Land Tax Act and Another Act Amendment Act 1988 (Qld)

422 Q ueensh xnb ANNO TRICESIMO SEPTIMO ELIZABETHAE SECUNDAE REGINAE No. 40 of 1988 An Act to amend the Land Tax Act 1915-1985 and the LandTax (Adjustment) Act 1984-1985 each in certain particulars [ASSENTED TO 3RD MAY, 1988]

Land Tax Act and Another Act Amendment Act 1988, No. 40 423 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:- PART I-PRELIMINARY 1. Short title. This Act may be cited as the Land Tax Act and Another Act Amendment Act 1988. 2. Commencement . (1) Sections 5 to 12 (both inclusive) and section 21 shall be deemed to have commenced on 29 June 1987 and shall have retrospective effect accordingly. (2) Section 17, subparagraphs (i), (iii) and (iv) of paragraph (a) of section 18 and paragraph (a) of section 19 shall be deemed to have commenced on 29 June 1985 and shall have retrospective effect accordingly. (3) Except as provided by subsections (1) and (2), this Act shall commence on the day it is assented to for and on behalf of Her Majesty. 3. Arrangement . This Act is arranged in Parts as follows:- PART I-PRELIMINARY (SS. 1-3); PART II-AMENDMENT OF LAND TAX ACT (ss. 4-15); PART III-AMENDMENT OF LAND TAX (ADJUSTMENT) ACT (SS. 16-21). PART II-AMENDMENT OF LAND TAX ACT 4. Principal Act and citation as amended . ( 1) In this Part the LandTax Act 1915-1985 is referred to as the Principal Act. (2) The Principal Act as amended by this Part may be cited as the Land Tax Act 1915-1988. 5. Amendment of s. 3. Interpretation . Section 3 of the Principal Act is amended in subsection (1) by, in the definition "Exempt proprietary company", omitting paragraph (d) and substituting the following paragraph:- "(d) in so far as his membership is concerned- (i) a trustee of a trust; or (ii) an agent or nominee of an absentee or of a company;". 6. Amendment of s. 9 . Amounts and rates of land tax . Section 9 of the Principal Act is amended by- (a) in subsection (2), omitting the words "four hundred thousand dollars" and substituting the expression "$750 000";

424 Land Tax Act and Another Act Amendment Act 19 Oc No. 40 (b) in subsection (3)- (i) omitting the words "four hundred thousand dollars" and substituting the expression "$750 000"; (ii) omitting the Table and substituting the following Table:- "TABLE First Column Amount of Taxable Value Second Column Amounts and Rates If the amount of the taxable value- Is less than $4 000 .24c in each and every $ Is $4 000 or more, but is less than $9.60 plus .48c in each and every $ in excess of $6 000 $4000 Is $6 000 or more, but is less than $19.20 plus .72c in each and every $ in excess of $10000 $6000 Is $10 000 or more, but is less than $48.00 plus .96c in each and every $ in excess of $ 20 000 $10 000 Is $20 000 or more, but is less than $144.00 plus 1.2 c in each and every $ in excess of $40000 $20000 Is $40 000 or more, but is less than $384.00 plus 1.36c in each and every $ in excess of $80000 $40000 Is $80 000 or more, but is less than $928.00 plus 1.52c in each and every $ in excess of $120 000 $80000 Is $120 000 or more, but is less than $1 536.00 plus 1.68c in each and every $ in excess $200 000 of $120 000 Is $200 000 or more, but is less than $2 880.00 plus 1.84c in each and every $ in excess $ 300 000 of $200 000 Is $300 000 or more, but is less than $4 720.00 plus 2.0 c in each and every $ in excess $400 000 of $300 000 Is $400 000 or more, but is less than $6 720.00 plus 2.09c in each and every $ in excess $ 500 000 of $400 000 Is $500 000 or more, but is less than $8 810.00 plus 2.2 c in each and every $ in excess $600 000 of $500 000 Is $600 000 or more, but is less than $11 010.00 plus 2.29c in each and every $ in excess $700 000 of $600 000 Is $700 000 or more, but is less than $13 300.00 plus 2.45c in each and every $ in excess $710 000 of $700 000 Is $710 000 or more, but is less than $13 545.00 plus 4.55c in each and every $ in excess $720000 of $7 10 000 Is $720 000 or more, but is less than $14 000.00 plus 5.55c in each and every $ in excess $730000 of $720 000 Is $730 000 or more, but is less than $14 555.00 plus 5.75c in each and every $ in excess $740000 of $730 000 Is $740 000 or more, but is less than $15 130.00 plus 6.20c in each and every $ in excess $750 000 of $740 000 11 7. New S. 9A. The Principal Act is amended by inserting after section 9 the following section:- "9A. Rebate. A taxpayer, being- (a) a natural person in the capacity of trustee; or (b) a company, whether or not in the capacity of trustee, is, where the amount of the taxable value is less than $135 000, entitled to a rebate of the tax assessed to be payable by him or

