Land Tax Act 2005

i Land Tax Act 2005 Act No. 88/2005 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purposes 1 2. Commencement 2 3. Definitions 2 4. Transmission easement holders 7 5. Taxation Administration Act 1997 8 6. Act binds the Crown 9 PART 2—IMPOSITION OF LAND TAX 10 Division 1—Imposition of Land Tax 10 7. General imposition of land tax 10 8. Who is liable for land tax? 10 9. When must land tax be paid? 10 Division 2—Owners of Land 10 10. Who is the owner of land? 10 11. Life tenants 11 12. Home units 11 13. Person in possession of land deemed owner despite disposition of it 12 14. Purchaser of land on credit or deferred payment 12 15. Purchaser of land under contract of sale 12 16. Vendors of land 13 17. Mortgagees in possession 14 18. Equitable owners 14 Division 3—What is the Taxable Value of Land? 14 19. Taxable value of land 14 20. Prescribed indexation factors 15 21. Use of valuations 16 22. Taxable value of parts of land not separately valued 16 23. Taxable value of home units not valued separately 17 -- 1 of 112 -- Section Page ii Division 4—Land Tax on Transmission Easements 17 24. Imposition of land tax on transmission easements 17 25. Who is liable for land tax on transmission easements? 17 26. When must land tax be paid? 18 27. What is the taxable value of a transmission easement? 18 28. Agreements relating to the payment of tax 19 Division 5—Special Land Tax 20 29. Imposition of special land tax 20 30. What land is subject to special land tax? 20 31. Who is liable for special land tax? 21 32. When does a liability for special land tax arise? 21 33. When must special land tax be paid? 22 34. Deferral of special land tax in certain circumstances 22 PART 3—ASSESSMENT OF LAND TAX 23 Division 1—Rate of Land Tax 23 35. What is the rate of land tax? 23 Division 2—How is Land Tax Assessed? 23 36. Land tax assessed on aggregated basis 23 37. Certain taxable land assessed separately 24 38. Assessment of joint owners of land 24 39. Joint assessments in the case of principal place of residence land 26 40. Assessment of joint occupiers of land 27 41. Assessment of joint transmission easement holders 28 42. Assessment of owner of land on which there are home units 30 43. Mortgagees in possession of land 30 44. Trustees 31 45. Certain long-term lessees of private land 32 46. Land tax on parts of land 32 Division 3—Grouping of Related Corporations 33 47. What are "related corporations"? 33 48. What is a "controlling interest" in a corporation? 34 49. Further provisions for determining whether corporations are related corporations 34 50. Grouping of related corporations 36 Division 4—General 36 51. Reassessments 36 -- 2 of 112 -- Section Page iii PART 4—EXEMPTIONS AND CONCESSIONS 37 Division 1—Principal Place of Residence 37 52. Definitions 37 53. What is a principal place of residence? 38 54. Principal place of residence exemption 39 55. Deferral of tax on certain residential land for 6 months 40 56. Temporary absence from principal place of residence 41 57. Exemption continues on death of resident 42 58. Exemption continues if land becomes unfit for occupation 43 59. Purchase of new principal residence 44 60. Sale of old principal residence 45 61. Unoccupied land subsequently used as principal residence 46 62. Partial exemption if land used for business activities 48 63. Partial exemption or refund for trustees 50 Division 2—Primary Production Land 50 64. Definitions 50 65. Exemption of primary production land outside greater Melbourne 52 66. Exemption of primary production land in greater Melbourne but not in an urban zone 52 67. Exemption of primary production land in an urban zone in greater Melbourne 52 68. Exemption of land being prepared for use for primary production 55 69. Application for exemption under section 66, 67 or 68 56 70. Parcels of land 56 Division 3—Sporting, Recreational and Cultural Land 57 71. Land leased for sporting, recreational or cultural activities by members of the public 57 72. Sporting, recreational or cultural land owned by certain non-profit organisations 58 73. Concessional tax rate for club land 59 Division 4—Charities 60 74. Charitable institutions and purposes 60 Division 5—Accommodation 61 75. Rooming houses 61 76. Residential care facilities and supported residential services 62 77. Caravan parks 64 78. Retirement villages 64 -- 3 of 112 -- Section Page iv Division 6—Public, Government and Municipal Land 65 79. Crown land 65 80. Public statutory authorities 66 81. Municipal and public land 67 82. Application of Division 6 68 Division 7—General Exemptions 69 83. Armed services personnel 69 84. Friendly societies 70 85. Land used for agricultural shows or farm field machinery days 70 86. Mines 71 Division 8—Exemptions from Land Tax on Transmission Easements 72 87. Governor in Council may exempt 72 88. Dispositions of transmission easements 72 PART 5—RELIEF FROM OR POSTPONEMENT OF LAND TAX 74 Division 1—Preliminary 74 89. Definition 74 90. Arrangements for payment of tax 74 Division 2—Relief 74 91. Taxpayer may apply for relief 74 92. Relief granted by the Commissioner 75 93. Relief granted by the Board 76 94. Reconsideration of postponed land tax 76 Division 3—Land Tax Hardship Relief Board 77 95. Establishment and procedure 77 PART 6—SECURITY, RECOVERY AND ENFORCEMENT 78 Division 1—Security for Land Tax 78 96. Land tax is a first charge on land 78 97. Registration of charge 78 Division 2—Recovery of Land Tax 79 98. Recovery from lessee, mortgagee or occupier 79 Division 3—Prohibition on Passing On Land Tax 80 99. Prohibition on passing on land tax 80 100. Prohibition on passing on land tax on transmission easements 80 -- 4 of 112 -- Section Page v Division 4—Tax Avoidance Schemes 81 101. What is a tax avoidance scheme? 81 102. Anti-avoidance provision 83 PART 7—GENERAL 84 Division 1—Notices of Acquisition and Land Tax Certificates 84 103. Notice of acquisition of land 84 104. Notice of acquisition of transmission easement 84 105. Land tax certificates 85 Division 2—General 85 106. Stating case to Supreme Court 85 107. Regulations 86 PART 8—AMENDMENT OF TAXATION ADMINISTRATION ACT 1997 87 108. Land tax comes under the Act 87 109. Refunds of land tax 87 110. Disclosure of information 87 111. Objection to valuation of Valuer-General 88 112. Objections to value of land 89 113. Review by VCAT 89 114. New section 129 substituted 90 129. Copies of and extracts from certain documents 90 115. Supreme Court—limitation of jurisdiction 90 PART 9—FURTHER AMENDMENTS, REPEALS AND TRANSITIONAL PROVISIONS 91 116. Repeal of Land Tax Act 1958 91 117. Consequential amendments 91 118. Transitional provisions 91 __________________ SCHEDULES 92 SCHEDULE 1—Land Tax Rates 92 SCHEDULE 2—Consequential Amendments 96 SCHEDULE 3—Transitional Provisions 99 ═══════════════ ENDNOTES 101 INDEX 102 -- 5 of 112 -- 1 Land Tax Act 2005 † [Assented to 29 November 2005] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purposes The purposes of this Act are— (a) to re-enact and modernise the law relating to land tax; (b) to repeal the Land Tax Act 1958; Victoria No. 88 of 2005 -- 6 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 2 (c) to amend the Taxation Administration Act 1997 so that it will apply to the administration and enforcement of land tax; (d) to make consequential amendments to other Acts. 2. Commencement This Act comes into operation on 1 January 2006. 3. Definitions (1) In this Act— "applicable general valuation", in relation to a tax year, means the last general valuation returned to the municipal council before 1 January in the year immediately preceding the tax year; "approved" means approved by the Commissioner; "controlling interest" has the meaning given in section 48; "corporation" has the same meaning as in section 9 of the Corporations Act; "domestic partner" of a person means a person to whom the person is not married, but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender); "exempt land" means land that is declared by or under this Act to be exempt land; "exempt transmission easement" means a transmission easement that is exempt from land tax under section 87(1)(b); s. 2 -- 7 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 3 "exempt transmission easement holder" means a transmission easement holder who is exempt from land tax on the easement under section 87(1)(a); "home unit" means a building or part of a building that— (a) is designed for use as a self-contained unit for living purposes; and (b) is situated on land owned— (i) by 2 or more persons as tenants in common, each of whom is the registered proprietor under the Transfer of Land Act 1958 of one or more undivided shares in the whole of the land and is lawfully entitled, by virtue of an agreement between the person or the person's predecessor in title and all other owners of undivided shares in the land or their predecessors in title, to the exclusive right to occupy a specified building or part of a building on the land; or (ii) by a body corporate in which all issued shares are owned by 2 or more persons, each of whom is lawfully entitled, by virtue of that share ownership, to the exclusive right to occupy a specified building or part of a building on the land and is not required to make any payments of a rental nature for that right; s. 3 -- 8 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 4 "joint owners" means persons— (a) who own land jointly or in common, whether as partners or otherwise; or (b) who are deemed by this Act to be joint owners; "land" includes— (a) all land and tenements; (b) all interests in land; "mortgage" means— (a) a security by way of mortgage or charge over land; or (b) a security by way of a transfer of land held in trust to be sold and redeemable before the sale, except if the transfer is for the benefit of creditors who accept it in full satisfaction of debts owed to them; or (c) a transfer, assignment or disposition of any estate or interest in land that is apparently absolute but intended only as a security; or (d) an instrument that, on the deposit of documents of title to land, authority to control title or a pledge to provide that control, becomes a mortgage or evidences the terms of a mortgage; "owner"— (a) of land, has the meaning given in section 10; (b) of a home unit, has the meaning given in section 12; s. 3 -- 9 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 5 "parcel" of land means any land that is— (a) contiguous or separated only by a road, railway or other similar area across or around which movement is reasonably possible; and (b) owned by the same person; "principal place of residence" includes sole place of residence; "public sector superannuation authority" means a public body within the meaning of the Financial Management Act 1994 that is required to submit an annual report under Part 7 of that Act in relation to a public sector superannuation fund; "public statutory authority" means a public statutory body constituted under an Act but does not include a public sector superannuation authority; "related corporations" has the meaning given in section 47; "relative" in relation to a person means— (a) a spouse or domestic partner of the person; (b) a lineal ancestor or lineal descendant of the person or of the spouse or domestic partner of the person; (c) a brother or sister, or child of a brother or sister, of the person or of the spouse or domestic partner of the person; (d) a spouse or domestic partner of a child of the person; (e) a spouse or domestic partner of a brother or sister of the person; s. 3 -- 10 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 6 "return date", in relation to a valuation, is the date on which the valuation is returned to the municipal council by the person who carried it out; "site value" has the same meaning as in the Valuation of Land Act 1960; "special land tax" means land tax imposed under Division 5 of Part 2; "spouse" of a person means a person to whom the person is married; "subsequent general valuation", in relation to a tax year, means a general valuation returned to the municipal council after the applicable general valuation for that tax year but before 1 January in the tax year; "supplementary valuation" means a valuation made under section 13DF of the Valuation of Land Act 1960 that is supplementary to the last general valuation returned to the municipal council before 1 January in the year immediately preceding the tax year; "taxable land" means land that is not exempt land; "taxable value"— (a) of land, has the meaning given in Division 3 of Part 2; (b) of transmission easements, has the meaning given in section 27; "tax year" means a year for or in which land tax is being assessed; "transfer" of land includes conveyance of the land; "transmission company" has the same meaning as in the Electricity Industry Act 2000; s. 3 -- 11 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 7 "transmission easement" means an easement held by a transmission company; "transmission easement holder" has the meaning given in section 4; "trustee", except in Division 1 of Part 4, includes trustee, executor, administrator, guardian, liquidator and any person having or taking upon themselves the possession, administration, or control of land, income, or other property of any description affected by any express or implied trust, or having the possession, control, or management of land of a person under any legal or other disability; "Victorian Minister" means a Minister of the Crown in right of Victoria; "year" means a calendar year. (2) For the purposes of the definition of "domestic partner" in sub-section (1), in determining whether persons are domestic partners of each other, all the circumstances of their relationship are to be taken into account, including any one or more of the matters referred to in section 275(2) of the Property Law Act 1958 as may be relevant in a particular case. 4. Transmission easement holders (1) For the purposes of this Act, a "transmission easement holder" is a transmission company that holds a transmission easement. (2) A transmission company holds a transmission easement if the transmission easement has been— (a) acquired by the transmission company; or (b) granted to, or reserved in favour of, the transmission company; or s. 4 -- 12 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 8 (c) created by statute in favour of, or vested by statute in, the transmission company. (3) If a transmission company uses an easement of a related body corporate of that company— (a) that easement is, for the purposes of this Act, deemed to be a transmission easement; and (b) the transmission company is, for the purposes of this Act, deemed to be a transmission easement holder and may be assessed for tax as if it held the transmission easement. (4) If the Commissioner is satisfied that a transmission company should not be liable for land tax under Division 4 of Part 2 on an easement referred to in sub-section (3), having regard to— (a) the nature of the easement; and (b) any other matters the Commissioner considers relevant— the Commissioner may treat the easement as not being a transmission easement for the purposes of this Act. (5) In this section— "related body corporate" has the same meaning as in section 50 of the Corporations Act. 5. Taxation Administration Act 1997 This Act is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Act and other taxation laws. s. 5 -- 13 of 112 -- Part 1—Preliminary Land Tax Act 2005 Act No. 88/2005 9 6. Act binds the Crown (1) This Act binds the Crown in right of Victoria and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities. (2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence. __________________ s. 6 -- 14 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 10 PART 2—IMPOSITION OF LAND TAX Division 1—Imposition of Land Tax 7. General imposition of land tax Land tax is imposed in respect of each year on all taxable land in Victoria. Note: This Act also imposes land tax on transmission easements (see Division 4) and special land tax (see Division 5). 