Victorian Numbered Acts Victorian Numbered ActsAfter section 3E of the Land Tax Act 2005 insert —
(1) For the purposes of this Act, a partner in a partnership is taken to have a beneficial interest in each item of partnership property in the same proportion as the partner's partnership interest.
(2) Without limiting subsection (1), if the partnership property of a partnership ( first partnership ) includes an interest in another partnership, whether directly or indirectly through one or more other partnerships, a partner in the first partnership is also taken to have a beneficial interest in each item of the partnership property of each other partnership—
(a) to the extent of the direct or indirect interest in the other partnership; and
(b) in the same proportion as the partner's partnership interest in the first partnership.
(3) The value of the partner's beneficial interest in an item of partnership property must be determined without regard to any liabilities of the partnership.
Example
A partnership consists of 4 partners each of whom has contributed equally to the capital of the partnership and would be entitled to a 25% share of any surplus on dissolution of the partnership in respect of capital. The sole partnership property is land with an unencumbered value of $4 million. The registered proprietor of the land is a person who holds the land as custodian for the benefit of the partnership. The liabilities of the partnership are $3 million. Under this section, each partner is taken to have a 25% beneficial interest in the land without regard to any liabilities of the partnership.
(4) In this section—
"partnership interest", of a partner, means the proportion of any surplus to which the partner would be entitled in respect of capital if the partnership were to be dissolved;
"partnership property" has the same meaning as in section 24(1) of the Partnership Act 1958 .".