Page 5425 - Week 15 - Tuesday, 8 December 2009
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The second amendment addresses any doubt that may have surrounded whether or not current provisions allow for a redetermination of an unimproved value of land to be applied across all affected unimproved values used to determine rates and land tax. This will allow the Commissioner for ACT Revenue to rectify areas in unimproved valuations so as to ensure that accurate valuations are used in determining a rates and land tax liability.
The third and fifth amendments will clarify that a person who has obtained effective ownership of a parcel of land but who may not yet have become the registered owner is the owner of that parcel of land for the purpose of the Rates Act and the Land Tax Act.
The sixth amendment provides an improved mechanism to support the existing requirement for owners to notify the Commissioner for ACT Revenue when a property is rented. The amendments achieve this by extending the requirement to notify the commissioner, through real estate agents, accountants and solicitors, who are entrusted by the owner with the management of the land. The amendment also clearly outlines what is a criminal offence with regard to notification of the rental status of a property. Again, the Greens will support these amendments so that ratepayers can be assured of greater efficiency and equity.
MS GALLAGHER (Molonglo—Deputy Chief Minister, Treasurer, Minister for Health and Minister for Industrial Relations) (11.14), in reply: The Rates and Land Tax Legislation Amendment Bill makes technical amendments to the Rates Act 2004, the Land Tax Act 2004 and the Land Titles (Unit Titles) Act 1970. The first of the amendments made by the bill addresses the issue of outstanding rates and land taxes that need to be paid by owners of a property before the property is unit titled. This amendment is necessary because in some instances where subdivision of a parcel of land occurs, rates and land taxes are not fully paid during the financial year or quarter when the units plan is registered.
At present, future owners of a subdivided property are not liable for the taxes until the next financial year or quarter, but there is currently no formal mechanism to ensure that the previous owner has paid the applicable rates and land taxes on a parcel of land. This is different to ordinary conveyances of land where the liability for rates and land tax transfers with the land to the new owner. Accordingly, this amendment will require the ACT Revenue Office to produce a certificate that verifies that any rates or land tax payable on the land that is to be subdivided have been paid in full before the subdivision can be registered. The bill also makes consequential amendments to this effect to the Land Titles Act.
In relation to the second amendment, the Rates Act uses a three-year rolling average of unimproved value of property in order to calculate the amount of rates or land tax payable. The unimproved value of all parcels of land in the ACT is determined as of 1 January each year. In the case where a clerical error has occurred in determining a value or where a change in circumstances causes the value of the land to change, the Rates Act allows the redeterminations of those values. However, it has been determined that it is necessary to clarify whether or not the current provisions allow redetermination of an unimproved value to be applied across all affected unimproved
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