8. Who is liable for land tax? The owner of taxable land is liable to pay land tax on the land. 9. When must land tax be paid? The day specified in a notice of assessment of land tax must be not less than 14 days after the day the notice is served on the taxpayer. Note: Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice. Division 2—Owners of Land 10. Who is the owner of land? The following persons are owners of land for the purposes of this Act— (a) a person entitled to land for a freehold estate in possession; (b) a person entitled to land under a lease from the Crown; (c) a person entitled to land under a licence from the Crown if the person has a right, absolute or conditional, of acquiring the fee simple; s. 7 -- 15 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 11 (d) a person who is a licensee of vested land under Part 3A of the Victorian Plantations Corporation Act 1993; (e) a person deemed by this Act to be the owner of land. 11. Life tenants For the purposes of this Act, a person who holds a life estate in possession in land is deemed to be the owner of the land instead of the person entitled to the fee simple in reversion or remainder. 12. Home units (1) This section applies if there are 2 or more home units on land. (2) For the purposes of this Act, an owner of a home unit is deemed to be the owner of land having a taxable value that is the taxable value of the home unit. (3) In this section— "land" means the land on which the building or buildings of which a home unit is part is or are situated; "owner" of a home unit, means the person who is entitled to the exclusive right to occupy the home unit because he or she— (a) is the owner of an undivided share in the land on which the home unit is situated; or (b) is a shareholder in the body corporate which owns the land on which the home unit is situated. s. 11 -- 16 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 12 13. Person in possession of land deemed owner despite disposition of it (1) A person who disposes of land but retains possession of the land is deemed to be the owner of the land (but not to the exclusion of any other person) while the person retains possession. (2) In this section— "dispose" includes dispose by way of transfer, settlement, declaration of trust or any other method. 14. Purchaser of land on credit or deferred payment For the purposes of this Act, each of the following is deemed to be the owner of land— (a) a purchaser on credit or deferred payment; (b) an assignee or transferee of a purchaser on credit or deferred payment. 15. Purchaser of land under contract of sale (1) For the purposes of this Act, a purchaser under a contract of sale of land is deemed to be the owner of the land (but not to the exclusion of any other person) if the purchaser has taken possession of the land. (2) Sub-section (1) applies whether or not the contract of sale has been completed by the transfer of the land. s. 13 -- 17 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 13 16. Vendors of land (1) For the purposes of this Act, the vendor of land under a contract of sale of land is deemed to be the owner of the land (but not to the exclusion of any other person) until— (a) the purchaser has taken possession of the land; and (b) subject to sub-section (3), at least 15% of the purchase money has been paid. (2) Sub-section (1) applies whether or not the contract of sale has been completed by the transfer of the land. (3) The Commissioner may determine that the vendor is deemed not to be the owner of land despite the fact that 15% of the purchase money has not been paid if the Commissioner is satisfied that— (a) the contract of sale was made in good faith and not for the purpose of evading the payment of land tax; and (b) the contract of sale is still in force. (4) In determining the percentage of purchase money that has been paid, the following amounts must be considered to be unpaid purchase money— (a) all money owing by the purchaser to the vendor and secured by a mortgage over the land; (b) all money lent to the purchaser by the vendor; (c) all money owing by the purchaser to any other person that is directly or indirectly guaranteed by the vendor. s. 16 -- 18 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 14 (5) If the vendor and the purchaser are both deemed to be the owners of land under this Part, there is to be deducted from any land tax payable on the land by the vendor any land tax payable on the land by the purchaser. 17. Mortgagees in possession (1) A mortgagee in possession of land is deemed to be the owner of the land for the purposes of this Act, but not to the exclusion of the mortgagor or other owner of the land. Note: Section 43 sets out how land tax is to be assessed in the case of mortgagees in possession. (2) There is to be deducted from any land tax payable on land by the mortgagee in possession any land tax paid on the land by the mortgagor or other owner. 18. Equitable owners (1) A person who has an equitable interest in land (the "equitable owner") is deemed to be the owner of the land (but not to the exclusion of any other person). (2) There is to be deducted from any land tax payable on land by the equitable owner any land tax paid on the land by the legal owner. Division 3—What is the Taxable Value of Land? 19. Taxable value of land (1) The taxable value of land for a tax year is— (a) if the applicable general valuation has not been used for the purposes of assessing land tax in a previous tax year, an amount equal to the site value of the land as at the relevant date; s. 17 -- 19 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 15 (b) if the applicable general valuation has been used for the purposes of assessing land tax in a previous tax year, an amount equal to the site value of the land as at the relevant date multiplied by the prescribed indexation factor (if any) applying to the land for the tax year. (2) The "relevant date" for land within the municipal district of a municipal council is— (a) subject to paragraph (b), the date as at which rateable properties within the municipal district were valued for the purposes of the last general valuation returned to the municipal council before 1 January in the year immediately preceding the tax year; (b) if the land has been valued for the purposes of a supplementary valuation after the return date of the last general valuation referred to in paragraph (a) but before 1 January of the tax year, the return date of the supplementary valuation. (3) If land is not within a municipal district of a municipal council, the "relevant date" for the land is 31 December in the year immediately preceding the tax year. 20. Prescribed indexation factors (1) The regulations may prescribe an indexation factor for land within an area for a tax year for the purposes of section 19(1)(b). (2) The prescribed indexation factor is to be a factor determined by the Valuer-General that in his or her opinion reflects half the aggregate movement in the site value of land classified residential, commercial or industrial within that area between the applicable general valuation and the subsequent general valuation. s. 20 -- 20 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 16 (3) In determining a factor for the purposes of sub- section (2), the Valuer-General is to disregard the value of land that is exempt land under Division 1 of Part 4 (principal place of residence). (4) For the purposes of sub-section (3), the Valuer- General may rely on any information provided to him or her by the Commissioner. 21. Use of valuations For the purposes of assessing land tax, the Commissioner may use— (a) valuations made by a rating authority within the meaning of the Valuation of Land Act 1960; or (b) valuations made by the Valuer-General or a valuer nominated by the Valuer-General. 22. Taxable value of parts of land not separately valued (1) This section applies if— (a) it is necessary to determine the taxable value of part of land ("the part") for or in a tax year; and (b) the part was not valued separately as at the relevant date (within the meaning of section 19) in relation to that year; and (c) the whole land was valued separately as at the relevant date. (2) The taxable value of the part is the same proportion of the taxable value of the whole land as the area of the part bears to the area of the whole land. s. 21 -- 21 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 17 23. Taxable value of home units not valued separately (1) This section applies if there are 2 or more home units on land. (2) If a home unit is not valued separately as at the relevant date (within the meaning of section 19) in relation to a tax year, the taxable value of the home unit is determined in accordance with the formula— C B A × where— A is the net annual value of the home unit; B is the net annual value of all home units on the land; C is the taxable value of the land. (3) In this section— "net annual value" has the same meaning as in the Valuation of Land Act 1960. Division 4—Land Tax on Transmission Easements 24. Imposition of land tax on transmission easements Land tax is imposed in respect of each year on all transmission easements in Victoria other than exempt transmission easements. 25. Who is liable for land tax on transmission easements? The transmission easement holder is liable to pay land tax on a transmission easement. s. 23 -- 22 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 18 26. When must land tax be paid? The day specified in a notice of assessment of land tax on transmission easements must be not less than 14 days after the day the notice is served on the taxpayer. Note: Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice. 27. What is the taxable value of a transmission easement? (1) The "taxable value" of a transmission easement is— (a) in respect of the 2006 tax year—the value as at 1 January 2004 determined in a valuation made under section 5B of the Valuation of Land Act 1960; (b) in respect of the 2007 tax year—the value as at 1 January 2004 determined in a valuation made under section 5B of the Valuation of Land Act 1960, multiplied by the prescribed indexation factor (if any) applying to the land encumbered by the transmission easement; (c) in respect of the 2008 tax year—the value as at 1 January 2006 determined in a valuation made under section 5B of the Valuation of Land Act 1960; (d) in respect of every tax year after 2008— (i) if a valuation made under section 5B of the Valuation of Land Act 1960 has been used for the purposes of assessing tax in the year immediately preceding the tax year—the value as at the relevant easement valuation date determined in a valuation made under s. 26 -- 23 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 19 section 5B of the Valuation of Land Act 1960, multiplied by the prescribed indexation factor (if any) applying to the land encumbered by the transmission easement; (ii) if a valuation made under section 5B of the Valuation of Land Act 1960 has not been used for the purposes of assessing tax in the year immediately preceding the tax year—the value as at the relevant easement valuation date determined in a valuation made under section 5B of the Valuation of Land Act 1960. (2) In this section— "prescribed indexation factor" means the prescribed indexation factor referred to in section 20; "relevant easement valuation date", in respect of every tax year after 2008, means the date as at which a valuation of transmission easements was last made in accordance with section 5B of the Valuation of Land Act 1960, being a date before 1 January in the year immediately preceding the tax year. 28. Agreements relating to the payment of tax (1) The Commissioner may enter into an agreement with a transmission easement holder in relation to the payment of land tax imposed on the transmission easement. s. 28 -- 24 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 20 (2) An agreement under sub-section (1)— (a) may, despite anything to the contrary in this Act, permit the payment of the tax to be by instalments within such time as is set out in the agreement; and (b) must not be for a period exceeding 5 years. (3) Nothing in this section limits the operation of section 49 of the Taxation Administration Act 1997. Division 5—Special Land Tax 29. Imposition of special land tax Special land tax is imposed in accordance with this Division on certain land that ceases to be exempt land. 30. What land is subject to special land tax? (1) Special land tax is imposed on the following land that ceases to be exempt land— (a) land referred to in section 66 (primary production land in greater Melbourne but not in an urban zone); (b) land referred to in section 67 (primary production land in an urban zone in greater Melbourne); (c) land referred to in section 72 (sporting, recreational or cultural land); (d) land referred to in section 75 (rooming houses); (e) land referred to in section 76 (residential care facilities and supported residential services); (f) land referred to in section 77 (caravan parks); s. 29 -- 25 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 21 (g) land referred to in section 80(1) (land owned by public statutory authority); (h) land referred to in section 86(1) (land used as a mine). (2) Special land tax is not imposed on a parcel of land referred to in sub-section (1)(g) if at the time the land ceases to be exempt land— (a) the taxable value of the parcel does not exceed $199 999; and (b) it is used or proposed to be used exclusively by the owner, or by any one or more of joint owners, as his, her or their principal place of residence. (3) Special land tax is not imposed if the land ceases to be exempt land only because the relevant section referred to in sub-section (1) is amended or repealed. 