Division 3—Taxable value of land
7—Taxable value of land
(1) Subject to this Act, the site value of land is its taxable value.
(2) Land tax in respect of a particular financial year is calculated on the basis of determinations of site value in force under the Valuation of Land Act 1971 as at midnight on 30 June immediately preceding the commencement of that financial year (whether the determination is actually made before, on or after that date).
(3) Where a determination of site value as in force at the date referred to in subsection (2) is corrected or amended under the Valuation of Land Act 1971 (whether in pursuance of an objection, review or appeal or otherwise), the determination of site value, as corrected or amended, must be used for the calculation of land tax.
7A—Reduction in taxable value for certain build‑to‑rent properties
(1) For the purpose of assessing land tax, the taxable value of a parcel of land is to be reduced by 50% if—
(a) a building is situated on the land; and
(b) construction of the building commenced on or after 1 July 2023; and
(c) the Commissioner is satisfied that the building is being used for a build‑to‑rent property in accordance with subsection (2); and
(d) an application for the reduction is made in accordance with this section.
(2) A building will only be taken to be used for a build‑to‑rent property for the purposes of this section if—
(a) the building, and the use of the building as a build‑to‑rent property, complies with all requirements applicable under the Planning, Development and Infrastructure Act 2016; and
(b) each tenant of the build‑to‑rent dwellings or units in the property is offered (on a genuine basis) a lease of a term not less than 3 years (and any shorter lease may only be entered into at the option of the tenant); and
(c) any other requirements prescribed by the regulations are complied with.
(3) Regulations made for the purposes of this section may include provisions with respect to—
(a) the minimum number of build‑to‑rent dwellings or units within a property; and
(b) the development of affordable housing in build‑to‑rent properties; and
(c) any other matters relating to build‑to‑rent properties and the land on which build‑to‑rent properties are situated.
(4) Regulations made for the purposes of this section may—
(a) apply generally or be limited in their application by reference to specified exceptions or factors; or
(b) apply differently according to different factors of a specified kind, or both.
(5) If the Commissioner is satisfied that only part of a parcel of land is being used for a build‑to‑rent property, the reduction in land value under subsection (1) is to be proportionately decreased in accordance with the regulations.
(6) This section does not apply to an owner of land in respect of a financial year unless—
(a) the owner applies to the Commissioner for the reduction, in the form approved by the Commissioner, either before, or during, that financial year; and
(b) the owner furnishes the Commissioner with the evidence that the Commissioner requests for the purpose of enabling the Commissioner to determine whether there is an entitlement to the reduction.
(7) An owner of land whose liability to pay land tax in respect of a financial year has been assessed in accordance with this section must, if this section ceases to apply to the land during that financial year, within 1 month after that occurs, inform the Commissioner of the date on which this section ceased to apply to the land.
(8) If this section ceases to apply to land during a financial year—
(a) the taxable value of the land will not be reduced under this section for the purposes of determining the land tax payable for that financial year; and
(b) the Commissioner may, accordingly, reassess the land tax payable in respect of the land for that financial year.
(9) This section will expire immediately before midnight on 30 June 2040.
Part 3—Assessment of land tax
Division 1—General
8A—Calculation of land tax
(1) Subject to subsection (1a), land tax for land with a taxable value falling within a threshold set by this section is calculated in accordance with the table in Schedule 1 Part 2 clause 2 for the 2020/2021 and 2021/2022 financial years and in accordance with the table in Schedule 1 Part 2 clause 3 for the 2022/2023 financial year and for each subsequent financial year.
(1a) If land with a taxable value exceeding $25 000 is owned by a person as trustee of a trust, land tax for the land is calculated in accordance with the table in Schedule 1 Part 3 clause 4 for the 2020/2021 and 2021/2022 financial years and in accordance with the table in Schedule 1 Part 3 clause 5 for the 2022/2023 financial year and for each subsequent financial year.
