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Definitions of terms

The following definitions relate to terms that come from the Land Tax Act 2010.

Allowable letting

An arrangement where each of the following applies:

  • the land is used as the home of a person (the principal resident)
  • the principal resident has given the occupant the right to live on the land under a tenancy agreement
  • the gross floor area of the residential area to which the right relates (the leased area) is not more than 50% of the total floor area of all residential areas on the land
  • the occupant uses the leased area for residential purposes and has not given the right to occupy any part of the leased area to another person under a tenancy agreement
  • the rent payable for the leased area is not more than the market rent for the area.

Note: It is not an allowable letting if the leased area is in a building containing 3 or more flats and the leased area is not used for residential purposes by the principal resident.

Averaged value

For a financial year is either of the following:

A full definition can be found in section 18 of the Act.

Business of primary production

The conduct of a business of primary production on land if the land is used for primary production activity.

Read the public ruling on land used for primary production (LTA053.1) for more information.

Clearance certificate

Advises there is no unpaid land tax on a particular lot of land in Queensland. It further provides protection to a purchaser from any recovery action if a land tax liability is subsequently identified.

Find out more about clearance certificates, liability advices and garnishee notices.

Foreign company

Your company is foreign if:

  • it is incorporated outside Australia
  • foreign persons or related persons of foreign persons have at least 50% controlling interest.

Learn more about how land tax applies to foreign companies and trusts.

Freehold land

Land that is not state land or leased from the Crown (Queensland Government).

Home

A building, or part of a building, that is all of the following:

  • fixed to the land
  • designed or approved by local government for human habitation by a single family unit
  • used as your principal place of residence.

It is used as a home if it is occupied by the owner or beneficiary as their principal place of residence.

For more information on home exemptions, see these public rulings:

Land

For land tax purposes, this includes:

  • vacant land
  • land that is built on
  • lots in building unit plans
  • lots in group title plans
  • lots in a timeshare scheme
  • lots owned by a home unit company.

Liability

A person’s debt calculated in accordance with the Act.

Lot and plan number

Every property will have a lot and plan description. These are stated in the property section of your contract. Most councils include the lot and plan on rates notices. You can also use the Queensland Geocoder to find this information.

Moveable dwelling park

A place where caravan or manufactured home sites can be rented or leased (e.g. caravan parks).

A full definition can be found in section 54 of the Act.

Owner

A person who is taken to be the owner of the land under the Land Tax Act 2010. This includes a person who is:

  • entitled to possession of a freehold estate in the land, solely or with others
    or
  • entitled to receive rents and profits from the land, solely or with others.

Generally, this is the person recorded as the owner, in the Titles Registry, as at 30 June each year.

For a full definition, see Schedule 4 of the Act.

Possession date

For ownership of land, is the date that actual possession passes to the new owner. This is usually the date of settlement as shown on the Form 24.

An explanation can be found in section 11 of the Act.

Read the public ruling on contracts for the sale and purchase of land (LTA011.1) for more information.

Primary production activity

The following are primary production activities:

  • maintaining animals to sell them, including their natural increase (offspring) or their bodily produce (e.g. milk, eggs)
  • cultivating land to sell produce (whether in a natural, processed or converted state)
  • propagating or cultivating plants (including mushrooms) to sell them or their produce. The plants may be grown in sand, gravel or liquid, without soil and with added nutrients (i.e. hydroponics)
  • planting or tending trees in a plantation or forest to sell them or their produce (timber)
  • an activity, other than an activity mentioned above, that is agriculture, dairy farming or pasturage
  • an activity that is related to and undertaken to support any of the above.

Read the public ruling on land used for primary production (LTA053.1).

Statutory land value

Valuation of land issued under the Land Valuation Act 2010.

Substantial non-exempt purpose

When land is used mainly for a purpose that does not meet the requirements of an exemption.

When determining whether land is being used for a substantial non-exempt purpose, we consider:

  • whether a person other than the principal resident has been given a right to occupy any part of the land under a tenancy agreement
  • whether a person, other than the principal resident or a member of the principal resident’s family who uses the land as his or her home, carries out work on the land as an employee or contractor, other than related to the land itself or a building situated on the land
  • the extent to which a person uses the land, or has set the land aside for use, for a non-exempt purpose
  • whether the gross income generated during the most recently ended financial year from business or income producing activity on the land is more than $30,000
  • any other relevant matter.

Supported accommodation service

A residential service accredited at level 3 under the Residential Services (Accreditation) Act 2002.

An explanation can be found in section 51A of the Land Tax Act.

Taxable value

The lesser of:

Taxable value is defined in section 16 of the Act.

Tenancy agreement

A lease or licence, or an agreement or arrangement about boarding or lodging for a person.

Trustee of a foreign trust

You are a trustee of a foreign trust if at least 50% of the trust interests are held by:

  • an individual who is not an Australian citizen or permanent resident
  • a foreign company
  • a trustee of a foreign trust
  • a related person of any of the above.

Learn more about how land tax applies to foreign companies and trusts.

UTI

Unpaid tax interest, which accrues when tax is not paid by the due date.

Read more about unpaid tax interest and penalties.