Untitled document
Duties and Land Tax Acts (Amendment) Act 2005
Act No. 85/2005
table of provisions
Section Page
Part 1—Preliminary
1.Purpose
2.Commencement
Part 2—Duties Act 2000
3.Definitions
4.New section 55 inserted
55.Equity release programs
5.Land-rich provisions—landholders
6.Land-rich provisions—acquisitions of interests in landholders
7.Land-rich provisions—agreements for sale, transfer or
purchase of land and other property8.Disqualifying circumstances for certain unit trust schemes
9.Sale of private unit trust scheme through conversion to public unit trust scheme
10.Registration of unit trust schemes
11.New section 217 substituted
217.When does duty become payable?
12.Motor vehicle duty—consequential amendments
13.New section 233 substituted and sections 233A to 233H
inserted233.Primary producer vehicles
233A.Transport for disabled, handicapped or injured
233B.Incapacitated person's vehicle
233C.Private vehicle used to convey incapacitated person
233D.Government or charitable vehicle used to convey incapacitated person
233E.Incapacitated war veteran's vehicle
233F.Fire fighting and emergency response vehicle
233G.Consular vehicle
233H.Repossessions and restorations
14.Motor vehicle duty—further consequential amendments
15.Valuation of property
16.Transitional
22.Duties and Land Tax Acts (Amendment) Act 2005
17.Statute law revision
Part 3—Land Tax Act 1958
18.Definitions
19.Assessment and liability of joint owners
20.New sections 51 and 52 substituted and sections 52A to 52J inserted
51.General land tax surcharge for trusts
52.Land tax for fixed trust if beneficial interests notified
to Commissioner52A.Land tax for unit trust scheme if unitholdings notified
to Commissioner52B.Land tax for beneficiary/trustees
52C.Land tax for excluded trusts
52D.Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes
52E.Land tax for discretionary trust with nominated beneficiary
52F.Nomination of PPR beneficiary of unit trust scheme
or discretionary trust for land tax purposes52G.Land tax for PPR land if nominated PPR beneficiary
52H.Trustee's right of reimbursement
52I.All trustees to notify Commissioner by 31 December 2005
52J.Ongoing requirements for trustees to notify Commissioner
21.Land tax rates for trusts
10.Land tax for trusts for 2006
11.Land tax for trusts for 2007
12.Land tax for trusts for 2008 and subsequent years
Part 4—Land Tax Act 2005
22.Definitions
23.New section 18 substituted
18.Holders of beneficial interests
24.Rate of land tax
25.Assessment and liability of joint owners
26.Assessment of trustees
27.New Division 2A inserted in Part 3
Division 2A—Land Held on Trust
46A.General land tax surcharge for trusts
46B.Land tax for fixed trust if beneficial interests notified
to Commissioner46C.Land tax for unit trust scheme if unitholdings notified
to Commissioner46D.Land tax for beneficiary/trustees
46E.Land tax for excluded trusts
46F.Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes
46G.Land tax for discretionary trust with nominated beneficiary
46H.Nomination of PPR beneficiary of unit trust scheme
or discretionary trust for land tax purposes46I.Land tax for PPR land if nominated PPR beneficiary
46J.Trustee's right of reimbursement
46K.Requirements for trustees to notify Commissioner
28.Consequential amendments
29.Public statutory authority and municipal and public land exemptions
30.Land tax surcharge rates for trusts
31.Transitional provisions
8.Trusts
9.Amnesty for failing to lodge certain documents
10.Continuation of Orders
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Endnotes
Duties and Land Tax Acts (Amendment) Act 2005
[Assented to 29 November 2005]
The Parliament of Victoria enacts as follows:
Part 1—Preliminary
1.Purpose
The purpose of this Act is—
(a)to amend the Duties Act 2000 to—
(i)provide a duty exemption for equity release programs;
(ii)amend the land rich duty provisions;
(iii)amend the motor vehicle duty provisions;
(b)to amend the Land Tax Act 1958 and the Land Tax Act 2005 to introduce a new regime for imposing land tax on land held on trust;
(c)to make minor technical amendments to the Land Tax Act 2005.
2.Commencement
(1)This Act (except section 4 and Part 4) comes into operation on the day after the day on which it receives the Royal Assent.
(2)Section 4 is deemed to have come into operation on 15 June 2005.
(3)Part 4 comes into operation on 1 January 2006.
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Part 2—Duties Act 2000
3.Definitions
(1)In section 3(1) of the Duties Act 2000—
(a)insert the following definition—
' "National Schedule" means the Schedule to the Road Transport Charges (Australian Capital Territory) Act 1993 of the Commonwealth;';
(b)for the definition of "listed trust" substitute—
' "listed trust" means—
(a)a unit trust scheme all the units in which are quoted on the Australian Stock Exchange; or
(b)a unit trust scheme—
(i)all the units in which are quoted on any exchange of the World Federation of Exchanges (other than the Australian Stock Exchange); and
(ii)that is declared by the Commissioner under sub-section (4)(a) to be a listed trust;';
(c)for the definition of "MRC" substitute—
' "MRC" (Mass Rating for Charging) has the same meaning as in the National Schedule;';
(d)for the definition of "private company" substitute—
' "private company" means—
(a)a corporation that is not limited by shares; or
(b)a corporation that is not listed and whose shares are not quoted on the Australian Stock Exchange or any exchange of the World Federation of Exchanges; or
(c)a corporation declared by the Commissioner under sub-section (4)(b) to be a private company;';
(e)in the definition of "widely held trust", for paragraphs (b) and (c) substitute—
"(b)that has not less than 300 registered unitholders; and
(c)in which units have been offered to the public under a prospectus or product disclosure statement lodged with the Australian Securities and Investments Commission; and
(d)none of the registered unitholders in which, either individually or together with associated persons, holds or is entitled to more than 20% of the units in the scheme.".
(2)After section 3(3) of the Duties Act 2000 insert—
'(4)The Commissioner, by instrument, may—
(a)declare that a unit trust scheme all the units in which are quoted on any exchange of the World Federation of Exchanges (other than the Australian Stock Exchange) is a listed trust for the purposes of this Act if the Commissioner is satisfied that the listing of the unit trust scheme was not for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under Part 2 of Chapter 3;
(b)declare that a corporation is a private company for the purposes of this Act if the Commissioner is satisfied that the listing of the corporation was for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under Part 2 of Chapter 3.
(5)For the purposes of the definition of "widely held trust" in sub-section (1), if a registered unitholder holds units as a trustee of a number of different trusts, the unitholder is taken to be a separate registered unitholder in relation to each trust and the units held are taken to be separate unitholdings, except where the beneficiaries of the trusts are the same or associated persons.'.
4.New section 55 inserted
After section 54 of the Duties Act 2000 insert—
'55.Equity release programs
(1)No duty is chargeable under this Chapter in respect of a transaction if, on application, the Commissioner is satisfied that it is a transaction taking place on or after 15 June 2005 under an equity release program that results in a change in beneficial ownership of dutiable property, being—
(a)the acquisition of a beneficial interest in the property by the financial institution as a result of the execution of the sale contract and payment of the amount payable by the financial institution to the homeowner on the day the sale contract is executed or within 5 business days afterwards; or
(b)the extinction of the beneficial interest, or part of the beneficial interest, in the property referred to in paragraph (a).
(2)An application for an exemption under this section—
(a)must be in the approved form; and
(b)must be accompanied by a copy of the sale contract.
(3)The Commissioner may require further information for the purposes of this section.
