Victorian Current Acts

LAND TAX ACT 2005

TABLE OF PROVISIONS

   PART 1--PRELIMINARY

   1.      Purposes  
   2.      Commencement  
   3.      Definitions  
   3A.     Absentee controlling interest  
   3B.     Exemptions from holding absentee controlling interests  
   3BA.    Exemption—land held on trust under absentee trusts  
   3BB.    Absentee exemption requirements  
   3C.     Delegation of exemption power  
   3D.     Meaning of chain of trusts  
   3E.     Meaning of ultimate trust  
   3F.     Partners taken to have beneficial interest in individual partnership property  
   3G.     Application of this Act to corporate collective investment vehicles  
   4.      Transmission easement holders  
   5.      Taxation Administration Act 1997  
   6.      Act binds the Crown  

   PART 2--IMPOSITION OF LAND TAX

           Division 1--Imposition of land tax

   7.      General imposition of land tax  
   8.      Who is liable for land tax?  
   9.      When must land tax be paid?  

           Division 2--Owners of land

   10.     Who is the owner of land?  
   11.     Life tenants  
   12.     Home units  
   13.     Person in possession of land deemed owner despite disposition of it  
   14.     Purchaser of land on credit or deferred payment  
   15.     Purchaser of land under contract of sale  
   16.     Vendors of land  
   16A.    Transfer of land for no consideration  
   17.     Mortgagees in possession  
   18.     Holders of beneficial interests  
   18A.    Managers of title-based time-sharing schemes  
   18B.    Owners of land under shared equity arrangements  

           Division 3--What is the taxable value of land?

   19.     Taxable value of land  
   21.     Use of valuations  
   22.     Taxable value of parts of land not separately valued  
   23.     Taxable value of home units not valued separately  

           Division 4--Land tax on transmission easements

   24.     Imposition of land tax on transmission easements  
   25.     Who is liable for land tax on transmission easements?  
   26.     When must land tax be paid?  
   27.     What is the taxable value of a transmission easement?  
   28.     Agreements relating to the payment of tax  

           Division 6--Vacant residential land tax

   34A.    Imposition of vacant residential land tax  
   34B.    What is residential land?  
   34C.    When is residential land vacant?  
   34D.    What is the specified geographic area?  
   34E.    Who is liable for vacant residential land tax?  
   34F.    When must vacant residential land tax be paid?  
   34G.    Owner of land subject to vacant residential land tax must notify Commissioner  

           Division 7--BTR special land tax

   34H.    Imposition of BTR special land tax  
   34I.    Who is liable for BTR special land tax?  
   34J.    When must BTR special land tax be paid?  
   34K.    Division applies to land despite change in legal description  

   PART 3--ASSESSMENT OF LAND TAX

           Division 1--Rate of land tax

   35.     What is the rate of land tax?  

           Division 2--How is land tax assessed?

   36.     Land tax assessed on aggregated basis  
   37.     Certain taxable land assessed separately  
   37A.    Certain taxable land assessed separately—vacant residential land tax  
   38.     Assessment of joint owners of land  
   38A.    Assessment of joint owners—vacant residential land tax  
   39.     Joint assessments in the case of principal place of residence land  
   39A.    Joint assessments for unoccupied land subsequently used as principal place of residence  
   39B.    Joint assessments for unoccupied land subsequently used as principal place of residence—residence requirement completed by some but not all  
   40.     Assessment of joint occupiers of land  
   41.     Assessment of joint transmission easement holders  
   42.     Assessment of owner of land on which there are home units  
   43.     Mortgagees in possession of land  
   45.     Certain long-term lessees of private land  
   46.     Land tax on parts of land  
   46AA.   Title-based time-sharing schemes  

           Division 2A--Land held on trust

   46A.    General land tax surcharge for trusts  
   46B.    Land tax for fixed trust if beneficial interests notified to Commissioner  
   46C.    Land tax for unit trust scheme if unitholdings notified to Commissioner  
   46D.    Land tax for beneficiary/trustees  
   46E.    Land tax for excluded trusts and administration trusts  
   46F.    Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes  
   46G.    Land tax for discretionary trust with nominated beneficiary  
   46H.    Nomination of PPR beneficiary of unit trust scheme or discretionary trust for land tax purposes  
   46I.    Land tax for PPR land if nominated PPR beneficiary  

