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This is a Bill, not an Act. For current law, see the Acts databases.
State Revenue Legislation Amendment
(Budget Measures) Bill 2005
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Acts 2
Schedule 1 Amendment of Duties Act 1997 No 123 3
Schedule 2 Amendment of Land Tax Act 1956 No 27 10
Schedule 3 Amendment of Land Tax Management Act 1956 No 26 12
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, , 2005
New South Wales
State Revenue Legislation Amendment
(Budget Measures) Bill 2005
Act No , 2005
An Act to make miscellaneous amendments to certain State revenue legislation; 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 State Revenue Legislation Amendment (Budget Measures) Bill 2005
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the State Revenue Legislation Amendment (Budget
Measures) Act 2005.
2 Commencement
(1) This Act commences on the date of assent, except as provided by
subsection (2).
(2) Schedule 1 [4][8] commence, or are taken to have commenced, on
1 August 2005.
3 Amendment of Acts
The Acts specified in the Schedules are amended as set out in those
Schedules.
Page 2
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Duties Act 1997 No 123 Schedule 1
Schedule 1 Amendment of Duties Act 1997 No 123
(Section 3)
[1] Section 162M What is the vendor acquisition date?
Insert ", subject to this section" after "under Chapter 2" in section 162M (3).
[2] Section 162M (6) and (7)
Insert after section 162M (5):
(6) If the land-related property the subject of a vendor duty
transaction is held by the vendor subject to a trust and the vendor
acquired the property by means of a dutiable transaction that was
not chargeable with ad valorem duty:
(a) the vendor acquisition date is taken to be the most recent
date (before that dutiable transaction occurred) on which
another dutiable transaction occurred, being a dutiable
transaction that was chargeable with ad valorem duty
under Chapter 2 as a transfer of the land-related property
(an ad valorem duty transaction), and
(b) the vendor is taken, for the purposes of this Division, to
have acquired the land-related property on that date.
(7) In a case referred to in subsection (6), if no ad valorem duty
transaction has occurred, sections 162I162K do not apply to the
vendor duty transaction.
Note. If land-related property is the subject of a trust and a new trustee
is appointed, the acquisition of the legal interest by the trustee is
generally not chargeable with ad valorem duty under Chapter 2. Under
subsection (6), the vendor acquisition date is taken to be the most recent
date on which another dutiable transaction occurred that was
chargeable with ad valorem duty under Chapter 2, not the date on which
any new trustee acquired the legal interest to the property. Note that a
declaration of trust over land-related property is chargeable with duty as
if it were a transfer of the property under Chapter 2.
[3] Section 163ZL What is the disposer acquisition date?
Insert after section 163ZL (2):
(3) For the purposes of subsection (1) (a), if the interest being
disposed of by the person was acquired by the person subject to
a trust, a reference to the person making the relevant disposal is
taken to be a reference to the beneficial owner or owners of that
interest.
Page 3
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 1 Amendment of Duties Act 1997 No 123
(4) For the purposes of subsection (1) (b), if a linked entity (within
the meaning of section 163T) of a landholder acquires a land
holding, the landholder is taken to have acquired the land
holding.
[4] Section 220 Refinancing of loans
Insert in alphabetical order in section 220 (1):
land used for aquaculture means land subject to an aquaculture
permit (within the meaning of the Fisheries Management Act
1994).
[5] Section 220 (3)(3B)
Omit section 220 (3). Insert instead:
(3) A refinancing mortgage is taken to have been stamped with ad
valorem duty as a mortgage in respect of the duty-free
refinancing amount, except as provided by subsection (5).
(3A) For the purposes of this section, the duty-free refinancing
amount is the lesser of the following amounts:
(a) the maximum amount payable under or secured by the
earlier mortgage (being an amount in relation to which
mortgage duty has been paid or in relation to which an
exemption from duty has been obtained),
(b) $1,000,000.
(3B) However, if the refinancing mortgage is over land used for
primary production or land used for aquaculture, the duty-free
refinancing amount is the maximum amount payable under or
secured by the earlier mortgage (being an amount in relation to
which mortgage duty has been paid or in relation to which an
exemption from duty has been obtained).
Note. "Land used for primary production" is defined in the Dictionary.
[6] Section 220 (5)
Omit "maximum amount secured by the earlier mortgage".
Insert instead "duty-free refinancing amount".
[7] Section 220 (8) (a)
Omit "maximum amount secured by the earlier mortgage".
