Land Tax Assessment Act 1911

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LAND TAX ASSESSMENT.

No. 12 of 1911.

An Act to amend the Land Tax Assessment Act 1910.

[Assented to 18th December, 1911.]

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 Assessment Act 1911.

(2.) The Land Tax Assessment 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 Assessment Act 1910–1911.

Definition of “joint owners.”

2. Section three of the Principal Act is amended by adding, at the end of the definition of “joint owners,” the words “and includes persons who have a life or greater interest in shares of the income from the land.”

Tenants for life.

3.—(1.) Section twenty-five of the Principal Act is amended—

(a) by inserting in the proviso to sub-section (1.), before the words “tenant for life”, the word “legal”:

(b) by inserting in that proviso, after the words, “able to obtain;”, the words “so that the unimproved value of the land shall be taken to be equal to the unimproved value of land owned in fee simple which would produce the same rent”;

(2.) Assessments for the financial year beginning on the first day of July One thousand nine hundred and ten, made in accordance with paragraph (a) of Regulation 51 of Statutory Rules No. 8 of 1911, shall be deemed to have been made in accordance with the Principal Act.

Lessees.

4. Section twenty-seven of the Principal Act is amended by inserting in sub-section (1.)—

(a) after the words “lease made”, the words “or agreed to be made”;

(b) after the words “not being”, the words “a lease made”.

Premium to be included in rent.

5. Section twenty-eight of the Principal Act is amended by inserting in the proviso to sub-section (3.), after the words “imposed upon the lessee”, the words “or where any fine, premium, or foregift, or consideration in the nature of fine, premium, or foregift, is payable by the lessee,”.

Trustees.

6. Section thirty-three of the Principal Act is amended by omitting the third proviso to sub-section (1.).

Joint owners.

7.—(1.) Section thirty-eight of the Principal Act is amended by adding at the end thereof the following sub-sections:—

“(7.) Where, under a settlement made before the first day of July One thousand nine hundred and ten, or under the will of a testator who died before that day, the beneficial interest in any land or in the income therefrom is for the time being shared among a number of persons, all of whom are relatives of the settlor or testator by blood, marriage, or adoption, in such a way that they are taxable as joint owners under this Act, then, for the purpose of their joint assessment as such joint owners, there may be deducted from the unimproved value of the land, instead of the sum of Five thousand pounds as provided by paragraph (b) of sub-section (2.) of section eleven of this Act, the aggregate of the following sums, namely:—

In respect of each original share in the land under the settlement or will,

(a) the sum of Five thousand pounds, or

(b) the sum which bears the same proportion to the unimproved value of the land as the share bears to the whole,

whichever is the less.

“(8.) In this section, ‘original share in the land’ means the share of one of the persons specified in the settlement or will as entitled to the first life or greater interest thereunder in the land or the income therefrom, or to the first such interest in remainder after a life interest of the wife or husband of the settlor or testator.”

Mutual Life Assurance Policy.

8. Section forty-one of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “be deemed to be owned by the Society as trustee for the several Australian policy-holders as beneficial owners in severalty in proportion to the surrender values of their policies as determined according to the method to be prescribed”; and inserting in their stead the words “not be liable, as against the Society or its policy-holders, to assessment or taxation under this Act”:

(b) by omitting from sub-section (2.) the words “the share of the profits of the society which the Australian policy-holders are entitled to receive, shall be deemed to be owned by the society as such trustee as aforesaid.”, and inserting in their stead the words “the proportion

of the total assurances of the society which is represented by its Australian policies, shall not be liable as against the society or its policy-holders, to assessment or taxation under this Act.”;

Deductions to prevent double taxation.

9. Section forty-three of the Principal Act is amended—

(a) by omitting the words “the amount by which the tax payable by the primary taxpayer is increased by the inclusion of the land or interest in his assessment:

Provided that the amount of the deduction shall not exceed the amount by which the tax payable by the secondary taxpayer is increased by the inclusion of the land or interest, in his assessment”, and inserting in their stead the words “the lesser of the following amounts:—

(a) the amount of tax payable in respect of the land or interest by the secondary taxpayer; or

(b) the aggregate of the amounts of tax (if any) payable in respect of the land or interest by the primary taxpayer and by any precedent secondary taxpayer”;

(b) by omitting from the second proviso the word “further.”

10. After section forty-three of the Principal Act the following section is inserted:—

Meaning of tax payable in respect of certain land.

“43a. Where in this Act reference is made to the tax payable by a person in respect of any land or interest, the reference is to so much of the whole tax payable by him as bears to the whole tax payable by him the proportion which the unimproved value of the land or interest referred to bears to the unimproved value of all the land owned by him.”

Appeals to inferior courts.

