State Taxation Acts Amendment Act 2015
No. 26 of 2015
TABLE OF PROVISIONS
Section
Page
Part 1—Preliminary
1
2
1
Purposes
Commencement
1
2
Part 2—Amendment of Duties Act 2000
4
Division 1—General
4
3
4
5
6
7
8
9
10
11
12
13
Definitions—section 3
Who is an eligible pensioner?
What is a relevant acquisition?
Conversion of a private unit trust scheme to a public unit trust
scheme
Conversion of a private company to a listed company
Definitions—Registration of unit trust schemes
What insurance is exempt from duty?
Primary producer vehicles
New sections 233AA and 233AB inserted
New Schedule 1 inserted
Amendments to Schedule 1
Division 2—Duty payable by foreign purchasers
14
15
16
17
18
19
20
21
22
23
Definitions
New sections 3A to 3F inserted
New section 18A inserted
New section 19A inserted
What is the consideration for the transfer of dutiable property?
Partitions of land
New section 28A inserted
Provisions for determining consideration
Imposition of duty
How duty is charged on relevant acquisitions in public
landholders—concessional rate
24 Amendment of Schedule 2
Part 3—Amendment of Land Tax Act 2005
25 Definitions
26 New sections 3A to 3C inserted
i
4
6
6
6
7
7
7
7
9
10
15
16
16
18
25
26
26
26
27
27
27
28
28
29
29
31
Section
27
28
29
30
31
32
33
34
35
36
37
38
Page
Holders of beneficial interests
Who is liable for special land tax?
What is the rate of land tax?
Assessment of joint owners of land
Joint assessments in the case of principal place of residence
land
New Division 2AB of Part 3 inserted
New Division heading inserted into Part 3
Trustee's right of reimbursement
New Division 3A of Part 3 inserted
Consequential repeal of definition of specified beneficiary
New section 104B inserted
New Parts 4 and 5 of Schedule 1 inserted
35
35
36
36
38
38
56
57
57
58
58
58
Part 4—Amendment of Taxation Administration Act 1997
61
Division 1—Refunds and offsets
61
39
40
41
42
43
Section 20 substituted and new section 20A inserted
Refund of amount
Section 116 substituted
Schedule 1 amended
Consequential amendment—Back to Work Act 2015
Division 2—Absentee owner land tax surcharge
44 Definitions
45 Amount of penalty tax
61
62
62
64
65
65
65
65
Part 5—Repeal of amending Act
66
46 Repeal of amending Act
66
Endnotes
1
67
General information
67
ii
Victoria
State Taxation Acts Amendment Act
2015†
No. 26 of 2015
[Assented to 29 June 2015]
The Parliament of Victoria enacts:
Part 1—Preliminary
1 Purposes
The main purposes of this Act are—
(a) to amend the Duties Act 2000—
(i) to alter definitions in relation to
companies, shares and units; and
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No. 26 of 2015
Part 1—Preliminary
(ii) to update references to Commonwealth
legislation in relation to Seniors Health
Cards and private health insurance; and
(iii) to clarify the circumstances in which a
person makes a relevant acquisition in a
landholder for the purposes of Part 2 of
Chapter 3; and
(iv) to exempt mobile plant and special
purpose vehicles (type P) from motor
vehicle duty and to update definitions
for the purposes of motor vehicle duty;
and
(v) to set the rate for an additional duty
chargeable in respect of transfers of
residential property to foreign
purchasers; and
(vi) to make technical amendments; and
(b) to amend the Land Tax Act 2005 to impose
a surcharge on land owned by absentee
owners; and
(c) to amend the Taxation Administration Act
1997—
(i) in relation to tax offsets and tax
refunds; and
(ii) to impose penalty tax on a person who
fails to notify the Commissioner that
the person is an absentee owner; and
(d) to consequentially amend the Back to Work
Act 2015.
2 Commencement
(1) This Act (except sections 4, 9, 11 and 13 and
Division 2 of Part 2) comes into operation on the
day after the day on which it receives the Royal
Assent.
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No. 26 of 2015
Part 1—Preliminary
(2) Section 4 is taken to have come into operation on
1 July 2011.
(3) Section 9 is taken to have come into operation on
1 April 2007.
(4) Sections 11 and 13 and Division 2 of Part 2 come
into operation on 1 July 2015.
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No. 26 of 2015
Part 2—Amendment of Duties Act 2000
Part 2—Amendment of Duties Act 2000
Division 1—General
3 Definitions—section 3
In section 3(1) of the Duties Act 2000—
(a) insert the following definitions—
"compliance plate means a plate authorised
to be placed on a vehicle, or taken to
have been placed on a vehicle, under
the Motor Vehicle Standards Act 1989
of the Commonwealth;
GVM has the same meaning as in the Road
Safety Act 1986;
load, in relation to a vehicle, includes
anything that is removed from the
vehicle when not in use;";
(b) for paragraph (b) of the definition of motor
vehicle substitute—
"(b) a heavy trailer, other than in
section 233 and Schedule 1;";
(c) for the definition of MRC substitute—
"MRC (mass rating for charging), in relation
to a vehicle, means—
(a) the maximum mass of the vehicle,
including any load, recorded on
the compliance plate as the GVM,
gross trailer mass rating or
aggregate trailer mass of the
vehicle; or
(b) in relation to a vehicle for which
there is no compliance plate—its
maximum mass, including any
load;";
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Part 2—Amendment of Duties Act 2000
(d) for the definition of private company
substitute—
"private company means a corporation that
is not a listed company;";
(e) for the definition of shares substitute—
"shares means—
(a) subject to paragraph (b), shares or
rights to shares; and
(b) for the purposes of the definition
of listed company, shares that
entitle the shareholder to a
distribution of the property of the
company on a winding up of the
company, other than a return of
capital paid in respect of the
shares;";
(f) for the definition of unit substitute—
"unit in a unit trust scheme means—
(a) subject to paragraphs (b) and (c),
a right or interest (whether
described as a unit or a sub-unit
or otherwise) of a beneficiary
under the scheme, or a right to any
such right or interest; and
(b) for the purposes of the definition
of listed trust, a right or interest
(whether described as a unit or a
sub-unit or otherwise) of a
beneficiary under the scheme that
entitles the beneficiary to
participate proportionately with
other unit holders in a distribution
of the property of the trust on its
vesting, other than a return of
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Part 2—Amendment of Duties Act 2000
capital paid in respect of the unit;
and
(c) for the purposes of the definition
of widely held trust and Part 2 of
Chapter 3—
(i) a right or interest (whether
described as a unit or a
sub-unit or otherwise) of a
beneficiary under the scheme
that entitles the beneficiary
to participate proportionately
with other unit holders in a
distribution of the property
of the trust on its vesting; or
(ii) a right to any such right or
interest;";
(g) the definition of National Schedule is
repealed.
4 Who is an eligible pensioner?
In section 58(1)(a)(ii) of the Duties Act 2000,
for "issued under section 1061ZS" substitute
"within the meaning".
5 What is a relevant acquisition?
In section 78(1)(b) of the Duties Act 2000, for
"the person," substitute "the person referred to in
paragraph (a) or".
6 Conversion of a private unit trust scheme to a public
unit trust scheme
In section 89B(5) of the Duties Act 2000, for
"subsection (3)(b)" substitute "subsection (4)(b)".
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Part 2—Amendment of Duties Act 2000
7 Conversion of a private company to a listed
company
In section 89C(5) of the Duties Act 2000, for
"subsection (3)(b)" substitute "subsection (4)(b)".
8 Definitions—Registration of unit trust schemes
In section 89P(4)(a) of the Duties Act 2000 omit
", (i)".
9 What insurance is exempt from duty?
In section 196(a) of the Duties Act 2000, for
"an organisation registered under Part VI of the
National Health Act 1953" substitute "a private
health insurer within the meaning of the Private
Health Insurance Act 2007".
10 Primary producer vehicles
(1) For section 233(2)(c) of the Duties Act 2000
substitute—
"(c) a special work vehicle.".
(2) For section 233(3)(c) of the Duties Act 2000
substitute—
"(c) a special work vehicle.".
(3) In section 233(4) of the Duties Act 2000, for
"Special Purpose Vehicle (type 2) as defined in
Part 2 of the National Schedule" substitute
"special purpose vehicle (type O) as defined in
clause 1 of Schedule 1".
