Victorian Numbered Acts

STATE TAXATION ACTS FURTHER AMENDMENT ACT 2017 (NO. 67 OF 2017) - SECT 12

After section 3B of the Land Tax Act 2005 insert —

        " 3BA     Exemption—land held on trust under absentee trusts

    (1)     For the purposes of Part 3, if an absentee beneficiary holds an exemption under subsection (2) in relation to an absentee trust that is—

        (a)     a fixed trust, the absentee beneficiary is taken to hold their beneficial interest in the trust as a beneficiary who is not an absentee beneficiary; or

        (b)     a unit trust scheme, the absentee beneficiary is taken to be a unitholder in the scheme who is not an absentee beneficiary; or

        (c)     a discretionary trust, the absentee beneficiary is taken to be a specified beneficiary of the trust who is not an absentee beneficiary.

    (2)     The Treasurer, for the purposes of subsection (1), may, in writing, exempt an absentee beneficiary in relation to an absentee trust if the Treasurer is satisfied that, having regard to any one or more of the following matters, the absentee beneficiary should not be treated as an absentee beneficiary in relation to the trust—

        (a)     the nature and degree of the absentee beneficiary's interest in the trust;

        (b)     the practical influence the absentee beneficiary exerts or any rights the absentee beneficiary enforces to determine or influence, directly or indirectly, the outcome of decisions about the administration and conduct of the trust;

        (c)     any practice or behaviour of the absentee beneficiary affecting the trustee's administration and conduct of the trust;

        (d)     any other relevant circumstances.

        3BB     Absentee exemption requirements

    (1)     At least once every 6 months the Treasurer must cause to be laid before each House of Parliament, and publish on an appropriate government website, a report setting out—

        (a)     in respect of the exemptions (if any) granted by the Treasurer under sections 3B and 3BA during the period covered by the report—

              (i)     the number of exemptions; and

              (ii)     the name of each corporation or trust in relation to which an exemption was granted; and

              (iii)     the value of each exemption, being the amount of land tax foregone, or likely to be foregone, by the State because of the exemption; and

        (b)     in respect of the exemptions (if any) granted by the Commissioner or a member of staff of the State Revenue Office during the period covered by the report under a delegation under section 3C—

              (i)     the number of exemptions; and

              (ii)     the total value of the exemptions, being the total amount of land tax foregone, or likely to be foregone, by the State because of the exemptions.

    (2)     The Treasurer must issue guidelines for the exercise of the power of exemption under sections 3B and 3BA.

    (3)     The Treasurer must cause guidelines issued under subsection (2) to be published in the Government Gazette.

    (4)     Guidelines issued under subsection (2) are not a legislative instrument within the meaning of the Subordinate Legislation Act 1994 .".