(4)In this section—
"equity release program" means an arrangement between a financial institution and a homeowner in accordance with which the financial institution and the homeowner enter into a contract of sale of land occupied as the homeowner's principal place of residence ("the sale contract"), under which—
(a)the financial institution purchases a part interest in the land; and
(b)the financial institution pays the homeowner an amount for that interest on the day that the sale contract is executed or within 5 business days afterwards; and
(c)subject to paragraph (d), the homeowner retains legal title to the whole of the land and the land is not mortgaged after the sale contract has come into existence; and
(d)the sale contract may be terminated only in one of the following ways—
(i)by the homeowner paying an amount to the financial institution; or
(ii)if the homeowner vacates the land, by the financial institution requiring the homeowner to pay an amount to the financial institution and the homeowner paying that amount; or
(iii)by the homeowner selling the property to a third party and paying an amount to the financial institution on the completion of that sale; or
(iv)if the homeowner (or, if there is more than one, the surviving homeowner) dies, by the land being sold to a third party and an amount being paid to the financial institution on the completion of that sale; and
(e)the homeowner is not required to make any payments to the financial institution during the life of the sale contract in any form that in substance reflects interest;
"financial institution" means—
(a)a financial institution within the meaning of section 3(1); or
(b)a friendly society;
"homeowner" means a person of or over pension age who, immediately before entering into the sale contract, holds an estate in fee simple in the whole of the land that is occupied by the person as his or her principal place of residence and whose estate is not subject to any mortgage;
"pension age" has the same meaning as in paragraph (b) of the definition of "pension age" in section 23(1) of the Social Security Act 1991 of the Commonwealth.
(5)Two or more persons together are homeowners if each of them satisfies the definition of "homeowner" in sub-section (4).'.
5.Land-rich provisions—landholders
(1)In section 71(3) of the Duties Act 2000—
(a)in paragraph (g), after "74(5))" insert
", including any debt existing between the landholder and a linked entity to the extent of the percentage of the interest the landholder holds in the linked entity";
(b)in paragraph (i), for "prescribed property" substitute "any property of a kind prescribed by the regulations".
(2)For section 73(1) of the Duties Act 2000 substitute—
"(1)For the purposes of this Part, the vendor and purchaser under an uncompleted agreement for the sale of land are taken to be separately entitled to the whole of the land.".
(3)After section 73(2) of the Duties Act 2000 insert—
"(3)For the purposes of this Part—
(a)a reference to a vendor includes a reference to a person who, at the time of a relevant acquisition, was the grantee of a put option or grantor of a call option;
(b)a reference to a purchaser includes a reference to a person who, at the time of a relevant acquisition—
(i)held a transfer right (within the meaning of Part 4A of Chapter 2); or
(ii)was the grantor of a put option or grantee of a call option;
(c)a reference to an uncompleted agreement includes a reference to an arrangement that includes both a put option and a call option.".
6.Land-rich provisions—acquisitions of interests in landholders
(1)In section 76(1) of the Duties Act 2000 omit "or otherwise".
(2)After section 77(2) of the Duties Act 2000 insert—
"(2A)In addition to sub-section (1), a person who holds an interest in a land rich landholder acquires an interest in the landholder if the capacity in which the person holds the interest changes.
(2B)Without limiting sub-section (2A), a person who has a beneficial interest in a land rich landholder and who declares a trust over that interest is taken, by that declaration of trust, to have acquired an interest in the landholder.
(2C)For the purposes of section 79, an acquisition of an interest referred to in sub-section (2A) or (2B) is to be treated as a separate acquisition from existing interests held by the acquirer or any other acquisition of an interest in a land rich landholder unless those acquisitions are made on behalf of the same person or associated persons.".
(3)In section 79(1)(a)(iii) of the Duties Act 2000, after "acquired by the person" insert "as set out in sub-paragraph (ii)".
(4)After section 79(3) of the Duties Act 2000 insert—
"(3A)For the purposes of this Part, persons in their capacity as qualifying investors of a wholesale unit trust scheme are taken not to be associated persons of other qualifying investors in relation to the scheme.".
(5)in section 79(6) of the Duties Act 2000, for "outcome or decisions" substitute "outcome of decisions".
(6)In section 83(2)(a) of the Duties Act 2000, after "section 79(1)(a)" insert "and (b)".
7.Land-rich provisions—agreements for sale, transfer or purchase of land and other property
After section 88(5) of the Duties Act 2000 insert—
"(6)For the purposes of this section—
(a)a reference to a vendor includes a reference to a person who, at the time of a relevant acquisition, was the grantee of a put option or grantor of a call option;
(b)a reference to a purchaser includes a reference to a person who, at the time of a relevant acquisition—
(i)held a transfer right (within the meaning of Part 4A of Chapter 2); or
(ii)was the grantor of a put option or grantee of a call option;
(c)a reference to an uncompleted agreement includes a reference to an arrangement that includes both a put option and a call option.".
8.Disqualifying circumstances for certain unit trust schemes
For section 89B(1) of the Duties Act 2000 substitute—
'(1)In this section, "disqualifying circumstance" means—
(a)a circumstance that causes a unit trust scheme that is registered under Division 7 to cease to meet the relevant criteria for registration; or
(b)subject to sub-section (1A), the failure by a unit trust scheme that is registered under Division 7 to meet a condition of registration, or the contravention of a condition of registration by a unit trust scheme or the trustee of the scheme.
(1A)A failure or contravention referred to in sub-section (1)(b) is not a disqualifying circumstance if the Commissioner so determines, being satisfied that the application of this section to the unit trust scheme in the particular case would not be just or reasonable.'.
9.Sale of private unit trust scheme through conversion to public unit trust scheme
For section 89C(1)(b)(i) of the Duties Act 2000 substitute—
"(i)a payment is made to or on behalf of a person who, or persons who together, held units representing an interest of at least 20% in the private unit trust scheme immediately before the agreement or arrangement was made; or".
10.Registration of unit trust schemes
(1)In section 89K(1) of the Duties Act 2000—
(a)in the definition of "qualified investor", after paragraph (g) insert—
"(ga)as custodian or trustee for an investor directed portfolio service, within the meaning of the relevant ASIC policy statement, if the custodian or trustee holds its interest in the unit trust scheme for not less than 300 clients as investors through the service, none of whom (individually or together with any associated person) is beneficially entitled to more than 20% of the units held by the custodian or trustee in the unit trust scheme;";
(b)in the definition of "qualified investor", in paragraph (h), for "sub-section (3)." substitute "sub-section (3);";
(c)after the definition of "qualified investor" insert—
' "relevant ASIC policy statement" means the policy statement "PS 148: Investor Directed Portfolio Services" published by the Australian Securities and Investments Commission, or any other policy statement published by that Commission that the Commissioner from time to time approves for the purposes of this Division.'.
(2)For section 89K(3) of the Duties Act 2000 substitute—
'(3)The Commissioner may approve a capacity to be a capacity for the purposes of paragraph (h) of the definition of "qualified investor" in sub-section (1) if satisfied that—
(a)the capacity corresponds to a capacity referred to in paragraph (a), (b), (c), (d), (e) or (f) of that definition under the law of an external Territory or of a country outside Australia; or
(b)the capacity is as a wholly owned subsidiary (within the meaning of the Corporations Act) of a person in a capacity referred to in paragraph (a).'.
(3)After section 89N(2) of the Duties Act 2000 insert—
"(3)The Commissioner may impose any conditions he or she considers appropriate on the registration of a unit trust scheme as a declared public unit trust scheme.".
(4)After section 89PA(2) of the Duties Act 2000 insert—
"(3)The Commissioner may impose any conditions he or she considers appropriate on the registration of a unit trust scheme as a declared wholesale unit trust scheme.".
11.New section 217 substituted
For section 217 of the Duties Act 2000 substitute—
"217.When does duty become payable?
(1)Duty becomes payable on the lodging of the application for registration or transfer of registration of the motor vehicle.
Note:Currently regulations 212 and 230 of the Road Safety (Vehicles) Regulations 1999 contain the requirements for lodgement of applications for registration or transfer of registration of a motor vehicle.
(2)If an application for transfer of registration of a motor vehicle is not lodged within the time required by law, penalty tax and interest are payable under the Taxation Administration Act 1997 on any duty payable on the application as if the duty had been payable at the time the application was required to be lodged.
