Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 67

Exemption of primary production land in an urban zone in greater Melbourne

67. Exemption of primary production land in an urban zone in greater Melbourne



(1) Land is exempt land if the Commissioner 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

   (iii) used solely or primarily for the business of primary production; and

   (b)  the owner of the land is a person specified in subsection (2).

(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

   (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 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 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 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 subsection (2)(b)(ii), the 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

   (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 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

   (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 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.

(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; 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-

the owners are deemed, for the purposes of subsection (2), to be normally so
engaged.

(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

   (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 engaged); and

   (c)  no other person is normally so engaged on that land-

the owner is deemed, for the purposes of subsection (2), to be normally so
engaged.



(6) For the purposes of this section-

   (a)  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;

   (b)  a reference to an owner of land does not include a reference to a
        beneficiary of a trust or a unitholder in a unit trust scheme to which
        the land is subject.