Land Tax Act and Another Act Amendment Act 1988, No. 40 425 it for a financial year of an amount equal to the percentage set out in the second column of the Table to this section of the tax so assessed being the percentage opposite to the range of amounts of taxable values set out in the first column of that Table that include the amount of the taxable value upon which the tax was levied. TABLE First Column Amount of Taxable Value $1 or more but less than $120 000 $120 000 or more but less than $125 000 $125 000 or more but less than $130 000 $130 000 or more but less than $135 000 Second Column Percentage 25% 18.75% 12.5% 6.25% 8. Amendment of s. 11. Taxable value. Section 11 of the Principal Act is amended by- (a) in subsection (4)- (i) inserting after the words "by an owner" the words ", otherwise than in the capacity of a trustee,"; (ii) in paragraph (a), omitting all words from and including the words "the owner personally" to and including the words "or a company" and substituting the words "a prescribed person"; (iii) in provision (ii) of paragraph (a), omitting the expression "$60 000" and substituting the expression "$120 000"; (iv) in paragraph (b), omitting the expression "$60 000" and substituting the expression "$120 000"; (b) inserting after subsection (4) the following subsections:- "(5) In subsection (4) the expression "prescribed person" means- (a) where land is used otherwise than for the purposes of a trust, the owner personally or a natural person who is not an absentee and who in using the land is not acting as an agent or nominee of an absentee or of a company; or (b) where land is used for the purposes of a trust, a natural person (including the owner) in the capacity of trustee or an exempt proprietary company in the capacity of trustee, if- (i) the trust was created before 19 April 1985; (ii) the owner or, where there is more than one owner, one of them is a beneficiary of that trust;

426 Land Tax Act and Another Act Amendment Act 1988, No. 40 and (iii) as at midnight on 30 June immediately preceding the financial year in and for which the taxable value of the land is calculated all persons ultimately entitled to benefit from the land as cestuis que trust are natural persons of whom none is an absentee or, in so far as his beneficial interest is concerned, an agent or nominee of an absentee or of a company, and, where the land is used by a person other than the owner, the arrangement for that use was made before 19 April 1985. (6) The deduction granted by paragraph (a) of subsection (4) is not prejudiced by provision (b) (iii) of subsection (5) if the benefit taken by a cestui que trust who is not a natural person must be distributed, directly or indirectly, in a manner that satisfies that provision.". 9. Amendment of s.11A. Deduction - exempt proprietary companies. Section 11A of the Principal Act is amended by- (a) in paragraphs (a) and (b) of subsection (1), omitting the expression "$30 000" and substituting in each case the expression "$45 000"; (b) omitting subsection (4) and substituting the following subsection:- "(4) In respect of any year in respect of which land tax is leviable or payable, land shall, for the purpose of subsection (1), be taken not to have been used for a prescribed activity by an exempt proprietary company unless the Commissioner is satisfied- (a) where the company has owned the land for the period of 12 months immediately preceding the time when the ownership of the land for the purposes of this Act is determined-that the land has for that period; or (b) where the company became the owner of the land during that period of 12 months-that the land has for the period commencing at the time at which the company became the owner 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 company for the purpose of a prescribed activity and for no other purpose and that neither all or part of the land nor all or part of any building situated on the land has been rented, leased or let by the company to any person.".

