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PARLIAMENT OF VICTORIA
Duties and Land Tax Acts (Amendment) Act 2005
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. Definitions 3
4. New section 55 inserted 6
55. Equity release programs 6
5. Land-rich provisions--landholders 9
6. Land-rich provisions--acquisitions of interests in landholders 10
7. Land-rich provisions--agreements for sale, transfer or
purchase of land and other property 11
8. Disqualifying circumstances for certain unit trust schemes 12
9. Sale of private unit trust scheme through conversion to public
unit trust scheme 13
10. Registration of unit trust schemes 13
11. New section 217 substituted 15
217. When does duty become payable? 15
12. Motor vehicle duty--consequential amendments 16
13. New section 233 substituted and sections 233A to 233H
inserted 17
233. Primary producer vehicles 17
233A. Transport for disabled, handicapped or injured 20
233B. Incapacitated person's vehicle 20
233C. Private vehicle used to convey incapacitated person 21
233D. Government or charitable vehicle used to convey
incapacitated person 21
233E. Incapacitated war veteran's vehicle 22
233F. Fire fighting and emergency response vehicle 23
233G. Consular vehicle 23
233H. Repossessions and restorations 24
14. Motor vehicle duty--further consequential amendments 25
i
551367B.A1-18/11/2005 BILL LA AS SENT 18/11/2005
Clause Page
15. Valuation of property 25
16. Transitional 26
22. Duties and Land Tax Acts (Amendment) Act 2005 26
17. Statute law revision 26
PART 3--LAND TAX ACT 1958 27
18. Definitions 27
19. Assessment and liability of joint owners 33
20. New sections 51 and 52 substituted and sections 52A to 52J
inserted 34
51. General land tax surcharge for trusts 34
52. Land tax for fixed trust if beneficial interests notified
to Commissioner 35
52A. Land tax for unit trust scheme if unitholdings notified
to Commissioner 38
52B. Land tax for beneficiary/trustees 41
52C. Land tax for excluded trusts 43
52D. Nomination of beneficiary of pre-2006 discretionary
trust for land tax purposes 43
52E. Land tax for discretionary trust with nominated
beneficiary 46
52F. Nomination of PPR beneficiary of unit trust scheme
or discretionary trust for land tax purposes 48
52G. Land tax for PPR land if nominated PPR beneficiary 49
52H. Trustee's right of reimbursement 50
52I. All trustees to notify Commissioner by 31 December
2005 50
52J. Ongoing requirements for trustees to notify
Commissioner 50
21. Land tax rates for trusts 52
10. Land tax for trusts for 2006 52
11. Land tax for trusts for 2007 53
12. Land tax for trusts for 2008 and subsequent years 54
PART 4--LAND TAX ACT 2005 56
22. Definitions 56
23. New section 18 substituted 62
18. Holders of beneficial interests 62
24. Rate of land tax 62
25. Assessment and liability of joint owners 62
26. Assessment of trustees 62
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551367B.A1-18/11/2005 BILL LA AS SENT 18/11/2005
Clause Page
27. New Division 2A inserted in Part 3 63
Division 2A--Land Held on Trust 63
46A. General land tax surcharge for trusts 63
46B. Land tax for fixed trust if beneficial interests notified
to Commissioner 64
46C. Land tax for unit trust scheme if unitholdings notified
to Commissioner 67
46D. Land tax for beneficiary/trustees 70
46E. Land tax for excluded trusts 72
46F. Nomination of beneficiary of pre-2006 discretionary
trust for land tax purposes 72
46G. Land tax for discretionary trust with nominated
beneficiary 75
46H. Nomination of PPR beneficiary of unit trust scheme
or discretionary trust for land tax purposes 76
46I. Land tax for PPR land if nominated PPR beneficiary 78
46J. Trustee's right of reimbursement 78
46K. Requirements for trustees to notify Commissioner 79
28. Consequential amendments 80
29. Public statutory authority and municipal and public land
exemptions 81
30. Land tax surcharge rates for trusts 82
31. Transitional provisions 85
8. Trusts 85
9. Amnesty for failing to lodge certain documents 85
10. Continuation of Orders 85
ENDNOTES 87
iii
551367B.A1-18/11/2005 BILL LA AS SENT 18/11/2005
PARLIAMENT OF VICTORIA
Initiated in Assembly 25 October 2005
As amended by Assembly 17 November 2005
A BILL
to amend the Duties Act 2000, the Land Tax Act 1958 and the Land
Tax Act 2005 and for other purposes.
Duties and Land Tax Acts
(Amendment) Act 2005
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is--
(a) to amend the Duties Act 2000 to--
(i) provide a duty exemption for equity
5
release programs;
(ii) amend the land rich duty provisions;
1
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 1--Preliminary
s. 2
(iii) amend the motor vehicle duty
provisions;
(b) to amend the Land Tax Act 1958 and the
Land Tax Act 2005 to introduce a new
regime for imposing land tax on land held on
5
trust;
(c) to make minor technical amendments to the
Land Tax Act 2005.
2. Commencement
(1) This Act (except section 4 and Part 4) comes into
10
operation on the day after the day on which it
receives the Royal Assent.
(2) Section 4 is deemed to have come into operation
on 15 June 2005.
(3) Part 4 comes into operation on 1 January 2006.
15
__________________
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 3
See:
PART 2--DUTIES ACT 2000
Act No.
79/2000.
3. Definitions Reprint No. 4
as at
(1) In section 3(1) of the Duties Act 2000-- 1 March 2005
and
(a) insert the following definition-- amending
Act No.
36/2005.
' "National Schedule" means the Schedule
5 LawToday:
to the Road Transport Charges www.dms.
dpc.vic.
(Australian Capital Territory) Act 1993 gov.au
of the Commonwealth;';
(b) for the definition of "listed trust"
substitute--
10
' "listed trust" means--
(a) a unit trust scheme all the units in
which are quoted on the
Australian Stock Exchange; or
(b) a unit trust scheme--
15
(i) all the units in which are
quoted on any exchange of
the World Federation of
Exchanges (other than the
Australian Stock Exchange);
20
and
(ii) that is declared by the
Commissioner under sub-
section (4)(a) to be a listed
trust;';
25
(c) for the definition of "MRC" substitute--
' "MRC" (Mass Rating for Charging) has
the same meaning as in the National
Schedule;';
3
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 3
(d) for the definition of "private company"
substitute--
' "private company" means--
(a) a corporation that is not limited by
shares; or
5
(b) a corporation that is not listed and
whose shares are not quoted on
the Australian Stock Exchange or
any exchange of the World
Federation of Exchanges; or
10
(c) a corporation declared by the
Commissioner under sub-section
(4)(b) to be a private company;';
(e) in the definition of "widely held trust", for
paragraphs (b) and (c) substitute--
15
"(b) that has not less than 300 registered
unitholders; and
(c) in which units have been offered to the
public under a prospectus or product
disclosure statement lodged with the
20
Australian Securities and Investments
Commission; and
(d) none of the registered unitholders in
which, either individually or together
with associated persons, holds or is
25
entitled to more than 20% of the units
in the scheme.".
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Act No.
Part 2--Duties Act 2000
s. 3
(2) After section 3(3) of the Duties Act 2000
insert--
'(4) The Commissioner, by instrument, may--
(a) declare that a unit trust scheme all the
units in which are quoted on any
5
exchange of the World Federation of
Exchanges (other than the Australian
Stock Exchange) is a listed trust for the
purposes of this Act if the
Commissioner is satisfied that the
10
listing of the unit trust scheme was not
for the purpose of, or as part of a
scheme or arrangement with a collateral
purpose of, avoiding or reducing duty
otherwise chargeable under Part 2 of
15
Chapter 3;
(b) declare that a corporation is a private
company for the purposes of this Act if
the Commissioner is satisfied that the
listing of the corporation was for the
20
purpose of, or as part of a scheme or
arrangement with a collateral purpose
of, avoiding or reducing duty otherwise
chargeable under Part 2 of Chapter 3.
(5) For the purposes of the definition of "widely
25
held trust" in sub-section (1), if a registered
unitholder holds units as a trustee of a
number of different trusts, the unitholder is
taken to be a separate registered unitholder in
relation to each trust and the units held are
30
taken to be separate unitholdings, except
where the beneficiaries of the trusts are the
same or associated persons.'.
5
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 4
4. New section 55 inserted
After section 54 of the Duties Act 2000 insert--
'55. Equity release programs
(1) No duty is chargeable under this Chapter in
respect of a transaction if, on application, the
5
Commissioner is satisfied that it is a
transaction taking place on or after 15 June
2005 under an equity release program that
results in a change in beneficial ownership of
dutiable property, being--
10
(a) the acquisition of a beneficial interest in
the property by the financial institution
as a result of the execution of the sale
contract and payment of the amount
payable by the financial institution to
15
the homeowner on the day the sale
contract is executed or within
5 business days afterwards; or
(b) the extinction of the beneficial interest,
or part of the beneficial interest, in the
20
property referred to in paragraph (a).
(2) An application for an exemption under this
section--
(a) must be in the approved form; and
(b) must be accompanied by a copy of the
25
sale contract.
(3) The Commissioner may require further
information for the purposes of this section.
6
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 4
(4) In this section--
"equity release program" means an
arrangement between a financial
institution and a homeowner in
accordance with which the financial
5
institution and the homeowner enter
into a contract of sale of land occupied
as the homeowner's principal place of
residence ("the sale contract"), under
which--
10
(a) the financial institution purchases
a part interest in the land; and
(b) the financial institution pays the
homeowner an amount for that
interest on the day that the sale
15
contract is executed or within
5 business days afterwards; and
(c) subject to paragraph (d), the
homeowner retains legal title to
the whole of the land and the land
20
is not mortgaged after the sale
contract has come into existence;
and
(d) the sale contract may be
terminated only in one of the
25
following ways--
(i) by the homeowner paying an
amount to the financial
institution; or
(ii) if the homeowner vacates the
30
land, by the financial
institution requiring the
homeowner to pay an
amount to the financial
institution and the
35
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 4
homeowner paying that
amount; or
(iii) by the homeowner selling
the property to a third party
and paying an amount to the
5
financial institution on the
completion of that sale; or
(iv) if the homeowner (or, if
there is more than one, the
surviving homeowner) dies,
10
by the land being sold to a
third party and an amount
being paid to the financial
institution on the completion
of that sale; and
15
(e) the homeowner is not required to
make any payments to the
financial institution during the life
of the sale contract in any form
that in substance reflects interest;
20
"financial institution" means--
(a) a financial institution within the
meaning of section 3(1); or
(b) a friendly society;
"homeowner" means a person of or over
25
pension age who, immediately before
entering into the sale contract, holds an
estate in fee simple in the whole of the
land that is occupied by the person as
his or her principal place of residence
30
and whose estate is not subject to any
mortgage;
8
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 5
"pension age" has the same meaning as in
paragraph (b) of the definition of
"pension age" in section 23(1) of the
Social Security Act 1991 of the
Commonwealth.
