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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 2004
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 Revocation of repeal 2
Schedule 1 Amendment of Duties Act 1997 3
Schedule 2 Amendment of Land Tax Management Act 1956 15
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, , 2004
New South Wales
State Revenue Legislation Further
Amendment Bill 2004
Act No , 2004
An Act to amend the Duties Act 1997 and other State Revenue legislation to
make further provision with respect to First Home Plus, premium property duty,
vendor duty, inter-jurisdictional mortgage duty, land tax and petroleum products
subsidies; 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 2004
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the State Revenue Legislation Further Amendment
Act 2004.
2 Commencement
(1) This Act commences on the date of assent, except as provided by
subsection (2).
(2) The following provisions commence, or are taken to have
commenced, on the dates specified:
(a) Schedule 1 [2][5]--1 July 2004,
(b) Schedule 1 [19]--1 September 2004,
(c) Schedule 2--31 December 2004.
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 Revocation of repeal
(1) The Petroleum Products Subsidy Act 1965 and the Petroleum
Products Subsidy Regulation 1998 are taken not to be, and never to
have been, repealed by the State Revenue Legislation Further
Amendment (No 2) Act 2001.
(2) The Petroleum Products Subsidy Regulation 1998 is taken not to be,
and never to have been, repealed by section 10 of the Subordinate
Legislation Act 1989, and for the purposes of that section is taken to
have been published on the date of assent to this Act.
Page 2
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
Schedule 1 Amendment of Duties Act 1997
(Section 3)
[1] Section 32A Premium rate for residential land with dutiable value
exceeding $3,000,000
Insert after section 32A (2):
(2A) If the dutiable property subject to a dutiable transaction
comprises 2 or more individual items of residential land and
1 or more of those items has a dutiable value exceeding
$3,000,000, the rate of duty chargeable on the dutiable
transaction is as follows:
(a) for each item of residential land that has a dutiable
value exceeding $3,000,000--$150,490 plus $7 for
every $100, or part, by which the dutiable value of the
item exceeds $3,000,000,
(b) for the rest of the dutiable property--the rate provided
for by section 32.
[2] Section 71 Restrictions on eligibility--previous ownership of
residential property or first home concession
Omit section 71 (1) and (2). 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:
(a) has not at any time owned residential property in
Australia (either solely or with someone else), and
(b) has not previously been a party to an application under
the scheme that was approved by the Chief
Commissioner.
(2) If a purchaser or transferee under an agreement or transfer has
a spouse, the purchaser or transferee is eligible only if the
spouse of the purchaser or transferee:
(a) has not at any time owned residential property in
Australia (either solely or with someone else), and
(b) has not previously been a party to an application under
the scheme that was approved by the Chief
Commissioner.
Page 3
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
[3] Section 71 (6)
Insert ", or who has previously been a party to an application under the
scheme that was approved by the Chief Commissioner," after "residential
property".
[4] Section 76 Residence requirement
Omit "in accordance with the residence requirement" from section 76 (3).
Insert instead "as their principal place of residence".
[5] Section 76 (6)
Omit the subsection.
[6] Section 158 What is the "dutiable value" of land-related property?
Insert "(except in sections 22 and 23)" after "transferee" in section 158
(2) (d).
[7] Section 162B Principal place of residence exemption
Insert after section 162B (4):
(5) For the purposes of the principal place of residence
exemption, a vendor of land that is owned by 2 or more
persons is not considered to be used and occupied by the
vendor as the principal place of residence of the vendor unless
the land is used and occupied as the principal place of
residence of:
(a) at least one of the owners who is a natural person and
whose ownership share is 50% or more, or
(b) each of 2 or more of the owners who are natural persons
and whose combined ownership share is 50% or more.
[8] Section 162D Exemption applies to natural persons only
Omit the section.
[9] Section 162M What is the vendor acquisition date?
Omit "a legal or equitable interest in" wherever occurring.
Page 4
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
[10] Section 162O Transactions relating to multiple items or interests
Insert at the end of the section:
(2) If a vendor duty transaction relates to separate interests in an
item of land-related property, the amount if any by which the
dutiable value of the land-related property on the transfer date
exceeds the dutiable value of the land-related property on the
vendor acquisition date is, for the purposes of this Division, to
be assessed and determined separately for each of those
separate interests, and duty is chargeable accordingly.
