Land Tax Act 2000

Land Tax Act 2000

This Act may be cited as the Land Tax Act 2000.

This Act commences on 1 January 2001.

In this Act, unless the contrary intention appears –

agent includes a person who – for or on behalf of any other person – has the control, receipt or disposal of any real property, personal property, income or money belonging to that other person; or directly or indirectly remits income or money belonging to that other person to that person; or directly or indirectly sells or otherwise disposes of any real property or personal property belonging to that other person; or directly or indirectly sells or otherwise disposes of any real property belonging to another person;

assessed land value means – in relation to the value of land for the purposes of determining the amount of land tax, other than foreign investor land tax, that is payable – the value as calculated under section 23; or in relation to the value of land for the purposes of determining the amount of land tax, that is foreign investor land tax, that is payable – the value of the land as calculated under section 16A(2)(b) or section 16B, as applicable;

assessment means assessment as defined in the Taxation Administration Act 1997;

business includes any profession, trade, employment, vocation or calling, other than the occupation as an employee;

certified forest practices plan has the same meaning as in the Forest Practices Act 1985;

charitable institution is an institution that, in the opinion of the Commissioner, is established solely for charitable purposes and not for profit or gain;

Commissioner means the Commissioner of State Revenue appointed under the Taxation Administration Act 1997;

community service organisation means an organisation, association, society or club that, in the opinion of the Commissioner, is established for community service purposes;

cooperative housing society means a registered society within the meaning of the Co-operative Housing Societies Act 1963;

day-procedure centre means premises at which a person is admitted for medical treatment and discharged on the same day, but does not include – such premises conducted by or on behalf of the State or the Commonwealth; or a hospital or other health service conducted by or on behalf of the State or the Commonwealth; or a private hospital; or a residential care service;

dwelling includes a flat or structure used as a residence;

educational institution means – the University of Tasmania; or the Australian Maritime College; or an institution, conducted by or on behalf of the State government, that provides post-secondary vocational and educational training; or a school within the meaning of the Education Act 2016;

exempt land means land exempted under Division 2 of Part 2;

flat means – a room or suite of rooms designed or adapted for separate occupation; and any separate car parking accommodation or other separate facility located on or within the same parcel of land as that on which the building containing the room or suite of rooms is constructed;

Forest Practices Authority means the body continued by section 4AA of the Forest Practices Act 1985 under the name "Forest Practices Authority";

general land is land referred to in section 8;

Government Business Enterprise has the same meaning as in the Government Business Enterprises Act 1995;

home-unit company means a company in which all the issued shares are owned by persons each of whom has an exclusive right to occupy a flat which forms part of a building on land owned by a home-unit company;

interest means interest as defined in the Taxation Administration Act 1997;

land includes a stratum flat;

land tax means tax imposed by this or any other land tax rating Act;

land tax rating Act means an Act any or all of the provisions of which fix a scale of land tax;

land value means the value of land as assessed under the Valuation of Land Act 2001;

medical establishment means – a day-procedure centre; or a private hospital; or a residential care service;

owner has the meaning given by section 3A;

penalty tax means a penalty tax as defined in the Taxation Administration Act 1997;

prescribed dwelling means a permanent building of predominantly residential character affixed to land for which human occupation or habitation is not forbidden by a closure order made by a council under section 87 of the Public Health Act 1997;

primary production land means land referred to in section 7;

principal residence means a dwelling used as the main place of residence;

principal residence land means land referred to in section 6;

private hospital means premises at which a person is provided for fee, gain or reward with medical, surgical or other treatment, or accommodation for the purposes of such treatment, and with ancillary nursing care but does not include – such premises conducted by or on behalf of the State or the Commonwealth; or a day-procedure centre; or a residential care service;

qualifying home business means a business – operated from land on which a prescribed dwelling is located; and operated from that prescribed dwelling or a building ordinarily found on residential land that is not of a solely commercial character; and operated by a person who is the owner of the land or spouse, sibling, child or parent of the owner of the land; and for which the land is the sole permanent business premises of that person; and for the operation of which no more than 50% of the floor area of the prescribed dwelling is ordinarily used;

reassessment means reassessment as defined in the Taxation Administration Act 1997;

registered trustee company means – a trustee company as defined in the Trustee Companies Act 1953 or in a similar law of another State or a Territory of the Commonwealth; or the Public Trustee as defined in the Public Trustee Act 1930;

