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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Duties Amendment (First Home Plus
One) Bill 2007
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Duties Act 1997 No 123 2
4 Amendment of Land Tax Management Act 1956 No 26 2
5 Repeal of Act 2
Schedule 1 Amendment of Duties Act 1997 3
Schedule 2 Amendment of Land Tax Management Act 1956 8
I certify that this public bill, which originated in the Legislative Assembly, has
finally passed the Legislative Council and the Legislative Assembly of New
South Wales.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2007
New South Wales
Duties Amendment (First Home Plus
One) Bill 2007
Act No , 2007
An Act to amend the Duties Act 1997 and the Land Tax Management Act 1956 to
extend a duty and land tax concession to shared equity arrangements between first
home owners and other persons.
I have examined this bill and find it to correspond in all respects with the bill as
finally passed by both Houses.
Assistant Speaker of the Legislative Assembly.
Clause 1 Duties Amendment (First Home Plus One) Bill 2007
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Duties Amendment (First Home Plus One) Act 2007.
2 Commencement
This Act commences on the date of assent to this Act.
3 Amendment of Duties Act 1997 No 123
The Duties Act 1997 is amended as set out in Schedule 1.
4 Amendment of Land Tax Management Act 1956 No 26
The Land Tax Management Act 1956 is amended as set out in
Schedule 2.
5 Repeal of Act
(1) This Act is repealed on the day following the day on which this Act
commences.
(2) The repeal of this Act does not, because of the operation of section 30
of the Interpretation Act 1987, affect any amendment made by this Act.
Page 2
Duties Amendment (First Home Plus One) Bill 2007
Amendment of Duties Act 1997 Schedule 1
Schedule 1 Amendment of Duties Act 1997
(Section 3)
[1] Section 71 Restrictions on eligibility--previous ownership of residential
property or first home concession
Omit section 71 (1)(3). Insert instead:
(1) A purchaser or transferee under an agreement or transfer may
apply under the scheme, but will be eligible only if the purchaser
or transferee is a first home owner.
(2) A first home owner is an individual:
(a) who has not at any time owned residential property in
Australia (either solely or with someone else) and has not
previously been a party to an application under the scheme
that was approved by the Chief Commissioner, and
(b) whose spouse (if any) has not at any time owned
residential property in Australia (either solely or with
someone else) and has not previously been a party to an
application under the scheme that was approved by the
Chief Commissioner.
[2] Section 71 (6)
Omit "may be disregarded if the Chief Commissioner is satisfied that".
Insert instead "is to be disregarded if".
[3] Section 71 (6) (b)
Omit the paragraph. Insert instead:
(b) the ownership share in the property to which the
application relates that is being acquired by purchasers or
transferees who own or have owned other residential
property, or have previously been a party to an application,
does not exceed 5%.
[4] Section 73 Ineligible persons
Omit "is eligible or would be eligible if he or she were the purchaser" from
section 73 (2) (a).
Insert instead "is a first home owner who will be occupying the home to which
the agreement or transfer relates as a principal place of residence in accordance
with the residence requirement under section 76".
Page 3
Duties Amendment (First Home Plus One) Bill 2007
Schedule 1 Amendment of Duties Act 1997
[5] Section 73 (2) (b)
Omit "is eligible". Insert instead "is a first home owner".
[6] Section 73 (6)
Omit the subsection. Insert instead:
(6) If there is more than one purchaser or transferee under an
agreement or transfer and at least one of them is a first home
owner who is an Australian citizen or permanent resident, the
other purchasers or transferees are exempt from compliance with
subsection (5).
[7] Section 73A
Insert after section 73:
73A Application of eligibility criteria to joint purchasers and
transferees
(1) If there is more than one purchaser or transferee under an
agreement or transfer, they may apply under the scheme, but the
agreement or transfer will be eligible under the scheme only if all
of the purchasers or transferees are eligible under the scheme.
(2) This section is subject to section 80AA.
Note. Section 80AA allows a limited duty concession under the scheme
to be claimed in respect of residential property that is purchased subject
to a shared equity arrangement between a first home owner and a
person who is not a first home owner.
[8] Section 76 Residence requirement
Omit "the person or persons who are" in section 76 (1).
Insert instead "the first home owner or one of the first home owners who is".
[9] Section 76 (2) (a) and (b)
Omit "the person or persons" wherever occurring.
Insert instead "a first home owner".
[10] Section 76 (3)
Omit "the person or persons who are acquiring it as their".
Insert instead "the first home owner or one of the first home owners who is
acquiring it as a".
[11] Section 76 (4)
Omit the subsection.
Page 4
Duties Amendment (First Home Plus One) Bill 2007
Amendment of Duties Act 1997 Schedule 1
[12] Section 77 Eligible mortgages
Omit section 77 (1). Insert instead:
(1) A mortgage is eligible if:
(a) it is given to assist the financing of a purchase under an
agreement or transfer that is eligible under the scheme, and
(b) the purchaser or purchasers under the agreement or
transfer are eligible under the scheme (including if the
agreement or transfer is eligible under the scheme for a
shared equity concession).
[13] Section 80 Duty payable if application approved
Insert after section 80 (2):
(3) This section does not apply in respect of an agreement or transfer
that is eligible under the scheme only for a shared equity
concession.
[14] Section 80AA
Insert after section 80:
80AA Special concession for shared equity arrangements
(1) If there is more than one purchaser or transferee under an
agreement or transfer, and one or more of them is a first home
owner, but the agreement or transfer is not eligible under the
scheme because one or more of the other purchasers or
transferees is not eligible under the scheme, the agreement or
transfer may still be eligible for a duty concession under the
scheme (a shared equity concession).
