Sch 1Asets out examples of how the absentee proportion of interests in land subject to a trust that is in a chain of trusts is calculated.

Schedule 1A sets out examples of how the absentee proportion of interests in land subject to a trust that is in a chain of trusts is calculated. S. 46IA inserted by No. 26/2015 s. 32. 46IA Land tax surcharge for absentee trusts S. 46IA(1) amended by No. 40/2016 s. 21, substituted by No. 67/2017 s. 16(1), amended by Nos 17/2019 s. 37(1), 18/2023 s. 27(1). (1) A person who is the owner of land as a trustee of an absentee trust that is a fixed trust is liable for land tax determined using the formula— B is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1; (a) if the absentee trust is not in a chain of trusts or is an ultimate trust, the value of all land subject to the trust that would be taken under section 46IB to be owned by an absentee beneficiary if a notice were in force under section 46B in respect of the beneficial interests of that absentee beneficiary in that land; or (b) if the absentee trust is in a chain of trusts and is not an ultimate trust, an amount determined by the formula— D is the absentee proportion of interests in all land subject to the trust; E is the taxable value of all land subject to the trust. S. 46IA(1A) amended by Nos 17/2019 s. 37(2), 18/2023 s. 27(2). (1A) A person who is the owner of land as a trustee of an absentee trust that is a unit trust scheme is liable for land tax determined using the formula— B is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1; (a) if the unit trust scheme is not in a chain of trusts or is an ultimate trust, the value of all land subject to the scheme that would be taken under section 46IC to be owned by an absentee beneficiary if a notice were in force under section 46C in respect of the unitholdings in the scheme held by that absentee beneficiary; or (b) if the unit trust scheme is in a chain of trusts and is not an ultimate trust, an amount determined by the formula— D is the absentee proportion of interests in all land subject to the scheme; E is the taxable value of all land subject to the scheme. S. 46IA(1B) inserted by No. 67/2017 s. 16(1). (1B) A person who is the owner of land as trustee of an absentee trust that is a discretionary trust is liable for land tax determined at the applicable rate set out in Part 5 of Schedule 1. (2) The trustee is to be assessed for land tax on the whole of the land subject to the absentee trust as if the land were the only land owned by the trustee for the purposes of— S. 46IA(2)(a) amended by No. 67/2017 s. 16(2)(a). (a) the variable "B" in the formula in subsections (1) and (1A); and S. 46IA(2)(b) substituted by No. 67/2017 s. 16(2)(b). (b) subsection (1B). S. 46IA(2A) inserted by No. 38/2023 s. 40. (2A) There is to be added to the land tax payable by the trustee under subsection (1A) or (1B) on the whole of the land subject to the absentee trust the amount (if any) determined by applying the applicable rate in Part 6 of Schedule 1 to the total taxable value of the land if— (a) in the case of an absentee trust that is a unit trust scheme, the scheme has a nomination in force under section 46H; or (b) in the case of an absentee trust that is a discretionary trust, the trust— (i) has a nomination in force under section 46H; and (ii) does not have a nomination in force under section 46F. (3) This section does not apply to— (a) land subject to an excluded trust; or (b) land subject to an administration trust; or (c) child maintenance land. (4) This section is subject to sections 46IB, 46IC and 46IE. S. 46IB inserted by No. 26/2015 s. 32. 46IB Land tax for absentee fixed trust if beneficial interests notified to Commissioner (1) If a notice is in force under section 46B for a fixed trust (that is an absentee trust) and all of the beneficial interests in the land are beneficial interests of absentee beneficiaries— S. 46IB(1)(a) amended by No. 40/2016 s. 22(1). (a) an absentee beneficiary of the trust is taken, for the purposes of this Act other than Division 1 of Part 4, 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 absentee beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the absentee beneficiary, at the applicable rate set out in Part 4 of Schedule 1; and S. 46IB(1)(b) substituted by No. 67/2017 s. 17(1). (b) the trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust— (i) if the trust is not in a chain of trusts or is an ultimate trust, at the applicable rate set out in Part 4 of Schedule 1, as if the land were the only land owned by the trustee; or S. 46IB(1)(b)(ii) amended by Nos 17/2019 s. 38(1), 18/2023 s. 28(1). (ii) if the trust is in a chain of trusts and