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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Duties Amendment (Abolition of State
Taxes) Bill 2006
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Duties Act 1997 No 123 2
4 Repeal of Act 2
Schedule 1 Amendments 3
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, , 2006
New South Wales
Duties Amendment (Abolition of State
Taxes) Bill 2006
Act No , 2006
An Act to amend the Duties Act 1997 for the purpose of abolishing and reducing
certain State taxes, and to provide for transitional matters; and for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 Duties Amendment (Abolition of State Taxes) Bill 2006
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Duties Amendment (Abolition of State Taxes) Act 2006.
2 Commencement
(1) This Act commences, or is taken to have commenced, on 1 July 2006,
except as provided by subsections (2) and (3).
(2) Schedule 1 [23] commences on 1 July 2007.
(3) If the State Revenue Legislation Amendment Act 2006 is not assented to
before 1 July 2006, Schedule 1 [41] commences, or is taken to have
commenced, on the date of assent to that Act.
3 Amendment of Duties Act 1997 No 123
The Duties Act 1997 is amended as set out in Schedule 1.
4 Repeal of Act
(1) This Act is repealed on the day following the day on which all of the
provisions of this Act have commenced.
(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 (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
Schedule 1 Amendments
(Section 3)
[1] Section 8 Imposition of duty on certain transactions concerning dutiable
property
Insert after section 8 (1) (b) (vii):
(viii) a lease in respect of which a premium is paid or agreed to
be paid.
[2] Section 8 (3)
Insert in alphabetical order:
lease means a lease of land in New South Wales or an agreement
for a lease of land in New South Wales.
premium, in respect of a lease entered into pursuant to an option,
includes an amount paid or payable for the grant of the option.
[3] Section 9 Imposition of duty on dutiable transactions that are not
transfers
Insert at the end of the Table to the section, in Columns 1, 2, 3 and 4
respectively:
lease the leased the lessee when the lease is
property entered into
[4] Section 11 What is "dutiable property"?
Insert at the end of the section:
Note. Part 4 of this Chapter provides for the abolition, in stages, of duty
on some of the types of dutiable property listed above.
The duty imposed on dutiable transactions involving shares and units
referred to in section 11 (1) (d) and (e) is abolished on 1 January 2009.
Marketable securities cease to be dutiable property on that date.
The duty imposed on dutiable transactions involving business assets
referred to in section 11 (1) (g), statutory licences or permissions
referred to in section 11 (1) (h) and poker machine entitlements referred
to in section 11 (1) (h1) is abolished on 1 July 2012. Those things cease
to be dutiable property on that date.
[5] Section 21 What is the "dutiable value" of dutiable property?
Insert after section 21 (4):
(5) The dutiable value of leased property transferred by way of a
lease is taken to be the amount of the premium paid or payable in
respect of the lease.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
[6] Section 26 Certain transactions concerning goods and other property
Insert after section 26 (2):
(3) This section applies only to dutiable transactions that occur
before 1 July 2012.
Note. On 1 July 2012, duty on the transfer of business assets is
abolished (see Part 4 of this Chapter). Section 26A applies in respect of
transfers occurring after that date that remain dutiable transactions.
[7] Section 26A
Insert after section 26:
26A Transactions involving goods and other property that occur on or
after 1 July 2012
(1) If a dutiable transaction involves goods and other dutiable
property, the Chief Commissioner may disregard the value of the
goods in the transaction if satisfied that the dutiable value of the
other property does not exceed 10% of the dutiable value of all
the dutiable property in the transaction.
(2) This section applies only to dutiable transactions that occur on or
after 1 July 2012.
[8] Section 28 Apportionment--business assets in this and other
jurisdictions
Insert after section 28 (5):
(6) This section applies only to dutiable transactions that occur
before 1 July 2012.
Note. On 1 July 2012, duty on the transfer of business assets is
abolished (see Part 4 of this Chapter).
[9] Chapter 2, Part 4
Insert after Part 3:
Part 4 Abolition of various duties
34 Abolition of duty on all transfers of marketable securities--
effective 1 January 2009
(1) On and from 1 January 2009, marketable securities are not
dutiable property (despite section 11).
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Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
(2) Subsection (1) does not apply in respect of any transfer or
transaction with respect to marketable securities that occurs
before 1 January 2009 and, accordingly, does not affect any
requirement to pay duty under this Chapter in respect of the
transfer or transaction.
