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This is a Bill, not an Act. For current law, see the Acts databases.
2018
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Treasurer)
Contents
Page
2018
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Treasurer)
A Bill for
An Act to amend the
The Legislative Assembly for the Australian Capital Territory enacts as
follows:
This Act is the Land Tax Amendment Act 2018
.
This Act commences on 1 July 2018.
Note The naming and commencement provisions automatically commence on
the notification day (see
, s 75 (1)).
This Act amends the
.
Note This Act also amends the Rates Act 2004
(see s 51).
4 Definitions for pt
2
Section 7, definition of rent
before
tenancy
insert
residential
5 Section 7, new definition of residential tenancy agreement
insert
residential tenancy agreement—see the Residential Tenancies Act 1997
, section 6A.
6 Section 7, definition of tenancy agreement
omit
7 Section 7, definition of tenant
substitute
tenant—see the Residential Tenancies Act 1997
, section 6.
8 Section 7, definition of trustee
substitute
trustee does not include a guardian or manager of the property of a person with a legal disability.
9 When is something rented for
pt 2?
Section 8 (1)
omit
land tax,
omit
insert
8A When is land tax payable on parcel of land for pt 2?
(1) For this part, land tax is payable on a parcel of land for a quarter if it is payable on the 1st day of the quarter.
(2) Land tax is taken to be payable on a parcel of land on the 1st day of a quarter if it is not exempt under this part from land tax on that day.
(3) If an exemption under this part stops applying to a parcel of land, land tax is payable on the 1st day of the quarter after the date the exemption stops applying.
12 Imposition of land
tax
Section 9 (1)
substitute
(1) Land tax at the appropriate rate is imposed for a quarter on each parcel of rateable land that is residential land.
(1A) However, land tax is not imposed on a parcel of land that is exempt under section 10 or section 11.
after
section 27 (4)
insert
, (5) or (6), whichever applies
omit
15 Land exempted from s 9
generally
New section 10 (1) (aa)
before paragraph (a), insert
(aa) a parcel of land if exempted under the following provisions:
(i) section 11A (Principal place of residence exemption);
(ii) section 11B (Moving out of principal place of residence);
(iii) section 11C (Moving into principal place of residence);
(iv) section 11D (Exemption after death of owner);
(v) section 11G (Exemption for life tenant);
(vi) section 11H (Exemption if nil or nominal rent paid);
(vii) section 11I (Exemption if land becomes unfit for occupation);
16 Land exempted from land
tax
Section 11 (2)
omit
17 Section 11 (3), definitions of new residential premises and substantial renovations
omit
insert
11A Principal place of residence exemption
(1) This section applies if a parcel of land is, on the 1st day of a quarter, occupied as the principal place of residence of 1 or more owners of the parcel of land.
(2) The parcel of land is exempt from land tax.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
(3) However, for 2 people in a domestic partnership with more than 1 parcel of land, only 1 parcel may be eligible for an exemption under this section unless the commissioner is satisfied the people have separated and there is no reasonable likelihood of cohabitation being resumed.
Note Under s 38 and the Taxation Administration Act
, s 108, the commissioner must give the person a reviewable decision notice in relation to a decision to refuse to exempt a parcel of land because the commissioner is not satisfied 2 people in a domestic partnership have separated.
11B Moving out of principal place of residence
(1) This section applies if an owner of a parcel of land—
(a) occupies the parcel as the principal place of residence; and
(b) stops occupying the parcel as the principal place of residence.
(2) The parcel of land is exempt from land tax for the 1st quarter after the date the owner stops occupying the parcel as the principal place of residence.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
(3) Subsection (2) does not apply if the parcel of land is rented by a tenant.
11C Moving into principal place of residence
(1) This section applies if—
(a) a person becomes the owner of a parcel of land for occupation as the principal place of residence of the person; or
(b) a parcel of land stops being rented so it can be occupied as a principal place of residence by a person.
