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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
State Revenue Legislation Further
Amendment Bill 1999
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Accommodation Levy Act 1997 No 32 2
4 Amendment of Duties Act 1997 No 123 2
5 Amendment of Health Insurance Levies Act 1982 No 159 2
6 Amendment of Pay-roll Tax Act 1971 No 22 2
7 Amendment of Taxation Administration Act 1996 No 97 2
Schedules
1 Amendment of Accommodation Levy Act 1997 3
2 Amendment of Duties Act 1997 5
3 Amendment of Health Insurance Levies Act 1982 11
4 Amendment of Pay-roll Tax Act 1971 14
5 Amendment of Taxation Administration Act 1996 20
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, , 1999
New South Wales
State Revenue Legislation Further
Amendment Bill 1999
Act No , 1999
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 Further Amendment Bill 1999
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the State Revenue Legislation Further Amendment Act
1999.
2 Commencement
(1) This Act commences or is taken to have commenced on 1 January
2000, except as provided by this section.
(2) The following provisions commence or are taken to have commenced
on the dates indicated:
Schedule 2 [6] on 23 June 1999
Schedule 2 [10] on the date of assent
Schedule 2 [11] on 1 July 1998
Schedule 2 [12] on 1 July 1999
Schedule 3 [1] on 1 July 1997
Schedule 3 [2], [3], [4] and [5] on 1 February 2000
Schedule 4 [1], [6], [7] and [8] on the date of assent.
3 Amendment of Accommodation Levy Act 1997 No 32
The Accommodation Levy Act 1997 is amended as set out in
Schedule 1.
4 Amendment of Duties Act 1997 No 123
The Duties Act 1997 is amended as set out in Schedule 2.
5 Amendment of Health Insurance Levies Act 1982 No 159
The Health Insurance Levies Act 1982 is amended as set out in
Schedule 3.
6 Amendment of Pay-roll Tax Act 1971 No 22
The Pay-roll Tax Act 1971 is amended as set out in Schedule 4.
7 Amendment of Taxation Administration Act 1996 No 97
The Taxation Administration Act 1996 is amended as set out in
Schedule 5.
Page 2
State Revenue Legislation Further Amendment Bill 1999
Amendment of Accommodation Levy Act 1997 Schedule 1
Schedule 1 Amendment of Accommodation Levy Act
1997
(Section 3)
[1] Part 1A
Insert after Part 1:
Part 1A Abolition of accommodation levy on 1 July
2000
5A No levy on accommodation provided on or after 1 July 2000
(1) This Act does not apply in respect of residential
accommodation provided for use or occupation on or after
1 July 2000.
(2) Accordingly, no levy is charged by this Act for residential
accommodation provided for use or occupation on or after that
date.
(3) This section does not affect any liability to pay a levy charged
by this Act for residential accommodation provided for use or
occupation before 1 July 2000.
(4) For the purposes of this Act, accommodation provided for
overnight use on 30 June 1999 is taken to have been provided
before 1 July 2000.
5B Final return
Despite section 14:
(a) June 2000 is a return period for the purposes of that
section, and
(b) the return date for the return period of June 2000 is
15 July 2000, and
(c) a return is not required to be lodged with the Chief
Commissioner for any period commencing on or after
1 July 2000.
Page 3
State Revenue Legislation Further Amendment Bill 1999
Schedule 1 Amendment of Accommodation Levy Act 1997
5C Transitional
For the purposes of this Act, any amount paid or payable after
30 June 2000 for residential accommodation provided for use
or occupation before 1 July 2000 is taken to have been paid in
June 2000. Accordingly, any such amount is to be included in
the calculation of the levy for the period of June 2000.
[2] Section 20
Omit the section. Insert instead:
20 Act ceases to have effect on 1 September 2003
(1) This Act ceases to have effect on 1 September 2003.
(2) This section does not affect any liability that arises, before
1 September 2003:
(a) to pay an accommodation levy required to be paid
under this Act, or
(b) to lodge a return with the Chief Commissioner.
