2006

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

2006

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

An Act to amend the Duties Act 1999

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Duties Amendment Act 2006 (No 2).

This Act commences on the day after its notification day.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

This Act amends the Duties Act 1999.

(iv) a grant of a long-term lease;

(v) a grant of a franchise arrangement.

specified in table 8, column 1

mentioned in column 2 of an item in table 8

specified opposite the dutiable transaction in column 2

mentioned in the item, column 3

specified opposite the dutiable transaction in column 3

mentioned in the item, column 4

occurred at the time specified opposite the dutiable transaction in column 4

happened at the time mentioned in the item, column 5

(ca) a lease (a long-term lease) that is granted for—

(i) a term longer than 30 years; or

(ii) an initial term of 30 years or less, but with an option for renewal for 1 or more terms that would, taken together with the initial term, result in a term of longer than 30 years;

(cb) a franchise arrangement held in relation to a place or area located in the ACT that is granted for—

(i) a term of longer than 30 years; or

(ii) an initial term of 30 years or less, but with an option for renewal for 1 or more terms that would, taken together with the initial term, result in a term of longer than 30 years;

(b) whichever of the following applies:

(i) for a long-term lease or franchise arrangement—the unencumbered value of the Crown lease of the land in relation to which the long-term lease or franchise arrangement is granted;

(ii) for any other dutiable property—the unencumbered value of the dutiable property.

(other than marketable securities)

dutiable property does not include marketable securities.

(2) The duty chargeable on a dutiable transaction is the lesser of—

(a) ad valorem duty in accordance with this chapter; and

(b) $200.

(2A) However, the duty chargeable on a dutiable transaction is $20 if the dutiable property transferred, or agreed to be transferred, is marketable securities.

Note 1 No duty is chargeable on transactions relating to marketable securities that are shares or units quoted on a stock exchange, or related rights or interests (see s 10 (2)).

Note 2 After 30 June 2010, no duty will be chargeable on transactions relating to unquoted marketable securities (see s 75A (Expiry—provisions relating to unquoted marketable securities)). For the relevant transitional provisions, see pt 15.3.

Note 1 No duty is chargeable on transactions relating to marketable securities that are shares or units quoted on a stock exchange, or related rights or interests (see s 10 (2)).

Note 2 After 30 June 2010, no duty will be chargeable on transactions relating to unquoted marketable securities (see s 75A (Expiry—provisions relating to unquoted marketable securities)). For the relevant transitional provisions, see pt 15.3.

This part and the following provisions expire on 30 June 2010:

• section 6, definition of transfer

• section 10 (1) (d) and (e)

• section 10 (1) (i) (i) and (iii)

• section 10 (2)

• section 24 (8)

• section 32

• section 57 (3), definition of dutiable property

• section 60A

• section 63 (2A)

• section 70

• section 72A

• section 75

• section 90 (4)

• section 91 (2) (h)

• part 3.3

• part 3.5

• section 248

• section 249

• dictionary, definitions of ADR, capital reduction, company, dutiable entitlement, marketable securities, person, rights alteration and voting share

• dictionary, definition of transfer, paragraph (b).

Note The expiry takes effect at midnight on 30 June 2010 (see Legislation Act, s 85 (3)).

(1A) The statement must be lodged not later than 90 days after the day the relevant acquisition is made.

(1) A liability for duty charged by this part arises when a land use entitlement is acquired by an allotment of shares or an issue of units to anyone otherwise than in circumstances to which subsection (2) applies.

(2) This subsection applies to an allotment of shares to anyone by a territory company that is not listed on a stock exchange at another person’s direction, in discharge of an obligation to that other person, whether that obligation arises as consideration for the purchase of property by the company or otherwise.

lease does not include a long-term lease.

, or the unencumbered value of the Crown lease of the relevant land,

(other than a franchise arrangement)

The person liable to pay the duty is the lessor.

(other than a franchise arrangement)

This chapter and the following provisions expire on 30 June 2009:

• dictionary, definitions of fit-out costs, lease instrument, value of the lease and variation.

Note The expiry takes effect at midnight on 30 June 2009 (see Legislation Act, s 85 (3)).

