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LAND TAX MANAGEMENT ACT 1956 - SECT 9E
Reduction in land value for certain build-to-rent properties
9E Reduction in land value for certain build-to-rent properties
(1) This section applies in respect of land owned by a person at midnight on
31 December in any year (ending with midnight at the end of 31 December 2039).
Note--: Under section 3AL of the Land Tax Act 1956 , land tax is charged,
levied, collected and paid for the period of 12 months commencing on 1 January
in the next succeeding year for land owned at midnight on 31 December in any
year. So this reduction provision applies until the end of the 2040
land tax year.
(2) For the purpose of assessing land tax, the land value of a
parcel of land is to be reduced by 50% if-- (a) a building is situated on the
land, and
(b) construction of the building commenced on or after 1 July 2020,
and
(c) the Chief Commissioner is satisfied that a significant proportion of
the labour force hours spent on the construction of the building involves or
involved work performed by persons whom the Chief Commissioner considers
belong to any one or more of the following classes of worker-- (i) apprentices
or trainees,
(ii) long-term unemployed workers,
(iii) workers requiring
upskilling,
(iv) workers with barriers to employment (such as persons with
disability),
(v) Aboriginal jobseekers,
(vi) graduates, and
(d) the
Chief Commissioner is satisfied that the building is being used and occupied
for a build-to-rent property in accordance with guidelines approved by the
Treasurer for the purposes of this section, and
(e) an application for the
reduction is made in accordance with this section.
(3) The guidelines may
include provisions with respect to the following-- (a) the circumstances in
which a building is taken to be a build-to-rent property, including in
relation to the following-- (i) the planning or development standards that
must be complied with,
(ii) the minimum lease conditions that must be offered
to tenants of the build-to-rent property,
(iii) the minimum scale of a
building to qualify as a build-to-rent property,
(iv) the nature of the
ownership and management of the building and the land on which the building is
situated,
(b) the circumstances in which the applicant is required to give an
undertaking to not subdivide the land or otherwise divide the ownership of the
land,
(c) other matters relating to build-to-rent properties and the land on
which build-to-rent properties are situated as the Treasurer determines
appropriate.
(4) The guidelines must include policies to promote the
development of new affordable housing and social housing in build-to-rent
properties.
(5) Without limiting the other ways in which this section may
cease to apply to a person, it ceases to apply to a person if the person
breaches an undertaking given as referred to in subsection (3)(b).
(6) A
guideline may-- (a) apply generally or be limited in its application by
reference to specified exceptions or factors, or
(b) apply differently
according to different factors of a specified kind,
or both.
(7) If the
Chief Commissioner is satisfied that only part of a parcel of land is being
used and occupied for a build-to-rent property, the reduction in land value
under subsection (2) is to be proportionately decreased in accordance with
guidelines approved by the Treasurer for the purposes of this section.
(8)
This section does not apply to an owner of land in respect of a tax year
unless-- (a) the owner applies to the Chief Commissioner for the reduction, in
the form approved by the Chief Commissioner, and
(b) the owner furnishes the
Chief Commissioner with the evidence that the Chief Commissioner requests for
the purpose of enabling the Chief Commissioner to determine whether there is
an entitlement to the reduction.
(9) However, if, within the period of 15
years after subsection (2) first applied to reduce the land value of a parcel
of land, the land is subdivided or the ownership of the land is otherwise
divided-- (a) a person whose liability to pay land tax in respect of the land
has been assessed in accordance with this section must, within 1 month, inform
the Chief Commissioner of the date on which the land was subdivided or the
ownership of the land was otherwise divided, and
(b) liability for land tax
in respect of the following years is to be reassessed as if subsection (2) had
not applied to the person-- (i) the year in which the land is subdivided or
the ownership of the land is otherwise divided,
(ii) each preceding year in
which a person's liability to pay land tax was assessed in accordance with
this section, but not more than 15 preceding years, and
(c) the subdivision
or division is taken to be a tax default for the purposes of Part 5 of the
Taxation Administration Act 1996 .
(10) For the purposes of section 9(3)(c)
of the Taxation Administration Act 1996 , any such reassessment is authorised
to be made more than 5 years after the initial assessment.
(11) Any
reassessment is not a relevant land tax assessment for the purposes of
section 35(1)(b) of the Valuation of Land Act 1916 if it is based on the same
land value or average value on which the original land tax assessment was
based (before the reduction was made under subsection (2) of this section).
(12) In this section--
"affordable housing" has the same meaning as in the
Environmental Planning and Assessment Act 1979 .
"social housing" means residential accommodation provided by a social housing
provider within the meaning of the Residential Tenancies Act 2010 .
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