Australian Capital Territory
Taxation Administration (Amounts payable-Land Rent) Determination 2008 (No 1)
Disallowable instrument DI2008-138
made under the  
Taxation Administration Act 1999, section 139 (Determination of amounts payable under tax laws)
EXPLANATORY STATEMENT

1. 	The Taxation Administration Act 1999 (TAA) deals with the administration of various tax laws relating to the imposition and collection of certain taxes, duties and licence fees.
2. 	Section 139 of the TAA empowers the Minister to determine the amount of taxes, duties and licence fees payable under a tax law, including the Land Rent Act 2008 (the Land Rent Act).  The Land Rent Act imposes land rent on certain residential leases. 
3.	For the purposes of the provisions of the Land Rent Act specified below, the following are determined under section 139 of the TAA:
(1)	Standard Percentage
For the purposes of sections 8, 15, 16 and 17 of the Land Rent Act, the standard percentage is 4%.  This is the annual amount of land rent as a percentage of the unimproved value of the parcel of land under a land rent lease.  For example, if the unimproved value of a parcel of land is $200,000, then the annual land rent for that parcel of land is $8,000.
(2)	Discount Percentage
For the purposes of sections 8, 15 and 16 of the Land Rent Act, the discount percentage is 2%.  This is the amount of land rent as a discounted percentage of the unimproved value of the parcel of land under a land rent lease where a lessee is eligible under section 11 of the Land Rent Act.  For example, if the unimproved value of a parcel of land is $200,000, then the annual land rent for that parcel of land is $4,000.
(3)	Relevant Percentage
For the purposes of sections 8 and 15 of the Land Rent Act, the relevant percentage is to be set by the annual change in Average Weekly Earnings (AWE) as reported by the Australian Bureau of Statistics.  The relevant percentage caps the increase to protect households from large rental increases due to increases attributed to unimproved land values.  
(4)	Income Threshold Amount
For the purposes of sections 11 and 15 of the Land Rent Act, the income threshold amount means the income threshold amount with reference to the number of dependent children the lessees of a land rent lease have.  The income threshold amount is set at $75,000 per annum with an allowance for each dependant child of $3,330 per annum up to a maximum of $91,650 for a lessee eligible for the discount percentage with 5 or more dependant children in accordance with the following table:

Number of dependent children	Income threshold	
0	$75,000	
1	$78,330	
2	$81,660	
3	$84,990	
4	$88,320	
5 or more	$91,650	

Authorised by the Treasurer
Jon Stanhope MLA