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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment (Taxation) Bill 2009
CONTENTS
Part 1 -- Preliminary matters
1. Short title 2
2. Commencement 2
Part 2 -- Land Tax Assessment
Act 2002 amended
3. Act amended 3
4. Section 10 replaced 3
10. Assessing land tax 3
5. Section 13 amended 3
6. Section 14 amended 3
7. Section 15 amended 4
8. Section 15A amended 5
9. Section 28 amended 5
10. Section 43A inserted 6
43A. Concessional value for newly subdivided
land 6
11. Schedule 1 amended 8
Division 2 -- Provision for Revenue Laws
Amendment (Taxation) Act 2009
2. Regulations for clause 6 8
12. Glossary amended 9
6. Taxable value 9
13. "Unimproved value" changed to "taxable value" in
some places 10
Part 3 -- Land Tax Act 2002 amended
14. Act amended 12
15. Section 5 amended 12
051--1 page i
Revenue Laws Amendment (Taxation) Bill 2009
Contents
Part 4 -- Metropolitan Region
Improvement Tax Act 1959
amended
16. Act amended 13
17. Section 10 amended 13
page ii
Western Australia
LEGISLATIVE ASSEMBLY
Revenue Laws Amendment (Taxation) Bill 2009
A Bill for
An Act to amend --
• the Land Tax Assessment Act 2002; and
• the Land Tax Act 2002; and
• the Metropolitan Region Improvement Tax Act 1959,
and for related matters.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment (Taxation) Bill 2009
Part 1 Preliminary matters
s. 1
1 Part 1 -- Preliminary matters
2 1. Short title
3 This is the Revenue Laws Amendment (Taxation) Act 2009.
4 2. Commencement
5 This Act comes into operation as follows --
6 (a) Part 1 -- on the day on which this Act receives the
7 Royal Assent (assent day);
8 (b) the rest of the Act --
9 (i) comes into operation on 1 July 2009 if assent day
10 is not later than that day; or
11 (ii) is deemed to have come into operation on
12 1 July 2009 if assent day is later than that day.
page 2
Revenue Laws Amendment (Taxation) Bill 2009
Land Tax Assessment Act 2002 amended Part 2
s. 3
1 Part 2 -- Land Tax Assessment Act 2002 amended
2 3. Act amended
3 This Part amends the Land Tax Assessment Act 2002.
4 4. Section 10 replaced
5 Delete section 10 and insert:
6
7 10. Assessing land tax
8 Unless this Act provides otherwise, the amount of land
9 tax payable for taxable land for an assessment year is
10 the amount calculated by applying the rate fixed in
11 relation to the land under the Land Tax Act 2002 to the
12 amount equal to the taxable value of the land for the
13 assessment year.
14
15 5. Section 13 amended
16 In section 13(1):
17 (a) delete "Act to the unimproved" and insert:
18
19 Act, other than in clause 6, to the taxable
20
21 (b) delete "unimproved" (second occurrence) and insert:
22
23 taxable
24
25 6. Section 14 amended
26 (1) In section 14(2) delete "unimproved".
page 3
Revenue Laws Amendment (Taxation) Bill 2009
Part 2 Land Tax Assessment Act 2002 amended
s. 7
1 (2) Delete section 14(6) and insert:
2
3 (6) For the purposes of subsection (2), the value of the
4 taxable portion of the property for a financial year is --
5 (a) if the financial year is 2008/09 or earlier -- the
6 amount that bears to the unimproved value of
7 the whole of the property at midnight on
8 30 June immediately before the financial year
9 the same proportion as the area of the taxable
10 portion bears to the whole area of the property;
11 or
12 (b) in any other financial year -- the amount that
13 bears to the taxable value of the whole of the
14 property for the financial year the same
15 proportion as the area of the taxable portion
16 bears to the whole area of the property.
17
18 7. Section 15 amended
19 (1) In section 15(2) delete "unimproved".
20 (2) Delete section 15(6) and insert:
21
22 (6) For the purposes of subsection (2), the value of the
23 taxable portion of the land for a financial year is --
24 (a) if the financial year is 2008/09 or earlier -- the
25 amount that bears to the unimproved value of
26 the whole of the land at midnight on 30 June
27 immediately before the financial year the same
28 proportion as the area of the taxable portion
29 bears to the whole area of the land; or
30 (b) in any other financial year -- the amount that
31 bears to the taxable value of the whole of the
32 land for the financial year the same proportion
33 as the area of the taxable portion bears to the
34 whole area of the land.
35
page 4
Revenue Laws Amendment (Taxation) Bill 2009
Land Tax Assessment Act 2002 amended Part 2
s. 8
1 8. Section 15A amended
2 (1) In section 15A(2) delete "unimproved".
