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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Stamps (Amendment) Act 1999
Act No.
TABLE OF PROVISIONS
Clause Page
1. Purpose 1
2. Commencement 1
3. Principal Act 2
4. Definitions 2
5. New section 26A inserted 3
26A. Arrangements that reduce the unencumbered value of
marketable securities and rights in respect of shares 3
6. Returns systems 5
7. Change of beneficial ownership in real property under unit trust
schemes 6
8. Family farm exemption 7
9. First home buyers exemption 7
10. Land rich provisions 8
11. Insurance premiums to include fire service levies and exclude
discounts 8
12. Refund of insurance duty on refund of premium 8
13. New sections 111A and 111B substituted 8
111A. Definitions 9
111B. Life insurers to execute policies of life insurance 9
14. New section 111GA inserted 10
111GA. Refund of duty if transport accident charge refunded 10
15. New subdivision (11C) of Division 3 of Part 2 substituted 10
(11C) Superannuation Funds 10
111H. Definitions 10
111I. Instruments relating to superannuation 11
111J. Transfer of property from one superannuation fund to
another 12
111K. Transfers to trustees or custodians of superannuation
funds or trusts 13
16. Motor vehicle duty 14
17. Repeal of obsolete definition 14
18. Collateral securities 14
19. Repeal of prohibition on issuing unstamped foreign securities 15
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Clause Page
20. New section 137MC substituted 15
137MC. Refinancing of loans 15
21. Exemption for assignment of residential lease 17
NOTES 18
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532154B.I1-20/4/99
PARLIAMENT OF VICTORIA
A BILL
to make miscellaneous amendments to the Stamps Act 1958 and for
other purposes.
Stamps (Amendment) Act 1999
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to make miscellaneous
amendments to the Stamps Act 1958.
2. Commencement
5 (1) This Act (except section 16) comes into operation
on the day on which it receives the Royal Assent.
(2) Section 16 is deemed to have come into operation
on 1 May 1999.
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s. 3
Act No.
3. Principal Act
No. 6375.
Reprint No. 14
In this Act the Stamps Act 1958 is called the
as at
Principal Act.
1 September
1997. Further
amended by
Nos 84/1996,
86/1997,
46/1998,
48/1998,
52/1998,
83/1998,
97/1998 and
103/1998.
4. Definitions
5 In section 3 of the Principal Act--
(a) for the definition of "IR" substitute --
' "IR" means any security, not being an
option contract within the meaning of
section 9 of the Corporations Law,
10 issued by a trustee that provides--
(a) beneficial ownership, to the holder
of the security, of marketable
securities that are quoted on the
market operated by Australian
15 Stock Exchange Limited; and
(b) legal ownership of the marketable
securities to the holder of the
security on payment of the final
instalment, being a payment that
20 the holder is obliged to make
under the terms of issue of the
security;';
(b) for the definition of "related corporation"
substitute--
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s. 5
Act No.
' "related body corporate" and "related
corporation" have the same meaning
as "related body corporate" has in the
Corporations Law;'.
5 5. New section 26A inserted
After section 26 of the Principal Act insert--
'26A. Arrangements that reduce the
unencumbered value of marketable
securities and rights in respect of shares
10 (1) In computing for the purposes of this Act the
unencumbered value of any marketable
security or right in respect of shares of a
company, the Comptroller of Stamps may
include the value of any assets formerly
15 owned or controlled by the company if--
(a) those assets were transferred to the
ownership or control of the transferee
of the marketable security or right in
respect of shares or to an associated
20 person of the transferee before the
transfer of the marketable security or
right in respect of shares; and
(b) those assets are necessary for the
continuing operation of the company
25 after the transfer of the marketable
security or right in respect of shares;
and
(c) the value of the marketable security or
right in respect of shares was reduced
30 following the transfer of ownership or
control of assets because the proceeds
of that transfer were not retained by the
company.
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s. 5
Act No.
