Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 61

Unoccupied land subsequently used as principal residence

61. Unoccupied land subsequently used as principal residence



(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 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.





(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-

   (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 the end of the next
        following year.

(3) If-

   (a)  an owner or trustee is entitled under subsection (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 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 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 subsection (3) to a refund of
        land tax in respect of the first year preceding the tax year referred
        to in that subsection (the first year) in respect of land; and

   (b)  the owner or trustee was assessed for and 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 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 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.

(5) Subsections (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.

(6) For the purposes of calculating the amount of a refund under this section,
the land referred to in subsection (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.

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 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 subsection
(1) will be calculated as if the block had been exempt from land tax for 2005.
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.