35 Abolition of duty on transfers of business assets--effective 1 July
2012
(1) On and from 1 July 2012, a business asset referred to in section
11 (1) (g) is not dutiable property (despite section 11).
(2) Subsection (1) does not apply in respect of any transfer or
transaction with respect to business assets that occurs before
1 July 2012 and, accordingly, does not affect any requirement to
pay duty under this Chapter in respect of the transfer or
transaction.
36 Abolition of duty on transfers of licences, permissions and
entitlements--effective 1 July 2012
(1) On and from 1 July 2012, a statutory licence or permission
referred to in section 11 (1) (h), or a poker machine entitlement
referred to in section 11 (1) (h1), is not dutiable property (despite
section 11).
(2) Subsection (1) does not apply in respect of any transfer or
transaction with respect to statutory licences or permissions, or
poker machine entitlements, that occurs before 1 July 2012 and,
accordingly, does not affect any requirement to pay duty under
this Chapter in respect of the transfer or transaction.
37 Anti-avoidance measures
Sections 35 and 36 do not apply in respect of a transfer or
transaction with respect to a business asset referred to in section
11 (1) (g), a statutory licence or permission referred to in section
11 (1) (h), or a poker machine entitlement referred to in section
11 (1) (h1), that occurs on or after 1 July 2012 if:
(a) the transfer or transaction replaces a transfer or transaction
involving the same business asset, statutory licence or
permission, or poker machine entitlement that occurred
before 1 July 2012, or
(b) the transfer or transaction is made or entered into pursuant
to an option to purchase the business asset, statutory
licence or permission, or poker machine entitlement that
was granted before 1 July 2012, or
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Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
(c) the transfer or transaction was made or entered into
pursuant to another arrangement, made before 1 July 2012,
the only or main purpose of which was to defer the transfer
or transaction until 1 July 2012, or later, so that duty would
not be chargeable under this Chapter on the transfer or
transaction.
[10] Section 53A
Insert after section 53:
53A Duty on lease premiums
In the case of property transferred by way of a lease for which a
premium is paid or payable, duty is not chargeable under this
Chapter on:
(a) so much of the premium of a residential lease as relates to
premises used, or intended to be used, exclusively as a
residence, or
(b) so much of the premium of a lease as relates to a moveable
dwelling site used, or intended to be used, as the principal
place of residence of the lessee.
[11] Section 65 Exemptions from duty
Insert after section 65 (6):
Note. Duty on the transfer of statutory licences is abolished on 1 July
2012. This exemption is relevant only to a transfer or vesting that occurs
before that date. See Part 4 of this Chapter.
[12] Section 65 (7), note
Insert after section 65 (7):
Note. Duty on the transfer of statutory licences, permissions and poker
machine entitlements is abolished on 1 July 2012. This exemption is
relevant only to a transfer or vesting that occurs before that date. See
Part 4 of this Chapter.
[13] Section 65 (16)
Insert after section 65 (15):
(16) Leases--general
No duty is chargeable under this Chapter on the following leases:
(a) a lease granted by or on behalf of a corporation, society or
institution if:
Page 6
Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
(i) the purpose of the lease is to grant a retired person
or a disabled person the right to occupy residential
accommodation, and
(ii) the lease has not been granted for the purpose of
profit by the lessor,
(b) a lease of premises to the Home Care Service of New
South Wales,
(c) a lease executed in accordance with Part V of the National
Health Act 1953 of the Commonwealth,
(d) a lease of premises in a retirement village within the
meaning of section 5 of the Retirement Villages Act 1999.
[14] Section 66 Exemptions--marketable securities
Insert at the end of the note to the section:
The duty on all marketable securities is to be abolished on 1 January
2009. See Part 4 of this Chapter.
[15] Section 124
Insert in Part 3 of Chapter 3, before section 125:
124 Abolition of duty charged by this Part--effective 1 January 2009
(1) The duty charged by this Part is abolished on and from 1 January
2009.
(2) The duty charged by this Part remains chargeable on a dutiable
entitlement that is acquired before 1 January 2009.
[16] Section 137A
Insert in Part 5 of Chapter 3, before section 138:
137A Abolition of duty charged by this Part--effective 1 January 2009
(1) The duty charged by this Part is abolished on and from 1 January
2009.
(2) The duty charged by this Part remains chargeable on an allotment
of shares referred to in section 138 that occurs before 1 January
2009.
