Section 32 of the Land Tax Assessment Act provides that land is exempt for an assessment year if
- at midnight on 30 June in the previous financial year it is owned by, vested in, or held in trust for a religious body and
- it is in good faith reserved or used as a site for religious purposes, including a site for a church or a chapel, for public worship, for educational purposes or for the residence of a minister of the religious body.
However, if during an assessment year, reserved land is used for any other purpose is sold, then land tax is payable on the land for the lesser of the following periods
- the five financial years reckoned retrospectively from and including the assessment year or
- the number of financial years from, and including, the first financial year for which the land was exempt as a result of its use and ownership to and including the assessment year.
The amount of land tax payable for each financial year for which land tax is payable is assessed at the rate applicable for that year under the Land Tax Act.