[11] Sections 162P and 162Q
Omit the sections. Insert instead:
162P Exemption for sale of new buildings
(1) Exemption for new buildings never occupied before sale
An agreement for the sale or transfer, or a transfer, of land is
not chargeable with vendor duty if:
(a) it is an agreement for the sale or transfer, or a transfer,
of land on which one or more buildings have been
constructed by or on behalf of the vendor that are
suitable for use or occupation for residential,
commercial or other purposes, and
(b) the building or buildings have never been occupied or
used for any purpose prior to the first execution of the
agreement or transfer or (if the Chief Commissioner is
satisfied that they were constructed to be occupied or
used for residential purposes) have never been occupied
or used for residential purposes before that first
execution, and
(c) the Chief Commissioner is satisfied that the building or
buildings are a significant improvement to the land, and
(d) the sale or transfer is the first sale or transfer of the land
since the building or buildings were completed, and
(e) there are no other buildings on the land that are suitable
for use or occupation for residential, commercial or
other purposes, other than heritage buildings.
Page 5
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
(2) Exemption for new buildings sold within 12 months after
completion
An agreement for the sale or transfer, or a transfer, of land is
not chargeable with vendor duty if:
(a) it is an agreement for the sale or transfer, or a transfer,
of land on which one or more buildings have been
constructed by or on behalf of the vendor that are
suitable for use or occupation for residential,
commercial or other purposes, and
(b) the building or buildings have never been occupied or
used for any purpose prior to being completed, and
(c) the Chief Commissioner is satisfied that the building or
buildings are a significant improvement to the land, and
(d) the agreement for the sale or transfer, or the transfer, of
the land was first executed within 12 months after the
building or buildings were completed, and
(e) the sale or transfer is the first sale or transfer of the land
since the building or buildings were completed, and
(f) there are no other buildings on the land that are suitable
for use or occupation for residential, commercial or
other purposes, other than heritage buildings.
(3) Exemption for new buildings to be constructed on
subdivided lots before completion
An agreement for the sale or transfer of land is not chargeable
with vendor duty if:
(a) it is an agreement for the sale or transfer of a lot in a
plan of subdivision (including an unregistered plan of
subdivision), on which a building is to be constructed
before completion of the sale or transfer, and
(b) the Chief Commissioner is satisfied that the building
will be a significant improvement to the land, and
(c) the sale or transfer is the first sale or transfer of the lot.
(4) For the purposes of this section, a building is completed
when:
(a) an occupation certificate under the Environmental
Planning and Assessment Act 1979 has been issued for
the building, or
Page 6
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
(b) if such an occupation certificate is not required before
the building can be lawfully occupied--the Chief
Commissioner is satisfied that the building is ready for
occupation for a purpose for which it has been
constructed.
(5) In this section:
heritage building means a building that the Chief
Commissioner is satisfied has heritage significance.
162Q Exemption for sale of substantially new buildings
(1) Exemption for substantially new buildings not occupied
between completion and sale
An agreement for the sale or transfer, or a transfer, of land is
not chargeable with vendor duty if:
(a) it is an agreement for the sale or transfer, or a transfer,
of land on which one or more substantially new
buildings have been constructed by or on behalf of the
vendor that are suitable for use or occupation for
residential, commercial or other purposes, and
(b) the building or buildings have not been occupied or
used for any purpose after completion and prior to the
first execution of the agreement or transfer, and
(c) the Chief Commissioner is satisfied that the building or
buildings are a significant improvement to the land, and
(d) the sale or transfer is the first sale or transfer of the land
since the building or buildings were completed, and
(e) there are no other buildings on the land that are suitable
for use or occupation for residential, commercial or
other purposes, other than heritage buildings or
unoccupied new buildings.
(2) Exemption for substantially new buildings sold within 12
months after completion
An agreement for the sale or transfer, or a transfer, of land is
not chargeable with vendor duty if:
(a) it is an agreement for the sale or transfer, or a transfer,
of land on which one or more substantially new
buildings have been constructed by or on behalf of the
Page 7
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
vendor that are suitable for use or occupation for
residential, commercial or other purposes, and
(b) the agreement for the sale or transfer, or the transfer, of
the land was first executed within 12 months after the
building or buildings were completed, and
(c) the Chief Commissioner is satisfied that the building or
buildings are a significant improvement to the land, and
(d) the sale or transfer is the first sale or transfer of the land
since the building or buildings were completed, and
(e) there are no other buildings on the land that are suitable
for use or occupation for residential, commercial or
other purposes, other than heritage buildings or
unoccupied new buildings.
(3) For the purposes of this section, a building is completed
when:
(a) an occupation certificate under the Environmental
Planning and Assessment Act 1979 has been issued for
the building, or
(b) if such an occupation certificate is not required before
the building can be lawfully occupied--the Chief
Commissioner is satisfied that the building is ready for
occupation for a purpose for which it has been
constructed.