Page 4
State Revenue Legislation Further Amendment Bill 1999
Amendment of Duties Act 1997 Schedule 2
Schedule 2 Amendment of Duties Act 1997
(Section 4)
[1] Section 48A
Insert after section 48:
48A Nomineeing transactions--unlisted marketable securities
Despite section 66, duty of $10 is chargeable on a transfer of
marketable securities, being marketable securities that are not
quoted on the Australian Stock Exchange, if the transfer would
otherwise be exempt from duty under section 66 (4) (a).
[2] Section 49A
Omit the section. Insert instead:
49A Purchases "off the plan"
(1) Liability for duty on an off the plan purchase agreement arises:
(a) on completion of the agreement, or
(b) on the assignment of the whole or any part of the
purchaser's interest under the agreement, or
(c) on the expiration of 12 months after the date of the
agreement,
whichever first occurs.
(2) This section applies despite section 12.
(3) Nothing in this section prevents the Chief Commissioner from
accepting payment of duty and stamping an off the plan
purchase agreement at any time after the agreement has been
executed.
(4) In this section:
off the plan purchase agreement means an agreement for the
sale or transfer of dutiable property, being land on which a
residence is to be erected or developed before completion of
the sale or transfer.
Page 5
State Revenue Legislation Further Amendment Bill 1999
Schedule 2 Amendment of Duties Act 1997
[3] Section 56A
Insert after section 56:
56A Transfer of property subject to a statutory trust to a beneficial
owner
(1) This section applies if dutiable property that is vested in a
person as trustee of a statutory trust as a consequence of the
making of an order under section 66G of the Conveyancing Act
1919 is transferred or agreed to be transferred by the trustee to
one or more of the beneficial owners of the dutiable property.
(2) The dutiable value of the dutiable property that is the subject of
the transfer or agreement is to be calculated by deducting from
the unencumbered value of the dutiable property or the
consideration for the transfer or agreement, whichever is the
greater, the proportion of that amount that is the same as the
proportion of the purchaser's beneficial interest in the dutiable
property immediately before the transfer or agreement.
[4] Section 66 Exemptions--marketable securities
Omit section 66 (4) (a), (b) and (b1). Insert instead:
(a) a transfer of marketable securities between any of the
following persons:
(i) the beneficial owner,
(ii) a trustee or nominee of the beneficial owner,
(iii) a custodian of a trustee or nominee of the
beneficial owner,
(iv) a sub-custodian of a custodian of a trustee or
nominee of the beneficial owner,
but only if:
(v) there is no change in the beneficial ownership of
the marketable securities, and
(vi) if the transferee is a person referred to in
subparagraph (ii)(iv), the transferee is to hold
the marketable securities solely for another
person referred to in subparagraph (i)(iii) and
there is no contemplation of the marketable
securities being held for any other person, and
Page 6
State Revenue Legislation Further Amendment Bill 1999
Amendment of Duties Act 1997 Schedule 2
(vii) if the transferor is a person referred to in
subparagraph (ii)(iv), the marketable securities
were held by the person solely for another
person referred to in subparagraph (i)(iii) and,
since the time when the marketable securities
were first transferred or issued to the transferor,
no person has held the marketable securities
other than solely for a person referred to in
subparagraph (i)(iii), or
Note. Duty of $10 is chargeable if the marketable securities are
not quoted on the Australian Stock Exchange (see section 48A).
[5] Section 66 (4) (c)
Omit the paragraph. Insert instead:
(c) without limiting paragraph (a), a transfer of marketable
securities to or from:
(i) SECH Nominees Pty Limited, or
(ii) CHESS Depositary Nominees Pty Limited, or
(iii) a nominee company that holds marketable
securities solely for the purpose of facilitating
marketable security transaction settlements by a
SCH participant,
but only if the transfer is made solely for the purpose of
facilitating a marketable security transaction settlement,
and there is no change in the beneficial ownership of the
marketable securities (except as a result of an on-market
transaction settlement), or
[6] Section 87 Discount for full payment of remaining duty
Omit section 87 (1). Insert instead:
(1) A person or persons to whom this Subdivision applies may
choose at any time to pay out, at a discount of 50%, the total of
all instalments of duty remaining at that time.