(4) In section 233(5) of the Duties Act 2000—
(a) insert the following definitions—
"agricultural task includes cultivation of
land, growing and harvesting of crops
and rearing of livestock;
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Part 2—Amendment of Duties Act 2000
agricultural trailer means a trailer designed
to carry a load and used exclusively to
perform agricultural tasks, but does not
include—
(a) a semi-trailer; or
(b) a trailer (other than a trailer
specifically constructed to carry a
boat) that—
(i) is not used in the course of
trade; and
(ii) weighs less than
200 kilograms unladen; and
(iii) does not exceed in width the
width of its towing vehicle as
produced by the
manufacturer; and
(iv) is not more than 3·0 metres
long, including the part of
the trailer that connects the
trailer body to a coupling for
towing purposes and any
load;
semi-trailer has the same meaning as in the
Road Safety Act 1986;
special work vehicle means a motor
vehicle—
(a) with an MRC not exceeding
4·5 tonnes and that is not
constructed as a tractor; and
(b) that is primarily constructed and
used for off-road transportation;
and
(c) that is undertaking agricultural
maintenance or service tasks; and
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Part 2—Amendment of Duties Act 2000
(d) that does not comply with an
Australian Design Rule;
trailer has the same meaning as in the Road
Safety Act 1986.";
(b) for the definition of agricultural implement
substitute—
"agricultural implement means—
(a) a vehicle without its own motive
power, not designed to carry a
load and used exclusively to
perform agricultural tasks; or
(b) an agricultural trailer;";
(c) in the definition of primary producer—
(i) in paragraph (a), for "pursuits"
substitute "activities";
(ii) for paragraph (b) substitute—
"(b) who is the holder of a licence
under the Fisheries Act 1995 to
take fish for sale;";
(d) the definition of primary producer special
vehicle is repealed;
(e) in the definition of residential address, for
"address." substitute "address;".
11 New sections 233AA and 233AB inserted
After section 233 of the Duties Act 2000 insert—
"233AA Mobile plant
No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a mobile plant as defined in
clause 1A of Schedule 1.
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Part 2—Amendment of Duties Act 2000
233AB Special purpose vehicles (type P)
No duty is chargeable under this Chapter on
an application for registration or transfer of
registration of a special purpose vehicle
(type P) as defined in clause 1B of
Schedule 1.".
12 New Schedule 1 inserted
Before Schedule 2 of the Duties Act 2000
insert—
"Schedule 1—Special Purpose
Vehicle (Type O)
Section 233(4)
1 Special purpose vehicle (type O)
For the purposes of section 233(4)—
special purpose vehicle (type O) means a
special purpose vehicle (other than a
special purpose vehicle (type P))—
(a) built, or permanently modified,
primarily for use on roads; and
(b) that has at least one axle or axle
group loaded in excess of the axle
load limits specified in the Table
at the foot of this definition.
Example
Mobile cranes, fire engines, truck-mounted concrete
pumps and boring plants are special purpose vehicles
(type O).
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Part 2—Amendment of Duties Act 2000
Table
Axle load limits
Column 1 Column 2
Item No.
Column 3
Axle load
Type of axle or axle group limit
1
Single axles
(a) 2 tyres
60 tonnes
(b) 2 wide profile
tyres—
(i) 375 millimetres
to 450
millimetres
(ii) over 450
millimetres
67 tonnes
70 tonnes
(c) 4 or more tyres—
2
3
(i) on pig trailers
85 tonnes
(ii) on other vehicles
90 tonnes
Twinsteer axle groups
(a) non-load-sharing
suspensions
100 tonnes
(b) load-sharing
suspensions
110 tonnes
Tandem axle groups
(a) 4 tyres
110 tonnes
(b) 4 wide profile
tyres—
(i) 375 millimetres
to 450
millimetres
(ii) over 450
millimetres
(c) 6 tyres
11
133 tonnes
140 tonnes
130 tonnes
State Taxation Acts Amendment Act 2015
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Part 2—Amendment of Duties Act 2000
Column 1 Column 2
Item No.
Column 3
Axle load
Type of axle or axle group limit
(d) 8 or more tyres—
4
(i) on pig trailers
150 tonnes
(ii) on other vehicles
165 tonnes
Tri-axle groups
(a) 6, 8 or 10 tyres
150 tonnes
(b) 6 wide profile tyres
(375 millimetres or
over)—
(i) on pig trailers
180 tonnes
(ii) on other vehicles
200 tonnes
(c) 12 or more tyres—
(i) on pig trailers
180 tonnes
(ii) on other vehicles
200 tonnes
2 Definitions
In this Schedule—
axle group means a single axle group,
tandem axle group, twinsteer axle
group, tri-axle group, quad-axle group
or oversize tri-axle group;
drawbar means a part of a trailer, other than
a semi-trailer, that connects the trailer
body to a coupling for towing purposes;
light motor vehicle means a motor vehicle
with an MRC not exceeding 4·5 tonnes;
light trailer means a trailer with an MRC not
exceeding 4·5 tonnes;
light vehicle means a light motor vehicle or
light trailer;
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oversize tri-axle group means a group of
3 axles in which the horizontal distance
between the centre lines of each axle is
1·8 metres;
pig trailer means a trailer—
(a) with one axle group or single axle
near the middle of its loadcarrying surface; and
(b) that connects to the vehicle towing
it by a drawbar;
quad-axle group means a group of 4 axles,
in which the horizontal distance
between the centre lines of the
outermost axles is more than 3·2 metres
but not more than 4·9 metres;
road has the same meaning as in the Road
Safety Act 1986;
road related area has the same meaning as
in the Road Safety Act 1986;
semi-trailer has the same meaning as in the
Road Safety Act 1986;
single axle means an axle not forming part
of an axle group;
single axle group means a group of 2 or
more axles, in which the horizontal
distance between the centre lines of the
outermost axles is less than 10 metre;
special purpose vehicle has the same
meaning as in section 116(4) of the
Heavy Vehicle National Law
(Victoria);
special purpose vehicle (type P) means a
special purpose vehicle built, or
permanently modified, primarily for—
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Part 2—Amendment of Duties Act 2000
(a) off-road use; or
(b) use on a road related area; or
(c) use on an area of road that is
under construction or repair;
Example
Agricultural tractors, self-propelled agricultural
harvesters, bulldozers, backhoes, graders and
front-end loaders are special purpose vehicles
(type P).
tandem axle group means a group of at least
2 axles, in which the horizontal
distance between the centre lines of the
outermost axles is at least 10 metre,
but not more than 20 metres;
trailer has the same meaning as in the Road
Safety Act 1986;
tri-axle group means a group of at least
3 axles, in which the horizontal
distance between the centre lines of
the outermost axles is more than
2·0 metres, but not more than
3·2 metres;
twinsteer axle group means a group of
2 axles—
(a) with single tyres; and
(b) fitted to a motor vehicle; and
(c) connected to the same steering
mechanism; and
(d) the horizontal distance between
the centre lines of which is at least
1·0 metre, but not more than
2·0 metres;
vehicle has the same meaning as in the Road
Safety Act 1986.".
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Part 2—Amendment of Duties Act 2000
13 Amendments to Schedule 1
(1) For the heading to Schedule 1 to the Duties Act
2000 substitute—
"Schedule 1—Special purpose
vehicles and mobile plant".
(2) In Schedule 1 to the Duties Act 2000, for
"Section 233(4)" (where first occurring
immediately after the heading to the Schedule)
substitute "Sections 233, 233AA and 233AB".
(3) After clause 1 of Schedule 1 to the Duties Act
2000 insert—
"1A Mobile plant
For the purposes of section 233AA—
mobile plant means a motor vehicle with an
MRC not exceeding 4·5 tonnes,
including a tractor—
(a) that is not designed solely for
carrying passengers; and
(b) for which the carrying of a load is
incidental to the purpose for
which the vehicle was
constructed, except water in the
case of concrete pumps and fire
trucks; and
(c) that is not a tow truck.
1B Special purpose vehicle (type P)
For the purposes of section 233AB—
special purpose vehicle (type P) means a
special purpose vehicle built, or
permanently modified, primarily for—
(a) off-road use; or
(b) use on a road related area; or
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(c) use on an area of road that is
under construction or repair.
Example
Agricultural tractors, self-propelled agricultural
harvesters, bulldozers, backhoes, graders and
front-end loaders are special purpose vehicles
(type P).".