5
(5) Two or more persons together are
homeowners if each of them satisfies the
definition of "homeowner" in sub-
section (4).'.
5. Land-rich provisions--landholders
10
(1) In section 71(3) of the Duties Act 2000--
(a) in paragraph (g), after "74(5))" insert
", including any debt existing between the
landholder and a linked entity to the extent
of the percentage of the interest the
15
landholder holds in the linked entity";
(b) in paragraph (i), for "prescribed property"
substitute "any property of a kind prescribed
by the regulations".
(2) For section 73(1) of the Duties Act 2000
20
substitute--
"(1) For the purposes of this Part, the vendor and
purchaser under an uncompleted agreement
for the sale of land are taken to be separately
entitled to the whole of the land.".
25
(3) After section 73(2) of the Duties Act 2000
insert--
"(3) For the purposes of this Part--
(a) a reference to a vendor includes a
reference to a person who, at the time
30
of a relevant acquisition, was the
grantee of a put option or grantor of a
call option;
9
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 6
(b) a reference to a purchaser includes a
reference to a person who, at the time
of a relevant acquisition--
(i) held a transfer right (within the
meaning of Part 4A of Chapter 2);
5
or
(ii) was the grantor of a put option or
grantee of a call option;
(c) a reference to an uncompleted
agreement includes a reference to an
10
arrangement that includes both a put
option and a call option.".
6. Land-rich provisions--acquisitions of interests in
landholders
(1) In section 76(1) of the Duties Act 2000 omit
15
"or otherwise".
(2) After section 77(2) of the Duties Act 2000
insert--
"(2A) In addition to sub-section (1), a person who
holds an interest in a land rich landholder
20
acquires an interest in the landholder if the
capacity in which the person holds the
interest changes.
(2B) Without limiting sub-section (2A), a person
who has a beneficial interest in a land rich
25
landholder and who declares a trust over that
interest is taken, by that declaration of trust,
to have acquired an interest in the
landholder.
10
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 7
(2C) For the purposes of section 79, an acquisition
of an interest referred to in sub-section (2A)
or (2B) is to be treated as a separate
acquisition from existing interests held by
the acquirer or any other acquisition of an
5
interest in a land rich landholder unless those
acquisitions are made on behalf of the same
person or associated persons.".
(3) In section 79(1)(a)(iii) of the Duties Act 2000,
after "acquired by the person" insert "as set out in
10
sub-paragraph (ii)".
(4) After section 79(3) of the Duties Act 2000
insert--
"(3A) For the purposes of this Part, persons in their
capacity as qualifying investors of a
15
wholesale unit trust scheme are taken not to
be associated persons of other qualifying
investors in relation to the scheme.".
(5) in section 79(6) of the Duties Act 2000, for
"outcome or decisions" substitute "outcome of
20
decisions".
(6) In section 83(2)(a) of the Duties Act 2000, after
"section 79(1)(a)" insert "and (b)".
7. Land-rich provisions--agreements for sale, transfer
or purchase of land and other property
25
After section 88(5) of the Duties Act 2000
insert--
"(6) For the purposes of this section--
(a) a reference to a vendor includes a
reference to a person who, at the time
30
of a relevant acquisition, was the
grantee of a put option or grantor of a
call option;
11
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Act No.
Part 2--Duties Act 2000
s. 8
(b) a reference to a purchaser includes a
reference to a person who, at the time
of a relevant acquisition--
(i) held a transfer right (within the
meaning of Part 4A of Chapter 2);
5
or
(ii) was the grantor of a put option or
grantee of a call option;
(c) a reference to an uncompleted
agreement includes a reference to an
10
arrangement that includes both a put
option and a call option.".
8. Disqualifying circumstances for certain unit trust
schemes
For section 89B(1) of the Duties Act 2000
15
substitute--
'(1) In this section, "disqualifying
circumstance" means--
(a) a circumstance that causes a unit trust
scheme that is registered under
20
Division 7 to cease to meet the relevant
criteria for registration; or
(b) subject to sub-section (1A), the failure
by a unit trust scheme that is registered
under Division 7 to meet a condition of
25
registration, or the contravention of a
condition of registration by a unit trust
scheme or the trustee of the scheme.
(1A) A failure or contravention referred to in sub-
section (1)(b) is not a disqualifying
30
circumstance if the Commissioner so
determines, being satisfied that the
application of this section to the unit trust
scheme in the particular case would not be
just or reasonable.'.
35
12
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 9
9. Sale of private unit trust scheme through conversion
to public unit trust scheme
For section 89C(1)(b)(i) of the Duties Act 2000
substitute--
"(i) a payment is made to or on behalf of a
5
person who, or persons who together, held
units representing an interest of at least 20%
in the private unit trust scheme immediately
before the agreement or arrangement was
made; or".
10
10. Registration of unit trust schemes
(1) In section 89K(1) of the Duties Act 2000--
(a) in the definition of "qualified investor", after
paragraph (g) insert--
"(ga) as custodian or trustee for an investor
15
directed portfolio service, within the
meaning of the relevant ASIC policy
statement, if the custodian or trustee
holds its interest in the unit trust
scheme for not less than 300 clients as
20
investors through the service, none of
whom (individually or together with
any associated person) is beneficially
entitled to more than 20% of the units
held by the custodian or trustee in the
25
unit trust scheme;";
(b) in the definition of "qualified investor", in
paragraph (h), for "sub-section (3)."
substitute "sub-section (3);";
13
551367B.A1-18/11/2005 BILL LA AS SENT 18/11/2005
Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 10
(c) after the definition of "qualified investor"
insert--
' "relevant ASIC policy statement" means
the policy statement "PS 148: Investor
Directed Portfolio Services" published
5
by the Australian Securities and
Investments Commission, or any other
policy statement published by that
Commission that the Commissioner
from time to time approves for the
10
purposes of this Division.'.
(2) For section 89K(3) of the Duties Act 2000
substitute--
'(3) The Commissioner may approve a capacity
to be a capacity for the purposes of
15
paragraph (h) of the definition of "qualified
investor" in sub-section (1) if satisfied that--
(a) the capacity corresponds to a capacity
referred to in paragraph (a), (b), (c), (d),
(e) or (f) of that definition under the
20
law of an external Territory or of a
country outside Australia; or
(b) the capacity is as a wholly owned
subsidiary (within the meaning of the
Corporations Act) of a person in a
25
capacity referred to in paragraph (a).'.
(3) After section 89N(2) of the Duties Act 2000
insert--
"(3) The Commissioner may impose any
conditions he or she considers appropriate on
30
the registration of a unit trust scheme as a
declared public unit trust scheme.".
14
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Act No.
Part 2--Duties Act 2000
s. 11
(4) After section 89PA(2) of the Duties Act 2000
insert--
"(3) The Commissioner may impose any
conditions he or she considers appropriate on
the registration of a unit trust scheme as a
5
declared wholesale unit trust scheme.".
11. New section 217 substituted
For section 217 of the Duties Act 2000
substitute--
"217. When does duty become payable?
10
(1) Duty becomes payable on the lodging of the
application for registration or transfer of
registration of the motor vehicle.
Note: Currently regulations 212 and 230 of the Road
15 Safety (Vehicles) Regulations 1999 contain the
requirements for lodgement of applications for
registration or transfer of registration of a
motor vehicle.
(2) If an application for transfer of registration
of a motor vehicle is not lodged within the
20
time required by law, penalty tax and interest
are payable under the Taxation
Administration Act 1997 on any duty
payable on the application as if the duty had
been payable at the time the application was
25
required to be lodged.
(3) In addition to sub-section (2), if an
application for transfer of registration of a
motor vehicle is not lodged within the time
required by law, the person required to lodge
30
the application is liable to a further penalty
of--
15
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Act No.
Part 2--Duties Act 2000
s. 12
(a) an amount equal to the amount of duty
payable on the application and interest
on that amount at the rate of 20% per
annum from the day on which the
application was required to be lodged;
5
or
(b) $25--
whichever is the greater.
(4) If an application for transfer of registration
of a motor vehicle is lodged within the time
10
required by law but duty on the application is
not paid on or before the lodging of the
application, the person required to lodge the
application is liable to a penalty of--
(a) an amount equal to the amount of duty
15
payable on the application and interest
on that amount at the rate of 20% per
annum from the day on which the
application was lodged; or
(b) $25--
20
whichever is the greater.
(5) The penalty imposed by sub-section (4) is in
addition to any penalty tax and interest
payable under the Taxation Administration
Act 1997.
25
(6) The Commissioner, in such circumstances as
the Commissioner considers appropriate,
may remit the penalty imposed by sub-
section (3) or (4) by any amount.".
12. Motor vehicle duty--consequential amendments
30
In the Duties Act 2000--
(a) in section 217A(1) omit "making or";
(b) in sections 229 and 232, for "made"
(wherever occurring) substitute "lodged".
16
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 2--Duties Act 2000
s. 13
13. New section 233 substituted and sections 233A to
233H inserted
For section 233 of the Duties Act 2000
substitute--
'233. Primary producer vehicles
5
(1) No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a heavy trailer--
(a) registered or to be registered in the
name of a primary producer; and
10
(b) used or to be used solely in the business
of the registered operator as a primary
producer.
(2) No duty is chargeable under this Chapter on
an application for registration or transfer of
15
registration of a vehicle registered or to be
registered in the name of a primary producer
used or to be used solely in the business of
the applicant for registration or the registered
operator as a primary producer, being--
20
(a) a motor vehicle--
(i) so constructed that its engine is
used to drive or operate an
agricultural implement forming an
integral part of the vehicle; and
25
(ii) the primary purpose of which is
not to carry a load; or
(b) a tractor with an MRC of 45 tonnes or
less; or
(c) a primary producer special vehicle.
30
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Act No.
Part 2--Duties Act 2000
s. 13
(3) No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a vehicle registered or to be
registered in the name of a primary producer
used or to be used for travelling within a
5
radius of 25 kilometres from the registered
operator's residence or residential address for
the purpose of working the land of another
primary producer, being--
(a) a motor vehicle--
10
(i) so constructed that its engine is
used to drive or operate an
agricultural implement forming an
integral part of the vehicle; and
(ii) the primary purpose of which is
15
not to carry a load; or
(b) a tractor with an MRC of 45 tonnes or
less; or
(c) a primary producer special vehicle.
(4) No duty is chargeable under this Chapter on
20
an application for registration or transfer of
registration of a Special Purpose Vehicle
(type 2) as defined in Part 2 of the National
Schedule that is--
(a) conditionally registered or to be
25
registered in the name of a primary
producer to operate on a highway at
any distance from the registered
operator's residence or residential
address; and
30
(b) used or to be used solely in the business
of the registered operator as a primary
producer.
18
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Act No.