Insert instead "duty-free refinancing amount".
Page 4
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Duties Act 1997 No 123 Schedule 1
[8] Section 227A
Insert after section 227:
227A Transfer of mortgages
(1) If a mortgage is transferred (whether or not at the request or
direction of any party) to:
(a) a person who, either in connection with the transfer or at a
later time, makes an advance or further advance under or
secured by the mortgage, or
(b) a person who is a party to arrangements (referred to in
section 215) relating to such an advance or further
advance,
the transferred mortgage is taken, for the purpose of determining
its liability to duty under this Act, to be a new mortgage on which
no duty has been paid and is liable to duty in respect of the
advance or further advance accordingly.
(2) The date of first execution of the transferred mortgage is taken to
be:
(a) in the case of a mortgage where the advance or further
advance was made in connection with the transfer--the
date of first execution of the transfer, and
(b) in the case of a mortgage where the advance or further
advance was made at a later time--the date of the first such
advance or further advance.
(3) If an insufficient amount of duty has been paid on a mortgage to
which this section applies before it is taken by this section to be
a new mortgage, the Chief Commissioner is not prevented from
recovering at any time the amount of duty with which, in the
Chief Commissioner's opinion, the mortgage was properly
chargeable from the mortgagor or person bound.
(4) This section does not apply to a mortgage referred to in section
220 (3B).
(5) This Chapter applies to a mortgage referred to in subsection (1)
in the same way as it applies to any other mortgage, except as
provided by subsection (6).
(6) For the purposes of section 218B (1), a transferred mortgage is
not considered to have been duly stamped in respect of any duty
paid before the transfer on advances made before the transfer.
Page 5
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 1 Amendment of Duties Act 1997 No 123
[9] Section 233 Types of general insurance
Omit section 233 (1) and (2). Insert instead:
(1) For the purpose of charging duty, general insurance is divided
into 3 types, Type A insurance, Type B insurance and Type C
insurance.
(2) Type A insurance is general insurance other than Type B
insurance or Type C insurance.
(2A) Type B insurance is:
(a) motor vehicle insurance, being insurance covering any one
or more of the following:
(i) the loss (including the loss by theft) of a motor
vehicle,
(ii) damage to a motor vehicle,
(iii) loss of or damage to property by a motor vehicle,
being a motor vehicle within the meaning of the Motor
Accidents Compensation Act 1999, or
(b) aviation insurance, being insurance covering any one or
more of the following:
(i) the loss (including the loss by theft) of an aircraft,
(ii) damage to aircraft,
(iii) the death of or injury to a person by an aircraft or a
thing falling from an aircraft,
(iv) the loss of or damage to property by an aircraft or a
thing falling from an aircraft, or
(c) disability income insurance, being insurance effected by a
contract of insurance under which an amount is payable in
the event of disablement of the insured by accident or
sickness, or
(d) occupational indemnity insurance, being insurance
covering liability arising out of the provision by a person
of professional services or other services, or
(e) hospital and ancillary health benefits insurance, being
insurance covering liability incurred in respect of fees or
charges for hospital treatment, or for health care ancillary
to hospital treatment, if the liability is not covered by an
organisation registered under Part VI of the National
Health Act 1953 of the Commonwealth.
Page 6
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Duties Act 1997 No 123 Schedule 1
[10] Section 233 (3)
Omit "Type B insurance". Insert instead "Type C insurance".
[11] Section 234
Omit the section. Insert instead:
234 What duty is payable?
(1) The amount of duty chargeable on the premium paid in relation
to a contract of insurance is 9% of the amount of the premium to
the extent to which the premium is paid to effect Type A
insurance.
(2) The amount of duty chargeable on the premium paid in relation
to a contract of insurance is 5% of the amount of the premium to
the extent to which the premium is paid to effect Type B
insurance.
(3) The amount of duty chargeable on the premium paid in relation
to a contract of insurance is 2.5% of the amount of the premium
to the extent to which the premium is paid to effect Type C
insurance.
