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PARLIAMENT OF VICTORIA
Land Tax Act 2005
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purposes 1
2. Commencement 2
3. Definitions 2
4. Transmission easement holders 7
5. Taxation Administration Act 1997 8
6. Act binds the Crown 9
PART 2--IMPOSITION OF LAND TAX 10
Division 1--Imposition of Land Tax 10
7. General imposition of land tax 10
8. Who is liable for land tax? 10
9. When must land tax be paid? 10
Division 2--Owners of Land 10
10. Who is the owner of land? 10
11. Life tenants 11
12. Home units 11
13. Person in possession of land deemed owner despite disposition
of it 12
14. Purchaser of land on credit or deferred payment 12
15. Purchaser of land under contract of sale 12
16. Vendors of land 13
17. Mortgagees in possession 14
18. Equitable owners 14
Division 3--What is the Taxable Value of Land? 14
19. Taxable value of land 14
20. Prescribed indexation factors 15
21. Use of valuations 16
22. Taxable value of parts of land not separately valued 16
23. Taxable value of home units not valued separately 17
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Division 4--Land Tax on Transmission Easements 17
24. Imposition of land tax on transmission easements 17
25. Who is liable for land tax on transmission easements? 17
26. When must land tax be paid? 18
27. What is the taxable value of a transmission easement? 18
28. Agreements relating to the payment of tax 19
Division 5--Special Land Tax 20
29. Imposition of special land tax 20
30. What land is subject to special land tax? 20
31. Who is liable for special land tax? 21
32. When does a liability for special land tax arise? 21
33. When must special land tax be paid? 22
34. Deferral of special land tax in certain circumstances 22
PART 3--ASSESSMENT OF LAND TAX 23
Division 1--Rate of Land Tax 23
35. What is the rate of land tax? 23
Division 2--How is Land Tax Assessed? 23
36. Land tax assessed on aggregated basis 23
37. Certain taxable land assessed separately 24
38. Assessment of joint owners of land 24
39. Joint assessments in the case of principal place of residence
land 26
40. Assessment of joint occupiers of land 27
41. Assessment of joint transmission easement holders 28
42. Assessment of owner of land on which there are home units 30
43. Mortgagees in possession of land 30
44. Trustees 31
45. Certain long-term lessees of private land 32
46. Land tax on parts of land 32
Division 3--Grouping of Related Corporations 33
47. What are "related corporations"? 33
48. What is a "controlling interest" in a corporation? 34
49. Further provisions for determining whether corporations are
related corporations 34
50. Grouping of related corporations 36
Division 4--General 36
51. Reassessments 36
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Clause Page
PART 4--EXEMPTIONS AND CONCESSIONS 37
Division 1--Principal Place of Residence 37
52. Definitions 37
53. What is a principal place of residence? 38
54. Principal place of residence exemption 39
55. Deferral of tax on certain residential land for 6 months 40
56. Temporary absence from principal place of residence 41
57. Exemption continues on death of resident 42
58. Exemption continues if land becomes unfit for occupation 43
59. Purchase of new principal residence 44
60. Sale of old principal residence 45
61. Unoccupied land subsequently used as principal residence 46
62. Partial exemption if land used for business activities 48
63. Partial exemption or refund for trustees 50
Division 2--Primary Production Land 50
64. Definitions 50
65. Exemption of primary production land outside greater
Melbourne 52
66. Exemption of primary production land in greater Melbourne
but not in an urban zone 52
67. Exemption of primary production land in an urban zone in
greater Melbourne 52
68. Exemption of land being prepared for use for primary
production 55
69. Application for exemption under section 66, 67 or 68 56
70. Parcels of land 56
Division 3--Sporting, Recreational and Cultural Land 57
71. Land leased for sporting, recreational or cultural activities by
members of the public 57
72. Sporting, recreational or cultural land owned by certain
non-profit organisations 58
73. Concessional tax rate for club land 59
Division 4--Charities 60
74. Charitable institutions and purposes 60
Division 5--Accommodation 61
75. Rooming houses 61
76. Residential care facilities and supported residential services 62
77. Caravan parks 64
78. Retirement villages 64
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Clause Page
Division 6--Public, Government and Municipal Land 65
79. Crown land 65
80. Public statutory authorities 66
81. Municipal and public land 67
82. Application of Division 6 68
Division 7--General Exemptions 69
83. Armed services personnel 69
84. Friendly societies 70
85. Land used for agricultural shows or farm field machinery
days 70
86. Mines 71
Division 8--Exemptions from Land Tax on Transmission
Easements 72
87. Governor in Council may exempt 72
88. Dispositions of transmission easements 72
PART 5--RELIEF FROM OR POSTPONEMENT OF LAND
TAX 74
Division 1--Preliminary 74
89. Definition 74
90. Arrangements for payment of tax 74
Division 2--Relief 74
91. Taxpayer may apply for relief 74
92. Relief granted by the Commissioner 75
93. Relief granted by the Board 76
94. Reconsideration of postponed land tax 76
Division 3--Land Tax Hardship Relief Board 77
95. Establishment and procedure 77
PART 6--SECURITY, RECOVERY AND ENFORCEMENT 78
Division 1--Security for Land Tax 78
96. Land tax is a first charge on land 78
97. Registration of charge 78
Division 2--Recovery of Land Tax 79
98. Recovery from lessee, mortgagee or occupier 79
Division 3--Prohibition on Passing On Land Tax 80
99. Prohibition on passing on land tax 80
100. Prohibition on passing on land tax on transmission easements 80
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Clause Page
Division 4--Tax Avoidance Schemes 81
101. What is a tax avoidance scheme? 81
102. Anti-avoidance provision 83
PART 7--GENERAL 84
Division 1--Notices of Acquisition and Land Tax Certificates 84
103. Notice of acquisition of land 84
104. Notice of acquisition of transmission easement 84
105. Land tax certificates 85
Division 2--General 85
106. Stating case to Supreme Court 85
107. Regulations 86
PART 8--AMENDMENT OF TAXATION ADMINISTRATION
ACT 1997 87
108. Land tax comes under the Act 87
109. Refunds of land tax 87
110. Disclosure of information 87
111. Objection to valuation of Valuer-General 88
112. Objections to value of land 89
113. Review by VCAT 89
114. New section 129 substituted 90
129. Copies of and extracts from certain documents 90
115. Supreme Court--limitation of jurisdiction 90
PART 9--FURTHER AMENDMENTS, REPEALS AND
TRANSITIONAL PROVISIONS 91
116. Repeal of Land Tax Act 1958 91
117. Consequential amendments 91
118. Transitional provisions 91
__________________
SCHEDULES 92
SCHEDULE 1--Land Tax Rates 92
SCHEDULE 2--Consequential Amendments 96
SCHEDULE 3--Transitional Provisions 99
ENDNOTES 101
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551251B.I1-6/9/2005 BILL LA INTRODUCTION 6/9/2005
PARLIAMENT OF VICTORIA
A BILL
to re-enact and modernise the law relating to land tax, to repeal the
Land Tax Act 1958, to amend the Taxation Administration Act
1997 and other Acts and for other purposes.
Land Tax Act 2005
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purposes
The purposes of this Act are--
(a) to re-enact and modernise the law relating to
land tax;
5
(b) to repeal the Land Tax Act 1958;
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Land Tax Act 2005
Act No.
Part 1--Preliminary
s. 2
(c) to amend the Taxation Administration Act
1997 so that it will apply to the
administration and enforcement of land tax;
(d) to make consequential amendments to other
Acts.
5
2. Commencement
This Act comes into operation on 1 January 2006.
3. Definitions
(1) In this Act--
"applicable general valuation", in relation to a
10
tax year, means the last general valuation
returned to the municipal council before
1 January in the year immediately preceding
the tax year;
"approved" means approved by the
15
Commissioner;
"controlling interest" has the meaning given in
section 48;
"corporation" has the same meaning as in
section 9 of the Corporations Act;
20
"domestic partner" of a person means a person
to whom the person is not married, but with
whom the person is living as a couple on a
genuine domestic basis (irrespective of
gender);
25
"exempt land" means land that is declared by or
under this Act to be exempt land;
"exempt transmission easement" means a
transmission easement that is exempt from
land tax under section 87(1)(b);
30
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s. 3
"exempt transmission easement holder" means
a transmission easement holder who is
exempt from land tax on the easement under
section 87(1)(a);
"home unit" means a building or part of a
5
building that--
(a) is designed for use as a self-contained
unit for living purposes; and
(b) is situated on land owned--
(i) by 2 or more persons as tenants in
10
common, each of whom is the
registered proprietor under the
Transfer of Land Act 1958 of
one or more undivided shares in
the whole of the land and is
15
lawfully entitled, by virtue of an
agreement between the person or
the person's predecessor in title
and all other owners of undivided
shares in the land or their
20
predecessors in title, to the
exclusive right to occupy a
specified building or part of a
building on the land; or
(ii) by a body corporate in which all
25
issued shares are owned by 2 or
more persons, each of whom is
lawfully entitled, by virtue of that
share ownership, to the exclusive
right to occupy a specified
30
building or part of a building on
the land and is not required to
make any payments of a rental
nature for that right;
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s. 3
"joint owners" means persons--
(a) who own land jointly or in common,
whether as partners or otherwise; or
(b) who are deemed by this Act to be joint
owners;
5
"land" includes--
(a) all land and tenements;
(b) all interests in land;
"mortgage" means--
(a) a security by way of mortgage or
10
charge over land; or
(b) a security by way of a transfer of land
held in trust to be sold and redeemable
before the sale, except if the transfer is
for the benefit of creditors who accept
15
it in full satisfaction of debts owed to
them; or
(c) a transfer, assignment or disposition of
any estate or interest in land that is
apparently absolute but intended only
20
as a security; or
(d) an instrument that, on the deposit of
documents of title to land, authority to
control title or a pledge to provide that
control, becomes a mortgage or
25
evidences the terms of a mortgage;
"owner"--
(a) of land, has the meaning given in
section 10;
(b) of a home unit, has the meaning given
30
in section 12;
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s. 3
"parcel" of land means any land that is--
(a) contiguous or separated only by a road,
railway or other similar area across or
around which movement is reasonably
possible; and
5
(b) owned by the same person;
"principal place of residence" includes sole
place of residence;
"public sector superannuation authority"
means a public body within the meaning of
10
the Financial Management Act 1994 that is
required to submit an annual report under
Part 7 of that Act in relation to a public
sector superannuation fund;
"public statutory authority" means a public
15
statutory body constituted under an Act but
does not include a public sector
superannuation authority;
"related corporations" has the meaning given in
section 47;
20
"relative" in relation to a person means--
(a) a spouse or domestic partner of the
person;
(b) a lineal ancestor or lineal descendant of
the person or of the spouse or domestic
25
partner of the person;
(c) a brother or sister, or child of a brother
or sister, of the person or of the spouse
or domestic partner of the person;
(d) a spouse or domestic partner of a child
30
of the person;
(e) a spouse or domestic partner of a
brother or sister of the person;
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Act No.
Part 1--Preliminary
s. 3
"return date", in relation to a valuation, is the
date on which the valuation is returned to the
municipal council by the person who carried
it out;
"site value" has the same meaning as in the
5
Valuation of Land Act 1960;
"special land tax" means land tax imposed under
Division 5 of Part 2;
"spouse" of a person means a person to whom the
person is married;
10
"subsequent general valuation", in relation to a
tax year, means a general valuation returned
to the municipal council after the applicable
general valuation for that tax year but before
1 January in the tax year;
15
"supplementary valuation" means a valuation
made under section 13DF of the Valuation
of Land Act 1960 that is supplementary to
the last general valuation returned to the
municipal council before 1 January in the
20
year immediately preceding the tax year;
"taxable land" means land that is not exempt
land;
"taxable value"--
(a) of land, has the meaning given in
25
Division 3 of Part 2;
(b) of transmission easements, has the
meaning given in section 27;
"tax year" means a year for or in which land tax
is being assessed;
30
"transfer" of land includes conveyance of the
land;
"transmission company" has the same meaning
as in the Electricity Industry Act 2000;
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Act No.
Part 1--Preliminary
s. 4
"transmission easement" means an easement
held by a transmission company;
"transmission easement holder" has the
meaning given in section 4;
"trustee", except in Division 1 of Part 4, includes
5
trustee, executor, administrator, guardian,
liquidator and any person having or taking
upon themselves the possession,
administration, or control of land, income, or
other property of any description affected by
10
any express or implied trust, or having the
possession, control, or management of land
of a person under any legal or other
disability;
"Victorian Minister" means a Minister of the
15
Crown in right of Victoria;
"year" means a calendar year.
(2) For the purposes of the definition of "domestic
partner" in sub-section (1), in determining
whether persons are domestic partners of each
20
other, all the circumstances of their relationship
are to be taken into account, including any one or
more of the matters referred to in section 275(2)
of the Property Law Act 1958 as may be relevant
in a particular case.
25
4. Transmission easement holders
(1) For the purposes of this Act, a "transmission
easement holder" is a transmission company that
holds a transmission easement.
