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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation (Reductions and Concessions) Act
2006
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. Pensioner exemptions and concessions 3
4. First home owner exemptions and concessions 4
5. New section 63B inserted 4
63B. Election to receive eligible first home owner
exemption/concession or additional first home owner
grant 4
6. Transitional provision 5
23. State Taxation (Reductions and Concessions)
Act 2006 5
PART 3--FIRST HOME OWNER GRANT ACT 2000 6
7. Amount of grant 6
PART 4--LAND TAX ACT 2005 7
8. New land tax rates 7
1.2 Land tax for 2007 and subsequent years 7
3.2 Land tax for trusts for 2007 and subsequent years 9
9. Capping land tax for 2007 10
5A. Land tax capping for 2007 10
PART 5--PAY-ROLL TAX ACT 1971 13
10. Reduction of pay-roll tax rates 13
ENDNOTES 14
i
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
PARLIAMENT OF VICTORIA
A BILL
to amend the Duties Act 2000, the First Home Owner Grant Act
2000, the Land Tax Act 2005 and the Pay-roll Tax Act 1971 to give
effect to initiatives in the 200607 State budget and for other
purposes.
State Taxation (Reductions and
Concessions) Act 2006
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to amend the Duties
Act 2000, the First Home Owner Grant Act
2000, the Land Tax Act 2005 and the Pay-roll
5
1
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 1--Preliminary
s. 2
Tax Act 1971 to give effect to initiatives in the
200607 State budget.
2. Commencement
This Act comes into operation on the day after the
day on which it receives the Royal Assent.
5
__________________
2
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
See:
PART 2--DUTIES ACT 2000
Act No.
79/2000.
3. Pensioner exemptions and concessions Reprint No. 5
as at
In the Duties Act 2000-- 10 February
2006.
(a) in section 59-- LawToday:
www.dms.
dpc.vic.
(i) in sub-section (1)(b), for "$250 000"
5 gov.au
substitute "$300 000";
(ii) in sub-section (2)(b), for "$250 000 but
does not exceed $350 000" substitute
"$300 000 but does not exceed
$400 000";
10
(iii) in sub-section (3), for the formula
substitute--
683P
"$54 640 - ";
5000
(b) in section 60--
(i) in sub-section (1)(c), for "$250 000"
15
substitute "$300 000";
(ii) in sub-section (2)(c), for "$250 000 but
does not exceed $350 000" substitute
"$300 000 but does not exceed
$400 000";
20
(iii) in sub-section (3), for the formula
substitute--
683($400 000 - P)
"D × ".
100(3P - $217 000)
3
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 2--Duties Act 2000
s. 4
4. First home owner exemptions and concessions
In section 63A(1) of the Duties Act 2000, for
"1 July 2007" substitute "1 January 2006".
5. New section 63B inserted
After section 63A of the Duties Act 2000
5
insert--
"63B. Election to receive eligible first home
owner exemption/concession or additional
first home owner grant
(1) This section applies to an eligible first home
10
owner who, but for this section or
section 18(6) of the First Home Owner
Grant Act 2000, would be entitled--
(a) to an exemption or concession from
duty under section 62 or 63 in respect
15
of a transfer of an estate in fee simple
in land; and
(b) to receive an amount under
section 18(2) of the First Home
Owner Grant Act 2000 in respect of
20
an eligible transaction (within the
meaning of that Act) relating to that
land.
(2) The eligible first home owner, by notice in
writing to the Commissioner, must elect to
25
receive--
(a) the exemption or concession under
section 62 or 63 (as the case requires)
in respect of the transfer; or
(b) the amount under section 18(2) of the
30
First Home Owner Grant Act 2000 in
respect of the eligible transaction.
4
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 2--Duties Act 2000
s. 6
(3) If the eligible pensioner elects to receive the
amount under section 18(2) of the First
Home Owner Grant Act 2000, or does not
make an election under this section, he or she
is not entitled to the exemption or concession
5
under section 62 or 63 (as the case requires)
in respect of the transfer.".
6. Transitional provision
After clause 22 of Schedule 2 to the Duties Act
2000 insert--
10
'23. State Taxation (Reductions and Concessions) Act
2006
(1) Sections 59 and 60, as amended by section 3 of the
State Taxation (Reductions and Concessions) Act
15 2006, apply to a transfer to an eligible pensioner of
dutiable property being an estate in fee simple in land
if the contract of sale of the land was entered into on
or after 30 May 2006.
