An Act to provide for the imposition of land tax on certain principal places of residence that have land values of not less than $1 million; and for other purposes.
Part 1 Preliminary
1 Name of Act
This Act is the Premium Property Tax Act 1998.
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Relationship with Land Tax Management Act 1956
(1) This Act is to be construed with, and as if it formed part of, the Land Tax Management Act 1956.(2) In the event of an inconsistency between this Act and the Land Tax Management Act 1956, this Act prevails to the extent of the inconsistency.
4 Relationship with Taxation Administration Act 1996
This Act is to be read together with the Taxation Administration Act 1996 which makes provision for the administration and enforcement of this Act and other taxation laws.
5 Definitions
In this Act:Australian Bureau of Statistics includes the Australian Statistician and a person or body prescribed for the purposes of this definition.land value means:(a) in the case of land other than a stratum, the land value of the land as determined in accordance with the Part 7 of the Land Tax Management Act 1956, and(b) in the case of a stratum, the land value of the stratum as determined in accordance with the Part 7 of the Land Tax Management Act 1956.for a land tax year means the premium tax threshold for that year determined under section 12.Sydney statistical division means the local government areas specified in Schedule 1.s 5: Am 2000 No 51, Sch 5.
Part 2 Land tax on certain principal places of residence
6 Levy of land tax on land other than flats
(1) In the case of land that is a principal place of residence and would be exempt from taxation under the Land Tax Management Act 1956 by section 10 (1) (r) of that Act but for the fact that the land has a land value of not less than the premium tax threshold for that land tax year, land tax is payable by the owner of the land on the land value of the land as if it were the only land owned by the owner.(2) Section 9 (1) of the Land Tax Management Act 1956 does not apply to land to which this section applies.
7 Levy of land tax on flats
(1) If the value of the allowable proportion determined in accordance with section 9C (2) of the Land Tax Management Act 1956 is not less than the premium tax threshold for a land tax year, the flat is taken, for the purposes of this Act and the Land Tax Management Act 1956, to be land having a land value equal to the value of the allowable proportion.(2) Land tax is payable by the owner of the flat on the land value attributed under subsection (1) as if the flat were the only land owned by the owner.
8 Rate of land tax
Land tax payable as referred to in section 6 or 7 is to be charged, levied, collected and paid under the provisions of the Land Tax Management Act 1956 and in the manner prescribed under that Act for the period of 12 months commencing on 1 January in the year that next succeeds the year in which the ownership of the land is determined at the rate of:(a) for the period of 12 months commencing on 1 January 1999—$100 plus 1.85c for each $1 in excess of the premium tax threshold for the 1999 land tax year, and(b) for the period of 12 months commencing on 1 January in any subsequent year—$100 plus 1.7c for each $1 in excess of the premium tax threshold for the land tax year.
9 (Repealed)
s 9: Rep 1999 No 10, Sch 5.
Part 3 Identification of premium properties and determination of premium tax threshold
10 Determination of number of occupied private dwellings
(1) During the month of September in each year, the Valuer-General is to obtain from the Australian Bureau of Statistics:(a) the figure published by the Australian Bureau of Statistics from its most recent census of the total number of occupied private dwellings owned or being purchased in New South Wales, and(b) an estimate of the cumulative percentage change in the population of New South Wales for the period since the most recent census to 31 December of the year before the year in which the information is obtained.(2) During the month of September in each year, the Valuer-General is to make a determination, for the purposes of the following land tax year, of the number of occupied private dwellings owned or being purchased in New South Wales by increasing the number obtained under subsection (1) (a) by the percentage obtained under subsection (1) (b).(3) On or before 15 October in each year, the Valuer-General is to publish the determination made under subsection (2) in the Gazette.(4) If the Australian Bureau of Statistics ceases to publish the total number of occupied private dwellings owned or being purchased in New South Wales, the regulations may prescribe the criteria or basis of calculation that is to be used in place of that number and a reference in this Act to that number is to be construed as a reference to the criteria or basis of calculation so prescribed.
11 Determination of change in residential property values
(1) During the month of September in each year, the Valuer-General is to determine the percentage by which average land values of land within residential zones in the Sydney statistical division have changed between 1 July 1997 and 1 July last preceding the making of the determination.(2) For the purposes of this section, land is within a residential zone if it is zoned or otherwise designated for use under an environmental planning instrument (within the meaning of the Environmental Planning and Assessment Act 1979) for residential, or principally for residential, purposes.(3) On or before 15 October in each year, the Valuer-General is to publish the determination made under subsection (1) in the Gazette.