(1b) Subsection (1a) does not apply to—
(a) land subject to a fixed trust if a written notice of the beneficial interests in the land is in force under section 12; or
(b) land subject to a unit trust scheme if a written notice of the unitholdings in the scheme is in force under section 13; or
(c) land subject to a discretionary trust if—
(i) the land is pre-existing trust land (within the meaning of section 13A); and
(ii) a written notice of a designated beneficiary of the trust is in force under section 13A; or
(d) land subject to an excluded trust; or
(e) land subject to a public unit trust scheme.
Other provisions of this Part provide for assessment of land tax in the above cases in accordance with subsection (1) at the rates set out in Schedule 1 Part 2.
(1c) Subsection (1a) does not apply to land that is owned by a corporation if the corporation is grouped with 1 or more related corporations under Division 6 and land tax is assessed in accordance with section 13J.
(2) For the 2020/2021 financial year, the thresholds will be as follows:
Threshold
Amount
Threshold A
$450 000
Threshold B
$550 000 (the unadjusted 2010/2011 amount) adjusted in accordance with subsection (2a)
Threshold C
$800 000 (the unadjusted 2010/2011 amount) adjusted in accordance with subsection (2a)
Threshold D
$1 350 000
(2a) An amount described as an "unadjusted 2010/2011 amount" in the table in subsection (2) is to be adjusted according to the following formula (to take into account increases in the site value of land occurring since the thresholds were last set in relation to the 2010/2011 financial year):
Threshold2020
represents the adjusted threshold for the 2020/2021 financial year
Threshold1
represents the unadjusted 2010/2011 amount
Index value2020
= Index value2019 x (1 + average percentage change in site values for the 2020/2021 financial year)
where Index value2019 is the Index value for the 2019/2020 financial year determined in accordance with this section as in force immediately before the commencement of this subsection, Index value2020 is the Index value for the 2020/2021 financial year and the average percentage change in site values for that financial year is determined under subsection (4).
(3) Subject to this section, for each financial year after the 2020/2021 financial year (year x), thresholds A, B and C will be adjusted to take into account increases in the site value of land according to the following formula:
Thresholdyear x
represents each of the thresholds for the relevant financial year (year x)
Threshold1
represents each of the relevant thresholds set out in subsection (2) for the 2020/2021 financial year
Index valueyear x
= Index valueyear x-1 x (1 + Avg percentage change in site valuesyear x)
where Index valueyear x is the Index value for the relevant financial year (year x) and the average percentage change in site values for that financial year is determined under subsection (4), and with the Index value for the 2020/2021 financial year being 1.
(3a) Subject to this section, for each financial year after the 2020/2021 financial year, threshold D will be adjusted in accordance with the following table:
Financial year
Threshold D amount
2021/2022
$1 350 000
2022/2023
$2 000 000
2023/2024 and each subsequent financial year
$2 000 000 adjusted in accordance with subsection (3b)
(3b) Subject to this section, for the 2023/2024 financial year and each subsequent financial year (year x), threshold D will be adjusted to take into account increases in the site value of land according to the following formula:
Threshold Dyear x
represents threshold D for the relevant financial year (year x)
Index valueyear x
= Index valueyear x-1 x (1 + Avg percentage change in site valuesyear x)
where Index valueyear x is the Index value for the relevant financial year (year x) and the average percentage change in site values for that financial year is determined under subsection (4), and with the Index value for the 2022/2023 financial year being 1.
(4) For the purposes of subsections (2a), (3) and (3b), the average percentage change in site values for a particular financial year will be determined by the Valuer‑General after the application of the following principles:
(a) in determining the average percentage change in site values for the financial year, the Valuer‑General will take into account changes in the site value of land according to valuations applying under the Valuation of Land Act 1971 with respect to a period of 12 months expiring on a date to be determined by the Valuer‑General, being a date that falls on or before 30 June in the financial year immediately preceding the relevant financial year;
(b) the average percentage change in site values must take into account changes in the site value of residential land and changes in the site value of other land (as identified by the Valuer‑General), with the averaging being undertaken in accordance with a method determined to be appropriate by the Valuer‑General after taking into account the provisions of this Act and the Valuation of Land Act 1971;
(c) for the purposes of paragraphs (a) and (b)—
(i) vacant land zoned for residential purposes will be treated as residential land and vacant land zoned for any other purpose (other than primary production) will be treated as other land; and
(ii) land used for primary production must be excluded.
