Section 31 of the land Tax Act 2000
provides for related companies to be grouped for land tax. Land holdings of grouped companies are aggregated to determine the amount of land tax payable by the group. (The same approach applies for individuals who own multiple properties).
Land Tax is imposed on a progressive scale. The inclusion of company grouping provisions ensures that related companies pay an amount of land tax determined by the value of their
total land holding. The company grouping provisions apply irrespective of whether multiple properties are held directly or indirectly through shareholding in another company that owns land.
Two companies are related to each other for land tax purposes if:
- a person has, or the same people together have, a controlling interest in both companies;
- the companies are related bodies corporate for the purposes of the Commonwealth
Corporations Act 2001;
- one of those companies in a group is related to a company in another group, then all companies in the groups are related; or
- where two companies have shareholders in common in certain circumstances.
For further explanation and examples, refer to the
Grouping of related companies guideline.
Trustee land holdings
A trustee’s land holdings are aggregated unless exempted from the provisions in the following cases:
- registered trustee companies, as defined in the
Trustee Companies Act 1953;
- registered trustee companies as defined in a similar law of another State or a Territory of the Commonwealth;
- an executor administrator, guardian, committee, receiver or liquidator;
- the Public Trustee as defined in the
Public Trustee Act 1930; or
- any other trustee appointed by a court.
Land held by a taxpayer in their capacity as trustee and land held by that taxpayer in their own right will not be aggregated for land tax purposes. If this situation applies to you, please
us so that records can be amended.
Statement of company details
- is making its first purchase of land in Tasmania (ie. it has not at any time owned land in that State); or
- has not owned land in Tasmania in the past three financial years, but is now purchasing land in that State.
If your company is a member of a group and a statement is being completed on behalf of the group by the nominated group member, it will be sufficient if your company details are included in the group declaration.