Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 38

Assessment of joint owners of land

38. Assessment of joint owners of land



(1) Joint owners of taxable land are to be assessed for 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

   (b)  any other land owned by any joint owner (either alone or jointly with
        someone else).

(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

   (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 for a joint owner under
subsection (3) an amount (if any) necessary to avoid double taxation, being
the lesser of-

   (a)  the amount determined by the formula-

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 on the jointly-owned land under
subsection (2); and

   (b)  the amount determined by the formula-

where-
C is the value of the joint owner's individual interest in the jointly-owned
land (as determined under subsection (3)(a));
D is the total value of all taxable land of the joint owner assessed under
subsection (3);
E is the amount of land tax assessed under subsection (3).

(5) For the purposes of this section a joint owner may be separately assessed
under subsection (3) in respect of land even though no land tax is jointly
assessable in respect of that land under subsection (2).

(6) If a joint owner of land is a trustee of a trust to which the land is
subject, no regard is to be had to the existence of the trust in relation to
the joint assessment of the joint owners of the land as referred to in
subsection (2), but regard is to be had to the existence of the trust in
relation to the separate assessment of the joint owners as referred to in
subsection (3).