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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 2010
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of Duties Act 1997 No 123 3
Schedule 2 Amendment of First Home Owner Grant Act 2000 No 21 7
Schedule 3 Amendment of Land Tax Management Act 1956 No 26 8
Schedule 4 Amendment of Payroll Tax Act 2007 No 21 9
b2010-160-40.d14
This public bill which originated in the Legislative Assembly, has passed and is
now ready for presentation to the Legislative Council for its concurrence.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2010
New South Wales
State Revenue Legislation Further
Amendment Bill 2010
Act No , 2010
An Act to make miscellaneous amendments to certain State revenue legislation.
EXAMINED
Assistant Speaker
Clause 1 State Revenue Legislation Further Amendment Bill 2010
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the State Revenue Legislation Further Amendment Act 2010. 3
2 Commencement 4
(1) This Act commences on the date of assent to this Act, except as 5
provided by subsection (2). 6
(2) The following provisions commence, or are taken to have commenced, 7
on the dates indicated: 8
(a) Schedule 1 [1]--1 July 2010, 9
(b) Schedules 1 [2][7] and 2--1 January 2011, 10
(c) Schedule 3--31 December 2010, 11
(d) Schedule 4--1 July 2011. 12
Page 2
State Revenue Legislation Further Amendment Bill 2010
Amendment of Duties Act 1997 No 123 Schedule 1
Schedule 1 Amendment of Duties Act 1997 No 123 1
[1] Section 54 Change in trustees 2
Insert "to a trustee of a self managed superannuation fund," after "special 3
trustee)," in section 54 (2A). 4
[2] Section 59B Change in custodians 5
Omit "the trustee" from section 59B (b) and (c) wherever occurring. 6
Insert instead "a trustee". 7
[3] Section 61 Transfers of property in connection with persons changing 8
superannuation funds 9
Insert ", or an agreement to transfer," after "transfer of" wherever occurring in 10
section 61 (1A) (a), (b), (c) and (d). 11
[4] Section 61 (1A) (c1) 12
Insert after section 61 (1A) (c): 13
(c1) a transfer of, or an agreement to transfer, marketable 14
securities from the trustee of a superannuation fund, or a 15
custodian of the trustee of a superannuation fund, made in 16
exchange for the issue of units in a pooled superannuation 17
trust, to a trustee of the pooled superannuation trust, 18
[5] Section 61 (2) 19
Insert "relevant" before "transfer". 20
[6] Section 61 (2A) 21
Insert after section 61 (2): 22
(2A) This section applies despite section 18 (2) and (3). 23
[7] Section 62A Transfers to self managed superannuation funds 24
Omit section 62A (3). Insert instead: 25
(3) Duty of $500 is chargeable on a transfer of, or an agreement to 26
transfer, dutiable property from a person (the transferor) to the 27
custodian of the trustee of a self managed superannuation fund 28
but only if: 29
(a) the transferor is the only member of the superannuation 30
fund, or 31
(b) the property is to be used solely for the purpose of 32
providing a retirement benefit to the transferor. 33
Page 3
State Revenue Legislation Further Amendment Bill 2010
Schedule 1 Amendment of Duties Act 1997 No 123
(4) This section does not apply in respect of a transfer of, or an 1
agreement to transfer, dutiable property if, as a result of the 2
transfer, the superannuation fund will cease to be a complying 3
superannuation fund. 4
[8] Section 65 Exemptions from duty 5
Omit section 65 (17). Insert instead: 6
(17) Pharmacists' body corporate 7
No duty is chargeable under this Chapter on the transfer of, or an 8
agreement to transfer, dutiable property in the following cases: 9
(a) dutiable property of a partnership carrying on the business 10
of a pharmacist before 25 February 2008 that is transferred 11
or agreed to be transferred to a pharmacists' body 12
corporate (within the meaning of Schedule 5F to the 13
Health Practitioner Regulation National Law (NSW)), if 14
the members of the partnership immediately before the 15
transfer or agreement is first executed are all directors and 16
shareholders of the pharmacists' body corporate and there 17
are no other directors or shareholders of that pharmacists' 18
body corporate, 19
(b) dutiable property of a pharmacist carrying on the business 20
of a pharmacist before 25 February 2008 that is transferred 21
or agreed to be transferred to a pharmacists' body 22
corporate (within the meaning of Schedule 5F to the 23
Health Practitioner Regulation National Law (NSW)), if 24
the pharmacist is the sole director and shareholder of that 25