is not an ultimate trust, using the formula— B is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the trust (as if that land were the only land owned by the trustee); C is the absentee proportion of interests in all land subject to the trust; D is the taxable value of all land subject to the trust. (2) There is to be deducted from the land tax payable under subsection (1)(a) by an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— A is the proportion of the absentee beneficiary's beneficial interest in land subject to the trust to the total beneficial interests in land subject to the trust; B is the total amount of tax assessed on the trustee under subsection (1)(b); and C is the taxable value of the land of which the absentee beneficiary is taken by subsection (1)(a) to be the owner; D is the total taxable value of all taxable land owned by the absentee beneficiary; E is the amount of tax assessed on the absentee beneficiary under subsection (1)(a). (3) If a notice is in force under section 46B for a fixed trust (that is an absentee trust) for all of the beneficial interests in the land and at least one, but not all, of those interests is a beneficial interest of a beneficiary who is not an absentee beneficiary— S. 46IB(3)(a) amended by No. 40/2016 s. 22(2)(a). (a) a beneficiary of the trust is taken, for the purposes of this Act other than Division 1 of Part 4, 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 to be assessed for land tax on that land accordingly, together with any other taxable land owned by the beneficiary— (i) in the case of an absentee beneficiary, at the applicable rate set out in Part 4 of Schedule 1; and (ii) in the case of any other beneficiary, at the applicable rate set out in Part 1 of Schedule 1; and S. 46IB(3)(b) amended by Nos 40/2016 s. 22(2)(b), 67/2017 s. 17(2), 17/2019 s. 38(2), 18/2023 s. 28(2). (b) the trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust using the formula— B is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the trust (as if that land were the only land owned by the trustee); (a) if the trust is not in a chain of trusts or is an ultimate trust, the taxable value of all land owned by an absentee beneficiary; or (b) if the trust is in a chain of trusts and is not an ultimate trust, an amount determined by the formula— D is the absentee proportion of interests in all land subject to the trust; E is the taxable value of all land subject to the trust. (4) There is to be deducted from the land tax payable under subsection (3)(a) by an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— S. 46IB(4)(a) amended by Nos 40/2016 s. 22(3), 17/2019 s. 38(3), 18/2023 s. 28(3). A is the proportion of the absentee beneficiary's beneficial interest in land subject to the trust to the total beneficial interests in land subject to the trust; B is that part of the total amount of tax assessed on the trustee under subsection (3)(b) determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the trust (as if that land were the only land owned by the trustee); C is the taxable value of the land of which the absentee beneficiary is taken by subsection (3)(a) to be the owner; and C is the taxable value of the land of which the absentee beneficiary is taken by subsection (3)(a) to be the owner; D is the total taxable value of all taxable land owned by the absentee beneficiary; E is the amount of tax assessed on the absentee beneficiary under subsection (3)(a)(i). (5) There is to be deducted from the land tax payable under subsection (3)(a) by a beneficiary who is not an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— A is the proportion of the beneficiary's beneficial interest in land subject to the trust to the total beneficial interests in land subject to the trust; B is that part of the total amount of tax assessed on the trustee under subsection (3)(b) determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the trust (as if that land were the only land owned by the trustee); and C is the taxable value of the land of which the beneficiary is taken by subsection (3)(a) to be the owner; D is the total taxable value of all taxable land owned by the beneficiary; E is the amount of tax assessed on the beneficiary under subsection (3)(a)(ii). (6) Subsection (1)(a) or (3)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust. Under section 46ID(1)(a) such a person is taken to be the owner of land. S. 46IB(7) inserted by No. 22/2024 s. 9. (7) Subsection (3)(a) does not apply to a beneficiary of the trust if the beneficiary— (a) is not an absentee beneficiary; and (b) is not deemed to be the owner of any other taxable land; and (c) does not own any other taxable land in any capacity. S. 46IC inserted by No. 26/2015 s. 32. 