[17] Section 164 Imposition of duty
Insert at the end of the section (before the note):
(2) The duty charged by this Chapter is abolished on and from
1 January 2008. This Chapter does not apply in respect of a lease
first executed on or after 1 January 2008.
Page 7
Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
[18] Section 164A What is a "lease"?
Omit "Lease". Insert instead "For the purposes of this Chapter, lease".
[19] Section 170 General rate
Omit section 170 (2).
[20] Section 177 Reassessment of duty--early termination
Omit "may apply in writing" from section 177 (1).
Insert instead "may apply in an approved form".
[21] Section 177 (5) and (6)
Insert after section 177 (4):
(5) The Chief Commissioner must not refund any duty under this
section unless satisfied that neither the lessee, nor an associated
person in relation to the lessee, has occupied the premises the
subject of the lease with the express or implied agreement of the
lessor at any time after the termination of the lease and that
neither the lessee, nor an associated person, proposes to so
occupy those premises at any time after the termination of the
lease.
(6) Subsection (5) does not apply to an occupation that is
consequential on the sale of the premises to the lessee or an
associated person.
[22] Section 179 Exemptions
Omit section 179 (5).
[23] Chapter 6 Hire of goods
Omit the Chapter.
[24] Chapter 6, note
Insert after the heading to the Chapter:
Note. This duty will be abolished on 1 July 2007 as a consequence of
the Duties Amendment (Abolition of State Taxes) Act 2006.
[25] Section 203A
Insert in Chapter 7, before section 204:
203A Abolition of mortgage duty--effective 1 January 2011
(1) Mortgage duty is abolished on and from 1 January 2011.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
(2) However, mortgage duty remains chargeable, and this Chapter
continues to apply, in respect of the following:
(a) a mortgage first executed before 1 January 2011 (including
any advances or further advances made in respect of the
mortgage before that date),
(b) an instrument of security referred to in section 208 (3) that
first affects land in New South Wales before 1 January
2011,
(c) an instrument of security referred to in section 208 (3A)
that first affects relevant property in New South Wales
before 1 January 2011,
(d) an instrument that first becomes a mortgage or evidences
the terms of a mortgage, as referred to in section 208 (4),
before 1 January 2011.
(3) A mortgage does not become liable to the additional duty referred
to in section 208 (2) in respect of an advance or further advance
that is made on or after 1 January 2011 (even if the mortgage was
first executed before that date).
[26] Section 208 When does a liability arise?
Insert after section 208 (3):
(3A) An instrument of security that does not affect property in New
South Wales at the date of first execution but that, at any time
after execution, affects relevant property in New South Wales
identified in the instrument or identified under an arrangement in
place when the instrument was first executed, becomes liable to
duty on the date it first affects that property, unless it is duly
stamped under a corresponding Act or is exempt from duty.
[27] Section 208 (6)
Insert after section 208 (5):
(6) For the purposes of this section, relevant property means any
property, excluding land and the following kinds of property:
(a) a marketable security that is quoted on the Australian
Stock Exchange,
(b) an interest in a marketable security referred to in paragraph
(a), or an interest in a marketable security if the interest is
quoted on the Australian Stock Exchange,
Page 9
Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
(c) an interest in a unit trust scheme, being a unit trust scheme
in respect of which units in the scheme have been issued to
the public and 50 or more persons are beneficially entitled
to units in the scheme,
(d) property the Chief Commissioner is satisfied is of a similar
nature to property referred to in paragraph (a), (b) or (c).
[28] Section 210 How is mortgage duty charged?
Omit "provided by subsection (2)" from section 210 (1).
Insert instead "provided by subsections (2)(4)".
[29] Section 210 (2)
Insert ", except as provided by subsection (4)" after "of the amount secured".
[30] Section 210 (3) and (4)
Insert after section 210 (2) (before the notes to the section):
(3) If a mortgage is first executed on or after 1 January 2010, the
amount of duty chargeable on the mortgage is:
(a) $5.00, if the mortgage secures no amount or if the amount
secured by the mortgage is not more than $16,000, or
(b) if the amount secured by the mortgage is more than
$16,000--$5.00, plus a further $2.00 for every $1,000, or
part, by which the amount secured exceeds $16,000.
(4) The amount of duty chargeable on a mortgage in respect of an
advance or further advance made on or after 1 January 2010 is
calculated on the amount secured by it as determined under Part
2. The amount of duty is $2.00 for every $1,000, or part, of the
amount secured.
