Quarterly instalments - interest and penalty tax
Version Number: 1
Legislation: Land Tax Act 1936
Date Issued: 19 January 2011
Revenue Rulings do not have the force of law.
Since the 2005-2006 financial year land tax payers have the option of paying their land tax liability either in one annual payment or by quarterly instalments.
If a land taxpayer chooses to pay by way of quarterly instalments, the first instalment will be due for payment 30 days after the account is issued, with the 3 remaining instalment payments due 90 days after the instalment immediately preceding it.
Property owners who take up the instalment option will receive further notices to pay the relevant quarterly instalment approximately 30 days prior to the due date of that instalment.
Interest or penalty tax will not apply to the quarterly instalment payment option, unless a default occurs. A default in the payment of any of the 4 instalments (that is, payment not made by the due date or payment of only a portion of the instalment amount due) will result in the full annual amount outstanding becoming immediately due and payable.
Property owners in default will be issued a further assessment (final notice) for the full annual amount outstanding, which will include penalty tax and interest payable on the amount outstanding.
The Taxation Administration Act 1996 sets a flat penalty tax of 75% of the unpaid tax in instances of deliberate non-payment, or 25% for any other situation. The Commissioner of State Taxation may exercise discretion to remit penalty tax payable by a taxpayer by any amount.
From the 2005-2006 year, in the first instance, the rate of penalty tax of 25% will be remitted to 5% of the amount of primary land tax outstanding, provided the further assessment is paid in full by the due date. Failure to pay the further assessment may lead to a greater level of penalty tax being payable.
View this Revenue Ruling as a PDF (PDF 239KB)
This Revenue Ruling replaces Circular 257, issued 30 May 2005