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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Duties Amendment Bill 2008
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1 Purpose 1
2 Commencement 2
PART 2--AMENDMENTS IN RELATION TO CERTAIN LEASES
AND BENEFICIAL OWNERSHIP 3
3 Definitions 3
4 Imposition of duty on certain transactions concerning dutiable
property 3
5 Imposition of duty on dutiable transactions that are not transfers 5
6 What is dutiable property? 6
7 What is the dutiable value of dutiable property? 7
8 Subsequent transfer not dutiable if duty paid on lease 7
57 Subsequent transfer not dutiable if duty paid on lease 7
PART 3--REDUCTION IN PERIOD FOR PAYMENT OF DUTY
AFTER LIABILITY ARISES 8
9 Reduction in period for payment of duty after liability arises--
Chapter 2 8
10 Reduction in period for payment of duty after liability arises--
Chapter 3 8
11 Reduction in period for payment of duty after liability arises--
Chapter 4 9
12 Reduction in period for payment of duty after liability arises--
Chapter 11 9
13 Transitionals 10
29 Duties Amendment Act 2008--Chapter 2--dutiable
transactions 10
30 Duties Amendment Act 2008--Chapter 3--relevant
acquisitions 10
31 Duties Amendment Act 2008--Chapter 3--dutiable
entitlements 11
32 Duties Amendment Act 2008--Chapter 3--allotment
of shares 11
561308B.I-3/12/2008 i BILL LA INTRODUCTION 3/12/2008
Clause Page
33 Duties Amendment Act 2008--Chapter 3--land use
entitlement 11
34 Duties Amendment Act 2008--Chapter 4--transfer
of dutiable property 12
35 Duties Amendment Act 2008--Chapter 11--interest
on duty payable 12
PART 4--REPEAL OF AMENDING ACT 13
14 Repeal of amending Act 13
ENDNOTES 14
561308B.I-3/12/2008 ii BILL LA INTRODUCTION 3/12/2008
PARLIAMENT OF VICTORIA
Introduced in the Assembly
Duties Amendment Bill 2008
A Bill for an Act to amend the Duties Act 2000 and for other
purposes.
The Parliament of Victoria enacts:
PART 1--PRELIMINARY
1 Purpose
The main purpose of this Act is to amend the
Duties Act 2000--
5 (a) to ensure that leases are not used as a
mechanism for avoiding duty;
(b) to clarify when duty is payable in relation to
changes in beneficial ownership;
(c) to reduce the time period for the payment of
10 duty from the liability date to 14 days.
561308B.I-3/12/2008 1 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 1--Preliminary
s. 2
2 Commencement
(1) This Act, except Part 2, comes into operation on
the day after the day on which it receives the
Royal Assent.
5 (2) Part 2 is deemed to have come into operation on
21 November 2008.
__________________
561308B.I-3/12/2008 2 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 2--Amendments in Relation to Certain Leases and Beneficial
s. 3
Ownership
PART 2--AMENDMENTS IN RELATION TO CERTAIN
LEASES AND BENEFICIAL OWNERSHIP
3 Definitions
In section 3(1) of the Duties Act 2000 insert the See:
Act No.
5 following definition-- 79/2000.
Reprint No. 6
"lease means a lease of land in Victoria or an as at
25 July 2007
agreement for a lease of land in Victoria;". and
amending
Act Nos
12/2008 and
31/2008.
LawToday:
www.
legislation.
vic.gov.au
4 Imposition of duty on certain transactions
concerning dutiable property
10 (1) For section 7(1)(b)(ii) of the Duties Act 2000
substitute--
"(ii) a surrender of dutiable property;".
(2) For section 7(1)(b)(v) of the Duties Act 2000
substitute--
15 "(v) the granting of a lease for which any
consideration other than rent reserved is paid
or agreed to be paid, either in respect of the
lease or in respect of--
(A) a right to purchase the land or a right to
20 a transfer of the land;
(B) an option to purchase the land or an
option for the transfer of the land;
(C) a right of first refusal in respect of the
sale or transfer of the land;
25 (D) any other lease, licence, contract,
scheme or arrangement by which the
lessee, or an associated person of the
561308B.I-3/12/2008 3 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 2--Amendments in Relation to Certain Leases and Beneficial
s. 4
Ownership
lessee, obtains any right or interest in
the land that is the subject of the lease
other than the leasehold estate;
(va) the transfer or assignment of a lease for
5 which any consideration is paid or agreed to
be paid, either in respect of the transfer or
assignment or in respect of--
(A) a right to purchase the land or a right to
a transfer of the land;
10 (B) an option to purchase the land or an
option for the transfer of the land;
(C) a right of first refusal in respect of the
sale or transfer of the land;
(D) any other lease, licence, contract,
15 scheme or arrangement by which the
transferee or assignee, or an associated
person of the transferee or assignee,
obtains any right or interest in the land
that is the subject of the lease other than
20 the leasehold estate;".
(3) In section 7(3) of the Duties Act 2000, after
"dutiable transaction" insert "unless it is a
transaction referred to in subsection (1)(b)(va)".
