State revenue and budget amendments

Land tax

Averaging of land values

For the 2007 land tax year the taxable value of each parcel of land will generally be the average of the land value applying for the current tax year and the two land values that applied for the previous two tax years.

Where a parcel of land was only recently created (eg by subdivision or amalgamation), the average value will be based only on the land values for those taxing dates when the land did exist.

Averaging of land tax threshold

For the 2007 and future land tax years the land tax threshold will be averaged. The threshold will be the average of the 'indexed amount' for the new tax year and the previous two land tax years, as calculated annually by the Valuer General.

As the land tax threshold was abolished for the 2005 land tax year, a 'notional' threshold of $342,000 will be used for that year. The threshold cannot fall below that of the previous year and where the average threshold is less than the previous year's threshold, then the previous year's threshold will continue to apply.

Concessions for unit trusts

Family unit trusts

To assist families holding land valued up to $1 million in a family unit trust, the Government will revert to the previous tax treatment by applying the tax free threshold.

Unit trusts will qualify if they have previously been assessed as fixed trusts and at least 95 per cent of the units are owned by members of the same family.

Other unit trusts

In addition, the Government will allow all unit trusts which have previously been taxed as fixed trusts, 12 months grace to restructure their holdings into a fixed trust, allowing them to retain access to the land tax threshold without incurring State taxes on the restructuring transactions

Furthermore, if a unit trust is restructured and becomes a fixed trust before 31 December 2007, it will be reassessed for the 2006 tax year to apply the benefit of the land tax threshold and an appropriate refund will be provided.

Gaming machine tax

There will be a reduction in the gaming machine tax rate for registered clubs, effective from the 2006 tax year.

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