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Lotus Oaks Part 2 – Primary production land tax exemption “of the type” requirement

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Lotus Oaks Part 2 – Primary production land tax exemption “of the type” requirement

Part 2 of our series decision of Lotus Oaks Pty Ltd as trustee for the Bozzo Family Trust v Commissioner of State Revenue [2021] VSC 388 looks at the former requirement in section 67 of the Land Tax Act 2005 (Vic) (Act) which required the principal business of the Bozzo FT to be of the type carried on on the subject land.

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Lotus Oaks Part 3 – Primary production exemption - substantially full-time engagement requirement

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Lotus Oaks Part 3 – Primary production exemption - substantially full-time engagement requirement

This final part of our 3 part series on the Lotus Oaks Pty Ltd as trustee for the Bozzo Family Trust v Commissioner of State Revenue [2021] VSC 388 decision looks at the substantially full-time engagement requirement in section 67 of the Act.

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2021 Victorian State Budget - Prepare for tax increases

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2021 Victorian State Budget - Prepare for tax increases

The Victorian State Budget for the 2021-2022 year brings with it particularly broad-ranging state taxation measures that will impact a diverse cross-section of the Victorian community. The changes include increased land tax and transfer (stamp) duty rates as well as new tax measures such as the windfall gain tax on rezoned land and a mental health and wellbeing levy (payroll tax surcharge).

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Sladen Snippet - Rural land leased to tenant found not to be used for primary production and subject to land tax

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Sladen Snippet - Rural land leased to tenant found not to be used for primary production and subject to land tax

In the recent decision of Chandrala v Chief Commissioner of State Revenue [2021] NSWCATAD 50, the NSW Civil and Administrative Tribunal (NCAT) has determined that rural land, that was leased to a tenant, was not exempt from land tax under the primary production exemption.

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Sladen snippet - Wind farm turbines considered to be chattels not fixtures

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Sladen snippet - Wind farm turbines considered to be chattels not fixtures

In the recent decision of AWF Prop Co 2 Pty Ltd and Ararat Wind Farm Pty Ltd v Ararat Rural City Council and Valuer General Victoria [2020] VSC 853, the Supreme Court of Victoria ruled in favour of the wind farm owners and determined the various wind farm assets (such as wind turbines) to be chattels rather than fixtures.

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Sladen snippet – Land tax surcharge triggered due to defective saving clause in the trust deed

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Sladen snippet – Land tax surcharge triggered due to defective saving clause in the trust deed

Many state and federal taxing provisions provide different tax outcomes on the trustees of trusts depending on what type of trust is involved. One example of this is contained in the NSW land tax rules which provides for a land tax surcharge on unit trusts that are “special trusts” rather than “fixed trusts”.

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Sladen Snippet - Court allows trustee to amend trust deed to exclude foreign beneficiaries to avoid land tax surcharge

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Sladen Snippet - Court allows trustee to amend trust deed to exclude foreign beneficiaries to avoid land tax surcharge

Many states now have foreign land tax surcharges that apply to foreign persons including trustee of foreign trusts. As a result many trustees will consider amending their trust deeds to ensure that they don’t inadvertently trigger such surcharges.

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Primary production land tax exemption knocked back – the Annat case

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Primary production land tax exemption knocked back – the Annat case

Annat v Commissioner of State Revenue [2020] VSC 108 (Annat) highlights the real risk faced by some farm owners in qualifying for a primary production land tax exemption .

Due to the Victorian State Revenue Office’s approach and scrutiny on primary production lands of late, traditional farming land owners are finding that they now must understand the difficult legislative requirements surrounding primary production land tax exemptions, the resulting structuring and record keeping requirements to ensure that they are not unintentionally exposing themselves to large land tax liabilities.

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Sladen snippet: Victorian relief measures in response to the bushfires and COVID-19 pandemic now law

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Sladen snippet: Victorian relief measures in response to the bushfires and COVID-19 pandemic now law

As of 1 May 2020, the State Taxation Acts Amendment (Relief Measures) Act 2020 (Vic) introduces various changes to land transfer duty and payroll tax relief measures as part of the government’s response to provide relief measures for bushfire affected areas and the COVID-19 pandemic.