[7] Section 226 Payment of duty on mortgages associated with debenture
issues
Insert "binds the corporation" after "30 days) and" in section 226 (3).
Page 7
State Revenue Legislation Further Amendment Bill 1999
Schedule 2 Amendment of Duties Act 1997
[8] Section 270 Exemptions for motor dealers
Omit section 270 (2)(5). Insert instead:
(2) Demonstrator motor vehicles--new motor vehicles
The Chief Commissioner may approve arrangements for the
issue to motor dealers of exemption authorities to be used in
connection with the registration of demonstrator motor vehicles
of the dealer.
(3) Duty under this Chapter is not chargeable on an application by
a motor dealer to register a motor vehicle if the motor vehicle
is a demonstrator motor vehicle and, at the time the application
for registration is made, the dealer produces an exemption
authority that has been completed by the dealer.
(4) A motor dealer must not produce an exemption authority in
connection with the registration of a motor vehicle that is not
a demonstrator motor vehicle.
Maximum penalty: 100 penalty units.
(5) If a motor dealer produces an exemption authority in
connection with the registration of a motor vehicle that is not
a demonstrator motor vehicle, the Chief Commissioner may
recover any duty that would have been chargeable on the
application for registration, together with any interest and
penalty tax payable.
[9] Section 270 (6)
Insert in alphabetical order:
exemption authority means an exemption authority issued in
accordance with arrangements approved by the Chief
Commissioner.
[10] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Further Amendment Act 1999
Page 8
State Revenue Legislation Further Amendment Bill 1999
Amendment of Duties Act 1997 Schedule 2
[11] Schedule 1
Omit "Chapter 5C" from subclause (2) (b) of clause 16 (Managed
investment schemes--novation of contracts) of Part 3 (Provisions
consequent on enactment of State Revenue Legislation Amendment Act
1999), as so numbered on the date of introduction into the Legislative
Assembly of the Bill for this Act.
Insert instead "Part 11.2".
[12] Schedule 1
Insert after clause 16 of Part 3 (Provisions consequent on enactment of State
Revenue Legislation Amendment Act 1999), as so numbered on the date of
introduction into the Legislative Assembly of the Bill for this Act, with
appropriate clause numbering:
Managed investment schemes--transactions entered into by
custodians
(1) This clause applies to a transaction entered into or an
instrument executed by a custodian of a responsible entity, or
by a custodian of a responsible entity and the responsible
entity, to replace a transaction entered into or an instrument
executed by a body holding the office of trustee or
representative and management company who has retired from
that office to enable an undertaking to become a managed
investment scheme.
(2) This clause applies only to transactions that occur and
instruments that are executed in relation to a managed
investment scheme on or after 1 July 1999 and before:
(a) 1 July 2000, or
(b) the date on which the scheme became a registered
scheme within the meaning of Division 11 of Part 11.2
of the Corporations Law,
whichever first occurs.
(3) Despite the other provisions of this Act, a transaction or
instrument to which this clause applies is chargeable with duty
in accordance with this clause.
Page 9
State Revenue Legislation Further Amendment Bill 1999
Schedule 2 Amendment of Duties Act 1997
(4) The amount of duty chargeable in respect of the transaction or
instrument is:
(a) the amount of duty that would be chargeable in respect
of the transaction or instrument but for this clause, less
the amount of duty paid (under this Act or the Stamp
Duties Act 1920) in relation to the transaction or
instrument that is being replaced, or
(b) $10,
whichever is the greater.
[13] Schedule 1
Insert at the end of the Schedule, with appropriate Part and clause numbers:
Part Provisions consequent on enactment of State
Revenue Legislation Further Amendment Act
1999
"Off the plan" purchases
(1) Section 49A, as in force immediately before 1 January 2000,
continues to apply in respect of any off the plan purchase
agreement that was stamped "interim stamp only" under that
section before that date.
