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](/view/html/inforce/current/act-1979-203), 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— > > > > > (a) an approval may be given for one or more land tax years and can be given for a land tax year before or after the end of the land tax year, > > > > > (b) an approval may be given subject to conditions and the approval operates subject to any such conditions, > > > > > (c) the conditions of an approval may be varied by the Chief Commissioner at any time by notice to the person, > > > > > (d) an approval can be revoked by the Chief Commissioner at any time by notice to the person, > > > > > (e) the revocation of an approval can be backdated to extend to a tax year in respect of which the exemption conferred by the approval has already been applied, in which case surcharge land tax is payable and is to be assessed or reassessed as if the approval had never applied in respect of that tax year. > > > (6) Surcharge land tax may be refunded under this section only if an application for the refund is made— > > > > > (a) within 12 months after the entitling event, and > > > > > (b) no later than 10 years after completion of the transfer of the residential land to the Australian corporation. > > > (6AA) Surcharge land tax may not be refunded under this section if— > > > > > (a) completion of the transfer of the residential land to the Australian corporation occurred before 21 June 2016, and > > > > > (b) an application for the refund was not made on or before 21 June 2021. > > > (6A) For the purposes of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), section 9(3)(c), a reassessment under this section is authorised to be made more than 5 years after the initial assessment. > > > (7) In this section— > > > > associated person has the same meaning as in the [Duties Act 1997](/view/html/inforce/current/act-1997-123). > > > > Australian corporation means a corporation that is incorporated or taken to be incorporated under the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth. > > > > entitling event means— > > > > > (a) for a refund under subsection (1)(a)—the completion of the sale of the new home, or > > > > > (b) for a refund under subsection (1)(b)—the issue of the subdivision certificate, or > > > > > (c) for a refund under subsection (1)(c)—the start of the use of the land wholly or predominantly for commercial or industrial purposes. > > > > new home has the same meaning as in the [First Home Owner Grant and Shared Equity Act 2000](/view/html/inforce/current/act-2000-021). > > > > related body corporate has the same meaning as in the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth. > > > > transfer includes an assignment and an exchange. > > **s 5C:** Ins 2017 No 67, Sch 2 \[3\]. Am 2022 No 16, Sch 5\[2\]–\[6\]; 2022 No 59, Sch 2.24; 2024 No 90, Sch 3.