(2) In order to be eligible for a shared equity concession:
(a) the purchasers or transferees who are first home owners
must acquire not less than a 50% share in the ownership of
the property, and
(b) the agreement or transfer must be an agreement or transfer
that would be eligible under the scheme if the first home
owners were the sole purchasers or transferees under the
agreement or transfer.
(3) If an application concerning an agreement or transfer that is
eligible under the scheme for a shared equity concession is
approved, duty is chargeable as follows:
D = R × ( 100% E ) + E × C
Page 5
Duties Amendment (First Home Plus One) Bill 2007
Schedule 1 Amendment of Duties Act 1997
where:
D is the duty chargeable.
R is the duty that would be chargeable on the dutiable value of the
property if this Subdivision did not apply in respect of the
agreement or transfer.
E is the ownership share in the property of the first home owner
or owners, expressed as a percentage.
C is the duty (if any) that would be chargeable under section 80
on the agreement or transfer if that section applied in respect of
the agreement or transfer.
(4) Despite anything to the contrary in this section, an agreement or
transfer under which one or more of the purchasers or transferees
is a company is not eligible under the scheme for a shared equity
concession if the Chief Commissioner is satisfied that the
application relating to that agreement or transfer should not be
approved for any good reason.
(5) To avoid doubt, a reference in this Subdivision (except section
80) to an application that has been approved under the scheme
includes an application that has been approved under the scheme
because of eligibility for a shared equity concession.
[15] Section 80A Definitions
Insert in alphabetical order:
first home owner has the meaning given by section 71.
shared equity concession has the meaning given by section
80AA.
[16] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Duties Amendment (First Home Plus One) Act 2007
Page 6
Duties Amendment (First Home Plus One) Bill 2007
Amendment of Duties Act 1997 Schedule 1
[17] Schedule 1, Part 26
Insert after Part 25:
Part 26 Provisions consequent on enactment of
Duties Amendment (First Home Plus One)
Act 2007
64 Application of shared equity concession
(1) The First Home Plus amendments apply in respect of the
following:
(a) agreements for sale or transfer entered into on or after 1
May 2007,
(b) transfers that occur on or after 1 May 2007 (except where
made in conformity with an agreement for sale or transfer
entered into before 1 May 2007),
(c) mortgages over land the subject of those agreements or
transfers.
(2) Accordingly, a shared equity concession under Subdivision 1 of
Division 1 of Part 8 of Chapter 2 applies only in respect of the
agreements, transfers and mortgages referred to in subclause (1),
despite section 70.
(3) Anything done or omitted to be done on or after 1 May 2007 and
before the date of assent to the Duties Amendment (First Home
Plus One) Act 2007 that would have been validly done or omitted
if the First Home Plus amendments had been in force at the time
that it was done or omitted is taken to have been validly done or
omitted.
(4) For the purposes of this clause, the First Home Plus
amendments means the amendments made to Subdivision 1 of
Division 1 of Part 8 of Chapter 2 by the Duties Amendment (First
Home Plus One) Act 2007.
Page 7
Duties Amendment (First Home Plus One) Bill 2007
Schedule 2 Amendment of Land Tax Management Act 1956
Schedule 2 Amendment of Land Tax Management
Act 1956
(Section 4)
[1] Schedule 1A Principal place of residence exemption
Insert after clause 10:
10A Concession for first home owners who purchase under shared
equity arrangements
(1) The principal place of residence exemption extends to land used
and occupied as the principal place of residence of a natural
person who owns the land, even if the land is jointly owned by a
disqualified person, if:
(a) the agreement or transfer under which the land was
acquired by the natural person was eligible under the First
Home Plus scheme for a shared equity concession, and
(b) an application in respect of the agreement or transfer under
the First Home Plus scheme is approved by the Chief
Commissioner.
(2) For the purposes of this clause, a disqualified person means:
(a) a company, other than a trustee company acting in its
representative capacity or a company acting in its capacity
as trustee of a concessional trust, or
(b) a person who is a trustee acting in the person's capacity as
trustee of a special trust.
Note. Under clause 11, the principal place of residence exemption
cannot be claimed in respect of land that is jointly owned by a
disqualified person except in specified circumstances. This clause
provides for a further exception to that general principle.
(3) However, the principal place of residence exemption does not
extend to a disqualified person or to the interest of a disqualified
person in the land, and clause 2 (3) does not apply to the
disqualified person.
(4) Accordingly, a disqualified person who jointly owns the land is
liable to be assessed for taxation under this Act in respect of the
land, as provided for by section 27, exclusive of the interest of
any joint owner who is exempt from taxation under the principal
place of residence exemption or under clause 2 (3).
Page 8
Duties Amendment (First Home Plus One) Bill 2007
Amendment of Land Tax Management Act 1956 Schedule 2
(5) This clause ceases to apply in respect of land, and is taken never
to have applied, if the Chief Commissioner revokes his or her
approval under the First Home Plus scheme of the application in
respect of the agreement or transfer concerned.
(6) This clause applies despite clause 11.
(7) In this clause:
First Home Plus scheme means the provisions of Subdivision 1
of Division 1 of Part 8 of Chapter 2 of the Duties Act 1997.
[2] Schedule 2 Savings and transitional provisions
Insert at the end of clause 1A (1):
Duties Amendment (First Home Plus One) Act 2007 (to the extent
that it amends this Act)
[3] Schedule 2, Part 21
Insert after Part 20:
Part 21 Provisions consequent on enactment of
Duties Amendment (First Home Plus One)
Act 2007
44 Application of concession for shared equity arrangements
The amendments made to this Act by the Duties Amendment
(First Home Plus One) Act 2007 apply in respect of a land tax
year commencing on or after 1 January 2008 and do not affect
any liability for land tax in respect of a land tax year commencing
before that date.
Page 9
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