithstanding anything else contained in this section only one of the home units referred to in this subsection (being the one selected by the Commissioner for the purpose) shall be taken to be a home unit."; (b) in subsection (4), omitting paragraph (b) of the definition "home unit" and substituting the following paragraph:- "(b) is used exclusively as his principal place of residence by a person entitled so to do by reason of his being the holder of shares in a company that owns the parcel of land on

538 Land Tax Act Amendment Act 1985, No. 39 which the building is situated or, where those shares are held in trust, is used exclusively as the principal place of residence of all the beneficiaries of the trust who were such beneficiaries at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied;". 10. New ss. I ID and 11E. The Principal Act is amended by inserting the 'following sections after section I 1 C:- "11D. Time-sharing-lots comprised in building units plan or group titles plan. (1) Where a time-sharing scheme is or has been implemented in respect of all lots comprised in a parcel the person for the time being having the management of the scheme shall be deemed to be the owner of that parcel and be liable for land tax accordingly. (2) Where a time-sharing scheme is or has been implemented in respect of some but not all lots comprised in a parcel the lots in respect of which the time sharing scheme is implemented shall together be deemed to form one lot with a lot entitlement equal to the aggregate of the lot entitlements of those lots and the person for the time being having the management of the scheme shall be deemed to be the owner of that lot and be liable for land tax accordingly. (3) For the purpose of levying land tax on land contained in a parcel or lot to which this section applies the person deemed to be the owner of the parcel or lot shall be deemed not to own any other land in Queensland. (4) Where a person pays land tax by reason of his being deemed to be the owner- (a) of a parcel under subsection (1)-the owners of each lot comprised in the parcel shall be indebted to that person for an amount that bears to the amount of land tax paid the same proportion as the lot entitlement of the lot bears to the aggregate lot entitlements of all lots comprised in the parcel; (b) of a lot under subsection (2)-the owners of each lot in respect of which the time-sharing scheme was implemented shall be indebted to that person for an amount that bears to the amount of land tax paid the same proportion as the lot entitlement of their lot bears to the aggregate lot entitlement of the lots in respect of which the time-sharing scheme was implemented. (5) Section 11 (4), (6A) or (6B) does not apply to land deemed to be owned by a person under this section. (6) In this section, unless the contrary intention appears, the following have the meanings assigned to them by the BuildingUnits and Group Titles Act 1980-1984.•- "lot", "lot entitlement" and "parcel".

Land Tax Act Amendment Act 1985, No. 39 539 11E. Time-sharing-fee simple held by tenants in common. (1) Where a time-sharing scheme is or has been implemented in respect of a parcel of land (not being land to which section l I D applies) and each participant in that scheme is a proprietor of the land the person for the time being having the management of the scheme shall be deemed to be the owner of the aggregate of the shares in the land held by all the participants and be liable for land tax accordingly. (2) For the purpose of levying land tax on land to which this section applies the person deemed to be an owner of the land shall be deemed not to own any other land in Queensland. (3) Where a person pays land tax by reason of his being deemed to be an owner of land under this section each participant in the time-sharing scheme shall be indebted to that person for an amount that bears to the amount of land tax paid the same proportion as the share held by that participant in the land in respect of which the scheme was implemented bears to the aggregate of the shares in the land held by all the participants. (4) Section 11 (4), (6A) or (6B) does not apply to land deemed to be owned by a person under this section. (5) In this section- "proprietor" means a person for the time being registered or entitled to immediate registration under the Real Property Act 1861-1981 as a proprietor of the estate in fee simple.". 11. Amendment of s. 13. Section 13 of the Principal Act is amended in subsection (1) by- (a) in paragraph (viii), inserting after the word "owned" the words "(otherwise than in the capacity of trustee)"; (b) in paragraph (ix), inserting after the word "company" (first occurring) the words "(otherwise than in the capacity of trustee)"; (c) in paragraph (x), inserting after the word "company" the words "(otherwise than in the capacity of trustee)"; (d) in paragraph (xi), inserting after the word "absentee" the words "(otherwise than in the capacity of trustee)"; (e) inserting the following paragraphs after paragraph (xi):- (xii) Where the taxable value of all land owned by a person in the capacity of trustee of one or more trusts is less than $10,000, that land; (xiii) All land owned by a natural person, other than an absentee, in the capacity of trustee- (a) which is used solely for the business of agriculture, pasturage or dairy farming by that person in that capacity or by some other natural person who is neither an absentee

540 Land Tax Act Amendment Act 1985, No. 39 nor acting in the use of that land as the agent or nominee of an absentee or a company; and (b) where as at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied all the beneficiaries of the relevant trust are natural persons and no beneficiary is an absentee or, in so far as his beneficial interest is concerned , an agent or nominee of an absentee or a company or a trustee of a trust; (xiv) All land owned by an exempt proprietary company in the capacity of trustee- (a) which is used solely for the business of agriculture, pasturage or dairy farming by that company in that capacity or by a natural person who is neither an absentee nor acting in the use of that land as the agent or nominee of an absentee or a company; and (b) where as at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied all the beneficiaries of the relevant trust are natural persons and no beneficiary is an absentee or, in so far as his beneficial interest is concerned, an agent or nominee of an absentee or a company or a trustee of a trust". 12. Amendment of s. 16 . Section 16 of the Principal Act is amended in subsection (1) by omitting paragraphs (a) and (aa) and substituting the following paragraphs:- "(a) in the case of an owner who is an absentee or a company, $10 000 or upwards; (aa) in the case of an owner who is such an owner in the capacity of trustee of one or more trusts, $10.000 or upwards;". 13. Amendment of s. 25 . Joint owners . Section 25 of the Principal Act is amended in subsection (2) by omitting all words from and including the words "For the purposes of this provision" and substituting the following words:- "For the purposes of this provision lands which are held in severalty for an estate in fee-simple by separate titles in the respective names of two or more persons shall be considered to be jointly owned by such persons if the lands are used by a partnership firm or company whereof such persons are members.". 14. Amendment of s. 26A. Assessment of trustee . Section 26A of the Principal Act is amended by omitting all words from and including the words "But if the income". 15. New s. 26B . The Principal Act is amended by inserting the following section after section 26A:- "26B. Assessment of beneficiaries . (1) Where- (a) the Commissioner is satisfied- (i) that an executor or administrator of the estate of a deceased person was, by reason of his being such

Land Tax Act Amendment Act 1985, No. 39 541 executor or administrator , an owner of land in the capacity of trustee; or (ii) that a trustee of a trust created pursuant to a will was an owner of land in that capacity, as at midnight on 30 June immediately preceding the financial year in and for which the land tax is levied and is aware of the extent of the interest (if any) which each beneficiary of the estate or, as the case may be , of the trust had in the land at that time; and (b) the executor or administrator or, as the case may be, trustee requests the Commissioner to assess each beneficiary who had an interest in the land at that time as if he were an owner of the land and furnishes the Commissioner with the particulars and documents prescribed by the regulations, each beneficiary who had an interest in the land at that time shall be separately assessed and liable in respect of his individual interest in the land (as if he were the owner of a part of the land in proportion to his interest) together with any other land owned by him and his individual interests in any other land. (2) Where pursuant to this section each beneficiary who had an interest in the land is separately assessed in respect of a financial year the executor or administrator or, as the case may be, trustee in his capacity as trustee shall not be assessed in respect of the land for that financial year. (3) Documents prescribed for the purpose of subsection (1) (b) may include a statement in writing by each beneficiary containing details of all lands in which he had an interest as at a particular time.". 21