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Publication-GEN-02-16

Changes to state taxes - November 2016

The State Taxation Acts Further Amendment Act 2016 received Royal Assent on 15 November 2016. It introduced changes to the Land Tax Act 2005, Payroll Tax Act 2007, Planning and Environment Act 1987, and Valuation of Land Act 1960.

Land Tax Act 2005

The relevant date for valuations of non-rateable non-leviable land is aligned with the relevant date for valuations of rateable and non-rateable leviable land. In most cases, the relevant date for a valuation of non-rateable non-leviable land is now 1 January every even calendar year, consistent with the local government general valuation cycle. 

The land tax rate table for absentee trusts with taxable land holdings between $250,000 and $600,000 was corrected to 2.075% for the 2017 land tax year. This is the rate that was intended to apply.

These amendments commenced on 1 January 2017 and applied to the 2017 land tax cycle.

Payroll Tax Act 2007

The exempt rate for motor vehicle allowances paid to employees was updated to ensure that the payroll tax exemption continues to operate as intended and aligns with the deduction rate determined under the Commonwealth income tax legislation.

The exempt rate for the 2016-17 payroll tax year is 66 cents per kilometre and applied from 1 July 2016 to ensure employers are able to benefit from the exemption across the entire 2016-17 tax year.

Planning and Environment Act 1987

A landowner who subdivides land for the sole purpose of setting aside land for a public purpose is required to pay the Growth Areas Infrastructure Contribution (GAIC) liability attributable to the public purpose land within three months of the statement of compliance being issued.

The GAIC attributable to the balance of the land will not be triggered until a subsequent GAIC event occurs. This could be, for example, a transfer of land, a subsequent subdivision or issue of a building permit.

The Planning and Environment Act 1987 is amended to ensure that when land subject to the GAIC (or a deferred GAIC liability) is subdivided, the GAIC (or deferred liability) can be apportioned between the new lands in the resulting child titles.

The exemption that applied to compulsory acquisitions of land by public authorities or municipal councils has been removed to ensure the new provisions apply equitably across all landowners.

Valuation of Land Act 1960

There were a number of amendments to the Valuation of Land Act 1960:

  • Local councils must include the Australian Valuation Property Classification Code in a notice of valuation from the 2018 valuation cycle,
  • The Valuer-General can accept a late nomination to undertake land valuations for non-rateable leviable lands, and
  • The definition of 'general valuation' was clarified.