(2) In determining whether assets are necessary
for the continuing operation of a company
the Comptroller may take into account--
(a) whether or not the assets were removed
5 from the company's premises after the
transfer of ownership or control;
(b) whether or not the assets continued to
be used by the company under an
arrangement with the transferee.
10 (3) This section does not apply if the
Comptroller is satisfied that the transfer of
ownership or control of assets--
(a) was part of the normal business
operations of the transferee; or
15 (b) was not part of a scheme or
arrangement to reduce duty payable on
the transfer of the marketable security
or right in respect of shares.
(4) In this section--
20 "associated person" means a person who is
associated with another person in
accordance with any of the following
provisions--
(a) persons are associated persons if
25 they are related persons;
(b) natural persons are associated
persons if they are partners in a
partnership to which the
Partnership Act 1958 applies;
30 (c) private companies are associated
persons if common shareholders
have a majority interest in each
private company;
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Stamps (Amendment) Act 1999
s. 6
Act No.
(d) trustees are associated persons if
any person is a beneficiary
common to the trusts (not
including a public unit trust) of
5 which they are trustees;
(e) a private company and a trustee
are associated persons if a related
body corporate of the company
(within the meaning of the
10 Corporations Law) is a
beneficiary of the trust (not
including a public unit trust) of
which the trustee is a trustee;
"private company" means a corporation
15 that is not limited by shares, or whose
shares are not listed on Australian
Stock Exchange Limited or a
recognised stock exchange;
"related persons" means persons who are
20 related for the purposes of subdivision
(7) of Division 31.'.
6. Returns systems
(1) In section 40A of the Principal Act--
(a) sub-section (2) is repealed;
25 (b) in sub-section (3)--
(i) in paragraph (a) after "endorsement"
insert "or to be exempt from duty (as
the case may be)";
(ii) in paragraph (c) for "sufficient records
30 to enable him to calculate accurately
the total of all amounts endorsed by
him under this sub-section" substitute
"records of endorsements in the form
and containing the particulars
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s. 7
Act No.
determined by the Comptroller of
Stamps".
(2) In section 40A of the Principal Act for sub-section
(4) substitute--
5 "(4) An authorized person must not--
(a) knowingly endorse an instrument under
sub-section (3)(a) with an amount of
duty less than the amount with which it
is chargeable under this Act; or
10 (b) fail to comply in any other way with
sub-section (3)(a) or (c) or the
regulations.
Penalty: 5 penalty units.
(4A) An authorized person must not fail to
15 comply with sub-section (3)(b).
Penalty: 20 penalty units plus an amount
equal to double the amount that
would have been payable if the
sub-section had been complied
20 with.".
(3) After section 40A(7) of the Principal Act insert--
"(7A) Nothing in sub-section (7) prevents the
Comptroller from recovering any duty
chargeable on an instrument under this Act.".
25 (4) In section 41(1) of the Principal Act after
"subsequent period" insert "(being a period within
3 years after the date on which the overpayment
was made)".
7. Change of beneficial ownership in real property
30 under unit trust schemes
(1) In section 64B(9)(d) of the Principal Act after
"unit trust scheme" insert ", otherwise than as part
of a scheme or arrangement that, in the opinion of
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Stamps (Amendment) Act 1999
s. 8
9
Act No.
the Comptroller, was made with a collateral
purpose of reducing the stamp duty otherwise
payable under this section".
(2) After section 64B(9) of the Principal Act insert--
5 "(10) Sub-section (9)(d) as amended by section
7(1) of the Stamps (Amendment) Act 1999
applies to a change in beneficial ownership
occurring on or after 4 January 1999.".
8. Family farm exemption
10 In section 71 of the Principal Act--
(a) in sub-section (1) for paragraph (a)
substitute--
"(a) the transferor is--
(i) a natural person; or
15 (ii) a trustee for a natural person; or
(iii) a company all the shares in which
are owned by natural persons who
are relatives of each other; and";
(b) in sub-section (1)(b)--
20 (i) for "the natural person" (wherever
occurring) substitute "a natural
person";
(ii) at the end of sub-paragraph (iii)
insert--
25 "; or
(iv) a natural person referred to in
paragraph (a)(iii).".
