STATE TAXATION ACTS AMENDMENT BILL 2008
PARLIAMENT OF VICTORIA State Taxation Acts Amendment Bill 2008 TABLE OF PROVISIONS Clause Page PART 1--PRELIMINARY 1 1 Purpose 1 2 Commencement 2 PART 2--DUTIES ACT 2000 4 3 What is the consideration for the transfer of dutiable property? 4 4 New sections 21A to 21E inserted 5 21A Commissioner may publish percentage 5 21B Records to be kept 6 21C Period of retention 6 21D Power to require documents 6 21E Joint and several liability for additional duty 7 5 Increase in thresholds for general rate of duty 7 6 Provisions for determining consideration 8 7 Property passing to unitholders in unit trust schemes 9 36B Property passing to unitholders in unit trust schemes 9 8 New section 38A inserted 14 38A Special disability trusts 14 9 Increase in principal place of residence concession 16 10 Increase in eligible pensioner concession 16 11 Consequential amendments to first home owner concession 17 12 New Division 1B inserted in Part 2 of Chapter 11 18 Division 1B--Exchange of stapled ownership interests for ownership interests in a unit trust scheme 18 250DH Definitions 18 250DI Exemption for relevant acquisitions 20 250DJ Conditions of exemption 21 250DK Revocation of exemption 21 13 Tax assessment, penalty and interest regarding roll-overs 22 14 New clause 27 of Schedule 2 inserted 24 27 State Taxation Acts Amendment Act 2008 24 561172B.I-6/5/2008 i BILL LA INTRODUCTION 6/5/2008
Clause Page PART 3--FIRST HOME OWNER GRANT ACT 2000 27 15 Additional grant for newly constructed homes in regional Victoria 27 16 New Schedule 1 inserted 28 SCHEDULE 1--Municipal Councils in Regional Victoria 28 PART 4--LAND TAX ACT 2005 30 17 Special land tax 30 18 New section 76A inserted 30 76A Residential services for people with disabilities 30 19 Increase in thresholds and reduction in top tax rate 31 PART 5--PAYROLL TAX ACT 2007 36 20 Exemption for non-profit organisations 36 21 Groups of corporations 36 22 New section 74 substituted 36 74 Smaller groups subsumed by larger groups 36 23 Registration 37 24 Leap years 37 25 Reduction in payroll tax rate 37 26 New clause 15 inserted in Schedule 3 37 15 State Taxation Acts Amendment Act 2008 37 27 Statute law revision 38 PART 6--REPEAL OF AMENDING ACT 39 28 Repeal of Act 39 ENDNOTES 40 561172B.I-6/5/2008 ii BILL LA INTRODUCTION 6/5/2008
PARLIAMENT OF VICTORIA Introduced in the Assembly State Taxation Acts Amendment Bill 2008 A Bill for an Act to amend the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005 and the Payroll Tax Act 2007 and for other purposes. The Parliament of Victoria enacts: PART 1--PRELIMINARY 1 Purpose The purpose of this Act is-- (a) to amend the Duties Act 2000-- 5 (i) to increase thresholds for general duty and for principal place of residence and pensioner concessions; (ii) to remove the election between the principal place of residence concession 10 and the first home owner bonus; 561172B.I-6/5/2008 1 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 1--Preliminary s. 2 (iii) to introduce further duty exemptions; (iv) to provide greater certainty in relation to the calculation of duty for properties that are sold off the plan; 5 (v) to clarify that certain transactions concerning dutiable property subject to unit trust schemes are exempt from duty where there is no change in beneficial ownership of property; 10 (b) to amend the First Home Owner Grant Act 2000 to give an additional grant to first homebuyers purchasing a newly constructed home in regional Victoria; (c) to amend the Land Tax Act 2005-- 15 (i) to increase thresholds and reduce the top land tax rate; (ii) to introduce a further land tax exemption; (d) to amend the Payroll Tax Act 2007 to 20 reduce the rate of payroll tax, clarify certain provisions and ensure continued consistency with New South Wales. 2 Commencement (1) This Act, other than Part 3 and sections 5, 8, 9, 10, 25 11, 12, 13, 17(2), 20, 21, 22 and 23, comes into operation on the day after the day on which it receives the Royal Assent. (2) Part 3 and sections 5, 8, 9, 10 and 11 are deemed to have come into operation on 6 May 2008. 30 (3) Sections 12, 13, 20, 21, 22 and 23 come into operation on 1 July 2008. 561172B.I-6/5/2008 2 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 1--Preliminary s. 2 (4) Section 17(2) comes into operation on 1 January 2009. __________________ 561172B.I-6/5/2008 3 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 3 PART 2--DUTIES ACT 2000 3 What is the consideration for the transfer of dutiable property? See: (1) In section 21(4) of the Duties Act 2000-- Act No. 79/2000. 5 Reprint No. 6 (a) omit "exclusively"; as at 25 July 2007 (b) in paragraph (c), for "above; and" substitute and "above."; amending Act No. (c) paragraph (d) is repealed. 