(2) A transmission company holds a transmission
30
easement if the transmission easement has been--
(a) acquired by the transmission company; or
(b) granted to, or reserved in favour of, the
transmission company; or
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Act No.
Part 1--Preliminary
s. 5
(c) created by statute in favour of, or vested by
statute in, the transmission company.
(3) If a transmission company uses an easement of a
related body corporate of that company--
(a) that easement is, for the purposes of this Act,
5
deemed to be a transmission easement; and
(b) the transmission company is, for the
purposes of this Act, deemed to be a
transmission easement holder and may be
assessed for tax as if it held the transmission
10
easement.
(4) If the Commissioner is satisfied that a
transmission company should not be liable for
land tax under Division 4 of Part 2 on an easement
referred to in sub-section (3), having regard to--
15
(a) the nature of the easement; and
(b) any other matters the Commissioner
considers relevant--
the Commissioner may treat the easement as not
being a transmission easement for the purposes of
20
this Act.
(5) In this section--
"related body corporate" has the same meaning
as in section 50 of the Corporations Act.
5. Taxation Administration Act 1997
25
This Act is to be read together with the Taxation
Administration Act 1997 which provides for the
administration and enforcement of this Act and
other taxation laws.
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Land Tax Act 2005
Act No.
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s. 6
6. Act binds the Crown
(1) This Act binds the Crown in right of Victoria and,
so far as the legislative power of the Parliament
permits, the Crown in all its other capacities.
(2) Nothing in this Act makes the Crown in any of its
5
capacities liable to be prosecuted for an offence.
__________________
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Land Tax Act 2005
Act No.
Part 2--Imposition of Land Tax
s. 7
PART 2--IMPOSITION OF LAND TAX
Division 1--Imposition of Land Tax
7. General imposition of land tax
Land tax is imposed in respect of each year on all
taxable land in Victoria.
5
Note: This Act also imposes land tax on transmission
easements (see Division 4) and special land tax
(see Division 5).
8. Who is liable for land tax?
The owner of taxable land is liable to pay land tax
10
on the land.
9. When must land tax be paid?
The day specified in a notice of assessment of
land tax must be not less than 14 days after the
day the notice is served on the taxpayer.
15
Note: Section 14 of the Taxation Administration Act
1997 provides for notices of assessment and provides
that tax is payable on or before the day specified in
the notice.
Division 2--Owners of Land
20
10. Who is the owner of land?
The following persons are owners of land for the
purposes of this Act--
(a) a person entitled to land for a freehold estate
in possession;
25
(b) a person entitled to land under a lease from
the Crown;
(c) a person entitled to land under a licence from
the Crown if the person has a right, absolute
or conditional, of acquiring the fee simple;
30
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Part 2--Imposition of Land Tax
s. 11
(d) a person who is a licensee of vested land
under Part 3A of the Victorian Plantations
Corporation Act 1993;
(e) a person deemed by this Act to be the owner
of land.
5
11. Life tenants
For the purposes of this Act, a person who holds a
life estate in possession in land is deemed to be
the owner of the land instead of the person entitled
to the fee simple in reversion or remainder.
10
12. Home units
(1) This section applies if there are 2 or more home
units on land.
(2) For the purposes of this Act, an owner of a home
unit is deemed to be the owner of land having a
15
taxable value that is the taxable value of the home
unit.
(3) In this section--
"land" means the land on which the building or
buildings of which a home unit is part is or
20
are situated;
"owner" of a home unit, means the person who is
entitled to the exclusive right to occupy the
home unit because he or she--
(a) is the owner of an undivided share in
25
the land on which the home unit is
situated; or
(b) is a shareholder in the body corporate
which owns the land on which the
home unit is situated.
30
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s. 13
13. Person in possession of land deemed owner despite
disposition of it
(1) A person who disposes of land but retains
possession of the land is deemed to be the owner
of the land (but not to the exclusion of any other
5
person) while the person retains possession.
(2) In this section--
"dispose" includes dispose by way of transfer,
settlement, declaration of trust or any other
method.
10
14. Purchaser of land on credit or deferred payment
For the purposes of this Act, each of the following
is deemed to be the owner of land--
(a) a purchaser on credit or deferred payment;
(b) an assignee or transferee of a purchaser on
15
credit or deferred payment.
15. Purchaser of land under contract of sale
(1) For the purposes of this Act, a purchaser under a
contract of sale of land is deemed to be the owner
of the land (but not to the exclusion of any other
20
person) if the purchaser has taken possession of
the land.
(2) Sub-section (1) applies whether or not the contract
of sale has been completed by the transfer of the
land.
25
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s. 16
16. Vendors of land
(1) For the purposes of this Act, the vendor of land
under a contract of sale of land is deemed to be
the owner of the land (but not to the exclusion of
any other person) until--
5
(a) the purchaser has taken possession of the
land; and
(b) subject to sub-section (3), at least 15% of the
purchase money has been paid.
(2) Sub-section (1) applies whether or not the contract
10
of sale has been completed by the transfer of the
land.
(3) The Commissioner may determine that the vendor
is deemed not to be the owner of land despite the
fact that 15% of the purchase money has not been
15
paid if the Commissioner is satisfied that--
(a) the contract of sale was made in good faith
and not for the purpose of evading the
payment of land tax; and
(b) the contract of sale is still in force.
20
(4) In determining the percentage of purchase money
that has been paid, the following amounts must be
considered to be unpaid purchase money--
(a) all money owing by the purchaser to the
vendor and secured by a mortgage over the
25
land;
(b) all money lent to the purchaser by the
vendor;
(c) all money owing by the purchaser to any
other person that is directly or indirectly
30
guaranteed by the vendor.
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s. 17
(5) If the vendor and the purchaser are both deemed
to be the owners of land under this Part, there is to
be deducted from any land tax payable on the land
by the vendor any land tax payable on the land by
the purchaser.
5
17. Mortgagees in possession
(1) A mortgagee in possession of land is deemed to be
the owner of the land for the purposes of this Act,
but not to the exclusion of the mortgagor or other
owner of the land.
10
Note: Section 43 sets out how land tax is to be assessed in
the case of mortgagees in possession.
(2) There is to be deducted from any land tax payable
on land by the mortgagee in possession any land
tax paid on the land by the mortgagor or other
15
owner.
18. Equitable owners
(1) A person who has an equitable interest in land
(the "equitable owner") is deemed to be the
owner of the land (but not to the exclusion of any
20
other person).
(2) There is to be deducted from any land tax payable
on land by the equitable owner any land tax paid
on the land by the legal owner.
Division 3--What is the Taxable Value of Land?
25
19. Taxable value of land
(1) The taxable value of land for a tax year is--
(a) if the applicable general valuation has not
been used for the purposes of assessing land
tax in a previous tax year, an amount equal
30
to the site value of the land as at the relevant
date;
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(b) if the applicable general valuation has been
used for the purposes of assessing land tax in
a previous tax year, an amount equal to the
site value of the land as at the relevant date
multiplied by the prescribed indexation
5
factor (if any) applying to the land for the tax
year.
(2) The "relevant date" for land within the
municipal district of a municipal council is--
(a) subject to paragraph (b), the date as at which
10
rateable properties within the municipal
district were valued for the purposes of the
last general valuation returned to the
municipal council before 1 January in the
year immediately preceding the tax year;
15
(b) if the land has been valued for the purposes
of a supplementary valuation after the return
date of the last general valuation referred to
in paragraph (a) but before 1 January of the
tax year, the return date of the supplementary
20
valuation.
(3) If land is not within a municipal district of a
municipal council, the "relevant date" for the
land is 31 December in the year immediately
preceding the tax year.
25
20. Prescribed indexation factors
(1) The regulations may prescribe an indexation
factor for land within an area for a tax year for the
purposes of section 19(1)(b).
(2) The prescribed indexation factor is to be a factor
30
determined by the Valuer-General that in his or
her opinion reflects half the aggregate movement
in the site value of land classified residential,
commercial or industrial within that area between
the applicable general valuation and the
35
subsequent general valuation.
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(3) In determining a factor for the purposes of sub-
section (2), the Valuer-General is to disregard the
value of land that is exempt land under Division 1
of Part 4 (principal place of residence).
(4) For the purposes of sub-section (3), the Valuer-
5
General may rely on any information provided to
him or her by the Commissioner.
21. Use of valuations
For the purposes of assessing land tax, the
Commissioner may use--
10
(a) valuations made by a rating authority within
the meaning of the Valuation of Land Act
1960; or
(b) valuations made by the Valuer-General or a
valuer nominated by the Valuer-General.
15
22. Taxable value of parts of land not separately valued
(1) This section applies if--
(a) it is necessary to determine the taxable value
of part of land ("the part") for or in a tax
year; and
20
(b) the part was not valued separately as at the
relevant date (within the meaning of
section 19) in relation to that year; and
(c) the whole land was valued separately as at
the relevant date.
25
(2) The taxable value of the part is the same
proportion of the taxable value of the whole land
as the area of the part bears to the area of the
whole land.
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s. 23
23. Taxable value of home units not valued separately
(1) This section applies if there are 2 or more home
units on land.
(2) If a home unit is not valued separately as at the
relevant date (within the meaning of section 19)
5
in relation to a tax year, the taxable value of the
home unit is determined in accordance with the
formula--
A
ŚC
B
where--
10
A is the net annual value of the home unit;
B is the net annual value of all home units on
the land;
C is the taxable value of the land.
(3) In this section--
15
"net annual value" has the same meaning as in
the Valuation of Land Act 1960.
Division 4--Land Tax on Transmission Easements
24. Imposition of land tax on transmission easements
Land tax is imposed in respect of each year on all
20
transmission easements in Victoria other than
exempt transmission easements.
25. Who is liable for land tax on transmission
easements?
The transmission easement holder is liable to pay
25
land tax on a transmission easement.
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26. When must land tax be paid?
The day specified in a notice of assessment of
land tax on transmission easements must be not
less than 14 days after the day the notice is served
on the taxpayer.
5
Note: Section 14 of the Taxation Administration Act
1997 provides for notices of assessment and provides
that tax is payable on or before the day specified in
the notice.
27. What is the taxable value of a transmission
10
easement?
(1) The "taxable value" of a transmission easement
is--
(a) in respect of the 2006 tax year--the value as
at 1 January 2004 determined in a valuation
15
made under section 5B of the Valuation of
Land Act 1960;
(b) in respect of the 2007 tax year--the value as
at 1 January 2004 determined in a valuation
made under section 5B of the Valuation of
20
Land Act 1960, multiplied by the prescribed
indexation factor (if any) applying to the
land encumbered by the transmission
easement;
(c) in respect of the 2008 tax year--the value as
25
at 1 January 2006 determined in a valuation
made under section 5B of the Valuation of
Land Act 1960;
(d) in respect of every tax year after 2008--
(i) if a valuation made under section 5B of
30
the Valuation of Land Act 1960 has
been used for the purposes of assessing
tax in the year immediately preceding
the tax year--the value as at the
relevant easement valuation date
35
determined in a valuation made under
18
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section 5B of the Valuation of Land
Act 1960, multiplied by the prescribed
indexation factor (if any) applying to
the land encumbered by the
transmission easement;
5
(ii) if a valuation made under section 5B of
the Valuation of Land Act 1960 has
not been used for the purposes of
assessing tax in the year immediately
preceding the tax year--the value as at
10
the relevant easement valuation date
determined in a valuation made under
section 5B of the Valuation of Land
Act 1960.
(2) In this section--
15
"prescribed indexation factor" means the
prescribed indexation factor referred to in
section 20;
"relevant easement valuation date", in respect
of every tax year after 2008, means the date
20
as at which a valuation of transmission
easements was last made in accordance with
section 5B of the Valuation of Land Act
1960, being a date before 1 January in the
year immediately preceding the tax year.
25
28. Agreements relating to the payment of tax
(1) The Commissioner may enter into an agreement
with a transmission easement holder in relation to
the payment of land tax imposed on the
transmission easement.
30
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(2) An agreement under sub-section (1)--
(a) may, despite anything to the contrary in this
Act, permit the payment of the tax to be by
instalments within such time as is set out in
the agreement; and
5
(b) must not be for a period exceeding 5 years.
(3) Nothing in this section limits the operation of
section 49 of the Taxation Administration Act
1997.
Division 5--Special Land Tax
10
29. Imposition of special land tax
Special land tax is imposed in accordance with
this Division on certain land that ceases to be
exempt land.
30. What land is subject to special land tax?
15
(1) Special land tax is imposed on the following land
that ceases to be exempt land--
(a) land referred to in section 66 (primary
production land in greater Melbourne but not
in an urban zone);
20
(b) land referred to in section 67 (primary
production land in an urban zone in greater
Melbourne);
(c) land referred to in section 72 (sporting,
recreational or cultural land);
25
(d) land referred to in section 75 (rooming
houses);
(e) land referred to in section 76 (residential care
facilities and supported residential services);
(f) land referred to in section 77 (caravan
30
parks);
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(g) land referred to in section 80(1) (land owned
by public statutory authority);
(h) land referred to in section 86(1) (land used as
a mine).
