LAND TAX (MISCELLANEOUS) AMENDMENT BILL 2010

Part 2—Amendment of Land Tax Act 1936
4 Amendment of section 5—Exemption or partial exemption of certain land from land tax
5 Substitution of section 8
8 Scales of land tax—2009/2010
8A Scales of land tax—2010/2011 and beyond
8B Aggregation of land

(1) Subject to subsection (2), this Act will come into operation, or be taken to have come into operation, as the case requires, at midnight on 30 June 2010.

(2) Section 4 will be taken to have come into operation at midnight on 30 June 2009.

In this Act, a provision under a heading referring to the amendment of a specified Act amends the Act so specified.

4—Amendment of section 5—Exemption or partial exemption of certain land from land tax

(ca) land may be wholly exempted from land tax if the whole of the land is used for the provision of residential care by an approved provider;

(cb) land may be partially exempted from land tax if part of the land is used for the provision of residential care by an approved provider by reducing its taxable value by an amount equal to the value of that part of the land after applying any principle determined by the Commissioner for the purposes of this paragraph;

(2) Section 5(13)—before the definition of close personal relationship insert:

approved provider has the same meaning as in the Aged Care Act 1997 of the Commonwealth;

residential care has the same meaning as in the Aged Care Act 1997 of the Commonwealth;

Land tax for the 2009/2010 financial year is calculated on the basis of the taxable value of the land in accordance with the following table:

Taxable value of land	Amount of tax
Not exceeding $110 000	Nil
Exceeding $110 000 but not exceeding $350 000	$0.30 for every $100 or fractional part of $100 over $110 000
Exceeding $350 000 but not exceeding $550 000	$720 plus $0.70 for every $100 or fractional part of $100 over $350 000
Exceeding $550 000 but not exceeding $750 000	$2 120 plus $1.65 for every $100 or fractional part of $100 over $550 000
Exceeding $750 000 but not exceeding $1 million	$5 420 plus $2.40 for every $100 or fractional part of $100 above $750 000
Exceeding $1 million	$11 420 plus $3.70 for every $100 or fractional part of $100 above $1 million.

8A—Scales of land tax—2010/2011 and beyond

(1) Land tax for the 2010/2011 financial year, and for each subsequent financial year, is calculated on the basis of the taxable value of the land in accordance with the following table:

Taxable value of land	Amount of tax
Not exceeding Threshold A	Nil
Exceeding Threshold A but not exceeding Threshold B	$0.50 for every $100 or fractional part of $100 over Threshold A
Exceeding Threshold B but not exceeding Threshold C	LT (TB) plus $1.65 for every $100 or fractional part of $100 over Threshold B
Exceeding Threshold C but not exceeding Threshold D	LT (TC) plus $2.40 for every $100 or fractional part of $100 over Threshold C
Exceeding Threshold D	LT (TD) plus $3.70 for every $100 or fractional part of $100 over Threshold D

(2) For the 2010/2011 financial year, the thresholds will be as follows:

Threshold	Amount
Threshold A	$300 000
Threshold B	$550 000
Threshold C	$800 000
Threshold D	$1 000 000

(3) Subject to this section, for the 2011/2012 financial year and for each subsequent financial year (year x), each of the thresholds will be adjusted to take into account increases in the site value of land according to the following formula:

where—

Threshold_{year x} represents each of the thresholds for the relevant financial year (year x)

Threshold₁ represents each of the relevant thresholds set out in subsection (2) for the 2010/2011 financial year

Index value_year
x = Index value_year
x-1 x (1 + Avg percentage change in site values_year
x)

where—

Index value_{year x} is the Index value for the relevant financial year (year x) and the average percentage change in site values for that financial year is determined under subsection (4), and with the Index value for the 2010/2011 financial year being 1.

(4) For the purposes of subsection (3), the average percentage change in site values for a particular financial year will be determined by the Valuer-General after the application of the following principles:

(a) in determining the average percentage change in site values for the financial year, the Valuer-General will take into account changes in the site value of land according to valuations applying under the Valuation of Land Act 1971 with respect to a period of 12 months expiring on a date to be determined by the Valuer-General, being a date that falls on or before 30 June in the financial year immediately preceding the relevant financial year;

(b) the average percentage change in site values must take into account changes in the site value of residential land and changes in the site value of other land (as identified by the Valuer-General), with the averaging being undertaken in accordance with a method determined to be appropriate by the Valuer-General after taking into account the provisions of this Act and the Valuation of Land Act 1971;

(i) vacant land zoned for residential purposes will be treated as residential land and vacant land zoned for any other purpose (other than primary production) will be treated as other land; and

(ii) land used for primary production must be excluded.

(5) If after applying subsection (4) to determine the Index value for a particular financial year (year x) under subsection (3) the result would be an Index value for year x that would be less than or equal to any Index value that has applied for any preceding financial year, the thresholds for year x will remain unchanged (so as to be equal to the year x-1 amounts).

(6) On or before 30 June in each year (commencing in 2011), the Valuer-General must publish by notice in the Gazette—

(a) the average percentage change in site values for the ensuing financial year (year x); and

(b) the Index value for the ensuing financial year (year x).

(7) The Commissioner must, on or after the publication of a notice under subsection (6) with respect to a financial year (the ensuing financial year under subsection (6)), by notice in the Gazette, publish the thresholds that will apply with respect to that financial year (being a notice that may be published before, on or after 1 July in that financial year).

(8) For the purposes of subsection (7), the thresholds will be rounded to the nearest $1 000 (with an amount of $500 rounded up).

(9) A notice under subsection (7) will have effect according to its terms (and be conclusive in all respects for the purposes of this section).

(10) In this section—

LT (TB) means the land tax payable with respect to land with a taxable value equal to Threshold B;

LT (TC) means the land tax payable with respect to land with a taxable value equal to Threshold C;

LT (TD) means the land tax payable with respect to land with a taxable value equal to Threshold D.

8B—Aggregation of land

(1) Except as otherwise provided by this Act, land tax is calculated on the basis of the aggregate taxable value of all land owned by the taxpayer.

(2) If a taxpayer is liable to pay land tax in respect of land included in more than 1 land tax assessment, the land tax is (subject to any additional levy that affects portion only of that land) apportioned to and chargeable on the land included in the various assessments in the proportions that the taxable value of the land included in each separate assessment bears to the aggregate taxable value of all the land.

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LAND TAX (MISCELLANEOUS) AMENDMENT BILL 2010