(3)In addition to sub-section (2), if an application for transfer of registration of a motor vehicle is not lodged within the time required by law, the person required to lodge the application is liable to a further penalty of—
(a)an amount equal to the amount of duty payable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was required to be lodged; or
(b)$25—
whichever is the greater.
(4)If an application for transfer of registration of a motor vehicle is lodged within the time required by law but duty on the application is not paid on or before the lodging of the application, the person required to lodge the application is liable to a penalty of—
(a)an amount equal to the amount of duty payable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was lodged; or
(b)$25—
whichever is the greater.
(5)The penalty imposed by sub-section (4) is in addition to any penalty tax and interest payable under the Taxation Administration Act 1997.
(6)The Commissioner, in such circumstances as the Commissioner considers appropriate, may remit the penalty imposed by sub-section (3) or (4) by any amount.".
12.Motor vehicle duty—consequential amendments
In the Duties Act 2000—
(a)in section 217A(1) omit "making or";
(b)in sections 229 and 232, for "made" (wherever occurring) substitute "lodged".
13.New section 233 substituted and sections 233A to 233H inserted
For section 233 of the Duties Act 2000 substitute—
'233.Primary producer vehicles
(1)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a heavy trailer—
(a)registered or to be registered in the name of a primary producer; and
(b)used or to be used solely in the business of the registered operator as a primary producer.
(2)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle registered or to be registered in the name of a primary producer used or to be used solely in the business of the applicant for registration or the registered operator as a primary producer, being—
(a)a motor vehicle—
(i)so constructed that its engine is used to drive or operate an agricultural implement forming an integral part of the vehicle; and
(ii)the primary purpose of which is not to carry a load; or
(b)a tractor with an MRC of 4×5 tonnes or less; or
(c)a primary producer special vehicle.
(3)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle registered or to be registered in the name of a primary producer used or to be used for travelling within a radius of 25 kilometres from the registered operator's residence or residential address for the purpose of working the land of another primary producer, being—
(a)a motor vehicle—
(i)so constructed that its engine is used to drive or operate an agricultural implement forming an integral part of the vehicle; and
(ii)the primary purpose of which is not to carry a load; or
(b)a tractor with an MRC of 4×5 tonnes or less; or
(c)a primary producer special vehicle.
(4)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a Special Purpose Vehicle (type 2) as defined in Part 2 of the National Schedule that is—
(a)conditionally registered or to be registered in the name of a primary producer to operate on a highway at any distance from the registered operator's residence or residential address; and
(b)used or to be used solely in the business of the registered operator as a primary producer.
(5)In this section—
"agricultural implement" means a vehicle without its own motive power, built to perform agricultural tasks;
"load", in relation to a vehicle, includes anything that is normally removed from the vehicle when not in use;
"primary producer" means a person—
(a)engaged solely or substantially in agricultural, horticultural, viticultural, dairying, pastoral or other like pursuits; or
(b)who is a commercial fisherman the holder of a licence to take fish for sale;
"primary producer special vehicle" means a vehicle that—
(a)is steered by means of a handle bar; and
(b)is designed for the carriage of not more than 1 person; and
(c)has 3 or 4 wheels; and
(d)has a width not exceeding 1×15 metres; and
(e)has a tare mass not exceeding 210 kilograms;
"residential address", in relation to a company or other body corporate, means its registered office or any place recorded in the register as its residential address or business address.
233A.Transport for disabled, handicapped or injured
No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle that—
(a)is registered or to be registered in the name of St John's Ambulance Australia (Victoria) Inc and is used for the transport of the disabled, handicapped or injured; or
(b)is registered or to be registered in, and marked with, the name of a corporate or unincorporated body established for a public purpose and not for private gain and is only used for the conveyance of disabled or handicapped people for training, education or employment.
233B.Incapacitated person's vehicle
No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle registered or to be registered in the name of an incapacitated person if—
(a)the vehicle is designed solely for the conveyance of one incapacitated person; and
(b)the person's mobility is seriously impaired; and
(c)the vehicle will not be used to convey any other person.
233C.Private vehicle used to convey incapacitated person
(1)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle referred to in sub-section (2) that is registered or to be registered in the name of—
(a)an incapacitated person; or
(b)the parent or legal guardian of an incapacitated person who is a minor.
(2)Sub-section (1) applies to a vehicle that—
(a)is specially converted to provide wheelchair access to and egress from the vehicle; and
(b)is capable of carrying at least one occupied wheelchair; and
(c)is or is to be used for conveying an incapacitated person whose mobility is seriously impaired; and
(d)is not a taxi-cab within the meaning of the Transport Act 1983.
233D.Government or charitable vehicle used to convey incapacitated person
(1)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle referred to in sub-section (2) that is registered or to be registered in the name of—
(a)a charitable, benevolent or religious institution; or
(b)the Crown; or
(c)a public statutory authority; or
(d)a municipal council.
(2)Sub-section (1) applies to a vehicle that—
(a)is specially converted to provide wheelchair access to and egress from the vehicle; and
(b)is capable of carrying at least one occupied wheelchair; and
(c)is or is to be used for conveying an incapacitated person whose mobility is seriously impaired; and
(d)is marked with the name of the registered operator or, in the case of the Crown, with the name of the relevant department or agency; and
(e)is not a taxi-cab within the meaning of the Transport Act 1983.
233E.Incapacitated war veteran's vehicle
No duty is chargeable under this Chapter on an application for registration or transfer of registration of a motor vehicle not used except for social, domestic or pleasure purposes registered or to be registered in the name of a person who—
(a)is assessed pursuant to the Veterans' Entitlement Act 1986 of the Commonwealth—
(i)as a veteran to whom section 22 of that Act applies at the 100% or higher rate; or
(ii)as a veteran to whom section 23, 24, 25 or 104 of that Act applies; and
(b)operates no other vehicle currently registered without fee as an incapacitated war veteran's vehicle in accordance with regulations made under the Road Safety Act 1986.
233F.Fire fighting and emergency response vehicle
No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle that—
(a)is owned by a State Emergency Service volunteer unit, a Country Fire Authority brigade or a municipal council; and
(b)is registered or to be registered in the name of a nominee on behalf of the unit or brigade or in the name of a municipal council; and
(c)is certified by the State Emergency Service or the Country Fire Authority as a vehicle that is specifically equipped for and exclusively used for combating outbreaks of fire or for emergency response.
233G.Consular vehicle
No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle that is registered or to be registered in the name of a person who—
(a)holds a diplomatic post of the rank of Consul-General, Consul or Vice Consul; or
(b)is an Honorary Head of Post or a person employed in the administrative or technical service of a consulate-general, consulate, vice-consulate or consular agency who—
(i)is not an Australian citizen; and
(ii)is not holding the post of Trade Commissioner.
233H.Repossessions and restorations
(1)No duty is chargeable under this Chapter on an application for transfer of registration of a motor vehicle lodged by—
(a)a person who has taken or is taking possession of a motor vehicle from the registered operator under a security interest held by the person; or
(b)a person who was formerly the registered operator of a motor vehicle and who has taken or is taking possession of the vehicle from another person who holds or held a security interest in the vehicle.
(2)In this section—
"security interest", in relation to a motor vehicle, means an interest in, or a power over, the vehicle that secures payment of a debt or other pecuniary obligation or the performance of any other obligation but does not include a possessory lien or pledge.'.
14.Motor vehicle duty—further consequential amendments
In the Duties Act 2000—
(a)in sections 234A(1), 234B and 235(1) omit "made";
(b)in section 235(2) for "made" (where first and secondly occurring) substitute "lodged";
(c)in sections 236 and 238(1), for "made" (wherever occurring) substitute "lodged";
(d)section 239 is repealed.
15.Valuation of property
After section 273(3) of the Duties Act 2000 insert—
"(4)If a valuation of property covers more than one parcel of land, sub-section (3) applies in relation to the valuation of each single parcel of land.