12/2008. LawToday: www. (2) After section 21(4) of the Duties Act 2000 10 legislation. insert-- vic.gov.au "(4A) Subsection (3) or (4) does not apply unless the transfer, when presented to or lodged with the Commissioner, is accompanied by-- 15 (a) a copy of the building permit, or building approval or permit; and (b) a copy of the contract with the transferee for the construction or refurbishment; and 20 (c) a statutory declaration in the approved form by the transferor as to any prescribed matters and as to whether or not the transferor has entered into any agreement with the transferee in respect 25 of works (other than construction or refurbishment) to be undertaken in relation to the land or the lot before the transfer; and (d) if the Commissioner requires, a 30 statutory declaration in the approved form by the transferee declaring that the transferee has not entered any contract, other than the contract referred to in 561172B.I-6/5/2008 4 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 4 paragraph (b), for the construction of the building or refurbishment of the lot; and (e) if the Commissioner requires, a 5 statutory declaration in the approved form by the person that issued the building permit or building approval or permit.". 4 New sections 21A to 21E inserted 10 After section 21 of the Duties Act 2000 insert-- "21A Commissioner may publish percentage (1) For the purposes of sections 21(3) and 21(4), the Commissioner may from time to time publish percentage amounts being a 15 percentage of the consideration for a transfer of dutiable property that represents any amount paid or payable in respect of construction of a building or refurbishment of a lot on or after the date on which the 20 contract of sale was entered into. (2) The Commissioner may publish different percentage amounts for different classes of buildings or refurbishments. (3) If the Commissioner publishes a percentage 25 under subsection (1)-- (a) the transferor may use that percentage for the purposes of determining the amount paid or payable in respect of construction of the building or 30 refurbishment of the lot; and (b) if the transferor does so, duty payable on the transfer is to be assessed on that basis. 561172B.I-6/5/2008 5 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 4 21B Records to be kept If a transferor of dutiable property makes a statutory declaration under section 21(4A), the transferor must keep, or cause to be kept, 5 all records that are necessary to enable the duty payable on that transfer to be assessed. Penalty: 500 penalty units in the case of a body corporate; 100 penalty units in any other 10 case. 21C Period of retention (1) A transferor who is required to keep a record under section 21B must retain the record for not less than 5 years after-- 15 (a) the date it was made or obtained; or (b) the date on which the dutiable transaction occurred-- whichever is the later. Penalty: 500 penalty units in the case of a 20 body corporate; 100 penalty units in any other case. (2) Subsection (1) does not apply to a transferor if the Commissioner authorises them in 25 writing to destroy the record before the end of the 5-year period. 21D Power to require documents (1) The Commissioner, by written notice, may require a person to produce to the 30 Commissioner a document that is required to be kept under section 21B. 561172B.I-6/5/2008 6 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 5 (2) The person to whom a notice is given under subsection (1) must comply with the notice within the period specified in the notice or any extended period allowed by the 5 Commissioner. Penalty: 200 penalty units in the case of a body corporate; 40 penalty units in any other case. 21E Joint and several liability for additional 10 duty If a transferor of dutiable property-- (a) makes a statutory declaration under section 21(4A); and (b) that statutory declaration is incorrect-- 15 the transferor is jointly and severally liable with the transferee for any additional duty payable on the transfer and any penalty or interest.". 5 Increase in thresholds for general rate of duty 20 For the table in section 28(1) of the Duties Act 2000 substitute-- " Dutiable value of the dutiable property the subject of the dutiable transaction Rate of duty Not more than $25 000 14% of the dutiable value More than $25 000 but not $350 plus 24% of that part more than $130 000 of the dutiable value that exceeds $25 000 More than $130 000 but $2870 plus 6% of that part not more than $960 000 of the dutiable value that exceeds $130 000 More than $960 000 55% of the dutiable value ". 561172B.I-6/5/2008 7 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 6 6 Provisions for determining consideration (1) In section 32V(4) of the Duties Act 2000-- (a) omit "exclusively"; and (b) in paragraph (c), for "above; and" substitute 5 "above."; and (c) paragraph (d) is repealed. (2) After section 32V(4) of the Duties Act 2000 insert-- "(4A) Subsection (3) or (4) does not apply unless 10 the transfer, when presented to or lodged with the Commissioner, is accompanied by-- (a) a copy of the building permit, or building approval or permit; and 15 (b) a copy of the contract with the transferee for the construction or refurbishment; and (c) a statutory declaration in the approved form by the transferor as to any 20 prescribed matters and as to whether or not the transferor has entered into any agreement with the transferee in respect of works (other than construction or refurbishment) to be undertaken in 25 relation to the land or the lot before the transfer; and (d) if the Commissioner requires, a statutory declaration in the approved form by the transferee declaring that the 30 transferee has not entered any contract, other than the contract referred to in paragraph (b), for the construction of the building or refurbishment of the lot; and 561172B.I-6/5/2008 8 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 7 (e) if the Commissioner requires, a statutory declaration in the approved form by the person that issued the building permit or building approval or 5 permit. (4B) Sections 21A to 21E apply to a statutory declaration made under subsection (4A) as if a reference in those sections to subsections (3), (4) and (4A) of section 21 were a 10 reference to subsections (3), (4) and (4A) of this section.". 