Victorian Bills Victorian Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Acts (General Amendment) Act 2005
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 2
1. Purposes 2
2. Commencement 3
PART 2--BUSINESS FRANCHISE (PETROLEUM PRODUCTS)
ACT 1979 5
3. Better Roads Victoria Trust Account 5
PART 3--DEBITS TAX ACT 1990 6
4. New section 22 inserted 6
22. Liability to debits tax discontinued 6
5. Returns 6
PART 4--DUTIES ACT 2000 7
6. Definition 7
7. Consequential repeals 7
8. Interdependent sale of land and business goods 7
9. Sub sales of land 7
10. New Part 4A inserted in Chapter 2 7
PART 4A--TRANSACTIONS TREATED AS SUB-SALES
OF LAND 7
Division 1--Introduction 7
32A. Definitions 7
Division 2--Transfers Involving Additional Consideration 10
32B. Application of Division 10
32C. How duty is charged on transfer 12
32D. Dutiable value of transactions 13
32E. When does the liability to duty arise? 14
32F. Who is liable to pay the duty? 14
32G. Exemptions and concessions 15
32H. No double duty 15
i
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
Clause Page
Division 3--Transfers Involving Land Development 16
32I. Application of Division 16
32J. How duty is charged on transfer 17
32K. Dutiable value of transactions 18
32L. When does the liability to duty arise? 19
32M. Who is liable to pay the duty? 20
32N. Exemptions and concessions 20
32O. No double duty 21
Division 4--Transfers Resulting from Options 21
32P. Application of Division 21
32Q. How duty is charged on transfer 22
32R. Dutiable value of transactions 23
32S. When does the liability to duty arise? 25
32T. Who is liable to pay the duty? 25
32U. Exemptions and concessions 25
Division 5--Miscellaneous 26
32V. Provisions for determining consideration 26
32W. No duty for transactions between relatives 29
32X. Parties required to provide information to
Commissioner 30
11. Repeal of certain exemptions 31
12. Extension of temporary suspension of first home owner
exemption or concession 31
13. Land rich provisions 31
14. New section 89PA inserted 32
89PA. Registration of declared wholesale unit trust schemes 32
15. Further provisions for declared wholesale unit trust schemes 32
16. New section 125A inserted 33
125A. Hire of goods duty abolished from January 2007 33
17. Consequential amendments on abolition of hire of goods duty 33
18. Repeal of motor vehicle exemption 34
19. Corporate reconstructions 34
20. New Division 1A inserted in Part 2 of Chapter 11 35
Division 1A--Corporate Consolidation Exemption 35
250DA. Definitions 35
250DB. What is a corporate consolidation? 35
250DC. What is an eligible transaction? 36
250DD. Exemption for certain transactions arising out of
corporate consolidation 38
250DE. Conditions of exemption 40
250DF. Revocation of exemption 40
250DG. Special provision in relation to land-rich duty for private
unit trust scheme consolidations 42
ii
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
Clause Page
21. Further corporate reconstruction amendments 43
22. Transitional provisions 43
21. State Taxation Acts (General Amendment)
Act 2005 43
PART 5--FIRST HOME OWNER GRANT ACT 2000 46
23. Extension of additional amount of grant 46
PART 6--LAND TAX ACT 1958 47
24. Definitions 47
25. Minimum assessment 48
26. Exemption for residential care facilities and supported
residential services (from January 2004) 49
27. Exemption for caravan parks (from January 2005) 49
28. New section 9A inserted (from January 2004) 50
9A. Rooming house exemption 50
29. Special land tax 52
30. Principal place of residence exemption 52
31. New sections 72 and 73 substituted, 73A and 73B inserted 53
72. Power to require information, documents and things,
and attendance 53
73. Powers of Supreme Court if non-compliance with
section 72 55
73A. Power of entry 56
73B. Self-incrimination 58
32. New tax rates and rebates 58
6A. Rebate of 2005 land tax 58
7. Land tax for 2006 60
8. Land tax for 2007 62
9. Land tax for 2008 and subsequent years 63
PART 7--PAY-ROLL TAX ACT 1971 65
33. Employment agents 65
34. Exemption for wages paid by school councils (from July 2004) 65
PART 8--TAXATION ADMINISTRATION ACT 1997 66
35. Interest rate 66
36. Penalty tax 66
37. Secrecy provisions 67
38. Valuation of foreign currency 67
iii
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
Clause Page
PART 9--TAXATION (INTEREST ON OVERPAYMENTS)
ACT 1986 68
39. Interest rate 68
ENDNOTES 69
iv
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
PARLIAMENT OF VICTORIA
A BILL
to amend the Business Franchise (Petroleum Products) Act 1979,
the Debits Tax Act 1990, the Duties Act 2000, the First Home
Owner Grant Act 2000, the Land Tax Act 1958, the Pay-roll Tax
Act 1971, the Taxation Administration Act 1997 and the Taxation
(Interest on Overpayments) Act 1986 and for other purposes.
State Taxation Acts (General
Amendment) Act 2005
The Parliament of Victoria enacts as follows:
1
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 1--Preliminary
s. 1
PART 1--PRELIMINARY
1. Purposes
The purposes of this Act are--
(a) to amend the Business Franchise
(Petroleum Products) Act 1979 to broaden
5
the purposes of the Better Roads Victoria
Trust Account;
(b) to amend the Debits Tax Act 1990 to
discontinue debits tax from 1 July 2005;
(c) to amend the Duties Act 2000--
10
(i) to discontinue hire of goods duty from
1 January 2007;
(ii) to clarify the way certain transactions
are chargeable with duty;
(iii) to remove certain exemptions;
15
(iv) to clarify the land-rich provisions;
(v) to extend the corporate reconstruction
exemption to corporate consolidations;
(d) to amend the First Home Owner Grant Act
2000 to extend the period of the additional
20
amount of the grant;
(e) to amend the Land Tax Act 1958--
(i) to revise the rates of land tax from
2006, provide a partial rebate of 2005
land tax and cap increases in land tax
25
for 2006;
(ii) to exempt privately-owned caravan
parks, residential aged care facilities,
supported residential services and
certain rooming houses from land tax;
30
2
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 1--Preliminary
s. 2
(iii) to clarify the way refunds of land tax
are calculated for land that becomes a
principal place of residence;
(iv) to align investigatory powers with those
in the Taxation Administration Act
5
1997;
(f) to amend the Pay-roll Tax Act 1971 to
exempt wages paid by school councils from
pay-roll tax;
(g) to amend the Taxation Administration Act
10
1997--
(i) with respect to interest rates, exchange
rates and penalty tax;
(ii) to permit disclosure of information to
the fire services;
15
(h) to amend the Taxation (Interest on
Overpayments) Act 1986 with respect to
interest rates.
2. Commencement
(1) This Act, except Parts 2, 3, 5 and 7 and
20
sections 12, 13(1), 19, 20, 21, 24(2), 24(3), 26, 27,
28, 29 and 30, comes into operation on the day
after the day on which it receives the Royal
Assent.
(2) Sections 24(3), 26, 28 and 29 (except sub-
25
section (2)) are deemed to have come into
operation on 1 January 2004.
(3) Section 13(1) is deemed to have come into
operation on 13 May 2004.
(4) Part 7, except section 33, is deemed to have come
30
into operation on 1 July 2004.
(5) Sections 24(2), 27, 29(2), 30 and 33 are deemed to
have come into operation on 1 January 2005.
3
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 1--Preliminary
s. 2
(6) Sections 19, 20 and 21 are deemed to have come
into operation on 31 March 2005.
(7) Parts 2, 3 and 5 and section 12 are deemed to have
come into operation on 1 July 2005.
__________________
4
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 2--Business Franchise (Petroleum Products) Act 1979
s. 3
See:
PART 2--BUSINESS FRANCHISE (PETROLEUM
Act No.
PRODUCTS) ACT 1979 9272.
Reprint No. 4
as at
3. Better Roads Victoria Trust Account 19 March
1998
In section 13(3) of the Business Franchise and
(Petroleum Products) Act 1979, after "2004"
5 amending
Act Nos
insert ", road safety initiatives and traffic and 103/1998,
transport integration programs,". 6/2000 and
12/2004.
LawToday:
www.dms.
dpc.vic.
gov.au
__________________
5
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 3--Debits Tax Act 1990
s. 4
See: PART 3--DEBITS TAX ACT 1990
Act No.
78/1990.
4. New section 22 inserted
Reprint No. 2
as at
After the heading to Part 8 of the Debits Tax Act
18 March
1999
1990 insert--
and
amending
"22. Liability to debits tax discontinued
5 Act Nos
34/1999 and
Liability to pay debits tax on a taxable debit
47/1999.
LawToday:
or eligible debit does not arise under this Act
www.dms.
if the debit is made on or after 1 July 2005.".
dpc.vic.
gov.au
5. Returns
(1) After section 28(4) of the Debits Tax Act 1990
10
insert--
"(5) Sub-section (1) does not require a return
relating to any month after June 2005 to be
lodged.".
