LAND TAX ACT 2005 - SECT 46G Land tax for discretionary trust with nominated beneficiary
LAND TAX ACT 2005 - SECT 46G
Land tax for discretionary trust with nominated beneficiary(1) This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 46F.
S. 46G(2) amended by No. 22/2021 s. 28(1).
(2) The nominated beneficiary is deemed, for the purposes of this Act (other than Division 1 of Part 4) but for no other purpose, to be the owner (but not to the exclusion of the trustee) of the pre‑2006 land subject to the trust, other than land for which a nomination under section 46H is in force, and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the nominated beneficiary.
Note
The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
(3) The trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—
S. 46G(3)(a) amended by No. 22/2021 s. 28(2).
(a) in respect of any pre-2006 land, other than land for which a nomination under section 46H is in force—at the applicable rate set out in Part 1 of Schedule 1; and
S. 46G(3)(b) amended by No. 22/2021 s. 28(2).
(b) in respect of any post-2006 land, other than land for which a nomination under section 46H is in force—at the applicable rate set out in Part 3 of Schedule 1.
S. 46G(4) amended by Nos 22/2021 s. 28(3), 52/2021 s. 64(2).
(4) For the purposes of subsection (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula—
where—
L is the land tax assessed for the trustee;
R 1 is the applicable rate of land tax set out in Part 1 of Schedule 1;
R 2 is the applicable rate of land tax set out in Part 3 of Schedule 1;
T is the total taxable value of all taxable land subject to the trust, other than land for which a nomination under section 46H is in force;
A is the total taxable value of the pre‑2006 land subject to the trust, other than land for which a nomination under section 46H is in force;
B is the total taxable value of the post‑2006 land subject to the trust, other than land for which a nomination under section 46H is in force.
(5) There is to be deducted from any land tax payable by the nominated beneficiary under subsection (2) any land tax payable by the trustee under subsection (3) in respect of pre-2006 land.
S. 46G(5A) inserted by No. 38/2023 s. 39.
(5A) If the trust also has a nomination in force under section 46H, there is to be added to the land tax payable by the trustee under subsection (3) on the whole of the land subject to the trust the amount (if any) determined by applying the applicable rate in Part 6 of Schedule 1 to the total taxable value of the land.
(6) Subsection (2) does not apply if the nominated beneficiary is the trustee.
S. 46H inserted by No. 85/2005 s. 27.