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PARLIAMENT OF VICTORIA
State Taxation Acts (Tax Reform) Act 2004
Act No.
Victorian Legislation Parliamentary Documents
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purposes 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. Definitions 3
4. Land use entitlements 9
5. Value of dutiable property--pre-existing equitable interests 9
6. New sections 22A and 22B inserted 9
22A. Tenant's fixtures to be included in the value of land 9
22B. Interdependent sale of land and business goods 10
7. New section 50A inserted 12
50A. Conversion of land use entitlements to different form
of title 12
8. Eligible pensioner exemptions and concessions 13
9. New section 60A inserted 14
60A. Election to receive eligible pensioner
exemption/concession or additional first home owner
grant 14
10. New section 63A inserted 15
63A. Temporary suspension of first home owner exemption
or concession 15
11. New Part 6 of Chapter 2 inserted 16
PART 6--TAX AVOIDANCE SCHEMES 16
69A. Imposition of duty 16
69B. What is a tax avoidance scheme? 16
69C. Anti-avoidance provision 17
69D. Misleading information 18
12. New Parts 1 and 2 of Chapter 3 substituted 19
PART 1--INTRODUCTION AND OVERVIEW 19
70. Imposition of duty 19
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Clause Page
PART 2--ACQUISITION OF INTERESTS IN CERTAIN
LANDHOLDERS 19
Division 1--Landholders 19
71. Meaning of "landholder" 19
Victorian Legislation Parliamentary Documents
72. What are "land holdings"? 22
73. Effect of uncompleted agreements 22
74. Constructive ownership of land holdings and other
property: linked entities 23
75. Constructive ownership of land holdings and other
property: discretionary trusts 25
Division 2--Acquisitions of Interests in Landholders 26
76. What are "interests" and "significant interests" in
landholders? 26
77. How may an interest be "acquired"? 27
Division 3--Charging of Duty 28
78. When does a liability for duty arise? 28
79. What is a "relevant acquisition"? 28
80. Acquisition statements 31
81. When must duty be paid? 33
82. Who is liable to pay the duty? 33
83. How duty is charged on relevant acquisitions 34
84. Phasing-in of duty 36
Division 4--Exemptions, Concessions and Supplemental
Provisions 36
85. Exemptions 36
86. Maximisation of entitlements on distribution of
property 38
87. Valuation of property 39
88. Agreements for sale, transfer or purchase of land and
other property 40
89. Duty concession acquisitions securing financial
accommodation 42
89A. Re-purchase facilities--widely held trusts 43
89B. Disqualifying circumstances for certain unit trust
schemes 44
89C. Sale of private unit trust scheme through conversion to
public unit trust scheme 47
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Clause Page
Division 5--Conversion of Public Unit Trust Schemes to
Private Unit Trust Schemes 49
89D. Interpretation and application of Division 49
89E. When public unit trust scheme becomes a private unit
Victorian Legislation Parliamentary Documents
trust scheme 51
89F. Interstate security duty 52
Division 6--Tax Avoidance Schemes 52
89G. Imposition of duty 52
89H. What is a tax avoidance scheme? 53
89I. Anti-avoidance provision 54
89J. Misleading information 55
Division 7--Registration of Unit Trust Schemes 55
89K. Definitions 55
89L. Application for registration 57
89M. Registration of imminent public unit trust schemes 57
89N. Registration of declared public unit trust schemes 58
89O. Registration of wholesale unit trust schemes 59
89P. Registration of imminent wholesale unit trust schemes 60
89Q. Duration of registration 61
89R. Reporting requirements 62
89S. Cancellation of registration 62
13. New Part 5 inserted in Chapter 3 62
PART 5--ACQUISITION OF LAND USE
ENTITLEMENTS BY ALLOTMENT OF SHARES OR
ISSUE OF UNITS 62
103A. When does a liability for duty arise? 62
103B. When must duty be paid? 63
103C. Who is liable to pay the duty? 63
103D. Acquisition of land use entitlement 63
103E. Form of statement 63
103F. Assessment of duty 64
14. Consequential amendment 64
15. New section 273 substituted 64
273. Valuation of property 64
16. Transitional provisions 65
20. State Taxation Acts (Tax Reform) Act 2004 65
17. Further transitional provisions 66
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Clause Page
PART 3--FIRST HOME OWNER GRANT ACT 2000 68
18. Additional grant 68
19. New sections 46A and 46B inserted 69
46A. Temporary grant for certain home owners who are not
Victorian Legislation Parliamentary Documents
otherwise eligible for grant 69
46B. Commissioner may require information 69
PART 4--LAND TAX ACT 1958 71
20. New section 7A substituted 71
7A. Minimum assessment 71
21. Revised land tax rates and thresholds 71
PART 5--PAY-ROLL TAX ACT 1971 82
22. Definitions 82
23. Repeal of existing employment agent provisions 82
24. New Part II inserted 82
PART II--EMPLOYMENT AGENTS 82
4. Interpretation 82
5. Employment agents deemed to be employers of service
providers 83
5A. Agreement to reduce or avoid liability to pay-roll tax 85
25. Exemption for group training scheme wages 86
PART 6--TAXATION ADMINISTRATION ACT 1997 88
26. Objections concerning the valuation of property 88
ENDNOTES 89
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PARLIAMENT OF VICTORIA
Initiated in Assembly 11 May 2004
As amended by Assembly 3 June 2004
Victorian Legislation Parliamentary Documents
A BILL
to amend the Duties Act 2000, the First Home Owner Grant Act
2000, the Land Tax Act 1958, the Pay-roll Tax Act 1971 and the
Taxation Administration Act 1997 and for other purposes.
State Taxation Acts (Tax Reform) Act
2004
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purposes
The purposes of this Act are--
(a) to amend the Duties Act 2000--
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 1--Preliminary
s. 2
(i) to provide an increase in thresholds for
eligible pensioner exemptions and
concessions;
(ii) to introduce general anti-avoidance
Victorian Legislation Parliamentary Documents
provisions;
5
(iii) to reform the taxation of acquisitions of
interests in land-rich entities;
(iv) to extend the valuation provisions;
(b) to amend the First Home Owner Grant Act
2000 to increase the amount of the grant in
10
certain circumstances;
(c) to amend the Land Tax Act 1958 to revise
the rates of tax and tax thresholds;
(d) to amend the Pay-roll Tax Act 1971 with
respect to employment agent contracts;
15
(e) to amend the Taxation Administration Act
1997 regarding the valuation of property.
2. Commencement
(1) This Act (except Part 3, Part 5 and sections 3, 8, 9,
10, 12, 16 and 17) comes into operation on the
20
day after the day on which it receives the Royal
Assent.
(2) Part 3 and sections 8, 9, 10 and 16 are deemed to
have come into operation on 1 May 2004.
(3) Sections 3, 12 and 17 are deemed to have come
25
into operation on 13 May 2004.
(4) Part 5 comes into operation on 1 January 2005.
__________________
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 2--Duties Act 2000
s. 3
See:
PART 2--DUTIES ACT 2000
Act No.
79/2000.
3. Definitions Reprint No. 3
as at
Victorian Legislation Parliamentary Documents
(1) In section 3(1) of the Duties Act 2000, in the 1 July 2003
and
definition of "associated person"-- amending
Act No.
(a) for paragraph (c) substitute--
5 113/2003.
LawToday:
'(c) companies are associated persons if-- www.dms.
dpc.vic.