related companies means companies that are related as provided by section 31;

related person, in relation to an owner, means – the spouse or former spouse of the owner; or if the owner is deceased, the beneficiary of the estate of the owner; or a beneficiary of a trust appointed by a court; or a shareholder of a home-unit company or a spouse or former spouse of the shareholder; or a person with an exclusive right to occupy a flat owned by a retirement village or a spouse or former spouse of that person; or the person with whom the owner is in a caring relationship which is the subject of a deed of relationship registered under Part 2 of the Relationships Act 2003;

residential care service means premises where accommodation and personal care or nursing are provided to an elderly person who is not a member of the immediate family of the proprietor of the service, but does not include a service providing accommodation for persons otherwise living independently, even though the provision of accommodation may or may not include domestic services such as the preparation of meals, cleaning services and laundry services;

retirement village means a complex of residential premises, including adjacent land, established for retired persons and their spouses, or predominantly for retired persons and their spouses – if before or on becoming a resident of the complex a retired person or spouse, or both, is required to pay a contribution to the operator of the complex; and if any one or more of the following situations apply:a residential premises in the complex is occupied by a retired person and spouse by reason of a contract, lease or licence for the residency of the premises to which the retired person or spouse, or both, is a party; a residential premises in the complex is occupied by a retired person and spouse by a right of occupation conferred by the ownership of shares by the retired person or spouse, or both; a residential premises in the complex is purchased from the operator of the complex by a retired person or spouse, or both, subject to a right or option of the operator to buy back those premises; a residential premises in the complex is purchased from the operator of the complex by a retired person or spouse, or both, subject to conditions restricting the right of the retired person or spouse, or both, to dispose of those premises; other prescribed circumstances exist;

retirement village company means a company that operates a retirement village;

shareholder includes member or stockholder;

special disability trust has the meaning it has in section 1209L of the Social Security Act 1991 of the Commonwealth;

spouse, in relation to a person, includes the person who is in a significant relationship, within the meaning of the Relationships Act 2003, with that person;

State Permanent Forest Estate Policy means the policy of that name referred to in section 4C(fb) of the Forest Practices Act 1985;

stratum flat means a flat in respect of which a separate valuation made under the Valuation of Land Act 2001 is in force;

taxpayer means a person who is liable to pay land tax;

transfer, in relation to land, means the passage of an estate or interest in land from one person to another person – by an act done by any means by the transferor with that intention, regardless of whether or not consideration is given; or by operation of law, including but not limited to a transfer on forfeiture of the land under an Act, on inheritance or descent on the death of the person, on the bankruptcy or administration of the person and on the order of a court;

trustee includes – a person appointed or constituted trustee by any act of parties, order, declaration of a court or operation of law; and an executor or administrator, guardian, committee, receiver or liquidator; and a person who – has the administration or control of income affected by any express or implied trust; or is acting in any fiduciary capacity; or has the possession, control or management of the income of a person under any legal or other disability.

In respect of land – owner means – the person in whom the estate in fee simple is vested; or a person, or a person of a class, prescribed by the regulations for the purposes of this definition.

For the purposes of subsection (1), the person in whom the estate in fee simple is vested is, unless the Commissioner on reasonable grounds determines otherwise, the person who appears, from a folio of the Register kept under section 33 of the Land Titles Act 1980, to be the owner of that estate.

If a person appears by a folio of the Register kept under section 33 of the Land Titles Act 1980 to be entitled, in respect of any land, to an estate of freehold for his or her life, that person is taken to be the owner of the land instead of the person entitled to the estate in fee simple in remainder.

For the purposes of this Act, joint tenants in relation to land are to be taken to be tenants in common in equal shares in relation to the land.

Any term defined in this Act when used in a land tax rating Act has the same meaning as so defined unless the context otherwise indicates.

A person has an exclusive right to occupy a flat even if the person –

lets the flat or part of the flat to another person; or shares the occupation of the flat with one or more persons.

is land on which the principal residence of an owner of at least a 50% interest in the land or a related person of such an owner is situated.

The Commissioner is to determine that adjoining land is principal residence land if satisfied that – the land is on a separate title held by the owner of the principal residence land; and there is no dwelling on the land that is used as a place of residence; and the land is used by that owner solely in conjunction with the principal residence land; and the owner does not receive any income from the use of that land; and the owner of at least a 50% interest in the principal residence land is also the owner of at least a 50% interest in the adjoining land.