(2) Section 49A, as substituted by the State Revenue Legislation
Further Amendment Act 1999, extends to any off the plan
purchase agreement executed before 1 January 2000 in respect
of which no duty had been paid by that date.
[14] Dictionary
Omit paragraph (b) from the definition of "instalment warrant".
Page 10
State Revenue Legislation Further Amendment Bill 1999
Amendment of Health Insurance Levies Act 1982 Schedule 3
Schedule 3 Amendment of Health Insurance Levies
Act 1982
(Section 5)
[1] Section 4 Definitions
Omit "the basic private table or basic table of the organisation" from the
definition of basic health benefits in section 4 (1).
Insert instead "an applicable benefits arrangement (within the meaning of
the National Health Act 1953 of the Commonwealth) of the organisation".
[2] Section 16D Commission for authorised agents
Omit "is entitled to retain, as commission, such amount from each weekly
contribution" from section 16D (1).
Insert instead "is entitled to a commission on contributions, being such
amount".
[3] Section 16F
Omit the section. Insert instead:
16F Remittance of contributions by authorised agents
An authorised agent must, on or before the 15th day of each
month:
(a) lodge a return with the Chief Commissioner, in a form
approved by the Chief Commissioner, for that month,
and
(b) pay to the Chief Commissioner an amount calculated in
accordance with the following formula:
A = (S + 2F) × C × D × 1/7 E
where:
A is the amount in dollars to be paid to the Chief
Commissioner,
Page 11
State Revenue Legislation Further Amendment Bill 1999
Schedule 3 Amendment of Health Insurance Levies Act 1982
S is the number of contributors to single membership at
the beginning of the month,
F is the number of contributors to family membership at
the beginning of the month,
C is the prescribed rate in force during the month,
D is the number of days in the month,
E is the authorised agent's commission (determined in
accordance with section 16D) on contributions for the
month.
[4] Section 16G
Insert after section 16G:
16G Annual adjustment
(1) If the amount paid to the Chief Commissioner by an authorised
agent under section 16F for a year exceeds the actual amount
payable by the authorised agent for that year, the authorised
agent may apply for a refund of an amount equal to the
difference and the Chief Commissioner is to refund that
difference.
(2) If the actual amount payable by an authorised agent for a year
exceeds the amount paid to the Chief Commissioner by the
authorised agent for the year under section 16F, the authorised
agent is to pay the difference to the Chief Commissioner by the
date on which the authorised agent is required to lodge a return
for the first month of the next year.
(3) In this section:
actual amount payable for a year means the total of all
contributions to the State Ambulance Insurance Plan for the
year collected by an authorised agent, less the total of all
commission deducted from those contributions by the
authorised agent in accordance with section 16D.
year means a period commencing on and including 1 February
and ending on and including the following 31 January.
Page 12
State Revenue Legislation Further Amendment Bill 1999
Amendment of Health Insurance Levies Act 1982 Schedule 3
[5] Schedule 3 Transitional provisions
Insert after Part 4:
Part 5 Provision consequent on enactment of State
Revenue Legislation Further Amendment Act
1999
6 Application of amendments
(1) The amendments made to Part 3A by the amending Act do not
apply in respect of contributions to the State Ambulance
Insurance Plan that are received by an authorised agent before
1 February 2000.
(2) Accordingly, such a contribution, the membership of the
contributor and the commission on the contribution is not to be
included in the calculation of the following:
(a) the amount payable to the Chief Commissioner under
the section 16F, as substituted by the amending Act,
(b) any adjustment under section 16G.
(3) The provisions of Part 3A, as in force immediately before
1 February 2000, continue to apply in respect of any
contribution to the State Ambulance Insurance Plan received by
an authorised agent before 1 February 2000.
(4) In this clause:
amending Act means the State Revenue Legislation Further
Amendment Act 1999.