31. Who is liable for special land tax? (1) If the land ceases to be exempt land immediately on a change of ownership, or within 60 days after a change of ownership, the person who was the owner immediately before the change of ownership is liable to pay special land tax on the land. (2) In any other case, the person who owned the land immediately after it ceased to be exempt land is liable to pay special land tax on the land. 32. When does a liability for special land tax arise? A liability for special land tax arises when the land on which the tax is imposed ceases to be exempt land. s. 31 -- 26 of 112 -- Part 2—Imposition of Land Tax Land Tax Act 2005 Act No. 88/2005 22 33. When must special land tax be paid? The day specified in a notice of assessment of special land tax must be not less than 14 days after the day the notice is served on the taxpayer. Note: Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice. 34. Deferral of special land tax in certain circumstances (1) This section applies to any land referred to in section 30(1) except where the land ceases to be exempt land immediately on a change of ownership, or within 60 days after a change of ownership. (2) Despite section 32 or 33, the taxpayer may elect to defer the payment of the special land tax until the sooner of— (a) a change of ownership of the land, or any part of it; or (b) 3 years after the day on which the land ceased to be exempt land. __________________ s. 33 -- 27 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 23 PART 3—ASSESSMENT OF LAND TAX Division 1—Rate of Land Tax 35. What is the rate of land tax? (1) The rate of land tax (other than special land tax) is set out in Schedule 1. (2) The rate of special land tax is 5% of the taxable value of the land. Division 2—How is Land Tax Assessed? 36. Land tax assessed on aggregated basis (1) Subject to this Act, a taxpayer is to be assessed for land tax on land for a tax year on the total taxable value of all taxable land of which the taxpayer was the owner at midnight on 31 December immediately preceding that tax year. (2) Subject to this Act, a taxpayer is to be assessed for land tax on transmission easements for a tax year on the total taxable value of all transmission easements of which the taxpayer was the holder at midnight on 31 December immediately preceding the tax year. (3) For the purposes of an assessment, the applicable rate of land tax in Schedule 1 is to be applied to the total taxable value of that land or transmission easements (as the case requires). s. 35 -- 28 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 24 37. Certain taxable land assessed separately (1) This section applies for the purposes of assessing land tax payable on the following land— (a) taxable land owned by a charitable institution or held by a trustee on trust for charitable purposes; (b) land referred to in section 81(1) that is taxable land because of section 81(2). (2) Land tax is to be assessed for a year on each parcel of land referred to in sub-section (1) of which the taxpayer was the owner at midnight on 31 December immediately preceding that year as if that parcel were the only land owned by the taxpayer. (3) For that purpose, the applicable rate of land tax in Schedule 1 is to be applied separately to the taxable value of each parcel. (4) Part of a parcel of land (other than part of a building) is to be regarded as a separate parcel of land for the purposes of this section if the part— (a) is occupied separately from other land in the parcel; or (b) is obviously adapted to being so occupied. 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). s. 37 -- 29 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 25 (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 sub-section (3) an amount (if any) necessary to avoid double taxation, being the lesser of— (a) the amount determined by the formula— B A × 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 sub- section (2); and (b) the amount determined by the formula— E D C × where— C is the value of the joint owner's individual interest in the jointly- owned land (as determined under sub-section (3)(a)); s. 38 -- 30 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 26 D is the total value of all taxable land of the joint owner assessed under sub-section (3); E is the amount of land tax assessed under sub-section (3). (5) For the purposes of this section a joint owner may be separately assessed under sub-section (3) in respect of land even though no land tax is jointly assessable in respect of that land under sub-section (2). 39. Joint assessments in the case of principal place of residence land (1) For the purposes of section 38 and subject to this section, if land that is jointly owned is exempt land because it is the principal place of residence of one or more, but not all, of the joint owners— (a) no land tax is jointly assessable in respect of that land under section 38(2); (b) each joint owner who does not use and occupy the land as his or her principal place of residence may be separately assessed in respect of that land under section 38(3). (2) A joint owner of land ("joint owner 1") that is exempt land in respect of a tax year because of its use and occupation as the principal place of residence of another joint owner of the land ("joint owner 2") is not, in respect of the tax year, liable to pay or be assessed under section 38(3) for land tax on the land— (a) if, at any time during the year immediately preceding the tax year, the land was used and occupied as the principal place of residence of joint owner 1 and joint owner 2; or s. 39 -- 31 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 27 (b) if— (i) at any time during the second year preceding the tax year the land was used and occupied as the principal place of residence of joint owner 1 and joint owner 2; and (ii) there is no other land that is exempt land in respect of the tax year because of its use and occupation as the principal place of residence of joint owner 1. (3) Despite anything to the contrary in this section or Division 1 of Part 4, if a joint owner of land ("the PPR land") who, because of sub- section (2), is not liable to be assessed under section 38(3) for land tax in respect of the PPR land in respect of a tax year, resumes use and occupation of the PPR land during the tax year, the joint owner is liable for land tax in respect of the tax year in respect of any other land that, but for this sub-section, would be exempt land under Division 1 of Part 4 in respect of the tax year. (4) Except to the extent set out in sub-section (3), nothing in this section takes away from or affects the operation of Division 1 of Part 4. 40. Assessment of joint occupiers of land (1) This section applies if 2 or more persons own land in severalty but occupy it jointly. (2) Land tax is to be assessed on the persons as if they were joint owners of the land. (3) For the purposes of this Act, persons (the "joint occupiers") are taken to occupy land jointly if the land is occupied, worked or managed— s. 40 -- 32 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 28 (a) by any one or more of the joint occupiers on behalf of all of the joint occupiers or on a joint account; or (b) by any other person as trustee for or otherwise on behalf of all of the joint occupiers. (4) Sub-section (3) does not limit the circumstances in which persons may be taken to occupy land jointly. 41. Assessment of joint transmission easement holders (1) Joint transmission easement holders are to be assessed for land tax on transmission easements in accordance with this section. (2) Joint transmission easement holders are to be jointly assessed in respect of a transmission easement as if held by a single person, without regard to— (a) the separate interest of each joint transmission easement holder in that transmission easement; (b) any other transmission easement held by a joint transmission easement holder (either alone or jointly with someone else). (3) Each joint transmission easement holder is also to be separately assessed in respect of— (a) the joint transmission easement holder's individual interest in the transmission easement as if the transmission easement holder were the holder of a part of the transmission easement in proportion to that interest; and (b) any other transmission easement held by a joint transmission easement holder alone; and s. 41 -- 33 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 29 (c) the joint transmission easement holder's individual interest in any other transmission easement. (4) There is to be deducted from the land tax assessed for a joint transmission easement holder under sub-section (3) an amount (if any) necessary to avoid double taxation, being the lesser of— (a) the amount determined by the formula— B A × where— A is the proportion of the transmission easement holder's individual interest in the jointly-owned transmission easement to the total interests in that easement; B is the total amount of land tax assessed on the jointly-owned transmission easement under sub-section (2); and (b) the amount determined by the formula— E D C × where— C is the value of the joint transmission easement holder's individual interest in the jointly-owned transmission easement (as determined under sub- section (3)(a)); D is the total value of all transmission easements of the joint transmission easement holder assessed under sub- section (3); E is the amount of land tax assessed under sub-section (3). s. 41 -- 34 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 30 (5) For the purposes of this section, a joint transmission easement holder may be separately assessed under sub-section (3) in respect of a transmission easement even though no land tax is jointly assessable in respect of that easement under sub-section (2). (6) In this section— "joint transmission easement holder" means a transmission easement holder who holds a transmission easement jointly with another person. 42. Assessment of owner of land on which there are home units (1) For the purposes of assessing the land tax payable on land on which home units are situated by the owner of the land, the amount of the taxable value of the home units is to be deducted from the taxable value of the land. (2) In sub-section (1), the owner of land on which home units are situated means the person who is the owner of the land, whether or not that person is also the owner of one or more of the home units. (3) For the purposes of this section, section 12(2) does not apply in determining who the owner of land is. 43. Mortgagees in possession of land (1) If there is a mortgagee in possession of land, land tax on the land is to be assessed at the rate that would have applied if the mortgagee had not been in possession of the land. s. 42 -- 35 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 31 (2) Sub-section (1) applies until the earlier of— (a) the mortgagee ceasing to be in possession of the land; or (b) 31 December in the 3rd year after the mortgagee took possession of the land. 44. Trustees (1) Subject to this section, a trustee in whom land is vested is to be assessed for land tax as if the trustee were beneficially entitled to the land. (2) If, in respect of a tax year, a trustee holds different lands in severalty for different beneficial owners who are not liable to be jointly assessed for land tax on the lands, the trustee is to be assessed for land tax for the year on each of those lands as if each of those lands were the only land held by the trustee. (3) If, in respect of a tax year, a trustee holds land on trust and holds other land beneficially, the trustee is to be assessed for land tax for the year separately on the land held on trust and the land held beneficially. (4) Sub-section (3) does not apply if, apart from this section, the trustee would be liable to be jointly assessed for land tax on any of the relevant land. (5) A trustee who has paid any land tax assessed in accordance with this section on land is entitled— (a) to be repaid the amount of the tax by a beneficial owner who is also liable to pay land tax on the land; or (b) to recoup the amount of the tax from any trust property that is subject to the trust to which the land is subject, or any like trust. s. 44 -- 36 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 32 45. Certain long-term lessees of private land (1) This section applies if— (a) a person (the "lessee") has a leasehold estate in land (other than under a lease from the Crown); and (b) the lessee became entitled to that estate before 30 December 1978. (2) If this section applies, both the lessee and the owner of the freehold estate in the land are to be assessed for land tax on the land and, for the purpose of this Act, a reference to the owner of the land includes a reference to the lessee. (3) The Commissioner may apportion the land tax payable on the land as between the owner of the freehold estate and the lessee if the Commissioner is of the opinion that the value of the freehold owner's interest in the land is lessened by the covenants of the lease. (4) If the Commissioner apportions the land tax under sub-section (3), the owner of the freehold estate and the lessee are each liable to pay the proportion of the tax determined by the Commissioner. 46. Land tax on parts of land If it is necessary to assess land tax on a part of land, the land tax applicable to that part is the proportion of the land tax, assessed on the taxable value of the whole land, that the taxable value of the part bears to the total taxable value of the whole land. s. 45 -- 37 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 33 Division 3—Grouping of Related Corporations 47. What are "related corporations"? (1) For the purposes of this Division, corporations are related corporations in any of the circumstances specified in this section. (2) Corporations are "related corporations" if one of those corporations— (a) controls the composition of the board of the other corporation; or (b) is in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other corporation; or (c) holds more than 50% of the issued share capital of the other corporation. (3) Corporations are "related corporations" if the same person has, or the same persons have together, a controlling interest in each of the corporations. Note: "controlling interest" is defined in section 48. (4) Corporations are "related corporations" if— (a) more than 50% of the issued share capital of one of those corporations ("corporation 1") is held by the other corporation ("corporation 2") together with the shareholders of corporation 2; and (b) the percentage of the issued share capital of corporation 2 held by shareholders of corporation 1 is more than the difference between 50% and the percentage of the issued share capital of corporation 1 held by corporation 2. s. 47 -- 38 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 34 (5) Corporations are "related corporations" if one of those corporations is a related corporation of a corporation of which the other of those corporations is a related corporation (including a corporation that is a related corporation of the other of those corporations because of one or more other applications of this sub-section). 