(2) After section 55(1) of the Debits Tax Act 1990
15
insert--
"(2) Sub-section (1) does not require a return
relating to an exempt account kept on or
after 1 July 2005 to be lodged.".
__________________
6
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 6
See:
PART 4--DUTIES ACT 2000
Act No.
79/2000.
6. Definition Reprint No. 4
as at
In section 3(1) of the Duties Act 2000, in the 1 March 2005.
LawToday:
definition of "wholesale unit trust scheme", for www.dms.
"or an imminent wholesale unit trust scheme"
5 dpc.vic.
gov.au
substitute ", an imminent wholesale unit trust
scheme or a declared wholesale unit trust
scheme".
7. Consequential repeals
Sections 10(1)(f) and 21(2) of the Duties Act
10
2000 are repealed.
8. Interdependent sale of land and business goods
In section 22B(6) of the Duties Act 2000, in the
definition of "business goods", for "(iii) or (iv)"
substitute "(iii), (iv) or (v)".
15
9. Sub sales of land
Section 31 of the Duties Act 2000 is repealed.
10. New Part 4A inserted in Chapter 2
After Part 4 of Chapter 2 of the Duties Act 2000
insert--
20
'PART 4A--TRANSACTIONS TREATED AS
SUB-SALES OF LAND
Division 1--Introduction
32A. Definitions
In this Part--
25
"associate" of a person means--
(a) an associated person of that
person; or
7
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(b) a person acting in concert with
that person;
"consideration" means the amount of a
monetary consideration or the value of
a non-monetary consideration;
5
"land development" means any one or
more of the following in relation to
land--
(a) preparing a plan of subdivision of
the land or taking any steps to
10
have the plan registered under the
Subdivision Act 1988;
(b) applying for or obtaining a permit
under the Planning and
Environment Act 1987 in
15
relation to the use or development
of the land;
(c) applying for or obtaining a permit
or approval under the Building
Act 1993 in relation to the land;
20
(d) doing anything in relation to the
land for which a permit or
approval referred to in
paragraph (c) would be required;
(e) developing or changing the land in
25
any other way that would lead to
the enhancement of its value;
8
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
"option" means--
(a) a right, granted by an owner of
property to another person, that
entitles that other person, or a
person to whom the right is
5
assigned, to require the owner
to--
(i) enter into a contract of sale
of the property to that other
person or a subsequent
10
assignee of that other person;
or
(ii) transfer the property to that
other person or a subsequent
assignee of that other person;
15
or
(b) a right, granted to an owner of
property by another person, that
entitles the owner to require that
other person, or a person approved
20
by the owner and nominated by
that other person, to--
(i) enter into a contract to buy
the property from the owner;
or
25
(ii) accept a transfer of the
property from the owner.
9
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
Division 2--Transfers Involving Additional
Consideration
32B. Application of Division
(1) This Division applies to a transfer of dutiable
property referred to in section 10(1)(a) or (d)
5
if--
(a) a person ("the vendor") enters into a
contract ("the sale contract") to sell or
transfer the property to another person
("the first purchaser"); and
10
(b) a person other than the first purchaser
("a subsequent purchaser") obtains
the right to have the property or any
part of it transferred, on completion of
the sale contract, to the subsequent
15
purchaser ("transfer right"); and
(c) the subsequent purchaser or an
associate of the subsequent purchaser
gives or agrees to give additional
consideration in order for the
20
subsequent purchaser to obtain the
transfer right; and
(d) the vendor transfers the property or any
part of it to a subsequent purchaser.
(2) It is immaterial whether a subsequent
25
purchaser obtains a transfer right--
(a) by way of an assignment, nomination,
novation or otherwise; and
(b) from the first purchaser or from another
subsequent purchaser.
30
(3) Each assignment, nomination, novation or
other arrangement by which a subsequent
purchaser obtains a transfer right is called a
"subsequent transaction".
10
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(4) In this section--
"additional consideration" for a transfer
right means any consideration given or
agreed to be given by the subsequent
purchaser or an associate of the
5
subsequent purchaser in order for the
subsequent purchaser to obtain the
transfer right (other than reimbursement
of excluded costs)--
(a) if the subsequent purchaser
10
obtained the transfer right from
the first purchaser--that exceeds
the consideration given or agreed
to be given to the vendor by the
first purchaser under the sale
15
contract in respect of the property
the subject of the transfer right;
(b) if the subsequent purchaser
obtained the transfer right from
another subsequent purchaser--
20
that exceeds the consideration
given or agreed to be given by that
other subsequent purchaser or an
associate of that other subsequent
purchaser in order for that other
25
subsequent purchaser to obtain a
transfer right, to the extent that the
consideration relates to the first-
mentioned transfer right;
"excluded costs" means--
30
(a) legal costs or other fees or
charges, including reasonable
selling agents' fees and any
statutory fees or charges;
(b) survey or valuation payments;
35
11
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(c) GST other than in circumstances
where an input tax credit or
reduced input tax credit is
available;
(d) any other costs that, in the
5
Commissioner's opinion, were
reasonably incurred--
(i) if the subsequent purchaser
obtained the transfer right
from the first purchaser--by
10
the first purchaser as part of
the sale contract;
(ii) if the subsequent purchaser
obtained the transfer right
from another subsequent
15
purchaser--by that other
subsequent purchaser or an
associate of that other
subsequent purchaser in
order for that other
20
subsequent purchaser to
obtain a transfer right.
32C. How duty is charged on transfer
(1) Duty on a transfer to which this Division
applies is not charged in respect of the
25
transfer from the vendor to the transferee,
but is charged separately and distinctly on--
(a) the dutiable value of the sale contract as
if it had been completed by the first
purchaser; and
30
(b) the dutiable value of each subsequent
transaction.
(2) Duty is charged at the rate set out in Part 3
on the dutiable values referred to in sub-
section (1).
35
12
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
32D. Dutiable value of transactions
(1) For the purposes of this Division, the
dutiable value of the sale contract referred to
in section 32C(1)(a) is the greater of--
(a) the consideration given or agreed to be
5
given under the sale contract; and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
in the open market on the date on which
10
the sale contract was entered into.
(2) For the purposes of this Division, the
dutiable value of a subsequent transaction
referred to in section 32C(1)(b) is the greater
of--
15
(a) the consideration given or agreed to be
given by the subsequent purchaser or an
associate of the subsequent purchaser in
order for the subsequent purchaser to
obtain the transfer right under the
20
transaction, other than--
(i) legal costs or other fees or
charges, including reasonable
selling agents' fees and any
statutory fees or charges;
25
(ii) survey or valuation payments;
(iii) GST other than in circumstances
where an input tax credit or
reduced input tax credit is
available;
30
(iv) any other costs that, in the
Commissioner's opinion, were
reasonably incurred--
13
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(A) if the subsequent purchaser
obtained the transfer right
from the first purchaser--by
the first purchaser as part of
the sale contract;
5
(B) if the subsequent purchaser
obtained the transfer right
from another subsequent
purchaser--by that other
subsequent purchaser or an
10
associate of that other
subsequent purchaser in
order for that other
subsequent purchaser to
obtain a transfer right; and
15
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
in the open market on the date on which
the subsequent transaction was entered
20
into.
32E. When does the liability to duty arise?
A liability for duty charged by this Division
arises when the transfer occurs.
32F. Who is liable to pay the duty?
25
(1) Duty charged by this Division is payable--
(a) in the case of duty referred to in
section 32C(1)(a)--by the first
purchaser;
(b) in the case of duty referred to in
30
section 32C(1)(b)--by the subsequent
purchaser who obtains a transfer right
under the relevant subsequent
transaction.
14
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(2) A transferee who pays duty payable under
this Division by another person may recover
the amount of that duty as a debt due to the
transferee from the other person.
32G. Exemptions and concessions
5
(1) Duty is not chargeable under
section 32C(1)(a) if the sale contract would
be exempt from duty under this Chapter if it
were a transfer of dutiable property to the
first purchaser.
10
(2) If the first purchaser would be entitled to a
concession under this Chapter if the sale
contract were a transfer to the first purchaser,
the first purchaser is entitled to that
concession in respect of duty charged under
15
section 32C(1)(a).
(3) Duty is not chargeable under
section 32C(1)(b) if the subsequent
transaction would be exempt from duty
under this Chapter if it were a transfer of
20
dutiable property to the subsequent purchaser
who obtains the transfer right under the
subsequent transaction.
(4) If a subsequent purchaser would be entitled
to a concession under this Chapter if the
25
subsequent transaction were a transfer to the
subsequent purchaser, the subsequent
purchaser is entitled to that concession in
respect of duty charged under
section 32C(1)(b).
30
32H. No double duty
Duty is not chargeable on a transfer under
this Division if duty is chargeable on the
transfer under Division 3 or 4.