(2) Special land tax is not imposed on a parcel of land
5
referred to in sub-section (1)(g) if at the time the
land ceases to be exempt land--
(a) the taxable value of the parcel does not
exceed $199 999; and
(b) it is used or proposed to be used exclusively
10
by the owner, or by any one or more of joint
owners, as his, her or their principal place of
residence.
(3) Special land tax is not imposed if the land ceases
to be exempt land only because the relevant
15
section referred to in sub-section (1) is amended
or repealed.
31. Who is liable for special land tax?
(1) If the land ceases to be exempt land immediately
on a change of ownership, or within 60 days after
20
a change of ownership, the person who was the
owner immediately before the change of
ownership is liable to pay special land tax on the
land.
(2) In any other case, the person who owned the land
25
immediately after it ceased to be exempt land is
liable to pay special land tax on the land.
32. When does a liability for special land tax arise?
A liability for special land tax arises when the
land on which the tax is imposed ceases to be
30
exempt land.
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33. When must special land tax be paid?
The day specified in a notice of assessment of
special land tax must be not less than 14 days after
the day the notice is served on the taxpayer.
5 Note: Section 14 of the Taxation Administration Act
1997 provides for notices of assessment and provides
that tax is payable on or before the day specified in
the notice.
34. Deferral of special land tax in certain circumstances
(1) This section applies to any land referred to in
10
section 30(1) except where the land ceases to be
exempt land immediately on a change of
ownership, or within 60 days after a change of
ownership.
(2) Despite section 32 or 33, the taxpayer may elect to
15
defer the payment of the special land tax until the
sooner of--
(a) a change of ownership of the land, or any
part of it; or
(b) 3 years after the day on which the land
20
ceased to be exempt land.
__________________
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PART 3--ASSESSMENT OF LAND TAX
Division 1--Rate of Land Tax
35. What is the rate of land tax?
(1) The rate of land tax (other than special land tax) is
set out in Schedule 1.
5
(2) The rate of special land tax is 5% of the taxable
value of the land.
Division 2--How is Land Tax Assessed?
36. Land tax assessed on aggregated basis
(1) Subject to this Act, a taxpayer is to be assessed for
10
land tax on land for a tax year on the total taxable
value of all taxable land of which the taxpayer
was the owner at midnight on 31 December
immediately preceding that tax year.
(2) Subject to this Act, a taxpayer is to be assessed for
15
land tax on transmission easements for a tax year
on the total taxable value of all transmission
easements of which the taxpayer was the holder at
midnight on 31 December immediately preceding
the tax year.
20
(3) For the purposes of an assessment, the applicable
rate of land tax in Schedule 1 is to be applied to
the total taxable value of that land or transmission
easements (as the case requires).
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37. Certain taxable land assessed separately
(1) This section applies for the purposes of assessing
land tax payable on the following land--
(a) taxable land owned by a charitable
institution or held by a trustee on trust for
5
charitable purposes;
(b) land referred to in section 81(1) that is
taxable land because of section 81(2).
(2) Land tax is to be assessed for a year on each
parcel of land referred to in sub-section (1) of
10
which the taxpayer was the owner at midnight on
31 December immediately preceding that year as
if that parcel were the only land owned by the
taxpayer.
(3) For that purpose, the applicable rate of land tax in
15
Schedule 1 is to be applied separately to the
taxable value of each parcel.
(4) Part of a parcel of land (other than part of a
building) is to be regarded as a separate parcel of
land for the purposes of this section if the part--
20
(a) is occupied separately from other land in the
parcel; or
(b) is obviously adapted to being so occupied.
38. Assessment of joint owners of land
(1) Joint owners of taxable land are to be assessed for
25
land tax on land in accordance with this section.
(2) Joint owners of taxable land are to be jointly
assessed for land tax on the land as if it were
owned by a single person, without regard to--
(a) the separate interest of each joint owner; or
30
(b) any other land owned by any joint owner
(either alone or jointly with someone else).
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(3) Each joint owner of taxable land is also to be
separately assessed for land tax on--
(a) the owner's individual interest in the land
(as if the owner were the owner of a part of
the land in proportion to that interest); and
5
(b) any other taxable land owned by the owner
alone; and
(c) the owner's individual interest in any other
taxable land.
(4) There is to be deducted from the land tax assessed
10
for a joint owner under sub-section (3) an amount
(if any) necessary to avoid double taxation, being
the lesser of--
(a) the amount determined by the formula--
AŚB
15
where--
A is the proportion of the owner's
individual interest in the jointly-owned
land to the total interests in that land;
B is the total amount of land tax assessed
20
on the jointly-owned land under sub-
section (2); and
(b) the amount determined by the formula--
C
ŚE
D
where--
25
C is the value of the joint owner's
individual interest in the jointly-
owned land (as determined under
sub-section (3)(a));
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D is the total value of all taxable land of
the joint owner assessed under
sub-section (3);
E is the amount of land tax assessed
under sub-section (3).
5
(5) For the purposes of this section a joint owner may
be separately assessed under sub-section (3) in
respect of land even though no land tax is jointly
assessable in respect of that land under
sub-section (2).
10
39. Joint assessments in the case of principal place of
residence land
(1) For the purposes of section 38 and subject to this
section, if land that is jointly owned is exempt
land because it is the principal place of residence
15
of one or more, but not all, of the joint owners--
(a) no land tax is jointly assessable in respect of
that land under section 38(2);
(b) each joint owner who does not use and
occupy the land as his or her principal place
20
of residence may be separately assessed in
respect of that land under section 38(3).
(2) A joint owner of land ("joint owner 1") that is
exempt land in respect of a tax year because of its
use and occupation as the principal place of
25
residence of another joint owner of the land
("joint owner 2") is not, in respect of the tax
year, liable to pay or be assessed under section
38(3) for land tax on the land--
(a) if, at any time during the year immediately
30
preceding the tax year, the land was used and
occupied as the principal place of residence
of joint owner 1 and joint owner 2; or
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(b) if--
(i) at any time during the second year
preceding the tax year the land was
used and occupied as the principal
place of residence of joint owner 1 and
5
joint owner 2; and
(ii) there is no other land that is exempt
land in respect of the tax year because
of its use and occupation as the
principal place of residence of joint
10
owner 1.
(3) Despite anything to the contrary in this section
or Division 1 of Part 4, if a joint owner of land
("the PPR land") who, because of sub-
section (2), is not liable to be assessed under
15
section 38(3) for land tax in respect of the PPR
land in respect of a tax year, resumes use and
occupation of the PPR land during the tax year,
the joint owner is liable for land tax in respect of
the tax year in respect of any other land that, but
20
for this sub-section, would be exempt land under
Division 1 of Part 4 in respect of the tax year.
(4) Except to the extent set out in sub-section (3),
nothing in this section takes away from or affects
the operation of Division 1 of Part 4.
25
40. Assessment of joint occupiers of land
(1) This section applies if 2 or more persons own land
in severalty but occupy it jointly.
(2) Land tax is to be assessed on the persons as if they
were joint owners of the land.
30
(3) For the purposes of this Act, persons (the "joint
occupiers") are taken to occupy land jointly if the
land is occupied, worked or managed--
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(a) by any one or more of the joint occupiers on
behalf of all of the joint occupiers or on a
joint account; or
(b) by any other person as trustee for or
otherwise on behalf of all of the joint
5
occupiers.
(4) Sub-section (3) does not limit the circumstances in
which persons may be taken to occupy land
jointly.
41. Assessment of joint transmission easement holders
10
(1) Joint transmission easement holders are to be
assessed for land tax on transmission easements in
accordance with this section.
(2) Joint transmission easement holders are to be
jointly assessed in respect of a transmission
15
easement as if held by a single person, without
regard to--
(a) the separate interest of each joint
transmission easement holder in that
transmission easement;
20
(b) any other transmission easement held by a
joint transmission easement holder (either
alone or jointly with someone else).
(3) Each joint transmission easement holder is also to
be separately assessed in respect of--
25
(a) the joint transmission easement holder's
individual interest in the transmission
easement as if the transmission easement
holder were the holder of a part of the
transmission easement in proportion to that
30
interest; and
(b) any other transmission easement held by a
joint transmission easement holder alone;
and
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(c) the joint transmission easement holder's
individual interest in any other transmission
easement.
(4) There is to be deducted from the land tax assessed
for a joint transmission easement holder under
5
sub-section (3) an amount (if any) necessary to
avoid double taxation, being the lesser of--
(a) the amount determined by the formula--
AŚB
where--
10
A is the proportion of the transmission
easement holder's individual interest in
the jointly-owned transmission
easement to the total interests in that
easement;
15
B is the total amount of land tax assessed
on the jointly-owned transmission
easement under sub-section (2); and
(b) the amount determined by the formula--
C
ŚE
20
D
where--
C is the value of the joint transmission
easement holder's individual interest in
the jointly-owned transmission
easement (as determined under sub-
25
section (3)(a));
D is the total value of all transmission
easements of the joint transmission
easement holder assessed under sub-
section (3);
30
E is the amount of land tax assessed
under sub-section (3).
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(5) For the purposes of this section, a joint
transmission easement holder may be separately
assessed under sub-section (3) in respect of a
transmission easement even though no land tax is
jointly assessable in respect of that easement
5
under sub-section (2).
(6) In this section--
"joint transmission easement holder" means a
transmission easement holder who holds a
transmission easement jointly with another
10
person.
42. Assessment of owner of land on which there are
home units
(1) For the purposes of assessing the land tax payable
on land on which home units are situated by the
15
owner of the land, the amount of the taxable value
of the home units is to be deducted from the
taxable value of the land.
(2) In sub-section (1), the owner of land on which
home units are situated means the person who is
20
the owner of the land, whether or not that person
is also the owner of one or more of the home
units.
(3) For the purposes of this section, section 12(2)
does not apply in determining who the owner of
25
land is.
43. Mortgagees in possession of land
(1) If there is a mortgagee in possession of land, land
tax on the land is to be assessed at the rate that
would have applied if the mortgagee had not been
30
in possession of the land.
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(2) Sub-section (1) applies until the earlier of--
(a) the mortgagee ceasing to be in possession of
the land; or
(b) 31 December in the 3rd year after the
mortgagee took possession of the land.
5
44. Trustees
(1) Subject to this section, a trustee in whom land is
vested is to be assessed for land tax as if the
trustee were beneficially entitled to the land.
(2) If, in respect of a tax year, a trustee holds different
10
lands in severalty for different beneficial owners
who are not liable to be jointly assessed for land
tax on the lands, the trustee is to be assessed for
land tax for the year on each of those lands as if
each of those lands were the only land held by the
15
trustee.
(3) If, in respect of a tax year, a trustee holds land on
trust and holds other land beneficially, the trustee
is to be assessed for land tax for the year
separately on the land held on trust and the land
20
held beneficially.
(4) Sub-section (3) does not apply if, apart from this
section, the trustee would be liable to be jointly
assessed for land tax on any of the relevant land.
(5) A trustee who has paid any land tax assessed in
25
accordance with this section on land is entitled--
(a) to be repaid the amount of the tax by a
beneficial owner who is also liable to pay
land tax on the land; or
(b) to recoup the amount of the tax from any
30
trust property that is subject to the trust to
which the land is subject, or any like trust.
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45. Certain long-term lessees of private land
(1) This section applies if--
(a) a person (the "lessee") has a leasehold estate
in land (other than under a lease from the
Crown); and
5
(b) the lessee became entitled to that estate
before 30 December 1978.
(2) If this section applies, both the lessee and the
owner of the freehold estate in the land are to be
assessed for land tax on the land and, for the
10
purpose of this Act, a reference to the owner of
the land includes a reference to the lessee.
(3) The Commissioner may apportion the land tax
payable on the land as between the owner of the
freehold estate and the lessee if the Commissioner
15
is of the opinion that the value of the freehold
owner's interest in the land is lessened by the
covenants of the lease.
(4) If the Commissioner apportions the land tax under
sub-section (3), the owner of the freehold estate
20
and the lessee are each liable to pay the proportion
of the tax determined by the Commissioner.
46. Land tax on parts of land
If it is necessary to assess land tax on a part of
land, the land tax applicable to that part is the
25
proportion of the land tax, assessed on the taxable
value of the whole land, that the taxable value of
the part bears to the total taxable value of the
whole land.
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Division 3--Grouping of Related Corporations
47. What are "related corporations"?
(1) For the purposes of this Division, corporations are
related corporations in any of the circumstances
specified in this section.
5
(2) Corporations are "related corporations" if one
of those corporations--
(a) controls the composition of the board of the
other corporation; or
(b) is in a position to cast, or control the casting
10
of, more than 50% of the maximum number
of votes that might be cast at a general
meeting of the other corporation; or
(c) holds more than 50% of the issued share
capital of the other corporation.
15
(3) Corporations are "related corporations" if the
same person has, or the same persons have
together, a controlling interest in each of the
corporations.