[12] Section 253 Monthly returns and payment of duty
Insert after section 253 (a) (ii):
(iii) the total amount of all premiums for Type C insurance paid
to the registered insurer in the preceding month, and
[13] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Amendment (Budget Measures) Act
2005
[14] Schedule 1
Insert at the end of the Schedule (with appropriate Part and clause numbers):
Part Provisions consequent on enactment of
State Revenue Legislation Amendment
(Budget Measures) Act 2005
Changes to vendor duty and land rich disposal concessions
(1) The amendments made by the State Revenue Legislation
Amendment (Budget Measures) Act 2005 to sections 162M and
Page 7
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 1 Amendment of Duties Act 1997 No 123
163ZL are taken to have effect as if they had commenced on the
date on which the Bill for the State Revenue Legislation
Amendment (Budget Measures) Act 2005 was introduced in the
Legislative Assembly (the effective date).
(2) Accordingly, section 162M (6) applies in respect of any vendor
duty transaction that occurs on or after the effective date and
section 163ZL (3) and (4) apply in respect of any relevant
disposal that is made on or after the effective date.
(3) If a vendor duty transaction or relevant disposal that occurred or
was made before the date of assent to the State Revenue
Legislation Amendment (Budget Measures) Act 2005 becomes
chargeable with duty or additional duty as a result of the
amendments made by that Act to sections 162M and 163ZL, the
vendor duty transaction or relevant disposal is taken (if the duty
or additional duty has not already been paid) to become
chargeable with that duty or additional duty on the date of assent
to that Act.
(4) In section 162M, as amended by the State Revenue Legislation
Amendment (Budget Measures) Act 2005:
(a) a reference to an ad valorem duty transaction includes an
ad valorem duty transaction that occurred before the
effective date, and
(b) a reference to Chapter 2 of this Act includes a reference to
any corresponding provisions of the Stamp Duties Act
1920 that have been repealed.
Mortgage duty--refinancing
(1) The amendments made to section 220 by the State Revenue
Legislation Amendment (Budget Measures) Act 2005 apply to
any refinancing mortgage (within the meaning of section 220)
that is first executed on or after 1 August 2005, regardless of
when the earlier mortgage that is discharged or to be discharged
as part of the arrangements relating to the refinancing mortgage
was first executed.
(2) Section 227A, as inserted by the State Revenue Legislation
Amendment (Budget Measures) Act 2005, applies to any
mortgage transferred on or after 1 August 2005, regardless of
when it was first executed.
Insurance duty
(1) The amendments made to Chapter 8 by the State Revenue
Legislation Amendment (Budget Measures) Act 2005 have effect
Page 8
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Duties Act 1997 No 123 Schedule 1
only in relation to premiums paid on or after the date of assent to
that Act for contracts of insurance and renewals of contracts of
insurance that take effect on or after 1 September 2005.
(2) Despite section 253, the Chief Commissioner may, having regard
to the amendments made to Chapter 8 by the State Revenue
Legislation Amendment (Budget Measures) Act 2005, determine
the categories of premiums to be shown in a form of a return
required to be lodged under that section on or before 21 August
2005 or a subsequent month.
Page 9
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 2 Amendment of Land Tax Act 1956 No 27
Schedule 2 Amendment of Land Tax Act 1956 No 27
(Section 3)
[1] Section 2A
Omit the section. Insert instead:
2A Definition
In this Act:
tax threshold means:
(a) in relation to a land tax year before the 2005 land tax
year--the tax threshold determined in accordance with
section 62TB of the Principal Act, and
(b) in relation to the 2006 land tax year or any subsequent land
tax year--the tax threshold determined in accordance with
section 62TBA of the Principal Act.
[2] Section 3AI Levy of land tax after 31 December 2004 and before 31
December 2005
Omit "on 31 December in any year (commencing with 2004)" wherever
occurring in section 3AI (1) and (2).
Insert instead "on 31 December 2004".
[3] Section 3AJ
Insert after section 3AI:
3AJ Levy of land tax after 31 December 2005
(1) Except as provided by subsection (2), in respect of the taxable
value of all the land owned by any person at midnight on 31
December in any year (commencing with 2005) there is to be
charged, levied, collected and paid under the provisions of the
Principal Act and in the manner prescribed under that Act, land
tax for the period of 12 months commencing on 1 January in the
next succeeding year and at the rates set out in Schedule 11.
(2) In respect of the taxable value of all the land owned by a person
at midnight on 31 December in any year (commencing with
2005) where:
(a) the owner is a company classified under section 29 of the
Principal Act as a non-concessional company, or
(b) the land is subject to a special trust,
Page 10
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Land Tax Act 1956 No 27 Schedule 2
land tax for the period of 12 months commencing on 1 January in
the next succeeding year is, except as provided by section 27
(2A) of the Principal Act, to be charged, levied, collected and
paid as referred to in subsection (1) at the rate of 1.7 cents for
each $1 of the taxable value.