7 Property passing to unitholders in unit trust schemes For section 36B of the Duties Act 2000 15 substitute-- "36B Property passing to unitholders in unit trust schemes (1) No duty is chargeable under this Chapter in respect of a transfer of dutiable property that 20 is subject to a unit trust scheme (the principal scheme) to a unitholder in the scheme if-- (a) the duty (if any) charged by this Act in respect of the dutiable transaction that 25 resulted in the dutiable property becoming subject to the principal scheme has been paid or the Commissioner is satisfied that the duty will be paid; and 30 (b) the unitholder was a unitholder at the relevant time; and (c) the transfer is in accordance with subsection (2); and 561172B.I-6/5/2008 9 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 7 (d) the dutiable value of the property transferred as a proportion of the net assets of the principal scheme does not exceed the value of that proportion of 5 the net assets of the principal scheme represented by the unitholding of the unitholder in the principal scheme at the relevant time; and (e) as a result of the transfer, the value of 10 the unitholder's unitholding in the principal scheme is reduced by the same amount as the dutiable value of the property transferred; and (f) the Commissioner is satisfied that any 15 duty charged as a result of the occurrence of a dutiable transaction referred to in section 7(1)(b)(vi) in relation to the property has been paid; and 20 (g) the Commissioner is satisfied that the transfer is not part of a sale or other arrangement under which there exists any consideration for the transfer. (2) The transfer must be-- 25 (a) to the unitholder absolutely, if the unitholder is-- (i) a natural person; or (ii) a corporation all the shareholders of which are natural persons who 30 were shareholders of the corporation at the relevant time; or (b) to the unitholder as trustee of a fixed trust all the beneficiaries of which are-- 561172B.I-6/5/2008 10 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 7 (i) natural persons who were beneficiaries of that fixed trust at the relevant time; or (ii) a corporation all the shareholders 5 of which are natural persons who were shareholders of the corporation at the relevant time-- being natural persons or a corporation that do not hold their interests in the 10 fixed trust as trustee of another trust; or (c) to the unitholder as trustee of a discretionary trust of which all the beneficiaries are-- (i) natural persons who were relevant 15 beneficiaries of that discretionary trust at the relevant time or who became beneficiaries after the relevant time by reason of-- (A) becoming a spouse or 20 domestic partner of a beneficiary within a class of beneficiary described in the discretionary trust; or (B) becoming an adopted child 25 or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the discretionary trust; or 30 (C) being an adopted child, step child or lineal descendant of a person referred to in sub- subparagraph (A); or 561172B.I-6/5/2008 11 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 7 (ii) a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time-- 5 being natural persons or a corporation that do not hold their rights, entitlements or interests in the discretionary trust as trustee of another trust; or 10 (d) to the unitholder as trustee of another unit trust scheme of which all the unitholders are-- (i) natural persons who were unitholders of that other unit trust 15 scheme at the relevant time; or (ii) a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time-- 20 being natural persons or a corporation that do not hold their units in that other unit trust scheme as trustee of another trust; or (e) to the unitholder as trustee of a 25 superannuation fund all the beneficiaries of which were beneficiaries at the relevant time. (3) If a unitholder would be entitled to an exemption from duty under subsection (1) 30 but for subsection (1)(d), the unitholder is entitled to a concession from duty in respect of that proportion of the dutiable value of the dutiable property that does not exceed that proportion of the net assets of the scheme 35 represented by the unitholding of the 561172B.I-6/5/2008 12 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 7 unitholder in the principal scheme at the relevant time. (4) A reference in this section to dutiable property becoming or first becoming subject 5 to a unit trust scheme includes a reference to property from which that dutiable property was derived, by subdivision or consolidation of titles, becoming or first becoming subject to the scheme at a time when the unitholder 10 was a unitholder in the principal scheme. (5) In this section-- relevant beneficiary of a discretionary trust means a natural person who-- (a) was a beneficiary of that trust at 15 the relevant time; or (b) became a beneficiary of that trust after the relevant time by reason of-- (i) becoming a spouse or 20 domestic partner of a beneficiary within a class of beneficiary described in the discretionary trust; or (ii) becoming an adopted child 25 or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the discretionary trust; or 30 (iii) being an adopted child, step child or lineal descendant of a person referred to in subparagraph (i); 561172B.I-6/5/2008 13 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 8 relevant time in relation to dutiable property that is subject to the principal scheme, means the time at which the property first became subject to the principal 5 scheme; superannuation fund has the same meaning as in section 41A.". 