(2) The parcel of land is exempt from land tax for the 1st quarter after the date—
(a) for subsection (1) (a)—the person became the owner of the parcel; or
(b) for subsection (1) (b)—the parcel stopped being rented.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
(3) Subsection (2) does not apply if the parcel of land is—
(a) not occupied as the principal place of residence of the person within 3 months after the date—
(i) the person became the owner of the parcel; or
(ii) the parcel stopped being rented; or
(b) rented by a tenant, other than the vendor of the parcel of land under a rental arrangement with the person for not longer than 3 months.
11D Exemption after death of owner
(1) This section applies if—
(a) a parcel of land is occupied as the principal place of residence by the owner of the parcel; and
(b) the owner dies.
(2) The parcel of land is exempt from land tax for 2 years after the date of the owner’s death if, during the 2-year period, the parcel is registered in the name of—
(a) the deceased owner; or
(b) the personal representative.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
(3) Before the 2-year period ends, the personal representative may apply, in writing, to the commissioner to extend the period.
(4) The application must set out the grounds on which it is made.
11E Decision on extension of period
(1) On receiving an application under section 11D, the commissioner may extend the period mentioned in section 11D (2).
(2) The commissioner may extend the period if—
(a) the parcel of land—
(i) has not been rented since the date of the owner’s death; and
(ii) is not registered in the name of a person other than the deceased owner or the deceased owner’s personal representative; and
(b) the commissioner is satisfied that—
(i) a person is occupying the parcel of land as the person’s principal place of residence; and
(ii) the person is likely to be a person in whom the deceased owner’s interest in the parcel will vest in accordance with the administration of the deceased’s owner’s estate.
(3) The commissioner must tell the personal representative, in writing, of the decision under subsection (1) and—
(a) if the commissioner extends the period—state the extended period; or
(b) if the commissioner refuses to extend the period—state the reasons for the refusal.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
(4) The commissioner may, by written notice given to the personal representative, revoke an extension if satisfied that the extension should no longer be given.
Note Under s 38 and the Taxation Administration Act
, s 108, the commissioner must also give the person a reviewable decision notice in relation to a decision to—
(a) extend the period for less than the period applied for; or
(b) refuse to extend the period; or
(c) revoke an extension.
11F Applications lodged out of time
(1) The commissioner may allow a person to lodge an application after the 2-year period mentioned in section 11D (Exemption after death of owner).
(2) The person must state fully and in detail, in writing, the circumstances concerning and the reasons for the failure to make the application within the 2-year period.
(3) The commissioner may, after considering the circumstances concerning and the reasons for the failure to make the application within the period—
(a) if satisfied that it is just and fair for the application to be lodged after the period—give permission unconditionally or subject to conditions; or
(b) refuse permission.
(4) The commissioner must tell the person, in writing, of the decision under subsection (3) and—
(a) if the commissioner gives permission subject to a condition—state the condition; or
(b) if the commissioner refuses permission—state the reasons for the refusal.
Note 1 Under s 38 and the Taxation Administration Act
, s 108, the commissioner must also give the person a reviewable decision notice in relation to a decision to—
(a) give permission subject to a condition; or
(b) refuse permission.
Note 2 Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
11G Exemption for life tenant
(1) This section applies if a parcel of land is, on the 1st day of a quarter—
(a) owned by someone other than a corporation or trustee; and
(b) occupied as the principal place of residence of a person having a life or term interest in the parcel of land under a will.
(2) The parcel of land is exempt from land tax.
(3) Subsection (2) does not apply if the parcel of land is rented to the person or another person.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
11H Exemption if nil or nominal rent paid
(1) This section applies if a parcel of land is, on the 1st day of a quarter—
(a) owned by someone other than a corporation or trustee; and
(b) occupied by a person who—
(i) is liable only to pay an amount that is not more than the total amount required for rates, repairs, maintenance and insurance in relation to the parcel; or
(ii) pays no rent for the parcel.