48. What is a "controlling interest" in a corporation? For the purposes of this Division, a person has, or persons have together, a "controlling interest" in a corporation if— (a) that person, or those persons acting together, can control the composition of the board of the corporation; or (b) that person is, or those persons acting together are, in a position to cast or control the casting of more than 50% of the maximum number of votes that might be cast at a general meeting of the corporation; or (c) that person holds, or those persons acting together hold, more than 50% of the issued share capital of the corporation. 49. Further provisions for determining whether corporations are related corporations (1) For the purposes of this Division— (a) corporations may be related corporations whether or not they own land in Victoria; (b) a reference to the issued share capital of a corporation 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; (c) subject to paragraphs (d) and (e), any shares held or power exercisable by a person or corporation as a trustee or nominee for s. 48 -- 39 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 35 another person or corporation are taken to be also held or exercisable by the other person or corporation; (d) any shares held or power exercisable by a person or corporation by virtue of the provisions of any debentures of another corporation, or of a trust deed for securing any issue of any such debentures, must be disregarded; (e) any shares held or power exercisable by, or by a nominee for, a person or corporation (not being held or exercisable as mentioned in paragraph (d)) are taken to be not held or exercisable by that person or corporation if— (i) the ordinary business of that person or corporation includes the lending of money; and (ii) the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with an associate of that person or corporation within the meaning of the Corporations Act; (f) the composition of a corporation's board is taken to be controlled by a person or another corporation if the person or other corporation, by the exercise of a power exercisable whether or not with the consent or concurrence of any other person, can appoint or remove all or a majority of the members of the board. s. 49 -- 40 of 112 -- Part 3—Assessment of Land Tax Land Tax Act 2005 Act No. 88/2005 36 (2) Sub-section (1)(f) does not limit the circumstances in which the composition of a corporation's board is to be taken to be controlled by a person or another corporation. 50. Grouping of related corporations (1) The Commissioner may treat related corporations as a single corporation for the purposes of this Act. (2) If the Commissioner does so— (a) the Commissioner must assess the related corporations jointly for land tax; and (b) the related corporations are jointly and severally liable for the land tax; and (c) section 46 of the Taxation Administration Act 1997 applies accordingly. Division 4—General 51. Reassessments The Commissioner may make a reassessment of land tax under section 9 of the Taxation Administration Act 1997 more than 3 years after the initial assessment. __________________ s. 50 -- 41 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 37 PART 4—EXEMPTIONS AND CONCESSIONS Division 1—Principal Place of Residence 52. Definitions (1) In this Division— "acceptable delay" means a delay in the commencement or completion of a building or other work necessary to enable the intended use and occupation of the land to become its actual use and occupation that is due to reasons beyond the control of the owner or trustee; "discretionary trust" means a trust under which the vesting of the whole or any part of the trust property— (a) is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or (b) will occur in the event that a discretion conferred under the trust is not exercised; "trustee" means trustee within the meaning of section 3(1) but does not include— (a) a trustee of a discretionary trust; or (b) a trustee of a trust to which a unit trust scheme relates; or (c) a liquidator; s. 52 -- 42 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 38 "unit trust scheme" means an arrangement made for the purpose, or having the effect, of providing facilities for participation by a person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust. (2) For the purposes of this Division, a person is not a trustee of a trust relating to land by reason only that the land is subject to an implied or a constructive trust. 53. What is a principal place of residence? (1) For the purposes of this Division, 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. (2) In determining whether land is used or occupied as the principal place of residence of a person, account must be taken of every place of residence of the person, whether in Victoria or elsewhere. (3) For the purposes of this Division, if land on which home units are situated is owned by a body corporate, the land is deemed to be owned by the shareholders of the body corporate who are entitled to exclusive occupancy of the home units. s. 53 -- 43 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 39 54. Principal place of residence exemption (1) Subject to this Division, the following land is exempt land— (a) land owned by a natural person that is used and occupied as the principal place of residence of that person; (b) land owned by a trustee of a trust that is used and occupied as the principal place of residence of a natural person who is a beneficiary of the trust. (2) Subject to section 55, sub-section (1) only applies if the land has been used and occupied as the principal place of residence of the owner or beneficiary— (a) since 1 July in the year preceding the tax year; or (b) if the owner or trustee became the owner of the land on or after 1 July in the year preceding the tax year, since a later date during that year. (3) In addition to land of an owner that is used and occupied as a person's principal place of residence ("the PPR land"), land is also exempt land if it is owned by that owner and— (a) is contiguous with the PPR land or separated from the PPR land only by a road or railway or other similar area across or around which movement is reasonably possible; and (b) enhances the PPR land; and s. 54 -- 44 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 40 (c) is used solely for the private benefit and enjoyment of the person who uses and occupies the PPR land and has been so used— (i) since 1 July in the year preceding the tax year; or (ii) if the owner or trustee became the owner of the land on or after 1 July in the year preceding the tax year, so used and occupied since a later date during that year. (4) This section applies to land whether owned by a sole owner or joint owners. 55. Deferral of tax on certain residential land for 6 months (1) If— (a) land would be exempt land in respect of a year under section 54 but for section 54(2); and (b) the owner satisfies the Commissioner that the land is intended to be continuously used and occupied as the principal place of residence of the owner or, in the case of a trustee, as the principal place of residence of a beneficiary, for a period of at least 6 months from the date that the land was first so used and occupied— the Commissioner may determine that land tax in respect of the land for that year is not payable until the expiry of that 6 month period. s. 55 -- 45 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 41 (2) If land that would be exempt land in respect of a year but for section 54(2) has been continuously used and occupied as the person's principal place of residence for the period of 6 months, the land becomes exempt land in respect of that year at the end of that period. 56. Temporary absence from principal place of residence (1) For the purposes of this Division, land is taken to be used and occupied as the principal place of residence of a person despite the person's absence from the land if the Commissioner is satisfied— (a) that the absence is temporary in nature; and (b) that the person intends to resume use or occupation of the land as his or her principal place of residence after the absence; and (c) that, in respect of the period of absence, no other land is exempt land under this Division as the principal place of residence of the owner or, in the case of a trustee, as the principal place of residence of a beneficiary; and (d) that the owner has not made any claim for exemption for land tax under a law of another jurisdiction (whether in or outside Australia) in respect of the period of absence for his or her principal place of residence or, in the case of a trustee, as the principal place of residence of a beneficiary. (2) For the purposes of section 62, land to which sub- section (1) applies is not to be taken to be land used by a person to carry on a substantial business activity only because the owner lets the land for residential purposes during the absence. s. 56 -- 46 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 42 (3) Sub-section (1) does not apply in the case of a temporary absence— (a) that continues for more than 6 years starting at the end of the last period of at least 6 consecutive months during which the land was used and occupied— (i) in the case of an owner, by the owner as his or her principal place of residence; or (ii) in the case of a trustee, by the beneficiary as his or her principal place of residence; or (b) if the owner or trustee rents the land for a period of 6 consecutive months or more in a particular year. 57. Exemption continues on death of resident (1) If land is used and occupied as the principal place of residence of a person and the person dies, liability for tax is to be assessed as if the person had not died but had continued to use and occupy the land as his or her principal place of residence. (2) Sub-section (1) operates only until the earlier of— (a) the first anniversary of the person's death; or (b) the day on which the person's interest in the land vests in another person under a trust; or (c) the day on which the person's interest in the land vests in a person (other than the person's personal representative) under the administration of the person's estate. s. 57 -- 47 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 43 58. Exemption continues if land becomes unfit for occupation (1) If land that is exempt land under section 54(1) becomes unfit for occupation as the principal place of residence of a person because of damage or destruction caused by an event such as fire, earthquake, storm, accident or malicious damage, the land continues to be exempt land while the owner continues to own the land as if it had continued to be used and occupied as the person's principal place of residence. (2) Sub-section (1) operates until the second anniversary of the day on which the land became unfit for occupation as the person's principal place of residence. (3) The Commissioner may extend the period of operation of sub-section (1) beyond the period referred to in sub-section (2) for a further period of not more than 2 years in any particular case if the Commissioner is satisfied that there has been an acceptable delay in that case. (4) Sub-section (1) does not apply if, at any time during which it would otherwise apply, any other land is exempt land under section 54(1) as the principal place of residence of the owner or, in the case of a trustee, as the principal place of residence of a beneficiary. s. 58 -- 48 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 44 59. Purchase of new principal residence (1) If a person— (a) becomes the owner of land in a year for use and occupation as his or her principal place of residence; and (b) as at 31 December in that year uses and occupies other land as his or her principal place of residence— the land referred to in paragraph (a) is exempt land for the following year. Note: In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(a). (2) If a trustee— (a) becomes the owner of land in a year for use and occupation as the principal place of residence of a beneficiary under the trust; and (b) as at 31 December in that year the beneficiary uses and occupies other land as his or her principal place of residence— the land referred to in paragraph (a) is exempt land for the following year. Note: In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(b). (3) An exemption under sub-section (1) or (2) is revoked if the owner or beneficiary does not continuously use and occupy the land as his or her principal place of residence for at least 6 months, commencing within 12 months after the date on which the owner or trustee became the owner of the land. s. 59 -- 49 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 45 (4) The Commissioner may assess the land tax payable by the owner or trustee in the circumstances referred to in sub-section (3). 60. Sale of old principal residence (1) If an owner— (a) as at 31 December in a year uses and occupies land as his or her principal place of residence; and (b) as at that date is the owner of other land that, for a period of at least 6 months during that year, was continuously used and occupied as the principal place of residence of the owner— the land referred to in paragraph (b) is exempt land in respect of the following year. Note: In this situation, the land referred to in paragraph (a) will also be exempt land in the circumstances set out in section 54(1)(a). (2) If— (a) as at 31 December in a year, land is used and occupied as the principal place of residence of a beneficiary under a trust; and (b) as at that date the trustee is the owner of other land that, for a period of at least 6 months during that year, was continuously used and occupied as the principal place of residence of the beneficiary— the land referred to in paragraph (b) is exempt land in respect of the following year. Note: In this situation, the land referred to in paragraph (a) will also be exempt land in the circumstances set out in section 54(1)(b). s. 60 -- 50 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 46 (3) An exemption under sub-section (1) or (2) is revoked if the owner or trustee is still the sole or joint owner of the land referred to in sub- section (1)(b) or (2)(b) at the end of the year in respect of which the land is exempt. (4) The Commissioner may assess the land tax payable by the owner or trustee in the circumstances referred to in sub-section (3). 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. s. 61 -- 51 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 47 (3) If— (a) an owner or trustee is entitled under sub- section (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 sub- section (3) to a refund of land tax in respect of the first year preceding the tax year referred to in that sub-section ("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. s. 61 -- 52 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 48 (5) Sub-sections (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 sub-section (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 sub-section (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. 