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PARLIAMENT OF VICTORIA
State Taxation Acts Amendment Bill 2009
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1 Purposes 1
2 Commencement 2
PART 2--DUTIES ACT 2000 3
3 What is the consideration for the transfer of dutiable property? 3
4 Provisions for determining consideration 3
5 Deceased estates 3
6 New section 52A inserted 4
52A Joint government enterprise--water saving projects 4
7 Transfers of farms to relatives or charities 4
8 Election to receive eligible pensioner exemption/concession or
additional first home owner grant 5
9 Election to receive eligible first home owner
exemption/concession or additional first home owner grant 6
10 Exemptions from life insurance duty 7
11 Reassessments--failed instruments 7
PART 3--FIRST HOME OWNER GRANT ACT 2000 9
12 Eligible transaction 9
13 Amount of grant 9
PART 4--LAND TAX ACT 2005 12
14 Transitional provisions 12
13 Enactments applying to old Act 12
PART 5--REPEAL OF AMENDING ACT 13
15 Repeal of Act 13
ENDNOTES 14
561370B.I-5/5/2009 i BILL LA INTRODUCTION 5/5/2009
PARLIAMENT OF VICTORIA
Introduced in the Assembly
State Taxation Acts Amendment
Bill 2009
A Bill for an Act to amend the Duties Act 2000 and other Acts and
for other purposes.
The Parliament of Victoria enacts:
PART 1--PRELIMINARY
1 Purposes
The main purposes of this Act are--
(a) to amend the Duties Act 2000--
5 (i) to clarify the operation of certain
provisions in relation to determining
consideration for the transfer of
dutiable property;
(ii) to clarify the scope of the exemption
10 from duty in relation to deceased
estates;
561370B.I-5/5/2009 1 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 1--Preliminary
s. 2
(iii) to clarify the circumstances in which
the family farm exemption from duty is
to apply;
(iv) to provide that a policy of life insurance
5 that is an FHSA (first home saver
account) is exempt from life insurance
duty;
(v) to clarify the circumstances in which a
reassessment is made in relation to
10 failed instruments;
(b) to amend the First Home Owner Grant Act
2000 in relation to eligible transactions with
a commencement date on or after 1 July
2009;
15 (c) to amend the Land Tax Act 2005 to clarify
that various Acts and regulations that applied
in respect of matters under the Land Tax
Act 1958 before the commencement of the
Land Tax Act 2005 continue to so apply.
20 2 Commencement
(1) This Act (except sections 8 and 9, Part 3 and
Part 4) comes into operation on the day after the
day on which it receives the Royal Assent.
(2) Sections 8 and 9 and Part 3 come into operation
25 on 1 July 2009.
(3) Part 4 is deemed to have come into operation on
1 January 2006.
__________________
561370B.I-5/5/2009 2 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 3
PART 2--DUTIES ACT 2000
3 What is the consideration for the transfer of
dutiable property?
In section 21(4A)(c) of the Duties Act 2000, for See:
Act No.
5 "any prescribed matters and as to" substitute 79/2000.
"(but not limited to)". Reprint No. 6
as at
25 July 2007
and
amending
Act Nos
12/2008,
31/2008,
79/2008 and
84/2008.
LawToday:
www.
legislation.
vic.gov.au
4 Provisions for determining consideration
In section 32V(4A)(c) of the Duties Act 2000, for
"any prescribed matters and as to" substitute
10 "(but not limited to)".
5 Deceased estates
After section 42(2) of the Duties Act 2000
insert--
"(3) No duty is chargeable under this Chapter in
15 respect of a transfer of dutiable property not
made for valuable consideration by a legal
personal representative of a deceased person
to a beneficiary to the extent that the transfer
is made in satisfaction of the beneficiary's
20 entitlement arising under the will of the
deceased person or arising on an intestacy.".
561370B.I-5/5/2009 3 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 6
6 New section 52A inserted
After section 52 of the Duties Act 2000 insert--
"52A Joint government enterprise--water
saving projects
5 No duty is chargeable under this Chapter in
respect of a transfer of dutiable property
being an estate in fee simple to a joint
government enterprise that has the function
of allocating funds for water saving projects
10 if the joint government enterprise acquires
the property for the purposes of encouraging
water efficiency measures.".