pharmacists' body corporate. 26
[9] Section 150 What are "interests" and "significant interests" in 27
landholders? 28
Omit "(within the meaning of Division 974 of the Income Tax Assessment Act 29
1997 of the Commonwealth)" from section 150 (1A). 30
[10] Section 150 (4) and (5) 31
Omit section 150 (4). Insert instead: 32
(4) In determining whether a person has a significant interest in a 33
landholder, a distribution of property to any person in the 34
person's capacity as the holder of a debt interest is to be 35
disregarded. 36
Page 4
State Revenue Legislation Further Amendment Bill 2010
Amendment of Duties Act 1997 No 123 Schedule 1
(5) In this section: 1
debt interest has the same meaning as it has in Division 974 of 2
the Income Tax Assessment Act 1997 of the Commonwealth. 3
person includes a landholder. 4
[11] Section 267 Exemptions 5
Insert after section 267 (7A): 6
(7AA) Duty under this Chapter is not chargeable in respect of an 7
application to register a motor vehicle in the name of a member 8
or former member (within the meaning of the Military 9
Rehabilitation and Compensation Act 2004 of the 10
Commonwealth) who suffers from an impairment assessed under 11
that Act to constitute at least 50 impairment points, and who is 12
eligible for, in receipt of, or has at any time received 13
compensation or a special rate disability pension under that Act. 14
[12] Schedule 1 Savings, transitional and other provisions 15
Insert at the end of clause 1 (1): 16
State Revenue Legislation Further Amendment Act 2010 17
[13] Schedule 1, Part 34 18
Insert after Part 33: 19
Part 34 Provisions consequent on enactment of 20
State Revenue Legislation Further 21
Amendment Act 2010 22
88 Application of amendments 23
An amendment made to this Act by the State Revenue Legislation 24
Further Amendment Act 2010 does not apply in respect of a 25
dutiable transaction for which liability for duty arose before the 26
commencement of the amendment. 27
89 Changes to landholder duty provisions 28
The amendments made to section 150 of this Act by the State 29
Revenue Legislation Further Amendment Act 2010 have effect as 30
if they had been made by Schedule 1 to the State Revenue 31
Legislation Further Amendment Act (No 2) 2009 and had 32
commenced on the date of commencement of that Schedule. 33
Note. See clause 80. Schedule 1 to the State Revenue Legislation 34
Further Amendment Act (No 2) 2009 commenced on 1 December 2009. 35
Page 5
State Revenue Legislation Further Amendment Bill 2010
Schedule 1 Amendment of Duties Act 1997 No 123
[14] Dictionary 1
Omit the definition of mortgage from clause 1. 2
[15] Dictionary 3
Insert in alphabetical order in clause 1: 4
self managed superannuation fund means a complying 5
superannuation fund within the meaning of section 42A of the 6
Superannuation Industry (Supervision) Act 1993 of the 7
Commonwealth. 8
Page 6
State Revenue Legislation Further Amendment Bill 2010
Amendment of First Home Owner Grant Act 2000 No 21 Schedule 2
Schedule 2 Amendment of First Home Owner Grant 1
Act 2000 No 21 2
[1] Section 13A First home owner grant cap 3
Omit section 13A (2) (a). Insert instead: 4
(a) $835,000, or 5
[2] Schedule 1 Savings, transitional and other provisions 6
Insert at the end of clause 1 (1): 7
State Revenue Legislation Further Amendment Act 2010 8
[3] Schedule 1, Part 9 9
Insert after Part 8: 10
Part 9 Provisions consequent on enactment of 11
State Revenue Legislation Further 12
Amendment Act 2010 13
16 Change to first home owner grant cap 14
(1) The amendment to section 13A made by the State Revenue 15
Legislation Further Amendment Act 2010 does not apply in 16
respect of an eligible transaction that has a commencement date 17
that is before 1 January 2011. 18
(2) Section 13A, as in force immediately before the amendment, 19
continues to apply in respect of such an eligible transaction. 20
Page 7
State Revenue Legislation Further Amendment Bill 2010
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
Schedule 3 Amendment of Land Tax Management 1
Act 1956 No 26 2
[1] Section 3A Special trust--meaning 3
Omit "12 months after the date of death of the testator, or such further period 4
as may be approved by the Chief Commissioner in a particular case" from 5
section 3A (4) (e). 6
Insert instead "2 years after the date of death of the testator". 7
[2] Schedule 1A Principal place of residence exemption 8
Omit "12 months" from clause 9 (2) (a) and (3) wherever occurring. 9
Insert instead "2 years". 10
[3] Schedule 2 Savings and transitional provisions 11