15
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
Division 3--Transfers Involving Land
Development
32I. Application of Division
(1) This Division applies to a transfer of dutiable
property referred to in section 10(1)(a) or (d)
5
if--
(a) a person ("the vendor") enters into a
contract ("the sale contract") to sell or
transfer the property to another person
("the first purchaser"); and
10
(b) a person other than the first purchaser
("a subsequent purchaser") obtains
the right to have the property or any
part of it transferred, on completion of
the sale contract, to the subsequent
15
purchaser ("transfer right"); and
(c) after the sale contract is entered into,
but before the property or any part of it
is transferred, land development occurs
in relation to the property or part; and
20
(d) the vendor transfers the property or any
part of it to a subsequent purchaser.
(2) It is immaterial whether a subsequent
purchaser obtains a transfer right--
(a) by way of an assignment, nomination,
25
novation or otherwise; and
(b) from the first purchaser or from another
subsequent purchaser.
(3) Each assignment, nomination, novation or
other arrangement by which a subsequent
30
purchaser obtains a transfer right is called a
"subsequent transaction".
16
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
32J. How duty is charged on transfer
(1) Duty on a transfer to which this Division
applies is not charged in respect of the
transfer from the vendor to the transferee,
but is charged separately and distinctly on--
5
(a) the dutiable value of the sale contract as
if it had been completed by the first
purchaser; and
(b) the dutiable value of each subsequent
transaction.
10
(2) Duty is charged at the rate set out in Part 3
on the dutiable values referred to in sub-
section (1).
(3) Despite sub-section (1), duty is not charged
under this Division on the dutiable value of a
15
sale contract if--
(a) the consideration given or agreed to be
given by the first purchaser under the
sale contract included consideration for
the land development; or
20
(b) the land development did not occur
until after a subsequent transaction
occurred.
(4) Sub-section (3)(a) does not apply if the first
purchaser or an associate of the first
25
purchaser undertook or participated in the
land development at any time before a
subsequent transaction occurred.
(5) Despite sub-section (1), duty is not charged
under this Division on the dutiable value of a
30
subsequent transaction if--
(a) the consideration given or agreed to be
given by the subsequent purchaser or an
associate of the subsequent purchaser in
order for the subsequent purchaser to
35
17
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 11
obtain a transfer right under the
transaction included consideration for
the land development; or
(b) the land development did not occur at
any time at which the subsequent
5
purchaser held a transfer right.
32K. Dutiable value of transactions
(1) For the purposes of this Division, the
dutiable value of the sale contract referred to
in section 32J(1)(a) is the greater of--
10
(a) the consideration given or agreed to be
given under the sale contract; and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
15
in the open market on the date the sale
contract was entered into.
(2) For the purposes of this Division, the
dutiable value of a subsequent transaction
referred to in section 32J(1)(b) is the greater
20
of--
(a) the consideration given or agreed to be
given by the subsequent purchaser or an
associate of the subsequent purchaser in
order for the subsequent purchaser to
25
obtain the transfer right under the
transaction, other than--
(i) legal costs or other fees or
charges, including reasonable
selling agents' fees and any
30
statutory fees or charges;
(ii) survey or valuation payments;
18
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(iii) GST other than in circumstances
where an input tax credit or
reduced input tax credit is
available;
(iv) any other costs that, in the
5
Commissioner's opinion, were
reasonably incurred--
(A) if the subsequent purchaser
obtained the transfer right
from the first purchaser--by
10
the first purchaser as part of
the sale contract;
(B) if the subsequent purchaser
obtained the transfer right
from another subsequent
15
purchaser--by that other
subsequent purchaser or an
associate of that other
subsequent purchaser in
order for that other
20
subsequent purchaser to
obtain a transfer right; and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
25
in the open market on the date the
subsequent transaction was entered
into.
32L. When does the liability to duty arise?
A liability for duty charged by this Division
30
arises when the transfer occurs.
19
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
32M. Who is liable to pay the duty?
(1) Duty charged by this Division is payable--
(a) in the case of duty referred to in
section 32J(1)(a)--by the first
purchaser;
5
(b) in the case of duty referred to in
section 32J(1)(b)--by the subsequent
purchaser who obtains a transfer right
under the relevant subsequent
transaction.
10
(2) A transferee who pays duty payable under
this Division by another person may recover
the amount of that duty as a debt due to the
transferee from the other person.
32N. Exemptions and concessions
15
(1) Duty is not chargeable under
section 32J(1)(a) if the sale contract would
be exempt from duty under this Chapter if it
were a transfer of dutiable property to the
first purchaser.
20
(2) If the first purchaser would be entitled to a
concession under this Chapter if the sale
contract were a transfer to the first purchaser,
the first purchaser is entitled to that
concession in respect of duty charged under
25
section 32J(1)(a).
(3) Duty is not chargeable under
section 32J(1)(b) if the subsequent
transaction would be exempt from duty
under this Chapter if it were a transfer of
30
dutiable property to the subsequent purchaser
who obtains the transfer right under the
subsequent transaction.
20
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(4) If a subsequent purchaser would be entitled
to a concession under this Chapter if the
subsequent transaction were a transfer to the
subsequent purchaser, the subsequent
purchaser is entitled to that concession in
5
respect of duty charged under
section 32J(1)(b).
32O. No double duty
Duty is not chargeable on a transfer under
this Division if duty is chargeable on the
10
transfer under Division 4.
Division 4--Transfers Resulting from Options
32P. Application of Division
(1) This Division applies to a transfer of dutiable
property referred to in section 10(1)(a) or (d)
15
if--
(a) the owner of the property ("the
vendor") grants an option to, or is
granted an option by, another person
("the first purchaser"); and
20
(b) a person other than the first purchaser
("a subsequent purchaser") obtains
the right or assumes the obligation to
enter into a contract of sale of the
property or any part of it with the
25
vendor or to have the property or any
part of it transferred to the subsequent
purchaser ("transfer right"); and
(c) after the option is granted, but before
the property or any part of it is
30
transferred, land development occurs in
relation to the property or part; and
(d) the vendor transfers the property or any
part of it to a subsequent purchaser.
21
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(2) It is immaterial whether a subsequent
purchaser obtains a transfer right--
(a) by way of an assignment, nomination,
novation, option, contract of sale or
otherwise; and
5
(b) from the first purchaser or from another
subsequent purchaser.
(3) Each assignment, nomination, novation,
option, contract of sale or other arrangement
by which a subsequent purchaser obtains a
10
transfer right is called a "subsequent
transaction".
32Q. How duty is charged on transfer
(1) Duty on a transfer to which this Division
applies is not charged in respect of the
15
transfer from the vendor to the transferee,
but is charged separately and distinctly on--
(a) the dutiable value of the option; and
(b) the dutiable value of each subsequent
transaction.
20
(2) Duty is charged at the rate set out in Part 3
on the dutiable values referred to in sub-
section (1).
(3) Despite sub-section (1), duty is not charged
under this Division on the dutiable value of
25
an option if--
(a) the consideration given or agreed to be
given by the first purchaser for the
option (or for the sale or transfer
contemplated by the option) included
30
consideration for the land development;
or
22
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(b) the land development did not occur
until after a subsequent transaction
occurred.
(4) Sub-section (3)(a) does not apply if the first
purchaser or an associate of the first
5
purchaser undertook or participated in the
land development at any time before a
subsequent transaction occurred.
(5) Despite sub-section (1), duty is not charged
under this Division on the dutiable value of a
10
subsequent transaction if--
(a) the consideration given or agreed to be
given by the subsequent purchaser or an
associate of the subsequent purchaser in
order for the subsequent purchaser to
15
obtain a transfer right under the
transaction included consideration for
the land development; or
(b) the land development did not occur at
any time at which the subsequent
20
purchaser held a transfer right.
32R. Dutiable value of transactions
(1) For the purposes of this Division, the
dutiable value of the option referred to in
section 32Q(1)(a) is the greater of--
25
(a) the consideration that would need to be
given to complete the sale or transfer
contemplated by the option (including
any consideration already given for the
option); and
30
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
in the open market on the date on which
the option was granted.
35
23
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(2) For the purposes of this Division, the
dutiable value of a subsequent transaction
referred to in section 32Q(1)(b) is the greater
of--
(a) the consideration given or agreed to be
5
given by the subsequent purchaser or an
associate of the subsequent purchaser in
order for the subsequent purchaser to
obtain the transfer right under the
transaction, other than--
10
(i) legal costs or other fees or
charges, including reasonable
selling agents' fees and any
statutory fees or charges;
(ii) survey or valuation payments;
15
(iii) GST other than in circumstances
where an input tax credit or
reduced input tax credit is
available;
(iv) any other costs that, in the
20
Commissioner's opinion, were
reasonably incurred--
(A) if the subsequent purchaser
obtained the transfer right
from the first purchaser--by
25
the first purchaser as part of
being granted or granting the
option;
(B) if the subsequent purchaser
obtained the transfer right
30
from another subsequent
purchaser--by that other
subsequent purchaser or an
associate of that other
subsequent purchaser in
35
order for that other
24
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
subsequent purchaser to
obtain a transfer right; and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
5
in the open market on the date on which
the subsequent transaction was entered
into.
32S. When does the liability to duty arise?
A liability for duty charged by this Division
10
arises when the transfer occurs.
32T. Who is liable to pay the duty?
