New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
STAMP DUTIES (FUTHER AMENDMENT) BILL 1990
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates
this Bill as introduced into Parliament)
This Bill is cognate with the Pay-roll Tax (Amendment) Bill 1990.
The object of this Bill is to amend the Stamp Duties Act 1920:
* to abolish, as from 1 October 1990, stamp duty on cheques
* to increase, as from 1 October 1990, financial institutions duty from 0.03%
to 0.06% and to increase the maximum amount of such duty in respect of
the receipt of a single amount from $600 to $1,200
* to modify, primarily in relation to contracts and mortgages executed on or
after 1 October 1990, the provisions of the First Home Purchase Scheme
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on 1 October 1990,
except for one of the modifications to the First Home Purchase Scheme relating to
the discounting of duty being paid by instalments which is to commence on a
proclaimed day.
Clause 3 gives effect to the Schedules of amendments to the Stamp Duties Act
1920.
Clause 4 repeals certain regulations made under the Stamp Duties Act 1920 which
relate to the payment of duty on cheques.
SCHEDULE 1 -- AMENDMENTS RELATING TO ABOLITION OF STAMP
DUTY ON CHEQUES
Schedule 1 (1) and (2) omit those provisions of the Stamp Duties Act 1920 which
impose stamp duty on cheques.
Stamp Duties (Further Amendment) 1990
Schedule 1 (3) amends the Tenth Schedule to the Stamp Duties Act 1920 in order
to insert transitional provisions relating to the abolition of stamp duty on cheques.
The provisions enable the making of refunds of stamp duty paid in respect of cheques
which have not been d r a w before 1 October 1990. An application for a refund is
to be made on or before 30 June 1991. The provisions also enable the use, after 1
October 1990, of cheques in respect of which stamp duty is expressed to have been
paid, whether the duty has been paid or not.
SCHEDULE 2 -- AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS
DUTY
Schedule 2 amends the Second Schedule to the Stamp Duties Act 1920 in order
to increase financial institutions duty as described above.
SCHEDULE 3--AMENDMENTS RELATING T O THE FIRST HOME
PURCHASE SCHEME
Schedule 3 (1) (a)(d) amend Schedule 2A to the Stamp Duties Act 1920 in order
to limit the existing provisions of the Schedule to contracts and mortgages executed
before 1 October 1990.
Schedule 3 (I) (e) adds a new Part 2 to Schedule 2A to set out the terms of the
scheme as it is to apply to contracts exchanged on or after 1 October 1990 and related
mortgages. The scheme is to be the same as that applying before that date, subject
to the following modifications:
* Eligibility is to be subject to a means test with regard to net
taxable income (proposed clause 20).
* A contract for the purchase of a vacant block of residential land is not
excluded (proposed clause 22).
* The limits on the total consideration payable under the contract are to be:
- $155,000 for a house and land intheSydney, Gosford, Blue Mountains
or Wollongong MetropolitanArea
- $145,000 for a house and land elsewhere.
- $80,000 for a vacant block of residential land in the Sydney, Gosford,
Blue Mountains or Wollongong Metropolitan Area.
- $70,000 for a vacant block of residential land elsewhere.
These limits may be varied by regulation (proposed clause 22).
* The limits on the total amount secured under a related mortgage are varied
correspondingly (proposed clause 25).
* A person having the benefit of the scheme is (as an alternative to paying the
stamp duty by annual instalments over 5 years) to be given the option of
paying the whole of the stamp duty within 2 months after the exchange of
contracts at a 30% discount (proposed clause 28).
* It is to be an offence to make an application under the scheme if the
applicant knows that the scheme is not applicable in his or her case
(proposed clause 33).
2
3