(2) The parcel of land is exempt from land tax.
Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
11I Exemption if land becomes unfit for occupation
(1) This section applies if the commissioner is satisfied that a parcel of land is, or has become, unfit for occupation as a place of residence.
Examples—unfit for occupation
1 property under construction or being substantially renovated
2 property damaged by fire, flood or other natural disaster
3 property maliciously damaged
4 property which is otherwise unlawful to occupy under a territory law
Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act
, s 126 and s 132).
(2) The parcel of land is exempt from land tax after the date the parcel became unfit for occupation as a place of residence, until—
(a) the date a certificate of occupancy is issued for the parcel; or
(b) the commissioner is satisfied that the parcel is fit for occupation as a place of residence.
Note 1 Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.
Note 2 Under s 38 and the Taxation Administration Act
, s 108, the commissioner must give the person a reviewable decision notice in relation to a decision to refuse to exempt a parcel of land because the commissioner is not satisfied the land is, or has become, unfit for occupation as a place of residence.
(3) In this section:
certificate of occupancy—see the Building Act 2004
, dictionary.
19 Application for compassionate case
exemption
Section 12 (1)
substitute
(1) This section applies if, on the 1st day of a quarter, a parcel of residential land is owned by an individual (the owner) and not exempt from land tax.
insert
(4) In this section:
land tax includes a foreign ownership surcharge.
21 Decision on compassionate
application
New section 13 (6)
insert
(6) In this section:
land tax includes a foreign ownership surcharge.
substitute
14 Commissioner to be told of change in circumstances
(1) This section applies in relation to a parcel of land that is—
(a) leased for residential purposes; and
(b) exempt from land tax or a foreign ownership surcharge.
(2) A relevant person for the parcel of land must tell the commissioner—
(a) of any change in the person’s circumstances in relation to the parcel that would cause land tax or a foreign ownership surcharge to become payable for the parcel; and
(b) the date of the change in circumstances.
Note 1 If a form is approved under the Taxation Administration Act
, s 139C, the form must be used.
Note 2 It is an offence to fail to notify the commissioner under this
section (see
, s 67 (2)).
Note 3 It is also an offence to knowingly avoid paying, or disclosing a liability to pay, part or all of an amount of tax (see Taxation Administration Act
, s 65 (1)).
(3) For subsection (2), the relevant person must tell the commissioner not later than 30 days after the date the circumstances change.
Examples—s (2) and s (3)—changed circumstances
1 a change of ownership of the parcel
2 the parcel is owned by an individual as trustee
3 the parcel is owned by a foreign person or an owner subsequently becomes a foreign person
4 the parcel is no longer a principal place of residence
5 the parcel is rented
6 the parcel is otherwise no longer exempt from land tax or a foreign ownership surcharge
Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act
, s 126 and s 132).
(4) In this section:
relevant person, for a parcel of land, means—
(a) the owner of the parcel of land; or
(b) if the owner has authorised an agent to act on the owner’s behalf in relation to the parcel—the agent; or
(c) if the owner has died—the personal representative.
Examples—par (b)—agent
accountant, real estate agent, solicitor
23 Commissioner to be told if
residential land owned by an individual as trustee
Section 14A
omit
24 Multiple dwellings
New
section 15 (1) (ab)
insert
(ab) at least 1 of the dwellings is occupied—
(i) as the principal place of residence of 1 or more owners of the parcel, including an owner who is a personal representative of a deceased person; or
(ii) as the principal place of residence of a person having a life or term interest in the parcel of land under a will; or
(iii) by a person who pays no rent for the parcel, or is liable only to pay an amount that is not more than the total amount required for rates, repairs, maintenance and insurance in relation to the parcel; and
25 Section 15 (5), definition of dwelling
substitute
dwelling means a dwelling within the meaning of the Planning and Development Regulation 2008
, section 5, other than a unit.