Part 2--Duties Act 2000
s. 13
(5) In this section--
"agricultural implement" means a vehicle
without its own motive power, built to
perform agricultural tasks;
"load", in relation to a vehicle, includes
5
anything that is normally removed from
the vehicle when not in use;
"primary producer" means a person--
(a) engaged solely or substantially in
agricultural, horticultural,
10
viticultural, dairying, pastoral or
other like pursuits; or
(b) who is a commercial fisherman
the holder of a licence to take fish
for sale;
15
"primary producer special vehicle" means
a vehicle that--
(a) is steered by means of a handle
bar; and
(b) is designed for the carriage of not
20
more than 1 person; and
(c) has 3 or 4 wheels; and
(d) has a width not exceeding
115 metres; and
(e) has a tare mass not exceeding
25
210 kilograms;
"residential address", in relation to a
company or other body corporate,
means its registered office or any place
recorded in the register as its residential
30
address or business address.
19
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s. 13
233A. Transport for disabled, handicapped or
injured
No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a vehicle that--
5
(a) is registered or to be registered in the
name of St John's Ambulance Australia
(Victoria) Inc and is used for the
transport of the disabled, handicapped
or injured; or
10
(b) is registered or to be registered in, and
marked with, the name of a corporate or
unincorporated body established for a
public purpose and not for private gain
and is only used for the conveyance of
15
disabled or handicapped people for
training, education or employment.
233B. Incapacitated person's vehicle
No duty is chargeable under this Chapter on
an application for registration or transfer of
20
registration of a vehicle registered or to be
registered in the name of an incapacitated
person if--
(a) the vehicle is designed solely for the
conveyance of one incapacitated
25
person; and
(b) the person's mobility is seriously
impaired; and
(c) the vehicle will not be used to convey
any other person.
30
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233C. Private vehicle used to convey
incapacitated person
(1) No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a vehicle referred to in sub-
5
section (2) that is registered or to be
registered in the name of--
(a) an incapacitated person; or
(b) the parent or legal guardian of an
incapacitated person who is a minor.
10
(2) Sub-section (1) applies to a vehicle that--
(a) is specially converted to provide
wheelchair access to and egress from
the vehicle; and
(b) is capable of carrying at least one
15
occupied wheelchair; and
(c) is or is to be used for conveying an
incapacitated person whose mobility is
seriously impaired; and
(d) is not a taxi-cab within the meaning of
20
the Transport Act 1983.
233D. Government or charitable vehicle used to
convey incapacitated person
(1) No duty is chargeable under this Chapter on
an application for registration or transfer of
25
registration of a vehicle referred to in sub-
section (2) that is registered or to be
registered in the name of--
(a) a charitable, benevolent or religious
institution; or
30
(b) the Crown; or
(c) a public statutory authority; or
(d) a municipal council.
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(2) Sub-section (1) applies to a vehicle that--
(a) is specially converted to provide
wheelchair access to and egress from
the vehicle; and
(b) is capable of carrying at least one
5
occupied wheelchair; and
(c) is or is to be used for conveying an
incapacitated person whose mobility is
seriously impaired; and
(d) is marked with the name of the
10
registered operator or, in the case of the
Crown, with the name of the relevant
department or agency; and
(e) is not a taxi-cab within the meaning of
the Transport Act 1983.
15
233E. Incapacitated war veteran's vehicle
No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a motor vehicle not used
except for social, domestic or pleasure
20
purposes registered or to be registered in the
name of a person who--
(a) is assessed pursuant to the Veterans'
Entitlement Act 1986 of the
Commonwealth--
25
(i) as a veteran to whom section 22 of
that Act applies at the 100% or
higher rate; or
(ii) as a veteran to whom section 23,
24, 25 or 104 of that Act applies;
30
and
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(b) operates no other vehicle currently
registered without fee as an
incapacitated war veteran's vehicle in
accordance with regulations made
under the Road Safety Act 1986.
5
233F. Fire fighting and emergency response
vehicle
No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a vehicle that--
10
(a) is owned by a State Emergency Service
volunteer unit, a Country Fire Authority
brigade or a municipal council; and
(b) is registered or to be registered in the
name of a nominee on behalf of the unit
15
or brigade or in the name of a
municipal council; and
(c) is certified by the State Emergency
Service or the Country Fire Authority
as a vehicle that is specifically
20
equipped for and exclusively used for
combating outbreaks of fire or for
emergency response.
233G. Consular vehicle
No duty is chargeable under this Chapter on
25
an application for registration or transfer of
registration of a vehicle that is registered or
to be registered in the name of a person
who--
(a) holds a diplomatic post of the rank of
30
Consul-General, Consul or Vice
Consul; or
23
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s. 13
(b) is an Honorary Head of Post or a person
employed in the administrative or
technical service of a consulate-general,
consulate, vice-consulate or consular
agency who--
5
(i) is not an Australian citizen; and
(ii) is not holding the post of Trade
Commissioner.
233H. Repossessions and restorations
(1) No duty is chargeable under this Chapter on
10
an application for transfer of registration of a
motor vehicle lodged by--
(a) a person who has taken or is taking
possession of a motor vehicle from the
registered operator under a security
15
interest held by the person; or
(b) a person who was formerly the
registered operator of a motor vehicle
and who has taken or is taking
possession of the vehicle from another
20
person who holds or held a security
interest in the vehicle.
(2) In this section--
"security interest", in relation to a motor
vehicle, means an interest in, or a
25
power over, the vehicle that secures
payment of a debt or other pecuniary
obligation or the performance of any
other obligation but does not include a
possessory lien or pledge.'.
30
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Part 2--Duties Act 2000
s. 14
14. Motor vehicle duty--further consequential
amendments
In the Duties Act 2000--
(a) in sections 234A(1), 234B and 235(1) omit
"made";
5
(b) in section 235(2) for "made" (where first and
secondly occurring) substitute "lodged";
(c) in sections 236 and 238(1), for "made"
(wherever occurring) substitute "lodged";
(d) section 239 is repealed.
10
15. Valuation of property
After section 273(3) of the Duties Act 2000
insert--
"(4) If a valuation of property covers more than
one parcel of land, sub-section (3) applies in
15
relation to the valuation of each single parcel
of land.
(5) Sub-section (4) does not apply if the
valuation under sub-section (2) does not lead
to an increase in the tax liability of the
20
taxpayer.
Example
A taxpayer is liable to duty on the aggregate value of
3 parcels of land. The taxpayer provides a valuation
25 of each parcel and a valuation is also obtained under
sub-section (2). If the valuation of any one of those
parcels under sub-section (2) exceeds the valuation of
that parcel provided by the taxpayer by 15% or more
and the taxpayer does not object, or the valuation of
30 that parcel as determined on objection, appeal or
review exceeds the taxpayer's valuation by 15% or
more, the taxpayer must pay the cost of the valuation
of that parcel, unless the valuation under sub-
section (2) does not lead to an increase in the
35 taxpayer's total liability for duty.".
25
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s. 16
16. Transitional
In Schedule 2 to the Duties Act 2000, after
clause 21 insert--
'22. Duties and Land Tax Acts (Amendment) Act 2005
5 (1) This clause has effect for the purposes of the
definition of "listed trust" in section 3(1) of this Act.
(2) Despite the substitution of the definition by
section 3(1)(b) of the Duties and Land Tax Acts
(Amendment) Act 2005, a unit trust scheme that,
10 immediately before the commencement of that
section 3(1)(b), was a listed trust for the purposes of
this Act continues, on and after that commencement,
to be a listed trust for the purposes of this Act while
all its units continue to be quoted on the Australian
15 Stock Exchange or any exchange of the World
Federation of Exchanges.'.
17. Statute law revision
Section 285 of and Schedule 1 to the Duties Act
2000 are repealed.
__________________
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Duties and Land Tax Acts (Amendment) Act 2005
Act No.
Part 3--Land Tax Act 1958
s. 18
See:
PART 3--LAND TAX ACT 1958
Act No.
6289.
18. Definitions Reprint No. 13
as at
(1) In section 3(1) of the Land Tax Act 1958-- 11 August
2005.
(a) insert the following definitions-- LawToday:
www.dms.
dpc.vic.
' "beneficiary" of a discretionary trust,
5 gov.au
means a person, or a member of a class
of persons, in whom, by the terms of
the trust, the whole or any part of the
trust property may be vested--
(a) in the event of the exercise of a
10
power or discretion in favour of
the person (whether or not that
power is presently exercisable); or
(b) in the event that a discretion
conferred under the trust is not
15
exercised;
"child maintenance land" means land held
on trust that was transferred to the
trustee for the benefit of a beneficiary
as the result of a family breakdown
20
within the meaning of section 102AGA
of the Income Tax Assessment Act
1936 of the Commonwealth;
"Commonwealth Superannuation Act"
means the Superannuation Industry
25
(Supervision) Act 1993 of the
Commonwealth;
27
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Act No.
Part 3--Land Tax Act 1958
s. 18
"concessional trust" means--
(a) a trust of which each beneficiary
is--
(i) a person in respect of whom
a guardianship order or an
5
administration order is in
force under the
Guardianship and
Administration Act 1986;
or
10
(ii) a person with a disability
within the meaning of the
Disability Services Act
1991; or
(b) a trust created under an order of
15
the Supreme Court for the benefit
of a person under disability;
"discretionary trust" means a trust under
which the vesting of the whole or any
part of the trust property--
20
(a) is required to be determined by a
person either in respect of the
identity of the beneficiaries or the
quantum of interest to be taken, or
both; or
25
(b) will occur in the event that a
discretion conferred under the
trust is not exercised--
but does not include an excluded trust,
a fixed trust or a trust to which a unit
30
trust scheme relates;
28
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s. 18
"excluded trust" means--
(a) a charitable trust;
(b) a concessional trust;
(c) a public unit trust scheme;
(d) a wholesale unit trust scheme;
5
(e) a trust the sole beneficiary or
beneficiaries of which is or are--
(i) a club referred to in
section 13; or
(ii) the members of such a club;
10
(f) a trust established by a will, but
only during the period ending on
the later of--
(i) the 3rd anniversary of the
testator's death or the further
15
period approved by the
Commissioner under sub-
section (6); or
(ii) if, at the testator's death, all
the potential beneficiaries are
20
minors--the 18th birthday of
the first beneficiary to
turn 18;
(g) a trust, for any tax year in relation
to which it is a superannuation
25
trust;
"fixed trust" means a trust that is not an
excluded trust, a discretionary trust or a
trust to which a unit trust scheme
relates;
30
"listed trust" has the same meaning as in
the Duties Act 2000;
29
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s. 18
"nominated beneficiary" of a discretionary
trust, means a person nominated under
section 52D;
"nominated PPR beneficiary" means a
person nominated under section 52F;
5
"pre-2006 land", in relation to a trust,
means land that was subject to that trust
at midnight on 31 December 2005;
"post-2006 land", in relation to a trust,
means land that became subject to that
10
trust on or after 1 January 2006;
"public unit trust scheme" means--
(a) a listed trust; or
(b) a widely held trust; or
(c) a registered imminent public unit
15
trust scheme or registered declared
public unit trust scheme (within
the meaning of the Duties Act
2000);
"superannuation trust" means, in relation
20
to a tax year--
(a) a trust established on or before
30 June in the year preceding the
tax year that, in relation to the
year of income ending in that
25
year, is--
(i) a complying superannuation
fund (within the meaning of
section 42 or 42A of the
Commonwealth
30
Superannuation Act); or
30
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s. 18
(ii) a complying approved
deposit fund (within the
meaning of section 43 of the
Commonwealth
Superannuation Act); or
5
(iii) a pooled superannuation trust
(within the meaning of
section 44 of the
Commonwealth
Superannuation Act); or
10
(b) a trust established after 30 June in
the year preceding the tax year
that, as at midnight on
31 December in that year, is--
(i) a regulated superannuation
15
fund (within the meaning of
the Commonwealth
Superannuation Act) or is
taken to be a regulated
superannuation fund under
20
that Act; or
(ii) an approved deposit fund
(within the meaning of the
Commonwealth
Superannuation Act); or
25
(iii) a pooled superannuation trust
(within the meaning of the
Commonwealth
Superannuation Act);
"trust" does not include an implied or a
30
constructive trust;
31
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"unit" in a unit trust scheme, means--
(a) a right or interest (whether
described as a unit or a sub-unit or
otherwise) of a beneficiary under
the scheme; or
5
(b) a right to any such right or
interest--
that entitles the beneficiary to
participate proportionately with other
unitholders in a distribution of the
10
property of the trust on its vesting;
"unit trust scheme" means an arrangement
made for the purpose, or having the
effect, of providing facilities for
participation by a person, as a
15
beneficiary under a trust, in any profit
or income arising from the acquisition,
holding, management or disposal of
property under the trust, but does not
include an excluded trust;
20
"wholesale unit trust scheme" means a unit
trust scheme that is registered under
Division 7 of Part 2 of Chapter 3 of the
Duties Act 2000 as a wholesale unit
trust scheme, an imminent wholesale
25
unit trust scheme or a declared
wholesale unit trust scheme;
"widely held trust" has the same meaning
as that term would have in the Duties
Act 2000 if a reference in paragraph (b)
30
of the definition of "widely held trust"
in section 3(1) of that Act to
"300 registered unitholders" were a
reference to "50 registered
unitholders";';
35
32
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s. 19
(b) the definition of "special trust" is repealed;
(c) in the definition of "trustee" omit "express or
implied".