(5)Sub-section (4) does not apply if the valuation under sub-section (2) does not lead to an increase in the tax liability of the taxpayer.
Example
A taxpayer is liable to duty on the aggregate value of 3 parcels of land. The taxpayer provides a valuation of each parcel and a valuation is also obtained under sub-section (2). If the valuation of any one of those parcels under sub-section (2) exceeds the valuation of that parcel provided by the taxpayer by 15% or more and the taxpayer does not object, or the valuation of that parcel as determined on objection, appeal or review exceeds the taxpayer's valuation by 15% or more, the taxpayer must pay the cost of the valuation of that parcel, unless the valuation under sub-section (2) does not lead to an increase in the taxpayer's total liability for duty.".
16.Transitional
In Schedule 2 to the Duties Act 2000, after clause 21 insert—
'22.Duties and Land Tax Acts (Amendment) Act 2005
(1)This clause has effect for the purposes of the definition of "listed trust" in section 3(1) of this Act.
(2)Despite the substitution of the definition by section 3(1)(b) of the Duties and Land Tax Acts (Amendment) Act 2005, a unit trust scheme that, immediately before the commencement of that section 3(1)(b), was a listed trust for the purposes of this Act continues, on and after that commencement, to be a listed trust for the purposes of this Act while all its units continue to be quoted on the Australian Stock Exchange or any exchange of the World Federation of Exchanges.'.
17.Statute law revision
Section 285 of and Schedule 1 to the Duties Act 2000 are repealed.
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Part 3—Land Tax Act 1958
18.Definitions
(1)In section 3(1) of the Land Tax Act 1958—
(a)insert the following definitions—
' "beneficiary" of a discretionary trust, means a person, or a member of a class of persons, in whom, by the terms of the trust, the whole or any part of the trust property may be vested—
(a)in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or
(b)in the event that a discretion conferred under the trust is not exercised;
"child maintenance land" means land held on trust that was transferred to the trustee for the benefit of a beneficiary as the result of a family breakdown within the meaning of section 102AGA of the Income Tax Assessment Act 1936 of the Commonwealth;
"Commonwealth Superannuation Act" means the Superannuation Industry (Supervision) Act 1993 of the Commonwealth;
"concessional trust" means—
(a)a trust of which each beneficiary is—
(i)a person in respect of whom a guardianship order or an administration order is in force under the Guardianship and Administration Act 1986; or
(ii)a person with a disability within the meaning of the Disability Services Act 1991; or
(b)a trust created under an order of the Supreme Court for the benefit of a person under disability;
"discretionary trust" means a trust under which the vesting of the whole or any part of the trust property—
(a)is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or
(b)will occur in the event that a discretion conferred under the trust is not exercised—
but does not include an excluded trust, a fixed trust or a trust to which a unit trust scheme relates;
"excluded trust" means—
(a)a charitable trust;
(b)a concessional trust;
(c)a public unit trust scheme;
(d)a wholesale unit trust scheme;
(e)a trust the sole beneficiary or beneficiaries of which is or are—
(i)a club referred to in section 13; or
(ii)the members of such a club;
(f)a trust established by a will, but only during the period ending on the later of—
(i)the 3rd anniversary of the testator's death or the further period approved by the Commissioner under sub-section (6); or
(ii)if, at the testator's death, all the potential beneficiaries are minors—the 18th birthday of the first beneficiary to turn 18;
(g)a trust, for any tax year in relation to which it is a superannuation trust;
"fixed trust" means a trust that is not an excluded trust, a discretionary trust or a trust to which a unit trust scheme relates;
"listed trust" has the same meaning as in the Duties Act 2000;
"nominated beneficiary" of a discretionary trust, means a person nominated under section 52D;
"nominated PPR beneficiary" means a person nominated under section 52F;
"pre-2006 land", in relation to a trust, means land that was subject to that trust at midnight on 31 December 2005;
"post-2006 land", in relation to a trust, means land that became subject to that trust on or after 1 January 2006;
"public unit trust scheme" means—
(a)a listed trust; or
(b)a widely held trust; or
(c)a registered imminent public unit trust scheme or registered declared public unit trust scheme (within the meaning of the Duties Act 2000);
"superannuation trust" means, in relation to a tax year—
(a)a trust established on or before 30 June in the year preceding the tax year that, in relation to the year of income ending in that year, is—
(i)a complying superannuation fund (within the meaning of section 42 or 42A of the Commonwealth Superannuation Act); or
(ii)a complying approved deposit fund (within the meaning of section 43 of the Commonwealth Superannuation Act); or
(iii)a pooled superannuation trust (within the meaning of section 44 of the Commonwealth Superannuation Act); or
(b)a trust established after 30 June in the year preceding the tax year that, as at midnight on 31 December in that year, is—
(i)a regulated superannuation fund (within the meaning of the Commonwealth Superannuation Act) or is taken to be a regulated superannuation fund under that Act; or
(ii)an approved deposit fund (within the meaning of the Commonwealth Superannuation Act); or
(iii)a pooled superannuation trust (within the meaning of the Commonwealth Superannuation Act);
"trust" does not include an implied or a constructive trust;
"unit" in a unit trust scheme, means—
(a)a right or interest (whether described as a unit or a sub-unit or otherwise) of a beneficiary under the scheme; or
(b)a right to any such right or interest—
that entitles the beneficiary to participate proportionately with other unitholders in a distribution of the property of the trust on its vesting;
"unit trust scheme" means an arrangement made for the purpose, or having the effect, of providing facilities for participation by a person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust, but does not include an excluded trust;
"wholesale unit trust scheme" means a unit trust scheme that is registered under Division 7 of Part 2 of Chapter 3 of the Duties Act 2000 as a wholesale unit trust scheme, an imminent wholesale unit trust scheme or a declared wholesale unit trust scheme;
"widely held trust" has the same meaning as that term would have in the Duties Act 2000 if a reference in paragraph (b) of the definition of "widely held trust" in section 3(1) of that Act to "300 registered unitholders" were a reference to "50 registered unitholders";';
(b)the definition of "special trust" is repealed;
(c)in the definition of "trustee" omit "express or implied".
(2)After section 3(5A) of the Land Tax Act 1958 insert—
'(6)For the purposes of paragraph (f)(i) of the definition of "excluded trust" in sub-section (1), the Commissioner may approve a further period in any particular case.'.
(3)In section 13AA of the Land Tax Act 1958—
(a)in sub-section (1), the definitions of "discretionary trust" and "unit trust scheme" are repealed;
(b)sub-section (2) is repealed.
(4)After section 9(1C) of the Land Tax Act 1958 insert—
"(1CA)A reference to an owner of land in sub-section (1)(ha) does not include a reference to a beneficiary of a trust or a unitholder in a unit trust scheme to which the land is subject.".
19.Assessment and liability of joint owners
After section 45(5) of the Land Tax Act 1958 insert—
"(5A)If a joint owner of land is a trustee of a trust to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment and liability of the joint owners of the land as referred to in sub-section (2), but regard is to be had to the existence of the trust in relation to the separate assessment and liability of the joint owners as referred to in sub-section (3).".
20.New sections 51 and 52 substituted and sections 52A to 52J inserted
For sections 51 and 52 of the Land Tax Act 1958 substitute—
'51.General land tax surcharge for trusts
(1)A person who is the owner of land as trustee of a trust is liable for land tax on the land—
(a)for 2006, as determined under clause 10 of the Second Schedule;
(b)for 2007, as determined under clause 11 of the Second Schedule;
(c)for 2008 and each subsequent year, as determined under clause 12 of the Second Schedule.
(2)The trustee is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
(3)This section does not apply to—
(a)land subject to a unit trust scheme if an appointment of a nominated PPR beneficiary for the scheme is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(b)land subject to a discretionary trust if—
(i)an appointment of a nominated beneficiary for the trust is in force; or
(ii)an appointment of a nominated PPR beneficiary for the trust is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(c)land subject to an excluded trust.
(4)This section is subject to sections 52 and 52A.