(4) In section 7(4) of the Duties Act 2000 insert the
25 following definitions--
"beneficial ownership includes, but is not limited
to, ownership of dutiable property by a
person as trustee of a trust;
change in beneficial ownership includes, but is
30 not limited to--
(a) the creation of dutiable property;
(b) the extinguishment of dutiable
property;
561308B.I-3/12/2008 4 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 2--Amendments in Relation to Certain Leases and Beneficial
s. 5
Ownership
(c) a change in equitable interests in
dutiable property;
(d) dutiable property becoming the subject
of a trust;
5 (e) dutiable property ceasing to be the
subject of a trust;".
(5) In section 7(4) of the Duties Act 2000, for the
definition of excluded transaction substitute--
"excluded transaction means--
10 (a) the purchase, gift, allotment or issue of
a unit in a unit trust scheme;
(b) the cancellation, redemption or
surrender of a unit in a unit trust
scheme;
15 (c) the abrogation or alteration of a right
pertaining to a unit in a unit trust
scheme;
(d) the payment of an amount owing for a
unit in a unit trust scheme;
20 (e) any combination of the transactions
referred to in paragraphs (a), (b), (c)
and (d).".
5 Imposition of duty on dutiable transactions that are
not transfers
25 In section 8(2) of the Duties Act 2000, in the
Table--
(a) in Column 2 of the item relating to
"surrender", for "estate" substitute "dutiable
property";
561308B.I-3/12/2008 5 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 2--Amendments in Relation to Certain Leases and Beneficial
s. 6
Ownership
(b) for the item relating to "granting of lease
with covenant for future transfer or sale"
substitute--
"granting of the leased the lessee when the
a lease for property lease is
consideration granted
other than
rent reserved
transfer or the leased the when the
assignment property transferee lease is
of lease or assignee transferred or
assigned";
(c) in Column 2 of the item relating to "any
5 other transaction that results in a change in
beneficial ownership of dutiable property"
omit "(but only to the extent of the change in
beneficial ownership)".
6 What is dutiable property?
10 (1) Section 10(1)(a)(iv) of the Duties Act 2000 is
repealed.
(2) After section 10(1)(a) of the Duties Act 2000
insert--
"(ab) a lease, if the lease is of a kind referred to in
15 section 7(1)(b)(v) or 7(1)(b)(va);
(ac) an interest in any dutiable property referred
to in paragraph (a) or (ab) other than--
(i) a security interest;
(ii) an option to purchase;
20 (iii) a lease other than a lease referred to in
paragraph (ab);".
561308B.I-3/12/2008 6 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 2--Amendments in Relation to Certain Leases and Beneficial
s. 7
Ownership
7 What is the dutiable value of dutiable property?
After section 20(2) of the Duties Act 2000
insert--
"(3) Despite subsection (1), the dutiable value of
5 a lease referred to in section 10(1)(ab) that is
the subject of a dutiable transaction is the
greater of--
(a) any consideration (being the amount of
a monetary consideration or the value
10 of a non-monetary consideration) other
than rent reserved that is paid or agreed
to be paid; and
(b) the unencumbered value of the land that
is subject to the lease.".
15 8 Subsequent transfer not dutiable if duty paid on
lease
For section 57 of the Duties Act 2000
substitute--
"57 Subsequent transfer not dutiable if duty
20 paid on lease
If duty is paid under this Chapter in respect
of a dutiable transaction referred to in section
7(1)(b)(v) or 7(1)(b)(va), no duty is
chargeable under this Chapter in respect of--
25 (a) the subsequent transfer of the land to
the lessee, transferee or assignee; or
(b) the enlargement of a term into fee
simple under section 153 of the
Property Law Act 1958.".
__________________
561308B.I-3/12/2008 7 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 3--Reduction in Period for Payment of Duty after Liability Arises
s. 9
PART 3--REDUCTION IN PERIOD FOR PAYMENT OF
DUTY AFTER LIABILITY ARISES
9 Reduction in period for payment of duty after
liability arises--Chapter 2
5 (1) In section 14(2) of the Duties Act 2000, for
"3 months" substitute "14 days".
(2) In section 14(3) of the Duties Act 2000, for
"3 months" (where twice occurring) substitute
"14 days".
10 (3) In section 15(1) of the Duties Act 2000, for
"3 months" substitute "14 days".
(4) In section 16 of the Duties Act 2000, for
"3 months" substitute "14 days".
(5) In section 22B(4) of the Duties Act 2000, for
15 "3 months" substitute "14 days".
(6) In the note after section 57M(2) of the Duties Act
2000, for "3 months" substitute "14 days".
(7) In section 69C(2) of the Duties Act 2000, for
"3 months" substitute "14 days".
20 10 Reduction in period for payment of duty after
liability arises--Chapter 3
(1) In section 80(1) of the Duties Act 2000, for
"3 months" substitute "14 days".
(2) In section 81 of the Duties Act 2000, for
25 "3 months" substitute "14 days".
(3) In section 89A(3)(c) of the Duties Act 2000, for
"3 months" substitute "14 days".
