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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Acts (Miscellaneous Amendments)
Act 2003
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. Definitions 3
4. Transactions concerning dutiable property 3
5. Dutiable property 4
6. Dutiable value includes GST 4
7. Aggregation of certain dutiable transactions 5
8. Sub sales of land 5
9. Apparent purchasers, trustees and nominees 5
10. Exemption from duty--domestic relationships 6
11. Transfers to trustees or custodians of superannuation funds or
trusts 6
12. Transfer of farms to relatives or charities 6
13. Land-rich private corporations 6
14. Insurance premiums include GST 7
15. Refunds where insurance premiums are returned 8
16. Motor vehicle duty 8
17. Dutiable value of motor vehicles includes GST 9
18. Transitional provisions--GST 9
PART 3--PAY-ROLL TAX ACT 1971 11
19. Grouping provisions 11
20. Phased abolition of exemption for apprentices' wages 12
ENDNOTES 13
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
PARLIAMENT OF VICTORIA
Initiated in Assembly 6 May 2003
As amended by Assembly 5 June 2003
A BILL
to make miscellaneous amendments to the Duties Act 2000 and the
Pay-roll Tax Act 1971 and for other purposes.
State Taxation Acts (Miscellaneous
Amendments) Act 2003
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to make miscellaneous
amendments to the Duties Act 2000 and the Pay-
5 roll Tax Act 1971.
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 1--Preliminary
s. 2
2. Commencement
(1) This Act (except sections 4, 6, 13(2), 14, 16, 17
and 20) comes into operation on the day after the
day on which it receives the Royal Assent.
5 (2) Sections 6, 13(2), 14 and 17 are deemed to have
come into operation on 1 July 2001.
(3) Section 4 is deemed to have come into operation
on 8 February 2003.
(4) Section 20(1) and (2) is deemed to have come into
10 operation on 7 May 2003.
(5) Section 16 comes into operation on 1 July 2003.
(6) Section 20(3) comes into operation on 1 January
2004.
__________________
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 3
PART 2--DUTIES ACT 2000
3. Definitions
See: In section 3(1) of the Duties Act 2000--
Act No.
79/2000.
(a) in the definition of "primary production"--
Reprint No. 2
as at
5 (i) in paragraph (a), after "cultivation"
1 July 2002.
(where secondly occurring) insert
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"(whether in a natural, processed or
dpc.vic.
converted state)";
gov.au
(ii) in paragraph (e), after "propagation"
10 insert "for sale";
(b) in the definition of "related person", after
paragraph (e) insert--
"(f) persons are related persons for the
purposes of Chapter 3 if they (whether
15 jointly or separately) acquire interests
in a private corporation and the
acquisitions form, evidence, give effect
to or arise from substantially one
transaction or one series of
20 transactions;".
4. Transactions concerning dutiable property
(1) For section 7(1)(b)(vi) of the Duties Act 2000
substitute--
"(vi) any other transaction that results in a change
25 in beneficial ownership of dutiable property
(other than an excluded transaction).".
(2) After section 7(2) of the Duties Act 2000
insert--
"(2A) Despite sub-section (1)(b)(vi), an excluded
30 transaction that results in a change in
beneficial ownership of dutiable property is a
dutiable transaction if it is part of a scheme
or arrangement that, in the Commissioner's
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 5
opinion, was made with a collateral purpose
of reducing the duty otherwise chargeable
under this Chapter.".
(3) In section 7(4) of the Duties Act 2000, after the
5 definition of "declaration of trust" insert--
' "excluded transaction" means--
(a) the purchase, gift, allotment or transfer
of any unit in a unit trust scheme; or
(b) the variation, abrogation or alteration of
10 a right attaching to any such unit; or
(c) the redemption, surrendering or
cancellation of any such unit; or
(d) the variation or alteration of a right of a
holder of any such unit; or
15 (e) any combination of the transactions
referred to in paragraphs (a), (b), (c) or
(d).'.
5. Dutiable property
(1) After section 10(1)(a)(i) of the Duties Act 2000
20 insert--
"(ia) a life estate;
(ib) an estate in remainder;".
(2) In section 10(1)(d)(iv) of the Duties Act 2000, for
"land used for primary production" substitute
25 "primary production".
6. Dutiable value includes GST
At the end of section 20 of the Duties Act 2000
insert--
"(2) In determining the dutiable value of dutiable
30 property, there is to be no discount for the
amount of GST (if any) payable on the
supply of that property.".
