2009 THE LEGISLATIVE ASSEMBLY FOR THE AUSTRALIAN CAPITAL TERRITORY (As presented) (Treasurer) Rates and Land Tax Legislation Amendment Bill 2009 Contents Page Part 1 Preliminary 1 Name of Act 2 2 Commencement 2 Part 2 Land Tax Act 2004 3 Legislation amended--pt 2 3 4 Section 14 3 5 Dictionary, definition of owner, new paragraph (aa) 4 6 Dictionary, definition of unit owner 4 J2009-428 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Page Part 3 Land Titles (Unit Titles) Act 1970 7 Legislation amended--pt 3 5 8 Registration of units plan New section 7 (1) (e) 5 Part 4 Rates Act 2004 9 Legislation amended--pt 4 6 10 Dictionary Section 3, note 1 6 11 Meaning of unimproved value Section 6 (3), definition of prescribed date, paragraph (c) 6 12 First determination of unimproved value Section 9 (3) 6 13 Section 9 (4) 7 14 Annual redeterminations Section 10 (2) 7 15 Section 11 7 16 Dictionary, definition of owner, new paragraph (ia) 10 17 Dictionary, definition of unit owner 10 contents 2 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] THE LEGISLATIVE ASSEMBLY FOR THE AUSTRALIAN CAPITAL TERRITORY (As presented) (Treasurer) Rates and Land Tax Legislation Amendment Bill 2009 A Bill for An Act to amend legislation in relation to rates and land tax, and for other purposes The Legislative Assembly for the Australian Capital Territory enacts as follows: J2009-428 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 1 1 Part 1 Preliminary 2 1 Name of Act 3 This Act is the Rates and Land Tax Legislation Amendment 4 Act 2009. 5 2 Commencement 6 This Act commences on 1 January 2010. 7 Note The naming and commencement provisions automatically commence on 8 the notification day (see Legislation Act, s 75 (1)). page 2 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 3 1 Part 2 Land Tax Act 2004 2 3 Legislation amended--pt 2 3 This part amends the Land Tax Act 2004. 4 4 Section 14 5 substitute 6 14 Commissioner to be told if residential land rented 7 (1) This section applies in relation to a parcel of land that-- 8 (a) is leased for residential purposes; and 9 (b) is rented by a tenant. 10 (2) A relevant person must tell the commissioner, in writing-- 11 (a) that the parcel is rented; and 12 (b) when the rental began. 13 Note 1 If a form is approved under the Taxation Administration Act 1999, 14 s 139C, the form must be used. 15 Note 2 It is an offence to fail to notify the commissioner under this section (see 16 Taxation Administration Act 1999, s 67 (2)). 17 Note 3 It is also an offence to knowingly avoid paying, or disclosing a liability 18 to pay, part or all of an amount of tax (see Taxation Administration 19 Act 1999, s 65 (1)). 20 (3) The relevant person must tell the commissioner the information 21 mentioned in subsection (2) not later than 30 days after-- 22 (a) if there is a change of ownership of the parcel--the day the 23 ownership changes; or 24 (b) in any other case--the day the rental begins. Rates and Land Tax Legislation Amendment Bill 2009 page 3 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 5 1 (4) This section does not apply if the owner of the parcel of land is a 2 corporation. 3 (5) In this section: 4 relevant person means-- 5 (a) the owner of the parcel of land; or 6 (b) if the owner has authorised an agent to act on the owner's 7 behalf in relation to the rental of the parcel--the agent. 8 Examples--agent 9 accountant, real estate agent, solicitor 10 Note An example is part of the Act, is not exhaustive and may extend, but 11 does not limit, the meaning of the provision in which it appears (see 12 Legislation Act, s 126 and s 132). 13 5 Dictionary, definition of owner, new paragraph (aa) 14 insert 15 (aa) if the registered proprietor has sold the interest to another 16 person (the new owner) and the new owner is in possession of 17 the parcel but not yet registered as the proprietor--the new 18 owner; or 19 6 Dictionary, definition of unit owner 20 substitute 21 unit owner means-- 22 (a) the registered proprietor of the lease of a unit; or 23 (b) if the registered proprietor has sold the interest to another 24 person (the new owner) and the new owner is in possession of 25 the unit but not yet registered as the proprietor--the new 26 owner. page 4 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 7 1 Part 3 Land Titles (Unit Titles) Act 1970 2 7 Legislation amended--pt 3 3 This part amends the Land Titles (Unit Titles) Act 1970. 