Land tax grouping is different in different states, this article is based on Victorian state situation. Under the Land Tax Act 2005 of Victoria, corporations are related corporations in certain circumstances. Where two or more corporations are related, they may be treated as a land tax group. If corporations are grouped, the land holdings of each corporation in the group are combined and assessed as if they were a single land holding owned by a single corporation (i.e. land tax is calculated on the total taxable value of all land owned by members of a group as if it were a single piece of land held by a single company).
Members of a land tax group are jointly and individually liable for the land tax payable by the group. As such, State Revenue Office can recover the land tax payable by the land tax group from any member of that group.
Claire Chang