20 Note: "controlling interest" is defined in section 48.
(4) Corporations are "related corporations" if--
(a) more than 50% of the issued share capital of
one of those corporations ("corporation 1")
is held by the other corporation
("corporation 2") together with the
25
shareholders of corporation 2; and
(b) the percentage of the issued share capital of
corporation 2 held by shareholders of
corporation 1 is more than the difference
between 50% and the percentage of the
30
issued share capital of corporation 1 held by
corporation 2.
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(5) Corporations are "related corporations" if one
of those corporations is a related corporation of a
corporation of which the other of those
corporations is a related corporation (including a
corporation that is a related corporation of the
5
other of those corporations because of one or
more other applications of this sub-section).
48. What is a "controlling interest" in a corporation?
For the purposes of this Division, a person has, or
persons have together, a "controlling interest" in
10
a corporation if--
(a) that person, or those persons acting together,
can control the composition of the board of
the corporation; or
(b) that person is, or those persons acting
15
together are, in a position to cast or control
the casting of more than 50% of the
maximum number of votes that might be cast
at a general meeting of the corporation; or
(c) that person holds, or those persons acting
20
together hold, more than 50% of the issued
share capital of the corporation.
49. Further provisions for determining whether
corporations are related corporations
(1) For the purposes of this Division--
25
(a) corporations may be related corporations
whether or not they own land in Victoria;
(b) a reference to the issued share capital of a
corporation does not include a reference to
any part of it that carries no right to
30
participate beyond a specified amount in a
distribution of either profits or capital;
(c) subject to paragraphs (d) and (e), any shares
held or power exercisable by a person or
corporation as a trustee or nominee for
35
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Part 3--Assessment of Land Tax
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another person or corporation are taken to be
also held or exercisable by the other person
or corporation;
(d) any shares held or power exercisable by a
person or corporation by virtue of the
5
provisions of any debentures of another
corporation, or of a trust deed for securing
any issue of any such debentures, must be
disregarded;
(e) any shares held or power exercisable by, or
10
by a nominee for, a person or corporation
(not being held or exercisable as mentioned
in paragraph (d)) are taken to be not held or
exercisable by that person or corporation
if--
15
(i) the ordinary business of that person or
corporation includes the lending of
money; and
(ii) the shares are held or the power is
exercisable only by way of security
20
given for the purposes of a transaction
entered into in the ordinary course of
business in connection with the lending
of money, not being a transaction
entered into with an associate of that
25
person or corporation within the
meaning of the Corporations Act;
(f) the composition of a corporation's board is
taken to be controlled by a person or another
corporation if the person or other
30
corporation, by the exercise of a power
exercisable whether or not with the consent
or concurrence of any other person, can
appoint or remove all or a majority of the
members of the board.
35
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(2) Sub-section (1)(f) does not limit the circumstances
in which the composition of a corporation's board
is to be taken to be controlled by a person or
another corporation.
50. Grouping of related corporations
5
(1) The Commissioner may treat related corporations
as a single corporation for the purposes of this
Act.
(2) If the Commissioner does so--
(a) the Commissioner must assess the related
10
corporations jointly for land tax; and
(b) the related corporations are jointly and
severally liable for the land tax; and
(c) section 46 of the Taxation Administration
Act 1997 applies accordingly.
15
Division 4--General
51. Reassessments
The Commissioner may make a reassessment of
land tax under section 9 of the Taxation
Administration Act 1997 more than 3 years after
20
the initial assessment.
__________________
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Part 4--Exemptions and Concessions
s. 52
PART 4--EXEMPTIONS AND CONCESSIONS
Division 1--Principal Place of Residence
52. Definitions
(1) In this Division--
"acceptable delay" means a delay in the
5
commencement or completion of a building
or other work necessary to enable the
intended use and occupation of the land to
become its actual use and occupation that is
due to reasons beyond the control of the
10
owner or trustee;
"discretionary trust" means a trust under which
the vesting of the whole or any part of the
trust property--
(a) is required to be determined by a
15
person either in respect of the identity
of the beneficiaries or the quantum of
interest to be taken, or both; or
(b) will occur in the event that a discretion
conferred under the trust is not
20
exercised;
"trustee" means trustee within the meaning of
section 3(1) but does not include--
(a) a trustee of a discretionary trust; or
(b) a trustee of a trust to which a unit trust
25
scheme relates; or
(c) a liquidator;
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"unit trust scheme" means an arrangement made
for the purpose, or having the effect, of
providing facilities for participation by a
person, as a beneficiary under a trust, in any
profit or income arising from the acquisition,
5
holding, management or disposal of property
under the trust.
(2) For the purposes of this Division, a person is not a
trustee of a trust relating to land by reason only
that the land is subject to an implied or a
10
constructive trust.
53. What is a principal place of residence?
(1) For the purposes of this Division, land is not taken
to be occupied as a place of residence unless there
is a building affixed to the land (including a home
15
unit) that, in the Commissioner's opinion--
(a) is designed and constructed primarily for
residential purposes; and
(b) may lawfully be used as a place of residence.
(2) In determining whether land is used or occupied
20
as the principal place of residence of a person,
account must be taken of every place of residence
of the person, whether in Victoria or elsewhere.
(3) For the purposes of this Division, if land on which
home units are situated is owned by a body
25
corporate, the land is deemed to be owned by the
shareholders of the body corporate who are
entitled to exclusive occupancy of the home units.
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54. Principal place of residence exemption
(1) Subject to this Division, the following land is
exempt land--
(a) land owned by a natural person that is used
and occupied as the principal place of
5
residence of that person;
(b) land owned by a trustee of a trust that is used
and occupied as the principal place of
residence of a natural person who is a
beneficiary of the trust.
10
(2) Subject to section 55, sub-section (1) only applies
if the land has been used and occupied as the
principal place of residence of the owner or
beneficiary--
(a) since 1 July in the year preceding the tax
15
year; or
(b) if the owner or trustee became the owner of
the land on or after 1 July in the year
preceding the tax year, since a later date
during that year.
20
(3) In addition to land of an owner that is used and
occupied as a person's principal place of residence
("the PPR land"), land is also exempt land if it is
owned by that owner and--
(a) is contiguous with the PPR land or separated
25
from the PPR land only by a road or railway
or other similar area across or around which
movement is reasonably possible; and
(b) enhances the PPR land; and
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(c) is used solely for the private benefit and
enjoyment of the person who uses and
occupies the PPR land and has been so
used--
(i) since 1 July in the year preceding the
5
tax year; or
(ii) if the owner or trustee became the
owner of the land on or after 1 July in
the year preceding the tax year, so used
and occupied since a later date during
10
that year.
(4) This section applies to land whether owned by a
sole owner or joint owners.
55. Deferral of tax on certain residential land for
6 months
15
(1) If--
(a) land would be exempt land in respect of a
year under section 54 but for section 54(2);
and
(b) the owner satisfies the Commissioner that
20
the land is intended to be continuously used
and occupied as the principal place of
residence of the owner or, in the case of a
trustee, as the principal place of residence of
a beneficiary, for a period of at least
25
6 months from the date that the land was first
so used and occupied--
the Commissioner may determine that land tax in
respect of the land for that year is not payable
until the expiry of that 6 month period.
30
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(2) If land that would be exempt land in respect of a
year but for section 54(2) has been continuously
used and occupied as the person's principal place
of residence for the period of 6 months, the land
becomes exempt land in respect of that year at the
5
end of that period.
56. Temporary absence from principal place of
residence
(1) For the purposes of this Division, land is taken to
be used and occupied as the principal place of
10
residence of a person despite the person's absence
from the land if the Commissioner is satisfied--
(a) that the absence is temporary in nature; and
(b) that the person intends to resume use or
occupation of the land as his or her principal
15
place of residence after the absence; and
(c) that, in respect of the period of absence, no
other land is exempt land under this Division
as the principal place of residence of the
owner or, in the case of a trustee, as the
20
principal place of residence of a beneficiary;
and
(d) that the owner has not made any claim for
exemption for land tax under a law of
another jurisdiction (whether in or outside
25
Australia) in respect of the period of absence
for his or her principal place of residence or,
in the case of a trustee, as the principal place
of residence of a beneficiary.
(2) For the purposes of section 62, land to which sub-
30
section (1) applies is not to be taken to be land
used by a person to carry on a substantial business
activity only because the owner lets the land for
residential purposes during the absence.
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(3) Sub-section (1) does not apply in the case of a
temporary absence--
(a) that continues for more than 6 years starting
at the end of the last period of at least
6 consecutive months during which the land
5
was used and occupied--
(i) in the case of an owner, by the owner as
his or her principal place of residence;
or
(ii) in the case of a trustee, by the
10
beneficiary as his or her principal place
of residence; or
(b) if the owner or trustee rents the land for a
period of 6 consecutive months or more in a
particular year.
15
57. Exemption continues on death of resident
(1) If land is used and occupied as the principal place
of residence of a person and the person dies,
liability for tax is to be assessed as if the person
had not died but had continued to use and occupy
20
the land as his or her principal place of residence.
(2) Sub-section (1) operates only until the earlier of--
(a) the first anniversary of the person's death; or
(b) the day on which the person's interest in the
land vests in another person under a trust; or
25
(c) the day on which the person's interest in the
land vests in a person (other than the person's
personal representative) under the
administration of the person's estate.
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58. Exemption continues if land becomes unfit for
occupation
(1) If land that is exempt land under section 54(1)
becomes unfit for occupation as the principal
place of residence of a person because of damage
5
or destruction caused by an event such as fire,
earthquake, storm, accident or malicious damage,
the land continues to be exempt land while the
owner continues to own the land as if it had
continued to be used and occupied as the person's
10
principal place of residence.
(2) Sub-section (1) operates until the second
anniversary of the day on which the land became
unfit for occupation as the person's principal place
of residence.
15
(3) The Commissioner may extend the period of
operation of sub-section (1) beyond the period
referred to in sub-section (2) for a further period
of not more than 2 years in any particular case if
the Commissioner is satisfied that there has been
20
an acceptable delay in that case.
(4) Sub-section (1) does not apply if, at any time
during which it would otherwise apply, any other
land is exempt land under section 54(1) as the
principal place of residence of the owner or, in the
25
case of a trustee, as the principal place of
residence of a beneficiary.
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59. Purchase of new principal residence
(1) If a person--
(a) becomes the owner of land in a year for use
and occupation as his or her principal place
of residence; and
5
(b) as at 31 December in that year uses and
occupies other land as his or her principal
place of residence--
the land referred to in paragraph (a) is exempt
land for the following year.
10
Note: In this situation, the land referred to in paragraph (b)
will be exempt land in the circumstances set out in
section 54(1)(a).
(2) If a trustee--
(a) becomes the owner of land in a year for use
15
and occupation as the principal place of
residence of a beneficiary under the trust;
and
(b) as at 31 December in that year the
beneficiary uses and occupies other land as
20
his or her principal place of residence--
the land referred to in paragraph (a) is exempt
land for the following year.
Note: In this situation, the land referred to in paragraph (b)
25 will be exempt land in the circumstances set out in
section 54(1)(b).
(3) An exemption under sub-section (1) or (2) is
revoked if the owner or beneficiary does not
continuously use and occupy the land as his or her
principal place of residence for at least 6 months,
30
commencing within 12 months after the date on
which the owner or trustee became the owner of
the land.
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(4) The Commissioner may assess the land tax
payable by the owner or trustee in the
circumstances referred to in sub-section (3).
60. Sale of old principal residence
(1) If an owner--
5
(a) as at 31 December in a year uses and
occupies land as his or her principal place of
residence; and
(b) as at that date is the owner of other land that,
for a period of at least 6 months during that
10
year, was continuously used and occupied as
the principal place of residence of the
owner--
the land referred to in paragraph (b) is exempt
land in respect of the following year.
15
Note: In this situation, the land referred to in paragraph (a)
will also be exempt land in the circumstances set out
in section 54(1)(a).
(2) If--
(a) as at 31 December in a year, land is used and
20
occupied as the principal place of residence
of a beneficiary under a trust; and
(b) as at that date the trustee is the owner of
other land that, for a period of at least
6 months during that year, was continuously
25
used and occupied as the principal place of
residence of the beneficiary--
the land referred to in paragraph (b) is exempt
land in respect of the following year.
30 Note: In this situation, the land referred to in paragraph (a)
will also be exempt land in the circumstances set out
in section 54(1)(b).
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(3) An exemption under sub-section (1) or (2) is
revoked if the owner or trustee is still the sole
or joint owner of the land referred to in sub-
section (1)(b) or (2)(b) at the end of the year in
respect of which the land is exempt.
5
(4) The Commissioner may assess the land tax
payable by the owner or trustee in the
circumstances referred to in sub-section (3).
61. Unoccupied land subsequently used as principal
residence
10
(1) An owner who was assessed for and paid land tax
in respect of a year in respect of land that is not
occupied as the principal place of residence of the
owner is entitled to a refund of that land tax if--
(a) for at least 6 months commencing in that
15
year, the land is continuously used and
occupied as the principal place of residence
of the owner; and
(b) an application for a refund is made before
the end of the next following year.