8 New section 38A inserted After section 38 of the Principal Act insert-- 10 "38A Special disability trusts (1) No duty is chargeable under this Chapter in respect of-- (a) a declaration of trust that establishes a special disability trust; or 15 (b) a transfer of dutiable property to the trustee of a special disability trust-- in the circumstances set out in subsections (2), (3) and (4). (2) The person declaring the trust, or the 20 transferor of the dutiable property (as the case requires) must be an immediate family member of the principal beneficiary of the special disability trust. (3) There must be no consideration provided for 25 the declaration or transfer. (4) The dutiable value of the property that is the subject of the declaration or transfer must not exceed $500 000. (5) If, but for subsection (4), duty would not be 30 chargeable in respect of a declaration of trust or transfer of dutiable property because of this section, duty is chargeable on the declaration or transfer only in respect of the 561172B.I-6/5/2008 14 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 8 dutiable value of the property that exceeds $500 000. (6) In this section-- immediate family member of a principal 5 beneficiary, means an individual-- (a) who is a natural parent, adoptive parent or step-parent of the principal beneficiary; or (b) who is, or was when the principal 10 beneficiary was under 18 years of age, a legal guardian of the principal beneficiary; or (c) who is a grandparent of the principal beneficiary; or 15 (d) who is a sibling of the principal beneficiary; principal beneficiary-- (a) has the meaning given in section 1209M(1) of the Social Security 20 Act, in the case of a special disability trust within the meaning of section 1209L of that Act; (b) has the meaning given in section 52ZZZWA(1) of the Veterans' 25 Entitlements Act, in the case of a special disability trust within the meaning of section 52ZZZW of that Act; Social Security Act means the Social 30 Security Act 1991 of the Commonwealth; 561172B.I-6/5/2008 15 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 9 special disability trust means-- (a) a special disability trust within the meaning of section 1209L of the Social Security Act; or 5 (b) a special disability trust within the meaning of section 52ZZZW of the Veterans' Entitlements Act; Veterans' Entitlements Act means the Veterans' Entitlements Act 1986 of the 10 Commonwealth.". 9 Increase in principal place of residence concession (1) In section 57I(1)(d) of the Duties Act 2000, for "$115 000 but not more than $500 000" substitute "$130 000 but not more than $550 000". 15 (2) For the table in section 57J of the Duties Act 2000 substitute-- " Dutiable value of the dutiable property Rate of duty More than $130 000 but $2870 plus 5% of that part not more than $440 000 of the dutiable value that exceeds $130 000 More than $440 000 but $18 370 plus 6% of that not more than $550 000 part of the dutiable value that exceeds $440 000 ". (3) Section 57O of the Duties Act 2000 is repealed. 20 10 Increase in eligible pensioner concession (1) In the Duties Act 2000-- (a) in section 59(1)(b) for "$300 000" substitute "$330 000"; (b) in section 59(2)(b) for "$300 000 but does 25 not exceed $400 000" substitute "$330 000 but does not exceed $440 000"; 561172B.I-6/5/2008 16 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 11 (c) in section 59(3), for the formula substitute-- 1287P "$51 480 - "; 11 000 (d) in section 60(1)(c) for "$300 000" substitute 5 "$330 000"; (e) in section 60(2)(c) for "$300 000 but does not exceed $400 000" substitute "$330 000 but does not exceed $440 000"; (f) in section 60(3), for the formula 10 substitute-- 1287($440 000 - P) "D × ". 550(P - $72 600) (2) In section 60A of the Duties Act 2000-- (a) in subsection (1)-- (i) for "section 18(3)" substitute 15 "section 18(5)"; (ii) in paragraph (b), after "section 18(2)" insert "or (2A) (or both)"; (b) in subsections (2)(b) and (3), after "section 18(2)" insert "or (2A) (or both, as 20 the case requires)". 11 Consequential amendments to first home owner concession (1) In the Duties Act 2000-- (a) in section 62(3), for the formula 25 substitute-- 387P "$15 480 - "; 5000 561172B.I-6/5/2008 17 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 12 (b) in section 62(4), for the formula substitute-- 387($200 000 - P) "D × "; 250(P - $72 600) (c) in section 63(3), for the formula 5 substitute-- 387($200 000 - P) "D × ". 250(P - $72 600) (2) In section 63B of the Duties Act 2000-- (a) in subsection (1)(b), after "section 18(2)" insert "or (2A) (or both)"; 10 (b) in subsections (2)(b) and (3), after "section 18(2)" insert "or (2A) (or both, as the case requires)". 12 New Division 1B inserted in Part 2 of Chapter 11 After Division 1A of Part 2 of Chapter 11 15 insert-- "Division 1B--Exchange of stapled ownership interests for ownership interests in a unit trust scheme 250DH Definitions 20 In this Division-- exchanging members has the same meaning as in section 124-1045(1)(d) of the ITAA; interposed trust means a unit trust scheme 25 that is interposed between the exchanging members and the stapled entities in the course of, or as a result of, a roll-over; 561172B.I-6/5/2008 18 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 12 ITAA means the Income Tax Assessment Act 1997 of the Commonwealth; listed, in relation to the shares or units in a stapled entity, means listed for 5 quotation on the Australian Stock Exchange or a recognised stock exchange; ownership interest has the same meaning as in section 125-60 of the ITAA; 10 public float means a share float or an offer of units to create a public unit trust scheme-- (a) the shares or units of which are quoted on the Australian Stock 15 Exchange or a recognised stock exchange and are offered to the public generally; and (b) of which the issue of the shares or units to the public does not give 20 any person and their related persons (other than the corporate entity that floated the shares or units) a combined beneficial interest in the floated entity 25 greater than 20%; and (c) that is not part of a scheme for the purpose of minimising duty otherwise payable under this Act; roll-over means a roll-over that occurs on or 30 after 1 July 2008 in the circumstances set out in section 124-1045 of the ITAA; stapled entity has the same meaning as in section 124-1045(2) of the ITAA. 561172B.I-6/5/2008 19 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 12 250DI Exemption for relevant acquisitions (1) An exchanging member who makes a relevant acquisition to which section 80 applies in the course of, or as a result of, a 5 roll-over may apply to the Commissioner for an exemption under this Division. (2) The Commissioner must grant an exemption from duty under this Act on the relevant acquisition if the Commissioner is satisfied 10 that-- (a) the relevant acquisition was made in the course of, or as a result of, a roll-over; and (b) the shares or units in the stapled entities 15 to which the roll-over related were listed at the time the relevant acquisition was made or are intended to be listed within the period of 3 years commencing on the day on which the 20 relevant acquisition was made; and (c) the relevant acquisition did not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of this section; 25 and (d) the conditions of the exemption, if any, will be met by the applicant. (3) If duty under this Act has been paid on the relevant acquisition, the Commissioner must 30 refund any duty paid that, by reason of the exemption, is not payable. 561172B.I-6/5/2008 20 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 12 250DJ Conditions of exemption (1) An exemption granted under this Division is subject to any conditions specified by the Commissioner. 5 (2) If an exemption is granted under this Division, the conditions of the exemption are binding on each exchanging member. 250DK Revocation of exemption (1) The Commissioner may revoke an 10 exemption granted under this Division if-- (a) the interposed trust does not retain all its ownership interests in the stapled entities for a period of at least 3 years commencing on the day on which the 15 relevant acquisition was made; or (b) the relevant acquisition was not made in the course of, or as a result of, a roll-over; or (c) the exemption was granted based on 20 false or misleading information in a material particular provided to the Commissioner by an exchanging member or the trustee of the interposed trust; or 25 (d) the relevant acquisition arose from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of section 250DI. 30 (2) Subsection (1)(a) does not apply if the Commissioner is satisfied that the interposed trust does not retain its ownership interests in the stapled entities by virtue of-- 561172B.I-6/5/2008 21 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 13 (a) a public float of any of the stapled entities that occurred within 12 months after the day on which the relevant acquisition was made; or 5 (b) the shares or units of any of the stapled entities being unstapled to enable the winding up of that entity; or (c) the winding up of any of the stapled entities.". 10 13 Tax assessment, penalty and interest regarding roll-overs (1) In section 250F of the Duties Act 2000, for "this Part" substitute "Division 1 or 1A". (2) At the end of section 250F of the Duties Act 2000 15 insert-- "(2) If an exemption under Division 1B is revoked, each entity that was an exchanging member when the exemption was granted is jointly and severally liable for payment of-- 20 (a) the duty payable; and (b) any penalty or interest under this Division.". (3) In section 250G of the Duties Act 2000, for "this Part" substitute "Division 1 or 1A". 25 (4) At the end of section 250G of the Duties Act 2000 insert-- "(2) If an exemption under Division 1B is revoked-- (a) liability for duty in relation to the 30 relevant acquisition arises when the relevant acquisition was made; and 561172B.I-6/5/2008 22 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 13 (b) the duty is payable on or before the day specified by the Commissioner in the notice of reassessment.". (5) For section 250I(1) of the Duties Act 2000 5 substitute-- "(1) If an exemption under this Part was granted based on false or misleading information in a material particular provided to the Commissioner by-- 10 (a) the corporate group, consolidated group or consolidatable group in the case of an exemption under Division 1 or 1A; or (b) an exchanging member or the trustee of 15 the interposed trust in the case of an exemption under Division 1B-- the taxpayer is liable to pay a penalty in addition to the amount of duty unpaid.". (6) For section 250J(1) of the Duties Act 2000 20 substitute-- "(1) If-- (a) a change in circumstance occurs that results in the Commissioner revoking an exemption under this Part; and 25 (b) there is a failure to notify the Commissioner of that change, in the form of a statutory declaration, within 28 days after the change occurred, by-- (i) a corporate group, consolidated 30 group or consolidatable group in the case of an exemption under Division 1 or 1A; or 561172B.I-6/5/2008 23 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 14 (ii) an exchanging member or the trustee of an interposed trust in the case of an exemption under Division 1B-- 5 the taxpayer is liable to pay a penalty in addition to the amount of duty unpaid.". (7) In section 250L of the Duties Act 2000-- (a) in subsection (1), after "dutiable property" insert "or the relevant acquisition (as the 10 case requires),"; (b) in subsection (3), in the definition of relevant day, after "occurred" insert "or the relevant acquisition was made". 14 New clause 27 of Schedule 2 inserted 15 After clause 26 of Schedule 2 to the Duties Act 2000 insert-- "27 State Taxation Acts Amendment Act 2008 (1) Section 21, as amended by section 3 of the State Taxation Acts Amendment Act 2008, 20 and sections 21A to 21E, as inserted by section 4 of that Act, apply to the transfer of dutiable property if the contract of sale of the land is entered into on or after 1 October 2008. 25 (2) Section 21, as in force immediately before the commencement of section 3 of the State Taxation Acts Amendment Act 2008, continues to apply to the transfer of dutiable property if the contract of sale of the land is 30 entered into before 1 October 2008. (3) Subject to subclause (4), section 28(1), as amended by section 5 of the State Taxation Acts Amendment Act 2008, applies to a dutiable transaction occurring on or after 35 6 May 2008. 561172B.I-6/5/2008 24 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 14 (4) The rate of duty chargeable on a transfer of dutiable property on or after 6 May 2008 that is made as a result of an agreement entered into before that day is the rate set out in 5 section 28 as in force immediately before the commencement of section 5 of the State Taxation Acts Amendment Act 2008. (5) Section 32V, as amended by section 6 of the State Taxation Acts Amendment Act 2008, 10 applies to a relevant transaction (within the meaning of section 32V) if the date of the relevant transaction is on or after 1 October 2008. (6) Section 32V, as in force immediately before 15 the commencement of section 6 of the State Taxation Acts Amendment Act 2008, continues to apply to a relevant transaction (within the meaning of section 32V) if the date of the relevant transaction is before 20 1 October 2008. (7) Section 38A applies to a declaration of trust or transfer of dutiable property that occurs on or after 6 May 2008. (8) Division 4A of Part 5 of Chapter 2, as 25 amended by section 9 of the State Taxation Acts Amendment Act 2008 applies to a PPR transfer of dutiable property being an estate in fee simple in land if the contract for purchase of the land was entered into on or 30 after 6 May 2008. (9) Sections 59 and 60, as amended by section 10 of the State Taxation Acts Amendment Act 2008, apply to a transfer to an eligible pensioner of dutiable property 35 being an estate in fee simple in land if the contract for sale of the land was entered into on or after 6 May 2008. 561172B.I-6/5/2008 25 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 2--Duties Act 2000 s. 14 (10) Sections 62 and 63, as amended by section 11 of the State Taxation Acts Amendment Act 2008, apply to a transfer to an eligible first home owner of dutiable 5 property being an estate in fee simple in land if the contract for sale of the land was entered into on or after 6 May 2008. (11) A taxpayer is entitled to a refund of any duty paid on or after 6 May 2008 that is not 10 payable because of subclause (3), (4), (7), (8), (9) or (10).". __________________ 561172B.I-6/5/2008 26 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 3--First Home Owner Grant Act 2000 s. 15 PART 3--FIRST HOME OWNER GRANT ACT 2000 15 Additional grant for newly constructed homes in regional Victoria (1) After section 18(2) of the First Home Owner See: Act No. 5 Grant Act 2000 insert-- 5/2000. Reprint No. 2 "(2A) Subject to subsections (3) and (4), an as at 26 September additional