Land Tax Assessment Act 1940

Legislation au C1940A00015 Not in force Act

Legislation content

LAND TAX ASSESSMENT.

 

No. 15 of 1940.

An Act to amend the Land Tax Assessment Act 1910–1937.

[Assented to 27th May, 1940.]

[Date of commencement, 24th June, 1940.]

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 1940.

(2.) The Land Tax Assessment Act 1910–1937 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 1910–1940.

Tenure and salary of Commissioner and Assistant Commissioner.

2. Section five of the Principal Act is amended by inserting after sub-section (2.) the following sub-section:—

“(2a.) Notwithstanding anything contained in sub-section (1.) or (2.) of this section, if the person who is appointed Commissioner or Assistant Commissioner is, at the time of his appointment, more than fifty-eight years of age, the term of his appointment shall be the period which will expire upon his attaining the age of sixty-five years.”.


Taxable value.

3. Section eleven of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(4.) Notwithstanding anything contained in sub-section (3.) of this section, where land which is the site for a building is owned by a taxpayer, no part of that land shall for the purposes of the assessment of that taxpayer be deemed to be a separate parcel.”.

Land exempted from tax.

4. Section thirteen of the Principal Act is amended—

(a) by omitting from paragraph (c) the words “friendly societies or”;

(b) by inserting in sub-paragraph (3) of paragraph (g), after the word “and”, the word “solely”;

(c) by adding after paragraph (i) the following word, paragraph and sub-sections:—

“; and (j) all land owned and solely occupied by any society registered under a State Act relating to friendly societies.

“(2.) Where a building, erected on land to which sub-paragraph (3) of paragraph (g) or paragraph (j) of the last preceding sub-section would refer if the building were solely used or occupied by the persons or bodies specified in that sub-paragraph or paragraph, is partly used or occupied, or is intended to be partly used or occupied, by persons other than those persons or bodies, the unimproved value of that land shall, for the purposes of the assessment of those persons or bodies, be reduced to an amount which bears the same proportion to that unimproved value as the rental value of the part so used or occupied, or intended to be so used or occupied, by those other persons bears to the total rental value of the building.

“(3.) For the purposes of sub-paragraph (3) of paragraph (g) of sub-section (1.) of this section, the use or occupation of any building or part of any building by any society, institution, club or association not carried on for pecuniary profit, which is affiliated with the owner of the land on which the building is erected, or with which that owner is affiliated, or which is controlled by or controls that owner, shall not be deemed to be use or occupation by a person other than the owner.”.

Lessees of land after commencement of Act.

5. Section twenty-seven of the Principal Act is amended by omitting from sub-section (3.) the words “sections thirteen or forty-one” and inserting in their stead the words “section thirteen”.

Lessors and lessees of land leased before the commencement of this Act.

6. Section twenty-eight of the Principal Act is amended by inserting after paragraph (c) of sub-section (3.) the following paragraph:—

“(d) the unexpired period of a lease which is a perpetual lease shall be deemed to be one hundred years.”.


Mutual Life Assurance Societies.

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

(a) by inserting in sub-section (1.), after the word “owned”, the words “and solely occupied”; and

(b) by omitting sub-section (2.) and inserting in its stead the following sub-sections:—

“(2.) Where a building erected on land owned by a Mutual Life Assurance Society is partly used or occupied, or is intended to be partly used or occupied, by persons other than the Society, the unimproved value of that land shall, for the purposes of the assessment of that Society, be reduced to an amount which bears the same proportion to that unimproved value as the rental value of the part so used or occupied, or intended to be so used or occupied, by those other persons bears to the total rental value of the building.

“(3.) For the purposes of this section ‘Mutual Life Assurance Society’ means any life assurance society all the profits of which are divided among the policy-holders.

“(4.) Where a life assurance society to which the definition of ‘Mutual Life Assurance Society’ would otherwise apply is excluded from that definition by reason of its having shareholders who are entitled to receive a share of the profits of the society—

(a) in the case of land owned and solely occupied by that society to which sub-section (1.) of this section would otherwise apply if it were a Mutual Life Assurance Society—the unimproved value of that land shall, for the purposes of the assessment of the Society, be reduced by an amount which bears the same proportion to that unimproved value as the value of its Australian life assurance policies bears to the total value of its life assurance policies; and

(b) in the case of land owned and partly used or occupied by that society to which sub-section (2.) of this section would apply if it were a Mutual Life Assurance Society—the unimproved value of that land shall, for the purposes of the assessment of the Society, be reduced by such an amount as bears to the reduction which would have been effected by that sub-section the same proportion as the value of its Australian life assurance policies bears to the total value of its life assurance policies.”.


