New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
Amendment Bill 1997
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a) to amend the Stamp Duties Act 1920:
(i)
to make amendments to the provisions relating to the stamp duty
on loan securities to reflect changes made by the introduction of
the Uniform Credit Code, and
(ii)
to overcome the potential to avoid stamp duty on the takeover of
a New South Wales public company by means of a capital
reduction or rights alteration of shares, and
(b)
to amend the Land Tax Management Act 1956 to incorporate in it the
provisions of the Land Tax Management Regulation 1992, and
(c)
to repeal the Land Tax Management Regulation 1992.
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 Land
Tax Management Act 1956 set out in Schedule 2.
Clause 5 repeals the Land Tax Management Regulation 1992.
Schedule 1
Amendment of Stamp Duties Act 1920
Loan securities associated with certain consumer credit
contracts
Schedule 1
inserts proposed sections 84EB and 84EBAA into the Act.
Proposed section 84EB exempts from loan security duty advances under
consumer credit contracts that do not exceed $35,000 and that are secured by
a loan security. The exemption does not apply if the consumer credit is
provided for private housing.
Proposed section 84EBAA provides that loan security duty is not chargeable
on so much of an advance to a natural person for the acquisition of farm
machinery or a commercial vehicle as is secured by a loan security.
Schedule [5] inserts a transitional provision into the Act to exempt from
loan security duty instruments that would have been exempt from duty if the
Consumer Credit (New South Wales) Code had not commenced. The
provision gives effect to a Variation to Statute of the Treasurer that had effect
from 1 November 1996, being the date of commencement of the relevant
provisions of the Code. The transitional provision covers the period from 1
November 1996 until the commencement, proposed for 1 July 1997, of the
sections to be inserted by Schedule 1 [1].
Schedule 1 [4] makes a consequential amendment.
Takeovers of NSW public companies
Schedule 1 [2] inserts proposed Division 27A into Part 3 of the Act,
containing sections 97ADJ97ADN.
Explanatory note page 2
Proposed section 97ADJ contains definitions for the purposes of the
proposed Division, including definitions of
reduction and rights
alteration.
Proposed section 97ADK requires a person to lodge a statement with the
Chief Commissioner of State Revenue if the person:
(a)
becomes entitled to at least 50% of the voting shares of a NSW public
company by means of capital reduction or rights alteration, or both, or
(b)
being entitled to at least 50% of the voting shares of a NSW public
company, becomes entitled to at least 10% more of the voting shares
over a period of not more than 12 months by means of capital
reduction or rights alteration, or both.
The statement is to be lodged within 2 months after the entitlement arises or
such longer period as the Chief Commissioner' approves.
Proposed section 97ADL specifies the information the statement is to
contain.
Proposed section 97ADM specifies that duty is chargeable on the statement
and provides for the rate of duty, the assessment of duty and the payment of
duty.
Proposed section 97ADN makes it an offence for a person to fail to lodge a
statement or to lodge a statement that is false or misleading in a material
particular.
Schedule 1 [3] makes a consequential amendment.
Schedule 2
Amendment of Land Tax Management Act
1956
Schedule 2 [1][6] amend the Act to incorporate in it, without significant
alteration, the provisions currently contained in the Land Tax Management
Regulation 1992 made under the Act.
Schedule 2 [7] and [8] make consequential amendments of a savings and
transitional nature.
Explanatory note page 3