amount of $3000 is payable 2007 and (in addition to any amount payable under amending Act No. subsection (1) or (2)) if-- 12/2008. LawToday: 10 (a) the consideration for the eligible www. transaction does not exceed $500 000; legislation. vic.gov.au and (b) the commencement date of the eligible transaction is on or after 6 May 2008 15 and before 1 July 2009; and (c) the eligible transaction is a contract for the purchase of new residential premises or an eligible transaction referred to in section 13(1)(b) or (c); 20 and (d) the land on which the premises or home is or will be situated is wholly in regional Victoria.". (2) In section 18 of the First Home Owner Grant 25 Act 2000-- (a) in subsections (3) and (4), after "Subsection (2)" insert "or (2A)"; (b) in subsections (5) and (6), after "subsection (2)" insert "or (2A)"; 30 (c) subsection (7) is repealed. 561172B.I-6/5/2008 27 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 3--First Home Owner Grant Act 2000 s. 16 (3) In section 18(8) of the First Home Owner Grant Act 2000-- (a) insert the following definition-- "regional Victoria means-- 5 (a) the municipal districts of the municipal councils set out in Schedule 1; and (b) the alpine resorts within the meaning of the Alpine Resorts 10 Act 1983."; (b) the definition of PPR transfer is repealed. 16 New Schedule 1 inserted After Part 4 of the First Home Owner Grant Act 2000 insert-- 15 "__________________ SCHEDULE 1 Section 18(8) MUNICIPAL COUNCILS IN REGIONAL VICTORIA Alpine Shire Council Central Goldfields Shire Council Ararat Rural City Council Colac Otway Shire Council Ballarat City Council Corangamite Shire Council Bass Coast Shire Council East Gippsland Shire Council Baw Baw Shire Council Gannawarra Shire Council Benalla Rural City Council Glenelg Shire Council Buloke Shire Council Golden Plains Shire Council Campaspe Shire Council Greater Bendigo City Council 561172B.I-6/5/2008 28 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 3--First Home Owner Grant Act 2000 s. 16 Greater Geelong City Murrindindi Shire Council Council Greater Shepparton City Northern Grampians Shire Council Council Hepburn Shire Council Pyrenees Shire Council Hindmarsh Shire Council Borough of Queenscliffe Horsham Rural City South Gippsland Shire Council Council Indigo Shire Council Southern Grampians Shire Council Latrobe City Council Strathbogie Shire Council Loddon Shire Council Surf Coast Shire Council Macedon Ranges Shire Swan Hill Rural City Council Council Mansfield Shire Council Towong Shire Council Mildura Rural City Council Wangaratta Rural City Council Mitchell Shire Council Warrnambool City Council Moira Shire Council Wellington Shire Council Moorabool Shire Council West Wimmera Shire Council Mount Alexander Shire Wodonga City Council Council Moyne Shire Council Yarriambiack Shire Council". __________________ 561172B.I-6/5/2008 29 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 17 PART 4--LAND TAX ACT 2005 17 Special land tax See: (1) After section 30(1)(e) of the Land Tax Act 2005 Act No. 88/2005. insert-- Reprint No. 2 5 as at "(ea) land referred to in section 76A (residential 18 October 2007 service);". and amending (2) In section 30(2)(a) of the Land Tax Act 2005, for Act Nos "$224 999" substitute "$249 999". 22/2007, 68/2007 and 12/2008. LawToday: www. legislation. vic.gov.au 18 New section 76A inserted 10 After section 76 of the Land Tax Act 2005 insert-- "76A Residential services for people with disabilities (1) Land is exempt land if the Commissioner 15 determines that it is occupied, or currently available for occupation, as a residential service within the meaning of the Disability Act 2006. (2) To obtain an exemption from land tax under 20 this section, the owner of the land must-- (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the 25 purpose of enabling the Commissioner to determine whether the land is exempt under this section. 561172B.I-6/5/2008 30 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 19 (3) If the Commissioner is satisfied that only a part of land is occupied or currently available for occupation as a residential service-- (a) land tax is assessable on the remaining 5 part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose.". 19 Increase in thresholds and reduction in top tax rate 10 (1) In Part 1 of Schedule 1 to the Land Tax Act 2005-- (a) in the heading to clause 1.3 omit "and subsequent years"; (b) in clause 1.3 omit "and each subsequent 15 year". (2) In Part 1 of Schedule 1 to the Land Tax Act 2005, after clause 1.3 insert-- "1.4 Land tax for 2009 and subsequent years The rate of land tax for 2009 and each 20 subsequent year is set out in Table 1.4. TABLE 1.4 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 1 0 250 000 Nil 2 250 000 600 000 $275 and 02% of the taxable value that exceeds $250 000 3 600 000 1 000 000 $975 and 05% of the taxable value that exceeds $600 000 561172B.I-6/5/2008 31 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 19 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 4 1 000 000 1 800 000 $2975 and 08% of the taxable value that exceeds $1 000 000 5 1 800 000 3 000 000 $9375 and 13% of the taxable value that exceeds $1 800 000 6 3 000 000 $24 975 and 225% of the taxable value that exceeds $3 000 000 ". (3) In Part 2 of Schedule 1 to the Land Tax Act 2005-- (a) in the heading to clause 2.2 omit "and 5 subsequent years"; (b) in clause 2.2 omit "and each subsequent year". (4) In Part 2 of Schedule 1 to the Land Tax Act 2005, after clause 2.2 insert-- 10 "2.3 Rate of land tax on transmission easements for 2009 and subsequent years The rate of land tax on transmission easements for 2009 and each subsequent year is set out in Table 2.3. 