(1) Duty charged by this Division is payable--
(a) in the case of duty referred to in
section 32Q(1)(a)--by the first
15
purchaser;
(b) in the case of duty referred to in
section 32Q(1)(b)--by the subsequent
purchaser who obtains a transfer right
under the relevant subsequent
20
transaction.
(2) A transferee who pays duty payable under
this Division by another person may recover
the amount of that duty as a debt due to the
transferee from the other person.
25
32U. Exemptions and concessions
(1) Duty is not chargeable under
section 32Q(1)(a) if the option would be
exempt from duty under this Chapter if it
were a transfer of dutiable property to the
30
first purchaser.
25
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(2) If the first purchaser would be entitled to a
concession under this Chapter if the option
were a transfer to the first purchaser, the first
purchaser is entitled to that concession in
respect of duty charged under section
5
32Q(1)(a).
(3) Duty is not chargeable under
section 32Q(1)(b) if the subsequent
transaction would be exempt from duty
under this Chapter if it were a transfer of
10
dutiable property to the subsequent purchaser
who obtains the transfer right under the
subsequent transaction.
(4) If a subsequent purchaser would be entitled
to a concession under this Chapter if the
15
subsequent transaction were a transfer to the
subsequent purchaser, the subsequent
purchaser is entitled to that concession in
respect of duty charged under
section 32Q(1)(b).
20
Division 5--Miscellaneous
32V. Provisions for determining consideration
(1) This section applies for the purpose of
determining--
(a) in Division 2 or 3--
25
(i) the consideration given or agreed
to be given under a sale contract;
(ii) the consideration given or agreed
to be given to obtain a transfer
right under a subsequent
30
transaction;
26
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(b) in Division 4--
(i) the consideration that would need
to be given to complete the sale or
transfer contemplated by an
option;
5
(ii) the consideration given or agreed
to be given to obtain a transfer
right under a subsequent
transaction.
(2) The consideration is taken to include the
10
amount or value of all encumbrances,
whether certain or contingent, subject to
which the property would be transferred in
accordance with, or as contemplated by, the
relevant transaction.
15
(3) The consideration does not include any
amount paid or payable in respect of the
construction of a building to be constructed
on land on or after the date of the relevant
transaction.
20
(4) The consideration in relation to land that is a
lot on a plan of subdivision within the
meaning of the Subdivision Act 1988 is
taken not to include an amount, attributable
exclusively to that lot, in respect of
25
refurbishment of that lot carried out on or
after the date of the relevant transaction and
before the date of the transfer of the land if--
(a) the transferor was a first registered
proprietor within the meaning of the
30
Transfer of Land Act 1958 of that lot;
and
(b) the sale of that lot to the transferee is
the first sale of the lot after registration
of the plan of subdivision; and
35
27
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(c) the transferee has not entered into a
contract for refurbishment of the lot,
other than in respect of the
refurbishment referred to above; and
(d) the transfer, when presented to or
5
lodged with the Commissioner, is
accompanied by--
(i) a copy of the building permit, or
building approval or permit; and
(ii) a copy of the contract with the
10
transferee for the refurbishment;
and
(iii) a statutory declaration in the
approved form by the transferor as
to the prescribed matters and as to
15
whether or not the transferor has
entered into any agreement with
the transferee in respect of works
(other than refurbishment) to be
undertaken in relation to the lot
20
before the transfer; and
(iv) if the Commissioner requires, a
statutory declaration in the
approved form by the transferee
declaring that the transferee has
25
not entered any contract, other
than the contract referred to in
sub-paragraph (ii), for the
refurbishment of the lot; and
(v) if the Commissioner requires, a
30
statutory declaration in the
approved form by the person that
issued the building permit, or
building approval or permit.
28
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(5) For the purposes of this section, the date of a
relevant transaction is--
(a) for an option--the date on which the
option was granted;
(b) for a sale contract or subsequent
5
transaction--the date on which the
contract or transaction was entered into.
(6) In this section--
"refurbishment" means building work for
which a building permit has been issued
10
under the Building Act 1993, being
work for the conversion of an existing
building for which such a permit or
approval is required;
"relevant transaction" means--
15
(a) an option;
(b) a sale contract;
(c) a subsequent transaction.
32W. No duty for transactions between relatives
Duty is not chargeable under this Part in
20
respect of a sale contract, an option or a
subsequent transaction if--
(a) in the case of a sale contract or option,
the first purchaser is--
(i) a relative of the vendor acting on
25
the relative's own behalf; or
(ii) a trustee of a fixed trust the only
beneficiaries of which are
relatives of the vendor;
29
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 10
(b) in the case of a subsequent transaction,
the subsequent purchaser is--
(i) a relative of the first purchaser
acting on the relative's own
behalf; or
5
(ii) a trustee of a fixed trust the only
beneficiaries of which are
relatives of the first purchaser.
32X. Parties required to provide information to
Commissioner
10
(1) This section applies if--
(a) a person ("the vendor") enters into a
contract to sell or transfer any dutiable
property referred to in section 10(1)(a)
or (d) to another person ("the first
15
purchaser"), or an option is granted
with respect to that property to or by
the first purchaser; and
(b) the transfer executed by the vendor
transfers the property or any part of it
20
not to the first purchaser but to another
person ("the transferee").
(2) The transferee must give the Commissioner a
statutory declaration in the approved form,
containing the details required by the
25
Commissioner for the purposes of
determining any liability of the transferee or
any other person to duty under this Chapter.
(3) If the Commissioner considers it necessary
for the purposes of determining liability to
30
duty under this Chapter, the Commissioner
may require any person he or she reasonably
believes may be liable to duty to give the
Commissioner a statutory declaration in the
approved form, containing the details
35
required by the Commissioner.'.
30
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 11
11. Repeal of certain exemptions
Sections 49, 50 and 55 of the Duties Act 2000 are
repealed.
12. Extension of temporary suspension of first home
owner exemption or concession
5
In section 63A(1) of the Duties Act 2000, for
"1 July 2005" substitute "1 July 2007".
13. Land rich provisions
(1) In section 71(1) of the Duties Act 2000, omit
"that has land holdings in Victoria".
10
(2) In section 79(8) of the Duties Act 2000--
(a) in paragraph (b), for "Victoria; or"
substitute "Victoria.";
(b) paragraph (c) is repealed.
(3) In section 89K(1) of the Duties Act 2000, in the
15
definition of "qualified investor"--
(a) after paragraph (e) insert--
"(ea) as the Crown in right of the
Commonwealth, a State or a Territory
(including any statutory body
20
representing the Crown in right of the
Commonwealth, a State or a
Territory);";
(b) in paragraph (f), after "company" insert "or
the Crown".
25
(4) In section 89L(1) of the Duties Act 2000--
(a) in paragraph (d), for "scheme." substitute
"scheme; or";
(b) after paragraph (d) insert--
"(e) a declared wholesale unit trust
30
scheme.".
31
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 14
14. New section 89PA inserted
After section 89P of the Duties Act 2000 insert--
"89PA. Registration of declared wholesale unit
trust schemes
(1) On application by the trustee of a unit trust
5
scheme, the Commissioner may register the
unit trust scheme as a declared wholesale
unit trust scheme if the Commissioner is
satisfied that the scheme meets the criteria
for registration as a declared wholesale unit
10
trust scheme.
(2) The criteria for registration as a declared
wholesale unit trust scheme are--
(a) the scheme should be registered as a
declared wholesale unit trust scheme;
15
and
(b) registration is not being sought for the
purpose of, or as part of a scheme or
arrangement with a collateral purpose
of, avoiding or reducing duty otherwise
20
chargeable under this Part.".
15. Further provisions for declared wholesale unit trust
schemes
In section 89Q(2)(a) of the Duties Act 2000, for
"or wholesale unit trust scheme" substitute
25
", wholesale unit trust scheme or declared
wholesale unit trust scheme".
32
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 16
16. New section 125A inserted
After section 125 of the Duties Act 2000 insert--
"125A. Hire of goods duty abolished from
January 2007
Despite anything to the contrary in this
5
Chapter (except section 147(2)), duty is not
chargeable on a hire of goods in respect of
any hiring charges received on or after
1 January 2007.".
17. Consequential amendments on abolition of hire of
10
goods duty
(1) After section 140(2) of the Duties Act 2000
insert--
"(3) Sub-section (1) does not apply to a
commercial hire business in respect of hiring
15
charges received in any month after
December 2006.".
(2) After section 142(1) of the Duties Act 2000
insert--
"(1A) A registered commercial hire business is not
20
required--
(a) to comply with sub-section (1)(a) if the
business ceases to hire out goods as a
business on or after 1 January 2007; or
(b) to comply with sub-section (1)(b) or (c)
25
in respect of any hiring charges
received on or after that day.".
(3) After section 145(5) of the Duties Act 2000
insert--
"(6) Nothing in this section requires a
30
commercial hire business to--
(a) lodge a return in respect of a month
occurring after December 2006; or
33
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 18
(b) pay duty in respect of any hiring
charges received on or after 1 January
2007.".