62. Partial exemption if land used for business activities (1) Despite anything to the contrary in this Part, if land that would be exempt land under another provision of this Division, but for this section, is used by any person to carry on a substantial business activity, the exemption applies only to the extent that the land is used and occupied for residential purposes. s. 62 -- 53 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 49 (2) In determining whether land is used by a person to carry on a substantial business activity, account must be taken of— (a) whether paid employees or contractors (other than employees or contractors who are relatives of, and who ordinarily reside with, the person who uses and occupies the land as his or her principal place of residence) work on the land; and (b) whether any part of the land is used or allocated solely for business purposes; and (c) if part of the land is used or allocated (whether solely or partly) for business purposes, the proportion of the area of the land, or of the floor space of buildings on the land, that is so used or allocated; and (d) the amount of income (if any), and the proportion of the person's total income, that is derived from business activities carried on on the land; and (e) such other matters (if any) as are prescribed for the purposes of this section. (3) If sub-section (1) applies, the Commissioner must apportion the value of the land as between use and occupation for residential purposes and use for business purposes, having regard to the proportion of the land used for each purpose and the extent to which each proportion is so used. (4) The Commissioner may consult the Valuer- General in relation to an apportionment under this section. s. 62 -- 54 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 50 63. Partial exemption or refund for trustees (1) Despite anything to the contrary in this Division, if— (a) an exemption from land tax or a refund of land tax is provided for in this Division as a consequence of the continuous use and occupation of land as the principal place of residence of one or more beneficiaries under a trust; and (b) other beneficiaries under the trust who do not use and occupy the land as their principal place of residence have a beneficial interest in the land— the amount of the exemption or refund is determined as if the value of the land for the purposes of the exemption or refund were such proportion of the value of the land as is equal to the proportion that the interest in the land held by the beneficiary bears to the total interests of all beneficiaries in the land. (2) Nothing in sub-section (1) applies in the case of a beneficiary entitled to a life estate in possession. Division 2—Primary Production Land 64. Definitions (1) In this Division— "greater Melbourne" has the same meaning that "metropolitan area" has in section 201 of the Melbourne and Metropolitan Board of Works Act 1958; s. 63 -- 55 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 51 "primary production" means— (a) cultivation for the purpose of selling the produce of cultivation (whether in a natural, processed or converted state); or (b) the maintenance of animals or poultry for the purpose of selling them or their natural increase or bodily produce; or (c) the keeping of bees for the purpose of selling their honey; or (d) commercial fishing, including the preparation for commercial fishing or the storage or preservation of fish or fishing gear; or (e) the cultivation or propagation for sale of plants seedlings mushrooms or orchids; "proprietary company" has the same meaning as in the Corporations Act; "relevant period", in relation to a proprietary company means, for any point in time— (a) the previous 3 years; or (b) the period since the incorporation of the company— whichever is the shorter; "urban zone" means a zone under a planning scheme in force under the Planning and Environment Act 1987 of a type declared under sub-section (2) to be an urban zone for the purposes of this Division. (2) The Governor in Council may by Order published in the Government Gazette declare specified types of zones under planning schemes to be urban zones for the purposes of this Division. s. 64 -- 56 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 52 65. Exemption of primary production land outside greater Melbourne (1) Land outside greater Melbourne that is used primarily for primary production is exempt land. (2) If a part of any land outside greater Melbourne is used primarily for primary production that part is exempt land even if a business other than the business of primary production is carried on on any other part of the land. 66. Exemption of primary production land in greater Melbourne but not in an urban zone Land is exempt land if the Commissioner determines that the land comprises one parcel— (a) that is wholly or partly in greater Melbourne; and (b) none of which is within an urban zone; and (c) that is used primarily for primary production. 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 sub-section (2). s. 65 -- 57 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 53 (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 sub-section (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 s. 67 -- 58 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 54 (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 sub- section (2), to be normally so engaged. s. 67 -- 59 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 55 (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 sub- section (2), to be normally so engaged. (6) For the purposes of this section, 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. 68. Exemption of land being prepared for use for primary production (1) Land is exempt land for a tax year if the Commissioner is satisfied that— (a) the land is being prepared for use primarily for primary production; and (b) the land will become exempt land under section 65, 66 or 67 within 12 months after the day on which the preparation referred to in paragraph (a) commenced. (2) The Commissioner may extend the period referred to in sub-section (1)(b) by a further period of 12 months. s. 68 -- 60 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 56 69. Application for exemption under section 66, 67 or 68 To obtain an exemption from land tax under section 66, 67 or 68, the owner of the land must— (a) apply to the Commissioner for an exemption under the section; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under the section. 70. Parcels of land For the purposes of section 66 or 67, a part of a parcel of land is to be regarded as a separate parcel of land if— (a) the part is occupied separately from or is obviously adapted to being occupied separately from other land in the parcel; and (b) the owner of the parcel is— (i) 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 (ii) a proprietary company all the shares in which are beneficially owned by natural persons and the principal business of which is primary production of a type carried on on the land; or (iii) a trustee of a trust of which— (A) the sole business is primary production of the type carried on on the land; and s. 69 -- 61 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 57 (B) each beneficiary is a natural person who is entitled under the trust deed to an annual distribution of the trust income; and (C) 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. Division 3—Sporting, Recreational and Cultural Land 71. Land leased for sporting, recreational or cultural activities by members of the public (1) Land vested in a person or body is exempt land if the Commissioner determines that— (a) it is leased for outdoor sporting, outdoor recreational, outdoor cultural or similar outdoor activities and is available for use for one or more of those activities by members of the public; and (b) the proceeds from the leasing are applied exclusively by the person or body for charitable purposes. (2) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. s. 71 -- 62 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 58 72. Sporting, recreational or cultural land owned by certain non-profit organisations (1) This section applies to land owned— (a) by a non-profit organisation; or (b) in the case of a non-profit organisation that is unincorporated, by a person on trust for the non-profit organisation. (2) The land is exempt land if the Commissioner determines that— (a) the land is used by the non-profit organisation primarily or substantially for— (i) sporting activities; or (ii) outdoor recreational, outdoor cultural or similar outdoor activities; and (b) the primary purpose or objective of the non-profit organisation is to conduct the sporting activities or outdoor recreational, outdoor cultural or similar outdoor activities for which the land is primarily or substantially used. (3) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. s. 72 -- 63 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 59 (4) In this section— "non-profit organisation" means a body (whether incorporated or not) that— (a) applies its profits in promoting its purposes or objectives; and (b) prohibits the payment of any dividends to members— but does not include a body that promotes or controls horse racing, pony racing or harness racing in Victoria. 73. Concessional tax rate for club land (1) Land or part of land that is owned and solely occupied by a club is not liable for land tax at a rate greater than 0⋅357% of the taxable value of the land or part. (2) For the purposes of sub-section (1) and assessing land tax on any part of the land that is not solely occupied by a club, the land tax that is or that would be, but for the operation of sub-section (1), attributable to a part of land is the proportion of the land tax that would, but for the operation of sub-section (1), be payable on the whole of the land owned by a club. (3) In this section, "club" means a society, club or association that— (a) is not carried on for the purposes of the profit or gain to its individual members; and (b) is carried on exclusively for one or more of the following purposes— (i) providing for the social, cultural, recreational, literary or educational interests of its members; s. 73 -- 64 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 60 (ii) promoting or controlling horse racing, pony racing or harness racing in Victoria. Division 4—Charities 74. Charitable institutions and purposes (1) Land is exempt land if the Commissioner determines that— (a) it is used by a charitable institution exclusively for charitable purposes; or (b) it is— (i) owned by a charitable institution; and (ii) vacant; and (iii) declared by its owner to be held for future use for charitable purposes. (2) If the Commissioner is satisfied that only a part of land is used by a charitable institution exclusively for charitable purposes— (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (3) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. s. 74 -- 65 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 61 Division 5—Accommodation 75. Rooming houses (1) Land is exempt land if the Commissioner determines that the land is used and occupied— (a) as a rooming house (within the meaning of the Residential Tenancies Act 1997) that is registered under Part XII of the Health Act 1958; and (b) primarily for low cost accommodation by people with low incomes, in accordance with guidelines issued by the Commissioner for the purposes of this section. (2) The guidelines may include provisions with respect to the following— (a) the circumstances in which accommodation is taken to be low cost accommodation; (b) the types and location of premises in which low cost accommodation may be provided; (c) the number and types of persons for whom the accommodation must be provided; (d) the circumstances in which, and the arrangements under which, the accommodation is provided; (e) maximum tariffs for the accommodation; (f) periods within which tariffs may not be increased; (g) the circumstances in which the applicant is required to give an undertaking to pass on the benefit of the exemption from taxation to the persons for whom the accommodation is provided in the form of lower tariffs. s. 75 -- 66 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 62 (3) A guideline— (a) may be of general or limited application; (b) may differ according to differences in time, place or circumstances. (4) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. (5) If the Commissioner is satisfied that only a part of land is used and occupied as a rooming house or primarily for low cost accommodation by people with low incomes— (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (6) Without limiting the other ways in which land ceases to be exempt under this section, land ceases to be exempt if a person breaches an undertaking given as referred to in sub-section (2)(g). 76. Residential care facilities and supported residential services (1) Land is exempt land if the Commissioner determines that it is occupied, or currently available for occupation, as— (a) a residential care facility; or (b) a supported residential service. s. 76 -- 67 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 63 (2) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. (3) If the Commissioner is satisfied that only a part of land is occupied or currently available for occupation as a residential care facility or supported residential service— (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (4) In this section— "residential care facility" means any premises— (a) in which— (i) a residential care service; or (ii) a multi purpose service— within the meaning of the Aged Care Act 1997 of the Commonwealth, is operated by an approved provider within the meaning of that Act; and (b) in respect of which an allocation of residential care places is in effect under Division 15 of that Act; "supported residential service" has the same meaning as in the Health Services Act 1988. s. 76 -- 68 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 64 77. Caravan parks (1) Land is exempt land if the Commissioner determines that it is used as a registered caravan park. (2) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. (3) If the Commissioner is satisfied that only a part of land is used as a registered caravan park— (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (4) In this section— "registered caravan park" means a caravan park within the meaning of the Residential Tenancies Act 1997 that is registered in accordance with regulations made under section 515 of that Act. 78. Retirement villages (1) Land is exempt land if it is occupied, or currently available for occupation, as a retirement village. (2) If the Commissioner is satisfied that only a part of land is occupied, or currently available for occupation, as a retirement village— s. 77 -- 69 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 65 (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (3) In this section— "retirement village" means a complex containing residential premises (whether or not including hostel units) predominantly or exclusively occupied, or available for occupation, by retired persons under— (a) a residential tenancy agreement or any other lease or licence; or (b) a right conferred by shares; or (c) the ownership of residential premises subject to a right or option of repurchase on conditions restricting the subsequent disposal of the premises— other than a complex or premises that is or are a residential care facility or supported residential service within the meaning of section 76. Division 6—Public, Government and Municipal Land 79. Crown land (1) Land is exempt land if it is— (a) the property of the Crown in right of Victoria; or (b) vested in a Victorian Minister. s. 79 -- 70 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 66 (2) Sub-section (1) does not apply to land that is held by— (a) a person who is entitled to the land under a lease from the Crown under which the person has no right, absolute or conditional, of acquiring the fee simple; or (b) a licensee of vested land under Part 3A of the Victorian Plantations Corporation Act 1993. 80. Public statutory authorities (1) Land is exempt land if the Commissioner determines that the land— (a) is owned by a public statutory authority; and (b) is not land to which sub-section (2) applies. (2) Land or a part of land owned by a public statutory authority is not exempt land if— (a) the land or part is leased or occupied for any business purposes by a person or body other than— (i) a public statutory authority; or (ii) a person or body referred to in section 72(1), 81(1), 83(1) or 84(1); or (b) the land or part is— (i) owned by a public statutory authority declared under sub-section (4) to be an authority to which this sub-paragraph applies; and (ii) not used exclusively as a public open space or as a park. s. 80 -- 71 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 67 (3) Sub-section (2)(a) does not apply to land or part of land that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry. (4) The Governor in Council may, by Order published in the Government Gazette, declare a public statutory authority to be an authority to which sub-section (2)(b) applies. (5) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. 81. Municipal and public land (1) Land is exempt land if it is— (a) owned by a municipal council; or (b) vested in trustees appointed under an Act and held in trust for a municipal purpose; or (c) vested in trustees appointed under an Act and held in trust for a public purpose. (2) Despite sub-section (1), land or a part of land referred to in that sub-section is not exempt land if the land or part is leased or occupied for any business purposes by a person or body other than— (a) a municipal council or trustees of a kind referred to in sub-section (1)(b) or (c); or (b) a person or body referred to in section 72(1), 80(1), 83(1) or 84(1). s. 81 -- 72 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 68 (3) Sub-section (2) does not apply to land or part of land that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry. (4) Sub-section (1) does not apply to land vested in or held in trust for, or for the purposes of, or for purposes that include the purposes of, a trade union, trades hall or council of trade unions. 82. Application of Division 6 (1) Nothing in this Division applies to land— (a) owned or occupied by the Transport Accident Commission; or (b) owned or occupied by the Victorian Urban Development Authority, other than— (i) land to which a declaration under sub- section (2) applies; or (ii) land in the docklands area within the meaning of the Docklands Act 1991. (2) The Treasurer, on the recommendation of the Minister administering the Victorian Urban Development Authority Act 2003, may, by instrument, declare land owned or occupied by the Victorian Urban Development Authority to be exempt land if the Treasurer is satisfied that the land is, or is to be, used for the provision of rental housing in accordance with a housing agreement in force between the Commonwealth and the State. s. 82 -- 73 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 69 Division 7—General Exemptions 83. Armed services personnel (1) Land is exempt land if— (a) it is owned by, or held in trust for, an association of armed services personnel or the dependants of armed services personnel; and (b) it is used by the members of the association for the purposes of the association. (2) Despite sub-section (1), land or a part of land referred to in that sub-section is not exempt land if the land or part is leased or occupied for any business purposes by a person or body other than— (a) an association referred to in sub-section (1); or (b) a person or body referred to in section 72(1), 80(1), 81(1) or 84(1). (3) Sub-section (2) does not apply to land or part of land that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry. (4) In this section— "armed services personnel" means members or former members of— (a) the armed forces of the Commonwealth; or (b) the armed forces of any current or former ally of the Commonwealth. s. 83 -- 74 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 70 84. Friendly societies (1) Land is exempt land if it is owned by, or held in trust for, a friendly society. (2) Despite sub-section (1), land or a part of land referred to in that sub-section is not exempt land if the land or part is— (a) used for banking or insurance purposes; or (b) leased or occupied for any other business purposes by a person or body other than— (i) a friendly society; or (ii) a person or body referred to in section 72(1), 80(1), 81(1) or 83(1). (3) Sub-section (2) does not apply to land or part of land that is leased or occupied under or in accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry. 85. Land used for agricultural shows or farm field machinery days Land is exempt land if— (a) it is owned by, or held in trust for, a body (whether incorporated or not) established to conduct agricultural shows, farm field machinery days or similar activities where the activities are not carried on for the purpose of profit or gain to the members of the body; and (b) it is used for the purposes of the body. s. 84 -- 75 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 71 86. Mines (1) Land is exempt land if the Commissioner determines that it is used exclusively as a mine. (2) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. (3) In this section, "mine" means— (a) any land covered by a mining licence issued under the Mineral Resources Development Act 1990; or (b) any land in the Latrobe area within the meaning of the Electricity Industry (Residual Provisions) Act 1993 where a generation company or other body authorised under that Act mines coal for use in the generation of electricity. (4) Despite sub-section (3), the surface of any land is not at any time a mine unless at that time it is— (a) occupied by or used for shafts or approaches to shafts, or occupied by buildings enclosing or covering those shafts or approaches; or (b) used for the storage of debris or mining machinery. s. 86 -- 76 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 72 Division 8—Exemptions from Land Tax on Transmission Easements 87. Governor in Council may exempt (1) The Governor in Council, on the recommendation of the Treasurer, may by Order published in the Government Gazette exempt— (a) a transmission easement holder from liability to pay land tax on the transmission easement; or (b) a transmission easement from land tax. (2) In considering whether to recommend an exemption under sub-section (1), the Treasurer may have regard to— (a) the need to promote the economic development of Victoria; (b) the need to promote and not hinder the development of energy infrastructure in Victoria; (c) any other factor that the Treasurer considers is appropriate. 88. Dispositions of transmission easements (1) A disposition of a transmission easement by a transmission easement holder, whether made before, on or after the commencement of this section, is not effective to exempt the transmission easement holder from any land tax that would have become payable on the easement had the disposition not taken place if, following the disposition, the easement continues to be, or may be, used by the transmission easement holder. s. 87 -- 77 of 112 -- Part 4—Exemptions and Concessions Land Tax Act 2005 Act No. 88/2005 73 (2) If the Commissioner is satisfied, having regard to— (a) the nature of the easement that is disposed of; (b) any other matters the Commissioner considers relevant— that a transmission easement holder should not pay any tax in respect of that easement that may become payable by reason of sub-section (1), the Commissioner may exempt that transmission easement holder from tax payable under this Part. (3) In this section, "disposition" includes disposition by way of conveyance, transfer, settlement, declaration of trust or any other method. __________________ s. 88 -- 78 of 112 -- Part 5—Relief from or Postponement of Land Tax Land Tax Act 2005 Act No. 88/2005 74 PART 5—RELIEF FROM OR POSTPONEMENT OF LAND TAX Division 1—Preliminary 89. Definition In this Part, "Board" means the Land Tax Hardship Relief Board referred to in section 95. 90. Arrangements for payment of tax Nothing in this Part limits the operation of section 49 of the Taxation Administration Act 1997. Division 2—Relief 91. Taxpayer may apply for relief (1) A taxpayer may apply for relief from the liability to pay land tax on one of the following grounds— (a) if the taxpayer is a natural person— (i) the taxpayer has suffered such a loss, or is in such circumstances, that payment of the full amount of the land tax would cause serious hardship; or (ii) the taxpayer has died and his or her dependants are in such circumstances that payment of the full amount of the land tax would cause serious hardship; (b) if the taxpayer is a company, persons holding more than 60% of the issued share capital of the company are in such circumstances that payment of the full amount of the land tax would cause serious hardship. s. 89 -- 79 of 112 -- Part 5—Relief from or Postponement of Land Tax Land Tax Act 2005 Act No. 88/2005 75 (2) An application for relief must— (a) be in writing; and (b) be made to— (i) the Commissioner, if the land tax assessed for the applicant taxpayer for or in a tax year does not exceed $1000; or (ii) the Board, if the land tax assessed for the applicant taxpayer for or in a tax year exceeds $1000; and (c) be made within— (i) one month after notice of assessment of the land tax has been given to the taxpayer; or (ii) a further time allowed by the Commissioner or the Board, as the case requires. (3) For the purposes of this section, 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. 92. Relief granted by the Commissioner (1) The Commissioner may grant relief from the liability to pay land tax to a taxpayer on application under section 91 if the Commissioner is satisfied that the grounds for the application are made out. (2) Before granting relief, the Commissioner must obtain the approval of the Treasurer. s. 92 -- 80 of 112 -- Part 5—Relief from or Postponement of Land Tax Land Tax Act 2005 Act No. 88/2005 76 (3) In granting relief, the Commissioner may— (a) waive the payment of the land tax either wholly or in part; (b) make a reassessment of the land tax; (c) impose any conditions on the grant of relief that he or she considers appropriate. 93. Relief granted by the Board (1) The Board may grant relief from the liability to pay land tax to a taxpayer on application under section 91 if the Board is satisfied that the grounds for the application are made out. (2) If the Board decides to grant relief, it may direct the Commissioner to make a reassessment of the land tax and— (a) postpone the payment of the land tax either wholly or in part until whichever of the following occurs first— (i) the date the land is sold; (ii) the expiration of a specified period of up to 5 years from the date the taxpayer applies for relief; or (b) waive the payment of the land tax either wholly or in part. (3) The Board may grant relief subject to any conditions that the Board considers appropriate. 94. Reconsideration of postponed land tax (1) This section applies if the Board directs the Commissioner to postpone the payment of land tax under section 93(2)(a). (2) The Board must reconsider the application for relief as soon as convenient after the date to which the payment of the land tax was postponed. s. 93 -- 81 of 112 -- Part 5—Relief from or Postponement of Land Tax Land Tax Act 2005 Act No. 88/2005 77 (3) If, at the time of reconsideration, the Board is satisfied that the grounds for the application are still made out in relation to the amount of land tax postponed, the Board may direct the Commissioner to— (a) waive the payment of the postponed amount of land tax either wholly or in part; and (b) make a reassessment of the land tax. Division 3—Land Tax Hardship Relief Board 95. Establishment and procedure (1) There is to be a Land Tax Hardship Relief Board. (2) The Board consists of the following 3 members— (a) the Secretary to the Department of Treasury and Finance or his or her nominee; (b) the Commissioner or his or her nominee; (c) a person selected by the Commissioner or his or her nominee from a panel of 3 persons appointed by the Governor in Council on the recommendation of the Minister. (3) Before making a recommendation under sub- section (2)(c), the Minister must consult with organisations that, in the Minister's opinion, represent persons engaged in the practice of law or accountancy or the valuation of land. (4) The Board may regulate its proceedings as it thinks fit. __________________ s. 95 -- 82 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 78 PART 6—SECURITY, RECOVERY AND ENFORCEMENT Division 1—Security for Land Tax 96. Land tax is a first charge on land (1) Unpaid land tax (including special land tax) is a first charge on the land on which the tax is payable. (2) The charge has priority over all other encumbrances to which the land is subject. (3) Sub-sections (1) and (2) do not apply to— (a) land tax on Crown land or vested land under Part 3A of the Victorian Plantations Corporation Act 1993; or (b) land tax on transmission easements. (4) If a person— (a) is a bona fide purchaser for value of land; and (b) obtains a certificate from the Commissioner under section 105 in respect of the land— the charge does not secure any amount of land tax on the land in excess of the amount set out in the certificate. 