end T 9. ct ,ands 4n ott ,Act Arn went Act . 1988 ,VNa. 40 427 10. Amendment of s. 11AA. Deduction-trustee. Section 11AA of the Principal Act is amended by- (a) in paragraphs (a) and (b) of subsection (1), omitting the expression "$30 000" and substituting in each case the expression "$45 000"; (b) in provision (C) of subparagraph (ii) of paragraph (d) of subsection (2), omitting the expression ";" and substituting the words "; and"; (c) omitting subsection (4) and substituting the following subsection:- "(4) In respect of any year in respect of which land tax is leviable or payable, land shall, for the purpose of subsection (1), be taken not to have been used for a prescribed activity by a trustee in his capacity as such trustee unless the Commissioner is satisfied- (a) where the land has been owned by the trustee in his capacity as such trustee for the period of 12 months immediately preceding the time when the ownership of the land for the purposes of this Act is determined- that the land has for that period; or (b) where the trustee became the owner of the land in his capacity as such trustee during that period of 12 months-that the land has for the period commencing at the time at which the trustee became such owner 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 and that neither all or part of the land nor all or part of any building situated on the land has been rented, leased or let by the trustee to any person.". 11. Amendment of s. 13 . Section 13 of the Principal Act is amended by in subsection (1)- (a) in paragraph (x), omitting the expression "$10 000" and substituting the expression "$30 000"; (b) in paragraph (xi), omitting the expression "$10 000" and substituting the expression "$30 000"; (c) in paragraph (xii), omitting the expression "$10 000" and substituting the expression "$30 000"; (d) omitting paragraphs (xiii) and (xiv) and substituting the following paragraphs:- "(xiii) All land owned by a natural person, other than an absentee, in the capacity of a trustee that is used solely for the business of agriculture, pasturage or dairy farming by- the owner in the capacity of such trustee;

428 Land Tax Act and Another Act Amendment Act 1988, No. 40 or some other natural person, otherwise than in the capacity of a trustee, who is neither an absentee nor acting in the use of the land as the agent or nominee of an absentee or of a company, where, as at midnight on 30 June immediately preceding the financial year in and for which land tax would be levied but for this paragraph, all persons entitled to benefit from the land as beneficiaries of the trust upon which the land is owned are natural persons of whom none is an absentee or, in so far as the whole or any part of his beneficial interest as such beneficiary is concerned- a trustee of a trust; or an agent or nominee of an absentee or of a company; (xiv) All land owned by an exempt proprietary company in the capacity of a trustee that is used solely for the business of agriculture, pasturage or dairy farming by- the owner in the capacity of such trustee; or a natural person, otherwise than in the capacity of a trustee, who is neither an absentee nor acting in the use of the land as the agent or nominee of an absentee or of a company, where, as at midnight on 30 June immediately preceding the financial year in and for which land tax would be levied but for this paragraph, all persons entitled to benefit from the land as beneficiaries of the trust upon which the land is owned are natural persons of whom none is an absentee or, in so far as the whole or any part of his beneficial interest as such beneficiary is concerned- a trustee of a trust; or an agent or nominee of an absentee or of a company; (xv) All land that is owned by- a natural person, other than an absentee, in the capacity of a trustee; or an exempt proprietary company in the capacity of a trustee, under a trust created before 19 April 1985 in respect of the land and that is used solely for the business of agriculture, pasturage or dairy farming by- the owner in the capacity of such trustee; a natural person, who is not the owner, whether or not in the capacity of a trustee, and who is neither an absentee

Land Tax Act and Another Act Amendment Act 1988, No. 40 429 nor acting in the use of the land as the agent or nominee of an absentee or of a company; or an exempt proprietary company, which is not the owner, in the capacity of a trustee that is not acting in the use of the land as the agent or nominee of an absentee or of a company, pursuant to arrangements made before 19 April 1985, where as at midnight on 30 June immediately preceding the financial year in and for which land tax would be levied but for this paragraph (xv)- (a) all persons ultimately entitled to benefit from the land as cestuis que trust are natural persons of whom none is an absentee or, in so far as his beneficial interest is concerned, an agent or nominee of an absentee or of a company; and (b) if the land is used by a person, other than the owner, in the capacity of a trustee, in the Commissioner's opinion, substantially all the beneficiaries of the trust under which the land is owned are persons who are or may be beneficiaries of the trust under which the land is used. The exemption granted by this paragraph (xv) is not prejudiced by provision (a) if the benefit taken by a cestui que trust who is not a natural person must be distributed, directly or indirectly, in a manner that satisfies that provision.". 12. Amendment of s. 16. Section 16 of the Principal Act is amended by- (a) in subsection (1)- (i) in paragraphs (a) and (aa), omitting the expression "$10 000" and substituting in each case the expression "$30 000"; (ii) in paragraph (b), omitting the expression "$65 334" and substituting the expression "$126 112"; (b) inserting after subsection (1) the following subsection:- "(1A) A natural person is not required to furnish a return under subsection (1) if the land of which he is the owner is exempted from taxation under this Act by reason of paragraph (viii) of section 13 (1)."; (c) in subsection (2), omitting the words "In addition to the returns specified in the last preceding subsection" and substituting the words "Whether or not he is required to furnish a return under subsection (1) 13. Amendment of s. 60 . Regulations . Section 60 of the Principal Act is amended by omitting subsection (2).