(i) there are minority shareholders gov.au
common to each company who, if
their interests were aggregated,
would be majority shareholders in
10
each company; or
(ii) any majority shareholder or
relative is a majority shareholder
in each company;
(ca) companies are associated persons if the
15
shares in the companies are "stapled",
in that they are unable to be traded
other than as if they together
represented a single security;';
(b) in paragraph (d), after "unit trust" insert
20
"scheme";
(c) for paragraph (e) substitute--
'(e) a company and a trustee are associated
persons if the company or a related
body corporate of the company is a
25
beneficiary of the trust (not including a
public unit trust scheme) of which the
trustee is a trustee;
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(f) a company and the trustee of a unit trust
scheme are associated persons if their
shares and units are "stapled", in that
they are unable to be traded other than
Victorian Legislation Parliamentary Documents
as if they together represented a single
5
security;
(g) trustees of unit trust schemes are
associated persons if the units in each
of the unit trust schemes are "stapled",
in that they are unable to be traded
10
other than as if they together
represented a single security;
(h) a qualified investor and a private
company are associated persons if the
qualified investor is a majority
15
shareholder in the private company;
(i) a qualified investor and the trustee of a
private unit trust scheme are associated
persons if the qualified investor holds
20% or more of the units in the private
20
unit trust scheme;';
(2) In section 3(1) of the Duties Act 2000--
(a) after the definition of "interest" insert--
' "interest" in a landholder has the meaning
given by section 76(1);';
25
(b) insert the following definitions--
' "land use entitlement" means an
entitlement to occupy land in Victoria
conferred through an ownership of
shares in a company or units in a unit
30
trust scheme, or a combination of a
shareholding or ownership of units
together with a lease or licence;
"linked entity" has the meaning given in
section 74;
35
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s. 3
"listed trust" means a unit trust scheme all
of the units in which are listed for
quotation on the Australian Stock
Exchange or any exchange of the
Victorian Legislation Parliamentary Documents
World Federation of Exchanges, and
5
are traded on that exchange;
"majority shareholder" in a company
means--
(a) in the case of a company the
shares in which are not divided
10
into classes--a person entitled to
not less than 50% of those shares;
and
(b) in the case of a company the
shares in which are divided into
15
classes--a person entitled to not
less than 50% of the shares in any
of those classes;
"minority shareholder" in a company,
means a shareholder in that company
20
who is not a majority shareholder;
"qualified investor" has the meaning given
in section 89K;
"registered declared public unit trust
scheme" means a unit trust scheme
25
declared as a public unit trust scheme
under Division 7 of Part 2 of Chapter 3;
"registered imminent public unit trust
scheme" means a unit trust scheme that
is registered as an imminent public unit
30
trust scheme under Division 7 of Part 2
of Chapter 3;
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s. 3
"trustee" of a unit trust scheme that is a
managed investment scheme,
includes--
(a) a responsible entity of the scheme;
Victorian Legislation Parliamentary Documents
and
5
(b) an agent appointed, or other
person engaged, by a responsible
entity of the scheme under
Part 5C.2 of the Corporations Act;
"wholesale unit trust scheme" means a unit
10
trust scheme that is registered under
Division 7 of Part 2 of Chapter 3 as a
wholesale unit trust scheme or an
imminent wholesale unit trust scheme;
"widely held trust" means a unit trust
15
scheme--
(a) that is a managed investment
scheme registered under Part 5C.1
of the Corporations Act; and
(b) in which units have been issued to
20
the public; and
(c) that has not less than 300 public
unit holders--
(i) each of whom is beneficially
entitled to the units and holds
25
at least the minimum
subscription under the
prospectus or product
disclosure statement; and
(ii) none of whom, individually
30
or together with any
associated person, is
beneficially entitled to more
than 20% of the units in the
scheme.';
35
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(c) in the definition of "managed investment
scheme" omit ", and includes a public unit
trust scheme";
(d) in the definition of "private company", for "a
Victorian Legislation Parliamentary Documents
recognised stock exchange" substitute "any
5
exchange of the World Federation of
Exchanges";
(e) the definition of "private corporation" is
repealed;
(f) for the definition of "private unit trust
10
scheme" substitute--
' "private unit trust scheme" means a unit
trust scheme that is not--
(a) a public unit trust scheme; or
(b) a wholesale unit trust scheme;';
15
(g) for the definition of "public unit trust
scheme" substitute--
' "public unit trust scheme" means any of
the following unit trust schemes--
(a) a listed trust;
20
(b) a widely held trust;
(c) a registered imminent public unit
trust scheme;
(d) a registered declared public unit
trust scheme--
25
but does not include a unit trust scheme
that is, or was at any time, a wholesale
unit trust scheme or eligible for
registration as such;';
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(h) in the definition of "recognised stock
exchange", in paragraph (a), for "Fédération
Internationale des Bourses de Valeurs"
substitute "World Federation of
Victorian Legislation Parliamentary Documents
Exchanges";
5
(i) in the definition of "related person"--
(i) in paragraphs (b) and (c) omit "private"
(wherever occurring);
(ii) in paragraph (d), for "public unit trust"
substitute "public unit trust scheme";
10
(iii) in paragraph (e), omit "private";
(iv) in paragraph (e), for "public unit trust"
substitute "public unit trust scheme";
(v) paragraph (f) is repealed;
(j) in the definition of "Victorian company", in
15
paragraph (b), for "Act." substitute "Act;".
(3) In section 3(1) of the Duties Act 2000, in the
definition of "unit"--
(a) in paragraph (b), for "interest;" substitute
"interest--";
20
(b) after paragraph (b) insert--
'and, for the purposes of the definitions of
"listed trust" and "widely held trust" and
Part 2 of Chapter 3, means a unit (within the
meaning of paragraph (a) or (b)) that entitles
25
the beneficiary to participate proportionately
with other unit holders in a distribution of
the property of the trust on its vesting;'.
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s. 4
4. Land use entitlements
In section 10(1) of the Duties Act 2000--
(a) in paragraph (a), after "following estates"
Victorian Legislation Parliamentary Documents
insert "or interests";
(b) after paragraph (a)(iv) insert--
5
"(v) a land use entitlement;";
(c) in paragraphs (d) and (f), after "estate"
(wherever occurring) insert "or interest".
5. Value of dutiable property--pre-existing equitable
interests
10
After section 22(2) of the Duties Act 2000
insert--
"(2A) A reference in sub-section (2) to an interest
includes a reference to an equitable interest
that--
15
(a) was created before the time of the
transfer of the land or goods; and
(b) is in existence at that time.".
6. New sections 22A and 22B inserted
After section 22 of the Duties Act 2000 insert--
20
'22A. Tenant's fixtures to be included in the
value of land
(1) In determining for the purposes of this Part
the unencumbered value of land, the value of
any tenant's fixtures on that land is to be
25
included in that value.
(2) However, the value of tenant's fixtures is not
to be included if the Commissioner is
satisfied that the fixtures are not sold or
transferred to the purchaser, the transferee of
30
the land or an associated person of the
purchaser or the transferee of the land.
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s. 6
(3) In this section--
"tenant's fixtures", in relation to land,
means fixtures on that land that, under
section 28 of the Landlord and
Victorian Legislation Parliamentary Documents
Tenant Act 1958, are the property of a
5
tenant.
22B. Interdependent sale of land and business
goods
(1) This section applies if--
(a) an estate or interest in land referred to
10
in section 10(1)(a) is transferred to a
person ("the land transferee") under a
contract of sale of land; and
(b) business goods relating to that land are
sold to another person ("the goods
15
transferee") under a contract of sale of
goods, or a contract of sale of a
business; and
(c) the land transferee and the goods
transferee are not associated persons;
20
and
(d) the Commissioner is satisfied that the
contract of sale referred to in paragraph
(a) and the contract of sale referred to
in paragraph (b) are not substantially
25
one transaction; and
(e) at least one of the contracts of sale
referred to in paragraph (a) and (b) is
conditional on the other.
(2) If this section applies--
30
(a) in determining the unencumbered value
of the land transferred to the land
transferee, the value of the business
goods is to be disregarded;
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(b) nothing in section 24 applies to the
transfer.
(3) However, if at any subsequent time the
business goods or any of them are transferred
Victorian Legislation Parliamentary Documents
to the land transferee or to an associated
5
person of the land transferee, the value of the
business goods transferred is deemed to have
formed part of the value of the land and duty
payable under this Part is to be assessed or
reassessed on that basis.
10
(4) Any duty payable because of the operation of
sub-section (3) is payable within 3 months
after the date on which the business goods
were transferred to the land transferee.
(5) Sub-section (3) does not apply if the
15
Commissioner is satisfied that--
(a) the land transferee acquired the
business goods at least 3 years after
acquiring the land; and
(b) the acquisition of the business goods by
20
the land transferee at a subsequent time
was not contemplated at the time of the
contract of sale of the land.
(6) In this section--
"business goods" means goods used in
25
connection with a business carried on
or in connection with land, other than
goods referred to in section 10(1)(d)(i),
(ii), (iii) or (iv).'.
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s. 7
7. New section 50A inserted
After section 50 of the Duties Act 2000 insert--
"50A. Conversion of land use entitlements to
Victorian Legislation Parliamentary Documents
different form of title
No duty is chargeable under this Chapter in
5
respect of the transfer of an estate in fee
simple in a lot on a registered plan of
subdivision within the meaning of the
Subdivision Act 1988 if--
(a) the transferee, immediately before
10
registration of the plan, held a land use
entitlement in respect of the land or part
of the land the subject of the plan; and
(b) the transfer is part of an arrangement
under which the transferee will take an
15
interest in the lot similar in effect to,
and in substitution for, the interest the
transferee held under the land use
entitlement immediately before the
registration of the plan; and
20
(c) either of the following applies--
(i) ad valorem duty was paid at the
time the land use entitlement was
acquired by the transferee; or
(ii) no duty was chargeable on the
25
acquisition of the land use
entitlement because of section 34,
36, 42 or 44.".
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s. 8
8. Eligible pensioner exemptions and concessions
(1) For section 59(1) of the Duties Act 2000
substitute--
Victorian Legislation Parliamentary Documents
"(1) An eligible pensioner is entitled to an
exemption from duty under this Chapter in
5
respect of a transfer to him or her of dutiable
property, being an estate in fee simple in
land, if--
(a) at the time of the transfer there is a
dwelling on the land; and
10
(b) the dutiable value of the dutiable
property does not exceed $250 000.".
(2) In section 59 of the Duties Act 2000--
(a) in sub-section (2)(b), for "150 000 but does
not exceed $200 000" substitute "250 000
15
but does not exceed $350 000";
(b) in sub-section (3), for the formula
substitute--
533P
"$37 310 - ".
5000
(3) For section 60(1) of the Duties Act 2000
20
substitute--
"(1) An eligible pensioner is entitled to an
exemption from duty under this Chapter in
respect of a transfer to him or her of dutiable
property, being an estate in fee simple in
25
land, if--
(a) at the time of the transfer there is not a
dwelling on the land; and
(b) a dwelling is constructed on the land
within 3 years after that time; and
30
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(c) the aggregate of the dutiable value of
the dutiable property and the cost of the
construction of the dwelling does not
exceed $250 000.".
Victorian Legislation Parliamentary Documents
(4) In section 60 of the Duties Act 2000--
5
(a) in sub-section (2)(c), for "150 000 but does
not exceed $200 000" substitute "250 000
but does not exceed $350 000";
(b) in sub-section (3), for the formula
substitute--
10
533($350 000 - P)
"D × ".