(2) After section 3(5A) of the Land Tax Act 1958
insert--
5
'(6) For the purposes of paragraph (f)(i) of the
definition of "excluded trust" in sub-
section (1), the Commissioner may approve a
further period in any particular case.'.
(3) In section 13AA of the Land Tax Act 1958--
10
(a) in sub-section (1), the definitions of
"discretionary trust" and "unit trust scheme"
are repealed;
(b) sub-section (2) is repealed.
(4) After section 9(1C) of the Land Tax Act 1958
15
insert--
"(1CA) A reference to an owner of land in sub-
section (1)(ha) does not include a reference
to a beneficiary of a trust or a unitholder in a
unit trust scheme to which the land is
20
subject.".
19. Assessment and liability of joint owners
After section 45(5) of the Land Tax Act 1958
insert--
"(5A) If a joint owner of land is a trustee of a trust
25
to which the land is subject, no regard is to
be had to the existence of the trust in relation
to the joint assessment and liability of the
joint owners of the land as referred to in sub-
section (2), but regard is to be had to the
30
existence of the trust in relation to the
separate assessment and liability of the joint
owners as referred to in sub-section (3).".
33
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s. 20
20. New sections 51 and 52 substituted and sections 52A
to 52J inserted
For sections 51 and 52 of the Land Tax Act 1958
substitute--
'51. General land tax surcharge for trusts
5
(1) A person who is the owner of land as trustee
of a trust is liable for land tax on the land--
(a) for 2006, as determined under clause 10
of the Second Schedule;
(b) for 2007, as determined under clause 11
10
of the Second Schedule;
(c) for 2008 and each subsequent year, as
determined under clause 12 of the
Second Schedule.
(2) The trustee is to be assessed for land tax on
15
the whole of the land subject to the trust as if
the land were the only land owned by the
trustee.
(3) This section does not apply to--
(a) land subject to a unit trust scheme if an
20
appointment of a nominated PPR
beneficiary for the scheme is in force
and the land is used and occupied as the
principal place of residence of the
nominated PPR beneficiary; or
25
(b) land subject to a discretionary trust if--
(i) an appointment of a nominated
beneficiary for the trust is in force;
or
34
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s. 20
(ii) an appointment of a nominated
PPR beneficiary for the trust is in
force and the land is used and
occupied as the principal place of
residence of the nominated PPR
5
beneficiary; or
(c) land subject to an excluded trust.
(4) This section is subject to sections 52
and 52A.
(5) A trustee of child maintenance land who
10
would be liable to land tax in accordance
with sub-section (1) but for this sub-section
is liable for land tax as determined under
clause 7, 8 or 9 of the Second Schedule
(as the case may be), and is to be assessed
15
for that tax as if the child maintenance land
were the only land owned by the trustee.
52. Land tax for fixed trust if beneficial
interests notified to Commissioner
(1) A trustee of a fixed trust to which land is
20
subject may lodge with the Commissioner a
written notice of the beneficial interests in
the land.
(2) A notice must--
(a) be in the form, and contain the
25
information, determined by the
Commissioner; and
(b) be lodged with the Commissioner on or
before--
(i) if any of the land subject to the
30
trust is pre-2006 land--the later of
30 June 2006 or 3 months after the
day on which a liability first arises
for land tax on the land; or
35
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s. 20
(ii) if the only land subject to the trust
is post-2006 land--in the year in
which the land first became
subject to the trust.
(3) A notice takes effect--
5
(a) for the 2006 tax year if it is lodged on
or before 30 June 2006 in respect of
pre-2006 land; or
(b) in any other case, for the tax year after
the year in which the notice is lodged--
10
and remains in force until it is withdrawn by
the trustee.
(4) If a notice is in force under this section for a
fixed trust--
(a) a beneficiary of the trust is deemed to
15
be the owner (but not to the exclusion
of the trustee) of land subject to the
trust that bears the same proportion to
the whole of the land subject to the trust
as the beneficiary's beneficial interest in
20
land subject to the trust bears to the
total beneficial interests in land subject
to the trust, and is to be assessed for
land tax on that land accordingly,
together with any other land owned by
25
the beneficiary, in accordance with
clause 7, 8 or 9 of the Second Schedule
(as the case may be); and
(b) the trustee of the trust is to be assessed
for land tax on the whole of the land
30
subject to the trust in accordance with
clause 7, 8 or 9 of the Second Schedule
(as the case may be) as if the land were
the only land owned by the trustee.
36
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s. 20
(5) There is to be deducted from the land tax
payable by a beneficiary under sub-
section (4)(a) an amount (if any) necessary to
avoid double taxation, being the lesser of--
(a) the amount determined by the formula:
5
A×B
where--
A is the proportion of the
beneficiary's beneficial interest in
land subject to the trust to the total
10
beneficial interests in land subject
to the trust;
B is the total amount of tax assessed
on the trustee under sub-section
(4)(b); and
15
(b) the amount determined by the formula:
C
×E
D
where--
C is the taxable value of the land of
which the beneficiary is deemed
20
by sub-section (4)(a) to be the
owner;
D is the total taxable value of all
land owned by the beneficiary;
E is the amount of tax assessed on
25
the beneficiary under sub-
section (4)(a).
37
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s. 20
(6) For the purposes of this section, the trustee's
right of indemnity from the trust property is
taken not to be a beneficial interest in the
land subject to the trust.
(7) Sub-section (4)(a) does not apply to a
5
beneficiary who holds a beneficial interest as
trustee of another trust.
Note: Section 52B(1)(a) deems such a person to be
the owner of land.
52A. Land tax for unit trust scheme if
10
unitholdings notified to Commissioner
(1) A trustee of a unit trust scheme to which land
is subject may lodge with the Commissioner
a written notice of the unitholdings in the
scheme.
15
(2) A notice must--
(a) be in the form, and contain the
information, determined by the
Commissioner; and
(b) be lodged with the Commissioner on or
20
before--
(i) if any of the land subject to the
scheme is pre-2006 land--the
later of 30 June 2006 or 3 months
after the day on which a liability
25
first arises for land tax on the
land; or
(ii) if the only land subject to the
scheme is post-2006 land--in the
year in which the land first
30
became subject to the scheme.
38
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s. 20
(3) A notice takes effect--
(a) for the 2006 tax year if it is lodged on
or before 30 June 2006 in respect of
pre-2006 land; or
(b) in any other case, for the tax year after
5
the year in which the notice is lodged--
and remains in force until it is withdrawn by
the trustee.
(4) If a notice is in force under this section for a
unit trust scheme--
10
(a) a unitholder in the scheme is deemed,
for the purposes of this Act other than
Part IIA, to be the owner (but not to the
exclusion of the trustee) of land subject
to the scheme that bears the same
15
proportion to the whole of the land
subject to the scheme as the unitholder's
unitholding in the scheme bears to the
total unitholdings in the scheme, and is
to be assessed for land tax on that land
20
accordingly, together with any other
land owned by the unitholder, in
accordance with clause 7, 8 or 9 of the
Second Schedule (as the case may be);
and
25
(b) the trustee of the scheme is to be
assessed for land tax on the whole of
the land subject to the scheme in
accordance with clause 7, 8 or 9 of the
Second Schedule (as the case may be)
30
as if the land were the only land owned
by the trustee.
(5) There is to be deducted from the land tax
payable by a unitholder under sub-
section (4)(a) an amount (if any) necessary to
35
avoid double taxation, being the lesser of--
39
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Act No.
Part 3--Land Tax Act 1958
s. 20
(a) the amount determined by the formula:
A×B
where--
A is the proportion of the
unitholder's unitholding in the
5
scheme to the total unitholdings in
the scheme;
B is the total amount of tax assessed
on the trustee under sub-section
(4)(b); and
10
(b) the amount determined by the formula:
C
×E
D
where--
C is the taxable value of the land of
which the unitholder is deemed by
15
sub-section (4)(a) to be the owner;
D is the total taxable value of all
land owned by the unitholder;
E is the amount of tax assessed on
the unitholder under sub-
20
section (4)(a).
(6) Sub-section (4)(a) does not apply to a
unitholder who holds units as trustee of
another trust.
25 Note: Section 52B(1)(b) deems such a person to be
the owner of land.
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52B. Land tax for beneficiary/trustees
(1) For the purposes of this Act--
(a) a person who holds a beneficial interest
in land subject to a fixed trust in respect
of which a notice is in force under
5
section 52 ("the first trust") as trustee
of another trust ("the second trust") is
deemed to be the owner of land subject
to the first trust that bears the same
proportion to the whole of the land
10
subject to the first trust as the person's
beneficial interest in the land subject to
the first trust bears to the total
beneficial interests in land subject to
the first trust;
15
(b) a person who holds units in a unit trust
scheme in respect of which a notice is
in force under section 52A ("the first
scheme") as trustee of another trust
("the second trust") is deemed, for the
20
purposes of this Act other than Part IIA,
to be the owner of land subject to the
first scheme that bears the same
proportion to the whole of the land
subject to the first scheme as the
25
person's unitholding in the first scheme
bears to the total unitholdings in the
first scheme.