20
(2) A trustee who was assessed for and paid land tax
in respect of a year in respect of land that is not
occupied as the principal place of residence of a
beneficiary under the trust is entitled to a refund
of that land tax if--
25
(a) for at least 6 months commencing in that
year, the land is continuously used and
occupied as the principal place of residence
of a beneficiary under the trust; and
(b) an application for a refund is made before
30
the end of the next following year.
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(3) If--
(a) an owner or trustee is entitled under sub-
section (1) or (2) to a refund of land tax in
respect of a tax year in respect of land; and
(b) the owner or trustee was assessed for and
5
paid land tax in respect of that land in respect
of the year preceding the tax year; and
(c) the owner or trustee was not entitled to an
exemption under this Part in respect of any
other land in respect of the year preceding
10
the tax year--
the owner or trustee is entitled to a refund of the
land tax referred to in paragraph (b).
(4) If--
(a) an owner or trustee is entitled under sub-
15
section (3) to a refund of land tax in respect
of the first year preceding the tax year
referred to in that sub-section ("the first
year") in respect of land; and
(b) the owner or trustee was assessed for and
20
paid land tax in respect of that land in respect
of the year or 2 years immediately preceding
the first year; and
(c) the owner or trustee was not entitled to an
exemption under this Part in respect of any
25
other land in respect of the year or years
referred to in paragraph (b)--
the Commissioner may refund to the owner or
trustee the land tax paid in respect of the year or
years referred to in paragraph (b) in a particular
30
case if the Commissioner is satisfied that there has
been an acceptable delay in that case.
Note: Refunds must be applied for under section 19 of the
Taxation Administration Act 1997.
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(5) Sub-sections (1), (2), (3) and (4) do not apply if
the owner or trustee derived any income from the
land at any time during which it was not occupied
as a principal place of residence of the owner or of
a beneficiary under the trust, as the case may be.
5
(6) For the purposes of calculating the amount of a
refund under this section, the land referred to in
sub-section (1), (2), (3) or (4) is to be taken to
have been exempt from land tax in respect of the
tax year in respect of which the refund is payable.
10
Example
At midnight on 31 December 2005, A owned a block of
unoccupied land valued at $100 000 and an investment
property valued at $250 000. A's land tax for 2006 will be
15 calculated on the aggregated value of both landholdings, that
is $350 000. If A occupies the block as A's principal place
of residence for at least 6 months commencing at some time
in 2005, A's refund under sub-section (1) will be calculated
as if the block had been exempt from land tax for 2005.
20 Therefore, A's refund will be the difference between the
land tax A paid on a land value of $350 000 and the land tax
A would have paid on a land value of $250 000.
62. Partial exemption if land used for business activities
(1) Despite anything to the contrary in this Part, if
land that would be exempt land under another
25
provision of this Division, but for this section, is
used by any person to carry on a substantial
business activity, the exemption applies only to
the extent that the land is used and occupied for
residential purposes.
30
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(2) In determining whether land is used by a person to
carry on a substantial business activity, account
must be taken of--
(a) whether paid employees or contractors (other
than employees or contractors who are
5
relatives of, and who ordinarily reside with,
the person who uses and occupies the land as
his or her principal place of residence) work
on the land; and
(b) whether any part of the land is used or
10
allocated solely for business purposes; and
(c) if part of the land is used or allocated
(whether solely or partly) for business
purposes, the proportion of the area of the
land, or of the floor space of buildings on the
15
land, that is so used or allocated; and
(d) the amount of income (if any), and the
proportion of the person's total income, that
is derived from business activities carried on
on the land; and
20
(e) such other matters (if any) as are prescribed
for the purposes of this section.
(3) If sub-section (1) applies, the Commissioner must
apportion the value of the land as between use and
occupation for residential purposes and use for
25
business purposes, having regard to the proportion
of the land used for each purpose and the extent to
which each proportion is so used.
(4) The Commissioner may consult the Valuer-
General in relation to an apportionment under this
30
section.
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63. Partial exemption or refund for trustees
(1) Despite anything to the contrary in this Division,
if--
(a) an exemption from land tax or a refund of
land tax is provided for in this Division as a
5
consequence of the continuous use and
occupation of land as the principal place of
residence of one or more beneficiaries under
a trust; and
(b) other beneficiaries under the trust who do not
10
use and occupy the land as their principal
place of residence have a beneficial interest
in the land--
the amount of the exemption or refund is
determined as if the value of the land for the
15
purposes of the exemption or refund were such
proportion of the value of the land as is equal to
the proportion that the interest in the land held by
the beneficiary bears to the total interests of all
beneficiaries in the land.
20
(2) Nothing in sub-section (1) applies in the case of a
beneficiary entitled to a life estate in possession.
Division 2--Primary Production Land
64. Definitions
(1) In this Division--
25
"greater Melbourne" has the same meaning that
"metropolitan area" has in section 201 of the
Melbourne and Metropolitan Board of
Works Act 1958;
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"primary production" means--
(a) cultivation for the purpose of selling the
produce of cultivation (whether in a
natural, processed or converted state);
or
5
(b) the maintenance of animals or poultry
for the purpose of selling them or their
natural increase or bodily produce; or
(c) the keeping of bees for the purpose of
selling their honey; or
10
(d) commercial fishing, including the
preparation for commercial fishing or
the storage or preservation of fish or
fishing gear; or
(e) the cultivation or propagation for sale
15
of plants seedlings mushrooms or
orchids;
"proprietary company" has the same meaning
as in the Corporations Act;
"relevant period", in relation to a proprietary
20
company means, for any point in time--
(a) the previous 3 years; or
(b) the period since the incorporation of the
company--
whichever is the shorter;
25
"urban zone" means a zone under a planning
scheme in force under the Planning and
Environment Act 1987 of a type declared
under sub-section (2) to be an urban zone for
the purposes of this Division.
30
(2) The Governor in Council may by Order published
in the Government Gazette declare specified types
of zones under planning schemes to be urban
zones for the purposes of this Division.
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65. Exemption of primary production land outside
greater Melbourne
(1) Land outside greater Melbourne that is used
primarily for primary production is exempt land.
(2) If a part of any land outside greater Melbourne is
5
used primarily for primary production that part is
exempt land even if a business other than the
business of primary production is carried on on
any other part of the land.
66. Exemption of primary production land in greater
10
Melbourne but not in an urban zone
Land is exempt land if the Commissioner
determines that the land comprises one parcel--
(a) that is wholly or partly in greater Melbourne;
and
15
(b) none of which is within an urban zone; and
(c) that is used primarily for primary production.
67. Exemption of primary production land in an urban
zone in greater Melbourne
(1) Land is exempt land if the Commissioner
20
determines that--
(a) the land comprises one parcel that is--
(i) wholly or partly in greater Melbourne;
and
(ii) wholly or partly in an urban zone; and
25
(iii) used solely or primarily for the business
of primary production; and
(b) the owner of the land is a person specified in
sub-section (2).
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(2) The owner of the land must be--
(a) a natural person who is normally engaged in
a substantially full-time capacity in the
business of primary production of the type
carried on on the land; or
5
(b) a proprietary company--
(i) in which all the shares are beneficially
owned by natural persons; and
(ii) the principal business of which is
primary production of the type carried
10
on on the land; or
(c) a trustee of a trust of which--
(i) the sole business is primary production
of the type carried on on the land; and
(ii) each beneficiary is a natural person
15
who is entitled under the trust deed to
an annual distribution of the trust
income; and
(iii) at least one of the beneficiaries, or a
relative of at least one of the
20
beneficiaries, is normally engaged in a
substantially full-time capacity in the
business of primary production of the
type carried on on the land.
(3) For the purposes of sub-section (2)(b)(ii), the
25
principal business of a proprietary company is not
primary production of the type carried on on the
land unless--
(a) the main undertaking of the company is
primary production of that type; and
30
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(b) either--
(i) dividends distributed during the
relevant period were made to all the
holders of the issued share capital of
the company in proportion to their
5
respective paid up shareholdings and
60% of those dividends were paid to
persons normally engaged in a
substantially full-time capacity in the
business of primary production; or
10
(ii) if no dividends were declared during
the relevant period, ordinary shares
representing more than 60% of the paid
up capital of the company (excluding
shares entitled to a fixed rate of
15
dividend) have been beneficially owned
for the relevant period by persons
normally engaged in a substantially
full-time capacity in the business of
primary production.
20
(4) If 2 or more persons are the owner of a parcel of
land and--
(a) at least one of them is normally engaged in a
substantially full-time capacity in the
business of primary production on the land;
25
and
(b) the other or others are relatives of a person
normally so engaged; and
(c) no other person is normally so engaged on
that land--
30
the owners are deemed, for the purposes of sub-
section (2), to be normally so engaged.
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(5) If--
(a) a person is, or 2 or more persons are, the
owner of a parcel of land on which the
business of primary production is carried on;
and
5
(b) a relative of the person, or of each of the
persons, is normally engaged in a
substantially full-time capacity in that
business (whether or not the person, or any
of those persons, is also normally so
10
engaged); and
(c) no other person is normally so engaged on
that land--
the owner is deemed, for the purposes of sub-
section (2), to be normally so engaged.
15
(6) For the purposes of this section, a reference to the
issued share capital of a company does not include
a reference to any part of it that carries no right to
participate beyond a specified amount in a
distribution of either profits or capital.
20
68. Exemption of land being prepared for use for
primary production
(1) Land is exempt land for a tax year if the
Commissioner is satisfied that--
(a) the land is being prepared for use primarily
25
for primary production; and
(b) the land will become exempt land under
section 65, 66 or 67 within 12 months after
the day on which the preparation referred to
in paragraph (a) commenced.
30
(2) The Commissioner may extend the period referred
to in sub-section (1)(b) by a further period of
12 months.
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69. Application for exemption under section 66, 67 or 68
To obtain an exemption from land tax under
section 66, 67 or 68, the owner of the land must--
(a) apply to the Commissioner for an exemption
under the section; and
5
(b) give the Commissioner any information the
Commissioner requests for the purpose of
enabling the Commissioner to determine
whether the land is exempt under the section.
70. Parcels of land
10
For the purposes of section 66 or 67, a part of a
parcel of land is to be regarded as a separate
parcel of land if--
(a) the part is occupied separately from or is
obviously adapted to being occupied
15
separately from other land in the parcel; and
(b) the owner of the parcel is--
(i) a natural person who is normally
engaged in a substantially full-time
capacity in the business of primary
20
production of the type carried on on the
land; or
(ii) a proprietary company all the shares in
which are beneficially owned by
natural persons and the principal
25
business of which is primary
production of a type carried on on the
land; or
(iii) a trustee of a trust of which--
(A) the sole business is primary
30
production of the type carried on
on the land; and
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(B) each beneficiary is a natural
person who is entitled under the
trust deed to an annual distribution
of the trust income; and
(C) at least one of the beneficiaries, or
5
a relative of at least one of the
beneficiaries, is normally engaged
in a substantially full-time
capacity in the business of
primary production of the type
10
carried on on the land.
Division 3--Sporting, Recreational and Cultural Land
71. Land leased for sporting, recreational or cultural
activities by members of the public
(1) Land vested in a person or body is exempt land if
15
the Commissioner determines that--
(a) it is leased for outdoor sporting, outdoor
recreational, outdoor cultural or similar
outdoor activities and is available for use for
one or more of those activities by members
20
of the public; and
(b) the proceeds from the leasing are applied
exclusively by the person or body for
charitable purposes.
(2) To obtain an exemption from land tax under this
25
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
30
enabling the Commissioner to determine
whether the land is exempt under this
section.
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72. Sporting, recreational or cultural land owned by
certain non-profit organisations
(1) This section applies to land owned--
(a) by a non-profit organisation; or
(b) in the case of a non-profit organisation that is
5
unincorporated, by a person on trust for the
non-profit organisation.
(2) The land is exempt land if the Commissioner
determines that--
(a) the land is used by the non-profit
10
organisation primarily or substantially for--
(i) sporting activities; or
(ii) outdoor recreational, outdoor cultural
or similar outdoor activities; and
(b) the primary purpose or objective of the
15
non-profit organisation is to conduct the
sporting activities or outdoor recreational,
outdoor cultural or similar outdoor activities
for which the land is primarily or
substantially used.
20
(3) To obtain an exemption from land tax under this
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
25
Commissioner requests for the purpose of
enabling the Commissioner to determine
whether the land is exempt under this
section.
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(4) In this section--
"non-profit organisation" means a body
(whether incorporated or not) that--
(a) applies its profits in promoting its
purposes or objectives; and
5
(b) prohibits the payment of any dividends
to members--
but does not include a body that promotes or
controls horse racing, pony racing or harness
racing in Victoria.
10
73. Concessional tax rate for club land
(1) Land or part of land that is owned and solely
occupied by a club is not liable for land tax at a
rate greater than 0357% of the taxable value of
the land or part.