26 Land partly owned by corporation or
trustee
Section 16 (1)
substitute
(1) This section applies to a parcel of residential land that is owned by—
(a) 1 or more people who are corporations or trustees; and
(b) 1 or more people who are exempt from paying land tax for the parcel under—
(i) section 10 (Land exempted from s 9 generally), other than section 10 (1) (aa) (vii); or
(ii) section 11 (Land exempted from land tax).
27 Payment of land
tax
Section 17 (6) (b)
omit
28 Section 17 (7), new definition of land tax
insert
land tax includes a foreign ownership surcharge.
insert
Part 2A Foreign ownership surcharge
17A Definitions—pt 2A
In this part:
Australian citizen—see the Australian Citizenship Act 2007
(Cwlth), section 4.
foreign individual means an individual who, on the 1st day of a quarter, is not—
(a) an Australian citizen; or
(b) a permanent resident; or
(c) ordinarily resident in Australia or an external territory.
foreign person—
(a) means—
(i) a foreign individual; or
(ii) a foreign corporation; or
(iii) a trustee of a foreign trust; but
(b) does not include a personal representative of a deceased person.
permanent resident means—
(a) a person who holds a permanent visa under the Migration Act 1958
(Cwlth), section 30 (1); or
(b) a New Zealand citizen who holds a special category visa under the Migration Act 1958
(Cwlth), section 32.
17B What is a foreign corporation?—pt 2A
(1) In this part:
foreign corporation means—
(a) a corporation incorporated outside Australia; or
(b) a corporation in which 1 or more foreign people hold a controlling interest.
(2) A corporation is taken to be a corporation mentioned in subsection (1), definition of foreign corporation, paragraph (b) if, taking their interests together, 1 or more foreign people, or associated people of the foreign people—
(a) are entitled to cast, or control the casting of, 50% or more of the maximum number of votes at a general meeting of the corporation; or
(b) hold 50% or more of the shares in the corporation.
17C What is a foreign trust?—pt 2A
(1) In this part, a trust is a foreign trust if—
(a) for a trust with fixed beneficial interests—taking their interests together, a beneficial interest of 50% or more of the capital of the trust estate is held by—
(i) 1 or more foreign people; or
(ii) an associated person of the foreign person; or
(b) for a discretionary trust—a foreign person is named in the trust deed who, under the terms of the trust, takes the capital of the trust estate if—
(i) there is an exercise of a power or discretion in favour of the person; or
(ii) a power or discretion is not exercised.
(2) In this section:
discretionary trust—see the Duties Act 1999
, dictionary.
17D When is foreign ownership surcharge payable on parcel of land for pt 2A?
(1) For this part, a foreign ownership surcharge is payable on a parcel of land for a quarter if it is payable on the 1st day of the quarter.
(2) A foreign ownership surcharge is taken to be payable on a parcel of land on the 1st day of a quarter if it is not exempt under this part from the foreign ownership surcharge on that day.
(3) If an exemption under this part stops applying to a parcel of land, a foreign ownership surcharge is payable on the 1st day of the quarter after the date the exemption stops applying.
17E Imposition of foreign ownership surcharge
(1) A foreign ownership surcharge at the appropriate rate is imposed for a quarter on each parcel of rateable land that is—
(a) residential land; and
(b) on the 1st day of the quarter, owned by a foreign person.
(2) However, a foreign ownership surcharge is not imposed on a parcel of land that is exempt under—
(a) section 10 (Land exempted from s 9 generally), other than section 10 (1) (aa) (vi); or
(b) section 11 (Land exempted from land tax).
(3) The appropriate rate of the foreign ownership surcharge for a parcel of land is—
(a) for a unit that is part of a unit subdivision—the amount worked out for the parcel as follows:
(b) in any other case—the amount worked out for the parcel as follows:
(4) In this section:
AUV means the average unimproved value of the parcel of land
under the
.