(4) In clause 2 of Schedule 1 to the Duties Act
2000—
(a) insert the following definition—
"tractor has the same meaning as in the
Road Safety Act 1986;";
(b) for the definition of special purpose vehicle
(type P) substitute—
"special purpose vehicle (type P) has the
same meaning as in clause 1B;".
Division 2—Duty payable by foreign purchasers
14 Definitions
In section 3(1) of the Duties Act 2000 insert the
following definitions—
"controlling interest has the meaning given by
section 3A;
foreign corporation means—
(a) a corporation that is incorporated
outside Australia; or
(b) a corporation in which one of the
following persons has a controlling
interest—
(i) a foreign natural person;
(ii) another foreign corporation;
(iii) the trustee of a foreign trust;
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foreign natural person means a natural person
who is not any of the following—
(a) an Australian citizen within the
meaning of the Australian Citizenship
Act 2007 of the Commonwealth;
(b) the holder of a permanent visa within
the meaning of section 30(1) of the
Migration Act 1958 of the
Commonwealth;
(c) a New Zealand citizen who is the
holder of a special category visa within
the meaning of section 32(1) of the
Migration Act 1958 of the
Commonwealth;
foreign purchaser means a transferee (for the
purposes of Chapter 2) or a person who
makes a relevant acquisition (for the
purposes of Chapter 3), and that transferee or
person is—
(a) a foreign natural person; or
(b) a foreign corporation; or
(c) the trustee of a foreign trust;
foreign trust means a trust in which one of the
following persons has a substantial interest
in the trust estate—
(a) a foreign corporation;
(b) a foreign natural person;
(c) another person that holds the
substantial interest as trustee of another
foreign trust;
land-related interest means an interest or estate in
land referred to in section 10(1)(a) to (ac)
or (e);
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potential voting power has the same meaning as
in the Foreign Acquisitions and Takeovers
Act 1975 of the Commonwealth;
residential property means land in Victoria—
(a) on which there is a building affixed
that—
(i) is designed and constructed solely
or primarily for residential
purposes; and
(ii) may lawfully be used as a place of
residence; or
(b) on which a foreign purchaser intends to
affix a building that—
(i) is designed and constructed solely
or primarily for residential
purposes; and
(ii) may lawfully be used as a place of
residence;
substantial interest has the meaning given by
section 3B;
voting power has the same meaning as in the
Foreign Acquisitions and Takeovers Act
1975 of the Commonwealth;".
15 New sections 3A to 3F inserted
After section 3 of the Duties Act 2000 insert—
"3A What is a controlling interest in a foreign
corporation?
(1) For the purposes of the definition of foreign
corporation in section 3(1), a person has a
controlling interest in the foreign
corporation if the person—
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(a) is in a position to control more than
50% of the voting power in the
corporation; or
(b) is in a position to control more than
50% of the potential voting power in
the corporation; or
(c) has an interest in more than 50% of the
issued shares in the corporation; or
(d) is a person in respect of whom the
Commissioner has made a
determination under section 3C.
(2) Subsection (1) applies whether or not the
person has the controlling interest alone or
together with an associated person.
(3) For the purposes of this section, a reference
to control of the voting power in a foreign
corporation is a reference to control that is
direct or indirect, including control that is
exercisable as a result or by means of
arrangements or practices, whether or not
having legal or equitable force, and whether
or not based on legal or equitable rights.
(4) For the purposes of this section, to determine
how much potential voting power a person is
in a position to control at a particular time,
section 14(3) of the Foreign Acquisitions and
Takeovers Act 1975 of the Commonwealth
is to be applied.
3B What is a substantial interest in a trust
estate?
(1) For the purposes of the definition of foreign
trust in section 3(1), a person has a
substantial interest in the trust estate if—
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(a) the person has a beneficial interest of
more than 50% of the capital of the
estate of the foreign trust; or
(b) the Commissioner has made a
determination under section 3D in
respect of the person.
(2) If, under the terms of a foreign trust, a trustee
has a power or discretion as to the
distribution of the capital of the trust estate
to a person or a member of a class of person,
any such person is taken to have a beneficial
interest in the maximum percentage of the
capital of the foreign trust estate that the
trustee is empowered to distribute to that
person.
(3) Subsection (1) applies whether or not the
person has the substantial interest alone or
together with an associated person.
3C Commissioner may determine person has
a controlling interest in a corporation
(1) For the purposes of section 3A(1)(d), the
Commissioner may determine that a person
has a controlling interest in a corporation if,
in the Commissioner's opinion, the person
has the capacity to determine or influence,
directly or indirectly, the outcome of
decisions about the corporation's financial
and operating policies, taking into account—
(a) the practical influence the person can
exert in addition to any rights the
person can enforce; and
(b) any practice or behaviour affecting the
corporation's financial or operating
polices (even if that practice or pattern
of behaviour involves the breach of an
agreement or a breach of trust).
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(2) This section applies regardless of any
interests that any other person has in the
corporation.
3D Commissioner may determine person has
a substantial interest in a trust
(1) For the purposes of section 3B(1)(b), the
Commissioner may determine that a person
has a substantial interest in a trust estate if, in
the Commissioner's opinion, the person has
the capacity to determine or influence the
outcome of decisions about the
administration and conduct of the trust,
taking into account—
(a) the practical influence the person can
exert in addition to any rights the
person can enforce; and
(b) any practice or behaviour affecting the
trustee's administration and conduct of
the trust (even if that practice or pattern
of behaviour involves the breach of an
agreement or a breach of trust).
(2) This section applies regardless of any
interests that any other person has in the trust
estate.
3E Exemptions from holding controlling
interests in foreign corporations or
substantial interests in trust estates of
foreign trusts
(1) Despite sections 3A, 3B, 3C and 3D, a
person is taken not to have a controlling
interest in a foreign corporation, or a
substantial interest in the trust estate of a
foreign trust, if the person has an exemption
under subsection (2).
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(2) The Treasurer, for the purposes of
subsection (1), may, in writing, exempt a
person who has a controlling interest in a
foreign corporation, or a substantial interest
in the trust estate of a foreign trust, if the
Treasurer is satisfied that, having regard to
any one or more of the following matters,
the person should not be taken to have that
interest—
(a) in the case of a person who has a
controlling interest in a foreign
corporation—
(i) the nature and degree of
ownership and control the person
has in the corporation;
(ii) the practical influence the person
exerts or any rights the person
enforces to determine or
influence, directly or indirectly,
the outcome of decisions about the
corporation's financial and
operating policies;
(iii) any practice or behaviour of the
person affecting the corporation's
financial or operating policies;
(iv) any other relevant circumstances;
(b) in the case of a person who has a
substantial interest in the trust estate of
a foreign trust—
(i) the nature and degree of the
person's beneficial interest in the
capital of the estate of the trust;
(ii) the practical influence the person
exerts or any rights the person
enforces to determine or
influence, directly or indirectly,
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the outcome of decisions about the
administration and conduct of the
trust;
(iii) any practice or behaviour of the
person affecting the trustee's
administration and conduct of the
trust;
(iv) any other relevant circumstances.
(3) At least once every 6 months the Treasurer
must cause to be laid before each House of
Parliament, and publish on an appropriate
government website, a report setting out—
(a) in respect of the exemptions (if any)
granted by the Treasurer under
subsection (2) during the period
covered by the report—
(i) the number of exemptions; and
(ii) the name of each foreign
corporation or foreign trust in
relation to which an exemption
was granted; and
(iii) the value of each exemption,
being the amount of duty
foregone, or likely to be foregone,
by the State because of the
exemption; and
(b) in respect of the exemptions (if any)
granted by the Commissioner or a
member of staff of the State Revenue
Office during the period covered by
the report under a delegation under
section 3F—
(i) the number of exemptions; and
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Part 2—Amendment of Duties Act 2000
(ii) the total value of the exemptions,
being the total amount of duty
foregone, or likely to be foregone,
by the State because of the
exemptions.
(4) The Treasurer must issue guidelines for the
exercise of the power of exemption under
subsection (2).
(5) The Treasurer must cause guidelines issued
under subsection (4) to be published in the
Government Gazette.
(6) Guidelines issued under subsection (4) are
not a legislative instrument within the
meaning of the Subordinate Legislation
Act 1994.