100(3P - $217 000)
9. New section 60A inserted
After section 60 of the Duties Act 2000 insert--
"60A. Election to receive eligible pensioner
exemption/concession or additional first
15
home owner grant
(1) This section applies to an eligible pensioner
who, but for this section or section 18(3) of
the First Home Owner Grant Act 2000,
would be entitled--
20
(a) to an exemption or concession from
duty under section 59 or 60 in respect
of a transfer of an estate in fee simple
in land; and
(b) to receive an amount under
25
section 18(2) of the First Home
Owner Grant Act 2000 in respect of
an eligible transaction (within the
meaning of that Act) relating to that
land.
30
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(2) The eligible pensioner, by notice in writing
to the Commissioner, must elect to receive--
(a) the exemption or concession under
section 59 or 60 (as the case requires)
Victorian Legislation Parliamentary Documents
in respect of the transfer; or
5
(b) the amount under section 18(2) of the
First Home Owner Grant Act 2000 in
respect of the eligible transaction.
(3) If the eligible pensioner elects to receive the
amount under section 18(2) of the First
10
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
under section 59 or 60 (as the case requires)
in respect of the transfer.
15
(4) Despite sub-section (3), if an eligible
pensioner would, but for that sub-section, be
entitled to an exemption or concession under
section 59 or 60, section 167 applies to the
home owner as if he or she were so
20
entitled.".
10. New section 63A inserted
After section 63 of the Duties Act 2000 insert--
"63A. Temporary suspension of first home
owner exemption or concession
25
(1) Nothing in this Division applies to a transfer
to an eligible first home owner of an estate in
fee simple in land if the contract for the
commencement date of the eligible
transaction is made on or after 1 May 2004
30
and before 1 July 2005.
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(2) Despite sub-section (1), if an eligible first
home owner referred to in that sub-section
would, but for that sub-section, be entitled to
an exemption or concession under this
Victorian Legislation Parliamentary Documents
Division, section 167 applies to the home
5
owner as if he or she were so entitled.".
11. New Part 6 of Chapter 2 inserted
After Part 5 of Chapter 2 of the Duties Act 2000
insert--
'PART 6--TAX AVOIDANCE SCHEMES
10
69A. Imposition of duty
(1) This Part imposes duty on a transaction in
respect of which duty would have been
chargeable under this Chapter but for a tax
avoidance scheme.
15
(2) Duty is payable at the time it would have
been payable but for the tax avoidance
scheme.
69B. What is a tax avoidance scheme?
(1) For the purposes of this Part, a "tax
20
avoidance scheme" is a scheme that directly
or indirectly--
(a) has tax avoidance as its purpose or
effect; or
(b) has tax avoidance as one of its purposes
25
or effects, if the purpose or effect of tax
avoidance is not merely incidental to
another purpose or effect of the
scheme--
whether the scheme had that effect at the
30
time that it was entered into, or only
subsequently.
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(2) In this section--
"scheme" includes the whole or any part
of--
Victorian Legislation Parliamentary Documents
(a) a contract, agreement,
arrangement, understanding,
5
promise or undertaking (including
all steps and transactions by which
it is carried into effect)--
(i) whether made or entered into
orally or in writing;
10
(ii) whether express or implied;
(iii) whether or not enforceable;
(b) a plan, proposal, action, course of
action or course of conduct,
whether or not unilateral;
15
(c) a trust;
"tax avoidance" means--
(a) an elimination or reduction in the
liability of a person for duty under
this Chapter;
20
(b) a postponement in the liability of a
person to pay duty under this
Chapter.
69C. Anti-avoidance provision
(1) If the Commissioner considers that a person
25
has participated in a tax avoidance scheme,
the Commissioner may--
(a) disregard the scheme; and
(b) determine what duty would have been
payable under this Chapter but for the
30
scheme; and
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(c) make an assessment or reassessment
under the Taxation Administration
Act 1997 of the tax liability of the
person or any other person to give
Victorian Legislation Parliamentary Documents
effect to that determination.
5
(2) A tax default occurs for the purposes of the
Taxation Administration Act 1997 if the
whole of any duty assessed or reassessed in
accordance with sub-section (1)(c) is not
paid to the Commissioner within 3 months
10
after liability for the duty arose.
69D. Misleading information
(1) This section applies to a person who is
employed or concerned in--
(a) the preparation of an instrument that
15
effects or evidences a dutiable
transaction; or
(b) the provision of any advice regarding
the form of a dutiable transaction.
(2) The person must not omit from, or fail to
20
include in, the instrument or in any material
presented to the Commissioner any fact or
circumstance affecting the liability of any
person for duty under this Chapter.
Penalty: 10 penalty units.'.
25
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12. New Parts 1 and 2 of Chapter 3 substituted
For Parts 1 and 2 of Chapter 3 of the Duties Act
2000 substitute--
Victorian Legislation Parliamentary Documents
'PART 1--INTRODUCTION AND OVERVIEW
70. Imposition of duty
5
This Chapter charges duty at the same rate as
for a transfer of dutiable property under
Chapter 2 on certain transactions which are
not dutiable transactions under Chapter 2.
10 Note: Duty is chargeable under Part 2 on the
acquisition by a person of certain interests in--
ˇ a private unit trust scheme; or
ˇ a wholesale unit trust scheme; or
ˇ a private company--
15 that has land holdings in Victoria with an
unencumbered value of $1 million or more and
the land holdings in all places of which
comprise 60% or more of the unencumbered
value of all its property.
20 The duty is chargeable at the general rate for a
dutiable transaction under Chapter 2.
Duty was chargeable under Parts 3 and 4 on
certain transactions occurring before 1 July
2002.
__________________
PART 2--ACQUISITION OF INTERESTS IN
25
CERTAIN LANDHOLDERS
Division 1--Landholders
71. Meaning of "landholder"
(1) For the purposes of this Part, a
"landholder" is any of the following that
30
has land holdings in Victoria--
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(a) a private unit trust scheme;
(b) a wholesale unit trust scheme;
(c) a private company.
Victorian Legislation Parliamentary Documents
(2) A landholder is "land rich" if--
(a) it has land holdings in Victoria with an
5
unencumbered value of $1 000 000 or
more; and
(b) its land holdings in all places, whether
within or outside Australia, comprise
60% or more of the unencumbered
10
value of all its property.
Note: As to what constitutes a land holding, see
section 72. As to ownership through linked
entities or discretionary trusts, see sections 74
15 and 75.
(3) In calculating the unencumbered value of the
property of a landholder for the purposes of
sub-section (2), property of any of the
following kinds is not counted--
(a) cash, whether in Australian or other
20
currency;
(b) money in an account at call or money
on deposit with any person, negotiable
instruments or debt securities;
(c) loans that, according to their terms, are
25
to be repaid on demand by the lender or
within 12 months after the date of the
loan;
(d) if the landholder is a unit trust scheme,
loans to beneficiaries of the scheme or
30
to persons who, in relation to any
trustee or beneficiary of the scheme, are
associated persons;
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(e) if the landholder is a private company,
loans to shareholders of the company or
to persons who, in relation to the
company or to a shareholder or director
Victorian Legislation Parliamentary Documents
of the company, are associated persons;
5
(f) land use entitlements;
(g) property consisting of units, shares or
any other interest in a linked entity
(other than in a linked entity whose
property is not counted because of
10
section 74(5));
(h) the deposit and amount due under an
agreement referred to in section 73;
(i) prescribed property, unless the
Commissioner, being satisfied that the
15
property concerned was not acquired
solely or mainly for the purpose of
avoiding duty under this Part, notifies
the landholder that the property will be
counted for the purposes of such a
20
calculation.
Note: "Associated person" and "land use entitlement"
are defined in section 3.
(4) In addition to sub-section (3), property is not
to be counted in calculating the
25
unencumbered value of all the property of a
landholder for the purposes of sub-
section (2) if the landholder is unable to
satisfy the Commissioner that the property
was obtained otherwise than to reduce, for
30
the purposes of this Part, the ratio of its land
holdings in all places, whether within or
outside Australia, to the unencumbered value
of all its property.
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(5) In determining whether or not a landholder is
land rich for the purposes of an acquisition
of an interest in the landholder by a person
from a lineal ancestor or lineal descendant,
Victorian Legislation Parliamentary Documents
the land holdings of the landholder are taken,
5
for the purposes of sub-section (2)(b) not to
include land held by the landholder that is
primarily used for primary production.
72. What are "land holdings"?
(1) For the purposes of this Part, a "land
10
holding" is an interest in land other than the
estate or interest of a mortgagee, chargee or
other secured creditor or a profit ŕ prendre.
(2) An interest in land, however--
(a) is not a land holding of a unit trust
15
scheme unless the interest is held by a
trustee of the scheme in the capacity of
trustee; and
(b) is not a land holding of a private
company unless the interest of the
20
private company in the land is a
beneficial interest.
(3) This section is in aid of, but does not limit,
the operation of any provision of this Part
providing for constructive ownership of
25
interests in land.
73. Effect of uncompleted agreements
(1) For the purposes of this Part, the transferor
and the transferee under an uncompleted
agreement for the transfer of land are taken
30
to be separately entitled to the whole of the
land.
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(2) For the purposes of this Part--
(a) if there is an uncompleted agreement
for the disposal of property other than
land, the agreement is taken to have
Victorian Legislation Parliamentary Documents
been completed; and
5
(b) if there is an uncompleted agreement
for the acquisition of property other
than land, the agreement is to be
disregarded.