9. First home buyers exemption
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s. 13
Act No.
In section 71B of the Principal Act, in sub-
sections (3)(g), (5)(b), (6)(d), and (8)(b) for "is
less than" substitute "does not exceed".
10. Land rich provisions
5 (1) In section 75(1) of the Principal Act, in the
definition of "acquire", in paragraph (d)(iii) after
"court" insert ", not being a compromise or
arrangement that the Comptroller of Stamps is
satisfied was made with the intention of defeating
10 the operation of this subdivision".
(2) In section 75D of the Principal Act for
"sub-section (1)" substitute "section 75C(1)".
11. Insurance premiums to include fire service levies and
exclude discounts
15 In section 98(1)(a) of the Principal Act for "or
discounts" substitute "or any fire service levies
paid or payable in connection with insurance by
an insurer or any other person".
12. Refund of insurance duty on refund of premium
20 Before section 111(2) of the Principal Act
insert--
"(1) A registered company or a company, person
or firm of persons to whom section 110A
applies is entitled to a refund of duty if the
25 registered company refunds, or there is
refunded to the company, person or firm of
persons, the whole or part of a premium in
respect of which duty has been paid.
(1A) The refund is the duty paid on the amount of
30 the premium refunded.".
13. New sections 111A and 111B substituted
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Act No.
For sections 111A and 111B of the Principal Act
substitute--
'111A. Definitions
In this subdivision--
5 "insurance against accident" means
insurance under which payment is
agreed to be made on the death of a
person only from accident or violence
or otherwise from a natural cause or as
10 compensation for personal injury;
"life insurance" means insurance or
assurance in respect of--
(a) a life or lives; or
(b) any event or contingency relating
15 to or depending on a life or
lives--
of a person who is, or persons who are,
domiciled in Victoria at the time the
policy is issued, but does not include
20 insurance against accident.
111B. Life insurers to execute policies of life
insurance
(1) A person who receives or takes credit for a
premium or consideration for a contract of
25 life insurance must, within 3 months after
receiving or taking credit for the premium or
consideration, make out and execute a duly
stamped policy of life insurance.
Penalty: 2 penalty units and double the
30 amount of duty that would have
been payable on the policy.
(2) A person must not make, execute, or deliver
out, or pay or allow in account, or agree to
pay or allow in account any money on or in
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Stamps (Amendment) Act 1999
s. 14
Act No.
respect of any policy of life insurance that is
not duly stamped.
Penalty: 2 penalty units and double the
amount of duty that would have
5 been payable on the policy.'.
14. New section 111GA inserted
After section 111G of the Principal Act insert--
"111GA. Refund of duty if transport accident charge
refunded
10 (1) The Commission is entitled to a refund of
duty if it refunds the whole or part of a
transport accident charge included in a return
on which duty has been paid.
(2) The refund is the duty paid by reference to
15 the amount of the charge refunded.".
15. New subdivision (11C) of Division 3 of Part 2
substituted
For subdivision (11C) of Division 3 of Part II of
the Principal Act substitute--
20 '(11C) Superannuation Funds
111H. Definitions
In this subdivision--
"complying approved deposit fund"
means an entity that is a complying
25 approved deposit fund in accordance
with section 43 of the Superannuation
Industry (Supervision) Act 1993 of the
Commonwealth;
"complying superannuation fund" means
30 an entity that is a complying
superannuation fund in accordance with
section 42 of the Superannuation
10
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Stamps (Amendment) Act 1999
s. 15
Act No.
Industry (Supervision) Act 1993 of the
Commonwealth and an exempt public
sector superannuation scheme;
"eligible rollover fund" means an entity
5 that is an eligible rollover fund in
accordance with section 242 of the
Superannuation Industry (Supervision)
Act 1993 of the Commonwealth and
includes an entity the trustee of which
10 is satisfied will be an eligible rollover
fund within 12 months after the date on
which a liability to duty arises (or
would otherwise arise);
"pooled superannuation trust" means an
15 entity that is a pooled superannuation
trust in accordance with section 44 of
the Superannuation Industry
(Supervision) Act 1993 of the
Commonwealth.
20 111I. Instruments relating to superannuation
The following instruments are exempt from
duty--
(a) an instrument that establishes, or that
amends provisions governing, a
25 superannuation fund, an approved
deposit fund, a pooled superannuation
trust or an eligible rollover fund, being
a fund or trust that, in the opinion of the
trustees, will be a complying
30 superannuation fund, a complying
approved deposit fund, a pooled
superannuation trust or an eligible
rollover fund within 12 months after the
instrument or amending instrument
35 takes effect;
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s. 15
Act No.
(b) an instrument under which an employer
agrees to participate in or contribute to
a complying superannuation fund or a
superannuation fund that, in the opinion
5 of the trustees, will become a
complying superannuation fund within
12 months after the employer agrees to
participate in or contribute to the fund;
(c) an instrument that is executed in order
10 to set out or vary the terms of custodial
arrangements concerning a complying
superannuation fund, a complying
approved deposit fund, a pooled
superannuation trust or an eligible
15 rollover fund (whether or not the
instrument contains any other terms) or
concerning a fund or trust that, in the
opinion of the trustees, will be a
complying superannuation fund, a
20 complying approved deposit fund, a
pooled superannuation trust or an
eligible rollover fund within 12 months
after the instrument takes effect.
111J. Transfer of property from one
25 superannuation fund to another
(1) Duty is not chargeable on an instrument for
the transfer of property from one
superannuation fund to another if the
Comptroller of Stamps is satisfied that--
30 (a) the transfer is made from a complying
superannuation fund or from a fund that
was a complying superannuation fund
within the period of 12 months before
the transfer was made; and
35 (b) the transfer is made to a complying
superannuation fund or to a
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s. 15
Act No.
superannuation fund that, in the opinion
of the trustees, will be a complying
superannuation fund within 12 months
after the transfer is made; and
5 (c) the transfer occurs in connection with a
person's ceasing to be a member of, or
otherwise ceasing to be entitled to
benefits in respect of, the fund from
which the property is transferred and
10 the person's becoming a member of, or
otherwise becoming entitled to benefits
in respect of, the fund to which the
property is transferred.
(2) In this section, "complying superannuation
15 fund" includes a complying approved
deposit fund and an eligible rollover fund.
111K. Transfers to trustees or custodians of
superannuation funds or trusts
(1) Duty is not chargeable on an instrument for
20 the transfer of property to a trustee or
custodian of a complying superannuation
fund, a complying approved deposit fund, a
pooled superannuation trust or an eligible
rollover fund, or a fund or trust that, in the
25 opinion of the trustees, will be a complying
superannuation fund, a complying approved
deposit fund, a pooled superannuation trust
or an eligible rollover fund within 12 months
after the transfer takes effect, where there is
30 no change in the beneficial ownership of the
property.
(2) A transfer of property to or from a trustee or
custodian of a pooled superannuation trust in
exchange for the issue or redemption of units
35 in the trust does not, for the purposes of this
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Stamps (Amendment) Act 1999
s. 16
18
Act No.
section, effect a change in the beneficial
ownership of the property.'.
16. Motor vehicle duty
(1) In section 137AE of the Principal Act for 'The
5 "dutiable value" ' substitute 'Subject to sub-
section (2), the "dutiable value" '.
(2) At the end of section 137AE of the Principal Act
insert--
"(2) The dutiable value of a motor vehicle that--
10 (a) is a taxi-cab within the meaning of the
Transport Act 1983; and
(b) is specially converted to provide
wheelchair access to and egress from
the vehicle; and
15 (c) is capable of carrying at least one
occupied wheelchair; and
(d) has not previously been registered in
Victoria or elsewhere--
is the value determined in accordance with
20 sub-section (1) less $24 000 or such other
amount as is prescribed.".
17. Repeal of obsolete definition
In section 137D(1) of the Principal Act the
definition of "foreign security" is repealed.
25 18. Collateral securities
In section 137I(1) of the Principal Act after "duly
stamped" insert "under this Act or under the law
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Stamps (Amendment) Act 1999
Act No.
of another State or of a Territory of the
Commonwealth".
19. Repeal of prohibition on issuing unstamped foreign
securities
5 Section 137L of the Principal Act is repealed.
20. New section 137MC substituted
For section 137MC of the Principal Act
substitute--
'137MC. Refinancing of loans
10 (1) In this section--
"refinancing mortgage" means a mortgage
that secures the amount of the balance
outstanding immediately before the
execution of that mortgage under an
15 earlier duly stamped mortgage to the
same borrower (whether or not over the
same property) that is discharged or to
be discharged as part of the
arrangements for the new mortgage.
20 (2) For the purposes of sub-section (1),
mortgages are created to secure an advance
to the same borrower if, either directly by the
mortgages themselves or indirectly through
one or more collateral arrangements, the
25 same person obtains the advances secured by
them.
(3) A refinancing mortgage is taken to have
been stamped with ad valorem duty as a
mortgage in respect of the amount required
30 to discharge the earlier mortgage (being an
amount in relation to which mortgage duty
has been paid or in relation to which an
exemption from duty has been obtained),
except as provided by sub-section (5).
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Stamps (Amendment) Act 1999
s. 20
Act No.
(4) If an advance is refinanced by more than one
lender, so that mortgages given to the lenders
together secure the balance outstanding
under an earlier mortgage, the definition of
5 "refinancing mortgage" in sub-section (1)
is to be construed as though--
(a) the reference to a mortgage securing the
outstanding balance were a reference to
the aggregate of such mortgages; and
10 (b) each lender were the holder of a
refinancing mortgage.
(5) If, as provided by sub-section (4), each of a
number of lenders is the holder of a
refinancing mortgage, a refinancing
15 mortgage held by each lender is taken to
have been duly stamped with ad valorem
duty as a mortgage in respect of an amount
equal to the same proportion of the amount
required to discharge the earlier mortgage as
20 the amount secured by that mortgage bears
to the total amount secured by the
refinancing mortgages held by all the
lenders.
(6) If each of 2 or more refinancing mortgages
25 severally secures the same advance--
(a) the provisions of sub-section (3) or (5),
as the case may be, apply to such one of
the mortgages as the Comptroller of
Stamps determines; and
30 (b) no duty is chargeable in respect of any
of the others (insofar as it is a
refinancing mortgage) but the
Comptroller may denote any of them in
a manner approved by the Comptroller.
35 (7) For the purposes of section 137I--
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Stamps (Amendment) Act 1999
s. 21
Act No.
(a) a refinancing mortgage that is taken, by
the operation of sub-section (3) or (5),
to be duly stamped is in either case the
"stamped instrument"; and
5 (b) duty is taken to have been paid on it to
the extent provided by whichever of
those sub-sections applies.
(8) Duty at the rate of $0!80 per $200 or part of
$200 is payable on the amount by which the
10 advance made under a refinancing mortgage
(not being a mortgage on which, by virtue of
sub-section (6)(b), no duty is chargeable)
exceeds--
(a) the amount required to discharge the
15 earlier mortgage; or
(b) the proportion of that amount referred
to in sub-section (5), in the case of a
refinancing to which sub-section (4)
applies.
20 (9) If the number of original borrowers is
reduced, the remaining borrower or
borrowers is or are taken to be the same
borrower or the same person for the purposes
of sub-section (1) or (2).'.
25 21. Exemption for assignment of residential lease
In the exemptions under Heading VIII in the Third
Schedule to the Principal Act, in clause (10) after
"lease" (where first occurring) insert ",
assignment of lease".
30
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Stamps (Amendment) Act 1999
Notes
Act No.
NOTES
1
Cl. 5: Section 75(3) specifies which persons are related persons for the
purposes of subdivision (7) of Division 3.
By Authority. Government Printer for the State of Victoria.
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Stamps (Amendment) Act 1999
Act No.
19
532154B.I1-20/4/99
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