(2) For the purposes of this section, a person
referred to in sub-section (1) is called a
30
"beneficiary/trustee".
(3) There is to be deducted from any land tax
payable by a beneficiary/trustee on land that
is subject to the second trust an amount (if
any) necessary to avoid double taxation,
35
being the lesser of--
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(a) the amount determined by the formula:
A×B
where--
A is--
(a) the proportion of the
5
beneficiary/trustee's
beneficial interest in land
subject to the first trust to the
total beneficial interests in
land subject to the first trust;
10
or
(b) the proportion of the
beneficiary/trustee's
unitholding in the first
scheme to the total
15
unitholdings in the first
scheme;
B is the total amount of tax assessed
on the trustee of the first trust or
the first scheme on the whole of
20
the land subject to the first trust or
first scheme; and
(b) the amount determined by the formula:
C
×E
D
where--
25
C is the taxable value of the land of
which the beneficiary/trustee is
deemed by sub-section (1) to be
the owner;
D is the total taxable value of all
30
land owned by the
beneficiary/trustee that is subject
to the second trust;
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E is the amount of tax assessed
under this Act on the
beneficiary/trustee in respect of all
land owned by the
beneficiary/trustee that is subject
5
to the second trust.
52C. Land tax for excluded trusts
A trustee of an excluded trust is to be
assessed for land tax on the whole of the land
subject to the trust as if the land were the
10
only land owned by the trustee.
Note: The land tax is to be assessed in accordance
with clause 7, 8 or 9 of the Second Schedule
(as the case may be).
52D. Nomination of beneficiary of pre-2006
15
discretionary trust for land tax purposes
(1) This section applies to a discretionary trust if
the trust property includes any pre-2006
land.
(2) The trustee of the trust may nominate a
20
person to be the nominated beneficiary of the
trust for the purposes of this Act.
(3) The person nominated must be--
(a) a natural person who--
(i) is a beneficiary of the trust; and
25
(ii) is of or over the age of 18 years on
31 December 2005; and
(iii) signifies in writing his or her
acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the
30
trust are under the age of 18 years on
31 December 2005.
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(4) A nomination under sub-section (2) must--
(a) be in the form, and contain the
information, determined by the
Commissioner; and
(b) be lodged with the Commissioner on or
5
before the later of--
(i) 30 June 2006; or
(ii) 3 months after the day on which a
liability first arises for land tax on
land subject to the trust.
10
(5) A nomination lodged in accordance with
sub-section (4)--
(a) takes effect--
(i) for the 2006 tax year if made on or
before 30 June 2006; or
15
(ii) in any other case, for the tax year
after the year in which the
nomination is lodged; and
(b) remains in force until--
(i) revoked by the nominated
20
beneficiary in writing given to the
Commissioner; or
(ii) the nominated beneficiary dies.
(6) If the nominated beneficiary revokes the
nomination, the trustee of the trust may
25
nominate as the nominated beneficiary--
(a) a natural person who--
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on
the date of the nomination; and
30
(iii) signifies in writing his or her
acceptance of the nomination; or
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(b) the trustee, if all beneficiaries of the
trust are under the age of 18 years on
the date of the nomination--
if the Commissioner considers that the
nomination of a beneficiary under this sub-
5
section is just and reasonable in the
particular case.
(7) If the nominated beneficiary dies, the trustee
of the trust may nominate as the nominated
beneficiary--
10
(a) a natural person who--
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on
the date of the nomination; and
(iii) signifies in writing his or her
15
acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the
trust are under the age of 18 years on
the date of the nomination.
(8) A nomination lodged under sub-section (6)
20
or (7)--
(a) must be in the form, and contain the
information, determined by the
Commissioner; and
(b) takes effect for the tax year after the
25
year in which the nomination is lodged,
unless the Commissioner determines
that it should take effect for the current
tax year, being satisfied that it is just
and reasonable in the particular case to
30
so determine; and
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(c) remains in force until--
(i) revoked by the nominated
beneficiary in writing given to the
Commissioner; or
(ii) the nominated beneficiary dies.
5
(9) A nomination may be lodged under sub-
section (6) or (7) (as the case requires) on
more than one occasion.
52E. Land tax for discretionary trust with
nominated beneficiary
10
(1) This section applies if the nomination of a
nominated beneficiary for a discretionary
trust is in force under section 52D.
(2) The nominated beneficiary is deemed, for the
purposes of this Act (other than Part IIA) but
15
for no other purpose, to be the owner of the
pre-2006 land subject to the trust (but not to
the exclusion of the trustee) and is to be
assessed for land tax on that land
accordingly, together with any other land
20
owned by the nominated beneficiary.
Note: The land tax is to be assessed in accordance
with clause 7, 8 or 9 of the Second Schedule
(as the case may be).
(3) The trustee of the trust is to be assessed for
25
land tax on the whole of the land subject to
the trust as if the land were the only land
owned by the trustee--
(a) in respect of any pre-2006 land--in
accordance with clause 7, 8 or 9 of the
30
Second Schedule (as the case may be);
and
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(b) in respect of any post-2006 land--in
accordance with clause 10, 11 or 12 of
the Second Schedule (as the case may
be).
(4) For the purposes of sub-section (3), if the
5
trust property includes both pre-2006 land
and post-2006 land, the trustee is to be
assessed in accordance with the following
formula--
A B
L = (R 1 × T ) × + (R 2 × T ) ×
10
T T
where--
L is the land tax assessed for the trustee;
R1 is the rate of land tax set out in
clause 7, 8 or 9 of the Second Schedule
(as the case may be);
15
R2 is the rate of land tax set out in
clause 10, 11 or 12 of the Second
Schedule (as the case may be);
T is the total taxable value of all land
subject to the trust;
20
A is the total taxable value of the pre-
2006 land subject to the trust;
B is the total taxable value of the post-
2006 land subject to the trust.
(5) There is to be deducted from any land tax
25
payable by the nominated beneficiary under
sub-section (2) any land tax payable by the
trustee under sub-section (3) in respect of
pre-2006 land.
(6) Sub-section (2) does not apply if the
30
nominated beneficiary is the trustee.
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52F. Nomination of PPR beneficiary of unit
trust scheme or discretionary trust for
land tax purposes
(1) The trustee of a unit trust scheme or
discretionary trust may nominate a person to
5
be the nominated PPR beneficiary of the
scheme or trust for the purposes of this Act.
(2) The person nominated must be a natural
person who is a unitholder in the scheme or a
beneficiary of the trust.
10
(3) A nomination under sub-section (1) must be
lodged with the Commissioner in the form,
and containing the information, determined
by the Commissioner.
(4) A nomination lodged in accordance with
15
sub-section (3)--
(a) takes effect--
(i) for the 2006 tax year if it is lodged
on or before 30 June 2006; or
(ii) in any other case, for the tax year
20
after the year in which the
nomination is lodged; and
(b) remains in force until the nominated
PPR beneficiary dies.
(5) If the nominated PPR beneficiary dies, the
25
trustee of the scheme or trust may nominate
a natural person who is a unitholder in the
scheme or a beneficiary of the trust as the
nominated PPR beneficiary.
(6) A nomination lodged under sub-
30
section (5)--
(a) must be in the form, and contain the
information, determined by the
Commissioner; and
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(b) takes effect for the tax year after the
year in which the nomination is lodged,
unless the Commissioner determines
that it should take effect for the current
tax year, being satisfied that it is just
5
and reasonable in the particular case to
so determine; and
(c) remains in force until the nominated
PPR beneficiary dies.
(7) A nomination may be lodged under sub-
10
section (5) on more than one occasion.
(8) This section does not apply to a unit trust
scheme if a notice is in force for the scheme
under section 52A.
52G. Land tax for PPR land if nominated PPR
15
beneficiary
(1) This section applies if the nomination of a
nominated PPR beneficiary for a unit trust
scheme or discretionary trust is in force
under section 52F.
20
(2) The trustee of the unit trust scheme or
discretionary trust is to be assessed for land
tax on land subject to the scheme or trust that
is used or occupied as the principal place of
residence of the nominated PPR beneficiary
25
as if the land were the only land owned by
the trustee.
Note: The land tax is to be assessed in accordance
with clause 7, 8 or 9 of the Second Schedule
30 (as the case may be).
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52H. Trustee's right of reimbursement
A trustee of a trust who pays any land tax
assessed on land subject to the trust is
entitled to recoup the amount of the tax from
any trust property that is subject to the trust
5
or any like trust.
52I. All trustees to notify Commissioner by
31 December 2005
(1) A person who holds land in Victoria on trust
on the relevant day must lodge a written
10
notice with the Commissioner on or before
31 December 2005.
(2) The notice must be in the form, and contain
the information, determined by the
Commissioner.
15
(3) In this section--
"relevant day" means the day on which the
Duties and Land Tax Acts
(Amendment) Act 2005 receives the
Royal Assent.
20
52J. Ongoing requirements for trustees to
notify Commissioner
(1) A person who becomes trustee of land in
Victoria, including a person who is already a
trustee of land and acquires further land as
25
trustee, must lodge a written notice with the
Commissioner within one month after
becoming trustee.
(2) A trustee who disposes of any land that is
subject to the trust must lodge a written
30
notice with the Commissioner within one
month after disposing of the land.
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(3) If--
(a) a person is trustee of land in Victoria;
and
(b) anything happens that results in the
trust to which the land is subject
5
becoming a different category of
trust--
the person must lodge a written notice with
the Commissioner within one month after the
thing happens.
10
Example
If a trust deed is varied so that a discretionary trust
becomes an excluded trust, the trustee must notify the
Commissioner within one month. Under sub-
15 section (6) the Commissioner could, for example,
require the trustee to include information about the
variation of the trust deed (including a copy of the
deed and variation) and any other information
necessary to prove that the trust has become an
20 excluded trust.
(4) A trustee of a fixed trust in respect of which
a notice is in force under section 52 must
lodge a written notice with the
Commissioner within one month after any
change to the beneficial interests in land
25
subject to the trust.
(5) A trustee of a unit trust scheme in respect of
which a notice is in force under section 52A
must lodge a written notice with the
Commissioner within one month after any
30
change to the unitholdings in the scheme.
(6) A notice under this section must be in the
form, contain the information and be
accompanied by any documents or other
evidence determined by the Commissioner.
35
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(7) A notice under this section is in addition to
any notice that the person is required to give
under section 15(2).
(8) In this section--
"category of trust" means--
5
(a) a fixed trust;
(b) a unit trust scheme;
(c) a discretionary trust;
(d) an excluded trust.'.
