Legislative Assembly for the ACT: 2011 Week 06 Hansard (Thursday, 23 June 2011) . . Page.. 2343 ..
contained in this bill will also reduce the duplication and time spent explaining cross-border differences, which will benefit both our regulator and companies that work on both sides of our border with New South Wales. The new regime will also reduce the need for ACT-specific guidance material and the time spent by our regulator on its production. I commend the bill to the Assembly.
Debate (on motion by Mrs Dunne) adjourned to the next sitting.
Land Tax Amendment Bill 2011
Ms Gallagher, pursuant to notice, presented the bill, its explanatory statement and a Human Rights Act compatibility statement.
Title read by Clerk.
MS GALLAGHER (Molonglo—Chief Minister, Minister for Health, Minister for Industrial Relations and Treasurer) (10.09): I move:
That this bill be agreed to in principle.
The Land Tax Amendment Bill 2011 amends the Land Tax Act 2004. The amendment to the Land Tax Act will require a trustee of the parcel of land to notify the Commissioner for ACT Revenue of a land tax liability where the owner is an individual. This is in line with current provisions that require an owner to notify the commissioner where a residential property is rented. Under the Land Tax Act, all commercial, rented residential and residential properties owned by a corporation or trustee are liable for land tax and are charged accordingly.
There is currently no requirement for a trustee to notify the commissioner that the property is held in trust and therefore liable for land tax. This has made it difficult for the commissioner to establish a land tax liability, particularly where the trustee is an individual. Under the proposed amendment, the trustee will be required to notify the commissioner that the property is held as a trustee. A typical example of where this would apply is where the property is held by an individual as trustee of a family trust.
The government recognises that there are circumstances when it would be inappropriate to apply land tax. Examples of such circumstances are in relation to a guardian of a person with a legal disability or when residential land is owned by a trustee under a will of a deceased person and is occupied by a life tenant. In these cases, the existing exemptions from land tax would continue to apply.
It should be noted that this bill does not impose any new taxation measures. Residential properties held by a trustee have always been liable for land tax. This amendment is a simple one that will improve the administration of the tax. I commend the Land Tax Amendment Bill 2011 to the Assembly.
Debate (on motion by Mr Smyth) adjourned to the next sitting.