[31] Section 211 Consequences of non-payment of duty
Omit "section 216 or 217" from section 211 (2).
Insert instead "section 216, 217, 217A or 218BA".
Page 10
Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
[32] Sections 213 and 214
Omit section 213. Insert instead:
213 Secured limited amount
(1) If the amount of advances secured or to be secured by a mortgage
is a definite and limited sum, the amount secured by the
mortgage is, for the purposes of this Chapter, the definite and
limited sum, until such time (if any) as a greater amount of
advances is secured by the mortgage.
(2) If any advance or further advance is made so that the amount of
advances secured by the mortgage exceeds, at any time, the
definite and limited sum mentioned in subsection (1), the amount
on which duty is chargeable is, for the purposes of section 210 (2)
or (4) (as appropriate), the amount by which the advances or
further advances secured by it exceeds the amount on which duty
has been paid under this section.
(3) For the purposes of this Chapter, any increase in the definite and
limited sum referred to in subsection (1) is taken to be a further
advance for the amount of the increase.
214 "All moneys" mortgage
(1) If the amount of advances secured by a mortgage is not a definite
and limited sum, the amount secured by the mortgage is, for the
purposes of this Chapter, the amount of advances actually
secured by it.
(2) If any advance or further advance is made so that the amount of
advances for the time being secured by the mortgage
subsequently exceeds the amount of the advances for which the
mortgage has been duly stamped under this Act, the amount on
which duty is chargeable is, for the purposes of section 210 (2) or
(4) (as appropriate), the amount by which the advances or further
advances secured by it exceeds the amount on which duty has
been paid under this section.
[33] Section 216 Mortgages over property not wholly within New South Wales
Omit ", excluding property outside Australia" from the definition of T in
section 216 (2).
[34] Section 216 (7)
Insert after section 216 (6):
(7) This section is subject to the provisions of section 217A in
relation to the assessment of mortgage packages.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
[35] Section 217 Advances secured by mortgage package
Omit section 217 (2) and (3). Insert instead:
(2) Two or more instruments of security are taken to be part of a
mortgage package only if the Chief Commissioner is satisfied
that the instruments were first executed within any period of
28 days and in such a case are taken, for the purpose of assessing
duty, to be first executed on the day the last of the instruments to
be executed was executed.
[36] Section 217 (6)
Insert after section 217 (5):
(6) In the case of a further advance, a mortgage package includes an
instrument of security executed after the initial liability date for a
mortgage package that secures or partly secures the same money
as the mortgage package.
[37] Section 217A
Insert after section 217:
217A Assessment of mortgage packages where one or more
instruments secure a limited amount
(1) This section applies if a mortgage package assessed as one
mortgage under section 217 has a NSW limit, or an Australian
limit, or both.
(2) If a mortgage package assessed as one mortgage under section
217 has a NSW limit, mortgage duty is to be assessed on the
mortgage as if the amount secured by the mortgage were the
NSW proportion of all advances secured by the mortgage, or the
amount of the NSW limit, whichever is less.
(3) The NSW proportion of all advances secured by the mortgage is
to be calculated in the same manner as the dutiable proportion
under section 216, but as if "AS" in the formula were the amount
of advances secured by all instruments of security in the
mortgage package at the liability date.
(4) If a mortgage package assessed as one mortgage under section
217 has an Australian limit, mortgage duty is to be assessed on
the mortgage as if the amount secured by the mortgage were the
NSW proportion of the Australian limit.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
(5) The NSW proportion of the Australian limit is to be calculated in
the same manner as the dutiable proportion under section 216, but
as if "AS" in the formula were the amount of the Australian limit
and "T" excluded the value of all property outside Australia.
(6) For the purposes of this section, a mortgage package has a NSW
limit if the instruments of security comprising the package affect
property partly within and partly outside New South Wales and,
disregarding section 216, the amount secured by those
instruments over property wholly within New South Wales is a
definite and limited sum. In such a case, the amount of the NSW
limit is taken to be that definite and limited sum.
(7) For the purposes of this section, a mortgage package has an
Australian limit if the instruments of security comprising the
package affect property partly within Australia and partly outside
Australia, disregarding section 216, the amount secured by those
instruments over property wholly within Australia is a definite
and limited sum, and that amount is a single amount that applies
in respect of all property within Australia that is affected by the
mortgage. In such a case, the amount of the Australian limit is
taken to be that definite and limited sum.