12 Premium tax threshold
(1) The premium tax threshold for the 1998 land tax year is $1 million.(2) The premium tax threshold for a land tax year subsequent to the 1998 land tax year is to be determined in accordance with the following formula, subject to subsections (3) and (4):%20AND%20(No%3D079)%20AND%20(Year%3D1998)%20AND%20(%22Historical%20Document%22%3D%222002-11-29%22))/g1.gif)
(3) If the Valuer-General is of the opinion that the number of occupied private dwellings owned or being purchased in New South Wales that would be liable to land tax payable as referred to in section 6 or 7 for a land tax year is greater than 0.2% of the number of occupied private dwellings owned or being purchased in New South Wales as determined under section 10 (2) for the purposes of that land tax year, the premium tax threshold for that land tax year is to be increased (or further increased) by an amount determined by the Valuer-General so that, as far as the Valuer-General is able to estimate, the land tax payable as referred to in section 6 or 7 for the land tax year is not payable in respect of more than 0.2% of that number.(4) The premium tax threshold for a succeeding land tax year is to remain the same as for the previous land tax year if the premium tax threshold determined in accordance with the formula in subsection (2) for the succeeding land tax year, or the premium tax threshold so determined as increased (or further increased) under subsection (3) is equal to or less than the premium tax threshold for the previous year.(5) A premium tax threshold determined in accordance with this section is to be rounded off to the nearest $1,000.(6) On or before 15 October in each year, the Valuer-General is to publish the premium tax threshold applicable to the following land tax year in the Gazette.
Part 4 Miscellaneous
13 Amendment of Acts
Each Act specified in Schedule 2 is amended as set out in that Schedule.
14 Regulations
(1) The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.(2) The regulations may provide for:(a) the granting of concessions under this Act, andto such persons (if any), or in relation to such land (if any), and in such circumstances (if any), as the regulations may prescribe.(b) the granting of exemptions from this Act, or from a specified provision of this Act,(3) A regulation made as referred to in subsection (2) has effect despite any of the provisions of the Taxation Administration Act 1996.(4) The regulations may amend Schedule 1:(a) by omitting a local government area, or(b) by inserting a local government area, or(c) to give effect to the change of the name of a local government area or change resulting from a reconstitution of local government areas, or(d) by omitting the Schedule and by inserting instead a Schedule that contains the names of local government areas.
15 Review of Act
(1) The Minister is to review this Act to determine whether the policy objectives of the Act remain valid and whether the terms of the Act remain appropriate for securing those objectives.(2) The review is to be undertaken as soon as possible after the period of 5 years from the date of assent to this Act.(3) A report on the outcome of the review is to be tabled in each House of Parliament within 12 months after the end of the period of 5 years.
Schedule 1 Sydney statistical division
(Sections 5, 14)
Ashfield Auburn Bankstown Baulkham Hills Blacktown Blue Mountains Botany Burwood Camden Campbelltown Canada Bay Canterbury Fairfield Gosford | Hawkesbury Holroyd Hornsby Hunters Hill Hurstville Kogarah Ku-ring-gai Lane Cove Leichhardt Liverpool Manly Marrickville Mosman North Sydney Parramatta | Penrith Pittwater Randwick Rockdale Ryde South Sydney Strathfield Sutherland Sydney Warringah Waverley Willoughby Wollondilly Woollahra Wyong |
sch 1: Am 2002 No 108, Sch 5.
Schedule 2 Amendment of Acts
(Section 13)
[1] Section 96 Transfer by corporation of principal place of residence to principal shareholder or spouse
Omit “the land value of the land” from section 96 (1) (c).Insert instead “the operation of the Premium Property Tax Act 1998”.
[2] Section 97 Transfer of principal place of residence by special trust to beneficiary etc
Omit “the land value of the land” from section 97 (d).Insert instead “the operation of the Premium Property Tax Act 1998”.
[3] Section 98 Transfer of principal place of residence by corporation to beneficiary of special trust
Omit “the land value of the land” from section 98 (d).Insert instead “the operation of the Premium Property Tax Act 1998”.
Schedules 8 and 9
Omit the Schedules. Insert instead:Schedule 8(Section 3AG)
[1] Section 3 Definitions
Insert in section 3 (1) in alphabetical order:for a land tax year means the premium tax threshold for that year determined under section 12 of the Premium Property Tax Act 1998.
[2] Section 9 Taxable value
Omit section 9 (3) and (4).
[3] Section 9C Reduction in land value for flats
Omit section 9C (4).
[4] Section 10 Land exempted from tax
Omit “$1 million” from section 10 (1) (r).Insert instead “the premium tax threshold”.
Section 4 Meaning of “taxation laws”
Insert in alphabetical order: