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PARLIAMENT OF VICTORIA
National Taxation Reform (Consequential
Provisions) Act 2000
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purposes 1
2. Commencement 2
3. Definitions 2
PART 2--INTERGOVERNMENTAL AGREEMENT 4
4. Intergovernmental Agreement 4
PART 3--PAYMENT OF GST EQUIVALENTS BY STATE
ENTITIES 5
5. Voluntary GST equivalent payments 5
6. Directions to State entities 5
PART 4--GOVERNMENT FEES AND CHARGES 6
7. Fees set by statutory rules may be increased 6
PART 5--FINANCIAL INSTITUTIONS DUTY 8
8. Deemed receipts 8
9. New section 17 inserted 8
17. Liability to duty discontinued 8
10. Exempt bank accounts 9
11. New section 32A inserted 9
32A. Application of this Part limited 9
PART 6--PAY-ROLL TAX ACT 1971 11
12. Definitions 11
13. GST not to be included in deemed wages in certain
circumstances 11
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Clause Page
PART 7--STAMPS ACT 1958 13
14. Definitions 13
15. Duty on transfers of quoted marketable securities discontinued 14
16. Exclusion of GST from rental business duty 15
17. Duty on registration and transfer of motor vehicles 16
18. New section 137AJ substituted 17
137AJ. Endorsement of duty on application 17
19. Registered used car dealers 17
20. Marketable security duty 18
21. Exclusion of GST from duty on cattle sales 19
22. Duty on sales of sheep and goats 19
23. Exclusion of GST from duty on pig sales 19
24. Motor vehicle duty 19
25. Repeal of unproclaimed subdivision (5A) of Division 3 of
Part II 19
PART 8--ABOLITION OF STAMP DUTY ON BOOKMAKERS'
STATEMENTS 21
26. Abolition of duty on bookmakers' statements 21
27. New section 168 inserted 21
168. Transitional provision--repeal of duty on bookmakers'
statements 21
PART 9--GAMBLING TAXES AND PAYMENTS 22
28. Club Keno Act 1993 22
29. Gaming and Betting Act 1994 23
30. Gaming Machine Control Act 1991 24
31. Gaming Machine Control Act 1991--statute law revision 28
32. Tattersall Consultations Act 1958 29
PART 10--OTHER AMENDMENTS 30
33. Cessation of State off-road diesel subsidies 30
34. Subsidy for cellar door and mail order wine sales 30
35. Duty on sale of livestock 31
__________________
SCHEDULE--Intergovernmental Agreement on the Reform of
CommonwealthState Financial Relations 32
NOTES 60
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PARLIAMENT OF VICTORIA
Initiated in Assembly 1 March 2000
A BILL
to record the State's intention to give effect to the Intergovernmental
Agreement on the Reform of CommonwealthState Financial
Relations and to enable State entities to make GST equivalent
payments, to discontinue financial institutions duty and stamp duty on
certain share transfers and on bookmakers' statements, to alter
government fees and charges to take GST into account, to amend
various Acts as a consequence of national taxation reform and for
other purposes.
National Taxation Reform
(Consequential Provisions) Act 2000
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purposes
The purposes of this Act are--
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s. 2
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(a) to record the State's intention to give effect
to the Intergovernmental Agreement on the
Reform of CommonwealthState Financial
Relations;
5 (b) to enable State entities to make GST
equivalent payments;
(c) to amend the Financial Institutions Duty
Act 1982 and the Stamps Act 1958 to
discontinue financial institutions duty and
10 stamp duty on certain share transfers and on
bookmakers' statements;
(d) to alter government fees and charges to take
GST into account;
(e) to amend various Acts as a consequence of
15 national taxation reform.
2. Commencement
(1) This Act, except Parts 8 and 9 and sections 17, 18,
19, 24, 33 and 34, comes into operation on the day
after the day on which it receives the Royal
20 Assent.
(2) Section 31 is deemed to have come into operation
on 17 February 1999.
(3) The remaining provisions of Part 9 and sections
17, 18, 19, 24, 33 and 34 come into operation on
25 1 July 2000.
(4) Part 8 comes into operation on 3 July 2000.
3. Definitions
In this Act--
"Commissioner of Taxation" means the person
30 holding office for the time being as
Commissioner of Taxation under the
Taxation Administration Act 1953 of the
Commonwealth;
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"GST" has the same meaning as it has in the
A New Tax System (Goods and Services
Tax) Act 1999 of the Commonwealth;
"GST Imposition Acts" means the following
5 Acts of the Commonwealth--
(a) A New Tax System (Goods and
Services Tax Imposition--Customs)
Act 1999;
(b) A New Tax System (Goods and
10 Services Tax Imposition--Excise) Act
1999;
(c) A New Tax System (Goods and
Services Tax Imposition--General) Act
1999;
15 "Intergovernmental Agreement" means the
Intergovernmental Agreement on the Reform
of CommonwealthState Financial Relations
set out in the Schedule;
"State entity" means a person that is not liable
20 for GST that it would be liable for if--
(a) the imposition of that GST were not
prevented by section 114 of the
Commonwealth Constitution; and
(b) section 5 of each of the GST Imposition
25 Acts had not been enacted.
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PART 2--INTERGOVERNMENTAL AGREEMENT
4. Intergovernmental Agreement
(1) A copy of the Intergovernmental Agreement on
the Reform of CommonwealthState Financial
5 Relations is set out in the Schedule.
(2) It is the intention of the State to comply with, and
give effect to, the Intergovernmental Agreement.
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PART 3--PAYMENT OF GST EQUIVALENTS BY STATE
ENTITIES
5. Voluntary GST equivalent payments
A State entity may pay to the Commissioner of
5 Taxation amounts representing amounts that
would have been payable for GST if--
(a) the imposition of that GST were not
prevented by section 114 of the
Commonwealth Constitution; and
10 (b) section 5 of each of the GST Imposition Acts
had not been enacted--
and may do things of a kind that it would be
necessary or expedient for it to do if it were liable
for that GST.
15 6. Directions to State entities
(1) The Treasurer may give a State entity written
directions that it--
(a) make payments that it is authorised by
section 5 to make;
20 (b) do anything else that it is authorised by that
section to do.
(2) The Treasurer, by a further written direction given
to the State entity, may amend or revoke a
direction previously given under this section.
25 (3) Requirements in a direction under this section
may relate to things that have happened before the
direction was given.
(4) A State entity is to comply with directions under
this section despite any other written law.
30 _______________
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PART 4--GOVERNMENT FEES AND CHARGES
7. Fees set by statutory rules may be increased
(1) The Governor in Council, on the recommendation
of the Minister, may make regulations providing
5 for a fee or charge set by a statutory rule specified
in the regulations to be increased by an amount or
a percentage specified in the regulations.
(2) Except as provided in sub-section (6), the increase
in the fee or charge cannot exceed the amount of
10 GST payable on the supply to which the fee or
charge relates.
(3) The Minister may make a recommendation under
sub-section (1) only if he or she considers that the
increase in the fee or charge is necessary to cover
15 the increased cost of the supply to which the fee
or charge relates as a result of the implementation
of--
(a) the A New Tax System (Goods and Services
Tax) Act 1999 of the Commonwealth; and
20 (b) the GST Imposition Acts; and
(c) the Intergovernmental Agreement.
(4) Part 2 of the Subordinate Legislation Act 1994
does not apply to regulations made under this
section.
25 (5) A fee or charge may be increased only once under
this section.
(6) In determining the amount of GST payable on the
supply to which a fee or charge relates for the
purposes of regulations under this section, the fee
30 or charge is to be taken to be payable in relation to
supplies made wholly on or after 1 July 2000.
(7) Despite sub-section (6), the increase in a fee or
charge under this section does not apply to that
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part of the supply to which the fee or charge
relates that is in respect of the period before 1 July
2000 and any such fee or charge must be reduced
accordingly.
5 (8) In this section--
"GST" includes notional GST of the kind for
which payments may be made under Part 3
by a State entity.
_______________
10
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Act No.
PART 5--FINANCIAL INSTITUTIONS DUTY
No. 9850. 8. Deemed receipts
Reprint No. 4
(1) At the end of section 8 of the Financial
as at
9 December
Institutions Duty Act 1982 insert--
1999. Further
amended by
5 "(2) Sub-section (1) does not apply to a receipt of
No. 34/1999.
consideration after 30 June 2001.".
(2) In section 9 of the Financial Institutions Duty
Act 1982, after sub-section (2) insert--
"(3) This section does not apply to an amount
10 deposited or credited to an account, or
transferred or transmitted to or for the credit
of an account, after 30 June 2001.".
(3) In section 10 of the Financial Institutions Duty
Act 1982, for sub-section (2) substitute--
15 "(2) Sub-section (1) does not apply--
(a) in any case where section 8 or 9 applies
in relation to the amount credited; or
(b) to an amount credited after 30 June
2001.".
20 9. New section 17 inserted
After the heading to Part III of the Financial
Institutions Duty Act 1982 insert--
"17. Liability to duty discontinued
(1) Liability to pay financial institutions duty in
25 respect of a receipt of money does not arise
under section 18(1) if the money is received
after 30 June 2001.
(2) Liability to pay financial institutions duty in
respect of broker receipts does not arise
30 under section 18(2A) if the broker receipts
are received or retained after 30 June 2001.
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(3) Liability to pay financial institutions duty in
respect of the average daily liability during a
month of a registered short-term money
market operator does not arise under
5 section 20 in respect of any month after June
2001.
(4) Liability to pay financial institutions duty in
respect of a deposit of money does not arise
under section 21(1) if the money is deposited
10 after 30 June 2001.".
10. Exempt bank accounts
In section 32 of the Financial Institutions Duty
Act 1982, after sub-section (3) insert--
"(4) After 30 June 2001, sub-section (1) applies
15 only in relation to a financial year that ended
on or before that day and to amounts paid
into or out of exempt bank accounts on or
before that day.
(5) If the Commissioner has approved a year
20 ending on a date other than 30 June as a
financial year, the financial year that, but for
this sub-section, would have ended after
30 June 2001 is to be taken to have ended on
that day.".
25 11. New section 32A inserted
After the heading to Part V of the Financial
Institutions Duty Act 1982 insert--
"32A. Application of this Part limited
(1) An application for registration as a financial
30 institution is not required to be made under
section 33(1) or (4) after 30 June 2001 and
cannot be made under section 33(2) after that
day.
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(2) Sections 35 and 35A do not require a return
to be furnished relating to a month ending
after 30 June 2001.
(3) An application for registration as a short-
5 term money market operator cannot be made
under section 37(1) after 30 June 2001.
(4) Section 38 does not require a return to be
furnished relating to a month ending after
30 June 2001.
10 (5) An application for registration as a depositor
is not required to be made under
section 40(1) or (4) after 30 June 2001.
(6) Section 42 does not require a return to be
furnished relating to a month ending after
15 30 June 2001.
(7) Sections 36, 39 and 43 apply only in relation
to a period for which a return was required.".
_______________
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Act No.
PART 6--PAY-ROLL TAX ACT 1971
No. 8154.
12. Definitions
Reprint No. 7
In section 3(1) of the Pay-roll Tax Act 1971, as at
1 September
after the definition of "fringe benefit" insert-- 1999. Further
amended by
5 ' "GST" has the same meaning as it has in the A 34/1999.
New Tax System (Goods and Services Tax)
Act 1999 of the Commonwealth except that
it includes notional GST of the kind for
which payments may be made under Part 3
10 of the National Taxation Reform
(Consequential Provisions) Act 2000 by a
person that is a State entity within the
meaning of that Act;'.
13. GST not to be included in deemed wages in certain
15 circumstances
(1) In section 3C(6) of the Pay-roll Tax Act 1971--
(a) at the end of paragraphs (e) and (f) omit
"and";
(b) after paragraph (g) insert--
20 "(h) a reference in sub-section (2)(c) to an
amount paid or payable by an employer
does not include a reference to an
amount in respect of any GST payable
on the supply to which the amount paid
25 or payable by the employer relates.".
(2) In section 3D(2)(c) of the Pay-roll Tax Act 1971,
for "sub-section (3)" substitute "sub-sections
(2A) and (3)".
(3) After section 3D(2) of the Pay-roll Tax Act 1971
30 insert--
"(2A) An amount referred to in sub-section (2)(c)
paid or payable in connection with an
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employment agency contract does not
include an amount in respect of any GST
payable on the supply to which the
employment agency contract relates.".
5 (4) After section 3F(1) of the Pay-roll Tax Act 1971
insert--
"(1A) The Commissioner cannot include in a
determination under sub-section (1)(c) in
respect of a contract an amount in respect of
10 any GST payable on the supply to which the
contract relates.".
_______________
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Act No.
PART 7--STAMPS ACT 1958
No. 6375.
14. Definitions
Reprint No. 15
(1) In section 3 of the Stamps Act 1958-- as at 1 May
1999. Further
amended by
(a) after the definition of "futures contract"
Nos 32/1999,
5 insert-- 34/1999 and
47/1999.
' "GST" has the same meaning as it has in
the A New Tax System (Goods and
Services Tax) Act 1999 of the
Commonwealth except that it includes
10 notional GST of the kind for which
payments may be made under Part 3 of
the National Taxation Reform
(Consequential Provisions) Act 2000
by a person that is a State entity within
15 the meaning of that Act;';
(b) for the definition of "recognised stock
exchange" substitute--
' "recognised stock exchange" means--
(a) a stock exchange that is a member
20 of the Fédération Internationale
des Bourses de Valeurs; or
(b) the Stock Exchange of Newcastle;
or
(c) a stock exchange prescribed as a
25 recognised stock exchange for the
purposes of this Act;'.
(2) In section 26A(4) of the Stamps Act 1958, in the
definition of "private company", for "listed on"
substitute "quoted on the market operated by".
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15. Duty on transfers of quoted marketable securities
discontinued
(1) In section 55A of the Stamps Act 1958, for sub-
section (1) substitute--
5 "(1) This subdivision does not apply to--
(a) an SCH-regulated transfer to which
subdivision (4AB) applies; or
(b) a transfer of a marketable security or
right in respect of shares--
10 (i) made or executed to perfect a sale
or purchase to which subdivision
(4AA) applies; and
(ii) deemed to be duly stamped in
accordance with that subdivision;
15 or
(c) a transfer after 30 June 2001 of a
marketable security, or right in respect
of shares, quoted on the market
operated by Australian Stock Exchange
20 Limited or a recognised stock
exchange.".
(2) In section 60A of the Stamps Act 1958, for sub-
section (2) substitute--
"(2) This subdivision and subdivision (4AA)
25 apply only to a sale or purchase effected
before 1 July 2001 of a marketable security,
or right in respect of shares--
(a) quoted on the market operated by
Australian Stock Exchange Limited;
30 and
(b) made for a consideration in money or
money's worth of not less than the
unencumbered value of the marketable
security or right in respect of shares.".
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(3) After section 60EA(a) of the Stamps Act 1958
insert--
"(ab) the transfer is made before 1 July 2001;
and".
5 (4) In section 60EJ of the Stamps Act 1958, after
sub-section (5) insert--
"(6) SCH is not required to lodge a return or pay
duty under this section in respect of a month
occurring after June 2001.".
10 (5) In section 60H(1) of the Stamps Act 1958, for
paragraph (a) substitute--
"(a) there is an instrument of transfer on which
duty is payable under this Act and it is not
duly stamped; or".
15 (6) In section 60J(a) of the Stamps Act 1958, after
"made" insert "before 1 July 2001".
(7) In section 62G of the Stamps Act 1958, after
sub-section (2) insert--
"(3) A statement is not required to be lodged
20 under this section in relation to an
entitlement arising after 30 June 2001 to
shares quoted on the market operated by
Australian Stock Exchange Limited or a
recognised stock exchange.".
25 (8) In section 62I(1)(a) and (b) of the Stamps Act
1958, after "Limited" insert "or a recognised
stock exchange".
(9) In section 75I(1)(a) of the Stamps Act 1958, for
"listed on" substitute "quoted on the market
30 operated by".
16. Exclusion of GST from rental business duty
In section 131AC(4) of the Stamps Act 1958--
(a) at the end of paragraph (b) omit "or";
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(b) after paragraph (c)(ii) insert--
"(d) any GST payable on supplies to which
the rental agreements or special rental
agreements relate--".
5 17. Duty on registration and transfer of motor vehicles
(1) In section 137AB(1) of the Stamps Act 1958,
after "make" insert "or lodge".
(2) In section 137AB of the Stamps Act 1958, after
sub-section (2) insert--
10 "(3) A person (other than a registered used car
dealer) who--
(a) acquires a motor car within the
meaning of the Motor Car Traders
Act 1986 from a registered used car
15 dealer; and
(b) lodges an application for transfer of
registration of the motor car under the
Road Safety Act 1986--
must also lodge with the application a copy
20 of the agreement for sale of the motor car
supplied to the person under section 41 of
the Motor Car Traders Act 1986, unless
the application is exempt from duty under
this Act.".
25 (3) In the Stamps Act 1958--
(a) in section 137AD, after "making" insert "or
lodging";
(b) in section 137AH(1), for "the duty required
to be paid on that return" substitute "the
30 amount required to be paid on the return
under section 137AK(1)(b) (if any)".
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18. New section 137AJ substituted
For section 137AJ of the Stamps Act 1958
substitute--
"137AJ. Endorsement of duty on application
5 (1) This section applies if--
(a) a person acquires a motor vehicle or
heavy trailer from a registered used car
dealer; and
(b) the motor vehicle or heavy trailer is
10 registered under the Road Safety Act
1986; and
(c) the acquirer pays to the registered used
car dealer the duty payable on the
application for transfer of registration
15 of the motor vehicle or heavy trailer.
(2) If this section applies, the registered used car
dealer must endorse on the application for
transfer of registration--
(a) the dealer's code number; and
20 (b) a statement that the acquirer has paid to
the registered used car dealer the duty
payable on the application and the
amount of duty paid.
Penalty: 100 penalty units.".
25 19. Registered used car dealers
(1) In section 137AK of the Stamps Act 1958--
(a) in sub-section (1), for paragraph (b)
substitute--
"(b) pay to the Comptroller any amounts
30 received from acquirers of motor
vehicles or heavy trailers during the
preceding month in respect of stamp
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Act No.
duty payable on applications for
transfer of registration of those vehicles
or trailers.";
(b) in sub-section (2), for "duty" substitute "an
5 amount".
(2) Section 137AL of the Stamps Act 1958 is
repealed.
(3) At the end of section 137AM of the Stamps Act
1958 insert--
10 "(2) A person must not endorse on an application
for transfer of registration a statement that
the acquirer has paid to a registered used car
dealer any duty payable on that application
unless the acquirer has paid the duty to the
15 registered used car dealer.
Penalty: 100 penalty units.
(3) A person must not endorse on an application
for transfer of registration an amount of duty
other than the amount of duty actually paid
20 by the acquirer to the registered used car
dealer.
Penalty: 100 penalty units.".
(4) Section 137AQ of the Stamps Act 1958 is
repealed.
25 20. Marketable security duty
(1) In clauses 1(e)(i) and 2(a) in Heading IV(A) in the
Third Schedule to the Stamps Act 1958, for
"listed on the" substitute "quoted on the market
operated by".
30 (2) After clause 2 in Heading IV(A) in the Third
Schedule to the Stamps Act 1958 insert--
"3. Duty is not payable under this Heading on a transfer
after 30 June 2001 of a marketable security, or right
in respect of shares, quoted on the market operated by
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Australian Stock Exchange Limited or a recognised
stock exchange.".
21. Exclusion of GST from duty on cattle sales
In clause (3) in Heading XVII in the Third
5 Schedule to the Stamps Act 1958, after the
definition of "calf" insert--
' "purchase money" for a sale does not include an amount
in respect of any GST payable on the supply to which
the sale relates.'.
10 22. Duty on sales of sheep and goats
In Heading XVIIA in the Third Schedule to the
Stamps Act 1958, after "($0.12)" insert "for each
sheep, goat or carcase sold".
23. Exclusion of GST from duty on pig sales
15 (1) In Heading XVIII in the Third Schedule to the
Stamps Act 1958--
(a) before "Any statement" insert "(1)";
(b) omit 'Under this heading XVIII, "pig"
means any boar sow barrow or sucker.'.
20 (2) At the end of Heading XVIII in the Third
Schedule to the Stamps Act 1958 insert--
'(2) In this Heading--
"pig" means any boar, sow, barrow or sucker;
"purchase money" for a sale does not include an
25 amount in respect of any GST payable on the
supply to which the sale relates.'.
24. Motor vehicle duty
In Heading XXI in the Third Schedule to the
Stamps Act 1958, exemption (4) is repealed.
No. 101/1995.
30 25. Repeal of unproclaimed subdivision (5A) of
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Act No.
Division 3 of Part II
Part 7 of the State Taxation (Further
Amendment) Act 1995 is repealed.
_______________
5
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s. 26
Act No.
PART 8--ABOLITION OF STAMP DUTY ON BOOKMAKERS'
STATEMENTS
26. Abolition of duty on bookmakers' statements
In the Stamps Act 1958--
5 (a) subdivision (12) of Division 3 of Part II is
repealed;
(b) Heading XV in the Third Schedule is
repealed.
27. New section 168 inserted
10 After section 167 of the Stamps Act 1958
insert--
"168. Transitional provision--repeal of duty on
bookmakers' statements
Despite the repeal of subdivision (12) of
15 Division 3 of Part II--
(a) a bookmaker must comply with section
120 as in force immediately before that
repeal, in respect of the weekly period
ending before that repeal;
20 (b) the Comptroller may make an
assessment under section 120(6)(a) in
respect of a weekly period ending
before that repeal;
(c) section 118 continues to apply in
25 relation to betting transactions made in
a weekly period ending before that
repeal, as if it had not been repealed.".
_______________
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s. 28
Act No.
PART 9--GAMBLING TAXES AND PAYMENTS
No. 56/1993. 28. Club Keno Act 1993
Reprint No. 2
(1) In section 3 of the Club Keno Act 1993, after the
as at
17 February
definition of "gaming revenue" insert--
1999. Further
amended by
5 ' "GST" has the same meaning as it has in the A
No. 53/1999.
New Tax System (Goods and Services Tax)
Act 1999 of the Commonwealth;'.
(2) In section 7(2) of the Club Keno Act 1993--
(a) in paragraph (a), for "331/3 per centum"
10 substitute "24·24%";
(b) for paragraph (b) substitute--
"(b) to the venue operator of an approved
venue in which tickets in club keno
games are sold during the week--
15 (i) if GST is payable on the supply to
which the amount to be paid under
this paragraph relates, an amount
calculated in accordance with the
formula--
GR × 11 V
×
20
30 T
where--
GR is the gaming revenue for the
week;
T is the total amount received by
25 the participants for club keno
games conducted during the
week;
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V is the amount received at the
approved venue for club keno
games conducted during the
week;
5 (ii) if GST is not payable on the
supply to which the amount to be
paid under this paragraph relates,
an amount calculated in
accordance with the formula--
GR V
×
10
3 T
where--
GR is the gaming revenue for the
week;
T is the total amount received by
15 the participants for club keno
games conducted during the
week;
V is the amount received at the
approved venue for club keno
20 games conducted during the
week.".
(3) In section 7 of the Club Keno Act 1993, after
sub-section (6) insert--
"(7) This section as amended by section 28 of the
25 National Taxation Reform (Consequential
Provisions) Act 2000 applies in respect of a
week commencing after 1 July 2000.".
No. 37/1994.
29. Gaming and Betting Act 1994
Reprint No. 2
(1) In section 45(1) of the Gaming and Betting Act as at
10 February
30 1994, for "28·2%" substitute "19·11%". 2000. Further
amended by
(2) In section 45 of the Gaming and Betting Act No. 41/1999.
1994, after sub-section (4) insert--
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"(5) This section as amended by section 29 of the
National Taxation Reform (Consequential
Provisions) Act 2000 applies to amounts
deducted in respect of 1 July 2000 and any
5 subsequent day.".
(3) In section 74(1) of the Gaming and Betting Act
1994, for "28·2%" substitute "19·11%".
(4) In section 74 of the Gaming and Betting Act
1994, after sub-section (4) insert--
10 "(5) This section as amended by section 29 of the
National Taxation Reform (Consequential
Provisions) Act 2000 applies to amounts
deducted and fractions retained in respect of
1 July 2000 and any subsequent day.".
15 (5) In section 77 of the Gaming and Betting Act
1994--
(a) in sub-section (1), for "20%" substitute
"10·91%";
(b) in sub-section (2), for "28·2%" substitute
20 "19·11%".
(6) In section 77 of the Gaming and Betting Act
1994, after sub-section (5) insert--
"(6) This section as amended by section 29 of the
National Taxation Reform (Consequential
25 Provisions) Act 2000 applies in respect of a
period commencing on or after 1 July
2000.".
No. 53/1991. 30. Gaming Machine Control Act 1991
Reprint No. 6
(1) In section 136 of the Gaming Machine Control
as at
10 February
30 Act 1991, for sub-section (3) substitute--
2000. Further
amended by
"(3) The following are the amounts to be paid
Nos 117/1993,
90/1997 and under this sub-section--
41/1999.
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(a) to the venue operator of an approved
venue in respect of which a licence
referred to in section 12A(1)(b) or (d) is
in force and at which a gaming machine
5 of the gaming operator is played--
(i) in the case of the holder of a
gaming operator's licence under
Part 3 or a company declared
under section 3A to be an operator
10 in relation to such a licence--the
prescribed percentage of the total
daily net cash balances during that
period of gaming machines of the
gaming operator at the venue;
15 (ii) in the case of the holder of a
gaming licence under the Gaming
and Betting Act 1994--
(A) if GST is payable on the
supply to which the amount
20 to be paid under this sub-
paragraph relates--362/3% of
the total daily net cash
balances during that period
of gaming machines of the
25 gaming operator at the
venue;
(B) if GST is not payable on the
supply to which the amount
to be paid under this sub-
paragraph relates--331/3% of
30
the total daily net cash
balances during that period
of gaming machines of the
gaming operator at the
35 venue;
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(b) to the venue operator of an approved
venue in respect of which a licence
referred to in section 12A(1)(a) is in
force and at which a gaming machine
5 of the gaming operator is played--
(i) in the case of the holder of a
gaming operator's licence under
Part 3 or a company declared
under section 3A to be an operator
10 in relation to such a licence--the
prescribed percentage of the total
daily net cash balances during that
period of gaming machines of the
gaming operator at the venue;
15 (ii) in the case of the holder of a
gaming licence under the Gaming
and Betting Act 1994--
(A) if GST is payable on the
supply to which the amount
20 to be paid under this sub-
paragraph relates--27·5% of
the total daily net cash
balances during that period
of gaming machines of the
25 gaming operator at the
venue;
(B) if GST is not payable on the
supply to which the amount
to be paid under this sub-
30 paragraph relates--25% of
the total daily net cash
balances during that period
of gaming machines of the
gaming operator at the
35 venue;
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(c) to the Authority to be paid into the
Consolidated Fund--
(i) in the case of the holder of a
gaming operator's licence under
5 Part 3 or a company declared
under section 3A to be an operator
in relation to such a licence--the
prescribed percentage of the total
daily net cash balances during that
10 period of gaming machines of the
gaming operator at the venue in
respect of which a licence referred
to in section 12A(1)(a) is in force;
(ii) in the case of the holder of a
15 gaming licence under the Gaming
and Betting Act 1994--81/3% of
the total daily net cash balances
during that period of gaming
machines of the gaming operator
20 at the venue in respect of which a
licence referred to in section
12A(1)(a) is in force;
(d) to the Authority to be paid into the
Consolidated Fund--
25 (i) in the case of the holder of a
gaming operator's licence under
Part 3 or a company declared
under section 3A to be an operator
in relation to such a licence--the
30 prescribed percentage of the total
daily net cash balances during that
period of all gaming machines of
the gaming operator at approved
venues;
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(ii) in the case of the holder of a
gaming licence under the Gaming
and Betting Act 1994--24·24%
of the total daily net cash balances
5 during that period of all gaming
machines of the gaming operator
at approved venues.".
(2) In section 136 of the Gaming Machine Control
Act 1991--
10 (a) sub-sections (3C) and (3D) are repealed;
(b) in sub-section (5), after the definition of
"daily net cash balance" insert--
' "GST" has the same meaning as it has in
the A New Tax System (Goods and
15 Services Tax) Act 1999 of the
Commonwealth.'.
31. Gaming Machine Control Act 1991--statute law
revision
(1) In section 136(3) of the Gaming Machine
20 Control Act 1991--
(a) in paragraph (a), for "12A(1)(c)" substitute
"12A(1)(b)";
(b) in paragraph (b), for "12A(1)(a) or (b)"
substitute "12A(1)(a)";
25 (c) in paragraph (c), for "12A(1)(a) or (b)"
substitute "12A(1)(a)".
(2) In section 136A of the Gaming Machine Control
Act 1991--
(a) for "12A(1)(c)" (wherever occurring)
30 substitute "12A(1)(b)";
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(b) for "12A(1)(a) or (b)" substitute
"12A(1)(a)".
No. 6390.
32. Tattersall Consultations Act 1958
Reprint No. 7
(1) In section 3 of the Tattersall Consultations Act as at
24 November
5 1958, after the definition of "Director" insert-- 1998. Further
amended by
' "GST" has the same meaning as it has in the Nos 4/1999,
46/1998 (as
A New Tax System (Goods and Services
amended by
Tax) Act 1999 of the Commonwealth;'. No. 12/1999),
12/1999,
(2) In section 6(1) of the Tattersall Consultations 47/1999 and
53/1999.
10 Act 1958--
(a) in paragraph (a), for "36 per centum"
substitute "32·36%";
(b) in paragraph (b), for "34 per centum"
substitute "29·46%".
15 (3) In section 12 of the Tattersall Consultations Act
1958, after sub-section (3) insert--
"(4) This Act as amended by section 32 of the
National Taxation Reform (Consequential
Provisions) Act 2000 applies to
20 Consultations and soccer football pools
conducted on or after 1 July 2000.".
_______________
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PART 10--OTHER AMENDMENTS
No. 9272. 33. Cessation of State off-road diesel subsidies
Reprint No. 4
In the Business Franchise (Petroleum Products)
as at 19
March 1998.
Act 1979--
Further
amended by
5 (a) in section 2(1), the definition of "exemption
No. 103/1998.
certificate" is repealed;
(b) in section 17(1), paragraphs (a) and (b) are
repealed;
(c) in section 18(1), for "section 17(1)(a), (b) or
10 (c)" substitute "section 17(1)(c)";
(d) sections 19, 20, 20A and 20B are repealed.
No. 94/1998. 34. Subsidy for cellar door and mail order wine sales
Amended by
(1) In section 177(1) of the Liquor Control Reform
No. 24/1999.
Act 1998, for "sales taxes" substitute "taxes".
15 (2) In section 179 of the Liquor Control Reform
Act 1998, for sub-section (1) substitute--
"(1) A person who is in a class of persons
determined by the Commissioner of State
Revenue who hold, or have held, licences
20 must make a record of sales and purchases of
liquor and keep each record for a period of
5 years after it was made.
(1A) A determination of the Commissioner of
State Revenue for the purposes of sub-
25 section (1)--
(a) must be published in the Government
Gazette and in a newspaper generally
circulating in Victoria;
(b) takes effect on the date it is published
30 or on the later date specified in it.".
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35. Duty on sale of livestock No. 115/1994.
Reprint No. 3
(1) In section 3 of the Livestock Disease Control as at
Act 1994, after the definition of "goat" insert-- 13 January
2000.
' "GST" has the same meaning as it has in the
5 A New Tax System (Goods and Services
Tax) Act 1999 of the Commonwealth except
that it includes notional GST of the kind for
which payments may be made under Part 3
of the National Taxation Reform
10 (Consequential Provisions) Act 2000 by a
person that is a State entity within the
meaning of that Act;'.
(2) In section 92 of the Livestock Disease Control
Act 1994, after sub-section (3) insert--
15 '(4) In this section--
"purchase money" for a sale does not
include any amount in respect of any
GST payable on the supply to which
the sale relates.'.
20 __________________
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SCHEDULE
Section 4
INTERGOVERNMENTAL AGREEMENT ON THE REFORM
OF COMMONWEALTHSTATE FINANCIAL RELATIONS
5 THE COMMONWEALTH OF AUSTRALIA
THE STATE OF NEW SOUTH WALES
THE STATE OF VICTORIA
THE STATE OF QUEENSLAND
THE STATE OF WESTERN AUSTRALIA
10 THE STATE OF SOUTH AUSTRALIA
THE STATE OF TASMANIA
THE AUSTRALIAN CAPITAL TERRITORY, AND
THE NORTHERN TERRITORY OF AUSTRALIA
WHEREAS
15 (1) the Special Premiers' Conference on 13 November 1998
developed principles for the reform of Commonwealth
State financial relations;
(2) the Commonwealth, States and Territories are in agreement
that the current financial relationship between levels of
20 government must be reformed to facilitate a stronger and
more productive federal system for the new millennium;
(3) while a majority of the States and Territories support the
introduction of the Goods and Services Tax (GST), the
agreement of New South Wales, Queensland and Tasmania
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to the reform of CommonwealthState financial relations
does not imply their in-principle endorsement of the GST;
(4) an Agreement was reached between the Commonwealth and
the States and Territories on the reform of Commonwealth
5 State financial relations on 9 April 1999;
(5) this revised Agreement was made necessary by the changes
to the Commonwealth Government's A New Tax System
(ANTS) package announced by the Prime Minister on
28 May 1999; and
10 (6) this revised Agreement supersedes the previous Agreement
of 9 April 1999:
IT IS HEREBY AGREED:
PART 1--PRELIMINARY
Commencement Clause
15 1. This Agreement will commence between the
Commonwealth, the States and the Territories on 1 July
1999 unless otherwise agreed by the Parties.
Objectives
2. The objectives of the reforms set down in this agreement
20 include:
(i) the achievement of a new national tax system,
including the elimination of a number of existing
inefficient taxes which are impeding economic
activity;
25 (ii) the provision to State and Territory Governments of
revenue from a more robust tax base that can be
expected to grow over time; and
(iii) an improvement in the financial position of all State
and Territory Governments, once the transitional
30 changes have been completed, relative to that which
would have existed had the current arrangements
continued.
3. All Parties to the Agreement acknowledge the need to
pursue on-going reform of CommonwealthState financial
35 relations.
Acknowledgment of Agreement
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4. The Commonwealth will attach the Agreement as a schedule
to the A New Tax System (CommonwealthState Financial
Arrangements) Act 1999. The Commonwealth will use its
best endeavours to ensure the Act will require compliance
5 with the Agreement. The States and Territories will attach
the Agreement as a schedule to relevant State and Territory
legislation. The States and Territories will use their best
endeavours to ensure their legislation will require
compliance with the Agreement.
10 PART 2--COMMONWEALTH-STATE FINANCIAL REFORM
Reform Measures
5. The Parties will undertake all necessary steps to have
appropriate legislation enacted to give effect to the
following reform measures.
15 (i) The Commonwealth will legislate to provide all of the
revenue from the GST to the States and Territories
and will legislate to maintain the rate and base of the
GST in accordance with this Agreement.
(ii) The Commonwealth will cease to apply the
20 Wholesale Sales Tax from 1 July 2000 and will not
reintroduce it or a similar tax in the future.
(iii) The temporary arrangements for the taxation of
petrol, liquor and tobacco under the safety net
arrangements announced by the Commonwealth on
25 6 August 1997 will cease on 1 July 2000.
(iv) The payment of Financial Assistance Grants will
cease on 1 July 2000.
(v) The Commonwealth will continue to provide Specific
Purpose Payments (SPPs) to the States and Territories
30 and has no intention of cutting aggregate SPPs as part
of the reform process set out in this Agreement,
consistent with the objective of the State and
Territory Governments being financially better off
under the new arrangements.
35 (vi) The States and Territories will cease to apply the
taxes referred to in Appendix A from the dates
outlined below and will not reintroduce them or
similar taxes in the future.
· Bed taxes, from 1 July 2000;
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· Financial Institutions Duty, from 1 July 2001;
· Stamp duties on quoted marketable securities from
1 July 2001;
· Debits tax by 1 July 2005, subject to review by the
5 Ministerial Council;
(vii) The Ministerial Council will by 2005 review the need
for retention of stamp duty on non-residential
conveyances; leases; mortgages, debentures, bonds
and other loan securities; credit arrangements,
10 installment purchase arrangements and rental
arrangements; and on cheques, bills of exchange,
promissory notes; and unquoted marketable securities.
(viii) The States and Territories will adjust their gambling
tax arrangements to take account of the impact of the
15 GST on gambling operators.
(ix) Following negotiations under the CSHA, the States
and Territories will ensure that increases in pensions
and allowances specified in the tax reform package
will not flow through to increased public housing
20 rents where these rents are linked to the level of
pensions.
(x) Nothing in this clause will prevent any Party from
introducing anti-avoidance measures that are
reasonably necessary to protect its remaining tax base
25 or liabilities accrued prior to the date the tax ceases to
apply.
GST Legislation
6. All Parties agree to reconsider this Agreement should the
Commonwealth Parliament pass the GST legislation in a
30 way that significantly affects this Agreement.
Distribution of GST Revenue
7. The Commonwealth will make GST revenue grants to the
States and Territories equivalent to the revenue from the
GST subject to the arrangements in this Agreement. GST
35 revenue grants will be freely available for use by the States
and Territories for any purpose.
8. The Commonwealth will distribute GST revenue grants
among the States and Territories in accordance with
horizontal fiscal equalisation (HFE) principles subject to the
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transitional arrangements set out below and other relevant
provisions of this Agreement.
9. Details of the payment arrangements are contained in
Appendix B to this Agreement.
5 Transitional Arrangements
10. In each of the transitional years following the introduction
of the GST, the Commonwealth guarantees that the
budgetary position of each individual State and Territory
will be no worse off than it would have been had the
10 reforms set out in this Agreement not been implemented.
11. The Commonwealth will extend the transitional period by
Regulation (as provided for in the A New Tax System
(CommonwealthState Financial Arrangements) Act 1999)
to give effect to the commitments in clause 10 in the event
15 that transitional assistance is required by any State or
Territory after 30 June 2003.
12. To meet this guarantee, the Commonwealth will make
transitional assistance payments to each State and Territory,
as necessary, over this period. These payments will take the
20 form of interest free loans and grants in July 200001 and
grants paid quarterly in subsequent years and will be freely
available for use by the States and Territories for any
purpose. Any payments or repayments made by way of
loans or grants under the Commonwealth's guarantee will
25 be excluded from assessments of per capita relativities
recommended by the Commonwealth Grants Commission
(CGC).
13. The amounts of any additional assistance under the
guarantee will be determined in accordance with the
30 processes set out in Appendix C to this Agreement.
14. After the second year following the introduction of the GST,
GST revenue grants will be determined on the basis of HFE
principles. That is, after the first two years, any State or
Territory which is receiving more than would have been
35 received under the current arrangements will retain that
excess.
First Home Owners Scheme
15. To offset the impact of the introduction of a GST, the States
and Territories will assist first homebuyers through the
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funding and administration of a new uniform First Home
Owners Scheme.
16. This assistance will be provided to first home owners
consistent with Appendix D to this Agreement.
5 Application of the GST to Government
17. The Parties intend that the Commonwealth, States,
Territories and local government and their statutory
corporations and authorities will operate as if they were
subject to the GST legislation. They will be entitled to
10 register, will pay GST or make voluntary or notional
payments where necessary and will be entitled to claim
input tax credits in the same way as non-Government
organisations. All such payments will be included in GST
revenue.
15 18. The Commonwealth will legislate to require the States and
the Northern Territory to withhold from any local
government authority being in breach of clause 17 a sum
representing the amount of unpaid voluntary or notional
GST payments. Amounts withheld will form part of the
20 GST revenue pool. Detailed arrangements will be agreed by
the Ministerial Council on advice from Heads of Treasuries.
Government Taxes and Charges
19. The Commonwealth, States and Territories agree that the
GST does not apply to the payment of some taxes and
25 compulsory charges.
20. The Parties will agree a list of taxes and compulsory charges
that are outside the scope of the GST. This list will be
promulgated by a determination by the Commonwealth
Treasurer as set out in Division 81-5 of the A New Tax
30 System (Goods and Services Tax) Act 1999 (the GST Act).
21. In agreeing the list, the Commonwealth, States and
Territories will have regard to the following principles:
(i) taxes that are in the nature of a compulsory impost for
general purposes and compulsory charges by the way
35 of fines or penalties should not be subject to GST as
these will not relate to any specific supply of goods or
services;
(ii) similarly, those regulatory charges that do not relate
to particular goods or services should be outside the
40 scope of the GST; and
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(iii) the inclusion of any other charge in the
Commonwealth Treasurer's determination
notwithstanding that it may relate to the supply of a
particular good or service will require the unanimous
5 agreement of the Commonwealth, States and
Territories.
22. The agreed list of taxes and other compulsory charges that
are outside the scope of the GST will be subject to on-going
review and adjustment as necessary in consultation with the
10 Ministerial Council. The Parties will notify any objections
to changes to the list within a period to be specified by the
Ministerial Council.
Reciprocal Taxation
23. Reciprocal taxation will be progressed on a revenue neutral
15 basis, through the negotiation of a Reciprocal Taxation
Agreement with the objectives of:
(i) improving the transparency of tax arrangements
between all levels of government;
(ii) ensuring tax neutrality; and
20 (iii) replacing the Statement of Policy Intent (SOPI) for
the taxation treatment of Government Business
Enterprises with tax arrangements which are broader
in scope.
24. It is the intention of the Parties to this Agreement that a
25 National Tax Equivalent Regime (NTER) for income tax
will be operational for State and Territory government
business enterprises from 1 July 2000. It is also intended
that the reciprocal application of other Commonwealth,
State and Territory taxes will be subsequently implemented
30 as soon as practicable.
25. Local government organisations will be consulted with a
view to making the NTER for income tax operational for
wholly owned local government business enterprises from
1 July 2000 and including local government in the
35 Reciprocal Tax Agreement at a later date.
26. Where the application of full indirect reciprocal tax
arrangements is prevented by the Constitution, jurisdictions
have agreed to work cooperatively to introduce voluntary
payment arrangements in these circumstances.
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27. All governments have agreed that no further compensation
payments will be payable by any jurisdiction under the
SOPI.
Monitoring of Prices
5 28. In accordance with the Trade Practices Act 1974, as
amended, the Australian Competition and Consumer
Commission will formally monitor prices and take action
against businesses that take pricing decisions in a manner
inconsistent with tax reform.
10 29. In order to ensure that these measures apply to the whole
economy, the States and Territories will adopt the Schedule
version of Part VB of the Trade Practices Act 1974 (Part
XIAA of The New Tax System Price Exploitation Code) to
extend the measures in Part VB to cover those areas outside
15 the Commonwealth's constitutional power. All Parties will
work towards having any necessary legislation in place by
1 July 1999.
30. The monitoring and prohibition on unreasonable pricing
decisions will commence on 1 July 1999 and continue until
20 30 June 2002.
PART 3--ADMINISTRATION OF THE GST
Management of the GST Rate
31. After the introduction of the GST, a proposal to vary the
10 per cent rate of the GST will require:
25 (i) the unanimous support of the State and Territory
Governments;
(ii) the endorsement by the Commonwealth Government
of the day; and
(iii) the passage of relevant legislation by both Houses of
30 the Commonwealth Parliament.
Management of the GST Base
32. Subject to clauses 34, 35 and 36 of this Agreement, after the
introduction of the GST, any proposal to vary the GST base
will require:
35 (i) the unanimous support of the State and Territory
Governments;
(ii) the endorsement by the Commonwealth Government
of the day; and
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(iii) the passage of relevant legislation by both Houses of
the Commonwealth Parliament.
33. All future changes to the GST base should be consistent
with:
5 (i) the maintenance of the integrity of the tax base;
(ii) simplicity of administration; and
(iii) minimising compliance costs for taxpayers.
34. A proposal to vary the GST base by way of a Ministerial
determination under the GST Act and the GST Transition
10 Act will require the unanimous agreement of the Ministerial
Council established under clause 40. The Ministerial
Council will develop practical arrangements to ensure
timely consideration of proposed Ministerial determinations.
35. During the first 12 months following the implementation of
15 the GST, the Commonwealth Government will retain the
discretion to make changes unilaterally to the GST base
where such changes:
(i) are of an administrative nature (as defined in
Appendix E to this Agreement);
20 (ii) are necessary to facilitate the implementation of the
new tax; and
(iii) have regard to the need to protect the revenue of the
States and Territories.