Note. The provisions relating to mortgage packages with an Australian
limit do not apply to mortgage packages that specify separate limits in
relation to property in different States or Territories (eg $10 million for
NSW, $10 million for Victoria).
(8) A mortgage package that has a NSW limit and that does not affect
property in Australia that is outside New South Wales, but does
affect property outside Australia, is not to be treated as a
mortgage package that has an Australian limit.
[38] Section 218 Stamping before advance
Insert after section 218 (2):
(3) This section does not apply in respect of a mortgage if the amount
of advances secured by the mortgage is a definite and limited
sum.
[39] Section 218B Collateral mortgage
Insert ", subject to section 218BA," after "under this Act" wherever occurring
in section 218B (1) (a) and (b).
Page 13
Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
[40] Section 218BA
Insert after section 218B:
218BA Collateral mortgages--anti-avoidance measure
(1) Section 218B (1) does not apply if a collateral mortgage secures
the same money as is secured by a mortgage or instrument of
security, or mortgage package, stamped under a corresponding
Act and the rate of mortgage duty charged under the
corresponding Act in respect of the amount secured is a reduced
rate.
(2) For the purposes of this section, mortgage duty is charged at a
reduced rate if the rate of mortgage duty charged in respect of the
amount secured under the corresponding Act is less than the rate
that would have applied under that Act if the mortgage or
instrument had been charged with mortgage duty in respect of the
same amount secured immediately before 1 July 2006.
(3) If the rate of mortgage duty charged under the corresponding Act
in respect of the amount secured is a reduced rate, the collateral
mortgage and the stamped mortgages or instruments are to be
assessed under this Part as if they comprised a mortgage package
first executed on the day the collateral mortgage was first
executed.
(4) If, as a consequence of subsection (3), the total of the amount of
mortgage duty charged in respect of the amount secured under
this Act and the amount of mortgage duty charged in respect of
the amount secured under the corresponding Act exceeds the
maximum amount, the duty chargeable in respect of the collateral
mortgage under this Act is to be reduced by the amount necessary
to ensure that the total mortgage duty charged under this Act and
the corresponding Act does not exceed the maximum amount.
(5) For the purposes of this section, the maximum amount is the
amount of mortgage duty that would be chargeable in respect of
the amount secured by the collateral mortgage if the mortgage
were not a collateral mortgage.
(6) Despite section 217 (5), the collateral mortgage is to be stamped
with the mortgage duty paid in New South Wales, and the
instruments stamped under the corresponding Act are not
required to be stamped under this Act.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
Note. In NSW, mortgage duty is to be reduced by half on 1 January 2010
and abolished on 1 January 2011. Other States are reducing and
abolishing mortgage duty on different dates. The purpose of this section
is to prevent the use of a mortgage that is collateral to a mortgage that
has been stamped in a jurisdiction where duty has already been reduced
to avoid mortgage duty in NSW.
[41] Section 226 Payment on mortgages associated with debenture issues
Omit section 226 (3C), as substituted by the State Revenue Legislation
Amendment Act 2006.
Insert instead:
(3C) For the purposes of the application of section 213 (2) or 214 (2)
to such a mortgage (and the application of section 218B to any
collateral mortgage that secures the same money as the
mortgage), duty is taken to have been paid, and the mortgage is
taken to have been duly stamped, for the following amount or
amounts:
(a) the disclosed debenture amount,
(b) any advances or further advances made on or after the
cut-off date in respect of which duty has been paid under
this Chapter.
[42] Section 274 Transfer of certain business property between family
members
Insert after section 274 (2):
Note. Duty on the transfer of statutory licences and permissions is
abolished on 1 July 2012. This exemption is relevant only to a transfer of
shares in a share management fishery that occurs before that date. See
Part 4 of Chapter 2.
[43] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Duties Amendment (Abolition of State Taxes) Act 2006
Page 15
Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
[44] Schedule 1, Part 24
Insert after Part 23:
Part 24 Provisions consequent on the enactment
of the Duties Amendment (Abolition of
State Taxes) Act 2006
58 Abolition of duty on leases
(1) The abolition of duty on lease instruments (effective 1 January
2008) does not affect any obligation to pay duty under Chapter 5
in respect of a lease instrument executed before 1 January 2008
and that Chapter continues to apply in respect of such an
instrument.