430 Land Tax Act and Another Act Amendment Act 1988, No. 40 14. Construction of s. 11AA of Principal Act. It is declared that the proper construction of section 11 AA of the Principal Act, and of that section as subsequently amended, in relation to land owned by a trustee in his capacity as such trustee is and always has been that- (a) the expression "all the beneficiaries of the relevant trust" occurring in paragraph (b) of subsection (2) of that section means the persons entitled to benefit from the land as cestuis que trust in relation to the trust upon which the land is owned and that the expression "a beneficiary of the relevant trust" wherever occurring in paragraphs (c) and (d) of that subsection has a corresponding meaning; (b) the expression "the relevant trust" wherever occurring in subsection (4) of that section means the trust upon which the land is owned; and (c) the deduction provided by subsection (1) of that section is not available if a person entitled to benefit from the land as cestui que trust in relation to the trust upon which the land is owned is a trustee of a trust in relation to the whole or any part of his beneficial interest as such a cestui que trust. 15. Construction of s. 13 (1) (xiii ) and (xiv ) of Principal Act. Paragraphs (xiii) and (xiv) of section 13 (1) of the Principal Act shall be deemed always to have read as paragraphs (xiii) and (xiv) respectively as re-enacted by section 11 of this Act. PART III-AMENDMENT OF LAND TAX (ADJUSTMENT) ACT 16. Principal Act and citation as amended . (1) In this Part the LandTax (Adjustment) Act 1984-1985 is referred to as the Principal Act. (2) The Principal Act as amended by this Part may be cited as the Land Tax (Adjustment) Act 1984-1988. 17. Amendment of s. 2. Application of Act. Section 2 of the Principal Act is amended by, in subsection (1)- (a) omitting the word "complete" and substituting the word "general"; (b) omitting the words "force," and substituting the word "force". 18. Amendment of s. 3. Interpretation . Section 3 of the Principal Act is amended by- (a) in subsection (1)- (i) inserting before the definition "Area" the following definition:- " "annual valuation", in respect of an Area, means a valuation of all lands in the Area made pursuant to Part IVA of The

Land. Tax Act and Another Act Amertdinent Act 1988 No. 40 431 Valuationof Land Act of 1944 as amended and in force for the time being;"; (ii) omitting the definition "complete valuation of an Area"; (iii) omitting the definition " fresh unimproved value" and substituting the following definitions:- "fresh unimproved value", in relation to any land , means the valuation of such land last made- (a) by a general valuation of the Area in which the land is situated proclaimed in force on and from a relevant date; or (b) by an interim valuation as at the date at which the general valuation was made, whichever is the later; "general valuation ", in respect of an Area, means a valuation of all lands in the Area made pursuant to sections 11 and 13 (1) of The Valuation of Land Act of 1944 as amended and in force for the time being;"; (iv) in the definition " interim valuation " omitting the word "complete" and substituting the word " general"; (b) omitting subsection ( 2) and substituting the following subsections:- "(2) A reference in this Act to a valuation made by the Valuer-General or under The Valuation of Land Act of 1944 as amended and in force for the time being which has been duly objected to under that Act shall be read as a reference to- (a) in a case to which paragraph ( b) does not apply- that valuation according to the decision of the Valuer- General upon the objection; (b) if there was an appeal against the decision of the Valuer - General upon the objection - according to the final determination of that appeal. (3) Where the relevant date is a 30 June in any year then for the purposes of this Act that 30 June shall be deemed to occur after the relevant date and to be the 30 June first occurring thereafter.". 19. Amendment of s. 4 . Unimproved value of land for purposes of LandTax Act. Section 4 of the Principal Act is amended by- (a) in subsection (1)- (i) omitting the words "Where a complete valuation of an Area" and substituting the words "Where, in respect of an Area, a general valuation"; (ii) inserting after the words "notwithstanding the fresh unimproved value" the words "or any annual valuation that has force and effect in that Area";