21. Land tax rates for trusts
10
In the Second Schedule to the Land Tax Act
1958, after clause 9 insert--
"10. Land tax for trusts for 2006
If the total unimproved value of land held by an
15 owner subject to a trust as assessed under this Act for
2006 is not less than the amount shown in column 1
of an item in Table J and, if an amount is shown in
column 2 of that item, less than the amount shown in
column 2 of that item, the duty of land tax payable on
20 the land is the amount determined in accordance with
column 3 of that item.
TABLE J
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375 cents for each $1
of the value that exceeds
$20 000
3. 200 000 540 000 $750 and 0575 cents for each
$1 of the value that exceeds
$200 000
4. 540 000 900 000 $2705 and 0875 cents for each
$1 of the value that exceeds
$540 000
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Item Column 1 Column 2 Column 3
$ $
5. 900 000 1 190 000 $5855 and 1375 cents for each
$1 of the value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875 cents for each
$1 of the value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $17 905 and 1706 cents for
each $1 of the value that
exceeds $1 620 000
8. 2 700 000 $36 330 and 35 cents for each
$1 of the value that exceeds
$2 700 000
11. Land tax for trusts for 2007
If the total unimproved value of land held by an
owner subject to a trust as assessed under this Act for
2007 is not less than the amount shown in column 1
5 of an item in Table K and, if an amount is shown in
column 2 of that item, less than the amount shown in
column 2 of that item, the duty of land tax payable on
the land is the amount determined in accordance with
column 3 of that item.
TABLE K
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375 cents for each $1
of the value that exceeds
$20 000
3. 200 000 540 000 $750 and 0575 cents for each
$1 of the value that exceeds
$200 000
4. 540 000 900 000 $2705 and 0875 cents for each
$1 of the value that exceeds
$540 000
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Item Column 1 Column 2 Column 3
$ $
5. 900 000 1 190 000 $5855 and 1375 cents for each
$1 of the value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875 cents for each
$1 of the value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $17 905 and 1706 cents for
each $1 of the value that
exceeds $1 620 000
8. 2 700 000 $36 330 and 325 cents for each
$1 of the value that exceeds
$2 700 000
12. Land tax for trusts for 2008 and subsequent years
If the total unimproved value of land held by an
owner subject to a trust as assessed under this Act for
2008 or a subsequent year is not less than the amount
5 shown in column 1 of an item in Table L and, if an
amount is shown in column 2 of that item, less than
the amount shown in column 2 of that item, the duty
of land tax payable on the land is the amount
determined in accordance with column 3 of that item.
TABLE L
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375 cents for each $1
of the value that exceeds
$20 000
3. 200 000 540 000 $750 and 0575 cents for each
$1 of the value that exceeds
$200 000
4. 540 000 900 000 $2705 and 0875 cents for each
$1 of the value that exceeds
$540 000
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Item Column 1 Column 2 Column 3
$ $
5. 900 000 1 190 000 $5855 and 1375 cents for each
$1 of the value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875 cents for each
$1 of the value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $17 905 and 1706 cents for
each $1 of the value that
exceeds $1 620 000
8. 2 700 000 $36 330 and 3 cents for each $1
of the value that exceeds
$2 700 000".
__________________
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PART 4--LAND TAX ACT 2005
22. Definitions
(1) in section 3(1) of the Land Tax Act 2005--
(a) insert the following definitions--
' "beneficiary" of a discretionary trust,
5
means a person, or a member of a class
of persons, in whom, by the terms of
the trust, the whole or any part of the
trust property may be vested--
(a) in the event of the exercise of a
10
power or discretion in favour of
the person (whether or not that
power is presently exercisable); or
(b) in the event that a discretion
conferred under the trust is not
15
exercised;
"child maintenance land" means land held
on trust that was transferred to the
trustee for the benefit of a beneficiary
as the result of a family breakdown
20
within the meaning of section 102AGA
of the Income Tax Assessment Act
1936 of the Commonwealth;
"Commonwealth Superannuation Act"
means the Superannuation Industry
25
(Supervision) Act 1993 of the
Commonwealth;
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"concessional trust" means--
(a) a trust of which each beneficiary
is--
(i) a person in respect of whom
a guardianship order or an
5
administration order is in
force under the
Guardianship and
Administration Act 1986;
or
10
(ii) a person with a disability
within the meaning of the
Disability Services Act
1991; or
(b) a trust created under an order of
15
the Supreme Court for the benefit
of a person under disability;
"discretionary trust" means a trust under
which the vesting of the whole or any
part of the trust property--
20
(a) is required to be determined by a
person either in respect of the
identity of the beneficiaries or the
quantum of interest to be taken, or
both; or
25
(b) will occur in the event that a
discretion conferred under the
trust is not exercised--
but does not include an excluded trust,
a fixed trust or a trust to which a unit
30
trust scheme relates;
"excluded trust" means--
(a) a charitable trust;
(b) a concessional trust;
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(c) a public unit trust scheme;
(d) a wholesale unit trust scheme;
(e) a trust the sole beneficiary or
beneficiaries of which is or are--
(i) a club referred to in
5
section 73; or
(ii) the members of such a club;
(f) a trust established by a will, but
only during the period ending on
the later of--
10
(i) the 3rd anniversary of the
testator's death or the further
period approved by the
Commissioner under sub-
section (3); or
15
(ii) if, at the testator's death, all
the potential beneficiaries are
minors--the 18th birthday of
the first beneficiary to
turn 18;
20
(g) a trust, for any tax year in relation
to which it is a superannuation
trust;
"fixed trust" means a trust that is not an
excluded trust, a discretionary trust or a
25
trust to which a unit trust scheme
relates;
"listed trust" has the same meaning as in
the Duties Act 2000;
"nominated beneficiary" of a discretionary
30
trust, means a person nominated under
section 46F;
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"nominated PPR beneficiary" means a
person nominated under section 46H;
"pre-2006 land", in relation to a trust,
means land that was subject to that trust
at midnight on 31 December 2005;
5
"post-2006 land", in relation to a trust,
means land that became subject to that
trust on or after 1 January 2006;
"public unit trust scheme" means--
(a) a listed trust; or
10
(b) a widely held trust; or
(c) a registered imminent public unit
trust scheme or registered declared
public unit trust scheme (within
the meaning of the Duties Act
15
2000);
"superannuation trust" means, in relation
to a tax year--
(a) a trust established on or before
30 June in the year preceding the
20
tax year that, in relation to the
year of income ending in that
year, is--
(i) a complying superannuation
fund (within the meaning of
25
section 42 or 42A of the
Commonwealth
Superannuation Act); or
(ii) a complying approved
deposit fund (within the
30
meaning of section 43 of the
Commonwealth
Superannuation Act); or
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(iii) a pooled superannuation trust
(within the meaning of
section 44 of the
Commonwealth
Superannuation Act); or
5
(b) a trust established after 30 June in
the year preceding the tax year
that, as at midnight on
31 December in that year, is--
(i) a regulated superannuation
10
fund (within the meaning of
the Commonwealth
Superannuation Act) or is
taken to be a regulated
superannuation fund under
15
that Act; or
(ii) an approved deposit fund
(within the meaning of the
Commonwealth
Superannuation Act); or
20
(iii) a pooled superannuation trust
(within the meaning of the
Commonwealth
Superannuation Act);
"trust" does not include an implied or a
25
constructive trust;
"unit" in a unit trust scheme, means--
(a) a right or interest (whether
described as a unit or a sub-unit or
otherwise) of a beneficiary under
30
the scheme; or
(b) a right to any such right or
interest--
that entitles the beneficiary to
participate proportionately with other
35
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unitholders in a distribution of the
property of the trust on its vesting;
"unit trust scheme" means an arrangement
made for the purpose, or having the
effect, of providing facilities for
5
participation by a person, as a
beneficiary under a trust, in any profit
or income arising from the acquisition,
holding, management or disposal of
property under the trust, but does not
10
include an excluded trust;
"wholesale unit trust scheme" means a unit
trust scheme that is registered under
Division 7 of Part 2 of Chapter 3 of the
Duties Act 2000 as a wholesale unit
15
trust scheme, an imminent wholesale
unit trust scheme or a declared
wholesale unit trust scheme;
"widely held trust" has the same meaning
as that term would have in the Duties
20
Act 2000 if a reference in paragraph (b)
of the definition of "widely held trust"
in section 3(1) of that Act to
"300 registered unitholders" were a
reference to "50 registered
25
unitholders";';
(b) in the definition of "trustee" omit "express or
implied".
(2) After section 3(2) of the Land Tax Act 2005
insert--
30
"(3) For the purposes of paragraph (f)(i) of the
definition of "excluded trust" in sub-
section (1), the Commissioner may approve a
further period in any particular case.".
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23. New section 18 substituted
For section 18 of the Land Tax Act 2005
substitute--
"18. Holders of beneficial interests
The holders of beneficial interests in certain
5
trusts are deemed to be the owners of land by
Division 2A of Part 3.".
24. Rate of land tax
At the foot of section 35(1) of the Land Tax Act
2005 insert--
10
"Note: Schedule 1 sets out 3 different rates of land tax.
Part 1 sets out the general rates of land tax, Part 2
sets out the rate of land tax on transmission
easements and Part 3 sets out the land tax surcharge
15 rates for trusts--see also Division 2A of this Part.".
25. Assessment and liability of joint owners
After section 38(5) of the Land Tax Act 2005
insert--
"(6) If a joint owner of land is a trustee of a trust
to which the land is subject, no regard is to
20
be had to the existence of the trust in relation
to the joint assessment of the joint owners of
the land as referred to in sub-section (2), but
regard is to be had to the existence of the
trust in relation to the separate assessment of
25
the joint owners as referred to in sub-
section (3).".
26. Assessment of trustees
Section 44 of the Land Tax Act 2005 is
repealed.
30
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27. New Division 2A inserted in Part 3
After Division 2 of Part 3 of the Land Tax Act
2005 insert--
'Division 2A--Land Held on Trust
46A. General land tax surcharge for trusts
5
(1) A person who is the owner of land as trustee
of a trust is liable for land tax on the land at
the applicable rate set out in Part 3 of
Schedule 1.
(2) The trustee is to be assessed for land tax on
10
the whole of the land subject to the trust as if
the land were the only land owned by the
trustee.
(3) This section does not apply to--
(a) land subject to a unit trust scheme if an
15
appointment of a nominated PPR
beneficiary for the scheme is in force
and the land is used and occupied as the
principal place of residence of the
nominated PPR beneficiary; or
20
(b) land subject to a discretionary trust if--
(i) an appointment of a nominated
beneficiary for the trust is in force;
or
(ii) an appointment of a nominated
25
PPR beneficiary for the trust is in
force and the land is used and
occupied as the principal place of
residence of the nominated PPR
beneficiary; or
30
(c) land subject to an excluded trust.
(4) This section is subject to sections 46B
and 46C.
