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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Acts (Further Amendment) Act 1997
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--BUSINESS FRANCHISE (PETROLEUM PRODUCTS)
ACT 1979 3
3. Amendment of franchise fees 3
4. Better Roads Victoria Trust Account 4
PART 3--PAY-ROLL TAX ACT 1971 5
5. Definitions 5
6. Wages to include superannuation benefits 6
7. New sections 3A and 3B inserted 7
3A. Manner of determining liability of certain superannuation
benefits to taxation 7
3B. Superannuation benefits not readily related to particular
employees or their periods of service 8
8. Pay-roll tax liability for certain superannuation benefits 9
9. Reduction in rate of pay-roll tax 10
PART 4--STAMPS ACT 1958 11
10. Exemption from mortgage duty for pensioners and first home
buyers 11
11. New section 137MC substituted 11
137MC. Exemption for re-financed loans 11
12. Abolition of miscellaneous deed duty 13
NOTES 14
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531201B.I2-30/4/97
PARLIAMENT OF VICTORIA
A BILL
to amend the Business Franchise (Petroleum Products) Act 1979,
the Pay-roll Tax Act 1971 and the Stamps Act 1958 and for other
purposes.
State Taxation Acts (Further
Amendment) Act 1997
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to amend the Business
Franchise (Petroleum Products) Act 1979, the
5 Pay-roll Tax Act 1971 and the Stamps Act 1958.
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State Taxation Acts (Further Amendment) Act 1997
s. 2
Act No.
2. Commencement
(1) This Act, except section 4, Part 3 and section 12,
comes into operation on the day on which it
receives the Royal Assent.
5 (2) Section 12 is deemed to have come into operation
on 1 May 1997.
(3) Section 4 and Part 3 come into operation on 1 July
1997.
_______________
10
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State Taxation Acts (Further Amendment) Act 1997
s. 3
Act No.
PART 2--BUSINESS FRANCHISE (PETROLEUM
PRODUCTS) ACT 1979
No. 9722.
3. Amendment of franchise fees
Reprinted to
(1) In section 7(1) of the Business Franchise No. 80/1994
and
5 (Petroleum Products) Act 1979-- subsequently
amended by
(a) in paragraph (a)-- No. 42/1996.
(i) in sub-paragraph (i) for "12·1 per
centum" substitute "10%";
(ii) in sub-paragraph (ii) for "15·5 per
10 centum" substitute "10%";
(b) in paragraph (b)--
(i) in sub-paragraph (i) for "12·1 per
centum" substitute "10%";
(ii) in sub-paragraph (ii) for "15·5 per
15 centum" substitute "10%";
(c) in paragraph (c)--
(i) in sub-paragraph (iii) for "12·1 per
centum" substitute "10%";
(ii) in sub-paragraph (iv) for "15·5 per
20 centum" substitute "10%".
(2) After section 7(1) of the Business Franchise
(Petroleum Products) Act 1979 insert--
"(1A) Sub-section (1) as amended by section 3 of
the State Taxation Acts (Further
25 Amendment) Act 1997 applies to licences
issued under this Act for a licence period
commencing on or after 1 July 1997 and sub-
section (1) as in force immediately before
the commencement of that section applies to
30 licences issued for a period ending on or
before 30 June 1997.".
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State Taxation Acts (Further Amendment) Act 1997
s. 4
Act No.
4. Better Roads Victoria Trust Account
(1) For section 13(2) of the Business Franchise
(Petroleum Products) Act 1979 substitute--
"(2) There shall be paid out of the Consolidated
5 Fund (which is to the necessary extent
appropriated accordingly) into the Better
Roads Victoria Trust Account--
(a) in respect of the financial year
commencing on 1 July 1997 an amount
10 of $185 000 000; and
(b) in respect of each succeeding financial
year an amount equal to 45% of the
amount of ad valorem licence fees
collected under the Business Franchise
15 Acts in respect of petroleum products
during the preceding financial year--
in such instalments and at such times as are
determined from time to time by the
Treasurer.".
20 (2) After section 13(3) of the Business Franchise
(Petroleum Products) Act 1979 insert--
"(4) Despite anything to the contrary in section 4
of the State Taxation Acts (Further
Amendment) Act 1997, sub-section (2) as
25 in force immediately before the
commencement of that section continues to
apply to the payment to be made by
reference to licence fees collected during
June 1997.".
30 _______________
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State Taxation Acts (Further Amendment) Act 1997
s. 5
Act No.
PART 3--PAY-ROLL TAX ACT 1971
No. 8154.
5. Definitions
Reprinted to
(1) In section 3(1) of the Pay-roll Tax Act 1971 after No. 119/1994
and
the definition of "return period" insert-- subsequently
amended by
5 ' "superannuation benefit" means money paid or Nos 101/1995,
10/1996 and
payable by an employer in respect of an
42/1996.
employee--
(a) to or as a superannuation fund within
the meaning of the Superannuation
10 Industry (Supervision) Act 1993 of the
Commonwealth; or
(b) as a superannuation guarantee charge
within the meaning of the
Superannuation Guarantee
15 (Administration) Act 1992 of the
Commonwealth (but not including any
nominal interest component or
administration component within the
meaning of that Act); or
20 (c) to or as any other form of
superannuation, provident or retirement
fund or scheme including--
(i) a Superannuation Holding
Accounts Reserve within the
25 meaning of the Small
Superannuation Accounts Act
1995 of the Commonwealth; and
(ii) a wholly or partly unfunded fund
or scheme1;'.
