New South Wales Consolidated Acts

LAND TAX MANAGEMENT ACT 1956 - SECT 9AA

9AA Average value of land

(1) For the purposes of this Act, the
"average value" of a parcel of land is the average of the land value of the land in relation to the year for which the average value is being ascertained (the
"current land tax year" ) and the land value of the land in relation to the 2 preceding land tax years (the
"preceding land tax years" ).

(2) If a land value adjustment is required in relation to a parcel in the current land tax year, the average value is to be determined before that land value adjustment is made (that is, on the basis of the land value without that land value adjustment) and, despite any other provision of this Act, the Valuation of Land Act 1916 or the Heritage Act 1977 , the land value adjustment is to be applied, for the purpose of assessing land tax, to the average value of the land for that land tax year (and not the land value).

(3) For the purposes of this section, a
"land value adjustment" is--

(a) a
"land value reduction" , being any reduction that is required to be made to the land value of land under this Act for the purpose of assessing land tax, or

(c) a
"special allowance" , being any allowance made in respect of the land value of land under Division 3 or 4 of Part 1B of the Valuation of Land Act 1916 .

(4) In the case of a land value reduction, the land value adjustment is to be applied to the average value of land by applying any provision of this Act that specifies that the land value is to be reduced for the purpose of assessing land tax as if a reference to the land value of land were a reference to the average value of land.

Note--: For example, the reductions provided for by sections 9A, 9BA, 9C, 9D, 9E, 10 (2), (2A) and (2C), 10Q (4) and 10R (3) will now apply to the average value of the land in a land tax year and not to the land value of the land.

(6) In the case of a special allowance, the land value adjustment is to be applied to the average value of the land by deducting the allowance from the average value.

(7) If a parcel of land did not exist on 31 December immediately before either or both of the preceding land tax years, the average value of the land is taken to be--

(a) if the parcel did exist on 31 December immediately before one of the preceding land tax years--the average of the land value of the land in relation to the current land tax year and the land value of the land in relation to the preceding land tax year immediately before which it did exist, or

(b) in any other case--the land value of the land in relation to the current land tax year.

(8) Subsection (2) applies in relation to an average value determined as provided for by subsection (7) in the same way as it applies to an average value determined as provided for by subsection (1).

Note--: For example, if the newly created parcel qualifies for an allowance for subdivision under Division 4 of Part 1B of the Valuation of Land Act 1916 in the current land tax year, the allowance would be applied to the average value calculated as provided for by subsection (7).

(9) The average value of a parcel of land that is heritage-protected, and that was not heritage-protected on 31 December immediately before either or both of the preceding land tax years, is to be determined as provided for by subsection (7) (as if the parcel did not exist on the date or dates of 31 December on which it was not heritage-protected).

(10) If the land value of land in relation to a land tax year is altered (whether as a result of being reascertained or on objection or appeal or for the correction of a clerical error or misdescription), the average value of the land must be reascertained on the basis of the altered land value.

(11) If the average value of a parcel of land, after applying a land value adjustment, is less than zero, the average value of the parcel is taken to be zero.

(12) For the purposes of this section, land is
"heritage-protected" if it is either heritage restricted (within the meaning of section 14G of the Valuation of Land Act 1916 ) or the subject of a heritage valuation under Division 6 of Part 6 of the Heritage Act 1977 , or both.