3F Delegation of exemption power
(1) The Treasurer may delegate, by instrument,
to the Commissioner—
(a) the power of the Treasurer to exempt a
person under section 3E(2);
(b) the power to delegate the power
delegated under paragraph (a).
(2) If power has been delegated under
subsection (1)(b), the Commissioner may,
subject to the terms of the instrument of
delegation, sub-delegate, by instrument, to a
member of staff of the State Revenue Office
the power that is the subject of the
delegation, other than the power of
sub-delegation.
(3) Subject to subsection (4), sections 42
and 42A of the Interpretation of
Legislation Act 1984 apply in relation to a
sub-delegation in the same manner as they
apply in relation to a delegation.
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Part 2—Amendment of Duties Act 2000
(4) Despite section 42A(1)(a) of the
Interpretation of Legislation Act 1984, the
Treasurer cannot exercise the power to
exempt a person under section 3E(2) while a
delegation under subsection (1)(a) is in
effect.
(5) In this section—
member of staff of the State Revenue Office
means—
(a) an employee referred to in
section 67 of the Taxation
Administration Act 1997; or
(b) a consultant or contractor engaged
under section 68 of that Act.".
16 New section 18A inserted
After section 18 of the Duties Act 2000 insert—
"18A Foreign purchasers—duty in respect of
change of use of land
(1) This section applies if—
(a) on or after 1 July 2015, under a dutiable
transaction, a land-related interest in
property that is not residential property
is transferred to a foreign purchaser;
and
(b) after the land-related interest is
transferred, the foreign purchaser forms
an intention to affix a building on the
land that is subject to the land-related
interest that—
(i) is designed and constructed solely
or primarily for residential
purposes; or
(ii) may lawfully be used as a place of
residence.
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Part 2—Amendment of Duties Act 2000
(2) Within 14 days after the foreign purchaser
forms the intention, the foreign purchaser
must lodge with the Commissioner a
statement of the foreign purchaser's
intention.
(3) Within 30 days after the foreign purchaser
forms the intention, the foreign purchaser
must pay duty in relation to the land-related
interest in residential property at a rate of 3%
of the dutiable value of the interest at the
time that it was transferred.".
17 New section 19A inserted
After section 19 of the Duties Act 2000 insert—
"19A Foreign purchasers not entitled to
concessions
A foreign purchaser is not entitled to a
concession from duty or a concessional rate
of duty under Part 5 in respect of any duty
determined in accordance with the rate set
out in section 18A or 28A.".
18 What is the consideration for the transfer of
dutiable property?
After section 21(4A) of the Duties Act 2000
insert—
"(4B) Subsection (3) or (4) does not apply when
determining the duty chargeable at the rate
set out in section 18A or 28A.".
19 Partitions of land
At the end of section 27 of the Duties Act 2000
insert—
"(2) Subsection (1) does not apply when
determining the duty chargeable at the rate
set out in section 18A or 28A.".
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20 New section 28A inserted
After section 28 of the Duties Act 2000 insert—
"28A Rate for additional duty chargeable for
foreign purchasers—residential property
(1) This section applies to a dutiable transaction
under which a land-related interest in
residential property is transferred to a foreign
purchaser.
(2) In addition to the duty chargeable under
section 28, duty is also chargeable at a rate
of 3% of the dutiable value of the landrelated interest in residential property.".
21 Provisions for determining consideration
After section 32V(4B) of the Duties Act 2000
insert—
"(4C) Subsection (3) or (4) does not apply when
determining the duty chargeable at the rate
set out in section 18A or 28A.".
22 Imposition of duty
(1) At the end of section 70 of the Duties Act 2000
insert—
"(2) In the case of a foreign purchaser, in respect
of a relevant acquisition of an interest in a
landholder that holds a land-related interest
in residential property, the duty chargeable is
the duty determined at the same rates as for a
dutiable transaction under which a landrelated interest in residential property is
transferred to a foreign purchaser under
Chapter 2.".
(2) In the note to section 70 of the Duties Act 2000,
after "Chapter 2" insert ", and in relation to
foreign purchasers, also at the rate set out in
section 28A in Chapter 2".
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23 How duty is charged on relevant acquisitions in
public landholders—concessional rate
After section 87(3) of the Duties Act 2000
insert—
"(3A) Subsection (1) does not apply when
determining the duty chargeable at the rate
set out in section 28A.".
24 Amendment of Schedule 2
After clause 32 in Schedule 2 to the Duties Act
2000 insert—
"33 State Taxation Acts Amendment Act 2015
(1) Chapter 2, as in force immediately before
1 July 2015, applies in respect of any
dutiable transaction entered into before that
day under which a land-related interest in
residential property is transferred to a foreign
purchaser.
(2) Chapter 3, as in force immediately before
1 July 2015, applies in respect of any
relevant acquisition of an interest in a
landholder that holds a land-related interest
in residential property if the agreement or
arrangement for the relevant acquisition was
entered into by a foreign purchaser before
that day.".
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Part 3—Amendment of Land Tax Act 2005
25 Definitions
In section 3(1) of the Land Tax Act 2005 insert
the following definitions—
"absentee beneficiary, of a trust, means—
(a) a natural person absentee who, or an
absentee corporation that—
(i) has a beneficial interest in land
subject to a fixed trust; or
(ii) is a unitholder in a unit trust
scheme; or
(iii) is a specified beneficiary of a
discretionary trust; or
(b) a person who is not an absentee person
who—
(i) has a beneficial interest in land
subject to a fixed trust and holds
that interest as a trustee of an
absentee trust; or
(ii) is a unitholder in a unit trust
scheme and holds unitholdings in
that unit trust scheme as a trustee
of an absentee trust; or
(iii) is a specified beneficiary of a
discretionary trust in the capacity
as a trustee of an absentee trust;
absentee controlling interest has the meaning
given in section 3A;
absentee corporation means—
(a) a corporation that is incorporated
outside Australia; or
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(b) a corporation in which an absentee
person has an absentee controlling
interest;
absentee owner means an absentee person who is
an owner of land;
absentee person means—
(a) a natural person absentee; or
(b) an absentee corporation; or
(c) a trustee of an absentee trust;
absentee trust means a trust under which at least
one absentee beneficiary—
(a) has a beneficial interest in land subject
to a fixed trust; or
(b) is a unitholder in a unit trust scheme; or
(c) is a specified beneficiary of a
discretionary trust;
Australian citizen or resident means—
(a) an Australian citizen within the
meaning of the Australian Citizenship
Act 2007 of the Commonwealth; or
(b) the holder of a permanent visa within
the meaning of section 30(1) of the
Migration Act 1958 of the
Commonwealth; or
(c) a New Zealand citizen who is the
holder of a special category visa within
the meaning of section 32(1) of the
Migration Act 1958 of the
Commonwealth;
natural person absentee means a natural person
who is not an Australian citizen or resident
and—
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Part 3—Amendment of Land Tax Act 2005
(a) who does not ordinarily reside in
Australia; and
(b) who—
(i) was absent from Australia on
31 December in the year
immediately preceding the tax
year; or
(ii) in the year immediately preceding
the tax year, was absent from
Australia for a period of at least
6 months or for periods that when
added together equal a period of at
least 6 months;
specified beneficiary, of a discretionary trust,
means a beneficiary who is specifically
named in the trust deed or specifically
declared in writing pursuant to the trust deed
as a beneficiary to or in whom, by the terms
of the trust, the whole or any part of the trust
income or property may be distributed or
vested—
(a) in the event of the exercise of a power
or discretion in favour of the
beneficiary (whether or not that power
is presently exercisable); or
(b) in the event that a discretion conferred
under the trust is not exercised;".
26 New sections 3A to 3C inserted
After section 3 of the Land Tax Act 2005
insert—
"3A Absentee controlling interest
For the purposes of this Act, an absentee
person holds an absentee controlling
interest in a corporation if—
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(a) the absentee person, or that person
acting together with another absentee
person, can control the composition of
the board of the corporation; or
(b) the absentee person, or that person
acting together with another absentee
person, 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
corporation; or
(c) the absentee person holds, or that
person acting together with another
absentee person hold, more than
50% of the issued share capital of a
corporation.
3B Exemptions from holding absentee
controlling interests
(1) Despite section 3A, an absentee person is
taken not to hold an absentee controlling
interest in a corporation if the absentee
person holds an exemption under
subsection (2).