4 8 Registration of units plan 5 New section 7 (1) (e) 6 insert 7 (e) a certificate issued by the commissioner for revenue certifying 8 that-- 9 (i) no rates or other amounts assessed as payable under the 10 Rates Act 2004 are outstanding for the financial year in 11 which the units plan is to be registered; and 12 (ii) no land tax or other amounts assessed as payable under 13 the Land Tax Act 2004 are outstanding for the quarter in 14 which the units plan is to be registered. 15 Note A person may apply for a certificate of land tax and other charges 16 under the Land Tax Act 2004, s 41 and a certificate of rates and 17 other charges under the Rates Act 2004, s 76. Rates and Land Tax Legislation Amendment Bill 2009 page 5 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 9 1 Part 4 Rates Act 2004 2 9 Legislation amended--pt 4 3 This part amends the Rates Act 2004. 4 10 Dictionary 5 Section 3, note 1 6 omit 7 For example, the signpost definition `unit owner--see Unit Titles Act, 8 dictionary' means that the term `unit owner' is defined in that dictionary 9 and the definition applies to this Act. 10 substitute 11 For example, the signpost definition `land tax--see the Land Tax 12 Act 2004, dictionary.' means that the term `land tax' is defined in that 13 dictionary and the definition applies to this Act. 14 11 Meaning of unimproved value 15 Section 6 (3), definition of prescribed date, paragraph (c) 16 substitute 17 (c) for a redetermination of the unimproved value of the parcel 18 under section 11 (Redetermination--error) or section 11A 19 (Redetermination--change of circumstances)--the date the 20 redetermination begins to apply to the parcel. 21 12 First determination of unimproved value 22 Section 9 (3) 23 omit 24 rates 25 substitute 26 a parcel of land page 6 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 13 1 13 Section 9 (4) 2 omit 3 rates 4 substitute 5 the parcel 6 14 Annual redeterminations 7 Section 10 (2) 8 omit 9 rates 10 substitute 11 the parcel 12 15 Section 11 13 substitute 14 11 Redetermination--error 15 (1) This section applies if an error was made in relation to a 16 determination of the unimproved value of a parcel of land as at a 17 particular date. 18 (2) The commissioner may redetermine the unimproved value of the 19 parcel as at that date. Rates and Land Tax Legislation Amendment Bill 2009 page 7 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 15 1 (3) The redetermination applies to the parcel for the period-- 2 (a) beginning on 1 July in the calendar year in which the relevant 3 date when the redetermination is made falls; and 4 (b) ending on 30 June in the next calendar year. 5 Example 6 A clerical error was made in relation to the determination of Branko's parcel of 7 land as at 1 January 2009, resulting in the unimproved value of the land being 8 incorrectly determined as $220 000. The unimproved value of parcel was 9 correctly determined as at 1 January 2007 as $230 000 and 1 January 2008 as 10 $240 000. 11 The average unimproved value of the land for the year beginning 1 July 2009 was 12 calculated as-- 13 ($230 000 + $240 000 + $220 000)/3=$230 000 14 After the clerical error was corrected, the unimproved value of the parcel was 15 correctly redetermined as at 1 January 2009 as $250 000. 16 The average unimproved value of the land was recalculated as (the recalculated 17 AUV)-- 18 ($230 000 + $240 000 + $250 000)/3=$240 000 19 The recalculated AUV applies for the period starting on 1 July 2009 and ending 20 on 30 June 2010. 21 Note An example is part of the Act, is not exhaustive and may extend, but 22 does not limit, the meaning of the provision in which it appears (see 23 Legislation Act, s 126 and s 132). 