LAND TAX.
No. 28 of 1914.
An Act to amend the Land Tax Act 1910.
[Assented to 21st December, 1914.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Land Tax Act 1914.
(2.) The Land Tax Act 1910 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Land Tax Act 1910-1914.
Amendment of First Schedule.
2. The First Schedule to the Principal Act is repealed, and the following schedule is inserted in its stead:—
“FIRST SCHEDULE.
Rate of Tax when an Owner is not an Absentee.
For so much of the taxable value as does not exceed £75,000, the rate of tax per pound sterling shall be One penny and one eighteen thousand seven hundred and fiftieth of one penny where the taxable value is One pound sterling, and shall increase uniformly with each increase of One pound sterling of the taxable value by One eighteen thousand seven hundred and fiftieth of one penny.
For every pound sterling of taxable value in excess of £75,000 the rate of tax shall be Ninepence.
The rate of tax for so much of the taxable value as does not exceed £75,000 may be calculated from the following formula:—
R = rate of tax in pence per pound sterling
V = taxable value in pounds sterling
.”
Amendment of Second Schedule.
3. The Second Schedule to the Principal Act is repealed, and the following schedule is inserted in its stead:—
“SECOND SCHEDULE.
Rate of Tax when Owner is an Absentee.
For so much of the taxable value as does not exceed £5,000, the rate of tax per pound sterling shall be One penny. For so much of the taxable value as exceeds £5,000, but does not exceed £80,000, the rate of tax per pound sterling shall be Twopence and one eighteen thousand seven hundred and fiftieth of one penny where the excess is One pound sterling, and shall increase uniformly with each increase of One pound sterling in the taxable value by One eighteen thousand seven hundred and fiftieth of one penny.
For every pound sterling of taxable value in excess of £80,000 the rate of tax shall be Tenpence.
The rate of tax for so much of the taxable value as exceeds £5,000, and does not exceed £30,000, may be calculated by the following formula:—
R = rate of tax in pence per pound sterling.
E = excess of taxable value over £5,000 in pounds sterling.
”
Application of Act.
4. The amendments of the Principal Act made by this Act shall apply to land tax levied in and for the financial year beginning on the first day of July, One thousand nine hundred and fourteen and all subsequent years.
Overview
The Land Tax Act 1914 was enacted by the Commonwealth Parliament to amend the existing Land Tax Act 1910, addressing the need to revise the tax rates on land in response to economic conditions and policy considerations. This Act sought to provide more equitable and structured tax rates based on the taxable value of the land and the residency status of the owner, thereby aiming to ensure a more balanced and fair taxation system. The Act's objective is to maintain a consistent and transparent framework for land tax, ensuring that both resident and absentee owners contribute appropriately based on the value of their land holdings.
Scope and Application
The Land Tax Act 1914 applies to amendments of the Land Tax Act 1910, which primarily concerns the taxation of land. This Act establishes new tax rates applicable to the financial year beginning on the first day of July 1914 and all subsequent years, modifying the rates for both resident and absentee owners of land. For resident owners, the tax rate changes based on the taxable value of the land, with different rates for amounts up to £75,000 and those exceeding this amount. For absentee owners, the Act sets forth a different tiered structure, with tax rates varying depending on whether the taxable value is up to £5,000, between £5,000 and £80,000, or exceeds £80,000. The Act does not explicitly state exclusions or exemptions but rather provides a detailed framework for calculating the tax based on the specified thresholds. The geographic reach of this Act is likely to be within the jurisdiction of the Commonwealth of Australia, as it amends an existing federal Act.
Key Provisions
The Land Tax Act 1914 introduces amendments to the Land Tax Act 1910, primarily altering the rates of land tax based on the taxable value of the land and the residency status of the owner. Sections 2 and 3 of the Act revise the First and Second Schedules, establishing different tax rates for land owned by residents and absentees. Under Section 2, for non-absentee owners, the tax rate is one penny and one eighteenth of a thousandth of a penny per pound for taxable values up to £75,000, and nine pence per pound for values exceeding £75,000. Conversely, Section 3 sets the tax rate at one penny per pound for taxable values up to £5,000 for absentee owners, with a progressive increase up to ten pence per pound for values exceeding £80,000.
The Act imposes specific obligations on landowners to determine their residency status and the applicable tax rate based on the taxable value of their land. Owners must ensure that they are aware of their residency status and correctly apply the appropriate tax rate when calculating their land tax liability. Section 4 of the Act clarifies that these amendments apply to land tax levied from the financial year beginning on the first day of July 1914 onwards.
Breach of the obligations outlined in the Act, such as incorrectly applying the tax rate or failing to declare taxable income accurately, could lead to civil or criminal consequences. The Act does not specify particular offences or penalties within its text, but breaches of land tax regulations generally may result in penalties for underpayment, interest on unpaid tax, and potential prosecution for fraudulent or wilful non-compliance. The severity of these penalties can vary, with potential criminal penalties for deliberate tax evasion.