10 Note: A refund may be payable in relation to the
completion or rescission of an agreement
referred to in this section--see section 88.
74. Constructive ownership of land holdings
and other property: linked entities
(1) For the purposes of this Part, a landholder
15
holds land or other property if the landholder
is entitled to it through a linked entity.
(2) Land or other property held because of sub-
section (1) is in addition to any land or other
property that the landholder holds in its own
20
right.
(3) The interest the landholder holds in land or
other property referred to in sub-section (1)
is the proportion of the land or other property
that the landholder would be entitled to
25
receive if all linked entities were to be
wound up as provided in sub-section (4).
(4) A landholder is entitled to land or other
property through linked entities, whether
linked to the landholder or to other entities
30
linked to the landholder or to each other, if,
on the winding up of all linked entities and
without having regard to any liabilities of the
linked entities, the landholder would receive
an interest in the land or other property held
35
by any of the linked entities.
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(5) However, land or other property of linked
entities is not counted for the purposes of
this Part unless at least 20% of it is received
by the landholder ultimately from linked
Victorian Legislation Parliamentary Documents
entities as provided by sub-section (4).
5
(6) The value, for duty purposes, of the interest
in land or other property that a landholder
holds through a linked entity because of sub-
section (1) is that portion of the
unencumbered value of the land or other
10
property to which the landholder would be
entitled (without regard to any liabilities of
the linked entities) if each linked entity were
to be wound up.
(7) In this section--
15
"linked entity" means any person or body,
corporate or unincorporated, that may
hold property in its own right or for the
benefit of any person, and includes a
trust but does not include--
20
(a) a natural person; or
(b) a public unit trust scheme or a
company whose shares are listed
on the Australian Stock Exchange
or an exchange of the World
25
Federation of Exchanges;
"winding up" of a linked entity includes
any means by which the entity's
property is divested in favour of the
persons entitled to it and, in the case of
30
a linked entity that is a trust, includes
the vesting of the trust property in the
beneficiaries.
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75. Constructive ownership of land holdings
and other property: discretionary trusts
(1) A person or a member of a class of persons
in whose favour, by the terms of a
Victorian Legislation Parliamentary Documents
discretionary trust, capital the subject of the
5
trust may be applied--
(a) in the event of the exercise of a power
or discretion in favour of the person or
class; or
(b) in the event that a discretion conferred
10
under the trust is not exercised--
is, for the purposes of this section, a
"beneficiary" of the trust.
(2) A beneficiary of a discretionary trust is taken
to own or to be otherwise entitled to the
15
property the subject of the trust, except to the
extent (if any) determined by the
Commissioner.
(3) For the purposes of this Part, any property
that is the subject of a discretionary trust is
20
taken to be the subject of any other
discretionary trust--
(a) that is; or
(b) any trustee of which (in the capacity of
trustee) is--
25
a beneficiary of it.
(4) Sub-section (3) extends to apply to property
that is the subject of a discretionary trust
only by the operation of that sub-section.
(5) Nothing in this section applies so that a
30
person is taken to own or be entitled to more
than 100% of the property the subject of a
trust.
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(6) In this section--
"person" includes a landholder and a linked
entity;
Victorian Legislation Parliamentary Documents
"property" includes land.
5 Note: "Discretionary trust" is defined in section 3.
Division 2--Acquisitions of Interests in
Landholders
76. What are "interests" and "significant
interests" in landholders?
(1) A person has an "interest" in a landholder if
10
the person has a beneficial entitlement
(otherwise than as a creditor or other person
to whom the landholder is liable), whether
directly or through another person, to a
distribution of property from the landholder
15
on a winding up of the landholder or
otherwise.
(2) A person who, by virtue of sub-section (1),
has an interest in a landholder has a
"significant interest" in the landholder if
20
the person, in the event of a distribution of
all the property of the landholder
immediately after the interest was acquired,
would be entitled to--
(a) in the case of a private unit trust
25
scheme--20% or more of the property
distributed; or
(b) in the case of a landholder other than a
private unit trust scheme--50% or
more of the property distributed.
30
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(3) In this section--
"person" includes a landholder;
"winding up" of a landholder that is a unit
Victorian Legislation Parliamentary Documents
trust scheme means the vesting of the
trust property in the beneficiaries.
5
Note: Section 86 is relevant to ascertaining a person's
entitlements on a distribution of property.
77. How may an interest be "acquired"?
(1) A person acquires an interest in a land rich
landholder if the person obtains an interest
10
beneficially, including if the person's interest
increases, in the landholder regardless of
how it is obtained or increased.
(2) Without limiting sub-section (1), a person
may acquire an interest in a land rich
15
landholder in the following ways--
(a) the purchase, gift, allotment or issue of
a unit or share;
(b) the cancellation, redemption or
surrender of a unit or share;
20
(c) the abrogation or alteration of a right
pertaining to a unit or share;
(d) the payment of an amount owing for a
unit or share.
(3) To remove any doubt, it is declared that an
25
acquisition by way of transfer of units or
shares is not necessary to acquire an interest
in a land rich landholder.
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Division 3--Charging of Duty
78. When does a liability for duty arise?
A liability for duty charged by this Part
Victorian Legislation Parliamentary Documents
arises when a relevant acquisition is made.
79. What is a "relevant acquisition"?
5
(1) For the purposes of this Part, a person makes
a relevant acquisition if--
(a) the person acquires an interest in a land
rich landholder--
(i) that is of itself a significant
10
interest in the landholder; or
(ii) that, when aggregated with other
interests in the landholder
acquired by the person or an
associated person of the person (or
15
both) on the same day or within
the 3 years preceding the
acquisition of the interest, results
in an aggregation that amounts to
a significant interest in the
20
landholder; or
(iii) that, when aggregated with other
interests in the landholder
acquired by the person or interests
acquired by any person in an
25
associated transaction (or both) on
the same day or within the 3 years
preceding the acquisition of the
interest, results in an aggregation
that amounts to a significant
30
interest in the landholder; or
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(b) after an interest referred to in
paragraph (a) was acquired in respect of
which duty was charged, the person or
an associated person acquires a further
Victorian Legislation Parliamentary Documents
interest in the landholder.
5
Note: "Associated person" is defined in section 3.
"Associated transaction" is defined in sub-
section (9).
(2) For the purposes of sub-section (1)(a)(ii)
or (b), a person is not an associated person of
10
another person if the Commissioner is
satisfied that the interests of the persons--
(a) were acquired, and will be used,
independently; and
(b) were not acquired, and will not be used,
15
for a common purpose.
(3) Sub-section (2) does not apply if the persons
are associated persons because they are
related bodies corporate.
(4) For the purposes of sub-section (1), if--
20
(a) a person acquires an interest in a land
rich landholder that is not a significant
interest (the "first acquisition"); and
(b) the person or an associated person (or
both) acquire another interest in the
25
landholder (the "subsequent
acquisition") later than 3 years after
the first acquisition but as a result of an
arrangement entered into within those
3 years--
30
the first acquisition, and any further
acquisitions by the person or an associated
person (or both) after the first acquisition but
before the subsequent acquisition, are taken
to have been made on the same day as the
35
subsequent acquisition.
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(5) Despite anything to the contrary in this Part,
if a person within a 3 year period acquires,
directly or indirectly, control over a land rich
landholder, other than by a relevant
Victorian Legislation Parliamentary Documents
acquisition dutiable under this Part, then on
5
the acquiring of that control the person is
taken, for the purposes of this Part to have
made a relevant acquisition of an interest in
the landholder of--
(a) 100%; or
10
(b) the lesser percentage determined by the
Commissioner to be appropriate in the
circumstances.
(6) For the purposes of sub-section (5), a person
acquires control over a landholder if they
15
acquire the capacity to determine or
influence the outcome or decisions about the
landholder's financial and operating policies,
taking into account--
(a) the practical influence the person can
20
exert in addition to any rights the
person can enforce; and
(b) any practice or behaviour affecting the
landholder's financial or operating
policies (even if that practice or pattern
25
of behaviour involves the breach of an
agreement or a breach of trust).
(7) Sub-section (5) applies regardless of interests
held by any other person in the landholder.
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(8) An interest in a landholder is not counted for
the purposes of this section if--
(a) the interest was acquired before
15 November 1987; or
Victorian Legislation Parliamentary Documents
(b) the interest was acquired at a time when
5
the landholder did not hold land in
Victoria; or
(c) the acquisition of the interest was an
exempt acquisition under section 85.
(9) In this section--
10
"associated transaction" in relation to the
acquisition of an interest in a
landholder by a person, means an
acquisition of an interest in the
landholder by another person in
15
circumstances in which--
(a) those persons are acting in
concert; or
(b) the acquisitions form, evidence,
give effect to or arise from
20
substantially one arrangement, one
transaction or one series of
transactions.
80. Acquisition statements
(1) If a relevant acquisition is made, either or
25
both the person who made the acquisition
and the landholder (or, if the landholder is a
unit trust scheme, the trustee of the
landholder) must prepare a statement (an
"acquisition statement") and lodge it with
30
the Commissioner within 3 months after the
date of the relevant acquisition.