36. From July 2001, changes to the GST base of an
25 administrative nature (as defined in Appendix E) would
require the majority support of the Commonwealth, the
States and the Territories.
Australian Taxation Office
37. The States and Territories will compensate the
30 Commonwealth for the agreed costs incurred by the
Australian Taxation Office (ATO) in administering the
GST.
38. Accountability and performance arrangements will be
established between the ATO and the State and Territory
35 Governments consistent with Appendix F to this
Agreement. These arrangements will include maximising
compliance, cost efficiency, simplicity for taxpayers and
administrative transparency.
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39. The ATO and State and Territory Governments will
collaborate to explore options for the States and Territories
to benefit from the use of the Australian Business Number
system.
5 PART 4--INSTITUTIONAL ARRANGEMENTS
Establishment of Ministerial Council
40. A Ministerial Council comprising the Commonwealth, the
States and the Territories will be established from 1 July
1999 to oversee the operation of this Agreement.
10 41. The membership of the Ministerial Council will comprise
the Treasurer of the Commonwealth and the Treasurers of
the States and Territories (or designated representatives).
42. The functions of the Ministerial Council will include:
(i) the oversight of the operation of the GST;
15 (ii) the oversight and coordination of the implementation
of this Agreement;
(iii) the review of matters of operational significance
raised through the GST Administration Sub-
Committee;
20 (iv) discussion of CGC recommendations regarding
relativities prior to the Commonwealth Treasurer
making a determination;
(v) monitoring compliance with the conditions governing
the provision of assistance to first home owners set
25 out in Appendix D to this Agreement;
(vi) monitoring compliance with the Commonwealth's
undertaking with respect to SPPs;
(vii) considering reports of the GST Administration Sub-
Committee on the performance of the ATO in GST
30 administration;
(viii) reviewing the operation of the Agreement over time
and considering any amendments which may be
proposed as a consequence of such review;
(ix) making recommendations to the Commonwealth
35 Treasurer on the Guaranteed Minimum Amount
applying to each State and Territory under the
Transitional Arrangements;
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(x) approving changes to the GST base which require the
support of a majority of Commonwealth, State and
Territory Governments;
(xi) considering on-going reform of CommonwealthState
5 financial relations; and
(xii) considering other matters covered in this Agreement.
43. The Treasurer of the Commonwealth will convene the
Ministerial Council in consultation with the other members
of the Council not less than once each financial year. If the
10 Commonwealth Treasurer receives a request from a member
of the Council, he will consult with the other members
concerning convening a meeting. The Treasurer of the
Commonwealth will be the chair of the Council. The
Council may also conduct its business by correspondence.
15 44. All questions arising in the Ministerial Council will be
determined by unanimous agreement unless otherwise
specified in this Agreement.
45. While it is envisaged that the Ministerial Council will take
decisions on most business arising from the operation of this
20 Agreement, major issues will be referred by the Ministerial
Council to Heads of Government for consideration,
including under the auspices of the Council of Australian
Governments.
46. The Ministerial Council will establish a GST Administration
25 Sub-Committee comprised of Commonwealth, State and
Territory officials to monitor the operation of the GST,
make recommendations regarding possible changes to the
GST base and rate and to monitor the ATO's performance
in GST administration. The GST Administration Sub-
30 Committee will function in accordance with the
arrangements set out in Appendix E to this Agreement.
SIGNED for and on behalf of the Parties by:
The Honourable John Winston Howard,
Prime Minister of the Commonwealth of
Australia, on the 20th day of June 1999
The Honourable Robert John Carr,
Premier of the State of New South
Wales, on the 24th day of June 1999
The Honourable Jeffrey Gibb Kennett,
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Premier of the State of Victoria, on the
26th day of June 1999
The Honourable Peter Douglas Beattie,
Premier of the State of Queensland, on
the 25th day of June 1999
The Honourable Richard Fairfax Court,
Premier of the State of Western
Australia, on the 29th day of June 1999
The Honourable John Wayne Olsen,
Premier of the State of South Australia,
on the 25th day of June 1999
The Honourable James Alexander
Bacon, Premier of the State of
Tasmania, on the 25th day of June 1999
Kate Carnell, Chief Minister of the
Australian Capital Territory, on the
22nd day of June 1999
The Honourable Denis Gabriel Burke,
Chief Minister of the Northern Territory
of Australia, on the 22nd day of
June 1999
APPENDICES
A: Taxes Subject to Reform
B: Payment of GST Revenues to the States and Territories
C: Transitional Arrangements
5 D: First Home Owners Scheme
E: GST Administration
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F: GST Administration Performance Agreement--Guiding
Principles
APPENDIX A
TAXES SUBJECT TO REFORM
5 The taxes which will cease to apply in accordance with paragraph 5 of this
Agreement are set out below and in the relevant Commonwealth, State and
Territory statutes as at 13 November 1998.
A1. The following taxes will cease to apply from 1 July 2000:
(i) Wholesale Sales Tax
10 Sales tax levied on the value of the last wholesale sale
of goods sold or otherwise dealt with as imposed by
the Commonwealth's Sales Tax (Imposition) Acts.
(ii) Bed Taxes
Accommodation taxes levied on the cost of temporary
15 residential accommodation.
A2. The following State and Territory taxes will cease to apply
from 1 July 2001:
(i) Financial Institutions Duty
Financial Institutions Duty levied on the value of
20 receipts (credits) at financial institutions and on the
average daily liabilities and/or investments of short
term money market dealers.
(ii) Stamp Duty on Marketable Securities
Stamp duty levied on turnover (ie sale price times
25 quantity traded) on the transfer of marketable
securities quoted on the ASX or another recognised
stock exchange.
This excludes transfers of marketable securities in
private companies and trusts, and in public companies
30 and trusts where the securities are not quoted on the
ASX or another recognised stock exchange.
A3. The following State and Territory tax will cease to apply by
1 July 2005, subject to review by the Ministerial Council:
(i) Debits Tax
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Debits tax levied on the value of withdrawals (debits)
from accounts with financial institutions with cheque
drawing facilities.
Debits duty levied on transactions, including credit
5 card transactions. This does not include stamp duty on
electronic debits (refer A4 (v) below).
A4. The Ministerial Council will by 2005 review the need for
retention of stamp duties on the following:
(i) Stamp Duty on Non-residential Conveyances
10 Stamp duty levied on the value of conveyances other
than residential property conveyances.
(ii) Stamp Duty on Non-quotable Marketable Securities
Stamp duty levied on transfers of marketable
securities in private companies and trusts, and in
15 public companies and trusts where the securities are
not quoted on the ASX or another recognised stock
exchange.
(iii) Stamp Duty on Leases
Stamp duty levied on the rental payable under tenancy
20 agreements.
(iv) Stamp Duty on Mortgages, Bonds, Debentures and
Other Loan Securities
Stamp duty levied on the value of a secured loan
property.
25 (v) Stamp Duty on Credit Arrangements, Installment
Purchase Arrangements and Rental Arrangements
Stamp duty levied on the value of the loan under
credit arrangements.
Stamp duty levied on credit business in respect of
30 loans made, discount transactions and credit
arrangements.
Stamp duty levied on the price of goods purchased
under installment purchase arrangements.
Stamp duty levied on the rent paid in respect of the
35 hire of goods, including consumer and producer
goods.
(vi) Stamp Duty on Cheques, Bills of Exchange and
Promissory Notes
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Stamp duty levied on cheques, bills of exchange,
promissory notes, or other types of payment orders,
promises to pay or acknowledgment of debts,
including duty on electronic debits.
5 APPENDIX B
PAYMENT OF GST REVENUES TO THE STATES AND
TERRITORIES
B1. Subject to the transitional arrangements and other relevant
provisions in this Agreement, the Commonwealth will
10 distribute GST revenue grants among the States and
Territories in accordance with horizontal fiscal equalisation
(HFE) principles.
B2. The pool of funding to be distributed according to HFE
principles in a financial year will comprise GST revenue
15 grants and health care grants as defined under an Australian
Health Care Agreement between the Commonwealth and
the States and Territories. A State or Territory's share of the
pool will be based on its population share, adjusted by a
relativity factor which embodies per capita financial needs
20 based on recommendations of the Commonwealth Grants
Commission. The relativity factor for a State or Territory
will be determined by the Commonwealth Treasurer after he
has consulted with each State and Territory.
B3. The total amount of GST revenue to be provided to the
25 States and Territories in a financial year will be defined as:
(i) the sum of GST collections, voluntary and notional
payments made by government bodies, and amounts
withheld pursuant to clause 18; reduced by
(ii) the amounts paid or applied under Division 35 of the
30 GST Act and under section 39 of the Taxation
Administration Act 1953.
B4. The total amount of GST revenue in a financial year will be
determined by the Commissioner of Taxation in the
following way:
35 (i) actual outcomes for the items listed in paragraph B3
for the period 1 July to 31 May; plus
(ii) estimated outcomes for the items listed in
paragraph B3 for the month of June; plus
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(iii) an adjustment amount (which may be positive or
negative) to account for any difference between the
estimated and actual outcome for the items listed in
paragraph B3 for the month of June in the previous
5 year.