(4a) If, after applying subsection (4) to determine the Index value for the 2020/2021 financial year under subsection (2a), the result would be an Index value for that year that would be less than or equal to the Index value that applied for the 2019/2020 financial year or a preceding financial year, the adjusted thresholds for the 2020/2021 financial year will be taken to be the thresholds that applied for the 2019/2020 financial year.
(5) If, after applying subsection (4) to determine the Index value for a particular financial year (year x) under subsection (3) or (3b), the result would be an Index value for year x that would be less than or equal to an Index value that has applied for—
(a) if the Index value is determined under subsection (3)—the 2020/2021 financial year or a subsequent financial year occurring before year x; or
(b) if the Index value is determined under subsection (3b)—the 2022/2023 financial year or a subsequent financial year occurring before year x,
the thresholds for year x will remain unchanged (so as to be equal to the year x-1 amounts).
(6) On or before 30 June in each year (commencing in 2011), the Valuer‑General must publish by notice in the Gazette—
(a) the average percentage change in site values for the ensuing financial year (year x); and
(b) the Index value for the ensuing financial year (year x).
(7) The Commissioner must, on or after the publication of a notice under subsection (6) with respect to a financial year (the ensuing financial year under subsection (6)), by notice in the Gazette, publish the thresholds that will apply with respect to that financial year (being a notice that may be published before, on or after 1 July in that financial year).
(8) For the purposes of subsection (7), the thresholds will be rounded to the nearest $1 000 (with an amount of $500 rounded up).
(9) A notice under subsection (7) will have effect according to its terms (and be conclusive in all respects for the purposes of this section).
8B—Aggregation of land
(1) Except as otherwise provided by this Act, land tax is calculated on the basis of the aggregate taxable value of all land owned by the taxpayer.
(2) If a taxpayer is liable to pay land tax in respect of land included in more than 1 land tax assessment, the land tax is (subject to any additional levy that affects portion only of that land) apportioned to and chargeable on the land included in the various assessments in the proportions that the taxable value of the land included in each separate assessment bears to the aggregate taxable value of all the land.
9—Land tax where more than 1 owner of land
(1) This section applies where 2 or more persons are the owners of the same land (whether in the same or in different capacities).
(2) If 2 or more persons are owners of the same land but not all in the same capacity, the Commissioner may treat all who are owners of the land in a particular capacity (to be determined by the Commissioner) as—
(a) the sole owner or owners of the land; and
(b) the sole taxpayer or taxpayers for the land.
(3) If the Commissioner treats a person or persons as the sole owner or owners of land under subsection (2), the provisions of this Act under which the value of land is aggregated, for the purpose of the assessment of tax, with the value of other land will apply as if that person or those persons were the sole owner or owners of the land.
(4) Subject to subsection (5), the owners of the land are to be jointly assessed for land tax on the land as if it were owned by a single person, without regard to—
(a) the separate interest of each owner; or
(b) any other land owned by any owner (either alone or with someone else).
(5) Subsection (4) does not affect the operation of any provisions of this Act under which the value of land is aggregated, for the purpose of the assessment of tax, with the value of other land.
(6) In addition, each owner of the land is to be separately assessed for land tax on—
(a) the owner's individual interest in the land (as if the owner were the owner of a part of the land in proportion to that interest); and
(b) any other land owned by the owner alone; and
(c) the owner's individual interest in any other land.
(7) Subsection (6) does not apply to land subject to an excluded trust.
(8) Subject to subsection (9), there is to be deducted from the land tax assessed for an owner under subsection (6) an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
A is the proportion of the owner's individual interest in the land to the total interests in that land
B is the total amount of land tax assessed on the land under subsection (4).
The deduction is applied to the total land tax assessed for the owner and not just to the land tax assessed for this land.