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(5) A trustee of child maintenance land who
would be liable to land tax in accordance
with sub-section (1) but for this sub-section
is liable for land tax at the applicable rate set
out in Part 1 of Schedule 1, and is to be
5
assessed for that tax as if the child
maintenance land were the only land owned
by the trustee.
46B. Land tax for fixed trust if beneficial
interests notified to Commissioner
10
(1) A trustee of a fixed trust to which land is
subject may lodge with the Commissioner a
written notice of the beneficial interests in
the land.
(2) A notice must--
15
(a) be in the form, and contain the
information, determined by the
Commissioner; and
(b) be lodged with the Commissioner on or
before--
20
(i) if any of the land subject to the
trust is pre-2006 land--the later of
30 June 2006 or 3 months after the
day on which a liability first arises
for land tax on the land; or
25
(ii) if the only land subject to the trust
is post-2006 land--in the year in
which the land first became
subject to the trust.
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(3) A notice takes effect--
(a) for the 2006 tax year if it is lodged on
or before 30 June 2006 in respect of
pre-2006 land; or
(b) in any other case, for the tax year after
5
the year in which the notice is lodged--
and remains in force until it is withdrawn by
the trustee.
(4) If a notice is in force under this section for a
fixed trust--
10
(a) a beneficiary of the trust is deemed to
be the owner (but not to the exclusion
of the trustee) of land subject to the
trust that bears the same proportion to
the whole of the land subject to the trust
15
as the beneficiary's beneficial interest in
land subject to the trust bears to the
total beneficial interests in land subject
to the trust, and is to be assessed for
land tax on that land accordingly,
20
together with any other taxable land
owned by the beneficiary, at the
applicable rate set out in Part 1 of
Schedule 1; and
(b) the trustee of the trust is to be assessed
25
for land tax on the whole of the land
subject to the trust at the applicable rate
set out in Part 1 of Schedule 1, as if the
land were the only land owned by the
trustee.
30
(5) There is to be deducted from the land tax
payable by a beneficiary under sub-
section (4)(a) an amount (if any) necessary to
avoid double taxation, being the lesser of--
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(a) the amount determined by the formula:
A×B
where--
A is the proportion of the
beneficiary's beneficial interest in
5
land subject to the trust to the total
beneficial interests in land subject
to the trust;
B is the total amount of tax assessed
on the trustee under sub-section
10
(4)(b); and
(b) the amount determined by the formula:
C
×E
D
where--
C is the taxable value of the land of
15
which the beneficiary is deemed
by sub-section (4)(a) to be the
owner;
D is the total taxable value of all
taxable land owned by the
20
beneficiary;
E is the amount of tax assessed on
the beneficiary under sub-
section (4)(a).
(6) For the purposes of this section, the trustee's
25
right of indemnity from the trust property is
taken not to be a beneficial interest in the
land subject to the trust.
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(7) Sub-section (4)(a) does not apply to a
beneficiary who holds a beneficial interest as
trustee of another trust.
Note: Section 46D(1)(a) deems such a person to be
5 the owner of land.
46C. Land tax for unit trust scheme if
unitholdings notified to Commissioner
(1) A trustee of a unit trust scheme to which land
is subject may lodge with the Commissioner
a written notice of the unitholdings in the
10
scheme.
(2) A notice must--
(a) be in the form, and contain the
information, determined by the
Commissioner; and
15
(b) be lodged with the Commissioner on or
before--
(i) if any of the land subject to the
scheme is pre-2006 land--the
later of 30 June 2006 or 3 months
20
after the day on which a liability
first arises for land tax on the
land; or
(ii) if the only land subject to the
scheme is post-2006 land--in the
25
year in which the land first
became subject to the scheme.
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(3) A notice takes effect--
(a) for the 2006 tax year if it is lodged on
or before 30 June 2006 in respect of
pre-2006 land; or
(b) in any other case, for the tax year after
5
the year in which the notice is lodged--
and remains in force until it is withdrawn by
the trustee.
(4) If a notice is in force under this section for a
unit trust scheme--
10
(a) a unitholder in the scheme is deemed,
for the purposes of this Act other than
Division 1 of Part 4, to be the owner
(but not to the exclusion of the trustee)
of land subject to the scheme that bears
15
the same proportion to the whole of the
land subject to the scheme as the
unitholder's unitholding in the scheme
bears to the total unitholdings in the
scheme, and is to be assessed for land
20
tax on that land accordingly, together
with any other taxable land owned by
the unitholder, at the applicable rate set
out in Part 1 of Schedule 1; and
(b) the trustee of the scheme is to be
25
assessed for land tax on the whole of
the land subject to the scheme at the
applicable rate set out in Part 1 of
Schedule 1, as if the land were the only
land owned by the trustee.
30
(5) There is to be deducted from the land tax
payable by a unitholder under sub-
section (4)(a) an amount (if any) necessary to
avoid double taxation, being the lesser of--
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(a) the amount determined by the formula:
A×B
where--
A is the proportion of the
unitholder's unitholding in the
5
scheme to the total unitholdings in
the scheme;
B is the total amount of tax assessed
on the trustee under sub-section
(4)(b); and
10
(b) the amount determined by the formula:
C
×E
D
where--
C is the taxable value of the land of
which the unitholder is deemed by
15
sub-section (4)(a) to be the owner;
D is the total taxable value of all
taxable land owned by the
unitholder;
E is the amount of tax assessed on
20
the unitholder under sub-
section (4)(a).
(6) Sub-section (4)(a) does not apply to a
unitholder who holds units as trustee of
another trust.
25
Note: Section 46D(1)(b) deems such a person to be
the owner of land.
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46D. Land tax for beneficiary/trustees
(1) For the purposes of this Act--
(a) a person who holds a beneficial interest
in land subject to a fixed trust in respect
of which a notice is in force under
5
section 46B ("the first trust") as
trustee of another trust ("the second
trust") is deemed to be the owner of
land subject to the first trust that bears
the same proportion to the whole of the
10
land subject to the first trust as the
person's beneficial interest in the land
subject to the first trust bears to the
total beneficial interests in land subject
to the first trust;
15
(b) a person who holds units in a unit trust
scheme in respect of which a notice is
in force under section 46C ("the first
scheme") as trustee of another trust
("the second trust") is deemed, for the
20
purposes of this Act other than Division
1 of Part 4, to be the owner of land
subject to the first scheme that bears the
same proportion to the whole of the
land subject to the first scheme as the
25
person's unitholding in the first scheme
bears to the total unitholdings in the
first scheme.
(2) For the purposes of this section, a person
referred to in sub-section (1) is called a
30
"beneficiary/trustee".
(3) There is to be deducted from any land tax
payable by a beneficiary/trustee on land that
is subject to the second trust an amount (if
any) necessary to avoid double taxation,
35
being the lesser of--
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(a) the amount determined by the formula:
A×B
where--
A is--
(a) the proportion of the
5
beneficiary/trustee's
beneficial interest in land
subject to the first trust to the
total beneficial interests in
land subject to the first trust;
10
or
(b) the proportion of the
beneficiary/trustee's
unitholding in the first
scheme to the total
15
unitholdings in the first
scheme;
B is the total amount of tax assessed
on the trustee of the first trust or
the first scheme on the whole of
20
the land subject to the first trust or
first scheme; and
(b) the amount determined by the formula:
C
×E
D
where--
25
C is the taxable value of the land of
which the beneficiary/trustee is
deemed by sub-section (1) to be
the owner;
D is the total taxable value of all
30
taxable land owned by the
beneficiary/trustee that is subject
to the second trust;
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E is the amount of tax assessed
under this Act on the
beneficiary/trustee in respect of all
taxable land owned by the
beneficiary/trustee that is subject
5
to the second trust.
46E. Land tax for excluded trusts
A trustee of an excluded trust is to be
assessed for land tax on the whole of the land
subject to the trust as if the land were the
10
only land owned by the trustee.
Note: The rate of land tax for this assessment is the
applicable rate set out in Part 1 of Schedule 1.
46F. Nomination of beneficiary of pre-2006
discretionary trust for land tax purposes
15
(1) This section applies to a discretionary trust if
the trust property includes any pre-2006
land.
(2) The trustee of the trust may nominate a
person to be the nominated beneficiary of the
20
trust for the purposes of this Act.
(3) The person nominated must be--
(a) a natural person who--
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on
25
31 December 2005; and
(iii) signifies in writing his or her
acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the
trust are under the age of 18 years on
30
31 December 2005.
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(4) A nomination under sub-section (2) must--
(a) be in the form, and contain the
information, determined by the
Commissioner; and
(b) be lodged with the Commissioner on or
5
before the later of--
(i) 30 June 2006; or
(ii) 3 months after the day on which a
liability first arises for land tax on
land subject to the trust.
10
(5) A nomination lodged in accordance with
sub-section (4)--
(a) takes effect--
(i) for the 2006 tax year if made on or
before 30 June 2006; or
15
(ii) in any other case, for the tax year
after the year in which the
nomination is lodged; and
(b) remains in force until--
(i) revoked by the nominated
20
beneficiary in writing given to the
Commissioner; or
(ii) the nominated beneficiary dies.
(6) If the nominated beneficiary revokes the
nomination, the trustee of the trust may
25
nominate as the nominated beneficiary--
(a) a natural person who--
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on
the date of the nomination; and
30
(iii) signifies in writing his or her
acceptance of the nomination; or
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(b) the trustee, if all beneficiaries of the
trust are under the age of 18 years on
the date of the nomination--
if the Commissioner considers that the
nomination of a beneficiary under this sub-
5
section is just and reasonable in the
particular case.
(7) If the nominated beneficiary dies, the trustee
of the trust may nominate as the nominated
beneficiary--
10
(a) a natural person who--
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on
the date of the nomination; and
(iii) signifies in writing his or her
15
acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the
trust are under the age of 18 years on
the date of the nomination.
(8) A nomination lodged under sub-section (6)
20
or (7)--
(a) must be in the form, and contain the
information, determined by the
Commissioner; and
(b) takes effect for the tax year after the
25
year in which the nomination is lodged,
unless the Commissioner determines
that it should take effect for the current
tax year, being satisfied that it is just
and reasonable in the particular case to
30
so determine; and
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(c) remains in force until--
(i) revoked by the nominated
beneficiary in writing given to the
Commissioner; or
(ii) the nominated beneficiary dies.
5
(9) A nomination may be lodged under sub-
section (6) or (7) (as the case requires) on
more than one occasion.
46G. Land tax for discretionary trust with
nominated beneficiary
10
(1) This section applies if the nomination of a
nominated beneficiary for a discretionary
trust is in force under section 46F.
(2) The nominated beneficiary is deemed, for the
purposes of this Act (other than Division 1 of
15
Part 4) but for no other purpose, to be the
owner of the pre-2006 land subject to the
trust (but not to the exclusion of the trustee)
and is to be assessed for land tax on that land
accordingly, together with any other taxable
20
land owned by the nominated beneficiary.
Note: The rate of land tax for this assessment is the
applicable rate set out in Part 1 of Schedule 1.