           Division 2AB--Land held on trust under absentee trusts

   46IAA.  Absentee proportion of interests in land subject to a trust in a chain of trusts  
   46IA.   Land tax surcharge for absentee trusts  
   46IB.   Land tax for absentee fixed trust if beneficial interests notified to Commissioner  
   46IC.   Land tax for absentee unit trust scheme if unitholdings notified to Commissioner  
   46ID.   Land tax for beneficiary/trustees  
   46IE.   Land tax for absentee discretionary trust with nominated beneficiary  
   46IF.   Land tax for PPR land if nominated PPR beneficiary  

           Division 2AC--Miscellaneous trust land provisions

   46J.    Trustee's right of reimbursement  
   46K.    Requirements for trustees to notify Commissioner  

           Division 2B--Land held on implied or constructive trust

   46L.    Land held on implied or constructive trust  
   46M.    Trustee's right to reimbursement under implied trust or constructive trust  

           Division 3--Grouping of related corporations

   47.     What are related corporations?  
   48.     What is a controlling interest in a corporation?  
   49.     Further provisions for determining whether corporations are related corporations  
   50.     Grouping of related corporations  

           Division 3A--Land held by related absentee corporations

   50A.    Land tax surcharge for related absentee corporations  

           Division 3B--BTR special land tax

   50B.    BTR special land tax—owner of land  
   50C.    Division applies to land despite change in legal description  

           Division 4--General

   51.     Reassessments  

   PART 4--EXEMPTIONS AND CONCESSIONS

           Division 1--Principal place of residence

   52.     Definitions  
   53.     What is a principal place of residence?  
   53A.    What is a right to reside?  
   53B.    Who is a person with a disability (qualifying)?  
   54.     Principal place of residence exemption  
   55.     Deferral of tax on certain residential land for 6 months  
   55A.    Deferral of tax for residential land to be used during tax year  
   56.     Absence from principal place of residence  
   57.     Exemption continues on death of resident  
   58.     Exemption continues if land becomes unfit for occupation  
   59.     Purchase of new principal residence  
   60.     Sale of old principal residence  
   61.     Unoccupied land subsequently used as principal place of residence  
   61A.    Nomination of works start date  
   61B.    Notice of completion  
   61C.    Notice of failure to complete construction or renovation in time  
   61D.    Notice of qualifying person not starting period of residence in time  
   61E.    Notice of qualifying person not completing period of residence in time  
   61F.    Notice of change of ownership  
   61G.    Revocations of exemption under section 61  
   61H.    Subdivision applies to land despite change in legal description  
   61I.    Commissioner has discretion to extend exemption period  
   62.     Partial exemption if land used for business activities  
   62A.    Partial exemption if separate residence used to provide accommodation  
   63.     Partial exemption or refund for trustees  

           Division 2--Primary production land

   64.     Definitions  
   65.     Exemption of primary production land outside greater Melbourne  
   66.     Exemption of primary production land in greater Melbourne but not in an urban zone  
   67.     Exemption of primary production land in an urban zone in greater Melbourne  
   67A.    Requirements for non-trustee natural person  
   67B.    Requirements for non-trustee proprietary company  
   67C.    Requirements for trustee of superannuation trust  
   67D.    Requirements for trustee of discretionary trust  
   67E.    Requirements for trustee of a trust (other than a discretionary trust or superannuation trust) or unit trust scheme  
   67F.    Joint ownership of parcel of land referred to in section 67(1)(a)  
   68.     Exemption of land being prepared for use for primary production  
   69.     Application for exemption under section 66, 67 or 68  
   70.     Parcels of land  