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 7
7. Aggregation of certain dutiable transactions
In section 24(2A)(a)(i) of the Duties Act 2000,
after "1958" insert "(not being a partial interest
in a parcel of land)".
5 8. Sub sales of land
In section 31(3) of the Duties Act 2000--
(a) in paragraph (b), after "entered into" insert
"and is still a director of the body corporate
at the time of the transfer";
10 (b) in paragraph (d), after "entered into" insert
"and is still a related body corporate of the
transferee at the time of the transfer".
9. Apparent purchasers, trustees and nominees
(1) After section 34(2) of the Duties Act 2000
15 insert--
"(3) This section applies whether or not there has
been a change in the legal description of the
dutiable property or marketable securities.
Example
20 An example of a change in the legal description of
dutiable property is the issuing of new certificates of
title of land following a subdivision of the land.".
(2) After section 35(2) of the Duties Act 2000
insert--
25 "(3) This section applies whether or not there has
been a change in the legal description of the
dutiable property or marketable securities.
Example
An example of a change in the legal description of
30 dutiable property is the issuing of new certificates of
title of land following a subdivision of the land.".
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 10
10. Exemption from duty--domestic relationships
In section 38(2) of the Duties Act 2000, after
"marriage" (wherever occurring) insert "or
domestic relationship".
5 11. Transfers to trustees or custodians of superannuation
funds or trusts
In section 41(1) of the Duties Act 2000, after
"dutiable property" insert "made without
monetary consideration".
10 12. Transfer of farms to relatives or charities
In section 56(1)(a) of the Duties Act 2000, after
"fee simple" insert ", life estate or estate in
remainder".
13. Land-rich private corporations
15 (1) For section 72(2) of the Duties Act 2000
substitute--
"(2) In calculating the unencumbered value of the
property of a private corporation for the
purposes of this section, property of any of
20 the following kinds is not counted--
(a) cash, whether in Australian or other
currency;
(b) money on deposit with an authorised
deposit-taking institution (within the
25 meaning of the Banking Act 1959 of
the Commonwealth), negotiable
instruments or debt securities;
(c) loans that, according to their terms, are
to be repaid on demand by the lender or
30 within 12 months after the date of the
loan;
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 14
(d) if the private corporation is a private
company, loans to persons who, in
relation to the company or to a majority
shareholder or director of the company,
5 are associated persons;
(e) if the private corporation is a private
unit trust scheme, loans to persons who,
in relation to a trustee or beneficiary of
the scheme, are associated persons;
10 (f) prescribed property, unless the
Commissioner, being satisfied that the
property concerned was not acquired
solely or mainly for the purpose of
avoiding duty under this Part, notifies
15 the private corporation that the property
will be counted for the purposes of such
a calculation;
(g) the private corporation's shareholding
or interest in a subsidiary of the private
20 corporation.
Note: Section 74 defines a subsidiary of a
private corporation.".
(2) In section 76(3)(a) of the Duties Act 2000, for
"private company" substitute "private
25 corporation".
14. Insurance premiums include GST
After section 177(2) of the Duties Act 2000
insert--
'(2A) "Premium" also includes any amount in
30 respect of GST on the supply to which the
insurance relates.'.
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 15
15. Refunds where insurance premiums are returned
After section 183(3) of the Duties Act 2000
insert--
"(4) As an alternative to applying for a refund
5 under Part 4 of the Taxation
Administration Act 1997, a general insurer
may offset an amount equivalent to the
amount of refund to which the insurer is
entitled under sub-section (1) against any
10 other payment required to be made under this
Act by the insurer.
(5) Sub-section (4) only applies if the general
insurer--
(a) has not charged to, or recovered from,
15 any other person any amount in respect
of the whole or any part of the duty to
which the general insurer is entitled to a
refund; or
(b) has refunded or reimbursed each person
20 for the amount charged to or recovered
from that person in respect of the duty
to which the general insurer is entitled
to a refund.
(6) Sub-sections (4) and (5) apply despite
25 anything to the contrary in section 18(2) of
the Taxation Administration Act 1997.".
16. Motor vehicle duty
At the end of section 218 of the Duties Act 2000
insert--
30 "(2) If--
(a) an application for registration or
transfer of registration of a motor
vehicle is made by a person who has a
physical disability; and
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 17
(b) the motor vehicle is modified to enable
the person to drive the vehicle--
the amount of duty is to be reduced by the
reasonable cost of the modification of the
5 vehicle.