(2) The Treasurer, for the purposes of
subsection (1), may, in writing, exempt an
absentee person who holds an absentee
controlling interest in a corporation if the
Treasurer is satisfied that, having regard to
any one or more of the following matters, the
absentee person should not be taken to hold
that interest—
(a) the nature and degree of ownership and
control the absentee person, or that
person acting together with another
absentee person, has in the corporation;
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Part 3—Amendment of Land Tax Act 2005
(b) the practical influence the absentee
person, or that person acting together
with another absentee person, exerts to
determine or influence, directly or
indirectly, the outcome of decisions
about the corporation's financial and
operating policies;
(c) any practice or behaviour of the
absentee person, or that person acting
together with another absentee person,
which affects the corporation's financial
or operating policies;
(d) any other relevant circumstances.
(3) At least once every 6 months the Treasurer
must cause to be laid before each House of
Parliament, and publish on an appropriate
government website, a report setting out—
(a) in respect of the exemptions (if any)
granted by the Treasurer under
subsection (2) during the period
covered by the report—
(i) the number of exemptions; and
(ii) the name of each corporation in
relation to which an exemption
was granted; and
(iii) the value of each exemption,
being the amount of land tax
foregone, or likely to be foregone,
by the State because of the
exemption; and
(b) in respect of the exemptions (if any)
granted by the Commissioner or a
member of staff of the State Revenue
Office during the period covered by
the report under a delegation under
section 3C—
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(i) the number of exemptions; and
(ii) the total value of the exemptions,
being the total amount of land tax
foregone, or likely to be foregone,
by the State because of the
exemptions.
(4) The Treasurer must issue guidelines for the
exercise of the power of exemption under
subsection (2).
(5) The Treasurer must cause guidelines issued
under subsection (4) to be published in the
Government Gazette.
(6) Guidelines issued under subsection (4) are
not a legislative instrument within the
meaning of the Subordinate Legislation
Act 1994.
3C Delegation of exemption power
(1) The Treasurer may delegate, by instrument,
to the Commissioner—
(a) the power of the Treasurer to exempt an
absentee person under section 3B(2);
(b) the power to delegate the power
delegated under paragraph (a).
(2) If power has been delegated under
subsection (1)(b), the Commissioner may,
subject to the terms of the instrument of
delegation, sub-delegate, by instrument, to a
member of staff of the State Revenue Office
the power that is the subject of the
delegation, other than the power of
sub-delegation.
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(3) Subject to subsection (4), sections 42
and 42A of the Interpretation of
Legislation Act 1984 apply in relation to a
sub-delegation in the same manner as they
apply in relation to a delegation.
(4) Despite section 42A(1)(a) of the
Interpretation of Legislation Act 1984, the
Treasurer cannot exercise the power to
exempt an absentee person under
section 3B(2) while a delegation under
subsection (1)(a) is in effect.
(5) In this section—
member of staff of the State Revenue Office
means—
(a) an employee referred to in
section 67 of the Taxation
Administration Act 1997; or
(b) a consultant or contractor engaged
under section 68 of that Act.".
27 Holders of beneficial interests
In section 18 of the Land Tax Act 2005, after
"Division 2A" insert "or 2AB".
28 Who is liable for special land tax?
Insert the following note at the foot of section 31
of the Land Tax Act 2005—
"Note
See section 35(1A) and (2).".
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Part 3—Amendment of Land Tax Act 2005
29 What is the rate of land tax?
(1) For the note at the foot of section 35(1) of the
Land Tax Act 2005 substitute—
"Note
Schedule 1 sets out 5 different rates of land tax. Part 1 sets
out the general rates of land tax, Part 2 sets out the rate of
land tax on transmission easements, Part 3 sets out the land
tax surcharge rates for trusts (see also Division 2A of this
Part), Part 4 sets out the general absentee owner land tax
surcharge rates and Part 5 sets out the land tax surcharge
rates for absentee trusts (see also Division 2AB of this
Part).".
(2) After section 35(1) of the Land Tax Act 2005
insert—
"(1A) In the case of land owned by an absentee
owner, the rate of special land tax is 5·5% of
the taxable value of the land.".
(3) In section 35(2) of the Land Tax Act 2005, for
"The rate" substitute "In any other case, the rate".
30 Assessment of joint owners of land
(1) At the foot of section 38(1) of the Land Tax Act
2005 insert—
"Note
Joint owners of taxable land include absentee owners who
own land jointly and absentee owners who own land jointly
with owners who are not absentee owners.".
(2) In section 38(2) of the Land Tax Act 2005, for
"Joint" substitute "Subject to subsections (2A)
and (2B), joint".
(3) After section 38(2) of the Land Tax Act 2005
insert—
"(2A) In the case where all of the joint owners of
taxable land are absentee owners, the joint
owners are to be jointly assessed for land tax
on the land as if it were owned by an
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Part 3—Amendment of Land Tax Act 2005
absentee owner who is not a trustee of an
absentee trust.
Note
Under subsection (2A), the joint absentee owners will
be jointly assessed for land tax at the applicable rates
set out in Part 4 of Schedule 1. In addition,
subsections (3) to (6) apply in relation to how each
joint owner is to be separately assessed.
(2B) In the case where at least one but not all of
the joint owners of taxable land is not an
absentee owner, the joint owners are to be
jointly assessed for land tax on the land as if
it were owned by an owner who was not an
absentee owner.
Note
Under subsection (2B), the joint owners will be
jointly assessed for land tax at the applicable rates
set out in Part 1 of Schedule 1. In addition,
subsections (3) to (6) apply in relation to how each
joint owner is to be separately assessed.".
(4) In section 38(3) of the Land Tax Act 2005, for
"Each joint owner of taxable land is also"
substitute "In addition, each joint owner of
taxable land is".
(5) In section 38(4)(a) and (5) of the Land Tax
Act 2005, after "subsection (2)" insert ", (2A)
or (2B)".
(6) In section 38(4)(b) of the Land Tax Act 2005, for
"E is the amount of land tax assessed under
subsection (3)."
substitute—
"E is—
(a) in the case where subsection (2) or (2A)
applies, the amount of land tax assessed
under subsection (3);
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Part 3—Amendment of Land Tax Act 2005
(b) in the case where subsection (2B)
applies—
(i) if the joint owner is not an
absentee owner, the amount of
land tax assessed under
subsection (3); or
(ii) if the joint owner is an absentee
owner, the amount of land tax that
would have been assessed under
subsection (3) if that owner were
not an absentee owner or a trustee
of a trust.".
(7) In section 38(6) of the Land Tax Act 2005—
(a) after "trust" (where first occurring) insert
"or an absentee trust";
(b) after "subsection (2)" insert ", (2A) or (2B)".
31 Joint assessments in the case of principal place of
residence land
In section 39(1)(a) of the Land Tax Act 2005,
after "section 38(2)" insert ", (2A) or (2B)".
32 New Division 2AB of Part 3 inserted
After section 46I of the Land Tax Act 2005
insert—
"Division 2AB—Land held on trust
under absentee trusts
46IA Land tax surcharge for absentee trusts
(1) A person who is the owner of land as trustee
of an absentee trust is liable for land tax
determined—
(a) if the absentee trust is a fixed trust or a
unit trust scheme, using the formula—
A  B   C  0·5%
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Part 3—Amendment of Land Tax Act 2005
where—
A is the amount of assessed land tax
that is payable;
B is the amount determined by
applying the applicable rate set
out in Part 3 of Schedule 1;
C is—
(a) in the case of an absentee
trust that is a fixed trust, the
value of all land subject to
the trust that would be taken
under section 46IB to be
owned by an absentee
beneficiary if a notice were
in force under section 46B in
respect of the beneficial
interests of that absentee
beneficiary in that land; or
(b) in the case of an absentee
trust that is a unit trust
scheme, the value of all
taxable land subject to the
scheme that would be taken
under section 46IC to be
owned by an absentee
beneficiary if a notice were
in force under section 46C in
respect of the unitholdings in
the scheme held by that
absentee beneficiary; and
(b) if the absentee trust is a discretionary
trust, at the applicable rate set out in
Part 5 of Schedule 1.
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Part 3—Amendment of Land Tax Act 2005
(2) The trustee is to be assessed for land tax on
the whole of the land subject to the absentee
trust as if the land were the only land owned
by the trustee for the purposes of—
(a) the variable "B" in the formula in
subsection (1)(a); and
(b) subsection (1)(b).