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(2) The acquisition statement is to be prepared in
an approved form and must contain the
following information--
(a) the name and address of the person who
Victorian Legislation Parliamentary Documents
has acquired the interest;
5
(b) in relation to each interest acquired, the
date on which it was acquired and
whether it is an exempt acquisition;
(c) if the relevant acquisition results from
the aggregation of the interests of
10
associated persons, particulars of the
interests acquired by the person and any
associated persons on the date of the
relevant acquisition and within 3 years
before that date;
15
(d) if the relevant acquisition results from
the aggregation of the interests of
persons who acquired interests because
of section 79(1)(a)(iii), particulars of
the interests acquired by the person and
20
all other persons involved;
(e) particulars of the total interest of the
person and any associated person in the
landholder at that date;
(f) the unencumbered value of all land
25
holdings in Victoria of the landholder
as at the date of the relevant
acquisition;
(g) the unencumbered value of the property
of the landholder at the date of the
30
relevant acquisition;
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(h) any other information the
Commissioner may require.
Note: In ascertaining whether or not a liability to
lodge a statement under this section exists, it is
Victorian Legislation Parliamentary Documents
5 necessary to have regard to provisions of this
Part that deal with--
ˇ acquisition generally (section 77); and
ˇ acquisitions that are exempt from the
operation of this Part (section 85).
10 There is joint and several liability for the duty
as between the person lodging the acquisition
statement and others--see section 82.
81. When must duty be paid?
A tax default does not occur for the purposes
of the Taxation Administration Act 1997 if
15
duty is paid within 3 months after the
liability to pay the duty arises.
82. Who is liable to pay the duty?
(1) The following are jointly and severally liable
to pay duty chargeable under this Part--
20
(a) the person who makes the relevant
acquisition; and
(b) the landholder or, if the landholder is a
unit trust scheme, the trustee of the
landholder; and
25
(c) if the relevant acquisition results from
an aggregation of the interests of the
person referred to in paragraph (a) and
other persons--each of those other
persons.
30
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(2) A person, other than a person referred to in
sub-section (1)(c), may recover as a debt
from the person who made the relevant
acquisition or a person referred to in sub-
Victorian Legislation Parliamentary Documents
section (1)(c) the amount of any duty
5
chargeable under this Part and any penalty
paid by the first person in respect of that
duty.
83. How duty is charged on relevant
acquisitions
10
(1) Duty is chargeable, at the rate specified
under this Act for a transfer of dutiable
property, on the amount calculated by
multiplying the unencumbered value of all
land holdings of the landholder in Victoria
15
(calculated at the date of acquisition of the
interest acquired) by the proportion of that
value represented by the interest acquired in
the relevant acquisition.
(2) If the relevant acquisition is the acquisition
20
of a further interest as described in section
79(1)(b), duty is chargeable as follows--
(a) first, a calculation is to be made of the
duty that would be chargeable under
sub-section (1) if the further interest
25
were to be added to all interests
referred to in section 79(1)(a) ("the
prior interests");
(b) secondly, a calculation is to be made of
the duty chargeable under sub-section
30
(1) in respect of the prior interests;
(c) the duty chargeable on the acquisition
of the further interest is the amount
calculated under paragraph (a) less the
amount calculated under paragraph (b).
35
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(3) Duty payable under this section is to be
reduced by an amount (if any) calculated in
accordance with the following formula--
A
Victorian Legislation Parliamentary Documents
×C
B
where--
5
A is the unencumbered value of the land
holdings in Victoria of the landholder at
the time the relevant acquisition was
made; and
B is the unencumbered value of all
10
property of the landholder at that time;
and
C is the sum of--
(a) the duty under this Act paid or
payable at the rate applicable to
15
transactions involving marketable
securities, in respect of--
(i) a dutiable transaction in
relation to the units or
shares; or
20
(ii) a capital reduction or a rights
alteration under Part 3 by
which an interest in the
landholder was acquired; or
(iii) an allotment under Part 4 by
25
which an interest in the
landholder was acquired; and
(b) any duty of a like nature so paid or
payable under a law of another
Australian jurisdiction.
30
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(4) This section is subject to Division 4.
Note: In ascertaining the duty payable under this
section, it is necessary to have regard to
provisions of Division 4 of this Part that deal
Victorian Legislation Parliamentary Documents
5 with--
ˇ rescission of agreements for the sale or
transfer of land and other property
(section 88); and
ˇ acquisitions for securing financial
10 accommodation (section 89).
84. Phasing-in of duty
If the unencumbered value of land holdings
in Victoria of a landholder exceeds
$1 000 000 but does not exceed $1 500 000,
the duty chargeable under this Part is to be
15
calculated in accordance with the following
formula--
A - $1 000 000
×B
$500 000
where--
A is the unencumbered value of the land
20
holdings in Victoria of the landholder at
the time the relevant acquisition was
made; and
B is the duty that, apart from this section,
would be chargeable under this Part.
25
Division 4--Exemptions, Concessions and
Supplemental Provisions
85. Exemptions
(1) An acquisition by a person of an interest in a
landholder is an exempt acquisition--
30
(a) if the means by which the person
acquired the interest would have
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resulted in no ad valorem duty being
payable under Chapter 2 had the subject
of the acquisition been a transfer of the
land of the landholder to the person; or
Victorian Legislation Parliamentary Documents
(b) if the interest was acquired in the
5
person's capacity as--
(i) a receiver or trustee in
bankruptcy; or
(ii) a liquidator; or
(iii) an executor or administrator of the
10
estate of a deceased person; or
(c) if the interest was acquired solely as the
result of the making of a compromise
or arrangement with the landholder's
creditors under Part 5.1 of the
15
Corporations Act that has been
approved by the court, not being a
compromise or arrangement that the
Commissioner is satisfied was made
with the intention of defeating the
20
operation of this Part; or
(d) if the interest concerned is acquired
solely from a pro rata increase in the
interests of all unit holders or
shareholders.
25
(2) An acquisition by a person of an interest in a
landholder is an exempt acquisition if the
Commissioner so determines, being satisfied
that the application of this Part to the
acquisition in the particular case would not
30
be just and reasonable.
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86. Maximisation of entitlements on
distribution of property
(1) This section applies to any calculation, for
the purposes of this Part, of the entitlement
Victorian Legislation Parliamentary Documents
of a person (the "interested person") to
5
participate in a distribution of the property of
a landholder, whether on a winding up, a
vesting of trust property or otherwise.
(2) A calculation is to be made based, firstly, on
a distribution carried out in accordance with
10
the constitution of the landholder, and with
any law relevant to the distribution, as in
force at the time of distribution, and the
entitlement of the interested person is to be
evaluated accordingly.
15
(3) Next, a calculation is to be made based on a
distribution carried out after the interested
person, and any other person whom the
interested person has power to direct with
respect to such a distribution or who is, in
20
relation to the interested person, an
associated person, had exercised all powers
and discretions exercisable by them--
(a) to effect or compel an alteration to the
constitution of the landholder; and
25
(b) to vary the rights conferred by units or
shares in the landholder; and
(c) to effect or compel the substitution or
replacement of units or shares in the
landholder with other units or shares in
30
it--
in such a manner as would maximise the
value of the entitlement, and the entitlement
of the interested person is to be evaluated
accordingly.
35
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(4) The results obtained by an evaluation of the
interested person's entitlement in accordance
with sub-sections (2) and (3) are then to be
compared, and whichever evaluation results
Victorian Legislation Parliamentary Documents
in a greater entitlement is the correct
5
evaluation, for the purposes of this Part, of
the entitlement, unless the Commissioner,
being satisfied that the application of this
sub-section in the particular case would be
inequitable, determines otherwise.
10
(5) A reference in this section to the constitution
of a landholder is a reference, if the
landholder is a unit trust scheme, to the trust
deed or other document that contains the
rules of the trust.
15
87. Valuation of property
(1) The provisions of this Act for ascertaining
the value of transfers chargeable with ad
valorem duty apply in the same way to an
acquisition statement under this Part and the
20
value of land holdings mentioned in it.
(2) In determining the value of land holdings
under this Part, any arrangement made in
respect of the land holdings that has the
effect of reducing the value is to be
25
disregarded, subject to sub-section (3).
(3) An arrangement is not to be disregarded if
the Commissioner is satisfied that the
arrangement was not made as part of an
arrangement or scheme with a collateral
30
purpose of reducing the duty otherwise
payable in relation to the relevant
acquisition.
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(4) In considering whether or not he or she is
satisfied for the purposes of sub-section (3),
the Commissioner may have regard to--
(a) the duration of the arrangement before
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the relevant acquisition; and
5
(b) whether the arrangement has been
made with an associated person; and
(c) whether there is any commercial
efficacy to the making of the
arrangement other than to reduce duty;
10
and
(d) any other matters the Commissioner
considers relevant.
88. Agreements for sale, transfer or purchase
of land and other property
15
(1) If--
(a) at the time of acquisition of an interest
by any person in a land rich landholder
that necessitates the lodgement of an
acquisition statement under Division 3,
20
the landholder was the vendor under an
uncompleted agreement for the sale or
transfer of land; and
(b) the agreement is subsequently
completed--
25
the Commissioner is to determine whether or
not duty is payable, and must assess or
reassess the statement accordingly, as though
the land the subject of the agreement was
not, at the time of the acquisition concerned,
30
a land holding of the landholder.
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(2) If--
(a) at the time of acquisition of an interest
by any person in a land rich landholder
that necessitates the lodgement of an
Victorian Legislation Parliamentary Documents
acquisition statement under Division 3,
5
the landholder was the purchaser under
an uncompleted agreement for the
purchase of property other than land;
and
(b) the agreement is subsequently
10
completed--
the Commissioner is to determine whether or
not duty is payable, and must assess or
reassess the statement accordingly, as though
the property the subject of the agreement
15
was, at the time of the acquisition concerned,
property of the landholder.
