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STATE TAXATION ACTS FURTHER AMENDMENT ACT 2019 (NO. 46 OF 2019) - SECT 25

Section 67 substituted and new sections 67A to 67F inserted

For section 67 of the Land Tax Act 2005 substitute

        "     67     Exemption of primary production land in an urban zone in greater Melbourne

    (1)     Land is exempt land if the Commissioner determines that—

        (a)     the land comprises one parcel that is—

              (i)     wholly or partly in greater Melbourne; and

              (ii)     wholly or partly in an urban zone; and

              (iii)     used solely or primarily for the business of primary production; and

        (b)     the owner of the land meets the requirements in—

              (i)     if the owner is a natural person not acting in the capacity as trustee of a trust to which the land is subject—section 67A; or

              (ii)     if the owner is a proprietary company not acting in the capacity as trustee of a trust to which the land is subject—section 67B; or

              (iii)     if the owner is a trustee of a superannuation trust to which the land is subject—section 67C; or

              (iv)     if the owner is a trustee of a discretionary trust to which the land is subject—section 67D; or

              (v)     if the owner is a trustee of a trust (other than a discretionary trust or superannuation trust) to which the land is subject or a unit trust scheme to which the land is subject—section 67E.

    (2)     For the purposes of this section, a reference to the owner of land does not include a reference to—

        (a)     a beneficiary of a trust (including an implied or constructive trust) to which the land is subject; or

        (b)     a unitholder in a unit trust scheme to which the land is subject.

        67A     Requirements for non-trustee natural person

For the purposes of section 67(1)(b)(i), the requirements for an owner who is a natural person (not acting in the capacity as trustee of a trust to which the land is subject) are that—

        (a)     the owner—

              (i)     carries on the business of primary production referred to in section 67(1)(a)(iii); and

              (ii)     either—

    (A)     is normally engaged in a substantially full-time capacity in that business; or

    (B)     is not normally engaged in a substantially full-time capacity in that business, but has a relative who is normally so engaged; or

        (b)     a relative of the owner—

              (i)     carries on the business of primary production referred to in section 67(1)(a)(iii); and

              (ii)     either—

    (A)     is normally engaged in a substantially full-time capacity in that business; or

    (B)     is not normally engaged in a substantially full-time capacity in that business, but the owner is normally so engaged.

        67B     Requirements for non-trustee proprietary company

    (1)     For the purposes of section 67(1)(b)(ii), the requirements for an owner that is a proprietary company (not acting in the capacity as trustee of a trust to which the land is subject) are that—

        (a)     the company carries on the business of primary production referred to in section 67(1)(a)(iii); and

        (b)     the principal business of the company is that business; and

        (c)     all the company's shares are beneficially owned by natural persons; and

        (d)     the company meets the requirements in subsection (2) in relation to the distribution of dividends.

    (2)     For the purposes of subsection (1)(d), the requirements are that—

        (a)     if the company distributes dividends during the relevant period—

              (i)     the dividends were distributed to all the holders of the issued share capital of the company in proportion to their respective paid up shareholdings; and

              (ii)     50% or more of the dividends were paid to a person or persons—

    (A)     normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii); or

    (B)     whose relative or relatives were normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii); or

        (b)     if no dividends were distributed during the relevant period, ordinary shares representing 50% or more of the issued share capital of the company have been beneficially owned for the relevant period by a person or persons—

              (i)     normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii); or

              (ii)     whose relative or relatives were normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii).

    (3)     For the purposes of subsection (2), a reference to the issued share capital of a company does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital.

        67C     Requirements for trustee of superannuation trust

    For the purposes of section 67(1)(b)(iii), the requirements for         an owner who is a trustee of a superannuation trust to which the land is subject are that—

        (a)     all the members or beneficiaries (as the case requires) of the trust are relatives; and

        (b)     at least one member or beneficiary (as the case requires) of the trust is normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii).

        67D     Requirements for trustee of discretionary trust

    (1)         For the purposes of section 67(1)(b)(iv), the requirements for         an owner who is a trustee of a discretionary trust to which the land is subject are that—

        (a)     the trustee carries on the business of primary production referred to in section 67(1)(a)(iii); and

        (b)     the principal business of the trust is that business; and

        (c)     either—

              (i)     each specified beneficiary is a natural person; or

              (ii)     at least one of the specified beneficiaries is a natural person and each of the specified beneficiaries who is not a natural person is a person referred to in subsection (2); and

        (d)     either—

              (i)     at least one of the specified beneficiaries is a natural person who is normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii); or

              (ii)     a relative of at least one of the specified beneficiaries is normally engaged in a substantially full-time capacity in the business of primary production referred to in section 67(1)(a)(iii).

    (2)     For the purposes of subsection (1)(c)(ii), the persons are—

        (a)     a charitable institution or a trustee of a charitable trust; or

        (b)     a company all the shares in which are owned by one or more of the specified beneficiaries who are natural persons; or

        (c)     a trustee of a trust (except a charitable trust), all the beneficiaries or specified beneficiaries of which are specified beneficiaries of the discretionary trust who are natural persons.

        67E     Requirements for trustee of a trust (other than a discretionary trust or superannuation trust) or unit trust scheme

For the purposes of section 67(1)(b)(v), the requirements for     an owner who is the trustee of a trust (other than a discretionary trust or superannuation trust) to which the land is subject or a unit trust scheme to which the land is subject are that—

        (a)     the trustee carries on the business of primary production referred to in section 67(1)(a)(iii); and

        (b)     the principal business of the trust or unit trust scheme is that business; and

        (c)     each beneficiary of the trust or unitholder (as the case requires) is a natural person who is entitled under the trust deed to an annual distribution of the trust income; and

        (d)     at least one of the beneficiaries of the trust or unitholders (as the case requires), or a relative of at least one of the beneficiaries or unitholders, is normally engaged in a substantially full-time capacity in that business.

        67F     Joint ownership of parcel of land referred to in section 67(1)(a)

If a parcel of land referred to in section 67(1)(a) is owned by joint owners, each joint owner must meet relevant requirements for that type of owner in sections 67A, 67B, 67C, 67D or 67E.".



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