5CSurcharge land tax—certain development by Australian-based developers that are foreign persons

5C Surcharge land tax—certain development by Australian-based developers that are foreign persons

5C Surcharge land tax—certain development by Australian-based developers that are foreign persons

(1) An Australian corporation is entitled to a refund of an amount of surcharge land tax paid by the corporation in respect of residential land owned by the corporation at midnight on 31 December in a year (the taxing date) if the Chief Commissioner is satisfied that—

(a) a new home has been constructed on the land by the corporation or a related body corporate (before or after the taxing date) and sold by the corporation after the taxing date to a person who is not an associated person of the corporation without the home having been used or occupied for any purpose (other than as a display home) before the completion of that sale, or

(b) the land has been subdivided by the corporation (before or after the taxing date) for the purpose of its use for new home construction and sold by the corporation after the taxing date and after the issue of a subdivision certificate (as referred to in the Environmental Planning and Assessment Act 1979, section 6.4) for the subdivision, or

(c) the land has been used by the corporation or a related body corporate, before or after the taxing date, wholly or predominantly for commercial or industrial purposes.

(2) The amount of the refund to which an Australian corporation is entitled under this section is the amount that is determined in accordance with an order made by the Treasurer for the purposes of this section and published in the Gazette. The amount of the refund may be the full amount of surcharge land tax paid or a lesser amount (as determined in accordance with the order).

(3) The Chief Commissioner may approve a foreign person as an exempt person for particular land if the Chief Commissioner is of the opinion that the person is likely to become entitled under this section to a refund of the full amount of surcharge land tax payable by the person in respect of the land for a land tax year.

(4) A foreign person is exempt from liability to pay surcharge land tax in respect of land for a land tax year if the person is approved as an exempt person for the land for that land tax year.

(5) The approval of a foreign person as an exempt person under this section is subject to the following provisions—