Taxes Consolidation Act 1997 section 653AGA

Deferral of residential zoned land tax in respect of grant of planning permission

Section 653AGA provides for a deferral of residential zoned land tax (RZLT) arising in respect of a relevant site for a period of up to 12 months following the grant of planning permission, with the deferred tax referred to as "pre-development deferred residential zoned land tax".

• RZLT arising within 12 months of the grant of planning permission in respect of a relevant site may be deferred where no commencement notice has been lodged and no appeal or petition against the planning permission is pending.
• The deferral ends on the earlier of 12 months from the date of the grant of planning permission or a change of ownership of the site, but transfers between companies in the same corporate group do not trigger the end of the deferral, and both the transferor and transferee companies are jointly and severally liable for any deferred tax that becomes payable.
• If a commencement notice is lodged within the 12-month period, the deferred tax relating to residential development transfers to the section 653AH deferral regime, while the portion relating to non-residential development is cancelled; for mixed-use developments the apportionment is based on gross floor space.
• The deferral can only be used once per site regardless of how many planning permissions are granted, and returns must be filed for each liability date during the deferral period.