(3) If--
(a) at the time of acquisition of an interest
by any person in a land rich landholder
20
that requires the lodgement by any
person of an acquisition statement
under Division 3, the landholder was
the purchaser under an uncompleted
agreement for the sale or transfer of
25
land; and
(b) the agreement is subsequently
rescinded, annulled or otherwise
terminated without completion--
the Commissioner is to determine whether or
30
not duty is payable, and must assess or
reassess the statement accordingly, as though
the land the subject of the agreement was
not, at the time of the acquisition concerned,
a land holding of the landholder.
35
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(4) If--
(a) at the time of acquisition of an interest
by any person in a land rich landholder
that requires the lodgement by any
Victorian Legislation Parliamentary Documents
person of an acquisition statement
5
under Division 3, the landholder was
the vendor under an uncompleted
agreement for the sale of property other
than land; and
(b) the agreement is subsequently
10
rescinded, annulled or otherwise
terminated without completion--
the Commissioner is to determine whether or
not duty is payable, and must assess or
reassess the statement accordingly, as though
15
the property the subject of the agreement
was, at the time of the acquisition concerned,
property of the landholder.
(5) In this section, a reference to a
"landholder" includes a reference to a
20
linked entity of the landholder and, in the
case of a landholder that is a unit trust
scheme, also includes a reference to a trustee
of the landholder.
89. Duty concession acquisitions securing
25
financial accommodation
(1) Except as provided by sub-section (2), an
acquisition statement is not chargeable with
duty insofar as it relates to an acquisition
if--
30
(a) the person lodging the statement
informs the Commissioner at the time
of lodgement that the acquisition is
effected for the purpose of securing
financial accommodation; and
35
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(b) the Commissioner is satisfied that the
acquisition is effected for that purpose.
(2) The statement is chargeable with duty at the
expiration of the period of 5 years after the
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date of the acquisition (or such longer period
5
as may be determined by the Commissioner
in the particular case) if the interest
concerned is not--
(a) re-acquired by the person from whom it
was acquired; or
10
(b) in the case of an acquisition by way of
mortgage, conveyed by the mortgagee
to a third person in exercise of the
mortgagee's power of sale, within that
period (or that longer period).
15
(3) The re-acquisition by a person of the interest
concerned is not a relevant acquisition for
the purposes of this Part.
89A. Re-purchase facilities--widely held trusts
(1) This section applies if--
20
(a) the trustee of a unit trust scheme that is
a widely held trust redeems any units in
the trust; and
(b) the redemption is done for the purpose
of re-issuing or re-offering the units for
25
sale; and
(c) as a result of the redemption, the
scheme would, but for this section,
cease to be a widely held trust because
a unit holder, individually or together
30
with any associated person, is
beneficially entitled to more than 20%
of the units in the trust.
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(2) For a period of 30 days beginning on and
including the day on which the redemption
occurs, the definition of "widely held trust"
in section 3(1) applies to the unit trust
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scheme as if a reference in paragraph (c)(ii)
5
of that definition to 20% were a reference
to 25%.
(3) However, if at the end of the 30-day period
beginning on and including the day on which
the redemption occurs, a unit holder,
10
individually or together with any associated
person, is beneficially entitled to more than
20% of the units in the unit trust scheme--
(a) the definition of "widely held trust" in
section 3(1) is taken to have applied to
15
the unit trust scheme during that period
as if sub-section (2) had not been
enacted; and
(b) the Commissioner must determine
whether any duty is chargeable under
20
this Act as a result of the operation of
paragraph (a) and if so, must assess that
duty; and
(c) a tax default occurs for the purposes of
the Taxation Administration Act
25
1997 if the whole of any duty assessed
under paragraph (b) is not paid to the
Commissioner within 3 months after
liability for the duty arose.
89B. Disqualifying circumstances for certain
30
unit trust schemes
(1) In this section, "disqualifying
circumstance" means a circumstance that
causes a unit trust scheme that is registered
under Division 7 to cease to meet the
35
relevant criteria for registration.
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(2) If a disqualifying circumstance occurs in
respect of a unit trust scheme--
(a) the trustee of the unit trust scheme must
give the Commissioner notice of the
Victorian Legislation Parliamentary Documents
disqualifying circumstance within
5
28 days after it occurs; and
(b) the unit trust scheme is taken to have
been a private unit trust scheme from
and including the relevant date; and
(c) if an acquisition of a significant interest
10
was made on or after the relevant date it
becomes a relevant acquisition; and
(d) the Commissioner must make an
assessment of duty chargeable under
this Act as a result of the operation of
15
paragraphs (b) and (c); and
(e) a tax default occurs for the purposes of
the Taxation Administration Act
1997 if the whole of any duty assessed
under paragraph (d) is not paid to the
20
Commissioner within 3 months after
liability for the duty arose.
(3) The trustee of a unit trust scheme must not
fail to comply with sub-section (2)(a).
Penalty: 10 penalty units.
25
(4) If--
(a) a disqualifying circumstance occurs in
relation to a unit trust scheme; and
(b) the trustee of the unit trust scheme fails
to comply with sub-section (2)(a); and
30
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(c) duty is assessed under this Part as a
result of the disqualifying
circumstance--
the trustee of the unit trust scheme is liable to
Victorian Legislation Parliamentary Documents
pay to the Commissioner, by way of penalty,
5
an amount equal to double the amount of
duty assessed as a result of the disqualifying
circumstance, less any amount of duty that
the trustee or any other person did pay.
(5) A penalty imposed by sub-section (4) is in
10
addition to any penalty imposed for
contravention of sub-section (3) by the
trustee.
(6) The Commissioner, in such circumstances as
the Commissioner considers appropriate,
15
may remit the penalty imposed by sub-
section (4) by any amount.
(7) In this section--
"relevant date" means--
(a) if the disqualifying circumstance
20
is a circumstance that causes a
registered imminent public unit
trust scheme to cease to meet the
criteria set out in section
89M(2)(a)--the date on which the
25
12 month period referred to in that
section began;
(b) if the disqualifying circumstance
is a circumstance that causes a
registered imminent wholesale
30
unit trust scheme to cease to meet
the criteria set out in section
89P(2)(a)--the date on which the
12 month period referred to in that
section began;
35
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(c) in any other case--the date the
disqualifying circumstance
occurred.
89C. Sale of private unit trust scheme through
Victorian Legislation Parliamentary Documents
conversion to public unit trust scheme
5
(1) This section applies if--
(a) a land rich landholder that is a private
unit trust scheme becomes, through
whatever means, a public unit trust
scheme; and
10
(b) under an agreement or arrangement
made before the scheme becomes a
public unit trust scheme--
(i) a payment is made to or on behalf
of any person who held units in
15
the private unit trust scheme in
respect of 20% or more of that
person's interest in the private unit
trust scheme immediately before
the agreement or arrangement was
20
made; or
(ii) a person referred to in sub-
paragraph (i) ceases to hold an
interest in the public unit trust
scheme that is relevant to an
25
interest of at least 20% in the
private unit trust scheme
immediately before the agreement
or arrangement was made
(whether as a consequence of a
30
payment referred to in that sub-
paragraph or otherwise).
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(2) On a payment referred to in sub-
section (1)(b)(i) being made or on a person
ceasing to hold an interest referred to in sub-
section (1)(b)(ii)--
Victorian Legislation Parliamentary Documents
(a) the unit trust scheme is taken, for the
5
purposes of this Part, to have always
been a private unit trust scheme; and
(b) all acquisitions of the interests of
persons referred to in sub-section
(1)(b)(i) are taken to have been a single
10
acquisition of an interest in the private
unit trust scheme; and
(c) the Commissioner must make an
assessment of duty chargeable under
this Act (if any) as a result of the
15
operation of paragraphs (a) and (b); and
(d) a tax default occurs for the purposes of
the Taxation Administration Act
1997 if the whole of any duty assessed
under paragraph (c) is not paid to the
20
Commissioner within 3 months after
liability for the duty arose.
(3) In determining whether a person has a
significant interest in the unit trust scheme,
the only interests to be taken into account are
25
those that existed immediately before the
agreement or arrangement referred to in sub-
section (1)(b) was made.
(4) Despite anything to the contrary in
Division 1 of Part 2 of Chapter 11, nothing
30
to which this section applies is capable of
being an eligible transaction for the purposes
of that Division.
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Division 5--Conversion of Public Unit Trust
Schemes to Private Unit Trust Schemes
89D. Interpretation and application of Division
Victorian Legislation Parliamentary Documents
(1) In this Division--
"aggregated acquisitions" means--
5
(a) a transitional acquisition; and
(b) an acquisition by an associated
person of the person who made
the transitional acquisition; and
(c) an acquisition by any person made
10
in response to or in accordance
with the offer or agreement that
resulted in the transitional
acquisition; and
(d) an acquisition by the person who
15
made the transitional acquisition
or by an associated person of that
person, made within 6 months
before the making of the offer or
agreement that resulted in the
20
transitional acquisition; and
(e) an acquisition by the person who
made the transitional acquisition
or by an associated person of that
person, made within 6 months
25
after the expiry of the offer or
agreement that resulted in the
transitional acquisition;
"offer" includes invitation;
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"relevant unitholder" in a unit trust scheme
means a unitholder--
(a) who is beneficially entitled to
units and holds at least the
Victorian Legislation Parliamentary Documents
minimum subscription under the
5
prospectus or product disclosure
statement; and
(b) who, individually or together with
any associated person, is
beneficially entitled to not more
10
than 20% of the units in the
scheme;
"transitional acquisition" means an
acquisition by a person of units in a unit
trust scheme that, immediately before
15
the acquisition was a public unit trust
scheme--
(a) made in response to or in
accordance with an offer or
arrangement; and
20
(b) that by itself, or when aggregated
with acquisitions made by an
associated person, results in the
unit trust scheme becoming a
private unit trust scheme.
