In an unheralded move, the Victorian government has extended the land tax exemption for primary production land in an urban zone (contained in section 67 of the Land Tax Act 2005) to include land owned by a trustee of a super fund of which all the members or beneficiaries are relatives and at least one of those members or beneficiaries is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land.
Significantly the requirement that “the principal business must be primary production of the type carried on on the land” that applies for all other entities is not present for super funds. It was that requirement that basically made it impossible for super funds to qualify for the land tax exemption.
This change makes super funds an attractive vehicle for holding primary production land that is urban zoned as, in our experience, the “principal business” requirement can be the most difficult requirement to meet to the State Revenue Office’s satisfaction.
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