Victorian Numbered Acts Victorian Numbered ActsAfter Division 2 of Part 3 of the Land Tax Act 2005 insert —
(1) A person who is the owner of land as trustee of a trust is liable for land tax on the land at the applicable rate set out in Part 3 of Schedule 1.
(2) The trustee 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.
(3) This section does not apply to—
(a) land subject to a unit trust scheme if an appointment of a nominated PPR beneficiary for the scheme is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(b) land subject to a discretionary trust if—
(i) an appointment of a nominated beneficiary for the trust is in force; or
(ii) an appointment of a nominated PPR beneficiary for the trust is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or
(c) land subject to an excluded trust.
(4) This section is subject to sections 46B and 46C.
(5) A trustee of child maintenance land who would be liable to land tax in accordance with sub-section (1) but for this sub-section is liable for land tax at the applicable rate set out in Part 1 of Schedule 1, and is to be assessed for that tax as if the child maintenance land were the only land owned by the trustee.
(1) A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.
(2) A notice must—
(a) be in the form, and contain the information, determined by the Commissioner; and
(b) be lodged with the Commissioner on or before—
(i) if any of the land subject to the trust is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii) if the only land subject to the trust is post-2006 land—in the year in which the land first became subject to the trust.
(3) A notice takes effect—
(a) for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b) in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4) If a notice is in force under this section for a fixed trust—
(a) a beneficiary of the trust is deemed 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, 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 at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee.
(5) There is to be deducted from the land tax payable by a beneficiary under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a) the amount determined by the formula:
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;
B is the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b) the amount determined by the formula:
where—
C is the taxable value of the land of which the beneficiary is deemed by sub-section (4)(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 sub-section (4)(a).
(6) For the purposes of this section, the trustee's right of indemnity from the trust property is taken not to be a beneficial interest in the land subject to the trust.
(7) Sub-section (4)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.
Note: Section 46D(1)(a) deems such a person to be the owner of land.
(1) A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.
(2) A notice must—
(a) be in the form, and contain the information, determined by the Commissioner; and
(b) be lodged with the Commissioner on or before—
(i) if any of the land subject to the scheme is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or
(ii) if the only land subject to the scheme is post-2006 land—in the year in which the land first became subject to the scheme.
(3) A notice takes effect—
(a) for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or
(b) in any other case, for the tax year after the year in which the notice is lodged—
and remains in force until it is withdrawn by the trustee.
(4) If a notice is in force under this section for a unit trust scheme—
(a) a unitholder in the scheme is deemed, 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 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 at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee.
(5) There is to be deducted from the land tax payable by a unitholder under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—
(a) the amount determined by the formula:
where—
A is the proportion of the unitholder's unitholding in the scheme to the total unitholdings in the scheme;
B is the total amount of tax assessed on the trustee under sub-section (4)(b); and
(b) the amount determined by the formula:
where—
C is the taxable value of the land of which the unitholder is deemed by sub-section (4)(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 sub-section (4)(a).
(6) Sub-section (4)(a) does not apply to a unitholder who holds units as trustee of another trust.
Note: Section 46D(1)(b) deems such a person to be the owner of land.
(1) For the purposes of this Act—
(a) a person who holds a beneficial interest in land subject to a fixed 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 deemed 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;
(b) a person who holds units in a unit trust scheme in respect of which a notice is in force under section 46C ( "the first scheme" ) as trustee of another trust ( "the second trust" ) is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner of land subject to the first 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 sub-section (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:
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;
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; and
(b) the amount determined by the formula:
where—
C is the taxable value of the land of which the beneficiary/trustee is deemed by sub-section (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.
A trustee of an excluded 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.
Note: The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
(1) This section applies to a discretionary trust if the trust property includes any pre-2006 land.
(2) The trustee of the trust may nominate a person to be the nominated beneficiary of the trust for the purposes of this Act.
(3) The person nominated must be—
(a) a natural person who—
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on 31 December 2005; and
(iii) signifies in writing his or her acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on 31 December 2005.
(4) A nomination under sub-section (2) must—
(a) be in the form, and contain the information, determined by the Commissioner; and
(b) be lodged with the Commissioner on or before the later of—
(i) 30 June 2006; or
(ii) 3 months after the day on which a liability first arises for land tax on land subject to the trust.
(5) A nomination lodged in accordance with sub-section (4)—
(a) takes effect—
(i) for the
2006 tax year if made on or before 30 June 2006; or
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(ii) in any other case, for the tax year after the year in which the nomination is lodged; and
(b) remains in force until—
(i) revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii) the nominated beneficiary dies.