(5)A trustee of child maintenance land who would be liable to land tax in accordance with sub-section (1) but for this sub-section is liable for land tax as determined under clause 7, 8 or 9 of the Second Schedule (as the case may be), and is to be assessed for that tax as if the child maintenance land were the only land owned by the trustee.
52.Land tax for fixed trust if beneficial interests notified to Commissioner
(1)A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.
(2)A notice must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before—
(i)if any of the land subject to the trust is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii)if the only land subject to the trust is post-2006 land—in the year in which the land first became subject to the trust.
(3)A notice takes effect—
(a)for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b)in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4)If a notice is in force under this section for a fixed trust—
(a)a beneficiary of the trust is deemed to be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust as the beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is to be assessed for land tax on that land accordingly, together with any other land owned by the beneficiary, in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be); and
(b)the trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be) as if the land were the only land owned by the trustee.
(5)There is to be deducted from the land tax payable by a beneficiary under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais the proportion of the beneficiary's beneficial interest in land subject to the trust to the total beneficial interests in land subject to the trust;
Bis the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the beneficiary is deemed by sub-section (4)(a) to be the owner;
Dis the total taxable value of all land owned by the beneficiary;
Eis the amount of tax assessed on the beneficiary under sub-section (4)(a).
(6)For the purposes of this section, the trustee's right of indemnity from the trust property is taken not to be a beneficial interest in the land subject to the trust.
(7)Sub-section (4)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.
Note:Section 52B(1)(a) deems such a person to be the owner of land.
52A.Land tax for unit trust scheme if unitholdings notified to Commissioner
(1)A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.
(2)A notice must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before—
(i)if any of the land subject to the scheme is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii)if the only land subject to the scheme is post-2006 land—in the year in which the land first became subject to the scheme.
(3)A notice takes effect—
(a)for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b)in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4)If a notice is in force under this section for a unit trust scheme—
(a)a unitholder in the scheme is deemed, for the purposes of this Act other than Part IIA, to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is to be assessed for land tax on that land accordingly, together with any other land owned by the unitholder, in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be); and
(b)the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be) as if the land were the only land owned by the trustee.
(5)There is to be deducted from the land tax payable by a unitholder under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais the proportion of the unitholder's unitholding in the scheme to the total unitholdings in the scheme;
Bis the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the unitholder is deemed by sub-section (4)(a) to be the owner;
Dis the total taxable value of all land owned by the unitholder;
Eis the amount of tax assessed on the unitholder under sub-section (4)(a).
(6)Sub-section (4)(a) does not apply to a unitholder who holds units as trustee of another trust.
Note:Section 52B(1)(b) deems such a person to be the owner of land.
52B.Land tax for beneficiary/trustees
(1)For the purposes of this Act—
(a)a person who holds a beneficial interest in land subject to a fixed trust in respect of which a notice is in force under section 52 ("the first trust") as trustee of another trust ("the second trust") is deemed to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust;
(b)a person who holds units in a unit trust scheme in respect of which a notice is in force under section 52A ("the first scheme") as trustee of another trust ("the second trust") is deemed, for the purposes of this Act other than Part IIA, to be the owner of land subject to the first scheme that bears the same proportion to the whole of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.
(2)For the purposes of this section, a person referred to in sub-section (1) is called a "beneficiary/trustee".
(3)There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais—
(a)the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or
(b)the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme;
Bis the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme; and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the beneficiary/trustee is deemed by sub-section (1) to be the owner;
Dis the total taxable value of all land owned by the beneficiary/trustee that is subject to the second trust;
Eis the amount of tax assessed under this Act on the beneficiary/trustee in respect of all land owned by the beneficiary/trustee that is subject to the second trust.
52C.Land tax for excluded trusts
A trustee of an excluded trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
Note:The land tax is to be assessed in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be).
52D.Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes
(1)This section applies to a discretionary trust if the trust property includes any pre-2006 land.
(2)The trustee of the trust may nominate a person to be the nominated beneficiary of the trust for the purposes of this Act.
(3)The person nominated must be—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on 31 December 2005; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on 31 December 2005.
(4)A nomination under sub-section (2) must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before the later of—
(i)30 June 2006; or
(ii)3 months after the day on which a liability first arises for land tax on land subject to the trust.
(5)A nomination lodged in accordance with sub-section (4)—
(a)takes effect—
(i)for the 2006 tax year if made on or before 30 June 2006; or
(ii)in any other case, for the tax year after the year in which the nomination is lodged; and
(b)remains in force until—
(i)revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii)the nominated beneficiary dies.
(6)If the nominated beneficiary revokes the nomination, the trustee of the trust may nominate as the nominated beneficiary—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on the date of the nomination; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination—
if the Commissioner considers that the nomination of a beneficiary under this sub-section is just and reasonable in the particular case.
(7)If the nominated beneficiary dies, the trustee of the trust may nominate as the nominated beneficiary—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on the date of the nomination; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination.
(8)A nomination lodged under sub-section (6) or (7)—
(a)must be in the form, and contain the information, determined by the Commissioner; and
(b)takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c)remains in force until—
(i)revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii)the nominated beneficiary dies.
(9)A nomination may be lodged under sub-section (6) or (7) (as the case requires) on more than one occasion.
52E.Land tax for discretionary trust with nominated beneficiary
(1)This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 52D.
(2)The nominated beneficiary is deemed, for the purposes of this Act (other than Part IIA) but for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other land owned by the nominated beneficiary.
Note:The land tax is to be assessed in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be).
(3)The trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—
(a)in respect of any pre-2006 land—in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be); and
(b)in respect of any post-2006 land—in accordance with clause 10, 11 or 12 of the Second Schedule (as the case may be).
(4)For the purposes of sub-section (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula—
where—
Lis the land tax assessed for the trustee;
R1 is the rate of land tax set out in clause 7, 8 or 9 of the Second Schedule (as the case may be);
R2 is the rate of land tax set out in clause 10, 11 or 12 of the Second Schedule (as the case may be);
Tis the total taxable value of all land subject to the trust;
Ais the total taxable value of the pre-2006 land subject to the trust;
Bis the total taxable value of the post-2006 land subject to the trust.
(5)There is to be deducted from any land tax payable by the nominated beneficiary under sub-section (2) any land tax payable by the trustee under sub-section (3) in respect of pre-2006 land.
(6)Sub-section (2) does not apply if the nominated beneficiary is the trustee.
52F.Nomination of PPR beneficiary of unit trust scheme or discretionary trust for land tax purposes
(1)The trustee of a unit trust scheme or discretionary trust may nominate a person to be the nominated PPR beneficiary of the scheme or trust for the purposes of this Act.
(2)The person nominated must be a natural person who is a unitholder in the scheme or a beneficiary of the trust.
(3)A nomination under sub-section (1) must be lodged with the Commissioner in the form, and containing the information, determined by the Commissioner.
(4)A nomination lodged in accordance with sub-section (3)—
(a)takes effect—
(i)for the 2006 tax year if it is lodged on or before 30 June 2006; or
(ii)in any other case, for the tax year after the year in which the nomination is lodged; and
(b)remains in force until the nominated PPR beneficiary dies.
(5)If the nominated PPR beneficiary dies, the trustee of the scheme or trust may nominate a natural person who is a unitholder in the scheme or a beneficiary of the trust as the nominated PPR beneficiary.
(6)A nomination lodged under sub-section (5)—
(a)must be in the form, and contain the information, determined by the Commissioner; and
(b)takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c)remains in force until the nominated PPR beneficiary dies.
(7)A nomination may be lodged under sub-section (5) on more than one occasion.
(8)This section does not apply to a unit trust scheme if a notice is in force for the scheme under section 52A.
52G.Land tax for PPR land if nominated PPR beneficiary
(1)This section applies if the nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary trust is in force under section 52F.