(4) For the purposes of this section, a building is a substantially
new building if the Chief Commissioner is satisfied that all
parts of the building have been replaced with the exception of
the following:
(a) parts of the building (if any) that have heritage
significance,
(b) parts of the building required to be retained for
structural necessity,
(c) major plant and equipment associated with the
building.
(5) In this section:
heritage building means a building that the Chief
Commissioner is satisfied has heritage significance.
unoccupied new building means a building that has never
been occupied or used for any purpose.
Page 8
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
[12] Section 162S Improved vacant land
Omit "by or on behalf of the vendor" wherever occurring.
Insert instead "at the vendor's expense".
[13] Section 162T Sale of business that includes land-related property
Insert "the whole of" before "a business".
[14] Section 162UA
Insert after section 162U:
162UA Sale by mortgagee or receiver under power of sale
An agreement for the sale or transfer, or a transfer, of
land-related property is not chargeable with vendor duty if the
Chief Commissioner is satisfied that the agreement or transfer
is pursuant to the bona fide exercise of a power of sale by a
mortgagee, receiver, liquidator or trustee in bankruptcy.
[15] Section 162V Land subject to conservation instruments
Omit section 162V (1). Insert instead:
(1) This section applies to a vendor duty transaction if the Chief
Commissioner is satisfied that the land-related property
transferred is land that is wholly or partly the subject of a
conservation agreement under the National Parks and
Wildlife Act 1974 or a trust agreement registered as referred to
in section 36 of the Nature Conservation Trust Act 2001.
These conservation agreements and registered trust
agreements are referred to in this section as conservation
instruments.
[16] Section 162V (2)(4)
Omit "conservation agreement" wherever occurring.
Insert instead "conservation instrument".
Page 9
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
[17] Section 162X Transactions exempt from ad valorem duty under
Chapter 2
Omit section 162X (1). Insert instead:
(1) Subject to this Division, no vendor duty is chargeable under
this Chapter on a vendor duty transaction if:
(a) ad valorem duty is not chargeable on the transaction as
a dutiable transaction under Chapter 2 because of any of
the provisions of Parts 6 and 7 of Chapter 2 (other than
sections 61 and 62), or
(b) the transaction is the subject of an exemption under any
of sections 9699, or
(c) the duty chargeable on the transaction under Chapter 2
is the duty chargeable under section 18 (3), or
(d) the transaction is a transfer in respect of which the Chief
Commissioner is required by section 51 to refund
ad valorem duty.
[18] Section 162Y Exemptions for charities and others under
Chapter 11
Omit section 162Y (3).
[19] Section 216 Mortgages over property not wholly within New South
Wales
Omit "within a Territory or" from the value of T in section 216 (2).
[20] Section 275
Omit the section. Insert instead:
275 Charitable and benevolent bodies
(1) Duty under this Act (other than vendor duty) is not chargeable
on a transfer, or an agreement for the sale or transfer, or a
lease, of dutiable property to, or a declaration of trust over
dutiable property held or to be held on trust for, or a mortgage
given by or on behalf of, an exempt charitable or benevolent
body.
(2) Vendor duty is not chargeable on a transfer, or an agreement
for the sale or transfer, of land-related property by, or a
Page 10
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
declaration of trust over land-related property by, an exempt
charitable or benevolent body.
(3) In this section:
exempt charitable or benevolent body means:
(a) any society or institution for the time being approved by
the Chief Commissioner for the purposes of this
paragraph whose resources are, in accordance with its
rules or objects, used wholly or predominantly for:
(i) the relief of poverty in Australia, or
(ii) the promotion of education in Australia, or
(b) any society or institution that, in the opinion of the
Chief Commissioner, is of a charitable or benevolent
nature, or has as its primary object the promotion of the
interests of Aborigines and if:
(i) (in the application of this definition for the
purposes of subsection (1)) the dutiable
transaction or instrument is for such purposes as
the Chief Commissioner may approve in
accordance with guidelines approved by the
Treasurer, or
(ii) (in the application of this definition for the
purposes of subsection (2)) the land-related
property was used by the society or institution for
such purposes as the Chief Commissioner may
approve in accordance with guidelines approved
by the Treasurer.
