Section 18 of the LTA Act provides that where the requirements of an exemption provision are met in relation to only a part of a lot or parcel of land (‘lot’), then only part of the lot is exempt.
Section 18A of the LTA Act describes how to determine the taxable value of land that is partially exempt.
The taxable value of a lot is the unimproved value of the whole lot reduced by the unimproved value of the exempt area. The unimproved value of the exempt area is the same proportion of the unimproved value of the whole lot, as determined by the Valuer General, that the exempt area bears to the whole lot.
Where there is a multi-storey building on the lot that is partially exempt, the Commissioner may determine
- the area that is to be treated as the exempt area and
- the area that is to be treated as the whole area.
The Commissioner may use any method appropriate to determine the exempt area taking into account the areas of the lot and the floor plan of the building being used for an exempt purpose.