(4) After section 146(3) of the Duties Act 2000
insert--
5
"(4) A statement cannot be made under this
section on or after 1 January 2007 in respect
of any hiring charges that are paid or payable
on or after that day.".
(5) At the end of section 147 of the Duties Act 2000
10
insert--
"(2) Nothing in this Chapter entitles a
commercial hire business that has paid duty
under this section to a refund of the duty, or
any part of it, in respect of any amount of
15
hiring charges paid or payable on or after
1 January 2007.".
18. Repeal of motor vehicle exemption
Section 234 of the Duties Act 2000 is repealed.
19. Corporate reconstructions
20
In the Duties Act 2000--
(a) in section 250(2), (3) and (4), for "Part"
substitute "Division";
(b) in section 250A, for "In this Part" substitute
"In this Division";
25
(c) in sections 250B(1) and (4), 250C(1) and (2)
and 250D(1), for "Part" substitute
"Division".
34
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
20. New Division 1A inserted in Part 2 of Chapter 11
After Division 1 of Part 2 of Chapter 11 of the
Duties Act 2000 insert--
'Division 1A--Corporate Consolidation
Exemption
5
250DA. Definitions
In this Division--
"consolidatable group" has the same
meaning as in section 703-10 of the
ITAA;
10
"consolidated group" has the same
meaning as in section 703-5 of the
ITAA;
"corporate group" has the same meaning
as in section 250;
15
"corporation" has the same meaning as in
section 250;
"head company" means a corporation that
is a head company within the meaning
of section 703-15(2)(a) of the ITAA;
20
"ITAA" means the Income Tax Assessment
Act 1997 of the Commonwealth;
"parent corporation" has the same
meaning as in section 250.
250DB. What is a corporate consolidation?
25
For the purposes of this Division, a
"corporate consolidation" is the formation
of a consolidated group or consolidatable
group by the interposition of a head company
between a corporation that is a member of a
30
corporate group and the shareholders or
unitholders of that corporation.
35
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
250DC. What is an eligible transaction?
(1) For the purposes of this Division, an
"eligible transaction" is any of the
following that occurs on or after 31 March
2005 solely for the purposes of a corporate
5
consolidation--
(a) a transfer of dutiable property from a
shareholder or unitholder of a
corporation to the head company; or
(b) a vesting of dutiable property by, or as
10
a consequence of, a court order where
the property was held by a shareholder
or unitholder of a corporation and is
vested in the head company; or
(c) an application to register a motor
15
vehicle as a result of a transfer of the
vehicle from a shareholder or
unitholder of a corporation to the head
company; or
(d) a dutiable transaction to which
20
section 14 applies between a
shareholder or unitholder of a
corporation and the head company; or
(e) a relevant acquisition to which
section 80 applies--
25
(i) by the head company from a
shareholder or unitholder of a
corporation; or
(ii) by a shareholder or unitholder of a
corporation from the head
30
company; or
36
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
(f) a declaration of trust relating to dutiable
property the specification of which
forms part of the declaration of trust or
part of the transaction constituted by
the declaration of trust by the head
5
company under which the dutiable
property is held on trust for a
shareholder or unitholder of a
corporation; or
(g) any other transaction that results in the
10
beneficial ownership of dutiable
property (other than an excluded
transaction) moving from a shareholder
or unitholder of a corporation to the
head company.
15
(2) Despite sub-section (1), a transaction is not
an eligible transaction unless--
(a) the only consideration provided by the
head company for the transaction
consists of the issue of shares in the
20
head company to the shareholders or
unitholders of the corporation; and
(b) immediately after the issue of shares in
the head company, all the shareholders
in the head company are persons who
25
were shareholders or unitholders in the
corporation immediately before their
shares or units were acquired by the
head corporation.
(3) Sub-section (2)(a) does not apply to a
30
transaction referred to in sub-section
(1)(e)(ii).
37
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
250DD. Exemption for certain transactions arising
out of corporate consolidation
(1) A member of a consolidated group or
consolidatable group may apply to the
Commissioner for an exemption under this
5
Division--
(a) any time before the eligible transaction
occurs to which the application relates;
or
(b) within 3 years after the eligible
10
transaction occurs to which the
application relates.
(2) An applicant for an exemption must give the
Commissioner--
(a) a copy of the choice made to the
15
Commissioner of Taxation of the
Commonwealth in respect of the group
under section 703-50 of the ITAA
within 28 days after the later of--
(i) the day on which the choice is
20
made;
(ii) the day on which the application
for an exemption is made; and
(b) a copy of any confirmation by the
Commissioner of Taxation of the status
25
of the group within 28 days after the
later of--
(i) the day on which the
conformation is received;
(ii) the day on which the application
30
for an exemption is made.
38
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
(3) The Commissioner must grant an exemption
from duty under this Act on an instrument or
transfer of dutiable property if the
Commissioner is satisfied that--
(a) the instrument or transfer is, or arises
5
out of, an eligible transaction; and
(b) the eligible transaction does not arise
from arrangements or a scheme devised
for the principal purpose of taking
advantage of the benefit of this section;
10
and
(c) the conditions of the exemption, if any,
will be met by the applicant.
(4) If duty under this Act has been paid on an
eligible transaction, the Commissioner must
15
refund any duty paid that, by reason of the
exemption, is not payable.
(5) The Minister must, before 31 October in
each year, cause to be laid before each House
of the Parliament a report of exemptions
20
granted and refunds made under this
Division in the preceding financial year,
including--
(a) the name of each member of a
consolidated group or consolidatable
25
group that has had the benefit of an
exemption or refund; and
(b) the amount of duty that would have
been chargeable but for the exemption
and the amount of any refund.
30
39
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
250DE. Conditions of exemption
(1) An exemption granted under this Division is
subject to any conditions specified by the
Commissioner.
(2) If an exemption is granted under this
5
Division, the conditions of the exemption are
binding on the head company and the
corporation that was the parent corporation
immediately before the corporate
consolidation.
10
250DF. Revocation of exemption
(1) The Commissioner may revoke an
exemption granted under this Division if--
(a) the head company and the corporation
that was the parent corporation
15
immediately before the corporate
consolidation do not remain members
of the corporate group for a period of at
least 3 years commencing immediately
after the day on which the transaction
20
occurred in respect of which the
exemption was granted; or
(b) the instrument or transfer of dutiable
property is not, or does not arise out of,
an eligible transaction; or
25
(c) a change of circumstances results in the
transaction in respect of which the
exemption was granted no longer being
an eligible transaction; or
(d) the applicant for the exemption fails to
30
comply with section 250DD(2); or
40
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
(e) the exemption was granted based on
false or misleading information in a
material particular provided by the
consolidated group or consolidatable
group to the Commissioner; or
5
(f) the eligible transaction arises from
arrangements or a scheme devised for
the principal purpose of taking
advantage of the benefit of
section 250DD.
10
(2) Sub-section (1)(a) does not apply if the
Commissioner is satisfied that the head
company or the corporation that was the
parent corporation immediately before the
corporate consolidation ceases to be a
15
member of the corporate group by virtue
of--
(a) a public float that occurred within
12 months after the day on which the
transaction in respect of which the
20
exemption was granted occurred; or
(b) the shares or units of the head company
or parent corporation being unstapled to
enable its liquidation, deregistration,
dissolution or, in the case of a unit trust
25
scheme, winding up; or
(c) its liquidation, deregistration or, in the
case of a unit trust scheme, winding up.
(3) In this section--
"public float" has the same meaning as in
30
section 250D.
41
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 20
250DG. Special provision in relation to land-rich
duty for private unit trust scheme
consolidations
(1) This section applies to a corporate
consolidation that consists of the
5
interposition of a head company between a
private unit trust scheme and the unitholders
of the private unit trust scheme.
(2) In determining, for the purposes of Part 2 of
Chapter 3, whether a person makes a
10
relevant acquisition in a landholder that is a
head company--
(a) the head company must be taken to be a
private unit trust scheme, being the
same scheme as that existing
15
immediately before the corporate
consolidation;
(b) a shareholding in the head company
must be taken to be a unitholding in
that private unit trust scheme;
20
(c) if an interest in the private unit trust
scheme held at any time before the
corporate consolidation was or would
be counted for the purposes of
section 79, that interest is to continue to
25
be counted for the purposes of that
section after the corporate
consolidation;
(d) if an interest in the private unit trust
scheme held at any time before the
30
corporate consolidation was not or
would not be counted for the purposes
of section 79, that interest is to continue
not to be counted for the purposes of
that section after the corporate
35
consolidation;
42
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 21
(e) without limiting paragraph (a), any
acquisition of an interest in land by the
private unit trust scheme before the
corporate consolidation is taken to have
been an interest acquired by the head
5
company at the time it was acquired by
the private unit trust scheme.
(3) This section applies for the period of 3 years
commencing at the time of the corporate
consolidation.'.
10
21. Further corporate reconstruction amendments
In sections 250F, 250I(1) and 250J(1) of the
Duties Act 2000, after "corporate group"
(wherever occurring) insert ", consolidated group
or consolidatable group".
