New South Wales Consolidated Acts

LAND TAX MANAGEMENT ACT 1956 - SECT 21A

21A Company title units taken to be strata lots

(1) This section applies to land if:

(a) the land is owned by a company in which all the issued shares are owned by persons each of whom, because of that share ownership, has an exclusive right to occupy a part of a building on the land or one of 2 or more buildings on the land, and

(b) the Chief Commissioner is satisfied that the whole of the land is reasonably used in connection with the occupation of the building or buildings.

(2) For the purposes of assessing land tax in respect of land to which this section applies:

(a) each shareholder is deemed to be the owner of that part of the building or that building that the shareholder is entitled to occupy because of that share ownership, and

(b) each such part of the building, or each such building, is deemed to be a strata lot under the Strata Schemes (Freehold Development) Act 1973 , and

(c) the company is not to be regarded as the owner of the land.

(3) For the purposes of the application of section 9B to and in respect of a part of a building, or a building, deemed by this section to be a strata lot, the proportion that the unit entitlement of that lot bears to the aggregate unit entitlement is:

(a) unless paragraph (b) applies, the proportion that the deemed owner’s shareholding in respect of the lot bears to the total issued share capital of the company, or

(b) if the Chief Commissioner is not satisfied as to the fairness and reasonableness of the proportion obtained in accordance with paragraph (a), the proportion arrived at by the Chief Commissioner on a redetermination in accordance with subsection (4).

(4) The Chief Commissioner’s redetermination is to be by reference to:

(a) the proportion that the floor area of the deemed lot bears to the total floor area that is separately occupied, or capable of being used for separate occupation, in the building, or

(b) in the case of an entitlement to occupy one of 2 or more buildings, the proportion that the floor area of the deemed lot bears to the total floor area that is separately occupied, or capable of being used for separate occupation, in all of those buildings.

(5) This section applies to land tax payable in respect of the year commencing on 1 January 1991 and any succeeding year.