(3) If the total amount of land tax payable pursuant to this section by
any person in any year would, but for this subsection, be less than
$100, no land tax is payable.
[4] Schedule 11
Insert after Schedule 10:
Schedule 11
(Section 3AJ)
Where the taxable value assessed Rates of land tax payable
under the Principal Act
is not more than the tax threshold nil
is more than the tax threshold $100 plus 1.7c for each $1 in excess of the
tax threshold
Page 11
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
Schedule 3 Amendment of Land Tax Management
Act 1956 No 26
(Section 3)
[1] Part 7, Division 4A, note
Insert after the heading to Division 4A of Part 7:
Note. Sections 62TA and 62TB provide for the determination of the tax
threshold for the land tax years from 1998 to 2004. In 2004, the tax
threshold was abolished, with effect from the 2005 land tax year.
Accordingly, there is no tax threshold for the 2005 land tax year. The tax
threshold was then re-introduced, with effect from the 2006 land tax
year. Sections 62TBA and 62TBB provide for the determination of the
tax threshold for the 2006 land tax year and subsequent land tax years.
[2] Section 62T Abolition of tax threshold from 2005 land tax year
Omit the section.
[3] Section 62TA Determination of change in NSW property values--
pre-2004
Insert "before 2004" after "in each year" wherever occurring in section 62TA
(1) and (3).
[4] Section 62TA (2)
Omit the subsection.
[5] Section 62TB Tax threshold--pre-2005 land tax year
Insert "and before the 2005 land tax year" after "subsequent to the 1998 land
tax year" in section 62TB (2).
[6] Section 62TB (5)
Insert "before 2004" after "in each year".
[7] Sections 62TBA and 62TBB
Insert after section 62TB:
62TBA Tax threshold--2006 land tax year and subsequent years
(1) The tax threshold for the 2006 land tax year is $330,000.
Page 12
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Amendment of Land Tax Management Act 1956 No 26 Schedule 3
(2) The tax threshold for a land tax year subsequent to the 2006 land
tax year is to be determined in accordance with the following
formula:
T × ( 100% + I )
where:
T is the tax threshold for the previous land tax year.
I is the indexation factor for the land tax year, determined in
accordance with section 62TBB.
(3) A tax threshold determined in accordance with this section is to
be rounded off to the nearest $1,000.
(4) On or before 15 October in each year (commencing with 2006),
the Valuer-General is to publish in the Gazette the tax threshold
applicable to the following land tax year, as determined in
accordance with this section.
62TBB Determination of indexation factor
(1) During the month of September in each year (commencing with
2006), the Valuer-General is to determine:
(a) the average land values of land within residential,
commercial, business and industrial zones in New South
Wales at 1 July in that year, and
(b) the percentage by which those average land values have
changed between 1 July in the year preceding the
determination and 1 July in the year in which the
determination is made (the percentage change in land
values).
(2) For the purpose of determining the tax threshold for a land tax
year subsequent to the 2006 land tax year, the indexation factor
is:
(a) the percentage change in land values determined by the
Valuer-General in the year preceding the land tax year, or
(b) if the Valuer-General determines in the year preceding the
land tax year that the average land values of land within
residential, commercial, business and industrial zones in
New South Wales at 1 July in that year are less than the
average land values of land within residential, commercial,
business and industrial zones in New South Wales at 1 July
in any previous year (excluding any year before 2005)--
zero.
Page 13
State Revenue Legislation Amendment (Budget Measures) Bill 2005
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
(3) On or before 15 October in each year (commencing with 2006),
the Valuer-General is to publish in the Gazette the percentage
change in land values, and the indexation factor applicable to the
following land tax year, as determined in accordance with this
section.
[8] Section 62TC Definitions
Insert at the end of the section:
(2) For the purposes of this Division, land is within a residential,
commercial, business or industrial zone if it is zoned or
otherwise designated for use under an environmental planning
instrument (within the meaning of the Environmental Planning
and Assessment Act 1979) for, or principally for, residential,
commercial, business or industrial purposes, or for some or all of
those purposes.
[9] Schedule 2 Savings and transitional provisions
Insert at the end of clause 1A (1):
State Revenue Legislation Amendment (Budget Measures) Act
2005
Page 14
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