(3) This section does not apply to—
(a) land subject to an excluded trust; or
(b) land subject to an administration trust;
or
(c) child maintenance land.
(4) This section is subject to sections 46IB, 46IC
and 46IE.
46IB Land tax for absentee fixed trust if
beneficial interests notified to
Commissioner
(1) If a notice is in force under section 46B for a
fixed trust (that is an absentee trust) and all
of the beneficial interests in the land are
beneficial interests of absentee
beneficiaries—
(a) an absentee beneficiary of the trust is
taken, for the purposes of this Act, to be
the owner (but not to the exclusion of
the trustee) of land subject to the trust
that bears the same proportion to the
whole of the land subject to the trust as
the absentee beneficiary's beneficial
interest in land subject to the trust bears
to the total beneficial interests in land
subject to the trust, and is to be
assessed for land tax on that land
accordingly, together with any other
taxable land owned by the absentee
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Part 3—Amendment of Land Tax Act 2005
beneficiary, at the applicable rate set
out in Part 4 of Schedule 1; and
(b) the trustee of the trust is to be assessed
for land tax on the whole of the land
subject to the trust at the applicable rate
set out in Part 4 of Schedule 1, as if the
land were the only land owned by the
trustee.
(2) There is to be deducted from the land tax
payable under subsection (1)(a) by an
absentee beneficiary an amount (if any)
necessary to avoid double taxation, being the
lesser of—
(a) the amount determined by the
formula—
A B
where—
A is the proportion of the absentee
beneficiary's beneficial interest in
land subject to the trust to the total
beneficial interests in land subject
to the trust;
B is the total amount of tax
assessed on the trustee under
subsection (1)(b); and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the absentee beneficiary is
taken by subsection (1)(a) to be
the owner;
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Part 3—Amendment of Land Tax Act 2005
D is the total taxable value of all
taxable land owned by the
absentee beneficiary;
E is the amount of tax assessed on
the absentee beneficiary under
subsection (1)(a).
(3) If a notice is in force under section 46B for a
fixed trust (that is an absentee trust) for all of
the beneficial interests in the land and at
least one, but not all, of those interests is a
beneficial interest of a beneficiary who is not
an absentee beneficiary—
(a) a beneficiary of the trust is taken, for
the purposes of this Act, to be the
owner (but not to the exclusion of the
trustee) of land subject to the trust that
bears the same proportion to the whole
of the land subject to the trust as the
beneficiary's beneficial interest in land
subject to the trust bears to the total
beneficial interests in land subject to
the trust, and is to be assessed for land
tax on that land accordingly, together
with any other taxable land owned by
the beneficiary—
(i) in the case of an absentee
beneficiary, at the applicable rate
set out in Part 4 of Schedule 1;
and
(ii) in the case of any other
beneficiary, at the applicable rate
set out in Part 1 of Schedule 1;
and
(b) the trustee of the trust is to be assessed
for land tax on the whole of the land
subject to the trust using the formula—
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Part 3—Amendment of Land Tax Act 2005
A  B   C  0·5%
where—
A is the amount of assessed land tax
that is payable;
B is the amount determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
trust (as if that land were the only
land owned by the trustee);
C is the taxable value of all land
owned by an absentee beneficiary.
(4) There is to be deducted from the land tax
payable under subsection (3)(a) by an
absentee beneficiary an amount (if any)
necessary to avoid double taxation, being the
lesser of—
(a) the amount determined by the
formula—
A
 B   C  0·5%
where—
A is the proportion of the absentee
beneficiary's beneficial interest in
land subject to the trust to the total
beneficial interests in land subject
to the trust;
B is that part of the total amount of
tax assessed on the trustee under
subsection (3)(b) determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
trust (as if that land were the only
land owned by the trustee);
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Part 3—Amendment of Land Tax Act 2005
C is the taxable value of the land of
which the absentee beneficiary is
taken by subsection (3)(a) to be
the owner; and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the absentee beneficiary is
taken by subsection (3)(a) to be
the owner;
D is the total taxable value of all
taxable land owned by the
absentee beneficiary;
E is the amount of tax assessed on
the absentee beneficiary under
subsection (3)(a)(i).
(5) There is to be deducted from the land tax
payable under subsection (3)(a) by a
beneficiary who is not an absentee
beneficiary an amount (if any) necessary to
avoid double taxation, being the lesser of—
(a) the amount determined by the
formula—
A B
where—
A is the proportion of the
beneficiary's beneficial interest in
land subject to the trust to the total
beneficial interests in land subject
to the trust;
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B is that part of the total amount of
tax assessed on the trustee under
subsection (3)(b) determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
trust (as if that land were the only
land owned by the trustee); and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the beneficiary is taken by
subsection (3)(a) to be the owner;
D is the total taxable value of all
taxable land owned by the
beneficiary;
E is the amount of tax assessed on
the beneficiary under
subsection (3)(a)(ii).
(6) Subsection (1)(a) or (3)(a) does not apply to
a beneficiary who holds a beneficial interest
as trustee of another trust.
Note
Under section 46ID(1)(a) such a person is taken to be
the owner of land.
46IC Land tax for absentee unit trust scheme if
unitholdings notified to Commissioner
(1) If a notice is in force under section 46C for
all of the unitholdings in a unit trust scheme
(that is an absentee trust) and all of those
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unitholdings are held by unitholders who are
absentee beneficiaries—
(a) a unitholder in the scheme is taken, for
the purposes of this Act other than
Division 1 of Part 4, to be the owner
(but not to the exclusion of the trustee)
of land subject to the scheme that bears
the same proportion to the whole of the
land subject to the scheme as the
unitholder's unitholding in the scheme
bears to the total unitholdings in the
scheme, and is to be assessed for land
tax on that land accordingly, together
with any other taxable land owned by
the unitholder, at the applicable rate set
out in Part 4 of Schedule 1; and
(b) the trustee of the scheme is to be
assessed for land tax on the whole of
the land subject to the scheme at the
applicable rate set out in Part 4 of
Schedule 1, as if the land were the only
land owned by the trustee.
(2) There is to be deducted from the land tax
payable under subsection (1)(a) by an
absentee beneficiary an amount (if any)
necessary to avoid double taxation, being the
lesser of—
(a) the amount determined by the
formula—
A B
where—
A is the proportion of the
unitholder's unitholding in the
scheme to the total unitholdings in
the scheme;
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B is the total amount of tax
assessed on the trustee under
subsection (1)(b); and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the unitholder is taken by
subsection (1)(a) to be the owner;
D is the total taxable value of all
taxable land owned by the
unitholder;
E is the amount of tax assessed on
the unitholder under
subsection (1)(a).
(3) If a notice is in force under section 46C for
all of the unitholdings in a unit trust scheme
(that is an absentee trust) and at least one,
but not all, of those unitholdings is held by a
unitholder who is not an absentee
beneficiary—
(a) a unitholder in the scheme is taken, for
the purposes of this Act other than
Division 1 of Part 4, to be the owner
(but not to the exclusion of the trustee)
of land subject to the scheme that bears
the same proportion to the whole of the
land subject to the scheme as the
unitholder's unitholding in the scheme
bears to the total unitholdings in the
scheme, and is to be assessed for land
tax on that land accordingly, together
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with any other taxable land owned by
the unitholder—
(i) in the case of a unitholder who is
an absentee beneficiary, at the
applicable rate set out in Part 4 of
Schedule 1; and
(ii) in the case of any other unitholder,
at the applicable rate set out in
Part 1 of Schedule 1; and
(b) the trustee of the scheme is to be
assessed for land tax on the whole of
the land subject to the scheme using the
formula—
A  B  (C  0·5%)
where—
A is the amount of assessed land tax
that is payable;
B is the amount determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
scheme (as if that land were the
only land owned by the trustee);
C is the taxable value of all taxable
land subject to the scheme owned
by a unitholder who is an absentee
beneficiary.