Page 13
State Revenue Legislation Further Amendment Bill 1999
Schedule 4 Amendment of Pay-roll Tax Act 1971
Schedule 4 Amendment of Pay-roll Tax Act 1971
(Section 6)
[1] Section 3 Definitions
Insert in alphabetical order in section 3 (1):
Board of Review means the Board of Review constituted under
section 33.
[2] Section 3C Employment agents
Insert "and a declaration to that effect has been given by the contract worker
to the employment agent" after "those services" in section 3C (4) (a).
[3] Section 3C (4) (b)
Insert "and a declaration to that effect has been given by the client to the
employment agent" after "employment agent".
[4] Section 3C (4) (c)
Omit the paragraph. Insert instead:
(c) if the client of the employment agent:
(i) is not registered or required to be registered as
an employer under this Act, and
(ii) would not be required to be registered as an
employer under this Act if the client were the
employer in respect of the wages paid or payable
under all the employment agency contracts to
which the client is a party,
and a declaration to that effect has been given by the
client to the employment agent.
[5] Section 3C (5)(8)
Omit section 3C (5). Insert instead:
(5) If a contract worker gives a declaration to an employment agent
under subsection (4) (a), and that paragraph does not apply or
at any time ceases to apply to the contract worker, the
Page 14
State Revenue Legislation Further Amendment Bill 1999
Amendment of Pay-roll Tax Act 1971 Schedule 4
employment agent is liable to pay pay-roll tax in respect of the
wages paid or payable under the employment agency contract
during any period in which the paragraph does not apply.
(6) If a client of an employment agent gives a declaration to the
employment agent under subsection (4) (b), and that paragraph
does not apply or at any time ceases to apply in respect of the
wages paid or payable under the employment agency contract,
the client, and not the employment agent, is liable to pay pay-
roll tax in respect of the wages paid or payable under the
employment agency contract during any period in which the
paragraph does not apply.
(7) If a client of an employment agent gives a declaration to the
employment agent under subsection (4) (c), and that paragraph
does not apply or at any time ceases to apply to the client, the
client, and not the employment agent, is liable to pay pay-roll
tax in respect of the wages paid or payable under the
employment agency contract during any period in which the
paragraph does not apply.
(8) A declaration under subsection (4) is to be in a form approved
by the Chief Commissioner.
[6] Part 5A, sections 31B31F
Insert after Part 5:
Part 5A Recovery of tax from directors and former
directors of corporations
31B Definitions
In this Part:
assessment amount means the amount of pay-roll tax that a
corporation has been assessed as being liable to pay, as set out
in a notice of assessment, including any interest or penalty tax
specified in the notice of assessment as being payable by the
corporation.
Page 15
State Revenue Legislation Further Amendment Bill 1999
Schedule 4 Amendment of Pay-roll Tax Act 1971
special arrangement for the payment of an assessment amount
means an arrangement for the payment of tax made by the
Chief Commissioner under section 47 of the Taxation
Administration Act 1996.
31C Liability of directors and former directors of corporation for
failure to pay tax
(1) If a corporation fails to pay an assessment amount in
accordance with a notice of assessment issued by the Chief
Commissioner, the Chief Commissioner may serve a
compliance notice on one or more of the following persons:
(a) a person who is a director of the corporation,
(b) a person who was a director of the corporation at the
time the corporation first became liable to pay the pay-
roll tax, or any part of the pay-roll tax, that is included
in the assessment amount or at any time afterwards
(referred to in this Part as a former director).
(2) A compliance notice is a notice that advises the director or
former director on whom it is served that if the failure to pay
the assessment amount is not rectified within the period
specified in the notice, being a period of not less than 21 days,
the director or former director will be liable to pay the
assessment amount.
(3) For the purposes of this Part, a failure to pay an assessment
amount is rectified if:
(a) the assessment amount is paid, or
(b) the Chief Commissioner makes a special arrangement
with the corporation for the payment of the assessment
amount, or
(c) the Board of Review waives or defers payment of some
or all of the assessment amount, or
(d) an administrator of the corporation is appointed under
Part 5.3A of the Corporations Law, or
(e) the corporation begins to be wound up within the
meaning of the Corporations Law.
