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Investments) Bill 1998
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a)
a transfer of dutiable property to a responsible entity (within the
meaning of the Corporations Law) if the transfer was made for the
purpose of complying with the new Commonwealth regulatory regime
for certain investment schemes (introduced by the proposed Managed
Investments Act 1998 of the Commonwealth),
(b) certain instruments that amend or vary an instrument that establishes a
scheme subject to that new regulatory regime, namely, a managed
investment scheme (within the meaning of the Corporations Law).
Concessional duty of $10 is to be chargeable in these circumstances.
Clause 2 provides for the commencement of the proposed Act on the date of
commencement of the proposed Managed Investments Act 1998 of the
Commonwealth. The Commonwealth Act is to commence immediately after
all the items in Schedules 1 , 2 , 3 and 4 of the Company Law Review Act 1997
of the Commonwealth have commenced.
Clause 3 is a formal provision giving effect to the amendments to the Duties
Act 1997 set out in Schedule 1.
Transfers of dutiable property to a responsible entity
Section 54 of the Duties Act 1997 charges a concessional rate of duty in
respect of certain transfers of dutiable property to trustees. Schedule 1 [2]
inserts section 54 (4) to provide that the section applies in respect of certain
transfers of dutiable property to a responsible entity (within the meaning of
the Corporations Law), if the Chief Commissioner is satisfied that the
transfer is necessary to enable a scheme subject to the new Commonwealth
regulatory regime to comply with that regime. Schedule 1 [1] defines
responsible entity.
Amendment or variation of instrument establishing a managed
investment scheme
Section 59 of the Duties Act 1997 charges a concessional rate of duty in
respect of certain instruments that amend or vary an instrument that
establishes a public unit trust scheme. All public unit trust schemes are
schemes that are subject to the new Commonwealth regulatory regime,
namely. managed investment schemes within the meaning of the
Corporations Law. Schedule 1 [3] extends section 59 to apply to all managed
investment schemes that comply with the requirements of the new regime. A
minor amendment has also been made to omit obsolete paragraphs from the
section.
Explanatory note page 2