Land Tax Act 2004

This Act is the Land Tax Act 2004.

Note This Act is a tax law under the Taxation Administration Act. As a tax law, this Act is subject to provisions of the Taxation Administration Act about the administration and enforcement of tax laws generally.

The dictionary at the end of this Act is part of this Act.

Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere.

For example, the signpost definition ‘unit subdivision—see the Rates Act 2004, dictionary.’ means that the term ‘unit subdivision’ is defined in that dictionary and the definition applies to this Act.

Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

A note included in this Act is explanatory and is not part of this Act.

Note See Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

Other legislation applies in relation to offences against this Act.

Note 1 Criminal Code

The Criminal Code, ch 2 applies to all offences against this Act (see Code, pt 2.1).

The chapter sets out the general principles of criminal responsibility (including burdens of proof and general defences), and defines terms used for offences to which the Code applies (eg conduct, intention, recklessness and strict liability).

Note 2 Penalty units

The Legislation Act, s 133 deals with the meaning of offence penalties that are expressed in penalty units.

Part 2 Imposition and payment of land tax

This part is subject to part 4 (Unit subdivisions).

In this part:

rent means valuable consideration for which a tenant is liable under a tenancy agreement in relation to the tenancy or a period of the tenancy.

tenancy agreement—

means an agreement under which a person gives someone else, for value, a right of occupation of a parcel of land for use as a residence—

whether the right of occupation is exclusive or not; and

whether the agreement is express or implied; and

whether the agreement is in writing, is oral, or is partly in writing and partly oral; but

does not include an agreement giving a right of occupation only as a boarder or lodger.

tenant means a person with a right of occupation under a tenancy agreement.

trustee does not include a guardian or manager of the property of a person with a legal disability.

For this part, a parcel of land or dwelling is not taken to be rented only because a tenant is liable to pay for rates, repairs, maintenance or insurance in relation to the parcel or dwelling.

Note For provision about multiple dwellings on a parcel of land, see s 15.

For this part, a parcel of land or dwelling is taken to be rented if it is rented on the 1st day of a quarter.

For this part, land tax is payable on a parcel of land for a quarter if it is payable on the 1st day of the quarter.

Land tax is taken to be payable on a parcel of land on the 1st day of a quarter if it is not exempt under this part from land tax on that day.

If an exemption under this part stops applying to a parcel of land, land tax is payable on the 1st day of the quarter after the date the exemption stops applying.

Land tax at the appropriate rate is imposed for a quarter on each parcel of rateable land that is residential land.

However, land tax is not imposed on a parcel of land that is exempt under section 10 or section 11.

The appropriate rate of land tax for a parcel of land is—

if section 27 (3) applies—the amount worked out under section 27 (4), (5) or (6), whichever applies; or

in any other case—the amount worked out for the parcel as follows:

Note Section 27 (3) applies to a unit owner in a registered units plan whose unit is subject to land tax.

In this section:

AUV means the average unimproved value of the parcel of land under the Rates Act 2004.

FC means the fixed charge determined under the Taxation Administration Act, section 139 for the parcel of land.

P means the percentage rate determined under the Taxation Administration Act, section 139 for the parcel of land.

Note Power to determine a fixed charge or percentage rate under the Taxation Administration Act includes the power to determine a different charge or rate for different matters or classes of matter (see Legislation Act, s 48).

The following parcels of land are exempt from land tax imposed under section 9:

a parcel of land if exempted under the following provisions:

section 11A (Principal place of residence exemption);

section 11B (Moving out of principal place of residence);

section 11C (Moving into principal place of residence—new owner);

section 11CA (Moving into principal place of residence—ending rental);

section 11D (Exemption after death of owner);

section 11G (Exemption for life tenant);

section 11H (Exemption if nil or nominal rent paid);

section 11I (Exemption if land becomes unfit for occupation);

a parcel of residential land owned by an individual if the parcel is exempted under section 13 (Decision on compassionate application) in relation to the parcel;

Note An exemption under s 13 is for 1 year or less.

a parcel of land if exempted under section 13A (Exemption for land provided for affordable community housing);

a parcel of rural land;

a parcel of land owned by the housing commissioner under the Housing Assistance Act 2007;

a parcel of land owned or leased by an entity declared under the Duties Act 1999, section 73A (Transfers etc to entities for community housing);

a parcel of land leased for a retirement village;

a parcel of land leased for a nursing home;

a parcel of land leased for a nursing home and a retirement village;

a parcel of land leased by a religious institution or order to provide residential accommodation to a member of the institution or order and allow the member to perform his or her duties as a member of the institution or order;

a parcel of land, other than a parcel of residential land leased to a corporation or trustee, being used for a purpose prescribed under the regulations.

In this section:

nursing home means premises that—

are approved, or taken to be approved, as a nursing home under the National Health Act 1953 (Cwlth); and

are built on land under a lease that allows the use of the land—

for residential accommodation and nursing care for patients who, because of infirmity or illness, disease, incapacity or disability have a continuing need for nursing care; and

if the land is also used, or to be used, as a retirement village—for residential retirement accommodation.

retirement village means a complex of buildings (whether or not including hostel units)—

that is intended predominantly for retired people who are at least 55 years old, or couples, at least 1 of whom is at least 55 years old; and

each of which is, or is to be, occupied or used under a sublease, licence or other arrangement (other than a lease); and

each of which is intended, and able, to be occupied as a home; and

that is built on land under a lease that allows the use of the land—

for residential retirement accommodation; and

if the land is also used, or to be used, for a nursing home—for residential accommodation and nursing care for patients who, because of infirmity or illness, disease, incapacity or disability have a continuing need for nursing care; and

from which no business activity is conducted by the lessee, other than a business connected with the conduct of—

a retirement village; or

if a nursing home is also conducted under the same lease—the nursing home.

rural land means—

rateable land leased for the purpose of primary production only; or

rateable land leased for the purpose of primary production and other purposes but used mainly for primary production; or

a parcel of rateable land included in the common property of a community title scheme under the Community Title Act 2001, if no parcel of land in the scheme is—

residential land; or

leased for a commercial purpose.

Note Section 15 (2) disapplies this section in certain circumstances.

The following parcels of land are exempted from land tax:

a parcel of land held under a development lease by a corporation;

a parcel of residential land owned by a not-for-profit housing corporation.

In this section:

development lease, of land, means a lease for the development of the land by the lessee, or at the lessee’s expense, by clearing, filling, grading, draining, levelling or excavating the land to make it suitable for subdivision into parcels of land to be leased.

not-for-profit housing corporation means a corporation registered under the Corporations Act or the Co‑operatives National Law (ACT) with a constitution that—

states that the main objective of the corporation is the provision of housing; and

prohibits the corporation from making a distribution (whether in money, property or another way) to its members.

Note Section 15 (2) disapplies this section in certain circumstances.

This section applies if a parcel of land is, on the 1st day of a quarter—

owned by someone other than a corporation or trustee; and

occupied as the principal place of residence of 1 or more owners of the parcel of land.

The parcel of land is exempt from land tax.

Note Under s 14 the commissioner must be told within 30 days if there is a change in circumstances that would cause land tax to become payable for the parcel.

However, for 2 people in a domestic partnership with more than 1 parcel of land, only 1 parcel may be eligible for an exemption under this section unless the commissioner is satisfied the people have separated and there is no reasonable likelihood of cohabitation being resumed.

Note Under s 38 and the Taxation Administration Act, s 108, the commissioner must give the person a reviewable decision notice in relation to a decision to refuse to exempt a parcel of land because the commissioner is not satisfied 2 people in a domestic partnership have separated.