30
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State Taxation Acts (Further Amendment) Act 1997
s. 6
Act No.
(2) After section 3(1) of the Pay-roll Tax Act 1971
insert--
'(1A) A reference in the definition of
"superannuation benefit" in sub-section (1)
5 to an employee includes a reference to any
person to whom, by virtue of a paragraph of
the definition of "wages" in sub-section (1),
an amount paid or payable in the
circumstances referred to in that paragraph
10 constitutes wages.'.
6. Wages to include superannuation benefits
(1) For section 3(2AB) of the Pay-roll Tax Act 1971
substitute--
"(2AB) For the purposes of this Act and subject to
15 sub-section (2AC), a reference to wages
includes a reference to superannuation
benefits.
(2AC) A reference to wages does not include a
reference to superannuation benefits that are
20 payments to a wholly or partly unfunded
superannuation, provident or retirement fund
or scheme in respect of services performed
or rendered by an employee before 1 July
1997.".
25 (2) After section 3(4) of the Pay-roll Tax Act 1971
insert--
"(5) For the purposes of this Act, a
superannuation, provident or retirement fund
or scheme is unfunded to the extent that
30 money paid or payable by an employer in
respect of an employee covered by the fund
or scheme is not paid or payable during the
employee's period of service with the
employer.".
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State Taxation Acts (Further Amendment) Act 1997
s. 7
Act No.
(3) In section 3C(2) of the Pay-roll Tax Act 1971, at
the end of paragraphs (a), (b) and (d) insert "and".
(4) After section 3C(2)(d) of the Pay-roll Tax Act
1971 insert--
5 "(e) an amount paid or payable for or in relation
to the performance of work under a relevant
contract is deemed to include any payment
made by a person who is deemed to be an
employer under a relevant contract in
10 relation to a person who is deemed to be an
employee under the relevant contract that
would be a superannuation benefit if made in
relation to a person in the capacity of an
employee.".
15 7. New sections 3A and 3B inserted
After section 3 of the Pay-roll Tax Act 1971
insert--
"3A. Manner of determining liability of certain
superannuation benefits to taxation
20 (1) Money paid by an employer, after 30 June
1997, to a wholly or partly unfunded
superannuation, provident or retirement fund
or scheme that is alleged by the employer to
be paid in order to make up a deficiency in
25 the fund or scheme, as at 30 June 1997,
relating to a benefit payable in respect of
services performed or rendered by an
employee on or before that date, must be
evidenced to the satisfaction of the
30 Commissioner in the employer's records for
pay-roll tax purposes.
(2) In particular, the employer's records must
show the manner of calculation of the
deficiency and any actuarial basis for it.
35
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State Taxation Acts (Further Amendment) Act 1997
s. 7
Act No.
(3) For the purposes of sub-section (2) and of
any assessment of pay-roll tax to which that
sub-section is material, the certificate of a
fellow or accredited member of the Institute
5 of Actuaries of Australia to the effect that the
actuarial basis on which an amount is
calculated as a deficiency is justified is
evidence and, in the absence of evidence to
the contrary, proof of that fact.
10 (4) If records are not kept as required by this
section, the Commissioner is entitled to
assume for the purposes of an assessment of
pay-roll tax, that a payment of money by an
employer to an unfunded fund or scheme
15 after 30 June 1997 is an amount paid or
payable in respect of the services of an
employee after that date.
3B. Superannuation benefits not readily related
to particular employees or their periods of
20 service
For the purposes of an assessment of pay-roll
tax, the Commissioner may determine--
(a) whether, and the extent to which, any
money paid or payable by an employer
25 to a superannuation, provident or
retirement fund or scheme that is not
identified by the employer as paid or
payable in respect of a particular
employee (and whether or not
30 purporting to be so paid or payable on
any actuarial basis) is to be regarded as
money paid or payable in respect of a
particular employee; and
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State Taxation Acts (Further Amendment) Act 1997
s. 8
Act No.
(b) subject to section 3A, the portion of an
amount paid on or after 1 July 1997 by
an employer to a wholly or partly
unfunded fund or scheme, being an
5 amount paid in respect of an employee
(or that is to be regarded under
paragraph (a) to have been so paid)
who performed or rendered services to
the employer on or after, as well as
10 before, 1 July 1997, that is to be
regarded as having been paid in respect
of services performed or rendered
before that date.".
8. Pay-roll tax liability for certain superannuation
15 benefits
(1) In section 6(1) of the Pay-roll Tax Act 1971 after
"section 10" insert "and sub-section (1AA)".
