56HTax payable is charge on land

56H Tax payable is charge on land (1) Tax payable in relation to a parcel of land is a charge on the interest held by the owner of the parcel. (2) The charge takes priority over a sale, conveyance, transfer, mortgage, charge, lien or encumbrance in relation to the parcel. (3) The commissioner may give the registrar-general written notice of the charge. Note If the registrar-general is given notice that land is affected by a territory or Commonwealth law, or anything done under it, under the Land Titles Act 1925, s 14 (3), the registrar-general must record the effect of the law in the register kept under that Act, s 43. (4) The commissioner may notify a mortgagee of the parcel or credit provider of the owner of the parcel, about the tax payable (the tax debt) by the owner (the debtor), the charge and the effect of subsection (2). (5) However, the commissioner may notify a mortgagee or credit provider only if— (a) the charge has been recorded in the register under the Land Titles Act 1925; and (b) the tax debt is in arrears; and (c) the tax debt is more than— (i) $2 000; or (ii) another amount determined by the Minister; and (d) the commissioner has— (i) taken reasonable steps to make arrangements for the debtor to pay the tax debt; and (ii) notified the debtor, in writing, that the mortgagee or credit provider will be notified under subsection (4) not earlier than 28 days after the date of the notice to the debtor. (6) A determination under subsection (5) (c) is a disallowable instrument. (7) If the commissioner notifies the mortgagee or credit provider under subsection (4), the commissioner must give a copy of the notice to the debtor. (8) The charge does not have effect against an honest purchaser of the parcel of land for value if— (a) the purchaser had obtained a certificate under— (i) for tax payable under the Duties Act 1999—the Duties Act 1999, section 244 (Certificate of duty and other charges); or (ii) for tax payable under the Land Rent Act 2008—the Land Rent Act 2008, section 31 (Certificate of land rent and other (iii) for tax payable under the Land Tax Act 2004—the Land Tax Act 2004, section 41 (Certificate of land tax and other (iv) for tax payable under the Rates Act 2004—the Rates Act 2004, section 76 (Certificate of rates and other charges) in relation to the parcel before the purchase; or (v) for tax payable under the Planning Act 2023, division 10.7.3 (Variation of nominal rent leases)—the Planning Act 2023, section 346 (Certificate of lease variation charge and other amounts) in relation to the parcel before the purchase; and (b) at the time of purchase, the purchaser did not have notice of liability under the charge. register—see the Land Titles Act 1925, dictionary. 56HA Recovery of tax from mortgagee (a) a mortgagee of a parcel of land has been notified about a tax debt under section 56H (4); and (b) the tax debt has been in arrears for at least 1 year. (2) The commissioner must, in writing, notify the debtor that— (a) the tax debt is in arrears; and (b) if the tax debt is not paid within 90 days after the date of the notice, the tax debt will be recovered from the mortgagee of the parcel. (3) If the tax debt is not paid within the 90-day period, the commissioner may, by written notice, require the mortgagee of the parcel to pay the tax debt for the debtor. (4) However, before recovering the tax debt from the mortgagee, the commissioner must be satisfied that the recovery is reasonable in the circumstances including, from the information available, whether the recovery is likely to cause substantial hardship to the debtor or other people. (5) If the commissioner notifies the mortgagee of the parcel under subsection (3), the commissioner must give a copy of the notice to the debtor. (6) The tax debt must be paid to the commissioner on the later of the following: (a) receipt of the notice; (b) the date stated in the notice. (7) If the mortgagee pays the tax debt for the debtor— (a) the mortgagee may recover the tax debt from the debtor as a debt; and (b) the tax debt is taken to be secured by the mortgage in addition to any other amount secured by it. (8) To remove any doubt, a tax debt that a mortgagee of a parcel of land is required to pay for a debtor under this section is tax that is payable under section 48. Note Under s 48, tax that is payable is payable to the commissioner, who may recover any amount unpaid in a court of competent jurisdiction as a debt to the commissioner. debtor—see section 56H (4). tax debt—see section 56H (4).