7 Transfers of farms to relatives or charities
(1) For section 56(2)(c) of the Duties Act 2000
15 substitute--
"(c) a company (not acting in the capacity of
trustee under a trust) all the shares in which
are owned by natural persons who are
relatives of each other; or
20 (d) a trustee under--
(i) a discretionary trust, the capital
beneficiaries of which are limited to
natural persons who are relatives of
each other; or
25 (ii) a fixed trust, the beneficiaries of which
are limited to natural persons who are
relatives of each other.".
(2) In section 56(3)(d) of the Duties Act 2000, after
"subsection (2)(c)" insert "or (2)(d)".
30 (3) In section 56(4) of the Duties Act 2000 insert the
following definition--
"capital beneficiary of a discretionary trust means
a person, or a member of a class of person, in
whom, by the terms of the trust, the whole or
561370B.I-5/5/2009 4 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 8
any part of the capital of the trust estate may
be vested or remain vested--
(a) in the event of the exercise of a power
or discretion in favour of the person
5 (whether or not that power is presently
exercisable); or
(b) in the event that a discretion conferred
under the trust is not exercised;".
8 Election to receive eligible pensioner
10 exemption/concession or additional first home
owner grant
(1) For section 60A(1)(b) of the Duties Act 2000
substitute--
"(b) to receive an amount in respect of an eligible
15 transaction (within the meaning of the First
Home Owner Grant Act 2000) relating to
that land under--
(i) section 18(2) or 18(2A) of that Act
(or both); or
20 (ii) section 18(2AA) or 18(2B) of that Act
(or both).".
(2) For section 60A(2)(b) of the Duties Act 2000
substitute--
"(b) the amount in respect of the eligible
25 transaction (within the meaning of the First
Home Owner Grant Act 2000) under--
(i) section 18(2) or (2A) of that Act
(or both, as the case requires); or
(ii) section 18(2AA) or 18(2B) of that Act
30 (or both, as the case requires).".
561370B.I-5/5/2009 5 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 9
(3) For section 60A(3) of the Duties Act 2000
substitute--
"(3) If the eligible pensioner elects to receive the
amount under--
5 (a) section 18(2) or 18(2A) (or both, as the
case requires); or
(b) section 18(2AA) or 18(2B) (or both, as
the case requires)--
of the First Home Owner Grant Act 2000,
10 or does not make an election under this
section, he or she is not entitled to the
exemption or concession under section 59
or 60 (as the case requires) in respect of the
transfer.".
15 9 Election to receive eligible first home owner
exemption/concession or additional first home
owner grant
(1) For section 63B(1)(b) of the Duties Act 2000
substitute--
20 "(b) to receive an amount in respect of an eligible
transaction (within the meaning of the First
Home Owner Grant Act 2000) relating to
that land under--
(i) section 18(2) or 18(2A) of that Act
25 (or both); or
(ii) section 18(2AA) or 18(2B) of that Act
(or both).".
(2) For section 63B(2)(b) of the Duties Act 2000
substitute--
30 "(b) the amount in respect of the eligible
transaction (within the meaning of the First
Home Owner Grant Act 2000) under--
561370B.I-5/5/2009 6 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 10
(i) section 18(2) or 18(2A) of that Act
(or both, as the case requires); or
(ii) section 18(2AA) or 18(2B) of that Act
(or both, as the case requires).".
5 (3) For section 63B(3) of the Duties Act 2000
substitute--
"(3) If the eligible first home owner elects to
receive the amount under--
(a) section 18(2) or 18(2A) (or both, as the
10 case requires); or
(b) section 18(2AA) or 18(2B) (or both, as
the case requires)--
of the First Home Owner Grant Act 2000,
or does not make an election under this
15 section, he or she is not entitled to the
exemption or concession under section 62
or 63 (as the case requires) in respect of the
transfer.".
10 Exemptions from life insurance duty
20 In section 208 of the Duties Act 2000--
(a) in paragraph (b), for "reinsurance."
substitute "reinsurance;";
(b) after paragraph (b) insert--
"(c) a policy of life insurance that is an
25 FHSA within the meaning of the First
Home Saver Accounts Act 2008 of the
Commonwealth.".
11 Reassessments--failed instruments
For sections 260(1) and 260(2) of the Duties Act
30 2000 substitute--
"(1) The Commissioner may make a reassessment
of duty that is charged under this Act in
respect of a transfer or transaction if--
561370B.I-5/5/2009 7 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 2--Duties Act 2000
s. 11
(a) the Commissioner is satisfied that the
instrument that is intended to effect the
transfer or transaction has failed to give
effect to the transfer or transaction; and
5 (b) an application for reassessment of duty
under this subsection is made within
5 years after the initial assessment.".