(2) After section 6(1) of the Pay-roll Tax Act 1971
insert--
20 "(1AA) Wages that are superannuation benefits,
being money paid or payable by an
employer--
(a) to make up a deficiency in an unfunded
superannuation, provident or retirement
25 fund or scheme; or
(b) as a superannuation guarantee charge
(within the meaning of the
Superannuation Guarantee
(Administration) Act 1992 of the
30 Commonwealth)--
are liable to pay-roll tax under this Act as if
the services in respect of which the money is
paid or payable were services performed or
rendered during the month in which the
35 money is paid or becomes payable.".
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State Taxation Acts (Further Amendment) Act 1997
s. 9
Act No.
9. Reduction in rate of pay-roll tax
In section 7(1) of the Pay-roll Tax Act 1971--
(a) at the end of paragraph (c) insert "and";
(b) in paragraph (e), after "1990" insert "and
5 before the month of July 1997";
(c) after paragraph (e) insert--
"; and
(f) at the rate of 6·25% in respect of such
of those wages as are paid or payable
10 after the month of June 1997 and are
not liable to pay-roll tax at the rate
prescribed in paragraph (a), (b), (c), (d)
or (e).".
_______________
15
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State Taxation Acts (Further Amendment) Act 1997
s. 10
Act No.
PART 4--STAMPS ACT 1958
10. Exemption from mortgage duty for pensioners and
first home buyers
No. 6375.
(1) In section 137MA(1A)(a) of the Stamps Act 1958
Reprinted to
5 after "section" insert "71A or". No. 10/1996
and
(2) After section 137MA(1A) of the Stamps Act subsequently
1958 insert-- amended by
Nos 35/1996,
42/1996,
"(1B) A reference in sub-section (1A)(b) to an
73/1996 and
eligible person who mortgages real property 84/1996.
10 includes a reference to an eligible person
who enters into a refinancing mortgage
(within the meaning of section 137MC(1)) in
respect of real property.".
(3) After section 137MA(5) of the Stamps Act 1958
15 insert--
"(6) This section, as amended by section 10 of
the State Taxation Acts (Further
Amendment) Act 1997 applies to
refinancing mortgages entered into on or
20 after 1 May 1997.".
11. New section 137MC substituted
For section 137MC of the Stamps Act 1958
substitute--
'137MC. Exemption for re-financed loans
25 (1) In this section--
"refinancing mortgage" means a mortgage
to secure a loan the arrangements for
which include the discharge of an
earlier mortgage securing an earlier
30 loan if--
(a) the borrower is the same as under
the earlier loan; and
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State Taxation Acts (Further Amendment) Act 1997
s. 11
Act No.
(b) either--
(i) duty under Heading XXII in
the Third Schedule was paid
in respect of the earlier
5 mortgage and it was duly
stamped; or
(ii) the earlier mortgage was
exempt from duty under this
Act.
10 (2) A person who enters into a refinancing
mortgage may apply in writing to the
Comptroller of Stamps for an exemption
from, or refund of, an amount of stamp duty
paid or payable in respect of the mortgage
15 calculated in accordance with this section.
(3) An application under this section must be
accompanied by a statutory declaration
verifying the statements made in the
application.
20 (4) The amount of stamp duty in respect of
which a person is entitled to an exemption or
refund under this section is to be determined
in accordance with the following formula--
A = B-C
25 where--
A is the amount of the exemption or refund;
B is the stamp duty paid or payable (but for
this section) in respect of the refinancing
mortgage;
30 C is the amount of stamp duty that would
have been paid or payable if the loan secured
by the refinancing mortgage had been
reduced by the amount of the principal
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State Taxation Acts (Further Amendment) Act 1997
s. 12
Act No.
outstanding under the earlier loan
immediately before the execution of the
refinancing mortgage.
(5) If an application is made under this section
5 and the Comptroller is satisfied that the
applicant is entitled to an exemption from or
a refund of stamp duty, the Comptroller must
grant the exemption or make the refund
accordingly.
10 (6) A person must not, in connection with an
application under this section, make a
statement that, to the person's knowledge, is
false or misleading in a material particular.
Penalty: 10 penalty units or imprisonment
15 for 6 months or both.
(7) If a person is convicted of an offence against
sub-section (6), the person is liable, by way
of further penalty, to pay an amount equal to
double the amount of duty that, but for the
20 offence, would have been payable.
(8) This section, as substituted by section 11 of
the State Taxation Acts (Further
Amendment) Act 1997, applies in respect of
a refinancing mortgage entered into on or
25 after 1 May 1997 and this section, as in force
immediately before the commencement of
section 11 of the State Taxation Acts
(Further Amendment) Act 1997, applies in
respect of a mortgage entered into before 1
30 May 1997.'.
12. Abolition of miscellaneous deed duty
In the Stamps Act 1958 Subdivision (19) of
Division 3 of Part II and Heading XXIV in the
Third Schedule are repealed.
35
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State Taxation Acts (Further Amendment) Act 1997
Notes
Act No.
NOTES
1
Sub-section (5) defines an unfunded fund or scheme.
By Authority. Government Printer for the State of Victoria.
14
531201B.I2-30/4/97
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