New provisions were introduced in the 2020-21 financial year which group together (or aggregate) all land owned by related corporations for the assessment of land tax.

Grouping of related corporations

Corporations will be considered to be related to each other for land tax purposes when:

• control is exercised by a corporation over another/ other corporations;
• control is exercised by the same person(s) over two or more corporations;
• control is exercised jointly by a corporation and its shareholders, who between them own more than 50% of issued share capital; or
• a corporation owns more than 50% of the beneficial interests/units in land subject to a fixed trust/unit trust.

Assessment of land owned by related corporations

Where two or more corporations are related, the land they own will be grouped together (aggregated) and assessed for land tax as if the land was owned by one corporation.

See the Land Tax Guide to Legislation: Changes - Joint Owners, Land Held on Trust and Related Corporations for more detailed information.