Insert at the end of clause 1A (1): 12
State Revenue Legislation Further Amendment Act 2010 13
[4] Schedule 2, Part 25 14
Insert after Part 24: 15
Part 25 Provisions consequent on enactment of 16
State Revenue Legislation Further 17
Amendment Act 2010 18
52 Application of amendments 19
The amendments made to this Act by the State Revenue 20
Legislation Further Amendment Act 2010 apply only: 21
(a) in respect of a death occurring on or after 1 January 2010, 22
and 23
(b) to the assessment of land tax liability in respect of the 24
2011 land tax year and subsequent land tax years. 25
Page 8
State Revenue Legislation Further Amendment Bill 2010
Amendment of Payroll Tax Act 2007 No 21 Schedule 4
Schedule 4 Amendment of Payroll Tax Act 2007 1
No 21 2
[1] Section 3 Definitions 3
Omit "within the meaning of section 139GCD of the Income Tax Assessment 4
Act 1936 of the Commonwealth" from the definition of share in section 3 (1). 5
[2] Section 18 Inclusion of grant of shares and options as wages 6
Omit section 18 (1). Insert instead: 7
(1) For the purposes of this Act, wages include the grant of a share or 8
an option to an employee by an employer in respect of services 9
performed by the employee if the share or option is an ESS 10
interest (within the meaning of section 83A10 of the Income Tax 11
Assessment Act 1997 of the Commonwealth) and is granted to the 12
employee under an employee share scheme (within the meaning 13
of that section). 14
Note. A grant of a share or an option to an employee by an employer that 15
is not an ESS interest will be taxable as a fringe benefit under Division 2 16
of this Part. 17
[3] Section 19 Choice of relevant day 18
Omit section 19 (2). Insert instead: 19
(2) A share or option is granted to a person if: 20
(a) another person transfers the share or option to that person 21
(other than, in the case of a share, by issuing the share to 22
that person), or 23
(b) in the case of a share--another person allots the share to 24
that person, or 25
(c) in the case of an option--another person confers the option 26
on, or otherwise creates the option in, that person, or 27
(d) the person otherwise acquires a legal interest in the share 28
or option from another person, or 29
(e) the person acquires a beneficial interest in the share or 30
option from another person. 31
(2A) To avoid doubt, if an employee acquires a right to be granted a 32
share or an option, or some other material benefit, at the election 33
of the employer, the share or option is not granted until the 34
employer elects to grant the share or option. 35
Page 9
State Revenue Legislation Further Amendment Bill 2010
Schedule 4 Amendment of Payroll Tax Act 2007 No 21
[4] Section 19 (3) and (4) 1
Omit the subsections. Insert instead: 2
(3) The vesting date in respect of a share is one of the following dates 3
(whichever happens first): 4
(a) the date on which the share vests in the employee (that is, 5
when any conditions applying to the grant of the share 6
have been met and the employee's legal or beneficial 7
interest in the share cannot be rescinded), 8
(b) the date at the end of the period of 7 years from the date on 9
which the share is granted to the employee. 10
(4) The vesting date in respect of an option is one of the following 11
dates (whichever happens first): 12
(a) the date on which the share to which the option relates is 13
granted to the employee, 14
(b) the date on which the employee exercises a right under the 15
option to have the share the subject of the option 16
transferred to, allotted to or vested in him or her, 17
(c) the date at the end of the period of 7 years from the date on 18
which the option is granted to the employee. 19
[5] Section 23 Value of shares and options 20
Omit "market" from section 23 (1). 21
[6] Section 23 (2)(7) 22
Omit section 23 (2)(5). Insert instead: 23
(2) The value of a share or an option is: 24
(a) the market value, or 25
(b) the amount determined as provided for by the 26
Commonwealth income tax provisions. 27
(3) The employer may elect the method by which the value of a share 28
or an option is determined in any return lodged under this Act. 29
(4) However, the Chief Commissioner may determine the method by 30
which the value of a share or an option is determined if the grant 31
of the share or option is not included as wages in a return lodged 32
by an employer as required by this Act. 33
(5) In determining the market value of a share or option, anything 34
that would prevent or restrict conversion of the share or option to 35
money is to be disregarded. 36
