2009

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

2009

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

An Act to amend legislation in relation to rates and land tax, and for other purposes

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Rates and Land Tax Legislation Amendment Act 2009.

This Act commences on 1 January 2010.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

This part amends the Land Tax Act 2004.

(1) This section applies in relation to a parcel of land that—

(a) is leased for residential purposes; and

(b) is rented by a tenant.

(2) A relevant person must tell the commissioner, in writing—

(a) that the parcel is rented; and

(b) when the rental began.

Note 1 If a form is approved under the Taxation Administration Act 1999, s 139C, the form must be used.

Note 2 It is an offence to fail to notify the commissioner under this section (see Taxation Administration Act 1999, s 67 (2)).

Note 3 It is also an offence to knowingly avoid paying, or disclosing a liability to pay, part or all of an amount of tax (see Taxation Administration Act 1999, s 65 (1)).

(3) The relevant person must tell the commissioner the information mentioned in subsection (2) not later than 30 days after—

(a) if there is a change of ownership of the parcel—the day the ownership changes; or

(b) in any other case—the day the rental begins.

(4) This section does not apply if the owner of the parcel of land is a corporation.

(5) In this section:

relevant person means—

(a) the owner of the parcel of land; or

(b) if the owner has authorised an agent to act on the owner’s behalf in relation to the rental of the parcel—the agent.

accountant, real estate agent, solicitor

Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

(aa) if the registered proprietor has sold the interest to another person (the new owner) and the new owner is in possession of the parcel but not yet registered as the proprietor—the new owner; or

unit owner means—

(a) the registered proprietor of the lease of a unit; or

(b) if the registered proprietor has sold the interest to another person (the new owner) and the new owner is in possession of the unit but not yet registered as the proprietor—the new owner.

This part amends the Land Titles (Unit Titles) Act 1970.

(e) a certificate issued by the commissioner for revenue certifying that—

(i) no rates or other amounts assessed as payable under the Rates Act 2004 are outstanding for the financial year in which the units plan is to be registered; and

(ii) no land tax or other amounts assessed as payable under the Land Tax Act 2004 are outstanding for the quarter in which the units plan is to be registered.

Note A person may apply for a certificate of land tax and other charges under the Land Tax Act 2004, s 41 and a certificate of rates and other charges under the Rates Act 2004, s 76.

This part amends the Rates Act 2004.

For example, the signpost definition ‘unit owner—see Unit Titles Act, dictionary’ means that the term ‘unit owner’ is defined in that dictionary and the definition applies to this Act.

For example, the signpost definition ‘land tax—see the Land Tax Act 2004, dictionary.’ means that the term ‘land tax’ is defined in that dictionary and the definition applies to this Act.

(c) for a redetermination of the unimproved value of the parcel under section 11 (Redetermination—error) or section 11A (Redetermination—change of circumstances)—the date the redetermination begins to apply to the parcel.

rates

a parcel of land

rates

the parcel

rates

the parcel

(1) This section applies if an error was made in relation to a determination of the unimproved value of a parcel of land as at a particular date.

(2) The commissioner may redetermine the unimproved value of the parcel as at that date.

(3) The redetermination applies to the parcel for the period—

(a) beginning on 1 July in the calendar year in which the relevant date when the redetermination is made falls; and

(b) ending on 30 June in the next calendar year.

A clerical error was made in relation to the determination of Branko’s parcel of land as at 1 January 2009, resulting in the unimproved value of the land being incorrectly determined as $220 000. The unimproved value of parcel was correctly determined as at 1 January 2007 as $230 000 and 1 January 2008 as $240 000.

The average unimproved value of the land for the year beginning 1 July 2009 was calculated as—

($230 000 + $240 000 + $220 000)/3=$230 000

After the clerical error was corrected, the unimproved value of the parcel was correctly redetermined as at 1 January 2009 as $250 000.

The average unimproved value of the land was recalculated as (the recalculated AUV)—

($230 000 + $240 000 + $250 000)/3=$240 000

The recalculated AUV applies for the period starting on 1 July 2009 and ending on 30 June 2010.

Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

(4) In this section:

error, in relation to a determination, includes—

(a) an error in making a valuation on which the determination is based; and

(b) the duplication of an error in relation to an earlier determination.

(1) This section applies if a change of circumstances happens in relation to a parcel of land that affects the unimproved value of the land.

(2) The commissioner may redetermine the unimproved value of the parcel as at a date if the unimproved value as at that date is used in calculating the average unimproved value of the land for the year in which the change of circumstances happens.

(3) The commissioner may also redetermine the unimproved value of the parcel as at a later date if a determination of the unimproved value as at that date did not take the change of circumstances into account.

(4) A redetermination under subsection (2) applies to the parcel for the period—

(a) beginning on the day the change of circumstances happened; and

(b) ending on 30 June in the next calendar year.

(5) A redetermination under subsection (3) applies to the parcel for the period—

(a) beginning on 1 July in the calendar year in which the relevant date when the redetermination is made falls; and

(b) ending on 30 June in the next calendar year.

On 1 September 2009, Mungo obtained development approval for an authorised use of Mungo’s parcel of land (the change of circumstances) that increases the unimproved value of the parcel. Before the change of circumstances, the commissioner determined the unimproved value of the land as at 1 January 2007 as $260 000, 1 January 2008 as $280 000 and 1 January 2009 as $300 000.

The average unimproved value (the original AUV) of the land for the year beginning 1 July 2009 was calculated as—

($260 000 + $280 000 + $300 000)/3=$280 000

After the change of circumstances, the commissioner redetermined the unimproved value of the land as at 1 January 2007 as $320 000, 1 January 2008 as $340 000 and 1 January 2009 as $360 000.

The average unimproved value (the recalculated AUV) of the land was recalculated as:

($320 000 + $340 000 + $360 000)/3=$340 000

The original AUV applies for the period starting on 1 July 2009 and ending on 31 August 2009, and the recalculated AUV applies for the period starting on 1 September 2009 and ending on 30 June 2010.

Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

(ia) if the registered proprietor has sold the interest to another person (the new owner) and the new owner is in possession of the parcel but not yet registered as the proprietor—the new owner; or

unit owner means—

(a) the registered proprietor of the lease of a unit; or

(b) if the registered proprietor has sold the interest to another person (the new owner) and the new owner is in possession of the unit but not yet registered as the proprietor—the new owner.

Presentation speech made in the Legislative Assembly on 2009.

Notified under the Legislation Act on 2009.

For the latest republication of amended laws, see www.legislation.act.gov.au.