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2011
THE LEGISLATIVE ASSEMBLY FOR
THE
AUSTRALIAN CAPITAL
TERRITORY
LAND TAX
AMENDMENT BILL 2011
EXPLANATORY
STATEMENT
This Bill amends the Land Tax Act 2004.
Overview
The
Land Tax Act 2004 (the Act) is amended to require the owner of a
residential property to notify the commissioner of a land tax liability where
they hold the property as trustee of a trust.
Under section 9(1) of the
Act, all residential land owned by a corporation or trustee is liable to land
tax and charged accordingly. There was no requirement for a corporation or
trustee to notify the commissioner that the property was liable for land tax, as
in most cases the liability could be determined from the owner’s name on
the land title.
The ACT Revenue Office found it very difficult to
identify residential properties owned by a trustee where the trustee was an
individual. The Land Titles Act 1925 does not allow the
registrar-general to make any entry in the register of any trust under which the
registered owner may hold the property.
As with the current provisions
for a relevant person, it will be an offence under section 67 (2) of
the Taxation Administration Act 1999 to fail to notify the commissioner
of such a situation.
Commencement Date
The Bill’s
amendments will be effective from the day after its
notification.
Details of the Land Tax Amendment Bill 2011
Part 1 – Preliminary
Clause 1 – Name of
Act
This clause provides that the Act is named the
Land Tax Amendment Act 2004.
Clause 2
– Commencement
This clause provides that the Bill will commence on
the day after it is notified on the
ACT Legislation
Register.
Clause 3 – Legislation amended
This clause
provides that this Bill makes amendments to the
Land Tax Act 2004.
Clause 4 – New Section
14A
This clause inserts a new section that requires the owner of the
parcel of land to notify the commissioner of a land tax liability where the
owner is an individual and holds the property as trustee. This is in line with
current provisions that require an owner to notify the commissioner where a
residential property is rented.