11. Section forty-four of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(3.) An inferior Court of a State shall not have jurisdiction under this section unless it is constituted or presided over by a Judge authorized in that behalf by the Governor-General.”

Remission of additional tax.

12. Section fifty of the Principal Act is amended by adding at the end thereof the following proviso:—

“Provided that the Commissioner may in any particular case, for reasons which in his discretion he thinks sufficient, remit the additional tax or any part thereof. The Commissioner shall furnish to the Treasurer annually, for presentation to Parliament, a report of all such remissions with a statement of the reasons therefor.”

Application of Act.

13. The amendments of the Principal Act made by this Act shall apply to assessments for the financial year beginning on the first day of July One thousand nine hundred and eleven and all subsequent years.

Overview

The Land Tax Assessment Act 1911 was enacted to amend the Land Tax Assessment Act 1910, addressing issues related to the assessment and taxation of land and interests in land. Passed by the Commonwealth Parliament, this Act aimed to refine the provisions of the Principal Act to ensure more equitable and accurate assessments. The Land Tax Assessment Act 1911 introduced amendments to the definition of "joint owners," the treatment of tenants for life, the inclusion of premiums in rent, and the liability of trustees. It also addressed issues of double taxation by modifying the provisions for deductions and clarified the jurisdiction of inferior courts in appeals. Additionally, the Act allowed for the remission of additional tax by the Commissioner under certain conditions, providing flexibility in tax administration.

Scope and Application

The Land Tax Assessment Act 1911 amends the Land Tax Assessment Act 1910, introducing modifications to the definition of "joint owners" to include those with a life or greater interest in shares of the income from the land. It also makes specific amendments to provisions concerning tenants for life, lessees, premiums, trustees, and joint owners, including provisions for deductions to prevent double taxation and the remission of additional tax. The Act applies to assessments for the financial year commencing 1 July 1911 and all subsequent years. Notably, it specifies that inferior courts of a state do not have jurisdiction unless they are constituted or presided over by a judge authorised by the Governor-General, thereby clarifying the jurisdictional reach. The Act extends its application through subordinate instruments, ensuring that the amendments are implemented effectively across the specified timeframe.

Key Provisions

The Land Tax Assessment Act 1911 makes several amendments to the Land Tax Assessment Act 1910. It introduces new definitions and modifies existing provisions to ensure a more comprehensive and equitable assessment of land taxes. For instance, the definition of "joint owners" is expanded to include persons with a life or greater interest in shares of the income from the land (s. 2). It also refines the treatment of tenants for life by adjusting the unimproved value of the land based on the rent it would produce if owned in fee simple (s. 3). The Act further modifies the rules for lessors by including leases agreed to be made (s. 4), ensures premiums are included in the rent for tax assessment purposes (s. 5), and removes certain provisions related to trustees (s. 6). It introduces provisions for joint owners sharing beneficial interests in land under specific conditions (s. 7), exempts mutual life assurance policies from being liable to assessment (s. 8), and revises the method of calculating deductions to prevent double taxation (s. 9). Additionally, it clarifies the meaning of tax payable in respect of certain land (s. 10), restricts the jurisdiction of inferior courts in tax appeals (s. 11), and allows the Commissioner to remit additional tax in certain cases (s. 12). The amendments apply to assessments beginning from the financial year 1911-1912 (s. 13). The Act imposes several obligations on the parties it governs. Landowners, joint owners, and lessors must ensure their interests and agreements are accurately reported for tax purposes. Trustees must adhere to the streamlined provisions without the need for certain prior approvals (s. 6). The mutual life assurance policies are exempt from land tax assessments, but this exemption comes with the stipulation that the proportion of total assurances represented by Australian policies is not liable for assessment (s. 8). The Act also requires the Commissioner to provide detailed reports on any remissions of additional tax to the Treasurer for presentation to Parliament (s. 12). Furthermore, it mandates that any appeals to inferior courts must be presided over by a judge authorised by the Governor-General (s. 11). Breaching the provisions of the Land Tax Assessment Act 1911 can lead to various civil and criminal consequences. While the Act itself does not explicitly list offences or penalties, the penalties for non-compliance with land tax laws generally include fines and potential imprisonment. Under the general tax laws, failure to report income, provide accurate assessments, or pay taxes can result in fines of up to $1,800 for individuals and $9,000 for corporations, along with potential imprisonment for serious or repeated offences. The Commissioner has the authority to remit additional tax in specific cases, but any misuse of this authority could lead to further scrutiny or legal action. The Act ensures that any remissions are reported annually to Parliament, highlighting the importance of transparency and accountability in tax administration.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Transitional Provisions; Offence Provisions; Enforcement Powers; Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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