(9) If a deduction under subsection (8) would result in a negative amount—
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(10) If an owner of land is a trustee of a trust to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment of the owners of the land as referred to in subsection (4), but regard is to be had to the existence of the trust in relation to the separate assessment of the owners as referred to in subsection (6).
(11) This section applies subject to the operation of section 5AA.
9A—Land under Help to Buy arrangement
(1) For the purposes of assessing land tax on land purchased under a Help to Buy arrangement, an interest the Commonwealth or Housing Australia has in the land is to be disregarded.
(2) In this section—
Help to Buy arrangement has the same meaning as in the Help to Buy Act 2024 of the Commonwealth;
Housing Australia has the same meaning as in the Housing Australia Act 2018 of the Commonwealth.
Division 2—Land divided by community or strata plan
10—Assessment of tax against land divided by community or strata plan
(1) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996—
(a) in the case of the division of land by a primary plan—land tax will be assessed against the primary lots that are not divided by a secondary plan and against a development lot or lots (if any); and
(b) in the case of the division of land by a secondary plan—land tax will be assessed against the secondary lots that are not divided by a tertiary plan and against the development lot or lots (if any); and
(c) in the case of the division of land by a tertiary plan—land tax will be assessed against the tertiary lots and a development lot or lots (if any).
(2) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996—
(a) in the case of the division of land by a primary plan—where the use of the common property or part of it is, in the opinion of the Valuer‑General, reasonably incidental to the use of 1 or more of the primary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, that attaches to each primary lot will be regarded for the purposes of valuation as part of the lot; and
(b) in the case of the division of land by a secondary plan—where the use of the common property or part of it is, in the opinion of the Valuer‑General, reasonably incidental to the use of 1 or more of the secondary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, (and in the common property of the primary scheme referred to in paragraph (a) (if any)) that attaches to each secondary lot will be regarded for the purposes of valuation as part of the lot; and
(c) in the case of the division of land by a tertiary plan—where the use of the common property or part of it is, in the opinion of the Valuer‑General, reasonably incidental to the use of 1 or more of the tertiary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, (and in the common property of the primary and secondary schemes referred to in paragraphs (a) and (b) (if any)) that attaches to each tertiary lot will be regarded for the purposes of valuation as part of the lot.
(3) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996 and the use of the common property or any part of it is not, in the opinion of the Valuer‑General, reasonably incidental to the use of any of the community lots, land tax will be levied against the common property or that part of it and the relevant community corporation is liable for the tax as though it were the owner of the common property.
(4) If land is divided by a strata plan under the Strata Titles Act 1988, land tax will be assessed against the strata units but not against the common property.
Division 3—Land held on trust
11—Separate assessment of trust land
Where a person is the owner of land as trustee of a trust (other than a trust arising because of a contract to purchase or acquire an estate or interest in the land), the trustee is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
This means that where an interest in land is held on trust (other than a trust arising because of a contract to purchase or acquire an estate or interest in the land) and the trustee is the taxpayer for the land, the taxable value of the interest in land—
• will be aggregated with the taxable value of other land subject to the same trust; but
• will not be aggregated with the taxable value of other land owned by the same taxpayer and not subject to the same trust.
12—Land tax for fixed trust if beneficial interests notified to Commissioner
(1) A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.
(2) A notice must be in the form, and contain the information, determined by the Commissioner.
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the following year, and remains in force until it is withdrawn by the trustee.
(4) Despite subsection (1), if a trustee withdraws a notice that is in force under this section in respect of a fixed trust, the trustee cannot lodge another notice under this section in respect of that fixed trust.
For changes to beneficial interests see section 13D(6)
(5) If a notice is in force under this section for a fixed trust, the following provisions apply:
(a) a beneficiary of the trust is deemed, for the purposes of this Act (other than a residential land exemption), to be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust as the beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is liable for land tax on that land accordingly, together with any other land owned by the beneficiary, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(b) however, if any land—
(i) constitutes the principal place of residence for all of the beneficiaries of the trust; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the beneficiaries are deemed to be the owners of the land for the purposes of the residential land exemptions;
(c) the trustee is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by the trustee.