(2)The trustee of the unit trust scheme or discretionary trust is to be assessed for land tax on land subject to the scheme or trust that is used or occupied as the principal place of residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee.
Note:The land tax is to be assessed in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be).
52H.Trustee's right of reimbursement
A trustee of a trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust or any like trust.
52I.All trustees to notify Commissioner by 31 December 2005
(1)A person who holds land in Victoria on trust on the relevant day must lodge a written notice with the Commissioner on or before 31 December 2005.
(2)The notice must be in the form, and contain the information, determined by the Commissioner.
(3)In this section—
"relevant day" means the day on which the Duties and Land Tax Acts (Amendment) Act 2005 receives the Royal Assent.
52J.Ongoing requirements for trustees to notify Commissioner
(1)A person who becomes trustee of land in Victoria, including a person who is already a trustee of land and acquires further land as trustee, must lodge a written notice with the Commissioner within one month after becoming trustee.
(2)A trustee who disposes of any land that is subject to the trust must lodge a written notice with the Commissioner within one month after disposing of the land.
(3)If—
(a)a person is trustee of land in Victoria; and
(b)anything happens that results in the trust to which the land is subject becoming a different category of trust—
the person must lodge a written notice with the Commissioner within one month after the thing happens.
Example
If a trust deed is varied so that a discretionary trust becomes an excluded trust, the trustee must notify the Commissioner within one month. Under sub-section (6) the Commissioner could, for example, require the trustee to include information about the variation of the trust deed (including a copy of the deed and variation) and any other information necessary to prove that the trust has become an excluded trust.
(4)A trustee of a fixed trust in respect of which a notice is in force under section 52 must lodge a written notice with the Commissioner within one month after any change to the beneficial interests in land subject to the trust.
(5)A trustee of a unit trust scheme in respect of which a notice is in force under section 52A must lodge a written notice with the Commissioner within one month after any change to the unitholdings in the scheme.
(6)A notice under this section must be in the form, contain the information and be accompanied by any documents or other evidence determined by the Commissioner.
(7)A notice under this section is in addition to any notice that the person is required to give under section 15(2).
(8)In this section—
"category of trust" means—
(a)a fixed trust;
(b)a unit trust scheme;
(c)a discretionary trust;
(d)an excluded trust.'.
21.Land tax rates for trusts
In the Second Schedule to the Land Tax Act 1958, after clause 9 insert—
"10.Land tax for trusts for 2006
If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 2006 is not less than the amount shown in column 1 of an item in Table J and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.
TABLE J
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375 cents for each $1 of the value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575 cents for each $1 of the value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875 cents for each $1 of the value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375 cents for each $1 of the value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875 cents for each $1 of the value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706 cents for each $1 of the value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3×5 cents for each $1 of the value that exceeds $2 700 000 11.Land tax for trusts for 2007
If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 2007 is not less than the amount shown in column 1 of an item in Table K and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.
TABLE K
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375 cents for each $1 of the value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575 cents for each $1 of the value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875 cents for each $1 of the value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375 cents for each $1 of the value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875 cents for each $1 of the value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706 cents for each $1 of the value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3×25 cents for each $1 of the value that exceeds $2 700 000 12.Land tax for trusts for 2008 and subsequent years
If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 2008 or a subsequent year is not less than the amount shown in column 1 of an item in Table L and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.
TABLE L
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375 cents for each $1 of the value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575 cents for each $1 of the value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875 cents for each $1 of the value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375 cents for each $1 of the value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875 cents for each $1 of the value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706 cents for each $1 of the value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3 cents for each $1 of the value that exceeds $2 700 000".
__________________
Part 4—Land Tax Act 2005
22.Definitions
(1)in section 3(1) of the Land Tax Act 2005—
(a)insert the following definitions—
' "beneficiary" of a discretionary trust, means a person, or a member of a class of persons, in whom, by the terms of the trust, the whole or any part of the trust property may be vested—
(a)in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or
(b)in the event that a discretion conferred under the trust is not exercised;
"child maintenance land" means land held on trust that was transferred to the trustee for the benefit of a beneficiary as the result of a family breakdown within the meaning of section 102AGA of the Income Tax Assessment Act 1936 of the Commonwealth;
"Commonwealth Superannuation Act" means the Superannuation Industry (Supervision) Act 1993 of the Commonwealth;
"concessional trust" means—
(a)a trust of which each beneficiary is—
(i)a person in respect of whom a guardianship order or an administration order is in force under the Guardianship and Administration Act 1986; or
(ii)a person with a disability within the meaning of the Disability Services Act 1991; or
(b)a trust created under an order of the Supreme Court for the benefit of a person under disability;
"discretionary trust" means a trust under which the vesting of the whole or any part of the trust property—
(a)is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or
(b)will occur in the event that a discretion conferred under the trust is not exercised—
but does not include an excluded trust, a fixed trust or a trust to which a unit trust scheme relates;
"excluded trust" means—
(a)a charitable trust;
(b)a concessional trust;
(c)a public unit trust scheme;
(d)a wholesale unit trust scheme;
(e)a trust the sole beneficiary or beneficiaries of which is or are—
(i)a club referred to in section 73; or
(ii)the members of such a club;
(f)a trust established by a will, but only during the period ending on the later of—
(i)the 3rd anniversary of the testator's death or the further period approved by the Commissioner under sub-section (3); or
(ii)if, at the testator's death, all the potential beneficiaries are minors—the 18th birthday of the first beneficiary to turn 18;
(g)a trust, for any tax year in relation to which it is a superannuation trust;
"fixed trust" means a trust that is not an excluded trust, a discretionary trust or a trust to which a unit trust scheme relates;
"listed trust" has the same meaning as in the Duties Act 2000;
"nominated beneficiary" of a discretionary trust, means a person nominated under section 46F;
"nominated PPR beneficiary" means a person nominated under section 46H;
"pre-2006 land", in relation to a trust, means land that was subject to that trust at midnight on 31 December 2005;
"post-2006 land", in relation to a trust, means land that became subject to that trust on or after 1 January 2006;
"public unit trust scheme" means—
(a)a listed trust; or
(b)a widely held trust; or
(c)a registered imminent public unit trust scheme or registered declared public unit trust scheme (within the meaning of the Duties Act 2000);
"superannuation trust" means, in relation to a tax year—
(a)a trust established on or before 30 June in the year preceding the tax year that, in relation to the year of income ending in that year, is—
(i)a complying superannuation fund (within the meaning of section 42 or 42A of the Commonwealth Superannuation Act); or
(ii)a complying approved deposit fund (within the meaning of section 43 of the Commonwealth Superannuation Act); or
(iii)a pooled superannuation trust (within the meaning of section 44 of the Commonwealth Superannuation Act); or
(b)a trust established after 30 June in the year preceding the tax year that, as at midnight on 31 December in that year, is—
(i)a regulated superannuation fund (within the meaning of the Commonwealth Superannuation Act) or is taken to be a regulated superannuation fund under that Act; or
(ii)an approved deposit fund (within the meaning of the Commonwealth Superannuation Act); or
(iii)a pooled superannuation trust (within the meaning of the Commonwealth Superannuation Act);
"trust" does not include an implied or a constructive trust;
"unit" in a unit trust scheme, means—
(a)a right or interest (whether described as a unit or a sub-unit or otherwise) of a beneficiary under the scheme; or
(b)a right to any such right or interest—
that entitles the beneficiary to participate proportionately with other unitholders in a distribution of the property of the trust on its vesting;
"unit trust scheme" means an arrangement made for the purpose, or having the effect, of providing facilities for participation by a person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust, but does not include an excluded trust;
"wholesale unit trust scheme" means a unit trust scheme that is registered under Division 7 of Part 2 of Chapter 3 of the Duties Act 2000 as a wholesale unit trust scheme, an imminent wholesale unit trust scheme or a declared wholesale unit trust scheme;
"widely held trust" has the same meaning as that term would have in the Duties Act 2000 if a reference in paragraph (b) of the definition of "widely held trust" in section 3(1) of that Act to "300 registered unitholders" were a reference to "50 registered unitholders";';
(b)in the definition of "trustee" omit "express or implied".
