When is a landholder land rich?
Landholder duty
From 1 July 2009, landholder duty replaces the land rich provisions.
When is a landholder land rich?
A landholder is land rich if:
a) it has land holdings in NSW with an unencumbered value of $2 000 000 or more, and
b) its land holdings in all places, whether within or outside Australia, comprise 60 per cent or more of the unencumbered value of all its property.
In calculating the unencumbered value of the property of a landholder, property of any of the following types is not counted:
cash, whether in Australian or other currency
money on deposit with any person, negotiable instruments or debt securities
loans that, according to their terms, are to be repaid on demand by the lender or within 12 months after the date of the loan
if the landholder is a private company, loans to persons who, in relation to the company or to a majority shareholder or director of the company, are associated persons
if the landholder is a private unit trust scheme or a wholesale unit trust scheme, loans to persons who are associated persons
land use entitlements
units or shares in a linked entity of the landholder
property consisting of an interest as a beneficiary in a discretionary trust (within the meaning of section 163U).