24 (4) In this section: 25 error, in relation to a determination, includes-- 26 (a) an error in making a valuation on which the determination is 27 based; and 28 (b) the duplication of an error in relation to an earlier 29 determination. page 8 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 15 1 11A Redetermination--change of circumstances 2 (1) This section applies if a change of circumstances happens in relation 3 to a parcel of land that affects the unimproved value of the land. 4 (2) The commissioner may redetermine the unimproved value of the 5 parcel as at a date if the unimproved value as at that date is used in 6 calculating the average unimproved value of the land for the year in 7 which the change of circumstances happens. 8 (3) The commissioner may also redetermine the unimproved value of 9 the parcel as at a later date if a determination of the unimproved 10 value as at that date did not take the change of circumstances into 11 account. 12 (4) A redetermination under subsection (2) applies to the parcel for the 13 period-- 14 (a) beginning on the day the change of circumstances happened; 15 and 16 (b) ending on 30 June in the next calendar year. 17 (5) A redetermination under subsection (3) applies to the parcel for the 18 period-- 19 (a) beginning on 1 July in the calendar year in which the relevant 20 date when the redetermination is made falls; and 21 (b) ending on 30 June in the next calendar year. 22 Example--s (4) 23 On 1 September 2009, Mungo obtained development approval for an authorised 24 use of Mungo's parcel of land (the change of circumstances) that increases the 25 unimproved value of the parcel. Before the change of circumstances, the 26 commissioner determined the unimproved value of the land as at 1 January 2007 27 as $260 000, 1 January 2008 as $280 000 and 1 January 2009 as $300 000. 28 The average unimproved value (the original AUV) of the land for the year 29 beginning 1 July 2009 was calculated as-- 30 ($260 000 + $280 000 + $300 000)/3=$280 000 Rates and Land Tax Legislation Amendment Bill 2009 page 9 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] Section 16 1 After the change of circumstances, the commissioner redetermined the 2 unimproved value of the land as at 1 January 2007 as $320 000, 1 January 2008 as 3 $340 000 and 1 January 2009 as $360 000. 4 The average unimproved value (the recalculated AUV) of the land was 5 recalculated as: 6 ($320 000 + $340 000 + $360 000)/3=$340 000 7 The original AUV applies for the period starting on 1 July 2009 and ending on 8 31 August 2009, and the recalculated AUV applies for the period starting on 9 1 September 2009 and ending on 30 June 2010. 10 Note An example is part of the Act, is not exhaustive and may extend, but 11 does not limit, the meaning of the provision in which it appears (see 12 Legislation Act, s 126 and s 132). 13 16 Dictionary, definition of owner, new paragraph (ia) 14 insert 15 (ia) if the registered proprietor has sold the interest to another 16 person (the new owner) and the new owner is in 17 possession of the parcel but not yet registered as the 18 proprietor--the new owner; or 19 17 Dictionary, definition of unit owner 20 substitute 21 unit owner means-- 22 (a) the registered proprietor of the lease of a unit; or 23 (b) if the registered proprietor has sold the interest to another 24 person (the new owner) and the new owner is in possession of 25 the unit but not yet registered as the proprietor--the new 26 owner. page 10 Rates and Land Tax Legislation Amendment Bill 2009 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au [Page Break] 1 Presentation speech Presentation speech made in the Legislative Assembly on 2009. 2 Notification Notified under the Legislation Act on 2009. 3 Republications of amended laws For the latest republication of amended laws, see www.legislation.act.gov.au. © Australian Capital Territory 2009 Rates and Land Tax Legislation Amendment Bill 2009 page 11 Authorised by the ACT Parliamentary Counsel--also accessible at www.legislation.act.gov.au