If the beneficiaries are exempt from land tax under paragraph (b), the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
(6) Subject to subsection (7), there is to be deducted from the land tax payable by a beneficiary under subsection (5)(a) an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
A is the proportion of the beneficiary's beneficial interest in the land subject to the trust to the total beneficial interests in land subject to the trust
B is the total amount of land tax assessed on the trustee under subsection (5)(c).
The deduction is applied to the total land tax assessed for the beneficiary and not just to the land tax assessed for the land subject to the trust.
(7) If a deduction under subsection (6) would result in a negative amount—
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(8) Subsection (5)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.
Section 13B(1)(a) deems such a person to be the owner of land.
(9) For the purposes of this section, a reference to a fixed trust does not include a public unit trust scheme.
13—Land tax for unit trust scheme if unitholdings notified to Commissioner
(1) A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.
(2) A notice must be in the form, and contain the information, determined by the Commissioner.
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the following year, and remains in force until it is withdrawn by the trustee.
(4) Despite subsection (1), if a trustee withdraws a notice that is in force under this section in respect of a unit trust scheme, the trustee cannot lodge another notice under this section in respect of that unit trust scheme.
For changes to unitholdings see section 13D(7).
(5) If a notice is in force under this section for a unit trust scheme, the following provisions apply:
(a) a unitholder in the scheme is deemed, for the purposes of this Act (other than a residential land exemption) to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is liable for land tax on that land accordingly, together with any other land owned by the unitholder, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(b) however, if any land—
(i) constitutes the principal place of residence for all of the unitholders in the scheme; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the unitholders are deemed to be the owners of the land for the purposes of the residential land exemptions;
(c) the trustee is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by the trustee.
If the unitholders are exempt from land tax under paragraph (b), the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
(6) Subject to subsection (7), there is to be deducted from the land tax payable by a unitholder under subsection (5)(a) an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
A is the proportion of the unitholder's unitholding in the scheme to the total unitholdings in the scheme
B is the total amount of land tax assessed on the trustee under subsection (5)(c).
The deduction is applied to the total land tax assessed for the unitholder and not just to the land tax assessed for the land subject to the unit trust scheme.
(7) If a deduction under subsection (6) would result in a negative amount—
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(8) Subsection (5)(a) does not apply to a unitholder who holds units as trustee of another trust.
Section 13B(1)(b) deems such a person to be the owner of land.
(9) For the purposes of this section, a reference to a unit trust scheme does not include a public unit trust scheme.
13A—Land tax for discretionary trust if beneficiary notified to Commissioner
(1) A trustee of a discretionary trust to which land is subject may, not later than 31 December 2021, lodge with the Commissioner a written notice specifying 1 beneficiary of the trust who, subject to subsections (13) and (14), is to be taken to be the designated beneficiary of the trust for the purposes of this section.
(2) For the avoidance of doubt, a trust may only have 1 person who is the designated beneficiary for the purposes of this section (and may only substitute the designated beneficiary by notice lodged under subsection (5)).
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the previous or following year, and remains in force until it is withdrawn by the trustee or until the designated beneficiary notifies the Commissioner, in writing, that they no longer consent to being the designated beneficiary (in which case the notice is deemed to have been withdrawn by the trustee).
(4) A designated beneficiary may be substituted—
(a) if the designated beneficiary dies or becomes incapacitated; or
(b) if the Commissioner is satisfied that, because of a marriage, de facto relationship or domestic relationship that has broken down irretrievably, the designated beneficiary will no longer be a beneficiary of the trust; or
(c) in circumstances prescribed by the regulations.
(5) If the designated beneficiary may be substituted in accordance with subsection (4), a trustee of the trust may lodge with the Commissioner a written notice—
(a) advising the Commissioner of the grounds on which the designated beneficiary may be substituted; and
(b) specifying the name of another beneficiary of the trust who is to be taken to be the designated beneficiary for the purposes of this section in place of the beneficiary named in the original notice.
(6) If a written notice is lodged under subsection (5)—
(a) subject to subsection (13), the beneficiary of the trust specified in the notice becomes the designated beneficiary of the trust; and
(b) the notice under subsection (1) is taken to have been varied accordingly.