(ii) duty is chargeable under chapter 2 or chapter 5 in relation to the lease or licence;

(b) a franchise arrangement that is chargeable with duty under chapter 2;

This chapter and the following provisions expire on 30 June 2007:

• section 252 (1) (o), (p) and (q)

• dictionary, definitions of commercial hire business, equipment financing arrangement, goods, hire of goods, hire-purchase agreement, hiring charges and special hiring agreement.

Note The expiry takes effect at midnight on 30 June 2007 (see Legislation Act, s 85 (3)).

The Duties Amendment Act 2006 (No 2) inserted s 173A which provides for the expiry of ch 6 (Hire of goods) on 30 June 2007.

(1) The repeal of chapter 6 (Hire of goods) by section 173A (Expiry—ch 6) does not affect any obligation to pay duty under part 6.3 (Arrangements applying to people engaged in business of hiring out goods) in relation to hiring charges received by a commercial hire business before 1 July 2007 and, for that purpose, that part continues to apply as if it had not been repealed.

(2) In particular, section 169 (Lodgment of returns and payment of duty) continues to apply so that a commercial hire business—

(a) is required to lodge a return in accordance with that section in relation to each month before July 2007; and

(b) may request a reassessment of duty under section 169 (6).

(3) This section applies whether or not the hire to which the charges relate is for a period after 30 June 2007.

(1) The repeal of chapter 6 (Hire of goods) by section 173A (Expiry—ch 6) does not affect any obligation to pay duty under part 6.4 (Arrangements applying to people other than those engaged in business of hiring out goods) in relation to a hire of goods entered into before 1 July 2007.

(2) For that purpose—

(a) part 6.4 continues to apply to a hire of goods entered into before 1 July 2007 but only if the first or only payment of hiring charges is paid or becomes payable before that date; and

(b) no refund of duty is payable in relation to any part of the hiring charges that is paid or becomes payable after 30 June 2007.

(3) Subsection (2) does not prevent a reassessment of duty being made under section 169 (6) as in force immediately before its repeal.

(4) This section applies whether or not the hire to which the charges relates is for a period after 30 June 2007.

(1) In this section:

repealed provisions means the provisions mentioned in section 173A (Expiry—ch 6) as those provisions were in force immediately before their expiry.

(2) Despite their expiry, the repealed provisions apply to a hire of goods mentioned in repealed chapter 6 (Hire of goods) if—

(a) the hire of goods replaces a hire of goods that was entered into before 1 July 2007; or

(b) another arrangement was made before 1 July 2007 the only or main purpose of which was to defer the hire of goods until 1 July 2007 or later so that chapter 6 would not apply to it.

(3) This section is a law to which the Legislation Act, section 88 (Repeal does not end effect of transitional laws etc) applies.

(1) A regulation may prescribe transitional matters necessary or convenient to be prescribed because of the enactment of section 173A (Expiry—ch 6) by the Duties Amendment Act 2006 (No 2).

(2) A regulation may modify this part to make provision in relation to anything that, in the Executive’s opinion, is not, or is not adequately or appropriately, dealt with in this part.

(3) A regulation under subsection (2) has effect despite anything elsewhere in this Act.

(4) A regulation under subsection (2) expires 12 months after the day it commences.

This part expires on 30 June 2012.

The Duties Amendment Act 2006 (No 2) inserted s 150A which provides for the expiry of ch 5 (Lease instruments) on 30 June 2009.

(1) The repeal of chapter 5 (Lease instruments) by section 150A (Expiry—ch 5)does not affect any obligation to pay duty under chapter 5 in relation to a lease first executed before 1 July 2009 and, for that purpose, the chapter continues to apply as if it had not been repealed.

(2) However, section 139 (2) does not apply in relation to a variation to a lease if the variation is made after 30 June 2009.