46IC Land tax for absentee unit trust scheme if unitholdings notified to Commissioner (1) If a notice is in force under section 46C for all of the unitholdings in a unit trust scheme (that is an absentee trust) and all of those unitholdings are held by unitholders who are absentee beneficiaries— (a) a unitholder in the scheme is taken, for the purposes of this Act other than Division 1 of Part 4, 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 to be assessed for land tax on that land accordingly, together with any other taxable land owned by the unitholder, at the applicable rate set out in Part 4 of Schedule 1; and S. 46IC(1)(b) substituted by No. 67/2017 s. 18(1). (b) the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme— (i) if the scheme is not in a chain of trusts or is an ultimate trust, at the applicable rate set out in Part 4 of Schedule 1, as if the land were the only land owned by the trustee; or S. 46IC(1)(b)(ii) amended by Nos 17/2019 s. 39(1), 18/2023 s. 29(1). (ii) if the scheme is in a chain of trusts and is not an ultimate trust, an amount determined using the formula— B is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); C is the absentee proportion of interests in all land subject to the scheme; D is the taxable value of all land subject to the scheme. (2) There is to be deducted from the land tax payable under subsection (1)(a) by an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— B is the total amount of tax assessed on the trustee under subsection (1)(b); and C is the taxable value of the land of which the unitholder is taken by subsection (1)(a) to be the owner; E is the amount of tax assessed on the unitholder under subsection (1)(a). (3) If a notice is in force under section 46C for all of the unitholdings in a unit trust scheme (that is an absentee trust) and at least one, but not all, of those unitholdings is held by a unitholder who is not an absentee beneficiary— (a) a unitholder in the scheme is taken, for the purposes of this Act other than Division 1 of Part 4, 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 to be assessed for land tax on that land accordingly, together with any other taxable land owned by the unitholder— (i) in the case of a unitholder who is an absentee beneficiary, at the applicable rate set out in Part 4 of Schedule 1; and (ii) in the case of any other unitholder, at the applicable rate set out in Part 1 of Schedule 1; and S. 46IC(3)(b) amended by Nos 40/2016 s. 23, 67/2017 s. 18(2), 17/2019 s. 39(2), 18/2023 s. 29(2). (b) the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme using the formula— B is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); (a) if the unit trust scheme is not in a chain of trusts or is an ultimate trust, the taxable value of all land subject to the scheme owned by a unitholder who is an absentee beneficiary; or (b) if the unit trust scheme is in a chain of trusts and is not an ultimate trust, an amount determined by the formula— D is the absentee proportion of interests in all land subject to the scheme; E is the taxable value of all land subject to the scheme. (4) There is to be deducted from the land tax payable under subsection (3)(a) by a unitholder who is an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— S. 46IC(4)(a) amended by Nos 40/2016 s. 23, 17/2019 s. 39(3), 18/2023 s. 29(3). B is that part of the total amount of tax assessed on the trustee under subsection (3)(b) determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); C is the taxable value of the land of which the unitholder is taken by subsection (3)(a) to be the owner; and C is the taxable value of the land of which the unitholder is taken by subsection (3)(a) to be the owner; E is the amount of tax assessed on the unitholder under subsection (3)(a)(i). (5) There is to be deducted from the land tax payable under subsection (3)(a) by a unitholder who is not an absentee beneficiary an amount (if any) necessary to avoid double taxation, being the lesser of— B is that part of the total amount of tax assessed on the trustee under subsection (3)(b) determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); and C is the taxable value of the land of which the unitholder is taken by subsection (3)(a) to be the owner; E is the amount of tax assessed on the unitholder under subsection (3)(a)(ii). (6) Subsection (1)(a) or (3)(a) does not apply to a unitholder who holds units as trustee of another trust. Under section 46ID(1)(b) such a person is taken to be the owner of land. S. 46IC(7) inserted by No. 22/2024 s. 10. (7) Subsection (3)(a) does not apply to a unitholder in the scheme if the unitholder— (a) is not an absentee beneficiary; and (b) is not deemed to be the owner of any other taxable land; and (c) does not own any other taxable land in any capacity. S. 46ID inserted by No. 26/2015 s. 32. 