15
(2) For the purposes of sub-section (1) and assessing
land tax on any part of the land that is not solely
occupied by a club, the land tax that is or that
would be, but for the operation of sub-section (1),
attributable to a part of land is the proportion of
20
the land tax that would, but for the operation of
sub-section (1), be payable on the whole of the
land owned by a club.
(3) In this section, "club" means a society, club or
association that--
25
(a) is not carried on for the purposes of the profit
or gain to its individual members; and
(b) is carried on exclusively for one or more of
the following purposes--
(i) providing for the social, cultural,
30
recreational, literary or educational
interests of its members;
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(ii) promoting or controlling horse racing,
pony racing or harness racing in
Victoria.
Division 4--Charities
74. Charitable institutions and purposes
5
(1) Land is exempt land if the Commissioner
determines that--
(a) it is used by a charitable institution
exclusively for charitable purposes; or
(b) it is--
10
(i) owned by a charitable institution; and
(ii) vacant; and
(iii) declared by its owner to be held for
future use for charitable purposes.
(2) If the Commissioner is satisfied that only a part of
15
land is used by a charitable institution exclusively
for charitable purposes--
(a) land tax is assessable on the remaining part
of the land, unless another exemption applies
to that part; and
20
(b) section 22 applies, if necessary, for that
purpose.
(3) To obtain an exemption from land tax under this
section, the owner of the land must--
(a) apply to the Commissioner for the
25
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
enabling the Commissioner to determine
whether the land is exempt under this
30
section.
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Division 5--Accommodation
75. Rooming houses
(1) Land is exempt land if the Commissioner
determines that the land is used and occupied--
(a) as a rooming house (within the meaning of
5
the Residential Tenancies Act 1997) that is
registered under Part XII of the Health Act
1958; and
(b) primarily for low cost accommodation by
people with low incomes, in accordance with
10
guidelines issued by the Commissioner for
the purposes of this section.
(2) The guidelines may include provisions with
respect to the following--
(a) the circumstances in which accommodation
15
is taken to be low cost accommodation;
(b) the types and location of premises in which
low cost accommodation may be provided;
(c) the number and types of persons for whom
the accommodation must be provided;
20
(d) the circumstances in which, and the
arrangements under which, the
accommodation is provided;
(e) maximum tariffs for the accommodation;
(f) periods within which tariffs may not be
25
increased;
(g) the circumstances in which the applicant is
required to give an undertaking to pass on
the benefit of the exemption from taxation to
the persons for whom the accommodation is
30
provided in the form of lower tariffs.
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(3) A guideline--
(a) may be of general or limited application;
(b) may differ according to differences in time,
place or circumstances.
(4) To obtain an exemption from land tax under this
5
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
10
enabling the Commissioner to determine
whether the land is exempt under this
section.
(5) If the Commissioner is satisfied that only a part of
land is used and occupied as a rooming house or
15
primarily for low cost accommodation by people
with low incomes--
(a) land tax is assessable on the remaining part
of the land, unless another exemption applies
to that part; and
20
(b) section 22 applies, if necessary, for that
purpose.
(6) Without limiting the other ways in which land
ceases to be exempt under this section, land ceases
to be exempt if a person breaches an undertaking
25
given as referred to in sub-section (2)(g).
76. Residential care facilities and supported residential
services
(1) Land is exempt land if the Commissioner
determines that it is occupied, or currently
30
available for occupation, as--
(a) a residential care facility; or
(b) a supported residential service.
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(2) To obtain an exemption from land tax under this
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
5
Commissioner requests for the purpose of
enabling the Commissioner to determine
whether the land is exempt under this
section.
(3) If the Commissioner is satisfied that only a part of
10
land is occupied or currently available for
occupation as a residential care facility or
supported residential service--
(a) land tax is assessable on the remaining part
of the land, unless another exemption applies
15
to that part; and
(b) section 22 applies, if necessary, for that
purpose.
(4) In this section--
"residential care facility" means any premises--
20
(a) in which--
(i) a residential care service; or
(ii) a multi purpose service--
within the meaning of the Aged Care
Act 1997 of the Commonwealth, is
25
operated by an approved provider
within the meaning of that Act; and
(b) in respect of which an allocation of
residential care places is in effect under
Division 15 of that Act;
30
"supported residential service" has the same
meaning as in the Health Services Act 1988.
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77. Caravan parks
(1) Land is exempt land if the Commissioner
determines that it is used as a registered caravan
park.
(2) To obtain an exemption from land tax under this
5
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
10
enabling the Commissioner to determine
whether the land is exempt under this
section.
(3) If the Commissioner is satisfied that only a part of
land is used as a registered caravan park--
15
(a) land tax is assessable on the remaining part
of the land, unless another exemption applies
to that part; and
(b) section 22 applies, if necessary, for that
purpose.
20
(4) In this section--
"registered caravan park" means a caravan park
within the meaning of the Residential
Tenancies Act 1997 that is registered in
accordance with regulations made under
25
section 515 of that Act.
78. Retirement villages
(1) Land is exempt land if it is occupied, or currently
available for occupation, as a retirement village.
(2) If the Commissioner is satisfied that only a part of
30
land is occupied, or currently available for
occupation, as a retirement village--
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(a) land tax is assessable on the remaining part
of the land, unless another exemption applies
to that part; and
(b) section 22 applies, if necessary, for that
purpose.
5
(3) In this section--
"retirement village" means a complex
containing residential premises (whether or
not including hostel units) predominantly or
exclusively occupied, or available for
10
occupation, by retired persons under--
(a) a residential tenancy agreement or any
other lease or licence; or
(b) a right conferred by shares; or
(c) the ownership of residential premises
15
subject to a right or option of
repurchase on conditions restricting the
subsequent disposal of the premises--
other than a complex or premises that is or
are a residential care facility or supported
20
residential service within the meaning of
section 76.
Division 6--Public, Government and Municipal Land
79. Crown land
(1) Land is exempt land if it is--
25
(a) the property of the Crown in right of
Victoria; or
(b) vested in a Victorian Minister.
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(2) Sub-section (1) does not apply to land that is held
by--
(a) a person who is entitled to the land under a
lease from the Crown under which the
person has no right, absolute or conditional,
5
of acquiring the fee simple; or
(b) a licensee of vested land under Part 3A of the
Victorian Plantations Corporation Act
1993.
80. Public statutory authorities
10
(1) Land is exempt land if the Commissioner
determines that the land--
(a) is owned by a public statutory authority; and
(b) is not land to which sub-section (2) applies.
(2) Land or a part of land owned by a public statutory
15
authority is not exempt land if--
(a) the land or part is leased or occupied for any
business purposes by a person or body other
than--
(i) a public statutory authority; or
20
(ii) a person or body referred to in
section 72(1), 81(1), 83(1) or 84(1); or
(b) the land or part is--
(i) owned by a public statutory authority
declared under sub-section (4) to be an
25
authority to which this sub-paragraph
applies; and
(ii) not used exclusively as a public open
space or as a park.
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(3) Sub-section (2)(a) does not apply to land or part of
land that is leased or occupied under or in
accordance with an arrangement made with a
municipal council for the purpose of promoting or
assisting a decentralised industry.
5
(4) The Governor in Council may, by Order published
in the Government Gazette, declare a public
statutory authority to be an authority to which
sub-section (2)(b) applies.
(5) To obtain an exemption from land tax under this
10
section, the owner of the land must--
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
15
enabling the Commissioner to determine
whether the land is exempt under this
section.
81. Municipal and public land
(1) Land is exempt land if it is--
20
(a) owned by a municipal council; or
(b) vested in trustees appointed under an Act and
held in trust for a municipal purpose; or
(c) vested in trustees appointed under an Act and
held in trust for a public purpose.
25
(2) Despite sub-section (1), land or a part of land
referred to in that sub-section is not exempt land if
the land or part is leased or occupied for any
business purposes by a person or body other
than--
30
(a) a municipal council or trustees of a kind
referred to in sub-section (1)(b) or (c); or
(b) a person or body referred to in section 72(1),
80(1), 83(1) or 84(1).
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(3) Sub-section (2) does not apply to land or part of
land that is leased or occupied under or in
accordance with an arrangement made with a
municipal council for the purpose of promoting or
assisting a decentralised industry.
5
(4) Sub-section (1) does not apply to land vested in or
held in trust for, or for the purposes of, or for
purposes that include the purposes of, a trade
union, trades hall or council of trade unions.
82. Application of Division 6
10
(1) Nothing in this Division applies to land--
(a) owned or occupied by the Transport
Accident Commission; or
(b) owned or occupied by the Victorian Urban
Development Authority, other than--
15
(i) land to which a declaration under sub-
section (2) applies; or
(ii) land in the docklands area within the
meaning of the Docklands Act 1991.
(2) The Treasurer, on the recommendation of the
20
Minister administering the Victorian Urban
Development Authority Act 2003, may, by
instrument, declare land owned or occupied by the
Victorian Urban Development Authority to be
exempt land if the Treasurer is satisfied that the
25
land is, or is to be, used for the provision of rental
housing in accordance with a housing agreement
in force between the Commonwealth and the
State.
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Division 7--General Exemptions
83. Armed services personnel
(1) Land is exempt land if--
(a) it is owned by, or held in trust for, an
association of armed services personnel or
5
the dependants of armed services personnel;
and
(b) it is used by the members of the association
for the purposes of the association.
(2) Despite sub-section (1), land or a part of land
10
referred to in that sub-section is not exempt land if
the land or part is leased or occupied for any
business purposes by a person or body other
than--
(a) an association referred to in sub-section (1);
15
or
(b) a person or body referred to in section 72(1),
80(1), 81(1) or 84(1).
(3) Sub-section (2) does not apply to land or part of
land 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.
(4) In this section--
"armed services personnel" means members or
25
former members of--
(a) the armed forces of the
Commonwealth; or
(b) the armed forces of any current or
former ally of the Commonwealth.
30
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84. Friendly societies
(1) Land is exempt land if it is owned by, or held in
trust for, a friendly society.
(2) Despite sub-section (1), land or a part of land
referred to in that sub-section is not exempt land if
5
the land or part is--
(a) used for banking or insurance purposes; or
(b) leased or occupied for any other business
purposes by a person or body other than--
(i) a friendly society; or
10
(ii) a person or body referred to in
section 72(1), 80(1), 81(1) or 83(1).
(3) Sub-section (2) does not apply to land or part of
land that is leased or occupied under or in
accordance with an arrangement made with a
15
municipal council for the purpose of promoting or
assisting a decentralised industry.
85. Land used for agricultural shows or farm field
machinery days
Land is exempt land if--
20
(a) it is owned by, or held in trust for, a body
(whether incorporated or not) established to
conduct agricultural shows, farm field
machinery days or similar activities where
the activities are not carried on for the
25
purpose of profit or gain to the members of
the body; and
(b) it is used for the purposes of the body.
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86. Mines
(1) Land is exempt land if the Commissioner
determines that it is used exclusively as a mine.
(2) To obtain an exemption from land tax under this
section, the owner of the land must--
5
(a) apply to the Commissioner for the
exemption; and
(b) give the Commissioner any information the
Commissioner requests for the purpose of
enabling the Commissioner to determine
10
whether the land is exempt under this
section.
(3) In this section, "mine" means--
(a) any land covered by a mining licence issued
under the Mineral Resources Development
15
Act 1990; or
(b) any land in the Latrobe area within the
meaning of the Electricity Industry
(Residual Provisions) Act 1993 where a
generation company or other body authorised
20
under that Act mines coal for use in the
generation of electricity.
(4) Despite sub-section (3), the surface of any land is
not at any time a mine unless at that time it is--
(a) occupied by or used for shafts or approaches
25
to shafts, or occupied by buildings enclosing
or covering those shafts or approaches; or
(b) used for the storage of debris or mining
machinery.
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Division 8--Exemptions from Land Tax on Transmission
Easements
87. Governor in Council may exempt
(1) The Governor in Council, on the recommendation
of the Treasurer, may by Order published in the
5
Government Gazette exempt--
(a) a transmission easement holder from liability
to pay land tax on the transmission easement;
or
(b) a transmission easement from land tax.
10
(2) In considering whether to recommend an
exemption under sub-section (1), the Treasurer
may have regard to--
(a) the need to promote the economic
development of Victoria;
15
(b) the need to promote and not hinder the
development of energy infrastructure in
Victoria;
(c) any other factor that the Treasurer considers
is appropriate.
20
88. Dispositions of transmission easements
(1) A disposition of a transmission easement by a
transmission easement holder, whether made
before, on or after the commencement of this
section, is not effective to exempt the transmission
25
easement holder from any land tax that would
have become payable on the easement had the
disposition not taken place if, following the
disposition, the easement continues to be, or may
be, used by the transmission easement holder.
30
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(2) If the Commissioner is satisfied, having regard
to--
(a) the nature of the easement that is disposed
of;
(b) any other matters the Commissioner
5
considers relevant--
that a transmission easement holder should not
pay any tax in respect of that easement that may
become payable by reason of sub-section (1), the
Commissioner may exempt that transmission
10
easement holder from tax payable under this Part.