3 (2) Delete section 15A(6) and insert:
4
5 (6) For the purposes of subsection (2), the value of the
6 taxable portion of the land for a financial year is --
7 (a) if the financial year is 2008/09 or earlier -- the
8 amount that bears to the unimproved value of
9 the whole of the land at midnight on 30 June
10 immediately before the financial year the same
11 proportion as the area of the taxable portion
12 bears to the whole area of the land; or
13 (b) in any other financial year -- the amount that
14 bears to the taxable value of the whole of the
15 land for the financial year the same proportion
16 as the area of the taxable portion bears to the
17 whole area of the land.
18
19 9. Section 28 amended
20 (1) In section 28(2) delete "unimproved" (each occurrence) and
21 insert:
22
23 taxable
24
25 (2) In section 28(3) delete the passage that begins with "where --"
26 and ends with "subsection (7)." and insert:
27
28 where --
29 LT is greater than RE;
30 R is the amount of the rebate;
page 5
Revenue Laws Amendment (Taxation) Bill 2009
Part 2 Land Tax Assessment Act 2002 amended
s. 10
1 LT (short for land tax) is the amount of land tax
2 levied on the aggregated taxable value of all of
3 the taxable land owned by the applicant;
4 RE (short for residential equivalent) is the amount
5 of the land tax that would be payable on the
6 sum of --
7 (a) the aggregated taxable value of all of
8 the taxable land owned by the applicant
9 other than the private residential
10 property referred to in subsection (2)(a);
11 and
12 (b) the taxable value of that private
13 residential property determined as if the
14 property were zoned under a scheme
15 referred to in subsection (2)(a) for use
16 solely for residential purposes.
17
18 (3) Delete section 28(7).
19 10. Section 43A inserted
20 At the end of Part 3 Division 5 insert:
21
22 43A. Concessional value for newly subdivided land
23 (1) If a lot (the old lot) is subdivided in the financial year
24 before an assessment year, the land tax payable on a lot
25 created by the subdivision (the new lot) is assessed
26 under this section if --
27 (a) the new lot was not created pursuant to a strata
28 plan as referred to in clause 3(1)(d); and
29 (b) the ownership of the new lot has not changed
30 since the old lot was subdivided; and
31 (c) the new lot is wholly within the old lot; and
page 6
Revenue Laws Amendment (Taxation) Bill 2009
Land Tax Assessment Act 2002 amended Part 2
s. 10
1 (d) the new lot was created to be used solely or
2 principally for residential purposes; and
3 (e) the new lot does not have on it a building that is
4 used, or is suitable to be used, for residential
5 purposes; and
6 (f) the new lot has an area of not more than
7 2 000 m2 or, if its area is more than 2 000 m2, it
8 is to be used for a building or a group of
9 buildings that --
10 (i) is solely for residential purposes; and
11 (ii) contains a number of separate
12 residential units;
13 and
14 (g) the owner of the new lot applies under
15 subsection (2) to have the land tax assessed
16 under this section.
17 (2) An application must --
18 (a) be in an approved form; and
19 (b) be received by the Commissioner on or before
20 31 August in the assessment year, unless the
21 Commissioner gives an extension under
22 subsection (3).
23 (3) The Commissioner may extend the time for lodging an
24 application from 31 August to any date before the
25 following 1 July if --
26 (a) the owner applies for the extension before the
27 end of the assessment year; and
28 (b) the Commissioner is satisfied that there are
29 reasonable grounds for extending the time.
30 (4) A decision of the Commissioner made under
31 subsection (3) is non-reviewable.
page 7
Revenue Laws Amendment (Taxation) Bill 2009
Part 2 Land Tax Assessment Act 2002 amended
s. 11
1 (5) The land tax on the new lot is payable on the lesser of
2 these values --
3 (a) the concessional value of the new lot calculated
4 in accordance with subsection (6);
5 (b) the unimproved value of the new lot at 30 June
6 immediately before the assessment year.
7 (6) The concessional value of the new lot is the amount
8 equal to the amount that bears the same proportion to
9 the old lot's unimproved value as at midnight on
10 30 June immediately before the financial year in which
11 the new lot was created as the area of the new lot bears
12 to the area of the old lot.
13 (7) A reference in a land tax Act, other than in clause 6, to
14 the taxable value of the land in the new lot is a
15 reference to whichever value, under subsection (5), is
16 the value on which the land tax on the new lot is
17 payable.
18
19 11. Schedule 1 amended
20 At the end of Schedule 1 insert:
21
22 Division 2 -- Provision for Revenue Laws Amendment
23 (Taxation) Act 2009
24 2. Regulations for clause 6
25 If regulations made under section 46 for the purposes of
26 prescribing the percentage for clause 6(4) are made after
27 1 July 2009, they may be deemed to have come into
28 operation on 1 July 2009.