AUVRU means the AUV of the parcel proportionate to the number of residential units in the parcel, worked out as follows:
AUVRUP means the AUVRU adjusted by the applicable percentage rate, worked out as follows:
P means the percentage rate determined under the Taxation Administration Act
, section 139 for the parcel of land.
Note Power to determine a percentage rate under the Taxation Administration Act
includes the power to determine a different rate for different matters or different classes of matters (see Legislation Act
, s 48).
residential unit means a unit that is residential land.
TUE means the total unit entitlement of all the units in the units plan.
TUER means the total unit entitlement of all the residential units in the units plan.
UE means the unit entitlement of the unit.
unit entitlement—see the Unit Titles Act
, section 8.
units plan means a units plan under the Unit Titles Act
, section 7.
17F Land partly owned by foreign people
(1) This section applies to a parcel of residential land if on the 1st day of a quarter—
(a) the parcel is owned by—
(i) 1 or more people who are foreign people; and
(ii) 1 or more people who are not foreign people; and
(b) a foreign ownership surcharge is payable for the parcel.
(2) The appropriate rate of foreign ownership surcharge payable under section 17E for the parcel of land is—
(a) for a unit that is part of a unit subdivision—the amount worked out for the parcel as follows:
(b) in any other case—the amount worked out for the parcel as follows:
(3) In this section:
AI means the value of all interests in the parcel of land.
AUV—see section 9 (4).
AUVRU means the AUV of the parcel proportionate to the number of residential units in the parcel, worked out as follows:
AUVRUP means the AUVRU adjusted by the applicable percentage rate, worked out as follows:
FI means the value of all interests in the parcel or unit held by foreign people.
P—see section 9 (4).
Note Power to determine a percentage rate under the Taxation Administration Act
includes the power to determine a different rate for different matters or different classes of matters (see Legislation Act
, s 48).
residential unit means a unit that is residential land.
TUE means the total unit entitlement of all the units in the units plan.
TUER means the total unit entitlement of all the residential units in the units plan.
UE means the unit entitlement of the unit.
unit entitlement—see the Unit Titles Act
, section 8.
units plan means a units plan under the Unit Titles Act
, section 7.
30 Land tax for part of
quarter
Section 18
omit
in part 3, insert
18A Meaning of land tax—pt 3
In this part:
land tax includes a foreign ownership surcharge.
32 Interest and penalty tax on land tax
if no disclosure
Section 19A (1) (b)
substitute
(b) the owner of the parcel of land fails to comply with section 14 (Commissioner to be told of change in circumstances).
omit
omit
or section 14A
35 Unit subdivisions—land
tax
Section 27 (4) and (5)
substitute
(4) If a unit that is part of a unit subdivision—
(a) is owned by someone other than a corporation or trustee; and
(b) contains multiple dwellings; and
(c) has at least 1 of the dwellings in the unit occupied—
(i) as the principal place of residence by 1 or more owners of the unit, including an owner who is a personal representative of a deceased person; or
(ii) as the principal place of residence by a person having a life or term interest in the unit under a will; or
(iii) by a person who pays no rent for the unit, or is liable only to pay an amount that is not more than the total amount required for rates, repairs, maintenance and insurance in relation to the unit; and
(d) has at least 1 of the dwellings rented by a tenant;
the amount worked out for the unit is as follows:
(5) If a unit that is part of a unit subdivision—
(a) is owned by either a corporation or trustee, and
(b) another person who is exempt from paying land tax for the parcel under—
(i) section 10 (Land exempted from s 9 generally), other than section 10 (1) (aa) (vii); or
(ii) section 11 (Land exempted from land tax);
the amount worked out for the unit is as follows:
36 Section 27 (7), definition of dwelling
substitute
dwelling—see the Planning and Development Regulation 2008
, section 5.