(2) Sections 59 and 60, as in force immediately before the
20 commencement day, continue to apply to a transfer to
an eligible pensioner of dutiable property being an
estate in fee simple in land if the contract of sale of
the land was entered into before 30 May 2006.
(3) If an eligible first home owner elects under
25 section 63B to receive a concession under section 62
or 63 in respect of a contract for an eligible
transaction entered into on or after 1 January 2006
and he or she has received an amount under
section 18(2) of the First Home Owner Grant Act
30 2000 in respect of the eligible transaction before the
commencement day, that amount must be deducted
from the amount of the concession.
(4) In this clause, "commencement day" means the day
after the day on which the State Taxation
35 (Reductions and Concessions) Act 2006 received
the Royal Assent.'.
__________________
5
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 3--First Home Owner Grant Act 2000
s. 7
See: PART 3--FIRST HOME OWNER GRANT ACT 2000
Act No.
5/2000.
7. Amount of grant
Reprint No. 1
as at
After section 18(5) of the First Home Owner
1 January
2004
Grant Act 2000 insert--
and
amending
"(6) If an eligible first home owner (within the
5 Act Nos
46/2004, meaning of the Duties Act 2000) to whom
71/2004 and
section 63B(2) of that Act applies elects
36/2005.
LawToday: under that section to receive an exemption or
www.dms.
concession under section 62 or 63 of that Act
dpc.vic.
gov.au in respect of a transfer of land, he or she is
10
not entitled to any amount under sub-
section (2) of this section in respect of the
eligible transaction relating to that land.".
__________________
6
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 8
See:
PART 4--LAND TAX ACT 2005
Act No.
88/2005.
8. New land tax rates Reprint No. 1
as at
(1) For clause 1.2 of Schedule 1 to the Land Tax Act 1 January
2006 and
2005 substitute-- amending
Act No.
5 "1.2 Land tax for 2007 and subsequent years 23/2006.
LawToday:
The rate of land tax for 2007 and each subsequent www.dms.
year is set out in Table 1.2. dpc.vic.
gov.au
TABLE 1.2
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02% of
the taxable value
that exceeds
$200 000
3. 540 000 900 000 $880 and 05% of
the taxable value
that exceeds
$540 000
4. 900 000 1 190 000 $2680 and 08%
of the taxable
value that exceeds
$900 000
5. 1 190 000 1 620 000 $5000 and 12%
of the taxable
value that exceeds
$1 190 000
6. 1 620 000 2 700 000 $10 160 and 18%
of the taxable
value that exceeds
$1 620 000
7
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 8
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
7. 2 700 000 $29 600 and 3%
of the taxable
value that exceeds
$2 700 000
".
(2) Clause 1.3 of Schedule 1 to the Land Tax Act
2005 is repealed.
(3) For Table 2.1 in clause 2.1 of Schedule 1 to the
Land Tax Act 2005 substitute--
5 "TABLE 2.1
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
1. 0 200 000 Nil
2. 200 000 540 000 $200 and 02% of the
taxable value that
exceeds $200 000
3. 540 000 900 000 $880 and 05% of the
taxable value that
exceeds $540 000
4. 900 000 1 190 000 $2680 and 08% of the
taxable value that
exceeds $900 000
5. 1 190 000 1 620 000 $5000 and 12% of the
taxable value that
exceeds $1 190 000
6. 1 620 000 2 700 000 $10 160 and 18% of
the taxable value that
exceeds $1 620 000
8
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 8
Column 1 Column 2
Taxable Taxable
value not value not Column 3
Item less than exceeding Rate of land tax
$ $
7. 2 700 000 $29 600 and 5% of the
taxable value that
exceeds $2 700 000
".
(4) For clause 3.2 of Schedule 1 to the Land Tax Act
2005 substitute--
"3.2 Land tax for trusts for 2007 and subsequent years
The rate of land tax for 2007 and each subsequent
5 year for land held by an owner subject to a trust is set
out in Table 3.2.
