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Amendment (Howard and Costello)
Bill 1996
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
(a)
to increase the rates of land tax and stamp duty for motor vehicle
certificates of registration for a limited period, and
(b) to treat employer
superannuation contributions as wages for the
purpose of assessing pay-roll tax but to reduce the rate of pay-roll tax
in two stages.
The period referred to in paragraph (a) will conclude at the end of 1998,
unless this is altered by proclamation. The period can be shortened or
extended, depending on whether the following three conditions are satisfied:
* Amended in committee--see table at end of volume.
*
the Commonwealth has ended the requirement for special revenue
assistance payments by States and Territories, and
*
the funding formula (as agreed at the Premier's Conference on 14 June
1996) for financial assistance grants is operative, and
*
arrangements (as agreed at the meeting of the Council of Australian
Governments on 11 April 1995) with respect to national competition
payments are operative.
The second of the stages referred to in paragraph (b) will be the end of 1998,
unless this is extended by proclamation for 12 months, depending on whether
those three conditions are satisfied.
Clause 2 provides for the commencement of the proposed Act on the date of
assent, except for the amendments to the Stamp Duties Act 1920. Some
provisions being inserted by the Bill contain operative dates.
Clauses 35 are formal provisions giving effect to the Schedules of
amendments.
Schedule 1
Amendment of Land Tax Act 1956
Proposed section 3AF increases the rate of land tax from 1.5% to 1.65% with
effect from the 1997 land tax year. Proposed section 3AG re-instates the
existing rate at the end of 1998 or another proclaimed year.
Schedule 2 Amendment of Pay-roll Tax Act 1971
The Schedule includes employer superannuation contributions within the
definition of wages for the purposes of the Act, and reduces the level of
pay-roll tax from 7% to 6.85% with effect from 1 July 1996. The rate will be
further reduced to 6.7% with effect from 1 January 1999 or (if a proclamation
so provides) 1 January 2000.
Schedule 3 Amendment of Stamp Duties Act 1920
Part 1 of the Schedule increases the rate of stamp duty for motor vehicle
certificates of registration from 2.5% to 3% with effect from 1 July 1996. Part
2 of the Schedule re-instates the existing rate on 1 January 1999 or another
proclaimed date.
Explanatory note page 2