Page 16
State Revenue Legislation Further Amendment Bill 1999
Amendment of Pay-roll Tax Act 1971 Schedule 4
(4) If the failure to pay the assessment amount is not rectified
within the period specified in the compliance notice, the
director or former director on whom the compliance notice was
served is jointly and severally liable with the corporation to pay
the assessment amount.
(5) A person does not cease to be liable to pay an assessment
amount because the person ceases to be a director of the
corporation.
31D Failure to comply with special arrangements
If:
(a) a failure by a corporation to pay an assessment amount
is rectified because of a special arrangement for the
payment of the assessment amount, or because payment
of part or all of the assessment amount is deferred by
the Board of Review, and
(b) the corporation fails to pay the assessment amount in
accordance with the terms of the special arrangement or
deferral,
the Chief Commissioner may serve a further compliance notice
in respect of the assessment amount, or so much of the
assessment amount as remains unpaid, and this Part applies
accordingly.
31E Right of indemnity and contribution
If a director or former director of a corporation is liable to pay
an assessment amount under this Part and an amount is paid by
the director or former director in discharge of that liability, the
director or former director is entitled:
(a) to be indemnified for payment of that amount by the
corporation, and
(b) to recover a contribution from any other director or
former director of the corporation who is liable to pay
the assessment amount under this Part, as if the
directors and former directors who are liable to pay the
assessment amount had jointly guaranteed payment of
the assessment amount.
Page 17
State Revenue Legislation Further Amendment Bill 1999
Schedule 4 Amendment of Pay-roll Tax Act 1971
31F Defences
In proceedings for the recovery of an assessment amount from
a director or former director of a corporation under this Part, it
is a defence to the recovery of that amount if the director or
former director establishes that:
(a) the director or former director took all reasonable steps
that were possible in the circumstances to ensure that
the corporation rectified the failure to pay the
assessment amount, or
(b) the director or former director was unable, because of
illness or for some other similar good reason, to take
steps to ensure that the corporation rectified the failure
to pay the assessment amount.
[7] Schedule 6 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Further Amendment Act 1999
[8] Schedule 6, Part 5
Insert after Part 4:
Part 5 Provisions consequent on enactment of State
Revenue Legislation Further Amendment Act
1999
8 Liability of directors of corporation
(1) Part 5A extends to an assessment amount that includes pay-roll
tax that a corporation first became liable to pay before the
commencement of that Part.
(2) A compliance notice may be served in respect of a failure to
pay such an assessment amount, whether the notice of
assessment was issued by the Chief Commissioner before or
after the commencement of Part 5A.
Page 18
State Revenue Legislation Further Amendment Bill 1999
Amendment of Pay-roll Tax Act 1971 Schedule 4
(3) However, Part 5A does not make a person who was a director
of a corporation before the commencement of Part 5A but is
not a director of the corporation at that commencement liable
for the payment of an assessment amount owed by the
corporation, unless the person again becomes a director of the
corporation at any time after the commencement of Part 5A.
Page 19
State Revenue Legislation Further Amendment Bill 1999
Schedule 5 Amendment of Taxation Administration Act 1996
Schedule 5 Amendment of Taxation Administration Act
1996
(Section 7)
[1] Section 86 Objection
Insert after section 86 (1A):
(1B) A reference in subsection (1) (b) to a decision does not include
a refusal by the Chief Commissioner to refund tax paid by the
taxpayer.
[2] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Further Amendment Act 1999
[3] Schedule 1, Part 4
Insert after Part 3:
Part 4 Provisions arising from enactment of State
Revenue Legislation Further Amendment Act
1999
30 Objections
Section 86 (1B), as inserted by the State Revenue Legislation
Further Amendment Act 1999, is taken to extend to any refusal
by the Chief Commissioner to refund tax paid by a taxpayer
that was made by the Chief Commissioner before the
commencement of that subsection.
Page 20
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