[21] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Further Amendment Act 2004
[22] Schedule 1, clause 41 (5) and (6)
Insert after clause 41 (4):
(5) The occupation by a vendor of land to which a vendor duty
transaction applies as his or her principal place of residence
that ceased not more than 6 months before 1 June 2004 is, for
the purposes of the application of clause 4 of Schedule 2 in
respect of the transaction, to be treated as having ceased
immediately before 1 June 2004.
Page 11
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
(6) If the vendor in respect of a vendor duty transaction is the
legal personal representative of a deceased person, or a
beneficiary under a will of a deceased person or on the
intestacy of a deceased person, and the grant of probate or
letters of administration occurred before 1 June 2004, clause
6 of Schedule 2 applies in respect of the transaction as if the
grant of probate or letters of administration had occurred on
1 June 2004.
[23] Schedule 1, Part 19
Insert after Part 18:
Part 19 Provisions consequent on enactment of
State Revenue Legislation Further
Amendment Act 2004
43 Amendments operate from 1 June 2004
(1) An amendment to this Act made by the State Revenue
Legislation Further Amendment Act 2004, except an
amendment referred to in section 2 (2) of that Act, is taken to
have effect as if it had commenced on 1 June 2004.
(2) A vendor duty transaction that occurred on or after 1 June
2004 in respect of which vendor duty is chargeable because of
the amendments made to this Act by the State Revenue
Legislation Further Amendment Act 2004 is taken (if the
vendor duty has not already been paid) to become chargeable
with that duty on the date of assent to that Act.
(3) The imposition, payment and recovery of duty under this Act
before the date of assent to the State Revenue Legislation
Further Amendment Act 2004 is taken to have been validly
done to the extent that it would have been validly done had the
amendments made by that Act been in force at the time it was
done.
Page 12
State Revenue Legislation Further Amendment Bill 2004
Amendment of Duties Act 1997 Schedule 1
[24] Schedule 2 Principal place of residence exemption--concessions
and restrictions
Insert after clause 4 (3):
(4) The Chief Commissioner may, if satisfied that there is a good
reason for doing so, extend the period of 6 months referred to
in subclause (1) in a particular case.
[25] Schedule 2, clause 5 (1)
Omit "the vendor is taken".
Insert instead "the vendor is entitled (if the vendor so chooses) to be
taken".
[26] Schedule 2, clause 5 (4)
Omit the subclause. Insert instead:
(4) Any period for which a person is taken pursuant to this clause
to have continued to use and occupy a former residence as his
or her principal place of residence is to be disregarded as a
period of use and occupation of any other residence as the
person's principal place of residence (despite the fact that the
use and occupation of the other residence during that period
was use and occupation as the person's actual principal place
of residence).
[27] Schedule 2, clause 6 (2) (a)
Omit "the date of the deceased person's death".
Insert instead "the grant of probate or letters of administration to the legal
personal representative".
[28] Schedule 2, clause 7 (2)
Omit the subclause. Insert instead:
(2) Subclause (1) applies to a vendor duty transaction only if:
(a) the vendor under the transaction is the legal personal
representative of the deceased person or is a beneficiary
under the will of the deceased person, or on the
intestacy of the deceased person, in whom the deceased
person's interest vested after the termination (by expiry
or surrender) of the life estate, and
Page 13
State Revenue Legislation Further Amendment Bill 2004
Schedule 1 Amendment of Duties Act 1997
(b) the date on which (but for this clause) a liability for
vendor duty would arise in respect of the transaction is
within 12 months after the termination of the life estate.
Page 14
State Revenue Legislation Further Amendment Bill 2004
Amendment of Land Tax Management Act 1956 Schedule 2
Schedule 2 Amendment of Land Tax Management
Act 1956
(Section 4)
[1] Section 10 Land exempted from tax
Omit section 10 (1) (p1). Insert instead:
(p1) land that is the subject of a conservation agreement
under the National Parks and Wildlife Act 1974 or a
trust agreement registered as referred to in section 36 of
the Nature Conservation Trust Act 2001,
[2] Section 10 (2C)
Insert after section 10 (2B):
(2C) Where part of any land is the subject of a conservation
agreement under the National Parks and Wildlife Act 1974 or
a trust agreement registered as referred to in section 36 of the
Nature Conservation Trust Act 2001 (as referred to in
subsection (1) (p1)), the land value of that land is, for the
purposes of the assessment of land tax, to be reduced by an
amount that bears the same proportion to that land value as the
area of the part that is the subject of the agreement bears to the
area of the whole of the land.
[3] Schedule 2 Savings and transitional provisions
Insert at the end of clause 1A (1):
State Revenue Legislation Further Amendment Act 2004 (to
the extent that it amends this Act)
Page 15
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