Land investment company

2010 amendment means a land investment company is defined in a way to ensure it is a PIE that owns predominantly assets consisting of real property.

Section 132(22) of the Taxation (GST and Remedial Matters) Act 2010

The definition of "land investment company" in section YA 1 is the rewritten definition of portfolio land company. A land investment company is defined in a way to ensure it is a PIE that owns predominantly assets consisting of real property.

Key features

The rewritten definition has been amended to ensure that it correctly reflects its pre-rewrite meaning, as follows:

  • Paragraphs (a) and (b) have been amended to be conjunctive (as per paragraphs (a) and (b) of the definition of "portfolio land company").
  • In paragraph (b), the $100,000 market value threshold has been amended to ensure the threshold is "more than or equal to" $100,000 (as per paragraph (b) of the definition of "portfolio land company").
  • In paragraph (b)(ii), the amendment ensures the 90% relates to the market value of the property (as per paragraph (b)(ii) of the definition of "portfolio land company").
  • The amendment also ensures that a company (Company A) will not be a land investment company if it invests in another land investment company which in turn invests back into Company A (as per paragraph (b)(i) of the definition of "portfolio land company").

Application date

The amendments apply from the beginning of the 2008-09 income year.