(3) The trustee of the trust is to be assessed for
land tax on the whole of the land subject to
25
the trust as if the land were the only land
owned by the trustee--
(a) in respect of any pre-2006 land--at the
applicable rate set out in Part 1 of
Schedule 1; and
30
(b) in respect of any post-2006 land--at the
applicable rate set out in Part 3 of
Schedule 1.
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(4) For the purposes of sub-section (3), if the
trust property includes both pre-2006 land
and post-2006 land, the trustee is to be
assessed in accordance with the following
formula--
5
A B
L = (R 1 × T ) × + (R 2 × T ) ×
T T
where--
L is the land tax assessed for the trustee;
R1 is the applicable rate of land tax set out
in Part 1 of Schedule 1;
10
R2 is the applicable rate of land tax set out
in Part 3 of Schedule 1;
T is the total taxable value of all taxable
land subject to the trust;
A is the total taxable value of the
15
pre-2006 land subject to the trust;
B is the total taxable value of the
post-2006 land subject to the trust.
(5) There is to be deducted from any land tax
payable by the nominated beneficiary under
20
sub-section (2) any land tax payable by the
trustee under sub-section (3) in respect of
pre-2006 land.
(6) Sub-section (2) does not apply if the
nominated beneficiary is the trustee.
25
46H. Nomination of PPR beneficiary of unit
trust scheme or discretionary trust for
land tax purposes
(1) The trustee of a unit trust scheme or
discretionary trust may nominate a person to
30
be the nominated PPR beneficiary of the
scheme or trust for the purposes of this Act.
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(2) The person nominated must be a natural
person who is a unitholder in the scheme or a
beneficiary of the trust.
(3) A nomination under sub-section (1) must be
lodged with the Commissioner in the form,
5
and containing the information, determined
by the Commissioner.
(4) A nomination lodged in accordance with
sub-section (3)--
(a) takes effect--
10
(i) for the 2006 tax year if it is lodged
on or before 30 June 2006; or
(ii) in any other case, for the tax year
after the year in which the
nomination is lodged; and
15
(b) remains in force until the nominated
PPR beneficiary dies.
(5) If the nominated PPR beneficiary dies, the
trustee of the scheme or trust may nominate
a natural person who is a unitholder in the
20
scheme or a beneficiary of the trust as the
nominated PPR beneficiary.
(6) A nomination lodged under sub-
section (5)--
(a) must be in the form, and contain the
25
information, determined by the
Commissioner; and
(b) takes effect for the tax year after the
year in which the nomination is lodged,
unless the Commissioner determines
30
that it should take effect for the current
tax year, being satisfied that it is just
and reasonable in the particular case to
so determine; and
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(c) remains in force until the nominated
PPR beneficiary dies.
(7) A nomination may be lodged under sub-
section (5) on more than one occasion.
(8) This section does not apply to a unit trust
5
scheme if a notice is in force for the scheme
under section 46C.
46I. Land tax for PPR land if nominated PPR
beneficiary
(1) This section applies if the nomination of a
10
nominated PPR beneficiary for a unit trust
scheme or discretionary trust is in force
under section 46H.
(2) The trustee of the unit trust scheme or
discretionary trust is to be assessed for land
15
tax on land subject to the scheme or trust that
is used or occupied as the principal place of
residence of the nominated PPR beneficiary
as if the land were the only land owned by
the trustee.
20
Note: The rate of land tax for this assessment is the
applicable rate set out in Part 1 of Schedule 1.
46J. Trustee's right of reimbursement
A trustee of a trust who pays any land tax
assessed on land subject to the trust is
25
entitled to recoup the amount of the tax from
any trust property that is subject to the trust
or any like trust.
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46K. Requirements for trustees to notify
Commissioner
(1) A person who becomes trustee of land in
Victoria, including a person who is already a
trustee of land and acquires further land as
5
trustee, must lodge a written notice with the
Commissioner within one month after
becoming trustee.
(2) A trustee who disposes of any land that is
subject to the trust must lodge a written
10
notice with the Commissioner within one
month after disposing of the land.
(3) If--
(a) a person is trustee of land in Victoria;
and
15
(b) anything happens that results in the
trust to which the land is subject
becoming a different category of
trust--
the person must lodge a written notice with
20
the Commissioner within one month after the
thing happens.
Example
If a trust deed is varied so that a discretionary trust
25 becomes an excluded trust, the trustee must notify the
Commissioner within one month. Under sub-
section (6) the Commissioner could, for example,
require the trustee to include information about the
variation of the trust deed (including a copy of the
30 deed and variation) and any other information
necessary to prove that the trust has become an
excluded trust.
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(4) A trustee of a fixed trust in respect of which
a notice is in force under section 46B must
lodge a written notice with the
Commissioner within one month after any
change to the beneficial interests in land
5
subject to the trust.
(5) A trustee of a unit trust scheme in respect of
which a notice is in force under section 46C
must lodge a written notice with the
Commissioner within one month after any
10
change to the unitholdings in the scheme.
(6) A notice under this section must be in the
form, contain the information and be
accompanied by any documents or other
evidence determined by the Commissioner.
15
(7) A notice under this section is in addition to
any notice that the person is required to give
under section 103.
(8) In this section--
"category of trust" means--
20
(a) a fixed trust;
(b) a unit trust scheme;
(c) a discretionary trust;
(d) an excluded trust.'.
28. Consequential amendments
25
(1) In section 52 of the Land Tax Act 2005--
(a) in sub-section (1), the definitions of
"discretionary trust" and "unit trust scheme"
are repealed;
(b) sub-section (2) is repealed.
30
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(2) For section 67(6) of the Land Tax Act 2005
substitute--
"(6) For the purposes of this section--
(a) a reference to the issued share capital of
a company does not include a reference
5
to any part of it that carries no right to
participate beyond a specified amount
in a distribution of either profits or
capital;
(b) a reference to an owner of land does not
10
include a reference to a beneficiary of a
trust or a unitholder in a unit trust
scheme to which the land is subject.".
29. Public statutory authority and municipal and public
land exemptions
15
(1) For section 80(3) of the Land Tax Act 2005
substitute--
"(3) Sub-section (2)(a) does not apply to land or
part of land--
(a) that is leased or occupied under or in
20
accordance with an arrangement made
with a municipal council for the
purpose of promoting or assisting a
decentralised industry; or
(b) that is used or occupied by persons
25
carrying on business in movable stalls
in a market during some but not all of
the ordinary business hours in a week.".
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(2) For section 81(3) of the Land Tax Act 2005
substitute--
"(3) Sub-section (2) does not apply to land or part
of land--
(a) that is leased or occupied under or in
5
accordance with an arrangement made
with a municipal council for the
purpose of promoting or assisting a
decentralised industry; or
(b) that is used or occupied by persons
10
carrying on business in movable stalls
in a market during some but not all of
the ordinary business hours in a week;
or
(c) that is used exclusively for or in
15
connection with a business the primary
purpose of which is to provide outdoor
sporting or recreational facilities.".
30. Land tax surcharge rates for trusts
In Schedule 1 to the Land Tax Act 2005, after
20
Part 2 insert--
"PART 3--SURCHARGE RATES OF LAND TAX FOR
TRUSTS
3.1 Land tax for trusts for 2006
25 The rate of land tax for 2006 for land held by an owner
subject to a trust is set out in Table 3.1.
TABLE 3.1
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375% of the taxable
value that exceeds $20 000
3. 200 000 540 000 $750 and 0575% of the taxable
value that exceeds $200 000
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Item Column 1 Column 2 Column 3
$ $
4. 540 000 900 000 $2705 and 0875% of the
taxable value that exceeds
$540 000
5. 900 000 1 190 000 $5855 and 1375% of the
taxable value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875% of the
taxable value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $17 905 and 1706% of the
taxable value that exceeds
$1 620 000
8. 2 700 000 $36 330 and 35% of the taxable
value that exceeds $2 700 000
3.2 Land tax for trusts for 2007
The rate of land tax for 2007 for land held by an owner
subject to a trust is set out in Table 3.2.
TABLE 3.2
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375% of the taxable
value that exceeds $20 000
3. 200 000 540 000 $750 and 0575% of the taxable
value that exceeds $200 000
4. 540 000 900 000 $2705 and 0875% of the
taxable value that exceeds
$540 000
5. 900 000 1 190 000 $5855 and 1375% of the
taxable value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875% of the
taxable value that exceeds
$1 190 000
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Item Column 1 Column 2 Column 3
$ $
7. 1 620 000 2 700 000 $17 905 and 1706% of the
taxable value that exceeds
$1 620 000
8. 2 700 000 $36 330 and 325% of the
taxable value that exceeds
$2 700 000
3.3 Land tax for trusts for 2008 and subsequent years
The rate of land tax for 2008 and each subsequent year for
land held by an owner subject to a trust is set out in
Table 3.3.
TABLE 3.3
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375% of the taxable
value that exceeds $20 000
3. 200 000 540 000 $750 and 0575% of the taxable
value that exceeds $200 000
4. 540 000 900 000 $2705 and 0875% of the
taxable value that exceeds
$540 000
5. 900 000 1 190 000 $5855 and 1375% of the
taxable value that exceeds
$900 000
6. 1 190 000 1 620 000 $9843 and 1875% of the
taxable value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $17 905 and 1706% of the
taxable value that exceeds
$1 620 000
8. 2 700 000 $36 330 and 3% of the taxable
value that exceeds $2 700 000".
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31. Transitional provisions
In Schedule 3 to the Land Tax Act 2005, after
clause 7 insert--
"8. Trusts
5 (1) A notice given under section 52 of the old Act that
was in force immediately before the commencement
day continues in force on and after that day as if it
were a notice given under section 46B of this Act.
(2) A notice given under section 52A of the old Act that
10 was in force immediately before the commencement
day continues in force on and after that day as if it
were a notice given under section 46C of this Act.
(3) A nomination of a beneficiary under section 52D of
the old Act that was in force immediately before the
15 commencement day continues in force on and after
that day as if it were a nomination of a beneficiary
under section 46F of this Act.
(4) A nomination of a PPR beneficiary under section 52F
of the old Act that was in force immediately before
20 the commencement day continues in force on and
after that day as if it were a nomination of a PPR
beneficiary under section 46H of this Act.
9. Amnesty for failing to lodge certain documents
(1) Section 59 of the Taxation Administration Act 1997
25 does not apply to a failure or refusal to lodge a notice
with the Commissioner under section 46K.
(2) This clause ceases to have effect on 31 December
2007.
10. Continuation of Orders
30 (1) An Order under section 9(1AD) of the old Act that
was in force immediately before the commencement
day continues in force on and after that day as if it
were an order made under section 80(4) of this Act.
(2) An Order under section 9(1B) of the old Act that was
35 in force immediately before the commencement day
continues in force on and after that day as if it were an
order made under section 64(2) of this Act.
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(3) An Order under section 13P(1) of the old Act that was
in force immediately before the commencement day
continues in force on and after that day as if it were an
order made under section 87(1) of this Act.".
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Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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