Taxes Consolidation Act 1997 section 653AI

Death

Section 653AI provides for the residential zoned land tax (RZLT) obligations that arise on the death of a liable person, including the role of personal representatives, the timing of post-death tax payments, and the continuation of refund and deferral entitlements.

• On the death of a liable person, the personal representatives are deemed to be the liable person for RZLT purposes for the duration of the administration of the estate, assuming all RZLT obligations as if they had acquired the site at the same time as the deceased.
• Post-death RZLT (arising between the date of death and the completion of administration) is not due and payable until the earlier of 12 months from the grant of probate or letters of administration, or 24 months from the date of death; if the administration is completed before either deadline, the post-death tax ceases to be payable.
• The personal representatives may, during the administration period, make claims for refunds, deferrals, or exemptions from RZLT that the deceased would have been entitled to make, including claims relating to sites unsuitable for development, sites subject to mapping appeals, planning permission appeals, unauthorised development proceedings, planning permission deferrals, and leases preventing development.
• On completion of the administration, any deferred RZLT becomes a charge on the land; a beneficiary who takes ownership of a site on which RZLT was deferred may continue to apply the deferral, and any charge on the land ceases to apply where the tax would not have been payable by the beneficiary had they been the liable person at the date of death.