Taxation Administration Act 1999

This section applies if—

a parcel of land is held by the owner under a lease from the Commonwealth for a term of years; and

the commissioner has complied with section 56I in relation to the parcel; and

tax payable for the parcel is in arrears for at least 90 days after the day of notification under section 56I in relation to the parcel.

The commissioner may apply to a court of competent jurisdiction for an order for the sale of—

the lease; and

any improvements made on or to the parcel of land under the lease.

In the application, the commissioner may ask that the proceeds of the sale also be applied in paying the total amount of any other tax liability under this Act in arrears for 1 or more related parcels of land stated in the application.

If the court is satisfied that this section applies to the parcel, the court may—

order the sale by public auction of the parcel, or as much of the parcel as will be enough to pay the total of the following:

the total amount of tax liability under this Act in arrears for the parcel at the time the court makes the order;

costs and expenses in relation to the declaration, application and sale in relation to the parcel;

if the commissioner has made a request mentioned in subsection (3) in the application in relation to another parcel of land and the court is satisfied that the parcel is a related parcel of land—the total amount of any tax liability under this Act in arrears for the other parcel, at the time the court makes the order; and

order that the proceeds be paid into court; and

order that the title to the parcel be transferred to the purchaser free from mortgages and other encumbrances.

The proceeds of the sale must be applied in the following order:

first, the commissioner is entitled to be paid the total of the amounts mentioned in subsection (4) (a) (i) and (ii);

second, a person who was a mortgagee of the parcel before the sale is entitled to be paid the amount owing to the person under the mortgage (or, if that amount is more than the amount of any remaining proceeds, the remaining proceeds);

third, subject to subsection (9), the commissioner is entitled to be paid the total of amounts to which subsection (4) (a) (iii) applies (or, if that amount is more than the amount of any remaining proceeds, the remaining proceeds);

finally, subject to subsection (10), the person who was the owner of the parcel before the sale is entitled to be paid any balance.

The commissioner must be paid out of court any amounts to which the commissioner is entitled under subsection (5) without a court order.

If a person who was the owner or mortgagee of the parcel before the sale hands over to the court the certificate or other title to the parcel, the person must be paid out of court any amount to which the person is entitled under subsection (5) without a court order.

If there were 2 or more mortgagees of the parcel before the sale, the court may make the orders about their respective entitlements that the court considers just.

On application by a person who has an interest in the land otherwise than as owner or mortgagee, the court may order that the person is entitled to be paid the value of the person’s interest (as decided by the court) in priority to the commissioner’s entitlement under subsection (5) (c).

On application by any other interested person, the court may order payment out of court of all or part of any balance to a person other than the person who was the owner before the sale if the court considers it just to do so.

Any sale of the parcel or a part of the parcel under this section must be abandoned if the owner pays—

the total tax liability under this Act in arrears for the parcel at the time of the payment; and

the costs and expenses incurred up to the time of payment in relation to the declaration, application and sale in relation to the parcel; and

the costs and expenses reasonably incurred in relation to the abandonment of the sale; and

if the commissioner has made a request under subsection (3) in the application in relation to 1 or more related parcels of land—the total amount of any tax liability under this Act in arrears for the related parcel or parcels at the time of the payment.

In this section:

the parcels have the same owner; and

the commissioner has complied with section 56I in relation to them.