(7) A notice under this section must be in the form, and contain the information, determined by the Commissioner.
(8) Despite subsection (1), if a trustee withdraws a notice that is in force under this section in respect of a discretionary trust, the trustee cannot lodge another notice under this section in respect of that discretionary trust.
(9) If a notice is in force under this section for a discretionary trust, the following provisions apply:
(a) the designated beneficiary of the trust is deemed, for the purposes of this Act (other than a residential land exemption), to be the owner (but not to the exclusion of the trustee) of land that was subject to the trust at the prescribed time (pre‑existing trust land) and is liable for land tax on that land accordingly, together with any other land owned by the beneficiary, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(b) however, if any pre‑existing trust land—
(i) constitutes the principal place of residence of the designated beneficiary; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the designated beneficiary is deemed to be the owner of the land for the purposes of the residential land exemptions;
(c) the trustee for the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—
(i) in the case of pre-existing trust land—in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2; or
(ii) in the case of land that became subject to the trust after the prescribed time (subsequent trust land)—in accordance with section 8A(1a) at the rates set out in Schedule 1 Part 3; or
(iii) in the case where land subject to the trust consists of both pre‑existing trust land and subsequent trust land—in accordance with the following formula:
L is the land tax assessed for the trustee
R1 is the applicable rate of land tax set out in Schedule 1 Part 2
R2 is the applicable rate of land tax set out in Schedule 1 Part 3
T is the total taxable value of all taxable land subject to the trust
A is the total taxable value of the pre-existing trust land subject to the trust
B is the total taxable value of the subsequent trust land subject to the trust.
If the designated beneficiary is exempt from land tax under paragraph (b), the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
(10) If land subject to the trust constitutes the principal place of residence of the trustee, this section does not affect the application of a residential land exemption to the land.
(11) Any land tax payable by the trustee under subsection (9)(c) in respect of pre-existing trust land is to be deducted from land tax payable by the designated beneficiary.
The deduction is applied to the total land tax assessed for the designated beneficiary and not just to the land tax assessed for the land subject to the trust.
(12) If a deduction under subsection (11) would result in a negative amount—
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(13) Subject to subsection (14), a beneficiary of a trust may be the designated beneficiary of the trust for the purposes of this section only if the beneficiary—
(a) is a natural person; and
(b) was a beneficiary of the trust at the prescribed time; and
(c) is over 18 years of age; and
(d) has verified by statutory declaration that the beneficiary consents to being the designated beneficiary of the trust.
(14) Where no beneficiaries of a trust are over 18 years of age, a notice under this section may specify that the trustee is to be taken to be the designated beneficiary (as if the trustee were a beneficiary of the trust) but only if the trustee is a natural person.
(15) For the purposes of this section, a reference to a discretionary trust does not include a public unit trust scheme.
(16) In this section—
prescribed time means midnight on the day on which the Land Tax (Miscellaneous) Amendment Act 2019 was introduced in the House of Assembly.
13B—Land tax for beneficiary/trustees
(1) A person who—
(a) holds a beneficial interest in land subject to a fixed trust in respect of which a notice is in force under section 12 (the first trust) as trustee of another trust (the second trust) is deemed, for the purposes of this Act other than a residential land exemption, to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust; and
(b) holds units in a unit trust scheme in respect of which a notice is in force under section 13 (the first scheme) as trustee of another trust (the second trust) is deemed, for the purposes of this Act other than a residential land exemption, to be the owner of land subject to the first scheme that bears the same proportion to the whole of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.
(2) For the purposes of this section, a person referred to in subsection (1) is called a beneficiary/trustee.
(3) Subject to subsection (4), there is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
A is—
(a) the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or
(b) the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme
B is the total amount of land tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme.
(4) If a deduction under subsection (3) would result in a negative amount—
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(5) This section does not apply where the first or second trust, or the first scheme, is an excluded trust.
13C—Land tax for excluded trusts and public unit trust schemes
A trustee of an excluded trust or of a public unit trust scheme is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by them as a trustee.