46ID Land tax for beneficiary/trustees (1) For the purposes of this Act— (a) a person who holds a beneficial interest in land subject to a fixed trust (that is an absentee trust) in respect of which a notice is in force under section 46B (***the first trust***) as trustee of another trust (***the second trust***) is taken, for the purposes of this Act, 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) a person who holds units in a unit trust scheme (that is an absentee trust) in respect of which a notice is in force under section 46C (***the first scheme***) as trustee of another trust (***the second trust***) is taken, for the purposes of this Act other than Division 1 of Part 4, 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***. S. 46ID(2A) inserted by No. 40/2016 s. 24(1). (2A) Subsection (3) applies to— (a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and all of the beneficial interests in the land subject to the first trust are beneficial interests of absentee beneficiaries; or (b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and all of the unitholdings in the first scheme are held by unitholders who are absentee beneficiaries. (3) 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 lesser of— S. 46ID(3)(a) substituted by Nos 40/2016 s. 24(2), 67/2017 s. 19(1), amended by Nos 17/2019 s. 40(1), 18/2023 s. 30(1). (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 that part of the total amount of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme; (a) if the second trust is an absentee trust that is a discretionary trust, 100% of interests in all land subject to the discretionary trust; or (b) in all other cases, the absentee proportion of interests in all land subject to the second trust; D is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner; and E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust. S. 46ID(4) inserted by No. 40/2016 s. 24(3). (4) Subsection (5) applies to— (a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is not an absentee beneficiary; or (b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is not an absentee beneficiary. S. 46ID(5) inserted by No. 40/2016 s. 24(3). (5) 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 lesser of— S. 46ID(5)(a) substituted by No. 67/2017 s. 19(2), amended by Nos 22/2018 s. 25, 17/2019 s. 40(2), 18/2023 s. 30(2). (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 that part of the total amount of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme; (a) if the second trust is an absentee trust that is a discretionary trust, 100% of interests in all land subject to the discretionary trust; or (b) in all other cases, the absentee proportion of interests in all land subject to the second trust; D is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner; and E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust. S. 46ID(6) inserted by No. 40/2016 s. 24(3). (6) Subsection (7) applies to— (a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust not as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is an absentee beneficiary; or (b) a beneficiary/trustee who holds a unitholding in the first scheme not as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is an absentee beneficiary. S. 46ID(7) inserted by No. 40/2016 s. 24(3). (7) 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 lesser of— (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 that part of the total amount of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme; and E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust. S. 46IE inserted by No. 26/2015 s. 32. 46IE Land tax for absentee discretionary trust with nominated beneficiary (1) This section applies if the nomination of a nominated beneficiary for a discretionary trust that is an absentee trust is in force under section 46F. (2) The nominated beneficiary is taken, for the purposes of this Act (other than Division 1 of Part 4) but for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the nominated beneficiary— (a) if the nominated beneficiary is an absentee beneficiary, at the applicable rate set out in Part 4 of Schedule 1; and (b) if the nominated beneficiary is not an absentee beneficiary, at the applicable rate set out in Part 1 of Schedule 1. (3) The trustee of 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— (a) in respect of any pre-2006 land—at the applicable rate set out in Part 4 of Schedule 1; and (b) in respect of any post-2006 land—at