(4) There is to be deducted from the land tax
payable under subsection (3)(a) by a
unitholder who is an absentee beneficiary an
amount (if any) necessary to avoid double
taxation, being the lesser of—
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(a) the amount determined by the
formula—
A
 B  (C  0·5%)
where—
A is the proportion of the
unitholder's unitholding in the
scheme to the total unitholdings in
the scheme;
B is that part of the total amount of
tax assessed on the trustee under
subsection (3)(b) determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
scheme (as if that land were the
only land owned by the trustee);
C is the taxable value of the land of
which the unitholder is taken by
subsection (3)(a) to be the owner;
and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the unitholder is taken by
subsection (3)(a) to be the owner;
D is the total taxable value of all
taxable land owned by the
unitholder;
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E is the amount of tax assessed on
the unitholder under
subsection (3)(a)(i).
(5) There is to be deducted from the land tax
payable under subsection (3)(a) by a
unitholder who is not an absentee beneficiary
an amount (if any) necessary to avoid double
taxation, being the lesser of—
(a) the amount determined by the
formula—
A B
where—
A is the proportion of the
unitholder's unitholding in the
scheme to the total unitholdings in
the scheme;
B is that part of the total amount of
tax assessed on the trustee under
subsection (3)(b) determined by
applying the applicable rate set
out in Part 1 of Schedule 1 on the
whole of the land subject to the
scheme (as if that land were the
only land owned by the trustee);
and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the unitholder is taken by
subsection (3)(a) to be the owner;
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D is the total taxable value of all
taxable land owned by the
unitholder;
E is the amount of tax assessed on
the unitholder under
subsection (3)(a)(ii).
(6) Subsection (1)(a) or (3)(a) does not apply to
a unitholder who holds units as trustee of
another trust.
Note
Under section 46ID(1)(b) such a person is taken to be
the owner of land.
46ID Land tax for beneficiary/trustees
(1) For the purposes of this Act—
(a) a person who holds a beneficial interest
in land subject to a fixed trust (that is
an absentee trust) in respect of which a
notice is in force under section 46B
(the first trust) as trustee of another
trust (the second trust) is taken, for the
purposes of this Act, to be the owner of
land subject to the first trust that bears
the same proportion to the whole of the
land subject to the first trust as the
person's beneficial interest in the land
subject to the first trust bears to the
total beneficial interests in land subject
to the first trust; and
(b) a person who holds units in a unit trust
scheme (that is an absentee trust) in
respect of which a notice is in force
under section 46C (the first scheme) as
trustee of another trust (the second
trust) is taken, for the purposes of this
Act other than Division 1 of Part 4, to
be the owner of land subject to the first
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scheme that bears the same proportion
to the whole of the land subject to the
first scheme as the person's unitholding
in the first scheme bears to the total
unitholdings in the first scheme.
(2) For the purposes of this section, a person
referred to in subsection (1) is called a
beneficiary/trustee.
(3) There is to be deducted from any land tax
payable by a beneficiary/trustee on land
that is subject to the second trust an amount
(if any) necessary to avoid double taxation,
being the lesser of—
(a) the amount determined by the
formula—
A
 B  (C  0·5%)
where—
A is—
(a) the proportion of the
beneficiary/trustee's
beneficial interest in land
subject to the first trust to the
total beneficial interests in
land subject to the first trust;
or
(b) the proportion of the
beneficiary/trustee's
unitholding in the first
scheme to the total
unitholdings in the first
scheme;
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B is the total amount of tax assessed
on the trustee of the first trust or
the first scheme on the whole of
the land subject to the first trust or
first scheme;
C is the taxable value of all taxable
land owned by the
beneficiary/trustee; and
(b) the amount determined by the
formula—
C
 E
D
where—
C is the taxable value of the land of
which the beneficiary/trustee is
taken by subsection (1) to be the
owner;
D is the total taxable value of all
taxable land owned by the
beneficiary/trustee that is subject
to the second trust;
E is the amount of tax assessed
under this Act on the
beneficiary/trustee in respect of all
taxable land owned by the
beneficiary/trustee that is subject
to the second trust.
46IE Land tax for absentee discretionary trust
with nominated beneficiary
(1) This section applies if the nomination of a
nominated beneficiary for a discretionary
trust that is an absentee trust is in force under
section 46F.
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(2) The nominated beneficiary is taken, for the
purposes of this Act (other than Division 1 of
Part 4) but for no other purpose, to be the
owner of the pre-2006 land subject to the
trust (but not to the exclusion of the trustee)
and is to be assessed for land tax on that land
accordingly, together with any other taxable
land owned by the nominated beneficiary—
(a) if the nominated beneficiary is an
absentee beneficiary, at the applicable
rate set out in Part 4 of Schedule 1; and
(b) if the nominated beneficiary is not an
absentee beneficiary, at the applicable
rate set out in Part 1 of Schedule 1.
(3) The trustee of the trust is to be assessed for
land tax on the whole of the land subject to
the trust as if the land were the only land
owned by the trustee—
(a) in respect of any pre-2006 land—at the
applicable rate set out in Part 4 of
Schedule 1; and
(b) in respect of any post-2006 land—at the
applicable rate set out in Part 5 of
Schedule 1.
(4) For the purposes of subsection (3), if the
trust property includes both pre-2006 land
and post-2006 land, the trustee is to be
assessed in accordance with the following
formula—

 A  
 B 
L  R 1  T      R 2  T    
 T  
 T 

where—
L is the land tax assessed for the trustee;
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R1 is the applicable rate of land tax set out
in Part 4 of Schedule 1;
R2 is the applicable rate of land tax set out
in Part 5 of Schedule 1;
T is the total taxable value of all taxable
land subject to the trust;
A is the total taxable value of the
pre-2006 land subject to the trust;
B is the total taxable value of the
post-2006 land subject to the trust.
(5) There is to be deducted from any land tax
payable by the nominated beneficiary under
subsection (2) any land tax payable by the
trustee under subsection (3) in respect of
pre-2006 land.
(6) Subsection (2) does not apply if the
nominated beneficiary is the trustee.
46IF Land tax for PPR land if nominated PPR
beneficiary
(1) This section applies if a nomination of a
nominated PPR beneficiary for a unit trust
scheme or discretionary trust that is an
absentee trust is in force under section 46H.
(2) The trustee of the unit trust scheme or
discretionary trust is to be assessed for land
tax on land subject to the scheme or trust—
(a) if that land that is used and occupied as
the principal place of residence of the
nominated PPR beneficiary—
(i) as if the land were the only land
owned by the trustee; and
(ii) at the applicable rate set out in
Part 4 of Schedule 1; or
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(b) if that land that is not used and
occupied as the principal place of
residence of the nominated PPR
beneficiary, at the applicable rate set
out in Part 5 of Schedule 1.
(3) Subsection (2)(a) applies only if the land has
been used and occupied as the principal
place of residence of the nominated PPR
beneficiary—
(a) since 1 July in the year preceding the
tax year in which the nomination for
that PPR beneficiary is lodged under
section 46H; or
(b) if the trustee became owner of the land
on or after 1 July in the year preceding
the tax year in which the nomination
for that PPR beneficiary is lodged
under section 46H, since a later date
during that year.
(4) Subsection (2)(a) does not apply if the land
for which a nomination is in force is used to
carry on a substantial business activity.
(5) In determining whether land is used by a
person to carry on a substantial business
activity, account must be taken of the factors
referred to in section 62(2).".
33 New Division heading inserted into Part 3
Before section 46J of the Land Tax Act 2005
insert—
"Division 2AC—Miscellaneous trust
land provisions".
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34 Trustee's right of reimbursement
In section 46J of the Land Tax Act 2005,
after "trust" (where secondly occurring) insert
"under Division 2A or 2AB".
35 New Division 3A of Part 3 inserted
After Division 3 of Part 3 of the Land Tax Act
2005 insert—
"Division 3A—Land held by related
absentee corporations
50A Land tax surcharge for related absentee
corporations
(1) This section applies if—
(a) for the purposes of this Act, the
Commissioner has treated related
corporations as a single corporation;
and
Note
See section 50.
(b) at least one of those related
corporations is an absentee owner that
is an absentee corporation.
(2) Each of the related corporations is jointly
and severally liable for land tax on the land
all of the corporations own determined using
the following formula—
A  B  (C  0·5%)
where—
A is the amount of assessed land tax that
is payable;
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B is the amount determined by applying
the applicable rate set out in Part 1 of
Schedule 1 on the taxable value of all
of the land owned by the corporations;
C is the taxable value of all of the land
owned by the absentee corporations.".
36 Consequential repeal of definition of specified
beneficiary
In section 64(1) of the Land Tax Act 2005, the
definition of specified beneficiary is repealed.