29
page 8
Revenue Laws Amendment (Taxation) Bill 2009
Land Tax Assessment Act 2002 amended Part 2
s. 12
1 12. Glossary amended
2 (1) In the Glossary clause 1:
3 (a) delete the definitions of aggregated unimproved value
4 and unimproved value;
5 (b) insert in alphabetical order:
6
7 aggregated taxable value, in relation to 2 or more lots or
8 parcels of land, means the amount equal to the sum of the
9 taxable values of each taxable lot or parcel;
10 strata plan has the same meaning as in the Strata Titles
11 Act 1985;
12 survey-strata plan has the same meaning as in the Strata
13 Titles Act 1985;
14 taxable value has the meaning given in clause 6;
15 unimproved value of land, means the unimproved value of
16 the land determined under the Valuation of Land Act 1978.
17
18 (2) In the Glossary clause 2(1) in the definition of lot
19 paragraph (a)(vii) delete "survey strata plan" and insert:
20
21 survey-strata plan
22
23 (3) In the Glossary after clause 5 insert:
24
25 6. Taxable value
26 (1) Unless the contrary intention appears, the taxable value of
27 land is to be determined under this clause.
28 (2) The taxable value of land for a financial year is --
29 (a) if the capped value of the land can be used in
30 determining the taxable value for that year, the
31 lesser of these values at midnight on 30 June
32 immediately before that year --
33 (i) the capped value of the land;
page 9
Revenue Laws Amendment (Taxation) Bill 2009
Part 2 Land Tax Assessment Act 2002 amended
s. 13
1 (ii) the unimproved value of the land;
2 (b) otherwise, the unimproved value of the land at
3 midnight on 30 June immediately before that year.
4 (3) The capped value of land cannot be used in determining the
5 taxable value of the land for a financial year if the land is a
6 lot that was created when land was subdivided in the
7 financial year immediately before that year.
8 (4) The capped value of land at midnight on 30 June
9 immediately before a financial year is --
10 (a) if under section 43A the concessional value of the
11 land was the value on which land tax on the land for
12 the previous financial year was payable -- the
13 prescribed percentage, for the financial year, of the
14 unimproved value of the land at midnight on
15 30 June immediately before that previous financial
16 year;
17 (b) otherwise --
18 (i) if the financial year is 2009/10 -- the
19 prescribed percentage, for that year, of the
20 unimproved value of the land at midnight
21 on 30 June 2008; or
22 (ii) if the financial year is after 2009/10 -- the
23 prescribed percentage, for that year, of the
24 taxable value of the land for the previous
25 financial year.
26
27 13. "Unimproved value" changed to "taxable value" in some
28 places
29 In the provisions listed in the Table delete "unimproved" (each
30 occurrence) and insert:
31
32 taxable
33
page 10
Revenue Laws Amendment (Taxation) Bill 2009
Land Tax Assessment Act 2002 amended Part 2
s. 13
1 Table
s. 11(1) s. 16(6)
s. 16(7) s. 16(8)
s. 31(4)
page 11
Revenue Laws Amendment (Taxation) Bill 2009
Part 3 Land Tax Act 2002 amended
s. 14
1 Part 3 -- Land Tax Act 2002 amended
2 14. Act amended
3 This Part amends the Land Tax Act 2002.
4 15. Section 5 amended
5 In section 5:
6 (a) delete "unimproved value of the land." and insert:
7
8 value of the land referred to in the table.
9
10 (b) in Table 7 delete "and subsequent financial years";
11 (c) after Table 7 insert:
12
13 Table 8: Land tax rates for 2009/10
14 and subsequent financial years
Taxable value of the land
Rate of land tax
Exceeding ($) Not exceeding ($)
0 300 000 Nil
300 000 1 000 000 0.09 cent for each $1 in excess of
$300 000
1 000 000 2 200 000 $630 + 0.47 cent for each $1 in
excess of $1 000 000
2 200 000 5 500 000 $6 270 + 1.22 cents for each $1 in
excess of $2 200 000
5 500 000 11 000 000 $46 530 + 1.46 cents for each $1
in excess of $5 500 000
11 000 000 $126 830 + 2.16 cents for each $1
in excess of $11 000 000
15
page 12
Revenue Laws Amendment (Taxation) Bill 2009
Metropolitan Region Improvement Tax Act 1959 amended Part 4
s. 16
1 Part 4 -- Metropolitan Region Improvement Tax
2 Act 1959 amended
3 16. Act amended
4 This Part amends the Metropolitan Region Improvement Tax
5 Act 1959.
6 17. Section 10 amended
7 In section 10:
8 (a) delete "unimproved value of the land." and insert:
9
10 value of the land referred to in the Table.
11
12 (b) in Table 2 delete "and subsequent years of
13 assessment";
14 (c) after Table 2 insert:
15
16 Table 3: Metropolitan Region Improvement Tax rates for 2009/10
17 and subsequent years of assessment
Taxable value of the land Rate of Metropolitan Region
Exceeding ($) Not exceeding ($) Improvement Tax
0 300 000 Nil
300 000 0.14 cent for each $1 in excess of
$300 000
18
19
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