(6) If the nominated beneficiary revokes the nomination, the trustee of the trust may nominate as the nominated beneficiary—
(a) a natural person who—
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on the date of the nomination; and
(iii) signifies in writing his or her acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination—
if the Commissioner considers that the nomination of a beneficiary under this sub-section is just and reasonable in the particular case.
(7) If the nominated beneficiary dies, the trustee of the trust may nominate as the nominated beneficiary—
(a) a natural person who—
(i) is a beneficiary of the trust; and
(ii) is of or over the age of 18 years on the date of the nomination; and
(iii) signifies in writing his or her acceptance of the nomination; or
(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination.
(8) A nomination lodged under sub-section (6) or (7)—
(a) must be in the form, and contain the information, determined by the Commissioner; and
(b) takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c) remains in force until—
(i) revoked by the nominated beneficiary in writing given to the Commissioner; or
(ii) the nominated beneficiary dies.
(9) A nomination may be lodged under sub-section (6) or (7) (as the case requires) on more than one occasion.
(1) This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 46F.
(2) The nominated beneficiary is deemed, 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.
s. 27
Note: The rate of land tax for this assessment is 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 1 of Schedule 1; and
(b) in respect of any post-2006 land—at the applicable rate set out in Part 3 of Schedule 1.
(4) For the purposes of sub-section (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—
where—
L is the land tax assessed for the trustee;
R 1 is the applicable rate of land tax set out in Part 1 of Schedule 1;
R 2 is the applicable rate of land tax set out in Part 3 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 sub-section (2) any land tax payable by the trustee under sub-section (3) in respect of pre-2006 land.
(6) Sub-section (2) does not apply if the nominated beneficiary is the trustee.
(1) The trustee of a unit trust scheme or discretionary trust may nominate a person to be the nominated PPR beneficiary of the scheme or trust for the purposes of this Act.
(2) The person nominated must be a natural person who is a unitholder in the scheme or a beneficiary of the trust.
(3) A nomination under sub-section (1) must be lodged with the Commissioner in the form, and containing the information, determined by the Commissioner.
(4) A nomination lodged in accordance with sub-section (3)—
(a) takes effect—
(i) for the 2006 tax year if it is lodged on or before 30 June 2006; or
(ii) in any other case, for the tax year after the year in which the nomination is lodged; and
(b) remains in force until the nominated PPR beneficiary dies.
(5) If the nominated PPR beneficiary dies, the trustee of the scheme or trust may nominate a natural person who is a unitholder in the scheme or a beneficiary of the trust as the nominated PPR beneficiary.
(6) A nomination lodged under sub-section (5)—
(a) must be in the form, and contain the information, determined by the Commissioner; and
(b) takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and
(c) remains in force until the nominated PPR beneficiary dies.
(7) A nomination may be lodged under sub-section (5) on more than one occasion.
(8) This section does not apply to a unit trust scheme if a notice is in force for the scheme under section 46C.
(1) This section applies if the nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary 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 that is used or occupied as the principal place of residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee.
Note: The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.
A trustee of a trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust or any like trust.
(1) A person who becomes trustee of land in Victoria, including a person who is already a trustee of land and acquires further land as trustee, must lodge a written notice with the Commissioner within one month after becoming trustee.
(2) A trustee who disposes of any land that is subject to the trust must lodge a written notice with the Commissioner within one month after disposing of the land.
(3) If—
(a) a person is trustee of land in Victoria; and
(b) anything happens that results in the trust to which the land is subject becoming a different category of trust—
the person must lodge a written notice with the Commissioner within one month after the thing happens.
Example
If a trust deed is varied so that a discretionary trust becomes an excluded trust, the trustee must notify the Commissioner within one month. Under sub-section (6) the Commissioner could, for example, require the trustee to include information about the variation of the trust deed (including a copy of the deed and variation) and any other information necessary to prove that the trust has become an excluded trust.
(4) A trustee of a fixed trust in respect of which a notice is in force under section 46B must lodge a written notice with the Commissioner within one month after any change to the beneficial interests in land subject to the trust.
(5) A trustee of a unit trust scheme in respect of which a notice is in force under section 46C must lodge a written notice with the Commissioner within one month after any change to the unitholdings in the scheme.
(6) 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.
(7) A notice under this section is in addition to any notice that the person is required to give under section 103.
(8) In this section—
"category of trust" means—
(a) a fixed trust;
(b) a unit trust scheme;
(c) a discretionary trust;
(d) an excluded trust.'.