__________________
561370B.I-5/5/2009 8 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 3--First Home Owner Grant Act 2000
s. 12
PART 3--FIRST HOME OWNER GRANT ACT 2000
12 Eligible transaction
(1) In section 13(1) of the First Home Owner Grant See:
Act No.
Act 2000, for "An eligible transaction" substitute 5/2000.
5 "Subject to subsection (1A), an eligible Reprint No. 2
as at
transaction". 26 September
2007
(2) After section 13(1) of the First Home Owner and
amending
Grant Act 2000 insert-- Act Nos
12/2008,
"(1A) The consideration for an eligible transaction 31/2008 and
10 with a commencement date that is on or after 84/2008.
LawToday:
1 July 2009 must not exceed $600 000.". www.
legislation.
vic.gov.au
13 Amount of grant
(1) After section 18(2) of the First Home Owner
Grant Act 2000 insert--
15 "(2AA) Subject to subsections (3) and (4), if the
consideration for the eligible transaction
does not exceed $600 000 an additional
amount is payable as follows--
(a) if the commencement date of the
20 eligible transaction is on or after 1 July
2009 and before 1 July 2010--
(i) $11 000 if the eligible transaction
is a contract for the purchase of
new residential premises or an
25 eligible transaction referred to in
section 13(1)(b) or 13(1)(c); or
(ii) $2000 in any other case.".
561370B.I-5/5/2009 9 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 3--First Home Owner Grant Act 2000
s. 13
(2) After section 18(2A) of the First Home Owner
Grant Act 2000 insert--
"(2B) Subject to subsections (3) and (4), an
additional amount of $4 500 is payable
5 (in addition to any amount payable under
subsection (1) or (2AA)) if--
(a) the consideration for the eligible
transaction does not exceed $600 000;
and
10 (b) the commencement date of the eligible
transaction is on or after 1 July 2009
and before 1 July 2010; and
(c) the eligible transaction is a contract for
the purchase of new residential
15 premises or an eligible transaction
referred to in section 13(1)(a) or
13(1)(b); and
(d) the land on which the premises or home
is or will be situated is wholly in
20 regional Victoria.".
(3) In sections 18(3), 18(5) and 18(6) of the First
Home Owner Grant Act 2000, for "(2) or (2A)"
(wherever occurring) substitute "(2), (2AA), (2A)
or (2B)".
25 (4) After section 18(4) of the First Home Owner
Grant Act 2000 insert--
"(4A) Subsection (2AA) or (2B) also does not
apply if the Commissioner is satisfied that
the contract that formed the basis of the
30 eligible transaction replaces a contract made
before 1 July 2009 (the earlier contract),
and the earlier contract was--
(a) a contract for the purchase of the same
home; or
561370B.I-5/5/2009 10 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 3--First Home Owner Grant Act 2000
s. 13
(b) a comprehensive home building
contract to build the same or a
substantially similar home.".
__________________
561370B.I-5/5/2009 11 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 4--Land Tax Act 2005
s. 14
PART 4--LAND TAX ACT 2005
14 Transitional provisions
See: In Schedule 3 to the Land Tax Act 2005, after
Act No.
88/2005. clause 12 insert--
Reprint No. 2
5 as at "13 Enactments applying to old Act
18 October
2007 Despite anything to the contrary, the
and
amending following enactments, as in force
Act Nos immediately before the commencement day,
22/2007,
68/2007, continue to apply on and after that day in
10 12/2008, respect of any matter to which the old Act
31/2008,
46/2008, continues to apply on and after that day and
79/2008 and are taken always to have so applied--
4/2009.
LawToday: (a) Taxation Administration Act 1997
www.
legislation. and regulations made under that Act;
vic.gov.au
15 (b) Taxation (Reciprocal Powers) Act
1987;
(c) Victorian Civil and Administrative
Tribunal Act 1998 and regulations and
rules made under that Act.".
__________________
561370B.I-5/5/2009 12 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Part 5--Repeal of Amending Act
s. 15
PART 5--REPEAL OF AMENDING ACT
15 Repeal of Act
This Act is repealed on the first anniversary of its
commencement.
5 Note
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).
561370B.I-5/5/2009 13 BILL LA INTRODUCTION 5/5/2009
State Taxation Acts Amendment Bill 2009
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
561370B.I-5/5/2009 14 BILL LA INTRODUCTION 5/5/2009
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