561172B.I-6/5/2008 32 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 19 TABLE 2.3 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 1 0 250 000 Nil 2 250 000 600 000 $275 and 02% of the taxable value that exceeds $250 000 3 600 000 1 000 000 $975 and 05% of the taxable value that exceeds $600 000 4 1 000 000 1 800 000 $2975 and 08% of the taxable value that exceeds $1 000 000 5 1 800 000 3 000 000 $9375 and 13% of the taxable value that exceeds $1 800 000 6 3 000 000 $24 975 and 5% of the taxable value that exceeds $3 000 000 ". (5) In Part 3 of Schedule 1 to the Land Tax Act 2005-- 5 (a) in the heading to clause 3.3 omit "and subsequent years"; (b) in clause 3.3 omit "and each subsequent year". 561172B.I-6/5/2008 33 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 19 (6) In Part 3 of Schedule 1 to the Land Tax Act 2005, after clause 3.3 insert-- "3.4 Land tax for trusts for 2009 and subsequent years 5 The rate of land tax for 2009 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.4. TABLE 3.4 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 1 0 25 000 Nil 2 25 000 250 000 $82 and 0375% of the taxable value that exceeds $25 000 3 250 000 600 000 $926 and 0575% of the taxable value that exceeds $250 000 4 600 000 1 000 000 $2938 and 0875% of the taxable value that exceeds $600 000 5 1 000 000 1 800 000 $6438 and 1175% of the taxable value that exceeds $1 000 000 6 1 800 000 3 000 000 $15 838 and 07614% of the taxable value that exceeds $1 800 000 561172B.I-6/5/2008 34 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 4--Land Tax Act 2005 s. 19 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 7 3 000 000 $24 975 and 225% of the taxable value that exceeds $3 000 000 ". __________________ 561172B.I-6/5/2008 35 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 5--Payroll Tax Act 2007 s. 20 PART 5--PAYROLL TAX ACT 2007 20 Exemption for non-profit organisations See: For section 48(1)(c) of the Payroll Tax Act 2007 Act No. 26/2007 and substitute-- amending 5 Act No. "(c) a non-profit organisation having as its sole or 12/2008. LawToday: dominant purpose a charitable, benevolent, www. philanthropic or patriotic purpose (but not legislation. vic.gov.au including a school, an educational institution, an educational company or an 10 instrumentality of the State).". 21 Groups of corporations In section 70 of the Payroll Tax Act 2007-- (a) subsection (2) is repealed; (b) the note at the foot of the section is 15 repealed. 22 New section 74 substituted For section 74 of the Payroll Tax Act 2007 substitute-- "74 Smaller groups subsumed by larger 20 groups (1) If a person is a member of 2 or more groups, the members of all the groups together constitute a group. (2) If 2 or more members of a group have 25 together a controlling interest in a business (within the meaning of section 72), all the members of the group and the person or persons who carry on the business together constitute a group. 30 Note Section 79 (Exclusion of persons from groups) allows the Commissioner, for payroll tax purposes, to exclude persons 561172B.I-6/5/2008 36 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 5--Payroll Tax Act 2007 s. 23 from a group constituted under this section in certain circumstances.". 23 Registration In section 86(1)(a) of the Payroll Tax Act 2007, 5 for "$9615" substitute "$10 576". 24 Leap years In Schedule 1 to the Payroll Tax Act 2007-- (a) in clause 1 insert the following definition-- "FY is the number of days in the financial 10 year;"; (b) in the formulas in clauses 4, 5, 8 and 9(2), for "365" substitute "FY". 25 Reduction in payroll tax rate In the Payroll Tax Act 2007-- 15 (a) in Schedule 1, in clause 1, in paragraph (b) of the definition of 'R', for "5%" substitute "495%"; (b) in Schedule 2, in clause 2(b), for "5%" substitute "495%". 20 26 New clause 15 inserted in Schedule 3 After clause 14 in Schedule 3 to the Payroll Tax Act 2007 insert-- "15 State Taxation Acts Amendment Act 2008 Schedule 1, as amended by section 24 of the 25 State Taxation Acts Amendment Act 2008, applies to the financial year commencing on 1 July 2007 and any subsequent financial year.". 561172B.I-6/5/2008 37 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 5--Payroll Tax Act 2007 s. 27 27 Statute law revision In Schedule 1 to the Payroll Tax Act 2007, in the headings to clauses 4 and 8, for "under threshold" substitute "not more than 5 threshold". __________________ 561172B.I-6/5/2008 38 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Part 6--Repeal of Amending Act s. 28 PART 6--REPEAL OF AMENDING ACT 28 Repeal of Act This Act is repealed on 1 January 2010. Note 5 The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). 561172B.I-6/5/2008 39 BILL LA INTRODUCTION 6/5/2008
State Taxation Acts Amendment Bill 2008 Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 561172B.I-6/5/2008 40 BILL LA INTRODUCTION 6/5/2008