Page 10
State Revenue Legislation Further Amendment Bill 2010
Amendment of Payroll Tax Act 2007 No 21 Schedule 4
(6) The Commonwealth income tax provisions apply with the 1
following modifications, and any other necessary modifications: 2
(a) the value of an option is to be determined as if it were a 3
right to acquire a beneficial interest in a share, 4
(b) a reference to the acquisition of a beneficial interest in a 5
share or right is to be read as a reference to the grant of a 6
share or an option. 7
(7) In this section, Commonwealth income tax provisions means 8
section 83A315 of the Income Tax Assessment Act 1997 of the 9
Commonwealth and the regulations made for the purposes of that 10
section. 11
Note. See Division 83A of the Income Tax Assessment Regulations 12
1997 of the Commonwealth for the relevant regulations. 13
[7] Section 24 Inclusion of shares and options granted to directors as wages 14
Omit section 24 (1). Insert instead: 15
(1) For the purposes of this Act, wages include the grant of a share or 16
an option by a company to a director of the company who is not 17
an employee of the company by way of remuneration for the 18
appointment or services of the director. 19
[8] Section 24 (4) 20
Insert after section 24 (3): 21
(4) However, if wages referred to in this section are fringe benefits, 22
the value of the wages is to be determined in accordance with 23
Division 2 of this Part (and not this Division). 24
[9] Schedule 3 Savings, transitional and other provisions 25
Insert at the end of clause 1 (1): 26
State Revenue Legislation Further Amendment Act 2010 27
Page 11
State Revenue Legislation Further Amendment Bill 2010
Schedule 4 Amendment of Payroll Tax Act 2007 No 21
[10] Schedule 3, Part 7 1
Insert after Part 6: 2
Part 7 Provisions consequent on enactment of 3
State Revenue Legislation Further 4
Amendment Act 2010 5
20 Assessment and payment of payroll tax in relation to employee 6
shares and options 7
Anything done or omitted to be done by an employer in 8
connection with the assessment and payment of payroll tax, in 9
respect of a month occurring after June 2009 and before July 10
2011, that would have been validly done or omitted to be done 11
had the amendments made to this Act by the State Revenue 12
Legislation Further Amendment Act 2010 been in force, is taken 13
to have been validly done or omitted. 14
Note. This provision validates a decision by an employer to treat the 15
grant of a share or an option to an employee that is not an ESS interest 16
as a fringe benefit under Division 2 of Part 3 of this Act and to determine 17
the value of those fringe benefits in accordance with those provisions, 18
rather than by reference to Division 4 of Part 3 of this Act. 19
21 Determination of vesting date and value of employee shares and 20
options 21
(1) Division 4 of Part 3 of this Act continues to apply in respect of a 22
share or an option granted before 1 July 2011 that constituted 23
wages under old section 18, whether or not the grant of the share 24
or option would constitute wages under new section 18, if the 25
relevant day in relation to the grant of the share or option is not a 26
day occurring before 1 July 2011. 27
Note. For example, a share granted before 1 July 2011 that is not an 28
ESS interest continues to be treated as wages under Division 4 of Part 3 29
of this Act if the vesting date for the share did not occur before 30
1 July 2011 and the employer did not elect to treat the date of the grant 31
as the relevant day. 32
(2) The assessment amendments apply in respect of any such share 33
or option. 34
(3) Accordingly, the vesting date and the value of the share or option 35
are to be determined in accordance with the assessment 36
amendments. 37
(4) This clause does not apply in respect of a share or an option 38
granted before 1 July 2011 if the liability for payroll tax in respect 39
Page 12
State Revenue Legislation Further Amendment Bill 2010
Amendment of Payroll Tax Act 2007 No 21 Schedule 4
of the grant is determined in accordance with Division 2 of Part 3 1
(as permitted by clause 20). 2
(5) In this clause: 3
assessment amendments means the amendments made by 4
Schedule 4 [4][6] to the State Revenue Legislation Further 5
Amendment Act 2010. 6
new section 18 means section 18 as amended by the State 7
Revenue Legislation Further Amendment Act 2010. 8
old section 18 means section 18 as in force immediately before 9
1 July 2011. 10
relevant day--see section 18 (3). 11
Page 13
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