97. Registration of charge (1) The Commissioner may register a charge on land under section 96(1) by depositing with the Registrar of Titles a certificate describing the land charged and stating that there is unpaid land tax in respect of the land. (2) The Registrar of Titles must, without charge, make a recording of the certificate in the Register. s. 96 -- 83 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 79 (3) When the tax is paid, the Commissioner may request the Registrar of Titles— (a) to remove or delete the charge; or (b) to make a recording in the Register of the discharge of the charge. (4) The Registrar of Titles must, without charge, comply with a request made by the Commissioner under sub-section (3). Division 2—Recovery of Land Tax 98. Recovery from lessee, mortgagee or occupier (1) If a tax default occurs in relation to land tax, the Commissioner may require a lessee, mortgagee or occupier of the land to pay land tax that is payable but remains unpaid. (2) The Commissioner's requirement is to be made by notice in writing. (3) A copy of the notice must be served on the taxpayer. (4) The tax must be paid to the Commissioner on receipt of the notice or by the date specified in the notice, whichever is the later. (5) Section 45 of the Taxation Administration Act 1997 applies to tax payable under this section as if the person required to pay the tax were the taxpayer. (6) A person who pays an amount of tax under this section is entitled to recover that amount from the taxpayer as a debt, or to set off the amount against any money owing to the taxpayer. (7) If a mortgagee pays an amount of tax under this section, the amount is deemed to be secured by the mortgage in addition to any other amount secured by it. s. 98 -- 84 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 80 (8) This section does not apply to land tax on transmission easements. Note: General provisions for the recovery of land tax can be found in Part 7 of the Taxation Administration Act 1997. Division 3—Prohibition on Passing On Land Tax 99. Prohibition on passing on land tax (1) A provision in a residential tenancy agreement entered into on or after 1 January 1998 to the effect that the tenant is liable to pay, or to reimburse the landlord in respect of, any land tax payable by the landlord in respect of the rented premises is void. (2) In this section— "residential tenancy agreement" means an agreement, whether or not in writing and whether express or implied, under which a person lets premises as a residence. 100. Prohibition on passing on land tax on transmission easements (1) A provision in an agreement to the effect that the owner of land encumbered by a transmission easement is liable, as owner, to pay, or to reimburse the transmission easement holder in respect of, any land tax on any transmission easement that is payable by the transmission easement holder is void. (2) This section applies to an agreement of the kind referred to in sub-section (1) entered into before, on or after the commencement of this section. s. 99 -- 85 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 81 Division 4—Tax Avoidance Schemes 101. What is a tax avoidance scheme? (1) For the purposes of this Division, a "tax avoidance scheme" is a scheme— (a) under or in connection with which a person has obtained a reduction in, or exemption from, land tax; and (b) in respect of which, having regard to any one or more of the matters referred to in sub- section (2), it would be concluded that a person, or one of the persons, who participated in the scheme did so for the purpose of enabling a person to obtain a reduction in, or exemption from, land tax under or in connection with the scheme. (2) The factors that may be considered for the purposes of sub-section (1)(b) are— (a) the manner in which the scheme was entered into or carried out; (b) the form and substance of the scheme; (c) the time at which the scheme was entered into and the length of the period during which the scheme was carried out; (d) the result in relation to the operation of this Division that, but for section 102, would have been achieved by the scheme; (e) any change in the financial position of any person that has resulted, will result or may reasonably be expected to result from the scheme; (f) any other consequence for the person, or for any other person referred to in paragraph (e), of the scheme having been entered into and carried out; s. 101 -- 86 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 82 (g) the nature of any connection (whether of a business, family or other nature) between the person and any other person referred to in paragraph (e). (3) A reference in sub-section (1) to a scheme being carried out by a person for a particular purpose includes a reference to the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the main purpose. (4) This section applies to a scheme— (a) whenever entered into; and (b) whether the scheme has been or is entered into or carried out in or outside Victoria or partly in and partly outside Victoria. (5) In this section— "scheme" includes the whole or any part of— (a) a contract, agreement, arrangement, understanding, promise or undertaking (including all steps and transactions by which it is carried into effect)— (i) whether made or entered into orally or in writing; (ii) whether express or implied; (iii) whether or not enforceable; or (b) a plan, proposal, action, course of action or course of conduct, whether or not unilateral; or (c) a trust. s. 101 -- 87 of 112 -- Part 6—Security, Recovery and Enforcement Land Tax Act 2005 Act No. 88/2005 83 102. Anti-avoidance provision If the Commissioner considers that a person has participated in a tax avoidance scheme, the Commissioner may— (a) disregard the scheme; and (b) determine what land tax would have been payable but for the scheme; and (c) make an assessment or reassessment under the Taxation Administration Act 1997 of the tax liability of the person or any other person to give effect to that determination. __________________ s. 102 -- 88 of 112 -- Part 7—General Land Tax Act 2005 Act No. 88/2005 84 PART 7—GENERAL Division 1—Notices of Acquisition and Land Tax Certificates 103. Notice of acquisition of land (1) A person who acquires land must give notice of the acquisition— (a) to prescribed persons; and (b) within a prescribed period. (2) The notice must— (a) contain the prescribed information; and (b) be in the prescribed form (if any); and (c) be given in the prescribed manner. (3) Any information contained in a notice under this section may be disclosed to the Valuer-General. 104. Notice of acquisition of transmission easement (1) A transmission easement holder must, in relation to any transmission easement acquired by them, give notice— (a) to prescribed persons; and (b) within a prescribed period. (2) The notice must— (a) contain the prescribed information; and (b) be in the prescribed form (if any); and (c) be given in the prescribed manner. s. 103 -- 89 of 112 -- Part 7—General Land Tax Act 2005 Act No. 88/2005 85 (3) For the purposes of sub-section (1), a transmission easement is taken to be acquired if it is granted to, reserved in favour of, created by statute in favour of or vested by statute in the transmission easement holder. (4) Sub-section (3) does not limit the ways in which a transmission easement may be acquired. 105. Land tax certificates (1) An owner, purchaser or mortgagee of land may apply to the Commissioner for a certificate under this section. (2) An application must be accompanied by the prescribed fee. (3) If an application is duly made, the Commissioner must issue a certificate showing if there is any land tax due and unpaid on the land described in the application. (4) The Commissioner may include any other information in the certificate that he or she thinks appropriate. Division 2—General 106. Stating case to Supreme Court (1) The Commissioner may state a case for the opinion of the Supreme Court on any question of law that arises with regard to any matter under this Act. (2) The Supreme Court may give its judgment on the case stated and make any orders, including orders for costs, the Court thinks fit. s. 105 -- 90 of 112 -- Part 7—General Land Tax Act 2005 Act No. 88/2005 86 107. Regulations (1) The Governor in Council may make regulations for or with respect to any matter or thing that is required or permitted to be prescribed or necessary to be prescribed to give effect to this Act. (2) Regulations made under this Act— (a) may be of general or limited application; and (b) may differ according to differences in time, place or circumstances. __________________ s. 107 -- 91 of 112 -- Part 8—Amendment of Taxation Administration Act 1997 Land Tax Act 2005 Act No. 88/2005 87 PART 8—AMENDMENT OF TAXATION ADMINISTRATION ACT 1997 108. Land tax comes under the Act After section 4(c) of the Taxation Administration Act 1997 insert— "(ca) Land Tax Act 2005 and regulations made under that Act;". 109. Refunds of land tax After section 19(2) of the Taxation Administration Act 1997 insert— "(2A) Sub-section (2) does not apply to an application for a refund of tax paid or purportedly paid under the Land Tax Act 2005.". 110. Disclosure of information (1) In section 92 of the Taxation Administration Act 1997— (a) for paragraph (e)(va) substitute— "(va) the Director of Consumer Affairs Victoria; or"; (b) in paragraph (e)(vii), for "section." substitute "section; or"; See: Act No. 40/1997. Reprint No. 2 as at 13 September 2001 and amending Act Nos 79/2001, 113/2003, 46/2004, 108/2004 and 36/2005. LawToday: www.dms. dpc.vic. gov.au s. 108 -- 92 of 112 -- Part 8—Amendment of Taxation Administration Act 1997 Land Tax Act 2005 Act No. 88/2005 88 (c) after paragraph (e) insert— "(f) in connection with the operation of Landata, in the case of information obtained under or in relation to the administration of the Land Tax Act 2005.". (2) At the end of section 92 of the Taxation Administration Act 1997 insert— '(2) In this section— "Landata" means the integrated computerised information retrieval and property enquiry service relating to information in respect of Victorian land, its ownership and use.'. 111. Objection to valuation of Valuer-General (1) After section 96(1)(c) of the Taxation Administration Act 1997 insert— "(ca) a valuation by the Valuer-General that is used by the Commissioner in an assessment of land tax; or". (2) After section 97(2) of the Taxation Administration Act 1997 insert— "(3) A taxpayer cannot object to an assessment of land tax on any ground relating to the value of the land if the assessment is based on a valuation made by a rating authority under the Valuation of Land Act 1960. (4) Nothing in sub-section (3) limits or affects the right of any person to object to a valuation in accordance with Part III of the Valuation of Land Act 1960. s. 111 -- 93 of 112 -- Part 8—Amendment of Taxation Administration Act 1997 Land Tax Act 2005 Act No. 88/2005 89 (5) For the avoidance of doubt, a taxpayer cannot object to an indexation factor prescribed for the purposes of section 20 of the Land Tax Act 2005.". 112. Objections to value of land After section 100A(2) of the Taxation Administration Act 1997 insert— "(3) Sub-section (1) does not apply to an objection to an assessment of land tax or an objection referred to in section 96(1)(ca), however, the Commissioner must consult the Valuer-General before determining an objection referred to in section 96(1)(ca).". 113. Review by VCAT After section 111(2) of the Taxation Administration Act 1997 insert— "(3) If the matter under review relates to a valuation by the Valuer-General used by the Commissioner in an assessment of land tax, the Tribunal has the same powers with respect to that matter as it has in a review under Part III of the Valuation of Land Act 1960 and the provisions of that Part, with any necessary modifications, apply accordingly. (4) The powers of the Tribunal under sub- section (3) are in addition to its powers and functions under this Act and the Victorian Civil and Administrative Tribunal Act 1998.". s. 112 -- 94 of 112 -- Part 8—Amendment of Taxation Administration Act 1997 Land Tax Act 2005 Act No. 88/2005 90 114. New section 129 substituted For section 129 of the Taxation Administration Act 1997 substitute— "129. Copies of and extracts from certain documents A document signed by the Commissioner purporting to be a copy of, or an extract from, any of the following is admissible in proceedings under a taxation law without production of the original— (a) a return lodged with the Commissioner; (b) a document issued by the Commissioner; (c) a notice given under section 103 or 104 of the Land Tax Act 2005.". 115. Supreme Court—limitation of jurisdiction After section 135(2) of the Taxation Administration Act 1997 insert— "(3) It is the intention of sections 5, 12(4), 18(1), 96(2) and 100(4), as they apply on and after the commencement of section 115 of the Land Tax Act 2005, to alter or vary section 85 of the Constitution Act 1975.". __________________ s. 114 -- 95 of 112 -- Part 9—Further Amendments, Repeals and Transitional Provisions Land Tax Act 2005 Act No. 88/2005 91 PART 9—FURTHER AMENDMENTS, REPEALS AND TRANSITIONAL PROVISIONS 116. Repeal of Land Tax Act 1958 The Land Tax Act 1958 is repealed. 117. Consequential amendments An Act referred to in the heading to an item in Schedule 2 is amended as set out in that item. 118. Transitional provisions Schedule 3, which contains transitional provisions, has effect. __________________ s. 116 -- 96 of 112 -- Land Tax Act 2005 Act No. 88/2005 92 SCHEDULES SCHEDULE 1 Sections 35(1), 36(3), 37(3) LAND TAX RATES PART 1—GENERAL RATES OF LAND TAX 1.1 Land tax for 2006 The rate of land tax for 2006 is set out in Table 1.1. TABLE 1.1 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 200 000 Nil 2. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 3. 540 000 900 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 4. 900 000 1 190 000 $2680 and 1% of the taxable value that exceeds $900 000 5. 1 190 000 1 620 000 $5580 and 1⋅5% of the taxable value that exceeds $1 190 000 6. 1 620 000 2 700 000 $12 030 and 2⋅25% of the taxable value that exceeds $1 620 000 7. 2 700 000 $36 330 and 3⋅5% of the taxable value that exceeds $2 700 000 Note: Clause 5 of Schedule 3 has transitional provisions capping certain land tax increases in 2006. Sch. 1 -- 97 of 112 -- Land Tax Act 2005 Act No. 88/2005 93 1.2 Land tax for 2007 The rate of land tax for 2007 is set out in Table 1.2. TABLE 1.2 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 200 000 Nil 2. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 3. 540 000 900 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 4. 900 000 1 190 000 $2680 and 1% of the taxable value that exceeds $900 000 5. 1 190 000 1 620 000 $5580 and 1⋅5% of the taxable value that exceeds $1 190 000 6. 1 620 000 2 700 000 $12 030 and 2⋅25% of the taxable value that exceeds $1 620 000 7. 2 700 000 $36 330 and 3⋅25% of the taxable value that exceeds $2 700 000 Sch. 1 -- 98 of 112 -- Land Tax Act 2005 Act No. 88/2005 94 1.3 Land tax for 2008 and subsequent years The rate of land tax for 2008 and each subsequent year is set out in Table 1.3. TABLE 1.3 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 200 000 Nil 2. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 3. 540 000 900 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 4. 900 000 1 190 000 $2680 and 1% of the taxable value that exceeds $900 000 5. 1 190 000 1 620 000 $5580 and 1⋅5% of the taxable value that exceeds $1 190 000 6. 1 620 000 2 700 000 $12 030 and 2⋅25% of the taxable value that exceeds $1 620 000 7. 2 700 000 $36 330 and 3% of the taxable value that exceeds $2 700 000 Sch. 1 -- 99 of 112 -- Land Tax Act 2005 Act No. 88/2005 95 PART 2—RATE OF LAND TAX ON TRANSMISSION EASEMENTS 2.1 Rate of land tax on transmission easements The rate of land tax on transmission easements is set out in Table 2.1. TABLE 2.1 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 150 000 Nil 2. 150 000 200 000 $150 and 0⋅1% of the taxable value that exceeds $150 000 3. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 4. 540 000 675 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 5. 675 000 810 000 $1555 and 1% of the taxable value that exceeds $675 000 6. 810 000 1 080 000 $2905 and 1⋅75% of the taxable value that exceeds $810 000 7. 1 080 000 1 620 000 $7630 and 2⋅75% of the taxable value that exceeds $1 080 000 8. 1 620 000 2 700 000 $22 480 and 3% of the taxable value that exceeds $1 620 000 9. 2 700 000 $54 880 and 5% of the taxable value that exceeds $2 700 000 __________________ Sch. 1 -- 100 of 112 -- Land Tax Act 2005 Act No. 88/2005 96 SCHEDULE 2 Section 117 CONSEQUENTIAL AMENDMENTS 1. Duties Act 2000 1.1 In sections 24(2A)(a)(i), 56(1)(a) and 56(3)(c), for "section 9(1)(ga), (h) or (ha) of the Land Tax Act 1958" substitute "section 65, 66 or 67 of the Land Tax Act 2005". 1.2 For section 249(2) substitute— "(2) In this section— "tax" means tax within the meaning of the Taxation Administration Act 1997.". 2. Evidence (Commissions) Act 1982 Section 4(1)(a) is repealed. 3. Heritage Act 1995 In section 144(2)(a), for "Land Tax Act 1958" substitute "Land Tax Act 2005". 4. Property Law Act 1958 In clause 9 of the Third Schedule, for "Land Tax Act 1958" substitute "Land Tax Act 2005". 5. Retail Leases Act 2003 In sections 50 and 121(2)(b), for "Land Tax Act 1958" substitute "Land Tax Act 2005". 6. South Yarra Project (Subdivision and Management) Act 1985 In section 19(2)(c), for "Land Tax Act 1958" substitute "Land Tax Act 2005". 7. Subordinate Legislation Act 1994 In section 8(1)(c), for "section 3(2)(ab)(ii) of the Land Tax Act 1958" substitute "section 20 of the Land Tax Act 2005". Sch. 2 -- 101 of 112 -- Land Tax Act 2005 Act No. 88/2005 97 8. Taxation (Reciprocal Powers) Act 1987 In section 3(1), for paragraph (a) of the definition of "State Taxation Act" substitute— "(a) Land Tax Act 2005;". 9. Transfer of Land Act 1958 In clause 9 of the Seventh Schedule, for "Land Tax Act 1958" substitute "Land Tax Act 2005". 10. Valuation of Land Act 1960 10.1 In section 2(1), in the definitions of "transmission easement" and "transition easement holder", for "Land Tax Act 1958" substitute "Land Tax Act 2005". 10.2 In section 5B— (a) in sub-section (1), for "Part IIB of the Land Tax Act 1958" substitute "Division 4 of Part 2 of the Land Tax Act 2005"; (b) in sub-section (2), for "under Part IIB of the Land Tax Act 1958" substitute "imposed under Division 4 of Part 2 of the Land Tax Act 2005"; (c) in sub-section (3)(a), for "under section 13P(1)(a) of the Land Tax Act 1958" substitute "under section 87(1)(a) of the Land Tax Act 2005"; (d) in sub-section (3)(b), for "under section 13P(1)(b) of the Land Tax Act 1958" substitute "under section 87(1)(b) of the Land Tax Act 2005". 10.3 In section 14, in the definition of "relevant taxpayer", for "Land Tax Act 1958" substitute "Land Tax Act 2005". 10.4 In section 15A, for "tax the Commissioner intends to assess, charge, levy and collect under Part IIB of the Land Tax Act 1958," substitute "land tax payable under Division 4 of Part 2 of the Land Tax Act 2005,". 10.5 In section 18(1), for "Land Tax Act 1958" substitute "Land Tax Act 2005". 10.6 Section 20 is repealed. Sch. 2 -- 102 of 112 -- Land Tax Act 2005 Act No. 88/2005 98 11. Victorian Civil and Administrative Tribunal Act 1998 In clause 2 of Schedule 1, for paragraph (e) of the definition of "taxing Act" substitute— "(e) Land Tax Act 2005;". __________________ Sch. 2 -- 103 of 112 -- Land Tax Act 2005 Act No. 88/2005 99 SCHEDULE 3 Section 118 TRANSITIONAL PROVISIONS 1. Definitions In this Schedule— "commencement day" means 1 January 2006; "old Act" means the Land Tax Act 1958 as in force immediately before the commencement day. 2. Savings and transitional regulations The regulations may contain provisions of a savings and transitional nature consequent on the enactment of this Act. 3. Application of Interpretation of Legislation Act 1984 Except where the contrary intention appears, this Schedule does not affect or take away from the Interpretation of Legislation Act 1984. 4. Continuation of old Act and regulations If a provision of the old Act continues to apply by force of this Schedule, the following provisions also continue to apply in relation to that provision— (a) any other provision of the old Act necessary to give effect to that continued provision; and (b) any regulation made under the old Act for the purposes of that continued provision. 5. Land tax capping for 2006 If, under clause 7.2 of the Second Schedule to the old Act, the duty of land tax payable for 2006 on the land of an owner would be a different amount from the amount of land tax payable under this Act as calculated by applying the rates in Table 1.1 in Schedule 1, the land tax payable under this Act on the land for 2006 is the amount calculated in accordance with clause 7.2 of the Second Schedule to the old Act. Sch. 3 -- 104 of 112 -- Land Tax Act 2005 Act No. 88/2005 100 6. Application of this Act and old Act (1) This Act applies to land tax for the 2006 tax year and each subsequent tax year. (2) Despite its repeal, the old Act continues to apply to land tax for or in any tax year prior to 2006. 7. Saving of exemption in respect of decentralised industries (1) This clause applies to any land or part of land that was exempt from land tax under the old Act immediately before the commencement day because it was leased or occupied under or in accordance with an arrangement made by the Victorian Development Corporation or by a municipal council to promote or assist a decentralised industry. (2) On and after the commencement day, the land or part of land is taken to be exempt land for as long as it continues to be leased or occupied under or in accordance with an arrangement made by the Victorian Development Corporation or by a municipal council to promote or assist a decentralised industry. ═══════════════ Sch. 3 -- 105 of 112 -- Land Tax Act 2005 Act No. 88/2005 101 ENDNOTES † Minister's second reading speech— Legislative Assembly: 8 September 2005 Legislative Council: 20 October 2005 The long title for the Bill for this Act was "to re-enact and modernise the law relating to land tax, to repeal the Land Tax Act 1958, to amend the Taxation Administration Act 1997 and other Acts and for other purposes." Constitution Act 1975: Section 85(5) statement: Legislative Assembly: 8 September 2005 Legislative Council: 20 October 2005 Absolute majorities: Legislative Assembly: 19 October 2005 Legislative Council: 17 November 2005 Endnotes -- 106 of 112 -- Land Tax Act 2005 Act No. 88/2005 102 INDEX Subject Section Acquisition of land notice 103 See also Purchase and sale of land Actamendments to other Acts 108–115, 117, Sch. 2 commencement 2 Crown bound by 6 purposes 1 repeal 116 to be read with Taxation Administration Act 1997 5 transitional provisions 118, Sch. 3 Agricultural shows, farm machinery days 85 Armed services personnel 83 Assessment aggregate assessments 36, Sch. 1 assessment of joint occupiers 40 assessment of joint owners 38–39 basis for home units 12, 42 parcels of land 37, Sch. 1 reassessments 51, 92–94 valuations used in 21 See also Transmission easements Business of primary production See Primary production Businesses no exemption if part of land used for 80, 81, 83, 84 principal place of residence used for 62 Caravan parks 77 Certificates 105 Charitable institutions lands exempted from land tax 74 lands subject to land tax 37, Sch. 1 Clubs 73 Commissioner for State Revenue powers and functions regarding assessment 16, 21, 36–46 certificates of land tax due and unpaid 105 charges on land 97 defaults 98 exemptions 58, 66–86 guidelines regarding rooming houses 75 reassessments 51, 93–94 recovery of land tax 96–98 related corporations 50 -- 107 of 112 -- Land Tax Act 2005 Act No. 88/2005 103 Subject Section relief from payment 91–94 tax-avoidance schemes 102 tax payable on principal place of residence 55, 58–62 tax payable on transmission easements 4, 28, 41, 88 referral of matters to Supreme Court for opinion 106 Corporations controlling interests in 48 related corporations 47, 49, 50 Crown land 79 Cultural lands See Recreational lands Definitions 3, 4, 12, 13, 18, 19, 22, 23, 27, 39, 40, 41, 45, 47, 48, 52, 54, 61, 64, 72, 73, 76, 77, 78, 83, 86, 88, 89, 99, 101 Easements See Transmission easements Exemptions agricultural shows, farm machinery days 85 armed services personnel 83 caravan parks 77 charitable institutions 74 Crown land 79 friendly societies 84 land owned, occupied by clubs 73 mines 86 municipal and public land 81 obtained by tax-avoidance schemes 101–102 primary production land 64–70 public statutory authorities 80 residential care facilities 76 retirement villages 78 rooming houses 75 sporting, cultural, recreational lands 71–72 supported residential services 76 Transport Accident Commission land 82 Victorian Urban Development Corporation land 82 See also Principal place of residence Friendly societies 84 Home units assessment of land tax 42 definition 3 net annual value (def.) 23 owners 12, 53 taxable value where not valued separately 23 Indexation factors 20, 27 Joint occupiers 40 Joint owners 3, 38, 39 -- 108 of 112 -- Land Tax Act 2005 Act No. 88/2005 104 Subject Section Land definition 3, 12 parcel (def.) 3 parts of 46, 70 taxable land (def.) 3 taxable value 3, 19 unpaid land tax as charge on 96, 97 See also Site value; Valuation Land tax amount payable 35, Sch. 1 applicable to part of land 46 applicable to parts of land not separately valued 22 as charge on land if unpaid 96–97 avoidance 101–102 certificates 105 date for payment 9 general imposition 7 liability to pay 8 relevant date (def.) 19 tax year (def.) 3 See also Assessment; Exemptions; Liability for payment of land tax; Recovery of tax; Transmission easements Land Tax Hardship Relief Board applications for relief 91 definition of Board 89 establishment and procedure 95 postponement, waiver of payment 93, 94 Land used for primary production See Primary production Lessees liability for land tax 45, 98 Liability for payment of land tax corporations 50 equitable owners 18 general liability of owners 8 lessees 45, 98 lessees of Crown leaseholds 79 licensees of plantations land 79 life tenants 11 mortgagees 17, 98 occupiers 40, 98 owners of land ceasing to be exempt 31 person in possession 13 purchasers 14, 15 relief 91, 92 trustees 44 under residential tenancy agreements 99 vendors 16 See also Transmission easements Life tenants 11 -- 109 of 112 -- Land Tax Act 2005 Act No. 88/2005 105 Subject Section Mines 86 Mortgages and mortgagees assessment of land tax 43 definition 3 liability of mortgagees 17, 98 Municipal and public land lands exempted from land tax 81 lands subject to land tax 37, Sch. 1 Occupiers 40, 98 Owners definition 10, 12 equitable owners 18 general liability for payment 8 joint owners 38–39 of home units 12, 42, 53 Parts of land tax applicable to land not solely occupied, used by, as caravan parks 77 charitable institutions 74 clubs 73 residential care facilities 76 retirement villages 78 rooming houses 75 supported residential services 76 tax applicable to 46 Payment applications for relief 90, 91 date due 9 defaults 98 of special land tax 33 postponement 93, 94 waiver 92, 93 See also Transmission easements Primary production applications for exemptions 69 definitions 64 exemptions 65–68 parcels of land 70 Principal place of residence death of resident 57 deferral of land tax 55 definition 3, 53 general exemption 54 joint owners 39 land used for business activities 62 partial exemption or refund for trustees 63 purchase of new principal residence 59 sale of old principal residence 60 temporary absence from 56 unfit for occupation 58 unoccupied land subsequently used as 61 -- 110 of 112 -- Land Tax Act 2005 Act No. 88/2005 106 Subject Section Public land See Municipal and public land Public sector superannuation authorities 3 Public statutory authorities 3, 80 Purchase and sale of land person in possession deemed to be owner 13, 15 purchaser's liability 14, 15 vendor's liability 16 Recovery of land tax as charge on land 96–97 from lessees, mortgagees, occupiers 98 Recreational lands concessional rates for clubs 73 exemptions 71–72 Refunds tax paid on principal place of residence 61, 63 Regulations 107 Relevant date (def.) 19 Residential care facilities 76 Residential tenancy agreements 99 Retirement villages 78 Rooming houses 75 Sale of land See Purchase and sale of land Site value (def.) 3 Special land tax amount payable 35 date for payment 33 deferral of payment 34 definition 3 for lands ceasing to be exempt 30 imposition 29, 32 liability for payment 31 Sporting land See Recreational lands Supported residential services 76 Supreme Court referral of matters for opinion to 106 Tax–avoidance schemes 101–102 Taxable value (defs) 3, 27 Taxation See Land tax Taxation Administration Act 1997 5, 90 Trade unions 81 Transitional provisions 118, Sch. 3 Transmission easements definition 3 holding of by transmission easement holders 4 -- 111 of 112 -- Land Tax Act 2005 Act No. 88/2005 107 Subject Section land tax agreements for payment of 28 aggregate assessments 36, Sch. 1 date for payment 26 easements of related bodies corporate 4 effect of dispositions 88 exemptions 87, 88 imposition 24 joint transmission holders 41 liability to pay 25 passing liability on to landowners prohibited 100 notice of acquisition 104 taxable value (def.) 27 transmission companies (def.) 3 value of 27 Transport Accident Commission 82 Treasurer powers, duties regarding exemptions 82, 87 waiver of payments 92 Trusts and trustees assessment of land tax 44, 59–61 definitions 3, 52 See also Principal place of residence Urban zones 64, 67 Valuation applicable general valuation (def.) 3 return date (def.) 3 subsequent general valuation (def.) 3 supplementary valuation (def.) 3 use for assessment purposes 21 Valuer-General determination of indexation factors 20 Victorian Plantations Corporation Act 1993 liability of licencees for tax 10 Victorian Urban Development Authority 82 -- 112 of 112 --