LAND TAX ACT 2005 - SECT 46IF Land tax for PPR land if nominated PPR beneficiary

LAND TAX ACT 2005 - SECT 46IF

    (1)     This section applies if a nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary trust that is an absentee trust is in force under section 46H.

S. 46IF(2) amended by No. 67/2017 s. 20(1).

    (2)     The trustee of a unit trust scheme (other than a scheme that is in a chain of trusts) or discretionary trust is to be assessed for land tax on land subject to the scheme or trust—

        (a)     if that land that is used and occupied as the principal place of residence of the nominated PPR beneficiary—

              (i)     as if the land were the only land owned by the trustee; and

              (ii)     at the applicable rate set out in Part 4 of Schedule 1; or

        (b)     if that land that is not used and occupied as the principal place of residence of the nominated PPR beneficiary, at the applicable rate set out in Part 5 of Schedule 1.

S. 46IF(2A) inserted by No. 67/2017 s. 20(2).

    (2A)     The trustee of a unit trust scheme that is in a chain of trusts is to be assessed for land tax on land subject to the scheme—

        (a)     if that land is used and occupied as the principal place of residence of the nominated PPR beneficiary—

              (i)     as if the land were the only land owned by the trustee; and

S. 46IF(2A) (a)(ii) amended by Nos 17/2019 s. 41, 18/2023 s. 31.

              (ii)     using the formula—

where—

    A     is the amount of assessed land tax that is payable;

    B     is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee);

    C     is the absentee proportion of interests in all the land subject to the scheme;

    D     is the taxable value of all land subject to the scheme; or

S. 46IF(2A)(b) amended by Nos 17/2019 s. 41, 18/2023 s. 31.

        (b)     if that land is not used and occupied as the principal place of residence of the nominated PPR beneficiary, using the formula—

where—

    A     is the amount of assessed land tax that is payable;

    B     is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee);

    C     is the absentee proportion of interests in all the land subject to the scheme;

    D     is the taxable value of all land subject to the scheme.

S. 46IF(2B) inserted by No. 47/2020 s. 46(1).

    (2B)     For the purposes of subsections (2) and (2A), land is not taken to be occupied as a place of residence unless there is a building affixed to the land (including a home 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.

S. 46IF(3) amended by No. 67/2017 s. 20(3).

    (3)     Subsection (2)(a) or (2A)(a) applies only if the land has been used and occupied as the principal place of residence of the nominated PPR beneficiary—

        (a)     since 1 July in the year preceding the tax year in which the nomination for that PPR beneficiary is lodged under section 46H; or

        (b)     if the trustee became owner of the land on or after 1 July in the year preceding the tax year in which the nomination for that PPR beneficiary is lodged under section 46H, since a later date during that year.

S. 46IF(4) amended by No. 67/2017 s. 20(4), substituted by No. 47/2020 s. 46(2).

    (4)     Subsection (2)(a) or (2A)(a) does not apply if—

        (a)     rent is paid by or on behalf of the nominated PPR beneficiary for use and occupation of the land in the year preceding the tax year; or

        (b)     the land contains a separate residence used to derive income from the land in the year preceding the tax year; or

        (c)     the land is used to carry on a substantial business activity in the year preceding the tax year.

    (5)     In determining whether land is used by a person to carry on a substantial business activity, account must be taken of the factors referred to in section 62(2).

Pt 3 Div. 2AC (Heading) inserted by No. 26/2015 s. 33.

Division 2AC—Miscellaneous trust land provisions

S. 46J inserted by No. 85/2005 s. 27, amended by No. 26/2015 s. 34.