RL 4How much RLWT?

1. The total amount (RLWT) that the relevant person described in section RL 2 or RL 3 must pay or withhold for residential land purchase amounts is equal to the lesser of the amounts described in subsections (2), (4), and (6). The RLWT is paid or withheld for each residential land purchase amount, up to the maximum of the relevant residential land purchase amount. All amounts in this section are GST exclusive.

2. For the purposes of subsection (1), the amount is the greater of zero and the amount calculated using the formula—

   $RLWT\; rate\; \times \; (current\; purchase\; price\; -\; vendor’s\; acquisition\; cost).$

   Where:

3. In the formula in subsection (2),—

4. RLWT rate means the rate provided in schedule 1, part A, clause 1, table 1, row 5 or, if the vendor is a company that is not acting as a trustee, the rate provided in schedule 1, part A, clause 2:
5. current purchase price is the purchase price agreed by the vendor and purchaser for the disposal of the residential land, including deposits and part payments, that the residential land purchase amount relates to:
6. vendor’s acquisition cost is the purchase price paid by the vendor for their acquisition of the residential land.

7. For the purposes of subsection (1), the amount is calculated using the formula—

   $0.10\; \times \; current\; purchase\; price.$

   Where:

8. In the formula in subsection (4), current purchase price has the same meaning as in subsection (3)(b).

9. For the purposes of subsection (1), the amount is the greater of zero and the amount calculated using the formula—

   $current\; purchase\; price\; -\; security\; discharge\; amount\; -\; outstanding\; rates.$

   Where:

10. In the formula in subsection (6),—

11. current purchase price has the same meaning as in subsection (3)(b):
12. security discharge amount is—
    1. zero, if paragraph (ii) does not apply:
    2. the total of the amounts required by licensed security holders to discharge their mortgages or other securities over the residential land, if the relevant person who must pay RLWT is the vendor or the vendor’s conveyancer:
13. outstanding rates is the amount of local authority rates outstanding.

14. In this section, licensed security holder means a person who has a mortgage or other security over the relevant residential land, if that person is—

15. a registered bank:
16. a licensed non-bank deposit taker.

Notes

• Section RL 4: inserted, on 1 July 2016, by section 49 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
• Section RL 4(1): amended (with effect on 1 July 2016), on 21 February 2017, by section 97 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
• Section RL 4(3)(a): amended, on 1 April 2021, by section 15 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
• Section RL 4(8)(b): amended, on 29 March 2018, by section 232(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
• Section RL 4 list of defined terms licensed non-bank deposit taker: inserted, on 29 March 2018, by section 232(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).