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 aggregated assessed 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.

Related companies

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 the 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 email us so that records can be amended.

Refer to the Definition of a registered trustee company guideline for additional information.
 

Statement of company details

The Statement of Company Details form must be lodged by a company that:

• is making its first purchase of land in Tasmania (i.e. 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.