561308B.I-3/12/2008 8 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 3--Reduction in Period for Payment of Duty after Liability Arises
s. 11
(4) In section 89B(2) of the Duties Act 2000--
(a) in paragraph (a), for "28 days" substitute
"14 days";
(b) in paragraph (e), for "3 months" substitute
5 "14 days".
(5) In section 89C(2)(d) of the Duties Act 2000, for
"3 months" substitute "14 days".
(6) In section 89I(4) of the Duties Act 2000, for
"3 months" substitute "14 days".
10 (7) In section 92 of the Duties Act 2000, for
"3 months" substitute "14 days".
(8) In section 99 of the Duties Act 2000, for
"3 months" substitute "14 days".
(9) In section 101(2) of the Duties Act 2000, for
15 "3 months" substitute "14 days".
(10) In section 103B of the Duties Act 2000, for
"3 months" substitute "14 days".
(11) In section 103D(2) of the Duties Act 2000, for
"3 months" substitute "14 days".
20 11 Reduction in period for payment of duty after
liability arises--Chapter 4
In section 107(3) of the Duties Act 2000, for
"3 months" substitute "14 days".
12 Reduction in period for payment of duty after
25 liability arises--Chapter 11
In section 250L(3) of the Duties Act 2000, for
"3 months" substitute "14 days".
561308B.I-3/12/2008 9 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 3--Reduction in Period for Payment of Duty after Liability Arises
s. 13
13 Transitionals
In Schedule 2 to the Duties Act 2000, after
clause 28 insert--
"29 Duties Amendment Act 2008--
5 Chapter 2--dutiable transactions
Despite the amendments made to this
Act in respect of dutiable transactions
by section 9 of the Duties Amendment
Act 2008, this Act continues to apply as
10 if those amendments had not been made
in respect of a dutiable transaction that
occurred before the commencement of
section 9.
30 Duties Amendment Act 2008--
15 Chapter 3--relevant acquisitions
(1) Despite the amendments made to this
Act in respect of relevant acquisitions
by section 10 of the Duties
Amendment Act 2008, this Act
20 continues to apply as if those
amendments had not been made in
respect of a relevant acquisition made
before the commencement of
section 10.
25 (2) Despite the amendment made to this
Act in respect of notices of
disqualifying circumstance by section
10 of the Duties Amendment Act
2008, this Act continues to apply as if
30 that amendment had not been made in
respect of such a notice if the
disqualifying circumstance occurred
before the commencement of
section 10.
561308B.I-3/12/2008 10 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 3--Reduction in Period for Payment of Duty after Liability Arises
s. 13
31 Duties Amendment Act 2008--
Chapter 3--dutiable entitlements
Despite the amendment made to this
Act in respect of dutiable entitlements
5 by section 10 of the Duties
Amendment Act 2008, this Act
continues to apply as if that amendment
had not been made in respect of a
dutiable entitlement acquired before the
10 commencement of section 10.
32 Duties Amendment Act 2008--
Chapter 3--allotment of shares
Despite the amendments made to this
Act in respect of allotments of shares to
15 which Part 4 of Chapter 3 applies by
section 10 of the Duties Amendment
Act 2008, this Act continues to apply as
if those amendments had not been made
in respect of shares allotted before the
20 commencement of section 10.
33 Duties Amendment Act 2008--
Chapter 3--land use entitlement
Despite the amendments made to this
Act in respect of land use entitlements
25 acquired by the allotment of shares or
the issue of units to any person by
section 10 of the Duties Amendment
Act 2008, this Act continues to apply as
if those amendments had not been made
30 in respect of a land use entitlement
acquired before the commencement of
section 10.
561308B.I-3/12/2008 11 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 3--Reduction in Period for Payment of Duty after Liability Arises
s. 13
34 Duties Amendment Act 2008--
Chapter 4--transfer of dutiable property
Despite the amendment made to this
Act in respect of transfers of dutiable
5 property by section 11 of the Duties
Amendment Act 2008, this Act
continues to apply as if that amendment
had not been made in respect of a
transfer of dutiable property that
10 became the property of the receiving
body before the commencement of
section 11.
35 Duties Amendment Act 2008--
Chapter 11--interest on duty payable
15 Despite the amendment made to section
250L(3) by section 12 of the Duties
Amendment Act 2008, relevant day
means the day that is 3 months after the
day on which the transaction occurred
20 or the relevant acquisition was made in
respect of which the exemption was
granted if the transaction occurred or
the relevant acquisition was made
before the commencement of
25 section 12.".
__________________
561308B.I-3/12/2008 12 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Part 4--Repeal of Amending Act
s. 14
PART 4--REPEAL OF AMENDING ACT
14 Repeal of amending Act
This Act is repealed on the first anniversary of its
commencement.
5 Note
The repeal of this Act does not affect the continuing operation of
the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
561308B.I-3/12/2008 13 BILL LA INTRODUCTION 3/12/2008
Duties Amendment Bill 2008
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
561308B.I-3/12/2008 14 BILL LA INTRODUCTION 3/12/2008
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