37 New section 104B inserted
After section 104A of the Land Tax Act 2005
insert—
"104B Notification of absentee owner status
(1) A person who is an absentee owner on
31 December every year must lodge a
written notice with the Commissioner before
15 January in the following year.
(2) A person who ceases to be an absentee
owner in the 2016 tax year, or any tax
year after the 2016 tax year, must lodge a
written notice with the Commissioner before
15 January in the year after the 2016 year or
the relevant tax year.
(3) A notice under this section must be in the
form, contain the information and be
accompanied by any documents or other
evidence determined by the Commissioner.".
38 New Parts 4 and 5 of Schedule 1 inserted
After Part 3 of Schedule 1 to the Land Tax Act
2005 insert—
"Part 4—General absentee owner
surcharge rates of land tax
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4.1 Rate of land tax on land held by absentee
owners
The rate of land tax on land held by an
absentee owner for 2016 and each
subsequent year is set out in Table 4.1.
TABLE 4.1
Column 1
Taxable
value not
less than
Column 2
Taxable
value less
than
$
$
1
0
250 000
Nil
2
250 000
600 000
$1525 and 07% of
the taxable value that
exceeds $250 000
3
600 000
1 000 000
$3975 and 10% of
the taxable value that
exceeds $600 000
4
1 000 000
1 800 000
$7975 and 13% of
the taxable value that
exceeds $1 000 000
5
1 800 000
3 000 000
$18 375 and 18% of
the taxable value that
exceeds $1 800 000
6
3 000 000
Item
Column 3
Rate of land tax
$39 975 and 275% of
the taxable value that
exceeds $3 000 000
Part 5—Surcharge rates of land
tax for absentee trusts
5.1 Rate of land tax on land held by owner
subject to an absentee trust
The rate of land tax for land held by an
owner subject to an absentee trust for 2016
and each subsequent year is set out in
Table 5.1.
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Part 3—Amendment of Land Tax Act 2005
TABLE 5.1
Column 1
Taxable
value not
less than
Column 2
Taxable
value less
than
$
$
1
0
25 000
2
25 000
250 000
$207 and 0875% of
the taxable value that
exceeds $25 000
3
250 000
600 000
$2176 and 1075% of
the taxable value that
exceeds $250 000
4
600 000
1 000 000
$5938 and 1375% of
the taxable value that
exceeds $600 000
5
1 000 000
1 800 000
$11 438 and 1675%
of the taxable value
that exceeds
$1 000 000
6
1 800 000
3 000 000
$24 838 and 12614%
of the taxable value
that exceeds
$1 800 000
7
3 000 000
Item
Column 3
Rate of land tax
Nil
$39 975 and 275% of
the taxable value that
exceeds $3 000 000
".
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Part 4—Amendment of Taxation Administration Act 1997
Part 4—Amendment of Taxation
Administration Act 1997
Division 1—Refunds and offsets
39 Section 20 substituted and new section 20A inserted
For section 20 of the Taxation Administration
Act 1997 substitute—
"20 When must Commissioner make a
refund?
Subject to section 20A, the Commissioner
must refund an overpaid amount if—
(a) the taxpayer has lodged an application
for a refund with the Commissioner in
accordance with section 19; and
(b) the Commissioner finds that an amount
has been overpaid by the taxpayer.
20A Offset of refund against other liability
(1) Instead of making a refund to a taxpayer, the
Commissioner may apply the overpaid
amount—
(a) against any liability of the taxpayer to
the State arising under, or by reason of,
a taxation law or another Act of which
the Commissioner has the general
administration; or
(b) against any future liability of the
taxpayer to the State arising under, or
by reason of, a taxation law.
(2) Despite subsection (1), the Commissioner
must not apply an overpaid amount towards
a future liability unless—
(a) the taxpayer consents in writing; and
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(b) the future liability arises within 60 days
after the day on which refund becomes
payable.
(3) If the taxpayer withdraws consent, the
Commissioner must refund the taxpayer the
overpaid amount.
(4) The Commissioner must refund the taxpayer
any part of an overpaid amount that is not
applied under subsection (1).
(5) This section does not apply in respect of a
refund of a contribution paid under Part 9B
of the Planning and Environment Act
1987.".
40 Refund of amount
After section 115(3) of the Taxation
Administration Act 1997 insert—
"(4) Section 20A applies in respect of a refund
under this section as if it were a refund under
section 20.".
41 Section 116 substituted
For section 116 of the Taxation Administration
Act 1997 substitute—
"116 Interest and successful objection, review
or appeal
(1) In addition to an amount refunded under this
Part, the Commissioner must pay interest on
that amount in relation to the period starting
on the date the taxpayer paid the overpaid
amount or the date the Commissioner made
the assessment to which the objection and
review or appeal relates (whichever is the
later date) and ending on the date of the
refund.
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(2) Subject to subsection (4), in addition to an
amount applied to a taxpayer's existing
liability under this Part, the Commissioner
must pay interest on that amount in relation
to the period starting on the date the taxpayer
paid the overpaid amount or the date the
Commissioner made the assessment to which
the objection and review or appeal relates
(whichever is the later date) and ending on
the date the Commissioner applies the
amount.
(3) Subject to subsection (5), in addition to an
amount applied to a taxpayer's future liability
under this Part, the Commissioner must pay
interest on that amount in relation to the
period starting on the date the taxpayer paid
the overpaid amount or the date the
Commissioner made the assessment to which
the objection and review or appeal relates
(whichever is the later date) and ending on
the date the future liability arises.
(4) Instead of paying interest under subsection
(2), the Commissioner may apply that
interest against the taxpayer's liability
referred to in that subsection.
(5) Instead of paying interest under subsection
(3), the Commissioner may apply that
interest against the taxpayer's future liability
referred to in that subsection if the taxpayer
has given consent under section 20A(2).
(6) The Commissioner must pay the taxpayer
any amount of interest referred to in
subsection (2) or (3) that is not applied under
this section.
(7) The Commissioner must pay interest under
this section on a daily basis calculated at the
market rate referred to in section 25(1)(a).".
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42 Schedule 1 amended
After clause 17 of Schedule 1 to the Taxation
Administration Act 1997 insert—
"18 Applications for refunds
Part 4, as in force immediately before the
day on which Division 1 of Part 4 of the
State Taxation Acts Amendment Act 2015
comes into operation, continues to apply on
and after that day to an application made
under section 19 before that day.
19 Refunds following objections etc.
(1) This clause applies if—
(a) before the commencement day, a
taxpayer lodges an objection under
section 96; and
(b) on or after that day, the Commissioner
is required to refund an amount under
section 115 in respect of the objection
or any review or appeal of the
determination of the objection.
(2) Division 3 of Part 10, as in force
immediately before that day, continues to
apply on and after that day to the amount.
(3) In this clause—
commencement day means the day on which
Division 1 of Part 4 of the State
Taxation Acts Amendment Act 2015
came into operation.".
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43 Consequential amendment—Back to Work Act 2015
For section 56 of the Back to Work Act 2015
substitute—
'56 Offset of refund against other liability
After section 20A(5) of the Taxation
Administration Act 1997 insert—
"(6) This section does not apply in respect
of a liability arising under the Back to
Work Act 2015.".'.
Division 2—Absentee owner land tax surcharge
44 Definitions
In section 3(1) of the Taxation Administration
Act 1997, in the definition of notification
default—
(a) in paragraph (b), for "2005;" substitute
"2005; or"; and
(b) after paragraph (b) insert—
"(c) a failure to give a notice to the
Commissioner in accordance with
section 104B of the Land Tax Act
2005;".
45 Amount of penalty tax
In section 30(2A) of the Taxation
Administration Act 1997, for "or 104A"
substitute ", 104A or 104B".
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Part 5—Repeal of amending Act
Part 5—Repeal of amending Act
46 Repeal of amending Act
This Act is repealed on 1 July 2016.
Note
The repeal of this Act does not affect the continuing operation of
the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
═══════════════
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Endnotes
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
†
Minister's second reading speech—
Legislative Assembly: 7 May 2015
Legislative Council: 28 May 2015
The long title for the Bill for this Act was "A Bill for an Act to amend the
Duties Act 2000, the Land Tax Act 2005 and the Taxation
Administration Act 1997 and to consequentially amend the Back to
Work Act 2015 and for other purposes."
67