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Amendment Bill 1996
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a)
to amend the Stamp Duties Act 1920:
(i)
to enlarge the class of credit contracts that are exempt from loan
security duty, and
(ii)
to reduce, and in some cases dispense with, the duty payable in
respect of hiring arrangements and refinancing loan securities,
and
(iii) to enact provisions prescribing conditions of exemption from
duty and other matters currently provided for in regulations
made under the Act, and
(iv) to impose duty in connection with instalment receipts issued on
behalf of the Commonwealth of Australia that confer ownership
in shares, and
(b)
amend the Debits Tax Act 1990 to prescribe the rate (currently
prescribed by regulation) at which unpaid taxes under that Act attract
penalty interest, and
(c)
amend the Business Franchise Licences (Tobacco) Act 1987 to enable
the cancellation or suspension of licences under that Act, and in
relation to licence conditions.
Clause 2 provides for the commencement of the proposed Act.
Clause 3 is a formal provision giving effect to the amendments to the Stamp
Duties Act 1920 set out in Schedule 1.
Clause 4 is a formal provision giving effect to the amendments to the Debits
Tax Act 1990 set out in Schedule 2.
Clause 5 is a formal provision giving effect to the amendments to the
Business Franchise Licences (Tobacco) Act 1987 set out in Schedule 3.
Schedule 1 amends the Stamp Duties Act 1920 and is divided into four Parts.
Schedule 1.1 amends section 84EB of the Act so as to enlarge the class of
credit contracts that are exempt from loan security duty. At present, only
contracts worth $25,000 or less are exempt. As a result of the amendment,
contracts worth up to $35,000 will get the benefit of the exemption.
Schedule 1.2 deals with hiring arrangements and with loan security
refinancing.
Schedule 1.2 [l] inserts a definition of equipment financing arrangement
into section 74D of the Act, and Schedule 1.1 [6] and [7] amend section 74F
so as to provide that the duty on hiring arrangements (normally 1.5 per cent)
is reduced to 0.75 per cent in the case of equipment financing arrangements
(as defined in section 74D).
Schedule 1.2 [11] repeals sections 84CAA and 84CAB and replaces them
with a new section 84CAA, which provides for a general exemption from
duty on a mortgage or other loan security document the object of which is
merely to refinance a loan. The exemption applies so long as the amount, or
the total of amounts, financed under the new loan security does not exceed
the amount financed under the original loan.
Explanatory note page 2
The other items in Schedule 1.2 make consequential amendments.
Schedule 1.3 deals with the sale of shares on behalf of the Commonwealth
Government.
Schedule 1.3 [1] inserts a definition of an IR. An IR, or "instalment receipt",
is a document (of the kind now being issued in connection with the sale of
shares in the Commonwealth Bank) issued by a trustee in connection with a
Commonwealth Government share sale, that conveys a beneficial interest in
shares quoted on the stock exchange.
Schedule 1.3 [2] includes an IR in the definition of marketable security. As a
consequence, duty is payable on IRs in the same way as on shares.
Schedule 1.4 amends the Act so as to include miscellaneous provisions
prescribing matters that are currently prescribed by regulation under the Act
and (in the case of Schedule 1.4 [28]) to make a consequential amendment.
Schedule 2 amends section 34 of the Debits Tax Act 1990 so as to fix the rate
of interest payable on overdue taxes under that Act at 20% per annum (the
figure currently prescribed by regulation under the Act).
Schedule 3 contains amendments to the Business Franchise Licences
(Tobacco) Act 1987.
Schedule 3 [1] and [2] amend section 36 of the Act so as to expand the
grounds on which the Chief Commissioner for Business Franchise Licences
(Tobacco) may decline to authorise the granting of a licence under the Act.
Schedule 3 [4] and [7] make consequential amendments.
Schedule 3 [3] inserts a new section 36A which enables the Chief
Commissioner to impose conditions on a licence under the Act. It is an
offence to contravene any of those conditions.
Schedule 3 [6] amends section 50 of the Act to allow the Chief
Commissioner to suspend the licence of a person who the Chief
Commissioner believes has contravened a licence condition. Following the
suspension, the licensee has 14 days to show cause why the licence should
not be cancelled, and thereafter the Chief Commissioner, taking into account
any representations made by the licensee, may reinstate or cancel the licence.
Schedule 3 [5] makes a consequential amendment.
Schedule 3 [8] amends section 51 of the Act to provide for an appeal to the
District Court against the cancellation of a licence under proposed section 50
(4) of the Act.
Explanatory note gage 3
Schedule 3 [9] amends section 57 of the Act so as to enable the Chief
Commissioner to require an applicant for a licence or any other person to
furnish such information as the Chief Commissioner may reasonably require
in order to determine whether or not to refuse to authorise the granting of a
licence and, if necessary, to require the applicant or other person to appear
and give evidence.
Explanatory note page 4