(3) In this section, "disposition" includes disposition
by way of conveyance, transfer, settlement,
declaration of trust or any other method.
__________________
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Part 5--Relief from or Postponement of Land Tax
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PART 5--RELIEF FROM OR POSTPONEMENT OF LAND
TAX
Division 1--Preliminary
89. Definition
In this Part, "Board" means the Land Tax
5
Hardship Relief Board referred to in section 95.
90. Arrangements for payment of tax
Nothing in this Part limits the operation of
section 49 of the Taxation Administration Act
1997.
10
Division 2--Relief
91. Taxpayer may apply for relief
(1) A taxpayer may apply for relief from the liability
to pay land tax on one of the following grounds--
(a) if the taxpayer is a natural person--
15
(i) the taxpayer has suffered such a loss, or
is in such circumstances, that payment
of the full amount of the land tax would
cause serious hardship; or
(ii) the taxpayer has died and his or her
20
dependants are in such circumstances
that payment of the full amount of the
land tax would cause serious hardship;
(b) if the taxpayer is a company, persons holding
more than 60% of the issued share capital of
25
the company are in such circumstances that
payment of the full amount of the land tax
would cause serious hardship.
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(2) An application for relief must--
(a) be in writing; and
(b) be made to--
(i) the Commissioner, if the land tax
assessed for the applicant taxpayer for
5
or in a tax year does not exceed $1000;
or
(ii) the Board, if the land tax assessed for
the applicant taxpayer for or in a tax
year exceeds $1000; and
10
(c) be made within--
(i) one month after notice of assessment of
the land tax has been given to the
taxpayer; or
(ii) a further time allowed by the
15
Commissioner or the Board, as the case
requires.
(3) For the purposes of this section, a reference to the
issued share capital of a company does not include
a reference to any part of it that carries no right to
20
participate beyond a specified amount in a
distribution of either profits or capital.
92. Relief granted by the Commissioner
(1) The Commissioner may grant relief from the
liability to pay land tax to a taxpayer on
25
application under section 91 if the Commissioner
is satisfied that the grounds for the application are
made out.
(2) Before granting relief, the Commissioner must
obtain the approval of the Treasurer.
30
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(3) In granting relief, the Commissioner may--
(a) waive the payment of the land tax either
wholly or in part;
(b) make a reassessment of the land tax;
(c) impose any conditions on the grant of relief
5
that he or she considers appropriate.
93. Relief granted by the Board
(1) The Board may grant relief from the liability to
pay land tax to a taxpayer on application under
section 91 if the Board is satisfied that the grounds
10
for the application are made out.
(2) If the Board decides to grant relief, it may direct
the Commissioner to make a reassessment of the
land tax and--
(a) postpone the payment of the land tax either
15
wholly or in part until whichever of the
following occurs first--
(i) the date the land is sold;
(ii) the expiration of a specified period of
up to 5 years from the date the taxpayer
20
applies for relief; or
(b) waive the payment of the land tax either
wholly or in part.
(3) The Board may grant relief subject to any
conditions that the Board considers appropriate.
25
94. Reconsideration of postponed land tax
(1) This section applies if the Board directs the
Commissioner to postpone the payment of land
tax under section 93(2)(a).
(2) The Board must reconsider the application for
30
relief as soon as convenient after the date to which
the payment of the land tax was postponed.
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(3) If, at the time of reconsideration, the Board is
satisfied that the grounds for the application are
still made out in relation to the amount of land tax
postponed, the Board may direct the
Commissioner to--
5
(a) waive the payment of the postponed amount
of land tax either wholly or in part; and
(b) make a reassessment of the land tax.
Division 3--Land Tax Hardship Relief Board
95. Establishment and procedure
10
(1) There is to be a Land Tax Hardship Relief Board.
(2) The Board consists of the following 3 members--
(a) the Secretary to the Department of Treasury
and Finance or his or her nominee;
(b) the Commissioner or his or her nominee;
15
(c) a person selected by the Commissioner or his
or her nominee from a panel of 3 persons
appointed by the Governor in Council on the
recommendation of the Minister.
(3) Before making a recommendation under sub-
20
section (2)(c), the Minister must consult with
organisations that, in the Minister's opinion,
represent persons engaged in the practice of law
or accountancy or the valuation of land.
(4) The Board may regulate its proceedings as it
25
thinks fit.
__________________
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Part 6--Security, Recovery and Enforcement
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PART 6--SECURITY, RECOVERY AND ENFORCEMENT
Division 1--Security for Land Tax
96. Land tax is a first charge on land
(1) Unpaid land tax (including special land tax) is a
first charge on the land on which the tax is
5
payable.
(2) The charge has priority over all other
encumbrances to which the land is subject.
(3) Sub-sections (1) and (2) do not apply to--
(a) land tax on Crown land or vested land under
10
Part 3A of the Victorian Plantations
Corporation Act 1993; or
(b) land tax on transmission easements.
(4) If a person--
(a) is a bona fide purchaser for value of land;
15
and
(b) obtains a certificate from the Commissioner
under section 105 in respect of the land--
the charge does not secure any amount of land tax
on the land in excess of the amount set out in the
20
certificate.
97. Registration of charge
(1) The Commissioner may register a charge on land
under section 96(1) by depositing with the
Registrar of Titles a certificate describing the land
25
charged and stating that there is unpaid land tax in
respect of the land.
(2) The Registrar of Titles must, without charge,
make a recording of the certificate in the Register.
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Act No.
Part 6--Security, Recovery and Enforcement
s. 98
(3) When the tax is paid, the Commissioner may
request the Registrar of Titles--
(a) to remove or delete the charge; or
(b) to make a recording in the Register of the
discharge of the charge.
5
(4) The Registrar of Titles must, without charge,
comply with a request made by the Commissioner
under sub-section (3).
Division 2--Recovery of Land Tax
98. Recovery from lessee, mortgagee or occupier
10
(1) If a tax default occurs in relation to land tax, the
Commissioner may require a lessee, mortgagee or
occupier of the land to pay land tax that is payable
but remains unpaid.
(2) The Commissioner's requirement is to be made by
15
notice in writing.
(3) A copy of the notice must be served on the
taxpayer.
(4) The tax must be paid to the Commissioner on
receipt of the notice or by the date specified in the
20
notice, whichever is the later.
(5) Section 45 of the Taxation Administration Act
1997 applies to tax payable under this section as if
the person required to pay the tax were the
taxpayer.
25
(6) A person who pays an amount of tax under this
section is entitled to recover that amount from the
taxpayer as a debt, or to set off the amount against
any money owing to the taxpayer.
(7) If a mortgagee pays an amount of tax under this
30
section, the amount is deemed to be secured by
the mortgage in addition to any other amount
secured by it.
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s. 99
(8) This section does not apply to land tax on
transmission easements.
Note: General provisions for the recovery of land tax can be
found in Part 7 of the Taxation Administration Act 1997.
Division 3--Prohibition on Passing On Land Tax
5
99. Prohibition on passing on land tax
(1) A provision in a residential tenancy agreement
entered into on or after 1 January 1998 to the
effect that the tenant is liable to pay, or to
reimburse the landlord in respect of, any land tax
10
payable by the landlord in respect of the rented
premises is void.
(2) In this section--
"residential tenancy agreement" means an
agreement, whether or not in writing and
15
whether express or implied, under which a
person lets premises as a residence.
100. Prohibition on passing on land tax on transmission
easements
(1) A provision in an agreement to the effect that the
20
owner of land encumbered by a transmission
easement is liable, as owner, to pay, or to
reimburse the transmission easement holder in
respect of, any land tax on any transmission
easement that is payable by the transmission
25
easement holder is void.
(2) This section applies to an agreement of the kind
referred to in sub-section (1) entered into before,
on or after the commencement of this section.
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Part 6--Security, Recovery and Enforcement
s. 101
Division 4--Tax Avoidance Schemes
101. What is a tax avoidance scheme?
(1) For the purposes of this Division, a "tax
avoidance scheme" is a scheme--
(a) under or in connection with which a person
5
has obtained a reduction in, or exemption
from, land tax; and
(b) in respect of which, having regard to any one
or more of the matters referred to in sub-
section (2), it would be concluded that a
10
person, or one of the persons, who
participated in the scheme did so for the
purpose of enabling a person to obtain a
reduction in, or exemption from, land tax
under or in connection with the scheme.
15
(2) The factors that may be considered for the
purposes of sub-section (1)(b) are--
(a) the manner in which the scheme was entered
into or carried out;
(b) the form and substance of the scheme;
20
(c) the time at which the scheme was entered
into and the length of the period during
which the scheme was carried out;
(d) the result in relation to the operation of this
Division that, but for section 102, would
25
have been achieved by the scheme;
(e) any change in the financial position of any
person that has resulted, will result or may
reasonably be expected to result from the
scheme;
30
(f) any other consequence for the person, or for
any other person referred to in paragraph (e),
of the scheme having been entered into and
carried out;
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(g) the nature of any connection (whether of a
business, family or other nature) between the
person and any other person referred to in
paragraph (e).
(3) A reference in sub-section (1) to a scheme being
5
carried out by a person for a particular purpose
includes a reference to the scheme being entered
into or carried out by the person for 2 or more
purposes of which that particular purpose is the
main purpose.
10
(4) This section applies to a scheme--
(a) whenever entered into; and
(b) whether the scheme has been or is entered
into or carried out in or outside Victoria or
partly in and partly outside Victoria
15
(5) In this section--
"scheme" includes the whole or any part of--
(a) a contract, agreement, arrangement,
understanding, promise or undertaking
(including all steps and transactions by
20
which it is carried into effect)--
(i) whether made or entered into
orally or in writing;
(ii) whether express or implied;
(iii) whether or not enforceable; or
25
(b) a plan, proposal, action, course of
action or course of conduct, whether or
not unilateral; or
(c) a trust.
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s. 102
102. Anti-avoidance provision
If the Commissioner considers that a person has
participated in a tax avoidance scheme, the
Commissioner may--
(a) disregard the scheme; and
5
(b) determine what land tax would have been
payable but for the scheme; and
(c) make an assessment or reassessment under
the Taxation Administration Act 1997 of
the tax liability of the person or any other
10
person to give effect to that determination.
__________________
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Act No.
Part 7--General
s. 103
PART 7--GENERAL
Division 1--Notices of Acquisition and Land Tax
Certificates
103. Notice of acquisition of land
(1) A person who acquires land must give notice of
5
the acquisition--
(a) to prescribed persons; and
(b) within a prescribed period.
(2) The notice must--
(a) contain the prescribed information; and
10
(b) be in the prescribed form (if any); and
(c) be given in the prescribed manner.
(3) Any information contained in a notice under this
section may be disclosed to the Valuer-General.
104. Notice of acquisition of transmission easement
15
(1) A transmission easement holder must, in relation
to any transmission easement acquired by them,
give notice--
(a) to prescribed persons; and
(b) within a prescribed period.
20
(2) The notice must--
(a) contain the prescribed information; and
(b) be in the prescribed form (if any); and
(c) be given in the prescribed manner.
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(3) For the purposes of sub-section (1), a transmission
easement is taken to be acquired if it is granted to,
reserved in favour of, created by statute in favour
of or vested by statute in the transmission
easement holder.
5
(4) Sub-section (3) does not limit the ways in which a
transmission easement may be acquired.
105. Land tax certificates
(1) An owner, purchaser or mortgagee of land may
apply to the Commissioner for a certificate under
10
this section.
(2) An application must be accompanied by the
prescribed fee.
(3) If an application is duly made, the Commissioner
must issue a certificate showing if there is any
15
land tax due and unpaid on the land described in
the application.
(4) The Commissioner may include any other
information in the certificate that he or she thinks
appropriate.
20
Division 2--General
106. Stating case to Supreme Court
(1) The Commissioner may state a case for the
opinion of the Supreme Court on any question of
law that arises with regard to any matter under this
25
Act.
(2) The Supreme Court may give its judgment on the
case stated and make any orders, including orders
for costs, the Court thinks fit.
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s. 107
107. Regulations
(1) The Governor in Council may make regulations
for or with respect to any matter or thing that is
required or permitted to be prescribed or
necessary to be prescribed to give effect to this
5
Act.
(2) Regulations made under this Act--
(a) may be of general or limited application; and
(b) may differ according to differences in time,
place or circumstances.
10
__________________
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Act No.
Part 8--Amendment of Taxation Administration Act 1997
s. 108
PART 8--AMENDMENT OF TAXATION ADMINISTRATION
ACT 1997
See:
108. Land tax comes under the Act Act No.
40/1997.
After section 4(c) of the Taxation Reprint No. 2
Administration Act 1997 insert--
5 as at
13 September
"(ca) Land Tax Act 2005 and regulations made 2001
and
under that Act;". amending
Act Nos
79/2001,
113/2003,
46/2004,
108/2004 and
36/2005.
