Australian Capital Territory
Rates and Land Tax Legislation Amendment Act 2009
A2009-52
    
Contents
	Page

Part 1	Preliminary
	1	Name of Act	2
	2	Commencement	2
Part 2	Land Tax Act 2004
	3	Legislation amended—pt 2	3
	4	Section 14	3
	5	Dictionary, definition of owner, new paragraph (aa)	4
	6	Dictionary, definition of unit owner	4
Part 3	Land Titles (Unit Titles) Act 1970
	7	Legislation amended—pt 3	5
	8	Registration of units plan
New section 7 (1) (e)	5
Part 4	Rates Act 2004
	9	Legislation amended—pt 4	6
	10	Dictionary
Section 3, note 1	6
	11	Meaning of unimproved value
Section 6 (3), definition of prescribed date, paragraph (c)	6
	12	First determination of unimproved value
Section 9 (3)	6
	13	Section 9 (4)	7
	14	Annual redeterminations
Section 10 (2)	7
	15	Section 11	7
	16	Dictionary, definition of owner, new paragraph (ia)	10
	17	Dictionary, definition of unit owner	10

Australian Capital Territory
Rates and Land Tax Legislation Amendment Act 2009
A2009-52

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:

Part 1	Preliminary
1	Name of Act
This Act is the Rates and Land Tax Legislation Amendment Act 2009.
2	Commencement
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)).

Part 2	Land Tax Act 2004
3	Legislation amended—pt 2
This part amends the Land Tax Act 2004.
4	Section 14
substitute
14	Commissioner to be told if residential land rented
	(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. 
Examples—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).
5	Dictionary, definition of owner, new paragraph (aa)
insert
	(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
6	Dictionary, definition of unit owner
substitute
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. 

Part 3	Land Titles (Unit Titles) Act 1970
7	Legislation amended—pt 3
This part amends the Land Titles (Unit Titles) Act 1970. 
8	Registration of units plan
New section 7 (1) (e)
insert
	(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.

Part 4	Rates Act 2004
9	Legislation amended—pt 4
This part amends the Rates Act 2004.
10	Dictionary
Section 3, note 1
omit
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.
substitute
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.
11	Meaning of unimproved value
Section 6 (3), definition of prescribed date, paragraph (c)
substitute
	(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.
12	First determination of unimproved value
Section 9 (3)
omit
rates
substitute
a parcel of land
13	Section 9 (4)
omit
rates
substitute
the parcel
14	Annual redeterminations
Section 10 (2)
omit
rates
substitute
the parcel
15	Section 11
substitute
11	Redetermination—error 
	(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.
Example
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.
11A	Redetermination—change of circumstances
	(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.
Example—s (4)
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).
16	Dictionary, definition of owner, new paragraph (ia)
insert
	(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
17	Dictionary, definition of unit owner
substitute
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.

Endnotes
1	Presentation speech
	Presentation speech made in the Legislative Assembly on 19 November 2009.
2	Notification
	Notified under the Legislation Act on 18 December 2009.
3	Republications of amended laws
	For the latest republication of amended laws, see www.legislation.act.gov.au.

I certify that the above is a true copy of the Rates and Land Tax Legislation Amendment Bill 2009, which was passed by the Legislative Assembly on 8 December 2009. 

Clerk of the Legislative Assembly

© Australian Capital Territory 2009