(3) Also, the following provisions apply if a lease executed before 1 July 2009 has any unascertainable cost components for which there is an estimate date after 30 June 2009:

(a) on the first estimate date after 30 June 2009 (the final estimate date), the commissioner must make a final estimate of the cost of the lease;

(b) section 144 (3) applies (with any necessary changes) for the making of the final estimate;

(c) the lease instrument is chargeable with duty as if the final estimate were the full cost of the lease;

(d) no further estimates of the cost of the lease are to be made (despite section 144 (5));

(e) section 144 (7) applies only to the final estimate date or an estimate date that happens before the final estimate date;

(f) sections 144 (9) and (10) do not apply in relation to any period after the final estimate date.

(1) In this section:

repealed provisions means the provisions mentioned in section 150A (Expiry—ch 5) as those provisions were in force immediately before their expiry.

(2) Despite their expiry, the repealed provisions apply to a lease instrument mentioned in repealed chapter 5 (Lease instruments) if—

(a) the lease instrument replaces a lease instrument evidencing or effecting a lease that was entered into before 1 July 2009; or

(b) another arrangement was made before 1 July 2009 the only or main purpose of which was to defer the execution of, or a variation to, the lease instrument until 1 July 2009 or later so that chapter 5 would not apply to the lease instrument.

(3) Without limiting subsection (2), the commissioner must not refund duty under section 148 (Reassessment of duty—early termination) on a lease instrument evidencing or effecting a lease of property if satisfied that the lessee or any associated person will continue to lease the property under a new arrangement.

(4) This section is a law to which the Legislation Act, section 88 (Repeal does not end effect of transitional laws etc) applies.

(1) A regulation may prescribe transitional matters necessary or convenient to be prescribed because of the enactment of section 150A (Expiry—ch 5) by the Duties Amendment Act 2006 (No 2).

(2) A regulation may modify this part to make provision in relation to anything that, in the Executive’s opinion, is not, or is not adequately or appropriately, dealt with in this part.

(3) A regulation under subsection (2) has effect despite anything elsewhere in this Act.

(4) A regulation under subsection (2) expires 12 months after the day it commences.

This part expires on 30 June 2014.

The Duties Amendment Act 2006 (No 2) inserted s 75A which provides for the expiry of provisions relating to duty on unquoted marketable securities on 30 June 2010.

(1) In this section:

repealed provisions means the provisions mentioned in section 75A (Expiry—provisions relating to unquoted marketable securities) as those provisions were in force immediately before their expiry.

(2) Despite their expiry, the repealed provisions and chapter 2 and chapter 3 as in force immediately before the expiry apply to a transfer or transaction in relation to dutiable property mentioned in the repealed provisions if—

(a) the transfer or transaction replaces a transfer or transaction that was entered into before 1 July 2010; or

(b) another arrangement was made before 1 July 2010 the only or main purpose of which was to defer the transfer or transaction until 1 July 2010 or later so that chapter 2 would not apply to it.

(3) This section is a law to which the Legislation Act, section 88 (Repeal does not end effect of transitional laws etc) applies.

(1) A regulation may prescribe transitional matters necessary or convenient to be prescribed because of the enactment of section 75A (Expiry—provisions relating to unquoted marketable securities) by the Duties Amendment Act 2006 (No 2).

(2) A regulation may modify this part to make provision in relation to anything that, in the Executive’s opinion, is not, or is not adequately or appropriately, dealt with in this part.

(3) A regulation under subsection (2) has effect despite anything elsewhere in this Act.

(4) A regulation under subsection (2) expires 12 months after the day it commences.

This part expires on 30 June 2015.

lease means—

(a) a lease of land in the ACT or an agreement for a lease of land in the ACT; or

(b) an agreement (for example, a licence) by which a right to use land in the ACT at any time and for any purpose is given to or acquired by a person.

lessee includes—

(a) any assignee for the time being of the rights of the lessee under a lease; and

(b) a person who has a right of the kind mentioned in the definition of lease, paragraph (b).

lessor includes a person who grants a right of the kind mentioned in the definition of lease, paragraph (b).

long-term lease—see section 10 (1) (ca).

(iia) a buyback of shares in accordance with the Corporations Act, part 2J.1, division 2; and

Presentation speech made in the Legislative Assembly on 2006.

Notified under the Legislation Act on 2006.

For the latest republication of amended laws, see www.legislation.act.gov.au.