15
22. Transitional provisions
In Schedule 2 to the Duties Act 2000, after
clause 20 insert--
'21. State Taxation Acts (General Amendment) Act
20 2005
(1) Subject to sub-clause (2)--
(a) Part 4A of Chapter 2 applies to a transfer
resulting from a sale contract that was entered
into, or an option that was granted, on or after
25 the commencement day;
(b) section 31, as in force immediately before the
commencement day, continues to apply on and
after that day to a transfer resulting from an
agreement (within the meaning of that section)
30 that was entered into before that day.
(2) If each person who would be liable for duty under
section 31 because of sub-clause (1)(b) in respect of a
transfer of dutiable property notifies the
Commissioner in writing, those persons may elect to
35 have their liability for duty under this Act in respect
of the transfer determined in accordance with Part 4A
of Chapter 2 instead of section 31.
43
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 22
(3) The Commissioner and each person who notifies the
Commissioner under sub-clause (2) is bound by an
election under that sub-clause.
(4) Despite its repeal, section 49, as in force immediately
5 before the commencement day, continues to apply on
and after that day to a distribution of the assets of a
company because of the reduction of the capital of the
company if the resolution for the transactions
affecting the capital (or a copy of it) was lodged with
10 the Australian Securities and Investments
Commission in compliance with Chapter 2J of the
Corporations Act before the commencement day.
(5) Despite its repeal, section 50, as in force immediately
before the commencement day, continues to apply on
15 and after that day to a distribution of the assets of a
company because of the winding up of the company
if--
(a) in the case of a voluntary winding up--the
resolution for the winding up was passed in
20 compliance with Chapter 5 of the Corporations
Act before the commencement day;
(b) in the case of a winding up by the court--the
order for the winding up was made before the
commencement day.
25 (6) Despite its repeal, section 234, as in force
immediately before the commencement day,
continues to apply on and after that day to a
distribution of the assets of a company because of the
winding up or the reduction of the capital of the
30 company if--
(a) in the case of a voluntary winding up--the
resolution for the winding up was passed in
compliance with Chapter 5 of the Corporations
Act before the commencement day;
35 (b) in the case of a winding up by the court--the
order for the winding up was made before the
commencement day;
44
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 4--Duties Act 2000
s. 22
(c) in the case of a reduction of capital--the
resolution for the transactions affecting the
capital (or a copy of it) was lodged with the
Australian Securities and Investments
5 Commission in compliance with Chapter 2J of
the Corporations Act before the commencement
day.
(7) In this clause--
"commencement day" means the day after the day
10 on which the State Taxation Acts (General
Amendment) Act 2005 receives the Royal
Assent.'.
__________________
45
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 5--First Home Owner Grant Act 2000
s. 23
See: PART 5--FIRST HOME OWNER GRANT ACT 2000
Act No.
5/2000.
23. Extension of additional amount of grant
Reprint No. 1
as at
For section 18(2) of the First Home Owner
1 January
2004
Grant Act 2000 substitute--
and
amending
"(2) Subject to sub-sections (3) and (4), if the
5 Act Nos
46/2004 and consideration for the eligible transaction
71/2004.
does not exceed $500 000 an additional
LawToday:
www.dms. amount is payable as follows--
dpc.vic.
gov.au
(a) $5000 if the commencement date of the
eligible transaction is on or after 1 May
10
2004 and before 1 January 2006; or
(b) $3000 if the commencement date of the
eligible transaction is on or after
1 January 2006 and before 1 July
2007.".
15
__________________
46
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 24
See:
PART 6--LAND TAX ACT 1958
Act No.
6289.
24. Definitions Reprint No. 12
as at
(1) In section 3(1) of the Land Tax Act 1958, after 13 June 2002
and
the definition of "applicable general valuation" amending
insert--
5 Act Nos
59/2003,
' "authorised officer" means an authorised 113/2003,
3/2004,
officer under section 70 of the Taxation 46/2004,
Administration Act 1997;'. 71/2004 and
10/2005.
LawToday:
(2) In section 3(1) of the Land Tax Act 1958, after www.dms.
the definition of "public statutory authority"
10 dpc.vic.
gov.au
insert--
' "registered caravan park" means a caravan
park within the meaning of the Residential
Tenancies Act 1997 that is registered in
accordance with regulations made under
15
section 515 of that Act;'.
(3) In section 3(1) of the Land Tax Act 1958--
(a) insert the following definitions--
' "residential care facility" means any
premises--
20
(a) in which--
(i) a residential care service; or
(ii) a multi purpose service--
within the meaning of the Aged
Care Act 1997 of the
25
Commonwealth, is operated by an
approved provider within the
meaning of that Act; and
(b) in respect of which an allocation
of residential care places is in
30
effect under Division 15 of that
Act;
47
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 25
"supported residential service" has the
same meaning as in the Health
Services Act 1988;';
(b) for the definition of "retirement village"
substitute--
5
' "retirement village" means a complex
containing residential premises
(whether or not including hostel units)
predominantly or exclusively occupied,
or available for occupation, by retired
10
persons under--
(a) a residential tenancy agreement or
any other lease or licence; or
(b) a right conferred by shares; or
(c) the ownership of residential
15
premises subject to a right or
option of repurchase on conditions
restricting the subsequent disposal
of the premises--
other than a complex or premises that is
20
or are a residential care facility or
supported residential service;'.
25. Minimum assessment
In section 7A(1) of the Land Tax Act 1958--
(a) for "2004" substitute "2005";
25
(b) for "$175" substitute "$200".
48
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 26
26. Exemption for residential care facilities and
supported residential services (from January 2004)
In the Land Tax Act 1958--
(a) in section 9(1)(j), for "village--" substitute
"village;";
5
(b) after section 9(1)(j) insert--
"(k) land which is occupied, or currently
available for occupation, as--
(i) a residential care facility; or
(ii) a supported residential service--";
10
(c) in section 9(2AA)--
(i) after "sub-section (1)(j)" (where first
occurring) insert "or (k)";
(ii) in paragraph (a), after "sub-section
(1)(j)" insert "or (k) (as the case
15
requires)".
27. Exemption for caravan parks (from January 2005)
In the Land Tax Act 1958--
(a) in section 9(1)(k)(ii), for "service--"
substitute "service;";
20
(b) after section 9(1)(k) insert--
"(l) land which is used as a registered
caravan park--";
(c) in section 9(2AA), for "or (k)" (where twice
occurring) insert ", (k) or (l)".
25
49
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 28
28. New section 9A inserted (from January 2004)
After section 9 of the Land Tax Act 1958
insert--
"9A. Rooming house exemption
(1) Land is exempt from land tax if--
5
(a) the land is used and occupied as a
rooming house (within the meaning of
the Residential Tenancies Act 1997)
that is registered under Part XII of the
Health Act 1958; and
10
(b) application for the exemption is made
in accordance with this section; and
(c) the Commissioner is satisfied that the
land is used and occupied primarily for
low cost accommodation by people
15
with low incomes, in accordance with
guidelines issued by the Commissioner
for the purposes of this section.
(2) The guidelines may include provisions with
respect to the following--
20
(a) the circumstances in which
accommodation is taken to be low cost
accommodation;
(b) the types and location of premises in
which low cost accommodation may be
25
provided;
(c) the number and types of persons for
whom the accommodation must be
provided;
(d) the circumstances in which, and the
30
arrangements under which, the
accommodation is provided;
(e) maximum tariffs for the
accommodation;
50
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 28
(f) periods within which tariffs may not be
increased;
(g) the circumstances in which the
applicant is required to give an
undertaking to pass on the benefit of
5
the exemption from taxation to the
persons for whom the accommodation
is provided in the form of lower tariffs.
(3) A guideline--
(a) may be of general or limited
10
application;
(b) may differ according to differences in
time, place or circumstances.
(4) If the Commissioner is satisfied that part
only of land is used and occupied as referred
15
to in sub-section (1)(a) and (c)--
(a) land tax is assessable on the remaining
part of the land, unless an exemption
(other than the exemption in this
section) applies to the remaining part;
20
and
(b) section 3A applies, if necessary, for that
purpose.
(5) This section does not apply to land unless--
(a) the owner applies to the Commissioner
25
for an exemption under this section in
the form approved by the
Commissioner; and
(b) the owner gives the Commissioner any
information the Commissioner requests
30
for the purpose of enabling the
Commissioner to determine whether the
land is exempt under this section.
51
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 29
(6) Without limiting the other ways in which
land ceases to be exempt under this section,
land ceases to be exempt if a person breaches
an undertaking given as referred to in sub-
section (2)(g).".
5
29. Special land tax
(1) In section 10(1) of the Land Tax Act 1958--
(a) for "paragraphs (b), (g), (h), (ha) or (i) of
sub-section (1) of section 9" substitute
"section 9(1)(b), (g), (h), (ha), (i) or (k) or
10
section 9A";
(b) after "section 9" (where secondly occurring)
insert "or 9A (as the case requires)".
(2) In section 10(1) of the Land Tax Act 1958, for
"(i) or (k)" substitute "(i), (k) or (l)".