           Division 2A--Build to rent developments

   70A.    What is a BTR development?  
   70B.    What is an eligible BTR development?  
   70C.    When is a BTR dwelling owned collectively?  
   70D.    What is a single management entity?  
   70E.    When is a dwelling suitable for occupancy?  
   70F.    What are the required rental terms?  
   70G.    Expansion of eligible BTR development  
   70H.    Application for BTR benefits  
   70I.    Eligibility for BTR benefits  
   70J.    BTR benefit—land tax concession  
   70K.    BTR benefit—exemption from absentee owner land tax surcharge for eligible land  
   70L.    Apportionment between eligible and non-eligible land  
   70M.    BTR benefits granted in anticipation of compliance  
   70N.    Notification requirement if land ceases to be eligible for BTR benefits  
   70O.    Division applies to land despite change in legal description  

           Division 3--Sporting, recreational and cultural land

   72.     Sporting, recreational or cultural land owned by certain non‑profit organisations  
   73.     Land owned and occupied by racing clubs  
   73A.    Land owned and occupied by non-racing clubs  
   73B.    Gender-exclusive and gender-restrictive clubs  

           Division 4--Charities and health services

   74.     Charitable institutions and purposes  
   74A.    Health centres and services  

           Division 5--Accommodation

   75.     Rooming houses  
   76.     Residential care facilities and supported residential services  
   76A.    Residential services for people with disabilities  
   77.     Caravan parks  
   78.     Retirement villages  
   78A.    Exemption of land under construction for certain exempt uses  

           Division 6--Public, government and municipal land

   79.     Crown land  
   80.     Public statutory authorities  
   81.     Municipal and public land  
   82.     Application of Division 6  

           Division 7--General exemptions

   83.     Armed services personnel  
   84.     Friendly societies  
   85.     Land used for agricultural shows or farm field machinery days  
   86.     Mines  
   86A.    Land subject to a conservation covenant  

           Division 8--Exemptions from land tax on transmission easements

   87.     Governor in Council may exempt  
   88.     Dispositions of transmission easements  

           Division 9--Exemptions from vacant residential land tax

   88A.    Holiday home exemption  
   88B.    Exemption for land occupied for purposes of attending place of business or employment  
   88C.    Residential land transferred during year preceding tax year  
   88D.    Land becomes residential land during year preceding tax year  
   88E.    Land becomes residential land during second year preceding tax year and has not been used or occupied or changed ownership  

   PART 5--RELIEF FROM OR POSTPONEMENT OF LAND TAX

           Division 1--Preliminary

   89.     Definition  
   90.     Arrangements for payment of tax  

           Division 2--Relief

   91.     Taxpayer may apply for relief  
   92.     Relief granted by the Commissioner  
   93.     Relief granted by the Board  
   94.     Reconsideration of postponed land tax  

           Division 3--Land Tax Hardship Relief Board

   95.     Establishment and procedure  

   PART 6--SECURITY, RECOVERY AND ENFORCEMENT

           Division 1--Security for land tax

   96.     Land tax is a first charge on land  
   97.     Registration of charge  

           Division 2--Recovery of land tax

   98.     Recovery from lessee, mortgagee or occupier  

           Division 3--Prohibition on passing on land tax

   99.     Prohibition on passing on land tax  
   100.    Prohibition on passing on land tax on transmission easements  

           Division 4--Tax avoidance schemes

   101.    What is a tax avoidance scheme?  
   102.    Anti-avoidance provision  

   PART 7--GENERAL

           Division 1--Notices and certificates

   103.    Notice of acquisition of land  
   104.    Notice of acquisition of transmission easement  
   104A.   Notice of errors in notice of assessment of land tax  
   104B.   Notification of absentee owner status  

           Division 2--General

   106.    Stating case to Supreme Court  
   107.    Regulations  

   PART 9--FURTHER AMENDMENTS, REPEALS AND TRANSITIONAL PROVISIONS

   116.    Repeal of Land Tax Act 1958  
   118.    Transitional provisions  
   119.    Repeal of sections on 1 January 2034  
           SCHEDULE 1
           SCHEDULE 1A
           SCHEDULE 2
           SCHEDULE 2A
           SCHEDULE 3
           ENDNOTES