Commencement

8. The amendments effected by sections three, four, five, six and seven of this Act shall apply to all assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty, and for each financial year thereafter.

Overview

The Land Tax Assessment Act 1940, enacted in 1940 by the Parliament of Australia, serves to amend the Land Tax Assessment Act 1910–1937. This Act aims to address certain gaps and issues within the existing land tax assessment framework by introducing modifications to the tenure and salary of the Commissioner and Assistant Commissioner, the taxable value of land, the exemption of certain lands from tax, and the treatment of land held under leases. The policy objective is to provide clarity and adjustments to the land tax regime to ensure fair and accurate assessment of land taxes. The Act specifies changes such as the tenure of the Commissioner and Assistant Commissioner if appointed over the age of fifty-eight, the treatment of land as a separate parcel when it is the site for a building, exemptions for land owned by certain societies, and the treatment of land held under leases. These amendments are designed to improve the administration and fairness of land tax assessments, ensuring that the land tax system operates effectively and equitably for all stakeholders.

Scope and Application

The Land Tax Assessment Act 1940 amends the Land Tax Assessment Act 1910–1937, providing various modifications to the taxation of land, especially in relation to certain types of land ownership and use. This Act applies to individuals and entities involved in the ownership, occupation, or leasing of land within the Commonwealth of Australia. It specifically addresses the tenure of the Commissioner and Assistant Commissioner, the taxable value of land, exemptions from tax, and the treatment of land leased before and after the commencement of the Act. Notably, it introduces provisions that reduce the taxable value of land when it is owned by certain entities such as friendly societies or mutual life assurance societies, and when such land is partly used by other entities. The Act also makes adjustments to the tenure of certain officials and the calculation of land value for tax purposes. The changes outlined in the Act apply to all assessments from the financial year starting 1 July 1940 onwards. The Act does not specify any exclusions, exemptions, or thresholds beyond those detailed within its sections, and it does not extend its application through subordinate instruments.

Key Provisions

The Land Tax Assessment Act 1940 introduces several amendments to the existing Land Tax Assessment Act 1910–1937, referred to as the Principal Act. Firstly, it modifies the tenure and salary of the Commissioner and Assistant Commissioner by stipulating that if these officials are over fifty-eight years of age at the time of their appointment, their term of appointment will extend until they reach sixty-five years of age (section 2). The Act also alters the definition of taxable value, ensuring that land which is the site for a building and owned by a taxpayer will not be considered as a separate parcel for the purposes of assessment (section 3). Furthermore, the Act exempts certain lands from tax, including land owned and solely occupied by societies registered under a State Act relating to friendly societies and land owned and solely occupied by Mutual Life Assurance Societies (section 4). It also modifies the rules for assessing land leased before the commencement of the Act, deeming the unexpired period of a perpetual lease to be one hundred years (section 6). The Act imposes specific obligations on taxpayers and entities involved in the ownership and use of land. Taxpayers must ensure that the land they own is accurately assessed according to the provisions of the Act, particularly regarding the reduction of unimproved value for land that is partly used or occupied by persons other than the primary occupant. Additionally, Mutual Life Assurance Societies must report any partial use or occupation of their buildings by persons other than the Society, which will affect the assessment of their land. The Act also mandates that where a building on land exempt from tax is partly used or occupied by others, the unimproved value of the land must be adjusted accordingly (section 4(2)). The Land Tax Assessment Act 1940 outlines several consequences for non-compliance. While the Act does not explicitly list offences or penalties, non-compliance with the assessment and reporting obligations could lead to legal repercussions under the general tax laws of the time. For instance, providing false information or failing to report correctly could result in penalties such as fines or imprisonment, as typically enforced by other relevant legislation governing tax compliance in Australia. Additionally, failure to adjust the unimproved value of land as required could result in an overassessment, leading to further legal and financial implications for the taxpayer.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Reporting & Disclosure Obligations
Licensing & Registration

Interactions

Authorises

All Versions

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.