432 Land Tax Act and Another Act Amendment Act 1988, No. 40 (b) omitting subsection (2) and substituting the following subsection:- "(2) Notwithstanding section 2 (1), if a general valuation of an Area is proclaimed in force on a relevant date and prior to that date an annual valuation had force and effect in respect of that Area this section shall not apply to determine the unimproved value of land in that Area and for the purpose of calculating the taxable value of any land in that Area for the purposes of the Land Tax Act 1915-1988 the unimproved value thereof shall be determined pursuant to that Act.". 20. Repeal of and new s. 4A. Annual valuation to be disregarded. The Principal Act is amended by repealing section 4A and substituting the following section:- "4A. Unimproved value of land where annual valuation has force and effect as at 30 J une 1987 . Where, in respect of the same Area- (a) a general valuation was proclaimed in force on and from a relevant date that is 30 June 1984, 30 June 1985 or 30 June 1986; and (b) an annual valuation had force and effect on 30 June 1987, then, notwithstanding section 4 (1), for the purpose of calculating, for the purposes of the Land Tax Act 1915-1988, the taxable value of land in that Area as at a 30 June that is subsequent to 30 June 1987 and prior to the date on which the next succeeding general valuation is proclaimed in force in respect of that Area the unimproved value of the land shall be the amount calculated in accordance with the formula- A = B + (C-D) + (E-C) where- A is the unimproved value of the land pursuant to this section; B is the unimproved value of the land pursuant to section 4 (1); C is the unimproved value of the land as at 30 June 1987 pursuant to an annual valuation having force and effect in the Area at that date; D is the fresh unimproved value of the land; E is the unimproved value of the land pursuant to an annual valuation having force and effect in the Area at the relevant 30 June: Provided that where (C-D) would, but for this proviso, exceed- (c) where the relevant 30 June is 30 June 1988-50% of the fresh unimproved value of the land;

Land Tax Act and Another Act Amendment Act 1988, No. 40 433 or (d) where the relevant 30 June is 30 June 1989 or a subsequent 30 June-50% of the fresh unimproved value of the land multiplied by the number of times the date 30 June has occurred subsequent to 30 June 1987 and up to and including the relevant 30 June, then, for the purpose of applying the formula, (C-D) shall be taken to be the amount referred to in paragraph (c) or (d), as the case may be: Provided further that where the unimproved value of the land as determined pursuant to this section exceeds that which it has pursuant to an annual valuation having force and effect in the Area at the relevant 30 June the unimproved value of the land for the purpose of this section shall be that which it has pursuant to that annual valuation.". 21. New s. 4B. The Principal Act is amended by inserting the following section after section 4A:- "4n. Unimproved value of land where general valuation proclaimed in force on 30 June 1987 or subsequent thereto. Where, in respect of the same Area, a general valuation is proclaimed in force on and from a relevant date that is 30 June 1987 or subsequent thereto and an annual valuation has not previously had force and effect then, notwithstanding section 4 (1), for the purpose of calculating, for the purposes of the LandTax Act 1915-1988, the taxable value of any land in that Area as at a 30 June occurring after that relevant date and prior to the date on which the next succeeding general valuation is proclaimed in force in respect of that Area the unimproved value of the land shall be- (a) as at 30 June first occurring after the relevant date -that calculated pursuant to section 4 (1); (b) as at 30 June second, third and fourth occurring after the relevant date-the amount calculated in accordance with the formula- F = G + (H-I) where- F is the unimproved value of the land pursuant to this section; G is the unimproved value of the land pursuant to section 4 (1); H is the unimproved value of the land pursuant to an annual valuation having force and effect in the Area at the relevant 30 June;

434 Land Tax Act and Another Act Amendment Act 1988, No. 40 I is the fresh unimproved value of the land; (c) as at each subsequent 30 June-that which it has pursuant to an annual valuation having force and effect in the Area as at that 30 June: Provided that where the unimproved value of the land as determined pursuant to paragraph (b) exceeds that which it has pursuant to an annual valuation having force and effect in the Area at the relevant 30 June the unimproved value of the land for the purpose of this section shall be that which it has pursuant to that annual valuation.".