37 Section 27 (7), definition of TUE
before
unit
insert
total
in part 5, insert
33 Meaning of land tax—pt 5
In this part:
land tax includes a foreign ownership surcharge.
substitute
38 Objections
The following decisions of the commissioner are prescribed for the Taxation Administration Act
, section 100 (Objection):
(a) a decision under section 11A (3) to refuse to exempt a parcel of land from land tax because the commissioner is not satisfied 2 people in a domestic partnership have separated;
(b) a decision under section 11E (1) to extend the period of exemption after the death of an owner of a parcel of land for less than the period applied for;
(c) a decision under section 11E (1) to refuse to extend the period of exemption after the death of an owner of a parcel of land;
(d) a decision under section 11E (4) to revoke an extension;
(e) a decision under section 11F (3) to give permission subject to a condition or refuse permission;
(f) a decision under section 11I (1) to refuse to exempt a parcel of land from land tax because the commissioner is not satisfied the land is, or has become, unfit for occupation as a place of residence;
(g) a decision under section 13 (1) (b) to refuse to exempt a parcel of land from land tax on compassionate grounds;
(h) a decision under section 13 (5) revoking an exemption given on compassionate grounds;
(i) a decision under section 36 (1) to refuse to remit interest payable by a person in relation to land tax;
(j) a decision under section 37 to refuse to pay interest on an overpayment or to pay interest other than from the date when the overpayment was made.
Note Assessments are made under the Taxation Administration Act
and objections may be made under that Act
, s 100 (1) (a). For example, if a person is given an assessment for land tax and the person is dissatisfied with the assessment because land tax was not payable in relation to the parcel of land, the person may object under that paragraph.
40 Review of decisions by
ACAT
Section 39 (1)
omit
section 38 (c)
substitute
section 38 (i)
41 Certificate of land tax and other
charges
New section 41 (5)
insert
(5) In this section:
land tax includes a foreign ownership surcharge.
insert
• Australia
• domestic partnership (see s 169 (2))
• external territory
• territory law
43 Dictionary, new definitions
insert
associated person—see the Duties Act 1999
, dictionary.
Australian citizen, for part 2A (Foreign ownership surcharge)—see section 17A.
foreign corporation, for part 2A (Foreign ownership surcharge)—see section 17B.
foreign individual, for part 2A (Foreign ownership surcharge)—see section 17A.
foreign ownership surcharge includes—
(a) penalty tax; and
(b) the total of—
(i) the costs and expenses reasonably incurred by the Territory in attempting to recover the foreign ownership surcharge; and
(ii) interest payable in relation to the foreign ownership surcharge.
foreign person, for part 2A (Foreign ownership surcharge)—see section 17A.
foreign trust, for part 2A (Foreign ownership surcharge)—see section 17C.
44 Dictionary, definition of land tax
substitute
land tax—
(a) for this Act generally, includes—
(i) penalty tax; and
(ii) the total of—
(A) the costs and expenses reasonably incurred by the Territory in attempting to recover the land tax; and
(B) interest payable in relation to the land tax; and
(b) for part 3 (Enforcement)—see section 18A; and
(c) for part 5 (Exemptions, remissions and certain interest payments)—see section 33.
45 Dictionary, new definitions
permanent resident, for part 2A (Foreign ownership surcharge)—see section 17A.
personal representative, in relation to a deceased person, means—
(a) an executor of the deceased person’s will; or
(b) an administrator of the deceased person’s estate.
residential tenancy agreement, for part 2 (Imposition and payment of land tax)—see section 7.
46 Dictionary, definition of tenancy agreement
omit
47 Rates Act 2004
Section 29
(5), definition of TUE
before
unit
insert
total
Endnotes
1 Presentation speech
Presentation speech made in the Legislative Assembly on 12 April 2018.
2 Notification
Notified under the
on 2018.
3 Republications of amended laws
For the latest republication of amended laws, see www.legislation.act.gov.au
.
© Australian Capital Territory 2018
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