Part 6Determining COVID-19 debt temporary surcharge if land has been assessed on single holding basis

Part 6—Determining COVID-19 debt temporary surcharge if land has been assessed on single holding basis Sch. 1 cl. 6.1 inserted by No. 38/2023 s. 46. 6.1 Surcharge for land subject to rates of land tax set out in Parts 1 and 4 of this Schedule (1) This clause applies if— (a) an amount is being determined under section 37(3A), 46G(5A) or 46IE(7) in respect of land; and (b) any of the land (other than land in respect of which a nomination under section 46H is in force) is subject to land tax at the applicable rate under Part 1 or 4 of this Schedule. (2) The rate for determining the amount for each of the years from 2024 to 2033 is set out in Table 6.1. **Table 6.1** | *Item* | *Column 1 Taxable value not less than* | *Column 2 Taxable value less than* | *Column 3 Rate of land tax surcharge* | | 3 | 100 000 | 300 000 | $975 | | 4 | 300 000 | | $975 and 0⋅1% of the taxable value that exceeds $300 000 | Sch. 1 cl. 6.2 inserted by No. 38/2023 s. 46. 6.2 Owners of land subject to rates of land tax set out in Parts 3 and 5 of this Schedule (1) This clause applies if— (a) an amount is being determined under section 37(3A), 46A(7), 46G(5A), 46IA(2A) or 46IE(7) in respect of land; and (b) all of the land (other than land in respect of which a nomination under section 46H is in force) is subject to land tax at the applicable rate under Part 3 or 5 of this Schedule. (2) The rate for determining the amount for each of the years from 2024 to 2033 is set out in Table 6.2. **Table 6.2** | *Item* | *Column 1 Taxable value not less than* | *Column 2 Taxable value less than* | *Column 3 Rate of land tax surcharge* | | 3 | 100 000 | 250 000 | $975 | | 4 | 250 000 | | $975 and 0⋅1% of the taxable value that exceeds $250 000 | Sch. 1A inserted by No. 67/2017 s. 21. Schedule 1A—Examples of absentee proportion **Example 1** ![C:\Users\penny\AppData\Local\Temp\notesEC8915\Schedule 1A Example 1.png]() 1. Alpha (as trustee of the Alpha Unit Trust) owns taxable land. 2. The sole unitholder of the Alpha Unit Trust is Bravo (as trustee of the Bravo Unit Trust). The unitholders of the Bravo Unit Trust are— • Absentee Beneficiary 1, who has a 40% unitholding; and • Non-absentee Beneficiary 1, who has a 40% unitholding; and • Absentee Beneficiary 2, who has a 20% unitholding. 3. The Bravo Unit Trust is an absentee trust because it has at least one absentee beneficiary—see paragraph (b) of the definition of ***absentee trust***. The Alpha Unit Trust is also an absentee trust because its unitholder, Bravo, is an absentee beneficiary holding an interest as trustee of an absentee trust—see paragraph (b) of the definition of ***absentee trust*** and paragraph (b)(ii) of the definition of ***absentee beneficiary***. 4. The Alpha Unit Trust and the Bravo Unit Trust are in a chain of trusts—see section 3D. 5. The absentee proportion of interests in land subject to the Alpha Unit Trust is calculated as follows— Multiply Absentee Beneficiary 1's interest in the Bravo Unit Trust (40%) by Bravo's interest (as trustee of the Bravo Unit Trust) in the Alpha Unit Trust (100%). 40% × 100% = 40%. Multiply Absentee Beneficiary 2's interest in the Bravo Unit Trust (20%) by Bravo's interest (as trustee of the Bravo Unit Trust) in the Alpha Unit Trust (100%). 20% × 100% = 20%. 40% + 20% = 60%. **Example 2** ![C:\Users\penny\AppData\Local\Temp\notesEC8915\Schedule 1A Example 2.png]() • Charlie (as trustee of the Charlie Fixed Trust), who has a 50% beneficial interest. • Absentee Beneficiary 2, who has a 30% beneficial interest; and • Non-absentee Beneficiary 1, who has a 20% beneficial interest. The sole beneficiary of the Charlie Fixed Trust is Non‑absentee Beneficiary 2. 3. The Bravo Fixed Trust is an absentee trust because it has at least one absentee beneficiary—see paragraph (a) of the definition of ***absentee trust***. The Charlie Fixed Trust is not an absentee trust because its sole beneficiary, Non-absentee Beneficiary 2, is not an absentee beneficiary. The Alpha Fixed Trust is an absentee trust because it has at least one absentee beneficiary, Bravo, holding an interest as trustee of an absentee trust—see paragraph (a) of the definition of ***absentee trust*** and paragraph (b)(i) of the definition of ***absentee beneficiary***. 4. The Alpha Fixed Trust, the Bravo Fixed Trust and the Charlie Fixed Trust are in a chain of trusts—see section 3D. Multiply Absentee Beneficiary 1's interest in the Bravo Fixed Trust (50%) by Bravo's interest (as trustee of the Bravo Fixed Trust) in the Alpha Fixed Trust (50%). Multiply Absentee Beneficiary 2's interest in the Bravo Fixed Trust (30%) by Bravo's interest (as trustee of the Bravo Fixed Trust) in the Alpha Fixed Trust (50%). 30% × 50% = 15%. 25% + 15% = 40%. **Example 3** ![C:\Users\penny\AppData\Local\Temp\notesEC8915\Schedule 1A Example 3.png]() • Charlie (as trustee of the Charlie Fixed Trust), who has a 50% beneficial interest. • Non-absentee Beneficiary 1, who has a 50% beneficial interest. The beneficiaries of the Charlie Fixed Trust are— • Non-absentee Beneficiary 2, who has 20% beneficial interest; and • Absentee Beneficiary 2, who has an 80% beneficial interest. 