25
(2) Despite anything to the contrary in section 3,
for the purposes of this Division (and for
determining whether duty is payable under
this Part on an acquisition referred to in this
Division) a public unit trust scheme that is a
30
listed trust is deemed to become a private
unit trust scheme when the number of
relevant unitholders falls below 300.
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(3) Nothing in this Division applies to a public
unit trust scheme that is a listed trust all the
units in which have been listed for quotation
on the Australian Stock Exchange or an
Victorian Legislation Parliamentary Documents
exchange of the World Federation of
5
Exchanges for 3 years or more.
89E. When public unit trust scheme becomes a
private unit trust scheme
(1) Subject to sub-section (2), if, as a result of
the acquisition of one or more units in a unit
10
trust scheme that, immediately before the
acquisition, was a public unit trust scheme,
the scheme becomes a private unit trust
scheme, the scheme is taken to have become
a private unit trust scheme immediately
15
before that acquisition.
(2) If a transitional acquisition in a public unit
trust scheme is made, the scheme is taken to
have become a private unit trust scheme
immediately before the first of the
20
aggregated acquisitions.
(3) In determining for the purposes of this Part
whether a person makes a relevant
acquisition, the aggregated acquisitions are
together taken to form one acquisition made
25
by the person or an associated person at the
time of the last of those acquisitions.
(4) If the Commissioner is satisfied that an
acquisition that would otherwise form part of
the aggregated acquisitions is not made for a
30
common purpose, the Commissioner is to
treat that acquisition as not forming part of
the aggregated acquisitions.
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89F. Interstate security duty
(1) If interstate security duty has been paid in
respect of any acquisition forming part of the
aggregated acquisitions, the amount of the
Victorian Legislation Parliamentary Documents
aggregated duty that is attributable to the
5
aggregated acquisitions is to be reduced by
the same proportion of the interstate security
duty as the value of the land holdings of the
landholder in Victoria bears to the aggregate
value of all land holdings of the landholder.
10
(2) In sub-section (1)--
"aggregated duty" means duty that is
chargeable under this Part because of
section 89E in respect of the aggregated
acquisitions;
15
"interstate security duty" means duty
chargeable in another State or a
Territory on a transfer of any
marketable security or right in respect
of shares.
20
Division 6--Tax Avoidance Schemes
89G. Imposition of duty
(1) This Division imposes duty on an acquisition
in respect of which duty would have been
chargeable under this Part but for a tax
25
avoidance scheme.
(2) Duty is payable at the time it would have
been payable but for the tax avoidance
scheme.
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89H. What is a tax avoidance scheme?
(1) For the purposes of this Division, a "tax
avoidance scheme" is a scheme that--
Victorian Legislation Parliamentary Documents
(a) directly or indirectly has tax avoidance
as its purpose or effect; or
5
(b) directly or indirectly has tax avoidance
as one of its purposes or effects, if the
purpose or effect of tax avoidance is
not merely incidental to another
purpose or effect of the scheme--
10
whether the scheme had that effect at the
time that it was entered into, or only
subsequently.
(2) In this Division--
"scheme" includes the whole or any part
15
of--
(a) a contract, agreement,
arrangement, understanding,
promise or undertaking (including
all steps and transactions by which
20
it is carried into effect)--
(i) whether made or entered into
orally or in writing;
(ii) whether express or implied;
(iii) whether or not enforceable;
25
(b) a plan, proposal, action, course of
action or course of conduct,
whether or not unilateral;
(c) a trust;
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"tax avoidance" means--
(a) an elimination or reduction in the
liability of a person for duty under
this Part;
Victorian Legislation Parliamentary Documents
(b) a postponement in the liability of a
5
person to pay duty under this Part.
89I. Anti-avoidance provision
(1) If the Commissioner considers that a person
has participated in a tax avoidance scheme,
the Commissioner may--
10
(a) disregard the scheme; and
(b) determine what duty would have been
payable under this Part but for the
scheme; and
(c) make an assessment or reassessment
15
under the Taxation Administration
Act 1997 of the tax liability of the
person or any other person to give
effect to that determination.
(2) For the purposes of making a determination
20
under sub-section (1), the Commissioner
may--
(a) deem a company or a unit trust scheme
to be a landholder of a particular class;
(b) deem a landholder (or, if the landholder
25
is a unit trust scheme, the trustee of the
scheme) to hold land, and determine the
extent of that landholding;
(c) deem a landholder to be land-rich;
(d) deem a relevant acquisition to have
30
been made by any person and
determine the extent of that interest;
(e) determine the value of any land.
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(3) Nothing in sub-section (2) limits the powers
of the Commissioner to make a
determination under sub-section (1).
(4) A tax default occurs for the purposes of the
Victorian Legislation Parliamentary Documents
Taxation Administration Act 1997 if the
5
whole of any duty assessed or reassessed in
accordance with sub-section (1)(c) is not
paid to the Commissioner within 3 months
after liability for the duty arose.
89J. Misleading information
10
(1) This section applies to a person who is
employed or concerned in--
(a) the preparation of an instrument in
relation to the acquisition of an interest
in a landholder; or
15
(b) the provision of advice in relation to the
acquisition of an interest in a
landholder; or
(c) the conduct of the acquisition of an
interest in a landholder.
20
(2) The person must not omit from, or fail to
include in, the instrument or in any material
presented to the Commissioner any fact or
circumstance affecting the liability of any
person for duty under this Part.
25
Penalty: 10 penalty units.
Division 7--Registration of Unit Trust Schemes
89K. Definitions
(1) In this Division--
"qualified investor" in a unit trust scheme,
30
means a person who holds units in the
unit trust scheme in any of the
following capacities--
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(a) as trustee of a complying
superannuation fund that has no
less than 300 members;
(b) as trustee of a complying
Victorian Legislation Parliamentary Documents
approved deposit fund that has no
5
less than 300 members;
(c) as trustee of a pooled
superannuation trust;
(d) as trustee of a public unit trust
scheme;
10
(e) as a life company, if its holding of
the units in the unit trust scheme is
an investment of a statutory fund
maintained by it under the Life
Insurance Act 1995 of the
15
Commonwealth;
(f) as an agent for a trustee or life
company referred to in any of the
preceding paragraphs in its
capacity as such an agent;
20
(g) as the trustee of a wholesale unit
trust scheme;
(h) in a capacity approved by the
Commissioner under sub-
section (3).
25
(2) For the purposes of paragraph (e) of the
definition of "qualified investor" in sub-
section (1), the holding of units by a life
company by way of an investment of a
statutory fund of the life company is taken to
30
be a holding of units by the life company in a
separate capacity from a holding of units by
the life company by way of investment of
another statutory fund of the life company.
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(3) The Commissioner may approve a capacity
to be a capacity for the purposes of
paragraph (h) of the definition of "qualified
investor" in sub-section (1) if satisfied that
Victorian Legislation Parliamentary Documents
the capacity corresponds to a capacity
5
referred to in paragraph (a), (b), (c), (d), (e)
or (f) under the law of an external Territory
or of a country outside Australia.
89L. Application for registration
(1) The trustee of a unit trust scheme may apply
10
to the Commissioner for registration of the
scheme as--
(a) an imminent public unit trust scheme;
or
(b) a declared public unit trust scheme; or
15
(c) a wholesale unit trust scheme; or
(d) an imminent wholesale unit trust
scheme.
(2) An application must be accompanied by a
statement in an approved form made by the
20
applicant.
(3) In considering an application for registration
under this Division, the Commissioner may
take into account any matter he or she
considers relevant.
25
89M. Registration of imminent public unit trust
schemes
(1) On application by the trustee of a unit trust
scheme, the Commissioner may register the
unit trust scheme as an imminent public unit
30
trust scheme if the Commissioner is satisfied
that the scheme meets the criteria for
registration as an imminent public unit trust
scheme.
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(2) The criteria for registration as an imminent
public unit trust scheme are that--
(a) the unit trust scheme will become a
listed trust or a widely held trust within
Victorian Legislation Parliamentary Documents
12 months after the later of--
5
(i) the day on which the first units in
the scheme were issued; and
(ii) the date of the prospectus or
product disclosure statement for
the offer of units to the public; and
10
(b) units issued in the scheme before the
scheme becomes a listed trust or widely
held trust have been or will be issued
only for the purpose of the scheme
becoming a listed trust or a widely held
15
trust; and
(c) 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.
89N. Registration of declared public unit trust
schemes
(1) On application by the trustee of a unit trust
scheme, the Commissioner may register the
25
unit trust scheme as a declared public unit
trust scheme if the Commissioner is satisfied
that the scheme meets the criteria for
registration as a declared public unit trust
scheme.
30
(2) The criteria for registration as a declared
public unit trust scheme are--
(a) the scheme should be registered as a
declared public unit trust scheme; and
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(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
Victorian Legislation Parliamentary Documents
chargeable under this Part.