15
(3) In section 10(4) of the Land Tax Act 1958, after
"sections 3, 3A, 9," insert "9A,".
30. Principal place of residence exemption
After section 13H(4) of the Land Tax Act 1958
insert--
20
"(5) For the purposes of calculating the amount of
a refund under this section, the land referred
to in sub-section (1), (2), (3) or (3A) is to be
taken to have been exempt from tax in
respect of the tax year in respect of which the
25
refund is payable.
Example
At midnight on 31 December 2004, A owned a block
of unoccupied land valued at $100 000 and an
30 investment property valued at $250 000. A's land tax
for 2005 will be calculated on the aggregated value of
both landholdings, that is $350 000. If A occupies the
block as A's principal place of residence for at least
6 months commencing at some time in 2005, A's
35 refund under sub-section (1) will be calculated as if
the block had been exempt from land tax for 2005.
52
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 31
Therefore, A's refund will be the difference between
the land tax A paid on a land value of $350 000 and
the land tax A would have paid on a land value of
$250 000.
(6) Sub-section (5) applies to a refund if the
5
application for the refund is made on or after
1 January 2005.".
31. New sections 72 and 73 substituted, 73A and 73B
inserted
For sections 72 and 73 of the Land Tax Act 1958
10
substitute--
'72. Power to require information, documents
and things, and attendance
(1) The Commissioner, by written notice, may
require a person to do any one or more of the
15
following--
(a) to provide to the Commissioner (either
orally or in writing) information that is
described in the notice;
(b) to attend and give evidence before the
20
Commissioner or another authorised
officer;
(c) to produce to the Commissioner a
document or thing in the person's
custody or control that is described in
25
the notice.
(2) If the requirement is made of a person to
determine that person's liability for tax, the
Commissioner must indicate in the notice
that the requirement is made for that
30
purpose, but the Commissioner is not
otherwise required to identify a person in
relation to whom any information, evidence,
document or thing is required under this
section.
35
53
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 31
(3) The Commissioner may require information
or evidence that is not given orally to be
provided in the form of or verified by a
statutory declaration.
(4) The Commissioner may require evidence
5
that is given orally to be given on oath and
for that purpose the Commissioner or an
authorised officer may administer an oath.
(5) Subject to sub-section (6), a person who is
required to attend and give evidence orally is
10
to be paid expenses in accordance with the
scale of expenses prescribed under
section 73 of the Taxation Administration
Act 1997.
(6) Sub-section (5) does not apply to a person, or
15
a representative of a person, whose liability
for tax is being investigated by the
Commissioner.
(7) The Commissioner may make a recording,
by such means as the Commissioner
20
determines, of the evidence given orally by a
person.
(8) The person to whom the notice is given must
comply with the notice within the period
specified in the notice or any extended
25
period allowed by the Commissioner.
Penalty: 500 penalty units in the case of a
body corporate;
100 penalty units in any other
case.
30
(9) If a person is convicted of an offence against
sub-section (8) the court, in addition to
imposing a penalty under that sub-section
and whether or not the period for complying
with the notice has expired, may order the
35
person to comply with--
54
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 31
(a) the requirement contained in the notice;
and
(b) any other requirement that could be
made in relation to the person under
this Act that the court considers
5
necessary to ensure the effectiveness of
the requirement referred to in
paragraph (a)--
within the period specified by the court.
(10) A person cannot be charged with an offence
10
against sub-section (8) in respect of a failure
to comply with a requirement of a notice if
the Commissioner has certified the failure to
the Supreme Court under section 73, unless
the Supreme Court declines to inquire into
15
the matter.
73. Powers of Supreme Court if non-
compliance with section 72
(1) If the Commissioner is satisfied that a person
has, without reasonable excuse, failed to
20
comply with a requirement of a notice under
section 72, the Commissioner may certify the
failure to the Supreme Court.
(2) If the Commissioner so certifies, the
Supreme Court may inquire into the case and
25
may order the person to comply with the
requirement within the period specified by
the Court.
(3) The Commissioner cannot certify a failure to
the Supreme Court under this section if the
30
person to whom the failure relates has been
charged with an offence against
section 72(8) in respect of the failure.
55
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 31
(4) A person who, without reasonable excuse,
fails to comply with an order under sub-
section (2) is guilty of an offence and liable
to a term of imprisonment not exceeding
3 months.
5
(5) Nothing in sub-section (4) affects the power
of the Supreme Court to deal with a person
for contempt of that court, but a person is not
liable to be punished more than once for
failing to comply with an order under sub-
10
section (2).
73A. Power of entry
(1) An authorised officer may exercise powers
under this section only if he or she believes
on reasonable grounds that there are
15
documents or things on any premises that are
relevant to the administration or execution of
this Act.
(2) Subject to this section, an authorised officer
with any assistants and equipment the
20
authorised officer considers necessary may
enter, at any reasonable time, any premises
and may do any one or more of the
following--
(a) search the premises and any thing
25
found at the premises;
(b) inspect and take photographs (including
video recordings), or make sketches, of
the premises or any thing at the
premises;
30
(c) inspect, and make copies of, or take
extracts from, any document kept at the
premises;
56
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 31
(d) seize any document or thing at the
premises if the authorised officer has
reason to believe or suspect that it is
necessary to do so in order to prevent
its concealment, loss, destruction or
5
alteration.
(3) An authorised officer may not seize a
document or thing apparently in the
possession or custody of a person unless the
authorised officer makes out and tenders to
10
the person a receipt in the prescribed form
for the document or thing seized.
(4) If an authorised officer is unable to ascertain
the identity of the owner or custodian of
anything seized, the authorised officer must
15
leave the receipt in a prominent place at the
premises.
(5) An authorised officer may not exercise any
powers under this section if the authorised
officer fails to produce, on request, his or her
20
identity card for inspection by the occupier
of the premises.
(6) The power of entry and search under this
section is not exercisable in relation to
premises or a part of premises used for
25
residential purposes except with the written
consent of the occupier.
(7) An occupier who consents in writing to entry
and search of his or her premises under this
section must be given a copy of the signed
30
consent immediately.
57
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
(8) In this section--
"premises" includes, land, a vehicle, a
vessel and an aircraft;
"prescribed form" means the form
prescribed for the purposes of
5
section 76(3) of the Taxation
Administration Act 1997.
73B. Self-incrimination
(1) A person is not excused from answering a
question, providing information or producing
10
a document or thing, when required to do so
under section 72, on the ground that to do so
might tend to incriminate the person or make
the person liable to a penalty.
(2) However, if the person objects to answering
15
the question, providing the information or
producing the document or thing on that
ground, the answer, information, document
or thing is not admissible against the person
in any criminal proceedings other than--
20
(a) proceedings for an offence against
section 72(8); or
(b) proceedings for an offence in the nature
of perjury.'.
32. New tax rates and rebates
25
(1) After clause 6 of the Second Schedule to the Land
Tax Act 1958 insert--
"6A. Rebate of 2005 land tax
An owner who has paid or is liable to pay land tax for
30 2005 is entitled to a rebate of land tax equal to half the
difference between--
(a) the amount of land tax paid or payable by the
owner for 2005 as determined in accordance
with clause 6; and
58
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
(b) the notional amount determined by applying the
tax rates in Table FA to the total unimproved
value of land of the owner as assessed under
this Act for 2005.
TABLE FA
Item Column 1 Column 2 Column 3
$ $
1. 0 175 000 Nil
2. 175 000 200 000 $175 and 01 cents for
each $1 of the value
that exceeds $175 000
3. 200 000 540 000 $200 and 02 cents for
each $1 of the value
that exceeds $200 000
4. 540 000 900 000 $880 and 05 cents for
each $1 of the value
that exceeds $540 000
5. 900 000 1 190 000 $2680 and 1 cent for
each $1 of the value
that exceeds $900 000
6. 1 190 000 1 620 000 $5580 and 15 cents
for each $1 of the
value that exceeds
$1 190 000
7. 1 620 000 2 700 000 $12 030 and
225 cents for each $1
of the value that
exceeds $1 620 000
8. 2 700 000 $36 330 and 4 cents
for each $1 of the
value that exceeds
$2 700 000
5 Example
An owner has land with a total unimproved value of
$1 500 000 as assessed for the purposes of the owner's
land tax for 2005. The owner's rebate will be worked
out as follows--
10 (a) the land tax paid or payable for 2005 (applying
the rates in Table F in clause 6) is $18 205;
59
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
(b) the notional amount calculated by applying the
rates in Table FA to the total unimproved value
is $10 230;
(c) the difference between (a) and (b) is $7975;
5 (d) the rebate is half the difference between (a)
and (b), that is $3987.50.".
(2) For clauses 7, 8, 9 and 10 of the Second Schedule
to the Land Tax Act 1958 substitute--
'7. Land tax for 2006
10 7.1 Subject to clause 7.2, if the total unimproved value of
land of an owner as assessed under this Act for 2006
is not less than the amount shown in column 1 of an
item in Table G and, if an amount is shown in
column 2 of that item, less than the amount shown in
15 column 2 of that item, the duty of land tax payable on
the land is the amount determined in accordance with
column 3 of that item.