B5. GST revenue grants will be paid by the Commonwealth on
the twenty-seventh day of each month. Where the scheduled
payment day is a Saturday, Sunday or public holiday in
Canberra, the payment will be made on the next business
10 day of the Reserve Bank of Australia in Canberra.
B6. The States and Territories shall be informed of the quantum
of each monthly payment by close of business Canberra
time on the twenty sixth day of each month. Where the day
is a Saturday, Sunday or public holiday in Canberra, the
15 States and Territories shall be informed of the quantum of
the payment on the last business day of the Reserve Bank of
Australia in Canberra prior to payment day.
B7. The distribution between the States and Territories of the
payments of GST revenue grants up to 15 June in each year
20 will be based on:
(i) the Treasurer's determination of per capita
relativities;
(ii) the latest available Australian Bureau of Statistics'
projections, or estimates, of State and Territory
25 populations as at 31 December;
(iii) the latest available Department of Health and Aged
Care estimates of health care grants to be provided to
a State or Territory; and
(iv) the latest available estimates of the guaranteed
30 minimum amount for each State and Territory to be
calculated under Appendix C of this Agreement.
The Commonwealth will inform the States and Territories of
any changes to the estimates as part of the advice to be
provided to the States and Territories under paragraph B6.
35 B8. The payments of GST revenue grants after 15 June in each
year will take into account the determinations of:
(i) per capita relativities and Guaranteed Minimum
Amounts by the Treasurer;
(ii) populations by the Statistician;
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(iii) health care grants by the Minister administering the
National Health Act 1953; and
(iv) GST revenues by the Commissioner of Taxation.
For this purpose, the final payment will be made no later
5 than the seventeenth day of June in each year. Where the
seventeenth day of June is a Saturday, Sunday or public
holiday in Canberra, the payment will be made on the next
business day of the Reserve Bank of Australia in Canberra.
B9. States shall be informed of the quantum of the final monthly
10 payment of GST revenues grants by close of business
Canberra time on the sixteenth day of June. Where the
sixteenth day of June is a Saturday, Sunday or public
holiday in Canberra, the Commonwealth shall inform the
States of the quantum of the final payment on the last
15 business day of the Reserve Bank of Australia in Canberra
prior to the thirteenth.
B10. The timing of payments of GST revenue grants may be
varied by agreement between the Parties to this Agreement.
APPENDIX C
20 TRANSITIONAL ARRANGEMENTS
Guarantee in Legislation
C1. Commonwealth legislation will provide a State or Territory
with an entitlement to an additional amount of funding from
the Commonwealth to offset any shortfall between its
25 entitlement to GST revenue grants and the total amount of
funding which would ensure that the budgetary position of a
State or Territory is not worse off during the transition
period.
(i) In 200001, transitional assistance will be provided to
30 a State or Territory as a grant or an interest free loan
to be repaid to the Commonwealth in full in 200102.
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(ii) In subsequent transitional years, transitional
assistance will be provided to a State or Territory as a
grant.
Guaranteed Minimum Amount
5 C2. The amount of a State or Territory's entitlement to
transitional assistance in a financial year will be calculated
by subtracting its entitlement to GST revenue grants from a
"Guaranteed Minimum Amount" constructed in the
following way:
10 State revenues forgone: financial assistance grants, revenue
replacement payments and State and Territory taxes as
defined in Appendix A of this Agreement with the
exception of stamp duties on marketable securities which
will be the amount as if fully abolished.
15 plus
Reduced revenues: the amount by which States and
Territories adjust gambling taxation arrangements to take
account of the impact of the GST on gambling operators.
plus
20 Interest costs on cash flow shortfalls: the interest cost
incurred by States and Territories as a result of the change to
cash flows arising from the replacement of weekly financial
assistance grants, revenue replacements and State and
Territory taxes with monthly GST revenue grants.
25 plus
Loan Repayments: in 2001-02 only, the repayment of a
guarantee loan by a State or Territory.
plus
Additional expenditures: payments to first home owners in
30 accordance with Appendix D of this Agreement and the
amount of the agreed GST administration costs payable to
the ATO by a State or Territory.
plus
Other items: $338 million spread evenly over three years
35 starting in 2000-01 in respect of the claim by States and
Territories in relation to revenue forgone from the abolition
of the Wholesale Sales Tax (WST) Tax Equivalent Regimes
(with the distribution to be agreed among the States and
Territories).
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minus
Reduced expenditures: off-road diesel subsidies and reduced
costs from the removal of embedded WST and excises on
purchases by a State or Territory government.
5 minus
Growth dividend: the increase in revenue to a State or
Territory (not including GST revenue payments) that is
attributable to the impact of the Commonwealth's taxation
reform measures on economic growth.
10 plus
Adjustments: from 2001-02, the net difference between
preliminary estimates and outcomes or final estimates for
items that were taken into account in the previous year's
Guaranteed Minimum Amount.
15 In addition, $269 million in total, spread evenly over three years, will be
included in the new Commonwealth State Housing Agreement starting in
2000-01 in respect of the net increased public housing costs as a result of tax
reform (with the distribution to be agreed among the States and Territories).
Heads of Treasuries' Advice to Ministerial Council
20 C3. The Guaranteed Minimum Amount for a State or Territory
will be determined by the Commonwealth Treasurer by
10 June of each year of the transition period. The Ministerial
Council will make recommendations to the Treasurer on the
Guaranteed Minimum Amount for each State and Territory.
25 C4. The Heads of Treasuries will provide written advice to the
Ministerial Council on the following issues by the indicated
dates.
(i) By 1 March 2000, advice on the estimated loans and
grants to be provided to each State and Territory in
30 200001 and the amounts which the Commonwealth
should provide to each State and Territory on
Tuesday 4 July 2000.
(ii) By 1 November 2000 advice on the most recent
estimates of transitional assistance for the year and
35 any adjustment that may need to be made to the
amount of the loans and grants made to each State and
Territory.
(iii) By 1 September of each subsequent year of the
transition period, advice on the most recent estimates
40 of the transitional assistance to be provided to each
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State and Territory in the financial year and the
installment amounts which the Commonwealth should
provide to each State and Territory on the first
Tuesday of the following October and January. This
5 advice should identify the adjustments for the net
difference between preliminary estimates and
outcomes or final estimates for items that were taken
into account in the previous year's Guaranteed
Minimum Amount for a State or Territory.
10 (iv) By 1 March of each subsequent year of the transition
period, advice on the most recent estimates of the
transitional assistance to be provided to each State
and Territory in both the current financial year and
the next financial year, and the installment amounts
15 which the Commonwealth should provide to each
State and Territory on the first Tuesday of the
following April and July.
(v) By 1 June of each year of the transition period, advice
on the Guaranteed Minimum Amount for each State
20 and Territory in the current financial year.
Frequency and Amounts of Payments and Repayments
C5. In each year of the transitional period after 200001, the
Commonwealth will provide an installment of the guarantee
payment to a State or Territory on the first Tuesday (or the
25 first business day thereafter) of January, April, July and
October. The installment amounts will reflect the advice to
be provided to the Ministerial Council by the Heads of
Treasuries under paragraph C4.
C6. Adjustments to the total amount of additional assistance to a
30 State or Territory in light of actual GST collections and the
Treasurer's determination of the Guaranteed Minimum
Amount will be made in conjunction with the payments of
GST revenue grants after 10 June in each year.
C7. A State or Territory will repay a loan which it receives from
35 the Commonwealth in 200001 in quarterly installments in
200102. These installments will be paid to the
Commonwealth on the same day on which a State or
Territory receives an amount of GST revenue grants in the
months of July, October, January and April.
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C8. The methodology for calculating the amounts of particular
components of the Guaranteed Minimum Amount for a
State or Territory has been agreed by the Heads of
Treasuries and is set out in the document titled Methodology
5 for Estimation of Components of the Guaranteed Minimum
Amount.
APPENDIX D
FIRST HOME OWNERS SCHEME
Principles
10 D1. The States and Territories will make legislative provision
for the First Home Owners Scheme (FHOS) from 1 July
2000 which will incorporate programme criteria consistent
with the following principles:
(i) Eligible applicants will be entitled to $7,000
15 assistance (per application) on eligible homes under
the FHOS.
(ii) Assistance will be available directly as a one off
payment. If the recipient expressly consents, it may be
available as an offset against statutory levies and
20 charges or some combination of these.
(iii) Eligible applicants must be natural persons who are
Australian citizens or permanent residents who are
buying or building their first home in Australia. An
applicant's spouse (or de facto) must be included on
25 the application.
(iv) To qualify for assistance, neither the applicant or the
applicant's spouse (or de facto) must have previously
owned a home, either jointly, separately or with some
other person.
30 (v) Entering into a binding contract or commencement of
building in the case of owner builders, must have
occurred on or after 1 July 2000.