(2)After section 3(2) of the Land Tax Act 2005 insert—
"(3)For the purposes of paragraph (f)(i) of the definition of "excluded trust" in sub-section (1), the Commissioner may approve a further period in any particular case.".
23.New section 18 substituted
For section 18 of the Land Tax Act 2005 substitute—
"18.Holders of beneficial interests
The holders of beneficial interests in certain trusts are deemed to be the owners of land by Division 2A of Part 3.".
24.Rate of land tax
At the foot of section 35(1) of the Land Tax Act 2005 insert—
"Note:Schedule 1 sets out 3 different rates of land tax. Part 1 sets out the general rates of land tax, Part 2 sets out the rate of land tax on transmission easements and Part 3 sets out the land tax surcharge rates for trusts—see also Division 2A of this Part.".
25.Assessment and liability of joint owners
After section 38(5) of the Land Tax Act 2005 insert—
"(6)If a joint owner of land is a trustee of a trust to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment of the joint owners of the land as referred to in sub-section (2), but regard is to be had to the existence of the trust in relation to the separate assessment of the joint owners as referred to in sub-section (3).".
26.Assessment of trustees
Section 44 of the Land Tax Act 2005 is repealed.
27.New Division 2A inserted in Part 3
After Division 2 of Part 3 of the Land Tax Act 2005 insert—
'Division 2A—Land Held on Trust
46A.General land tax surcharge for trusts
(1)A person who is the owner of land as trustee of a trust is liable for land tax on the land at the applicable rate set out in Part 3 of Schedule 1.
(2)The trustee is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
(3)This section does not apply to—
(a)land subject to a unit trust scheme if an appointment of a nominated PPR beneficiary for the scheme is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(b)land subject to a discretionary trust if—
(i)an appointment of a nominated beneficiary for the trust is in force; or
(ii)an appointment of a nominated PPR beneficiary for the trust is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(c)land subject to an excluded trust.
(4)This section is subject to sections 46B and 46C.
(5)A trustee of child maintenance land who would be liable to land tax in accordance with sub-section (1) but for this sub-section is liable for land tax at the applicable rate set out in Part 1 of Schedule 1, and is to be assessed for that tax as if the child maintenance land were the only land owned by the trustee.
46B.Land tax for fixed trust if beneficial interests notified to Commissioner
(1)A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.
(2)A notice must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before—
(i)if any of the land subject to the trust is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii)if the only land subject to the trust is post-2006 land—in the year in which the land first became subject to the trust.
(3)A notice takes effect—
(a)for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b)in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4)If a notice is in force under this section for a fixed trust—
(a)a beneficiary of the trust is deemed to be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust as the beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the beneficiary, at the applicable rate set out in Part 1 of Schedule 1; and
(b)the trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee.
(5)There is to be deducted from the land tax payable by a beneficiary under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais the proportion of the beneficiary's beneficial interest in land subject to the trust to the total beneficial interests in land subject to the trust;
Bis the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the beneficiary is deemed by sub-section (4)(a) to be the owner;
Dis the total taxable value of all taxable land owned by the beneficiary;
Eis the amount of tax assessed on the beneficiary under sub-section (4)(a).
(6)For the purposes of this section, the trustee's right of indemnity from the trust property is taken not to be a beneficial interest in the land subject to the trust.
(7)Sub-section (4)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.
Note:Section 46D(1)(a) deems such a person to be the owner of land.
46C.Land tax for unit trust scheme if unitholdings notified to Commissioner
(1)A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.
(2)A notice must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before—
(i)if any of the land subject to the scheme is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii)if the only land subject to the scheme is post-2006 land—in the year in which the land first became subject to the scheme.
(3)A notice takes effect—
(a)for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b)in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4)If a notice is in force under this section for a unit trust scheme—
(a)a unitholder in the scheme is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the unitholder, at the applicable rate set out in Part 1 of Schedule 1; and
(b)the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee.
(5)There is to be deducted from the land tax payable by a unitholder under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais the proportion of the unitholder's unitholding in the scheme to the total unitholdings in the scheme;
Bis the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the unitholder is deemed by sub-section (4)(a) to be the owner;
Dis the total taxable value of all taxable land owned by the unitholder;
Eis the amount of tax assessed on the unitholder under sub-section (4)(a).
(6)Sub-section (4)(a) does not apply to a unitholder who holds units as trustee of another trust.
Note:Section 46D(1)(b) deems such a person to be the owner of land.
46D.Land tax for beneficiary/trustees
(1)For the purposes of this Act—
(a)a person who holds a beneficial interest in land subject to a fixed trust in respect of which a notice is in force under section 46B ("the first trust") as trustee of another trust ("the second trust") is deemed to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust;
(b)a person who holds units in a unit trust scheme in respect of which a notice is in force under section 46C ("the first scheme") as trustee of another trust ("the second trust") is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner of land subject to the first scheme that bears the same proportion to the whole of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.
(2)For the purposes of this section, a person referred to in sub-section (1) is called a "beneficiary/trustee".
(3)There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the lesser of—
(a)the amount determined by the formula:
where—
Ais—
(a)the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or
(b)the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme;
Bis the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme; and
(b)the amount determined by the formula:
where—
Cis the taxable value of the land of which the beneficiary/trustee is deemed by sub-section (1) to be the owner;
Dis the total taxable value of all taxable land owned by the beneficiary/trustee that is subject to the second trust;
Eis the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust.
46E.Land tax for excluded trusts
A trustee of an excluded trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
Note:The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
46F.Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes
(1)This section applies to a discretionary trust if the trust property includes any pre-2006 land.
(2)The trustee of the trust may nominate a person to be the nominated beneficiary of the trust for the purposes of this Act.
(3)The person nominated must be—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on 31 December 2005; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on 31 December 2005.
(4)A nomination under sub-section (2) must—
(a)be in the form, and contain the information, determined by the Commissioner; and
(b)be lodged with the Commissioner on or before the later of—
(i)30 June 2006; or
(ii)3 months after the day on which a liability first arises for land tax on land subject to the trust.
(5)A nomination lodged in accordance with sub-section (4)—
(a)takes effect—
(i)for the 2006 tax year if made on or before 30 June 2006; or
(ii)in any other case, for the tax year after the year in which the nomination is lodged; and
(b)remains in force until—
(i)revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii)the nominated beneficiary dies.
(6)If the nominated beneficiary revokes the nomination, the trustee of the trust may nominate as the nominated beneficiary—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on the date of the nomination; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination—
if the Commissioner considers that the nomination of a beneficiary under this sub-section is just and reasonable in the particular case.
(7)If the nominated beneficiary dies, the trustee of the trust may nominate as the nominated beneficiary—
(a)a natural person who—
(i)is a beneficiary of the trust; and
(ii)is of or over the age of 18 years on the date of the nomination; and
(iii)signifies in writing his or her acceptance of the nomination; or
(b)the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination.
(8)A nomination lodged under sub-section (6) or (7)—
(a)must be in the form, and contain the information, determined by the Commissioner; and
(b)takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c)remains in force until—
(i)revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii)the nominated beneficiary dies.
(9)A nomination may be lodged under sub-section (6) or (7) (as the case requires) on more than one occasion.
46G.Land tax for discretionary trust with nominated beneficiary
(1)This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 46F.
(2)The nominated beneficiary is deemed, for the purposes of this Act (other than Division 1 of Part 4) but for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the nominated beneficiary.
Note:The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
(3)The trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—
(a)in respect of any pre-2006 land—at the applicable rate set out in Part 1 of Schedule 1; and
(b)in respect of any post-2006 land—at the applicable rate set out in Part 3 of Schedule 1.