TABLE 3.2
Item Column 1 Column 2 Column 3
$ $
1. 0 20 000 Nil
2. 20 000 200 000 $75 and 0375%
of the taxable
value that
exceeds $20 000
3. 200 000 540 000 $750 and 0575%
of the taxable
value that
exceeds $200 000
4. 540 000 900 000 $2705 and
0875% of the
taxable value that
exceeds $540 000
5. 900 000 1 190 000 $5855 and
1175% of the
taxable value that
exceeds $900 000
9
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 9
Item Column 1 Column 2 Column 3
$ $
6. 1 190 000 1 620 000 $9263 and
1575% of the
taxable value that
exceeds
$1 190 000
7. 1 620 000 2 700 000 $16 035 and
1256% of the
taxable value that
exceeds
$1 620 000
8. 2 700 000 $29 600 and 3%
of the taxable
value that
exceeds
$2 700 000
".
(5) Clause 3.3 of Schedule 1 to the Land Tax Act
2005 is repealed.
9. Capping land tax for 2007
After clause 5 of Schedule 3 to the Land Tax Act
2005 insert--
5
'5A. Land tax capping for 2007
(1) The amount of land tax payable for 2007 on the land
of an owner is--
(a) the amount determined in accordance with
10 Table 1.2 or Table 3.2 in Schedule 1
(as applicable); or
(b) if that amount is more than 150% of the 2006
tax amount, 150% of the 2006 tax amount.
(2) For the purposes of this clause--
15 (a) the "2006 tax amount", in relation to land of
an owner, means the amount determined by
applying the rates of tax set out in Table 1.1 or
Table 3.1 in Schedule 1 (as applicable) to the
sum of--
10
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 9
(i) in respect of any land that was valued
separately as at the relevant date (within
the meaning of section 19) for the
purpose of assessing land tax for 2006,
5 the taxable value of that land determined
for the purpose of assessing land tax for
2006; and
(ii) in respect of any land that was not valued
separately as at the relevant date for the
10 purpose of assessing land tax for 2006
but was rated separately as at the relevant
date for the purpose of assessing land tax
for 2007, the taxable value of that land
determined for the purpose of assessing
15 land tax for 2007; and
(iii) in respect of all other land, the taxable
value of the land as assessed under this
Act for 2006;
(b) if, for the 2006 tax year--
20 (i) the capping provisions in clause 5
applied to land of an owner; and
(ii) no tax was payable by the owner at the
rates of tax set out in Table 3.1 in
Schedule 1--
25 the "2006 tax amount" is the amount referred
to in paragraph (a) as capped in accordance
with clause 5;
(c) if, for the 2006 tax year--
(i) the capping provisions in clause 5
30 applied to land of an owner; and
(ii) tax was also payable by the owner at the
rates of tax set out in Table 3.1 in
Schedule 1--
the "2006 tax amount" is that part of the
35 amount referred to in paragraph (a) as capped in
accordance with clause 5 plus that part of the
amount referred to in paragraph (a) determined
by applying the rates of tax set out in Table 3.1
in Schedule 1;
11
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 4--Land Tax Act 2005
s. 9
(d) if the 2006 tax amount is zero, the amount of
land tax payable for 2007 is the amount
determined in accordance with Table 1.2 or
Table 3.2 in Schedule 1 (as applicable).'.
__________________
12
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Part 5--Pay-roll Tax Act 1971
s. 10
See:
PART 5--PAY-ROLL TAX ACT 1971
Act No.
8154.
10. Reduction of pay-roll tax rates Reprint No. 10
as at
In section 7(1) of the Pay-roll Tax Act 1971-- 1 January
2004
(a) in paragraph (k)-- and
amending
Act Nos
(i) after "June 2003" insert "and before the
5 46/2004,
month of July 2006"; 71/2004,
36/2005 and
(ii) for "or (j)." substitute "or (j); and"; 24/2006.
LawToday:
(b) after paragraph (k) insert-- www.dms.
dpc.vic.
gov.au
"(l) at the rate of 515% in respect of such
of those wages as are paid or payable
10
after the month of June 2006 and before
the month of July 2007 and are not
liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f),
(g), (h), (i), (j) or (k); and
15
(m) at the rate of 505% in respect of such
of those wages as are paid or payable
after the month of June 2007 and before
the month of July 2008 and are not
liable to pay-roll tax at the rate
20
prescribed in paragraph (c), (d), (e), (f),
(g), (h), (i), (j), (k) or (l); and
(n) at the rate of 5% in respect of such of
those wages as are paid or payable after
the month of June 2008 and are not
25
liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f),
(g), (h), (i), (j), (k), (l) or (m).".
13
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
State Taxation (Reductions and Concessions) Act 2006
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
14
551481B.I1-30/5/2006 BILL LA INTRODUCTION 30/5/2006
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