(vi) An eligible home will be a new or established house,
home unit, flat or other type of self contained fixed
35 dwelling that meets local planning standards. Fixed
dwellings will include demountable dwellings where
these meet local planning standards.
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(vii) An eligible home must be intended to be a principal
place of residence and occupied within a reasonable
period. The home must be located in the State or
Territory in which the application is made. Applicants
5 who have entered into a financing mechanism which
involves a shared equity arrangement will be eligible.
(viii) Assistance will not be means tested.
(ix) The relevant State and Territory legislation will
contain adequate administrative review and appeal
10 mechanisms, along with provision to prevent abuse of
the FHOS. The States and Territories will cooperate
in the exchange of information to identify eligible
first home owners.
Other matters
15 D2. Funding of grants under the FHOS may not be drawn from
Home Purchase Assistance (HPA) funds provided through
the Commonwealth State Housing Agreement, including the
pool of existing HPA revenues.
D3. Further details concerning eligibility criteria consistent with
20 the above principles are to be agreed between the
Commonwealth and each State and Territory.
D4. The States and Territories will not introduce or vary any
taxes or charges associated with home purchase with the
intention of offsetting the benefits of the FHOS for
25 recipients.
APPENDIX E
GST ADMINISTRATION
E1. The Commissioner of Taxation has the general
administration of the GST law.
30 E2. The ATO will arrange for the Australian Customs Service to
assist with the collection of the GST on imports.
E3. During the first 12 months following the implementation of
the GST, the Commonwealth will retain the discretion to
make changes to the GST base of an administrative nature.
35 For this purpose, changes of an administrative nature
involves legislation necessary to:
(i) protect the integrity of the GST base; or
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(ii) prevent tax avoidance.
E4. The Commonwealth will include the definition of change of
an administrative nature in the A New Tax System
(CommonwealthState Financial Arrangements) Bill 1999.
5 E5. From July 2001, changes of an administrative nature as
defined in E3 will require the majority support of the
Commonwealth, States and Territories.
E6. The GST Administration Sub-Committee, which will
commence operation from 1 July 1999, will monitor the
10 operation and administration of the GST and make
recommendations regarding modifications to the GST and
the administration of the GST.
E7. The GST Administration Sub-Committee will comprise
officials from each Party to the Agreement including
15 representatives from the ATO as required. The
Commonwealth Treasury will chair the GST Administration
Sub-Committee.
E8. The Chair will convene the GST Administration Sub-
Committee in consultation with other members of the Sub-
20 Committee as often as may be necessary to conduct its
business. If the Chair receives a request from a member of
the Sub-Committee, the Chair will consult with the other
members concerning convening a meeting.
E9. The functions of the Sub-Committee will include:
25 (i) monitoring the performance of the ATO in the
administration of the GST (Appendix F of this
Agreement);
(ii) the assessment of policy proposals for the
modification of the GST rate and base;
30 (iii) making recommendations to the Ministerial Council
on the need for legislation which might significantly
affect the GST base; and
(iv) requesting the ATO to produce draft Public Rulings
in specified areas.
35 E10. The States and Territories will be consulted on draft Public
Rulings prior to consideration by the ATO Rulings Panel
and before public consultation. There will be a
representative from the States and Territories on the ATO
Rulings Panel in relation to GST matters.
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E11. Public rulings will not be referred to the Ministerial
Council. However, the GST Administration Sub-Committee
will refer a proposed GST change to the Ministerial Council
for consideration if the Sub-Committee is of the view that
5 the change could have a significant impact on GST revenues
and so warrants Ministerial review.
E12. Draft legislation which might significantly affect the GST
base will be forwarded through the GST Administrative
Sub-Committee to the Ministerial Council for consideration.
10 APPENDIX F
GST ADMINISTRATION PERFORMANCE AGREEMENT--
GUIDING PRINCIPLES
Preamble
F1. This Appendix outlines the principles that will guide the
15 subsequent development of a GST Administration
Performance Agreement (the Performance Agreement)
between the ATO and its agents, and the States and
Territories (the Parties).
Objectives and Context of the Performance Agreement
20 F2. The purpose of the Performance Agreement is to provide
accountability between the ATO and the States and
Territories on behalf of whom the GST revenue is being
collected. It also provides an agreed basis for the GST
Administration Sub-Committee to monitor the
25 administration of the GST by the ATO and its agents in
return for the agreed GST administration costs being paid by
the States and Territories.
F3. The Performance Agreement will reflect the commitment by
the Parties to:
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(i) achieving world's best practice for GST
administration in Australia;
(ii) a cost-effective and transparent GST administration;
and
5 (iii) a cooperative relationship between the Parties.
F4. The Performance Agreement will recognise that
achievement of world's best practice GST administration,
including cost-effectiveness, is dependent on the GST
policy framework and integrated administrative design.
10 F5. The Performance Agreement will be consistent with the
arrangements set out in this Intergovernmental Agreement.
Components of Agreement
F6. The Performance Agreement will include outcomes to be
achieved, budgeting arrangements and monitoring and
15 review arrangements for the purposes of maintaining
accountability and transparency of operations.
The Performance Agreement will also include the process
for raising matters of operational significance with the
Ministerial Council.
20 Outcomes
F7. The Performance Agreement will stipulate performance
outcomes and appropriate benchmarks to be achieved by the
ATO. These outcomes may include, but are not limited to:
revenue, taxpayer registration, compliance, reporting,
25 education and legislative review. Consistent with the
objectives of the Agreement, the benchmarks are to reflect
world best practice in GST administration.
Cost of Administration
F8. The Performance Agreement will outline the
30 Commonwealth administration activities that are GST
related for the purposes of agreeing the GST administration
costs.
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F9. The Performance Agreement will stipulate arrangements for
an audit of GST costs and the systems for the control of
GST costs.
F10. The Performance Agreement will outline the process and
5 timing of consultation for developing/modifying budgets
and business plans for GST administration. These budgets
and business plans will be developed, and/or revised, in an
appropriate and timely manner so as to broadly accord with
Commonwealth arrangements for funding agency
10 operations.
F11. The Performance Agreement will recognise that the States
and Territories will fully compensate the Commonwealth
for the agreed costs of administering the GST.
Monitoring and Review
15 F12. The Performance Agreement will stipulate the:
(i) number and timing of formal reports by the ATO to
the Sub-Committee;
(ii) number and timing of progress reports by the ATO to
the Sub-Committee; and
20 (iii) arrangements for special briefings on particular
issues.
F13. The Parties to the Performance Agreement will ensure
appropriate alignment of ATO Parliamentary reporting
responsibilities and reporting responsibilities under the
25 Performance Agreement.
F14. The Performance Agreement will stipulate that ATO reports
to the Sub-Committee on outcomes will include:
(i) updates on relevant internal governance
arrangements, including appropriate strategic plans
30 and annual and other relevant reports that scrutinise
aspects of GST operations (including annual and
other relevant reports from the Australian National
Audit Office);
(ii) accrual-based financial reports;
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(iii) key outcome performance indicators (including,
registrations, revenue, refunds, costs, key processing
workloads, Taxpayer Charter standards and
international benchmark comparisons);
5 (iv) litigation and public ruling information;
(v) updates on relevant compliance and cost-of-
compliance research;
(vi) administrative base issues; and
(vii) commentary on administrative performance and any
10 key emerging GST compliance issues and related
initiatives.
F15. The Performance Agreement will ensure that the States and
Territories will have access to GST data held by the ATO
subject to statutory limitations.
15 Matters of Operational Significance
F16. The Performance Agreement will outline arrangements for
raising matters of operational significance with the
Ministerial Council. Matters of operational significance may
include disputes over the interpretation of the Performance
20 Agreement and non-performance by the ATO against agreed
targets. The Performance Agreement will ensure that the
ATO will have the opportunity to provide direct advice to
the Ministerial Council on any matters submitted to the
Council.
25 Development of Agreement
F17. The Performance Agreement will be developed by the GST
Administration Sub-Committee and representatives of the
ATO. The Performance Agreement is to be developed with
reference to both:
30 (i) the guiding principles outlined in this Appendix; and
(ii) actual GST performance data (including revenue) in
the Australian context, gathered during the
transitional years.
F18. The Performance Agreement is to be finalised by the end of
35 the GST transitional year ending June 2002. The
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Performance Agreement is to be endorsed by the Ministerial
Council prior to being signed.
F19. The Performance Agreement will stipulate the process for
its amendment.
5 Transitional Arrangements
F20. The ATO and the GST Administration Sub-Committee will
discuss key operational issues and costs commencing in
October 1999 and on a semiannual basis throughout the
GST transitional year ending 30 June 2002.
10 F21. The ATO will arrange for an audit of the systems for the
control of GST costs and the GST costs incurred during the
period from 1 July 1999 to the date of the signing of the
Performance Agreement by the Parties.
F22. The ATO will undertake to establish, by the end of the
15 Transitional year ending 30 June 2002, final GST
benchmarking arrangements with relevant overseas
administrations, subject to their agreement. The ATO will
discuss benchmarking plans with the GST Administration
Sub-Committee.
20
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Notes
Act No.
NOTES
By Authority. Government Printer for the State of Victoria.
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