Companies are related if:
- a company controls the composition of the board of directors of the other company or
- one or more persons own more than half the voting shares in two or more companies or
- a person(s) and a company, in which they are a shareholder together, have a controlling interest shareholding in another company.
When assessing related companies the concessional company receives the benefit of the threshold and each other company (non-concessional) is assessed without the threshold.
- Where the concessional or joint concessional companies’ land value exceeds the premium rate threshold, the land value of each non-concessional company is assessed at 2 per cent of the taxable value.
- Where the land value does not exceed the premium rate threshold, but exceeds the general threshold, the land value of each non-concessional company is assessed at 1.6 per cent of the taxable value.