New provisions were introduced effective for and from 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 2 or more corporations;
- control is exercised jointly by a corporation and its shareholders over another corporation, 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 2 or more corporations are related, the land they own, either solely or the parts they own jointly with others, will be grouped together (aggregated) and assessed for land tax as if the land was owned by one corporation.
See the Related Corporations page for more detailed information.
See the Guide to Legislation: Land Tax - related corporations for more detailed information.