STAMP DUTY AMENDMENT BILL 1998 Second Reading Speech

Northern Territory Second Reading Speeches

STAMP DUTY AMENDMENT BILL 1998

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Bill presented and read a first time.

Mr REED (Treasurer): Madam Speaker, I move that the bill now be read a second time.

The purpose of this bill is to provide a stamp duty exemption for the transfer of property used solely or principally for pastoral purposes between a person and a family member, subject to certain conditions.

Such relief will foster the transfer of such property to a close family member and thus encourage the recipient to remain on to work the property. Under the current law, ownership can be transferred on the death of the owner for no stamp duty charge. However, if the transfer occurs while the owner is living, stamp duty is charged on the transfer ad valorem duty rates.

This can create a disincentive to the transfer of ownership, which can lead to the owner postponing the transfer of the pastoral property to a family member until the owner’s death. This delay can reduce the incentive to family members who work the land to optimise the property’s productivity until certainty of ownership is available.

The proposed exemption will remove this disincentive and enable ownership of the property to be passed on to those family members undertaking to work the property. This should increase the commitment of those family members to the long-term performance of the property. With the certainty provided by ownership of the property, those family members will be more likely to improve the property and to introduce new and more efficient farming techniques.

The proposed exemption will apply to transfer for no monetary consideration. To qualify for the exemption, the family member receiving the property must continue carrying on the pastoral business in their own capacity. With this legislation, the Northern territory will join other jurisdictions that have removed similar impediments to transfer of this type.

As a final matter, the bill also makes a minor amendment to section 8BA(2) of the act to clarify the operation of the stamp duty concession for purchases under the HomeStart or HomeShare housing assistance scheme. This amendment ensures the availability of the concession, provided the person has not previously owned land in the Territory.

I commend the bill to honourable members.

Debate adjourned.

[Index] [Search] [Bill] [Help]