On Sep. 3, AST VIC Tax issued draft ruling on tax exemption for land.
AST VIC Tax issued draft ruling on the land tax exemption for land being prepared for primary production (LTA-006v2), where tax exemption is under Land tax act 2005.
Follows AST VIC Tax Dec. 2022 said it issued tax rulings on exemptions, see #157549.
Background
It reminded land used solely/primarily for primary production purposes may be exempt from land tax per ss 65, 66 or 67 Land tax act 2005 (primary production exemption).
Section 68 of the act extends the primary production exemption to land that is being prepared for use primarily for primary production use (the preparatory exemption).
If the commissioner of AST VIC Tax (the commissioner) satisfied that the land is being prepared for use primarily for primary production, the land will become exempt land tax within 12 months after the commencement of the preparatory activities.
Draft Ruling
Draft ruling guides re activities that constitute preparation in the context of section 68.
In addition, it identifies the factors which the commissioner will consider in exercising his discretion as to whether time should be extended under section 68(2) of the act.
The draft ruling also sets out the requisite evidentiary requirements for the exemption.
Effectiveness
The comment period for this consultation closes at 5pm AEST on Oct. 2, 2024.
Oct. 2024 Finalized Ruling
On Oct. 16, 2024, AST VIC Tax published the revised ruling LTA-006v2, which replaces LTA-006, to provide more detailed guidance on activities that constitute preparation of land for use primarily for primary production for the purposes of the exemption.