(3) If the reasonable cost of the modification of
a motor vehicle referred to in sub-section (2)
is greater than the amount of duty chargeable
(but for that sub-section) on an application
10 for registration or transfer of registration of
the vehicle, no duty is chargeable on the
application.
(4) For the purposes of sub-sections (2) and (3),
the reasonable cost of the modification of a
15 motor vehicle is the lower of--
(a) the actual cost of the modification;
(b) the price payable in the open market for
the modification.".
17. Dutiable value of motor vehicles includes GST
20 After section 219(2) of the Duties Act 2000
insert--
"(3) In determining the dutiable value of a motor
vehicle, there is to be no discount for the
amount of GST (if any) payable on the
25 supply of the vehicle.".
18. Transitional provisions--GST
After clause 18 in Schedule 2 to the Duties Act
2000 insert--
"19. State Taxation Acts (Miscellaneous Amendments)
30 Act 2003
(1) In ascertaining, for the purposes of the provisions of
the former Act specified in sub-clause (2), the value
of anything or the consideration or premium paid for
anything, there is to be no discount for the amount of
35 GST (if any) payable on the supply of that thing.
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 2--Duties Act 2000
s. 18
(2) The provisions of the former Act to which
sub-clause (1) applies are--
(a) subdivision (6) of Division 3 of Part II and
Heading VI in the Third Schedule (Conveyance
5 of Real Property and Land Transfer);
(b) subdivision (8) of Division 3 of Part II and
Heading VIII in the Third Schedule (Lease or
Agreement for a Lease);
(c) subdivision (11) of Division 3 of Part II
10 (Insurance and Assurance Business);
(d) subdivision (16) of Division 3 of Part II and
Heading XXI in the Third Schedule (Motor
Vehicle and Heavy Trailer Registration).
(3) This clause applies, and must be taken always to have
15 applied, from and including 1 July 2000.
(4) Nothing in this clause affects the rights of the
parties in the Supreme Court proceeding known as
Royal & Sun Alliance Insurance Australia Ltd
(ACN 007 746 092) v Commissioner of State Revenue
20 (Vic) (No. 4415 of 2002).".
__________________
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 3--Pay-roll Tax Act 1971
s. 19
PART 3--PAY-ROLL TAX ACT 1971
19. Grouping provisions
See: (1) For section 9A(1A)(b), (c) and (d) of the Pay-roll
Act No.
Tax Act 1971 substitute--
8154.
Reprint No. 9
5 '(b) one or more employees of an employer
as at
1 July 2002.
perform duties for or in connection with one
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employer and one or more other persons
gov.au
("associates"); or
10 (c) one or more employees of an employer are
employed solely or mainly to perform duties
for or in connection with one or more
businesses carried on by one or more other
persons ("associates"); or
15 (d) one or more employees of an employer
perform duties for or in connection with one
or more businesses carried on by one or
more other persons ("associates"), being
duties performed in connection with, or in
20 fulfilment of the employer's obligation
under, an agreement, arrangement or
undertaking for the provision of services to
any one or more of the associates in
connection with that business or those
25 businesses--
(i) whether the agreement, arrangement or
undertaking is formal or informal,
express or implied; and
(ii) whether or not the agreement,
30 arrangement or undertaking provides
for duties to be performed by the
employees or specifies the duties to be
performed by them--'.
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Part 3--Pay-roll Tax Act 1971
s. 20
(2) At the foot of section 9A(1A) of the Pay-roll Tax
Act 1971 insert--
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
5 section in certain circumstances.".
(3) At the foot of section 9A(1B) of the Pay-roll Tax
Act 1971 insert--
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
10 section in certain circumstances.".
(4) At the foot of section 9A(2) of the Pay-roll Tax
Act 1971 insert--
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
15 section in certain circumstances.".
20. Phased abolition of exemption for apprentices' wages
(1) At the foot of section 10(1)(k) of the Pay-roll Tax
Act 1971 insert--
"Note: This exemption does not apply to wages paid or
20 payable on or after 1 July 2003 under training
agreements made on or after 7 May 2003--
see sub-section (4).".
(2) After section 10(3) of the Pay-roll Tax Act 1971
insert--
25 "(4) Sub-section (1)(k) does not apply to wages
paid or payable on or after 1 July 2003 to an
apprentice under a training agreement made
on or after 7 May 2003.".
(3) In section 10 of the Pay-roll Tax Act 1971, sub-
30 sections (1)(k) and (4) are repealed.
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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551063B.A1-6/6/2003 BILL LA AS SENT 25-10-2004
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