The Commissioner, on application by a trustee of a trust, is to determine that land is principal residence land for a financial year if – the land is held by – a registered trustee company; or an executor, administrator, guardian, committee, receiver or liquidator; or the trustee of a special disability trust; or a trustee appointed by a court; or the trustee of a fixed trust in which all of the beneficiaries are individually named or are descendants of individually named beneficiaries; and the principal residence of a beneficiary of the trust is situated on the land as at 1 July in that financial year; and the Commissioner is satisfied that the beneficiary does not own any other principal residence land.

For the purposes of subsection (3)(b), a person is taken to be a beneficiary of a fixed trust referred to in subsection (3)(a)(iv) only if the person would be entitled, on the winding up of the trust, to 50% or more of the value of the income and capital of the trust.

The Commissioner, on application by a company, is to determine that land is principal residence land for a financial year, if – the land is beneficially owned by the company; and the principal residence of a person who owns 50% or more of shares in the company is situated on the land as at 1 July in that financial year; and the Commissioner is satisfied that the person does not own any other principal residence land; and the Commissioner is satisfied that the person, by reason of his or her ownership of 50% or more shares in another company, does not have another principal residence situated on other land which – is beneficially owned by that other company; and has been determined under this subsection to be principal residence land.

The Commissioner is to determine that land owned by a home-unit company is principal residence land if any flat on that land is the principal residence of a person owning shares in the home-unit company.

The Commissioner is to determine that a part of land owned by a cooperative housing society is principal residence land if that part is used for residential purposes.

If a person occupies residential premises in a retirement village as his or her principal place of residence, any other land owned by the person is not that person's principal place of residence.

Subsections (10) and (11) apply in relation to land in relation to a financial year only if, but for those subsections, the land would not, under this section, be principal residence land in relation to that financial year.

This subsection and subsection (11) apply to land in relation to a financial year (in this section referred to as the relevant financial year) beginning on 1 July of that year (the assessment day) if – at 1 July in the previous financial year (in this section referred to as the critical date), land is principal residence land under subsection (1); and the person who – was the sole owner of the land on the critical date; or is a person who the Commissioner determines is to be taken to be the sole owner of the land on the critical date – dies on or after the critical date and before the assessment day; and the principal residence of that person was, on the critical date, situated on the land; and the land is not, after the critical date and before the assessment day – sold in whole or in part; or transferred, in whole or in part, other than to the personal representative of the deceased person.

If subsection (10) applies to land in relation to a relevant financial year – the land is taken to be, on the assessment day, principal residence land; and section 26 does not apply in relation to the land for the relevant financial year.

If – subsection (10) applies to land in relation to a relevant financial year; and another area of land was, at the critical date, adjoining land under subsection (2) in relation to the land referred to in paragraph (a); and the adjoining land satisfies, on the assessment day, the requirements of subsection (2)(a), (ab) and (d); and no income is derived from the adjoining land after the critical date and before the assessment day; and the adjoining land is not, after the critical date and before the assessment day – sold in whole or in part; or transferred, in whole or in part, other than to the personal representative of the deceased person – the adjoining land is taken to be, on the assessment day, principal residence land and section 26 does not apply in relation to the adjoining land for the relevant financial year.

Land is primary production land if it is – used substantially for the business of primary production; or declared a private timber reserve under the Forest Practices Act 1985; or permanent timber production zone land within the meaning of the Forest Management Act 2013; or land in respect of which there is in effect a certified forest practices plan, being a plan certified by the Forest Practices Authority under section 19 of the Forest Practices Act 1985 in accordance with the State Permanent Forest Estate Policy.

The business of primary production means any one or more of the following carried out in a business-like manner with a reasonable expectation of profit:cultivating land to sell the produce of the cultivation; maintaining animals or poultry for sale or selling their natural increase or bodily produce; keeping bees to sell their honey; commercial fishing and cultivating aquatic plants or animals, including the preparation for fishing and the storage and preservation of fish and fishing gear; cultivating or propagating for sale plants, seedlings, mushrooms or orchids.

is land that is not –

principal residence land; or primary production land.

The Taxation Administration Act 1997 applies to land tax.