(2) Sections 169 (2) and 178 do not apply to or in respect of a
variation of a lease instrument referred to in subclause (1) if the
variation is made on or after 1 January 2008.
(3) If any lease executed before 1 January 2008 has any
unascertainable cost components for which there is an estimate
date on or after 1 January 2008:
(a) the Chief Commissioner must, on the first of those
estimate dates to occur on or after 1 January 2008 (the
final estimate date), make a final estimate of the cost of the
lease, and
(b) the lease instrument is chargeable with duty under this Act
as if that final estimate were the full cost of the lease, and
(c) no further estimates of the cost of the lease are to be made
(despite section 173 (5)).
(4) Section 173 (6) applies only to the final estimate date or an
estimate date that occurs before the final estimate date.
(5) Section 173 (7) and (8) do not apply in respect of any period after
the final estimate date.
(6) For the purposes of this clause, estimate date means any of the
estimate dates for a lease determined under section 173 (5).
59 Duty on lease premiums
(1) The amendments to sections 8 and 9 made by the Duties
Amendment (Abolition of State Taxes) Act 2006 (relating to
leases) apply only in respect of leases that are first executed on or
after 1 July 2006.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Amendments Schedule 1
(2) Sections 170 (2) and 179 (5), as in force immediately before their
repeal by the Duties Amendment (Abolition of State Taxes) Act
2006, continue to apply in respect of lease instruments executed
before the repeal of those provisions.
60 Changes to mortgage duty provisions
(1) The mortgage duty amendments do not apply to a mortgage or
instrument of security first executed before 1 July 2006 unless an
advance or further advance is made in respect of the mortgage or
instrument on or after that date (and in such a case apply in
respect of the advance or further advance).
(2) If the amount secured by a mortgage executed before 1 July 2006
is a definite and limited sum, but the amount of advances actually
secured by the mortgage immediately before 1 July 2006 was less
than the definite and limited sum, section 214, as inserted by the
mortgage duty amendments, and not section 213, applies in
respect of any advance or further advance made after 1 July 2006
which does not result in the total amount of advances actually
secured by the mortgage exceeding that definite and limited sum.
This subclause extends to a mortgage to which section 226
applies.
(3) A reference in section 213 or 214, as inserted by the mortgage
duty amendments, to an amount on which duty has been paid
under section 213 or 214 extends to an amount on which duty has
been paid under Chapter 7 as in force immediately before 1 July
2006.
(4) Section 213 (3), as inserted by the mortgage duty amendments,
extends to a variation to a mortgage made on or after 1 July 2006
in respect of a mortgage first executed before that date.
(5) For the purposes of this clause, the mortgage duty amendments
means Schedule 1 [26], [27] and [31][41] to the Duties
Amendment (Abolition of State Taxes) Act 2006.
61 Abolition of duty on hire of goods--commercial hire businesses
(1) The repeal of Chapter 6 (effective 1 July 2007) by the Duties
Amendment (Abolition of State Taxes) Act 2006 does not affect
any obligation to pay duty under Part 2 of that Chapter in respect
of hiring charges received in any month before July 2007 and, for
that purpose, that Part is taken to continue to apply in respect of
such hiring charges.
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Duties Amendment (Abolition of State Taxes) Bill 2006
Schedule 1 Amendments
(2) In particular, section 199, as in force immediately before its
repeal by the Duties Amendment (Abolition of State Taxes) Act
2006, is taken to continue to apply to a commercial hire business,
so that, after the repeal of that section:
(a) a commercial hire business continues to be required to
lodge a return in accordance with that section (but only in
respect of the months before July 2007), and
(b) a commercial hire business may request a reassessment of
duty under section 199 (6).
62 Abolition of duty on hire of goods--other persons
(1) The repeal of Chapter 6 (effective 1 July 2007) by the Duties
Amendment (Abolition of State Taxes) Act 2006 does not affect
any obligation to pay duty under Part 3 of that Chapter in respect
of a hire of goods entered into before 1 July 2007.
(2) For that purpose, Part 3 of that Chapter is taken to continue 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. Accordingly, if the first payment of
hiring charges is paid, or become payable, before 1 July 2007, no
refund of duty is payable in respect of any part of the hiring
charges that is paid or becomes payable on or after 1 July 2007.
(3) Subclause (2) does not prevent a reassessment of duty being
made under section 199 (6) (as in force immediately before its
repeal).
[45] Dictionary
Omit the definition of lease.
Page 18
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