LawToday:
www.dms.
dpc.vic.
gov.au
109. Refunds of land tax
After section 19(2) of the Taxation
Administration Act 1997 insert--
10
"(2A) Sub-section (2) does not apply to an
application for a refund of tax paid or
purportedly paid under the Land Tax Act
2005.".
110. Disclosure of information
15
(1) In section 92 of the Taxation Administration
Act 1997--
(a) for paragraph (e)(va) substitute--
"(va) the Director of Consumer Affairs
Victoria; or";
20
(b) in paragraph (e)(vii), for "section."
substitute "section; or";
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Part 8--Amendment of Taxation Administration Act 1997
s. 111
(c) after paragraph (e) insert--
"(f) in connection with the operation of
Landata, in the case of information
obtained under or in relation to the
administration of the Land Tax Act
5
2005.".
(2) At the end of section 92 of the Taxation
Administration Act 1997 insert--
'(2) In this section--
"Landata" means the integrated
10
computerised information retrieval and
property enquiry service relating to
information in respect of Victorian
land, its ownership and use.'.
111. Objection to valuation of Valuer-General
15
(1) After section 96(1)(c) of the Taxation
Administration Act 1997 insert--
"(ca) a valuation by the Valuer-General that is
used by the Commissioner in an assessment
of land tax; or".
20
(2) After section 97(2) of the Taxation
Administration Act 1997 insert--
"(3) A taxpayer cannot object to an assessment of
land tax on any ground relating to the value
of the land if the assessment is based on a
25
valuation made by a rating authority under
the Valuation of Land Act 1960.
(4) Nothing in sub-section (3) limits or affects
the right of any person to object to a
valuation in accordance with Part III of the
30
Valuation of Land Act 1960.
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Act No.
Part 8--Amendment of Taxation Administration Act 1997
s. 112
(5) For the avoidance of doubt, a taxpayer
cannot object to an indexation factor
prescribed for the purposes of section 20 of
the Land Tax Act 2005.".
112. Objections to value of land
5
After section 100A(2) of the Taxation
Administration Act 1997 insert--
"(3) Sub-section (1) does not apply to an
objection to an assessment of land tax or an
objection referred to in section 96(1)(ca),
10
however, the Commissioner must consult the
Valuer-General before determining an
objection referred to in section 96(1)(ca).".
113. Review by VCAT
After section 111(2) of the Taxation
15
Administration Act 1997 insert--
"(3) If the matter under review relates to a
valuation by the Valuer-General used by the
Commissioner in an assessment of land tax,
the Tribunal has the same powers with
20
respect to that matter as it has in a review
under Part III of the Valuation of Land Act
1960 and the provisions of that Part, with
any necessary modifications, apply
accordingly.
25
(4) The powers of the Tribunal under sub-
section (3) are in addition to its powers and
functions under this Act and the Victorian
Civil and Administrative Tribunal Act
1998.".
30
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Act No.
Part 8--Amendment of Taxation Administration Act 1997
s. 114
114. New section 129 substituted
For section 129 of the Taxation Administration
Act 1997 substitute--
"129. Copies of and extracts from certain
documents
5
A document signed by the Commissioner
purporting to be a copy of, or an extract
from, any of the following is admissible in
proceedings under a taxation law without
production of the original--
10
(a) a return lodged with the Commissioner;
(b) a document issued by the
Commissioner;
(c) a notice given under section 103 or 104
of the Land Tax Act 2005.".
15
115. Supreme Court--limitation of jurisdiction
After section 135(2) of the Taxation
Administration Act 1997 insert--
"(3) It is the intention of sections 5, 12(4), 18(1),
96(2) and 100(4), as they apply on and after
20
the commencement of section 115 of the
Land Tax Act 2005, to alter or vary
section 85 of the Constitution Act 1975.".
__________________
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Act No.
Part 9--Further Amendments, Repeals and Transitional Provisions
s. 116
PART 9--FURTHER AMENDMENTS, REPEALS AND
TRANSITIONAL PROVISIONS
116. Repeal of Land Tax Act 1958
The Land Tax Act 1958 is repealed.
117. Consequential amendments
5
An Act referred to in the heading to an item in
Schedule 2 is amended as set out in that item.
118. Transitional provisions
Schedule 3, which contains transitional
provisions, has effect.
10
__________________
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Sch. 1
SCHEDULES
SCHEDULE 1
Sections 35(1), 36(3), 37(3)
LAND TAX RATES
PART 1--GENERAL RATES OF LAND TAX
5
1.1 Land tax for 2006
The rate of land tax for 2006 is set out in Table 1.1.
TABLE 1.1
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02% of the
taxable value that
exceeds $200 000
3. 540 000 900 000 $880 and 05% of the
taxable value that
exceeds $540 000
$2680 and 1% of the
4. 900 000 1 190 000
taxable value that
exceeds $900 000
5. 1 190 000 1 620 000 $5580 and 15% of the
taxable value that
exceeds $1 190 000
6. 1 620 000 2 700 000 $12 030 and 225% of
the taxable value that
exceeds $1 620 000
7. 2 700 000 $36 330 and 35% of
the taxable value that
exceeds $2 700 000
Note: Clause 5 of Schedule 3 has transitional provisions
10 capping certain land tax increases in 2006.
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Act No.
Sch. 1
1.2 Land tax for 2007
The rate of land tax for 2007 is set out in Table 1.2.
TABLE 1.2
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02% of the
taxable value that
exceeds $200 000
3. 540 000 900 000 $880 and 05% of the
taxable value that
exceeds $540 000
4. 900 000 1 190 000 $2680 and 1% of the
taxable value that
exceeds $900 000
5. 1 190 000 1 620 000 $5580 and 15% of the
taxable value that
exceeds $1 190 000
6. 1 620 000 2 700 000 $12 030 and 225% of
the taxable value that
exceeds $1 620 000
7. 2 700 000 $36 330 and 325% of
the taxable value that
exceeds $2 700 000
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Act No.
Sch. 1
1.3 Land tax for 2008 and subsequent years
The rate of land tax for 2008 and each subsequent year is set
out in Table 1.3.
TABLE 1.3
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02% of the
taxable value that
exceeds $200 000
3. 540 000 900 000 $880 and 05% of the
taxable value that
exceeds $540 000
4. 900 000 1 190 000 $2680 and 1% of the
taxable value that
exceeds $900 000
5. 1 190 000 1 620 000 $5580 and 15% of the
taxable value that
exceeds $1 190 000
6. 1 620 000 2 700 000 $12 030 and 225% of
the taxable value that
exceeds $1 620 000
7. 2 700 000 $36 330 and 3% of the
taxable value that
exceeds $2 700 000
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Act No.
Sch. 1
PART 2--RATE OF LAND TAX ON TRANSMISSION
EASEMENTS
2.1 Rate of land tax on transmission easements
The rate of land tax on transmission easements is set out in
5 Table 2.1.
TABLE 2.1
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 150 000 Nil
2. 150 000 200 000 $150 and 01% of the
taxable value that
exceeds $150 000
3. 200 000 540 000 $200 and 02% of the
taxable value that
exceeds $200 000
4. 540 000 675 000 $880 and 05% of the
taxable value that
exceeds $540 000
5. 675 000 810 000 $1555 and 1% of the
taxable value that
exceeds $675 000
6. 810 000 1 080 000 $2905 and 175% of
the taxable value that
exceeds $810 000
7. 1 080 000 1 620 000 $7630 and 275% of
the taxable value that
exceeds $1 080 000
8. 1 620 000 2 700 000 $22 480 and 3% of the
taxable value that
exceeds $1 620 000
9. 2 700 000 $54 880 and 5% of the
taxable value that
exceeds $2 700 000
__________________
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Act No.
Sch. 2
SCHEDULE 2
Section 117
CONSEQUENTIAL AMENDMENTS
1. Duties Act 2000
5 1.1 In sections 24(2A)(a)(i), 56(1)(a) and 56(3)(c), for
"section 9(1)(ga), (h) or (ha) of the Land Tax Act 1958"
substitute "section 65, 66 or 67 of the Land Tax Act
2005".
1.2 For section 249(2) substitute--
10 "(2) In this section--
"tax" means tax within the meaning of the Taxation
Administration Act 1997.".
2. Evidence (Commissions) Act 1982
Section 4(1)(a) is repealed.
15 3. Heritage Act 1995
In section 144(2)(a), for "Land Tax Act 1958" substitute
"Land Tax Act 2005".
4. Property Law Act 1958
In clause 9 of the Third Schedule, for "Land Tax Act
20 1958" substitute "Land Tax Act 2005".
5. Retail Leases Act 2003
In sections 50 and 121(2)(b), for "Land Tax Act 1958"
substitute "Land Tax Act 2005".
6. South Yarra Project (Subdivision and Management) Act 1985
25 In section 19(2)(c), for "Land Tax Act 1958" substitute
"Land Tax Act 2005".
7. Subordinate Legislation Act 1994
In section 8(1)(c), for "section 3(2)(ab)(ii) of the Land Tax
Act 1958" substitute "section 20 of the Land Tax Act
30 2005".
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Act No.
Sch. 2
8. Taxation (Reciprocal Powers) Act 1987
In section 3(1), for paragraph (a) of the definition of "State
Taxation Act" substitute--
"(a) Land Tax Act 2005;".
5 9. Transfer of Land Act 1958
In clause 9 of the Seventh Schedule, for "Land Tax Act
1958" substitute "Land Tax Act 2005".
10. Valuation of Land Act 1960
10.1 In section 2(1), in the definitions of "transmission easement"
10 and "transition easement holder", for "Land Tax Act 1958"
substitute "Land Tax Act 2005".
10.2 In section 5B--
(a) in sub-section (1), for "Part IIB of the Land Tax Act
1958" substitute "Division 4 of Part 2 of the Land
15 Tax Act 2005";
(b) in sub-section (2), for "under Part IIB of the Land
Tax Act 1958" substitute "imposed under Division 4
of Part 2 of the Land Tax Act 2005";
(c) in sub-section (3)(a), for "under section 13P(1)(a) of
20 the Land Tax Act 1958" substitute "under section
87(1)(a) of the Land Tax Act 2005";
(d) in sub-section (3)(b), for "under section 13P(1)(b) of
the Land Tax Act 1958" substitute "under section
87(1)(b) of the Land Tax Act 2005".
25 10.3 In section 14, in the definition of "relevant taxpayer", for
"Land Tax Act 1958" substitute "Land Tax Act 2005".
10.4 In section 15A, for "tax the Commissioner intends to assess,
charge, levy and collect under Part IIB of the Land Tax Act
1958," substitute "land tax payable under Division 4 of
30 Part 2 of the Land Tax Act 2005,".
10.5 In section 18(1), for "Land Tax Act 1958" substitute
"Land Tax Act 2005".
10.6 Section 20 is repealed.
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Act No.
Sch. 2
11. Victorian Civil and Administrative Tribunal Act 1998
In clause 2 of Schedule 1, for paragraph (e) of the definition
of "taxing Act" substitute--
"(e) Land Tax Act 2005;".
__________________
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Act No.
Sch. 3
SCHEDULE 3
Section 118
TRANSITIONAL PROVISIONS
1. Definitions
5 In this Schedule--
"commencement day" means 1 January 2006;
"old Act" means the Land Tax Act 1958 as in force
immediately before the commencement day.
2. Savings and transitional regulations
10 The regulations may contain provisions of a savings and
transitional nature consequent on the enactment of this Act.
3. Application of Interpretation of Legislation Act 1984
Except where the contrary intention appears, this Schedule
does not affect or take away from the Interpretation of
15 Legislation Act 1984.
4. Continuation of old Act and regulations
If a provision of the old Act continues to apply by force of
this Schedule, the following provisions also continue to
apply in relation to that provision--
20 (a) any other provision of the old Act necessary to give
effect to that continued provision; and
(b) any regulation made under the old Act for the
purposes of that continued provision.
5. Land tax capping for 2006
25 If, under clause 7.2 of the Second Schedule to the old Act,
the duty of land tax payable for 2006 on the land of an
owner would be a different amount from the amount of land
tax payable under this Act as calculated by applying the
rates in Table 1.1 in Schedule 1, the land tax payable under
30 this Act on the land for 2006 is the amount calculated in
accordance with clause 7.2 of the Second Schedule to the
old Act.
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Act No.
Sch. 3
6. Application of this Act and old Act
(1) This Act applies to land tax for the 2006 tax year and each
subsequent tax year.
(2) Despite its repeal, the old Act continues to apply to land tax
5 for or in any tax year prior to 2006.
7. Saving of exemption in respect of decentralised industries
(1) This clause applies to any land or part of land that was
exempt from land tax under the old Act immediately before
the commencement day because it was leased or occupied
10 under or in accordance with an arrangement made by the
Victorian Development Corporation or by a municipal
council to promote or assist a decentralised industry.
(2) On and after the commencement day, the land or part of land
is taken to be exempt land for as long as it continues to be
15 leased or occupied under or in accordance with an
arrangement made by the Victorian Development
Corporation or by a municipal council to promote or assist a
decentralised industry.
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Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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