3. The Bravo Fixed Trust and the Charlie Fixed Trust are absentee trusts because each trust has at least one absentee beneficiary—see paragraph (a) of the definition of ***absentee trust***. The Alpha Fixed Trust is also an absentee trust because it has absentee beneficiaries, Bravo and Charlie, who hold interests as trustees of absentee trusts—see paragraph (a) of the definition of ***absentee trust*** and paragraph (b)(i) of the definition of ***absentee beneficiary***. 4. The Alpha Fixed Trust, the Bravo Fixed Trust and the Charlie Fixed Trust are in a chain of trusts—see section 3D. Multiply Absentee Beneficiary 1's interest in the Bravo Fixed Trust (50%) by Bravo's interest (as trustee of the Bravo Fixed Trust) in the Alpha Fixed Trust (50%). Multiply Absentee Beneficiary 2's interest in the Charlie Fixed Trust (80%) by Charlie's interest (as trustee of the Charlie Fixed Trust) in the Alpha Fixed Trust (50%). 80% × 50% = 40%. 25% + 40% = 65%. **Example 4** ![C:\Users\penny\AppData\Local\Temp\notesEC8915\Schedule 1A Example 4.png]() • Charlie (as trustee of the Charlie Discretionary Trust), who has a 50% beneficial interest. • Non-absentee Beneficiary 1, who has a 50% beneficial interest. The specified beneficiaries of the Charlie Discretionary Trust are— • Absentee Beneficiary 2; and • Non-absentee Beneficiary 2. 3. The Bravo Fixed Trust is an absentee trust because it has at least one absentee beneficiary—see paragraph (a) of the definition of ***absentee trust***. The Charlie Discretionary Trust is an absentee trust because it has at least one an absentee beneficiary—see paragraph (c) of the definition of ***absentee trust***. The Alpha Fixed Trust is also an absentee trust because it has absentee beneficiaries, Bravo and Charlie, who hold beneficial interests as trustees of absentee trusts—see paragraph (a) of the definition of ***absentee trust*** and paragraph (b)(i) of the definition of ***absentee beneficiary***. 4. The Alpha Fixed Trust, the Bravo Fixed Trust and the Charlie Discretionary Trust are in a chain of trusts—see section 3D. Multiply Absentee Beneficiary 1's interest in the Bravo Fixed Trust (50%) by Bravo's interest (as trustee of the Bravo Fixed Trust) in the Alpha Fixed Trust (50%). *Step 2—identify the interest held by Charlie (as trustee of the Charlie Discretionary Trust) in the Alpha Fixed Trust* 50%. *Step 3—add together the amounts calculated and identified under Step 1 and Step 2* 25% + 50% = 75%. **Example 5** ![C:\Users\penny\AppData\Local\Temp\notesEC8915\Schedule 1A Example 5.png]() 1. Alpha (as trustee of the Alpha Unit Trust) owns taxable land. 2. The sole unitholder of the Alpha Unit Trust is Bravo (as trustee of the Bravo Unit Trust). The unitholders of the Bravo Unit Trust are— • Charlie (as trustee of the Charlie Unit Trust), who has a 50% unitholding; and • Delta (as trustee of the Delta Unit Trust), who has a 50% unitholding. The unitholders of the Charlie Unit Trust are— • Absentee Beneficiary 1, who has a 50% unitholding; and • Non-absentee Beneficiary 1, who has a 50% unitholding. The sole unitholder of the Delta Unit Trust is Absentee Beneficiary 2. 3. The Charlie Unit Trust and the Delta Unit Trust are absentee trusts because each trust has at least one absentee beneficiary—see paragraph (b) of the definition of ***absentee trust***. The Bravo Unit Trust is also an absentee trust because it has absentee beneficiaries, Charlie and Delta, who hold unitholdings as trustees of absentee trusts—see paragraph (b) of the definition of ***absentee trust*** and paragraph (b)(ii) of the definition of ***absentee beneficiary***. The Alpha Unit Trust is also an absentee trust because its unitholder, Bravo, holds unitholdings as trustee of an absentee trust—see paragraph (b) of the definition of ***absentee trust*** and paragraph (b)(ii) of the definition of ***absentee beneficiary***. 4. The Alpha Unit Trust, the Bravo Unit Trust, the Charlie Unit Trust and the Delta Unit Trust are in a chain of trusts—see section 3D. 5. The absentee proportion of interests in land subject to the Alpha Unit Trust is calculated as follows— Multiply Absentee Beneficiary 1's interest in the Charlie Unit Trust (50%) by Charlie's interest (as trustee of the Charlie Unit Trust) in the Bravo Unit Trust (50%) by Bravo's interest (as trustee of the Bravo Unit Trust) in the Alpha Unit Trust (100%). 50% × 50% × 100% = 25%. Multiply Absentee Beneficiary 2's interest in the Delta Unit Trust (100%) by Delta's interest (as trustee of the Delta Unit Trust) in the Bravo Unit Trust (50%) by Bravo's interest (as trustee of the Bravo Unit Trust) in the Alpha Unit trust (100%). 100% × 50% × 100% = 50%. 25% + 50% = 75%. Sch. 2 repealed by No. 28/2007 s. 3(Sch. item 37), new Sch. 2 inserted by No. 40/2014 s. 25, amended by No. 18/2023 s. 55(3).