TABLE G
Item Column 1 Column 2 Column 3
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02 cents
for each $1 of the
value that exceeds
$200 000
3. 540 000 900 000 $880 and 05 cents
for each $1 of the
value that exceeds
$540 000
4. 900 000 1 190 000 $2680 and 1 cent for
each $1 of the value
that exceeds
$900 000
5. 1 190 000 1 620 000 $5580 and 15 cents
for each $1 of the
value that exceeds
$1 190 000
60
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
Item Column 1 Column 2 Column 3
$ $
6. 1 620 000 2 700 000 $12 030 and
225 cents for each $1
of the value that
exceeds $1 620 000
7. 2 700 000 $36 330 and 35 cents
for each $1 of the
value that exceeds
$2 700 000
7.2 The duty of land tax payable for 2006 on the land of
an owner is--
(a) the amount determined in accordance with
clause 7.1; or
5 (b) if that amount is more than 150% of the 2005
tax amount, 150% of the 2005 tax amount.
7.3 For the purposes of this clause--
(a) "2005 tax amount", in relation to land of an
owner, means the amount determined by
10 applying the rates of tax set out in Table F in
clause 6 to the sum of--
(i) in respect of any land that was valued
separately as at the relevant date (within
the meaning of section 3) for the purpose
15 of assessing land tax for 2005, the
unimproved value of that land
determined for the purpose of assessing
land tax for 2005; and
(ii) in respect of any land that was not valued
20 separately as at the relevant date for the
purpose of assessing land tax for 2005
but was rated separately as at the relevant
date for the purpose of assessing land tax
for 2006, the unimproved value of that
25 land determined for the purpose of
assessing land tax for 2006; and
61
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
(iii) in respect of all other land, the
unimproved value of the land as assessed
under this Act for 2005--
less the amount that would be determined as a
5 rebate under clause 6A in respect of the amount
determined above;
(b) if the 2005 tax amount is zero, the duty of land
tax payable for 2006 is the amount determined
in accordance with clause 7.1;
10 (c) if the amount determined in accordance with
clause 7.1 is zero, no duty of land tax is payable
for 2006.
8. Land tax for 2007
If the total unimproved value of land of an owner as
15 assessed under this Act for 2007 is not less than the
amount shown in column 1 of an item in Table H and,
if an amount is shown in column 2 of that item, less
than the amount shown in column 2 of that item, the
duty of land tax payable on the land is the amount
20 determined in accordance with column 3 of that item.
TABLE H
Item Column 1 Column 2 Column 3
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02 cents
for each $1 of the
value that exceeds
$200 000
3. 540 000 900 000 $880 and 05 cents
for each $1 of the
value that exceeds
$540 000
4. 900 000 1 190 000 $2680 and 1 cent for
each $1 of the value
that exceeds
$900 000
5. 1 190 000 1 620 000 $5580 and 15 cents
for each $1 of the
value that exceeds
$1 190 000
62
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
Item Column 1 Column 2 Column 3
$ $
6. 1 620 000 2 700 000 $12 030 and
225 cents for each $1
of the value that
exceeds $1 620 000
7. 2 700 000 $36 330 and
325 cents for each $1
of the value that
exceeds $2 700 000
9. Land tax for 2008 and subsequent years
If the total unimproved value of land of an owner as
assessed under this Act for 2008 or a subsequent year
is not less than the amount shown in column 1 of an
5 item in Table I and, if an amount is shown in
column 2 of that item, less than the amount shown in
column 2 of that item, the duty of land tax payable on
the land is the amount determined in accordance with
column 3 of that item.
TABLE I
Item Column 1 Column 2 Column 3
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02 cents for
each $1 of the value
that exceeds $200 000
3. 540 000 900 000 $880 and 05 cents for
each $1 of the value
that exceeds $540 000
4. 900 000 1 190 000 $2680 and 1 cent for
each $1 of the value
that exceeds $900 000
5. 1 190 000 1 620 000 $5580 and 15 cents
for each $1 of the
value that exceeds
$1 190 000
63
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 6--Land Tax Act 1958
s. 32
Item Column 1 Column 2 Column 3
$ $
6. 1 620 000 2 700 000 $12 030 and
225 cents for each $1
of the value that
exceeds $1 620 000
7. 2 700 000 $36 330 and 3 cents
for each $1 of the
value that exceeds
$2 700 000
'.
__________________
64
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 7--Pay-roll Tax Act 1971
s. 33
See:
PART 7--PAY-ROLL TAX ACT 1971
Act No.
8154.
33. Employment agents Reprint No. 10
as at
After section 5(3) of the Pay-roll Tax Act 1971 1 January
2004
insert-- and
amending
"(3A) Sub-section (3) does not apply in relation to
5 Act Nos
any amount, benefit or payment that would 46/2004 and
71/2004.
be exempt from pay-roll tax under LawToday:
section 10(1)(ca) had the service provider www.dms.
dpc.vic.
been paid by the client as an employee at any gov.au
time before 1 July 2005.".
10
34. Exemption for wages paid by school councils (from
July 2004)
After section 10(1)(c) of the Pay-roll Tax Act
1971 insert--
"(ca) by a school council within the meaning of
15
the Education Act 1958;".
__________________
65
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 8--Taxation Administration Act 1997
s. 35
See: PART 8--TAXATION ADMINISTRATION ACT 1997
Act No.
40/1997.
35. Interest rate
Reprint No. 2
as at
(1) In section 25(1)(a)(i) of the Taxation
13 September
2001
Administration Act 1997, for "Treasury Note
and
yield rate" substitute "Bank Accepted Bills rate".
5 amending
Act Nos
79/2001, (2) For section 25(2) of the Taxation
113/2003,
Administration Act 1997 substitute--
46/2004 and
108/2004.
'(2) The "Bank Accepted Bills rate" in respect
LawToday:
www.dms.
of any day is the average of the daily yields
dpc.vic.
for 90 day Bank Accepted Bills published by
10 gov.au
the Reserve Bank of Australia for the month
of May in the financial year preceding the
financial year in which the day occurs.'.
(3) In section 25(3) of the Taxation Administration
Act 1997, for "Treasury Note yield rate"
15
substitute "Bank Accepted Bills rate".
36. Penalty tax
(1) In section 31(1) and (2) of the Taxation
Administration Act 1997, for "informs the
taxpayer that an investigation relating to the
20
taxpayer is to be carried out" substitute
"commences an investigation into a known or
suspected tax default by the taxpayer".
(2) After section 31(2) of the Taxation
Administration Act 1997 insert--
25
"(3) Sub-section (1) or (2) (as the case requires)
does not apply in respect of information
disclosed by a taxpayer if--
(a) the information is disclosed after the
Commissioner has issued an assessment
30
in respect of the known or suspected
tax default; and
66
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 8--Taxation Administration Act 1997
s. 37
(b) the tax default involved the failure to
lodge a return; and
(c) the taxpayer was required to include the
information in the return.".
(3) In section 32(1) of the Taxation Administration
5
Act 1997, for "has informed the taxpayer that an
investigation is to be carried out" substitute
"commences an investigation into a known or
suspected tax default by the taxpayer".
37. Secrecy provisions
10
After section 92(e)(vb) of the Taxation
Administration Act 1997 insert--
"(vc) the Country Fire Authority; or
(vd) the Metropolitan Fire and Emergency
Services Board; or".
15
38. Valuation of foreign currency
For section 119(1) of the Taxation
Administration Act 1997 substitute--
"(1) If an amount involved in the calculation of
tax is not in Australian currency, the amount
20
is to be converted to Australian currency at
the exchange rate published by the Reserve
Bank of Australia on the day on which the
liability to pay the tax arose.".
__________________
67
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Part 9--Taxation (Interest on Overpayments) Act 1986
s. 39
See: PART 9--TAXATION (INTEREST ON OVERPAYMENTS)
Act No.
ACT 1986
35/1986.
Reprint No. 1
as at
39. Interest rate
19 March
1998
(1) In section 7(2)(a) of the Taxation (Interest on
and
Overpayments) Act 1986, for "Treasury Note
5 amending
Act Nos
yield rate" substitute "Bank Accepted Bills rate".
47/1999 and
79/2000.
(2) For section 7(3) of the Taxation (Interest on
LawToday:
Overpayments) Act 1986 substitute--
www.dms.
dpc.vic.
gov.au '(3) The "Bank Accepted Bills rate" in respect
of any day is the average of the daily yields
10
for 90 day Bank Accepted Bills published by
the Reserve Bank of Australia for the month
of May in the financial year preceding the
financial year in which the day occurs.'.
(3) In section 7(3A) of the Taxation (Interest on
15
Overpayments) Act 1986, for "Treasury Note
yield rate" substitute "Bank Accepted Bills rate".
68
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
State Taxation Acts (General Amendment) Act 2005
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
69
551315B.I1-24/5/2005 BILL LA INTRODUCTION 24/5/2005
[Index] [Search] [Download] [Related Items] [Help]