the applicable rate set out in Part 5 of Schedule 1. (4) For the purposes of subsection (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed 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 Part 4 of Schedule 1; R2 is the applicable rate of land tax set out in Part 5 of Schedule 1; T is the total taxable value of all taxable land subject to the trust; A is the total taxable value of the pre‑2006 land subject to the trust; B is the total taxable value of the post‑2006 land subject to the trust. (5) There is to be deducted from any land tax payable by the nominated beneficiary under subsection (2) any land tax payable by the trustee under subsection (3) in respect of pre‑2006 land. (6) Subsection (2) does not apply if the nominated beneficiary is the trustee. S. 46IE(7) inserted by No. 38/2023 s. 41. (7) If the trust also has a nomination in force under section 46H, there is to be added to the land tax payable by the trustee under subsection (3) on the whole of the land subject to the trust the amount (if any) determined by applying the applicable rate in Part 6 of Schedule 1 to the total taxable value of the land. S. 46IF inserted by No. 26/2015 s. 32. 46IF Land tax for PPR land if nominated PPR beneficiary (1) This section applies if a nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary trust that is an absentee trust is in force under section 46H. S. 46IF(2) amended by No. 67/2017 s. 20(1). (2) The trustee of a unit trust scheme (other than a scheme that is in a chain of trusts) or discretionary trust is to be assessed for land tax on land subject to the scheme or trust— (a) if that land that is used and occupied as the principal place of residence of the nominated PPR beneficiary— (i) as if the land were the only land owned by the trustee; and (ii) at the applicable rate set out in Part 4 of Schedule 1; or (b) if that land that is not used and occupied as the principal place of residence of the nominated PPR beneficiary, at the applicable rate set out in Part 5 of Schedule 1. S. 46IF(2A) inserted by No. 67/2017 s. 20(2). (2A) The trustee of a unit trust scheme that is in a chain of trusts is to be assessed for land tax on land subject to the scheme— (a) if that land is used and occupied as the principal place of residence of the nominated PPR beneficiary— (i) as if the land were the only land owned by the trustee; and S. 46IF(2A) (a)(ii) amended by Nos 17/2019 s. 41, 18/2023 s. 31. (ii) using the formula— B is the amount determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); C is the absentee proportion of interests in all the land subject to the scheme; D is the taxable value of all land subject to the scheme; or S. 46IF(2A)(b) amended by Nos 17/2019 s. 41, 18/2023 s. 31. (b) if that land is not used and occupied as the principal place of residence of the nominated PPR beneficiary, using the formula— B is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee); C is the absentee proportion of interests in all the land subject to the scheme; D is the taxable value of all land subject to the scheme. S. 46IF(2B) inserted by No. 47/2020 s. 46(1). (2B) For the purposes of subsections (2) and (2A), land is not taken to be occupied as a place of residence unless there is a building affixed to the land (including a home unit) that, in the Commissioner's opinion— S. 46IF(3) amended by No. 67/2017 s. 20(3). (3) Subsection (2)(a) or (2A)(a) applies only if the land has been used and occupied as the principal place of residence of the nominated PPR beneficiary— (a) since 1 July in the year preceding the tax year in which the nomination for that PPR beneficiary is lodged under section 46H; or (b) if the trustee became owner of the land on or after 1 July in the year preceding the tax year in which the nomination for that PPR beneficiary is lodged under section 46H, since a later date during that year. S. 46IF(4) amended by No. 67/2017 s. 20(4), substituted by No. 47/2020 s. 46(2). (4) Subsection (2)(a) or (2A)(a) does not apply if— (a) rent is paid by or on behalf of the nominated PPR beneficiary for use and occupation of the land in the year preceding the tax year; or (b) the land contains a separate residence used to derive income from the land in the year preceding the tax year; or (c) the land is used to carry on a substantial business activity in the year preceding the tax year. (5) In determining whether land is used by a person to carry on a substantial business activity, account must be taken of the factors referred to in section 62(2). Pt 3 Div. 2AC (Heading) inserted by No. 26/2015 s. 33. Division 2AC—Miscellaneous trust land provisions S. 46J inserted by No. 85/2005 s. 27, amended by No. 26/2015 s. 34.