(4)For the purposes of sub-section (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula—
where—
Lis the land tax assessed for the trustee;
R1 is the applicable rate of land tax set out in Part 1 of Schedule 1;
R2 is the applicable rate of land tax set out in Part 3 of Schedule 1;
Tis the total taxable value of all taxable land subject to the trust;
Ais the total taxable value of the pre‑2006 land subject to the trust;
Bis the total taxable value of the post‑2006 land subject to the trust.
(5)There is to be deducted from any land tax payable by the nominated beneficiary under sub-section (2) any land tax payable by the trustee under sub-section (3) in respect of pre-2006 land.
(6)Sub-section (2) does not apply if the nominated beneficiary is the trustee.
46H.Nomination of PPR beneficiary of unit trust scheme or discretionary trust for land tax purposes
(1)The trustee of a unit trust scheme or discretionary trust may nominate a person to be the nominated PPR beneficiary of the scheme or trust for the purposes of this Act.
(2)The person nominated must be a natural person who is a unitholder in the scheme or a beneficiary of the trust.
(3)A nomination under sub-section (1) must be lodged with the Commissioner in the form, and containing the information, determined by the Commissioner.
(4)A nomination lodged in accordance with sub-section (3)—
(a)takes effect—
(i)for the 2006 tax year if it is lodged on or before 30 June 2006; or
(ii)in any other case, for the tax year after the year in which the nomination is lodged; and
(b)remains in force until the nominated PPR beneficiary dies.
(5)If the nominated PPR beneficiary dies, the trustee of the scheme or trust may nominate a natural person who is a unitholder in the scheme or a beneficiary of the trust as the nominated PPR beneficiary.
(6)A nomination lodged under sub-section (5)—
(a)must be in the form, and contain the information, determined by the Commissioner; and
(b)takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c)remains in force until the nominated PPR beneficiary dies.
(7)A nomination may be lodged under sub-section (5) on more than one occasion.
(8)This section does not apply to a unit trust scheme if a notice is in force for the scheme under section 46C.
46I.Land tax for PPR land if nominated PPR beneficiary
(1)This section applies if the nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary trust is in force under section 46H.
(2)The trustee of the unit trust scheme or discretionary trust is to be assessed for land tax on land subject to the scheme or trust that is used or occupied as the principal place of residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee.
Note:The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
46J.Trustee's right of reimbursement
A trustee of a trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust or any like trust.
46K.Requirements for trustees to notify Commissioner
(1)A person who becomes trustee of land in Victoria, including a person who is already a trustee of land and acquires further land as trustee, must lodge a written notice with the Commissioner within one month after becoming trustee.
(2)A trustee who disposes of any land that is subject to the trust must lodge a written notice with the Commissioner within one month after disposing of the land.
(3)If—
(a)a person is trustee of land in Victoria; and
(b)anything happens that results in the trust to which the land is subject becoming a different category of trust—
the person must lodge a written notice with the Commissioner within one month after the thing happens.
Example
If a trust deed is varied so that a discretionary trust becomes an excluded trust, the trustee must notify the Commissioner within one month. Under sub-section (6) the Commissioner could, for example, require the trustee to include information about the variation of the trust deed (including a copy of the deed and variation) and any other information necessary to prove that the trust has become an excluded trust.
(4)A trustee of a fixed trust in respect of which a notice is in force under section 46B must lodge a written notice with the Commissioner within one month after any change to the beneficial interests in land subject to the trust.
(5)A trustee of a unit trust scheme in respect of which a notice is in force under section 46C must lodge a written notice with the Commissioner within one month after any change to the unitholdings in the scheme.
(6)A notice under this section must be in the form, contain the information and be accompanied by any documents or other evidence determined by the Commissioner.
(7)A notice under this section is in addition to any notice that the person is required to give under section 103.
(8)In this section—
"category of trust" means—
(a)a fixed trust;
(b)a unit trust scheme;
(c)a discretionary trust;
(d)an excluded trust.'.
28.Consequential amendments
(1)In section 52 of the Land Tax Act 2005—
(a)in sub-section (1), the definitions of "discretionary trust" and "unit trust scheme" are repealed;
(b)sub-section (2) is repealed.
(2)For section 67(6) of the Land Tax Act 2005 substitute—
"(6)For the purposes of this section—
(a)a reference to the issued share capital of a company does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital;
(b)a reference to an owner of land does not include a reference to a beneficiary of a trust or a unitholder in a unit trust scheme to which the land is subject.".
29.Public statutory authority and municipal and public land exemptions
(1)For section 80(3) of the Land Tax Act 2005 substitute—
"(3)Sub-section (2)(a) does not apply to land or part of land—
(a)that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry; or
(b)that is used or occupied by persons carrying on business in movable stalls in a market during some but not all of the ordinary business hours in a week.".
(2)For section 81(3) of the Land Tax Act 2005 substitute—
"(3)Sub-section (2) does not apply to land or part of land—
(a)that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry; or
(b)that is used or occupied by persons carrying on business in movable stalls in a market during some but not all of the ordinary business hours in a week; or
(c)that is used exclusively for or in connection with a business the primary purpose of which is to provide outdoor sporting or recreational facilities.".
30.Land tax surcharge rates for trusts
In Schedule 1 to the Land Tax Act 2005, after Part 2 insert—
"Part 3—Surcharge Rates of Land Tax for Trusts
3.1Land tax for trusts for 2006
The rate of land tax for 2006 for land held by an owner subject to a trust is set out in Table 3.1.
TABLE 3.1
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375% of the taxable value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575% of the taxable value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875% of the taxable value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375% of the taxable value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875% of the taxable value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706% of the taxable value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3×5% of the taxable value that exceeds $2 700 000 3.2Land tax for trusts for 2007
The rate of land tax for 2007 for land held by an owner subject to a trust is set out in Table 3.2.
TABLE 3.2
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375% of the taxable value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575% of the taxable value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875% of the taxable value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375% of the taxable value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875% of the taxable value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706% of the taxable value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3×25% of the taxable value that exceeds $2 700 000 3.3Land tax for trusts for 2008 and subsequent years
The rate of land tax for 2008 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.3.
TABLE 3.3
Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0×375% of the taxable value that exceeds $20 000 3. 200 000 540 000 $750 and 0×575% of the taxable value that exceeds $200 000 4. 540 000 900 000 $2705 and 0×875% of the taxable value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1×375% of the taxable value that exceeds $900 000 6. 1 190 000 1 620 000 $9843 and 1×875% of the taxable value that exceeds $1 190 000 7. 1 620 000 2 700 000 $17 905 and 1×706% of the taxable value that exceeds $1 620 000 8. 2 700 000 $36 330 and 3% of the taxable value that exceeds $2 700 000".
31.Transitional provisions
In Schedule 3 to the Land Tax Act 2005, after clause 7 insert—
"8.Trusts
(1)A notice given under section 52 of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were a notice given under section 46B of this Act.
(2)A notice given under section 52A of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were a notice given under section 46C of this Act.
(3)A nomination of a beneficiary under section 52D of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were a nomination of a beneficiary under section 46F of this Act.
(4)A nomination of a PPR beneficiary under section 52F of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were a nomination of a PPR beneficiary under section 46H of this Act.
9.Amnesty for failing to lodge certain documents
(1)Section 59 of the Taxation Administration Act 1997 does not apply to a failure or refusal to lodge a notice with the Commissioner under section 46K.
(2)This clause ceases to have effect on 31 December 2007.
10.Continuation of Orders
(1)An Order under section 9(1AD) of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were an order made under section 80(4) of this Act.
(2)An Order under section 9(1B) of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were an order made under section 64(2) of this Act.
(3)An Order under section 13P(1) of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were an order made under section 87(1) of this Act.".
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Endnotes
Minister's second reading speech—
Legislative Assembly: 27 October 2005
Legislative Council: 23 November 2005
The long title for the Bill for this Act was "to amend the Duties Act 2000, the Land Tax Act 1958 and the Land Tax Act 2005 and for other purposes."
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