5
89O. Registration of wholesale unit trust
schemes
(1) On application by the trustee of a unit trust
scheme, the Commissioner may register the
unit trust scheme as a wholesale unit trust
10
scheme if the Commissioner is satisfied that
the scheme meets the criteria for registration
as a wholesale unit trust scheme.
(2) The criteria for registration as a wholesale
unit trust scheme are--
15
(a) the scheme was not established for a
particular investor; and
(b) either--
(i) the trustee of the scheme, as
trustee, holds directly or indirectly
20
an interest in not less than
3 parcels of land (whether in or
outside Victoria), and at least 2 of
those interests each have an
unencumbered value of
25
$10 000 000 or more; or
(ii) at least 6 of the unit holders in the
scheme who are not associated
persons each have a subscription
under the scheme of not less than
30
$3 000 000; and
(c) not less than 80% of the units in the
scheme are held by qualified investors;
and
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(d) no qualified investor, either alone or
together with associated persons, holds
50% or more of the units in the scheme;
and
Victorian Legislation Parliamentary Documents
(e) registration is not being sought for the
5
purpose of, or as part of a scheme or
arrangement with a collateral purpose
of, avoiding or reducing duty otherwise
chargeable under this Part.
(3) For the purposes of sub-section (2)(b)(i), the
10
Commissioner may treat 2 or more parcels of
land as a single parcel of land if he or she is
satisfied that it is appropriate to do so,
having regard to--
(a) the ownership of the parcels of land;
15
and
(b) the proximity of the parcels of land;
and
(c) the use of the parcels of land; and
(d) any other matter the Commissioner
20
considers to be relevant.
89P. Registration of imminent wholesale unit
trust schemes
(1) On application by the trustee of a unit trust
scheme, the Commissioner may register the
25
unit trust scheme as an imminent wholesale
unit trust scheme if the Commissioner is
satisfied that the scheme meets the criteria
for registration as an imminent wholesale
unit trust scheme.
30
(2) The criteria for registration as an imminent
wholesale unit trust scheme are--
(a) the unit trust scheme will meet the
criteria for registration as a wholesale
unit trust scheme within 12 months
35
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after the day on which the first units in
the scheme were issued to a qualified
investor; and
(b) units issued in the scheme before the
Victorian Legislation Parliamentary Documents
scheme meets the criteria for
5
registration as a wholesale unit trust
scheme have been or will be issued
only for the purpose of the scheme
meeting those criteria; and
(c) registration is not being sought for the
10
purpose of, or as part of a scheme or
arrangement with a collateral purpose
of, avoiding or reducing duty otherwise
chargeable under this Part.
89Q. Duration of registration
15
(1) Registration of a unit trust scheme under this
Division takes effect on the day specified by
the Commissioner in respect of the scheme,
which may be a day occurring before the day
on which registration is granted.
20
(2) Unless cancelled earlier, the duration of
registration under this Division is--
(a) 3 years for a registered declared public
unit trust scheme or wholesale unit trust
scheme;
25
(b) 12 months for a registered imminent
public unit trust scheme or imminent
wholesale unit trust scheme.
(3) Registration of a unit trust scheme under this
Division may be renewed on application
30
made under section 89L.
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89R. Reporting requirements
(1) As a condition of registration under this
Division, the Commissioner may impose
requirements on the trustee of the registered
Victorian Legislation Parliamentary Documents
scheme to give the Commissioner
5
information specified by the Commissioner
about the scheme at the times required by the
Commissioner.
(2) Requirements may be imposed under sub-
section (1) at the time of registration or at
10
any subsequent time.
89S. Cancellation of registration
(1) The Commissioner may cancel the
registration of a unit trust scheme at any time
if the Commissioner is satisfied that a
15
disqualifying circumstance within the
meaning of section 89B has occurred in
respect of that scheme.
(2) The Commissioner cancels the registration of
a unit trust scheme by giving written notice
20
of cancellation to the trustee of the scheme
including the reasons for the cancellation.'.
13. New Part 5 inserted in Chapter 3
After Part 4 of Chapter 3 of the Duties Act 2000
insert--
25
'PART 5--ACQUISITION OF LAND USE
ENTITLEMENTS BY ALLOTMENT OF
SHARES OR ISSUE OF UNITS
103A. When does a liability for duty arise?
A liability for duty charged by this Part
30
arises when a land use entitlement is
acquired by an allotment of shares or an
issue of units to any person.
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103B. When must duty be paid?
A tax default does not occur for the purposes
of the Taxation Administration Act 1997 if
duty is paid within 3 months after the
Victorian Legislation Parliamentary Documents
liability to pay the duty arises.
5
103C. Who is liable to pay the duty?
Duty chargeable under this Part is payable by
the person who acquires the land use
entitlement.
103D. Acquisition of land use entitlement
10
(1) A person who acquires a land use entitlement
by an allotment of shares or an issue of units
must lodge a statement (an "acquisition
statement") with the Commissioner in
respect of the entitlement.
15
(2) The statement must be lodged within
3 months after the entitlement is so acquired.
103E. Form of statement
An acquisition statement required to be
lodged by a person is to be in an approved
20
form and is to contain the following
information--
(a) the name and address of the person; and
(b) the name of the relevant company or
unit trust scheme; and
25
(c) the date on which the land use
entitlement was acquired; and
(d) the consideration paid for the relevant
shares or units; and
(e) any other information required by the
30
Commissioner for the purposes of this
Chapter.
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103F. Assessment of duty
The share allotment or unit issue by which a
person acquires a land use entitlement is
chargeable with duty at the general rate of
Victorian Legislation Parliamentary Documents
duty set out in section 28 on the dutiable
5
value of the land use entitlement.'.
14. Consequential amendment
At the end of the note at the foot of section 70 of
the Duties Act 2000 insert--
10 "Duty is charged under Part 5 on the allotment of units or
shares that confer a land use entitlement.".
15. New section 273 substituted
For section 273 of the Duties Act 2000
substitute--
"273. Valuation of property
15
(1) The Commissioner may require a person
who is liable to duty determined by reference
to the value of property to provide--
(a) a declaration by a competent valuer as
to the unencumbered value of the
20
property; or
(b) any other evidence of that value that the
Commissioner thinks fit.
(2) If--
(a) a taxpayer provides information to the
25
Commissioner as to the value of any
property that is relevant to an
assessment of duty (whether in
compliance with a requirement under
sub-section (1) or otherwise); and
30
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(b) the Commissioner considers that the
value of the property is understated--
the Commissioner may refer the matter to the
Valuer-General or another competent valuer
Victorian Legislation Parliamentary Documents
for valuation of the property.
5
(3) The taxpayer must pay the cost of a
valuation under sub-section (2) if--
(a) that valuation exceeds the valuation
provided by the taxpayer by 15% or
more; and
10
(b) the taxpayer does not object to the
assessment of duty based on the
valuation under sub-section (2) or, if
the taxpayer does object, the valuation
of the property as determined on
15
objection, appeal or review exceeds the
valuation provided by the taxpayer by
15% or more.".
16. Transitional provisions
In Schedule 2 to the Duties Act 2000, after
20
clause 19 insert--
"20. State Taxation Acts (Tax Reform) Act 2004
(1) Sections 59 and 60, as amended by section 8 of the
State Taxation Acts (Tax Reform) Act 2004, apply
25 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 made on or after
1 May 2004.
(2) Sections 59 and 60, as in force immediately before the
30 commencement of section 8 of the State Taxation
Acts (Tax Reform) Act 2004, continue to apply to a
transfer to an eligible pensioner of dutiable property
being an estate in fee simple in land after that
commencement if the contract of sale of the land was
35 made before 1 May 2004.".
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17. Further transitional provisions
After clause 20(2) of Schedule 2 to the Duties Act
2000 insert--
Victorian Legislation Parliamentary Documents
'(3) An acquisition by a person before the commencement
5 day of an interest in a unit trust scheme that was a
public unit trust scheme within the meaning of this
Act as in force immediately before the
commencement day is an exempt acquisition.
(4) If--
10 (a) a person who made an acquisition in a private
unit trust scheme before the commencement
day makes a relevant acquisition in the scheme
on or after the commencement day; and
(b) the aggregation of the relevant interests would
15 entitle the person, in the event of the
distribution of all the property of the scheme
immediately after the later or latest acquisition
was made, to 20% or more of the property
distributed but less than 50% of that property--
20 duty is chargeable under section 83 only in respect of
the relevant acquisition that occurred on or after the
commencement day.
(5) A reference in sub-clause (4) to a private unit trust
scheme is a reference to a scheme that--
25 (a) was a private unit trust scheme within the
meaning of this Act as in force immediately
before the commencement day; and
(b) continues to be a private unit trust scheme
within the meaning of this Act as in force on
30 and after the commencement day.
(6) This Act, as in force immediately before the
commencement day, continues to apply in respect of
any transactions occurring on or after that day that
resulted from a written agreement made before that
35 day.
(7) Without limiting sub-clause (6)--
(a) section 89C does not apply if the agreement or
arrangement referred to in section 89C(1)(b)
was made before the commencement day;
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(b) section 89E does not apply to or in relation to
an acquisition referred to in that section--
(i) made before the commencement day; or
(ii) made in response to an offer or invitation
Victorian Legislation Parliamentary Documents
5 made or arrangement entered into before
that day.
(8) In this clause--
"commencement day" means the day on which
section 12 of the State Taxation Acts (Tax
10 Reform) Act 2004 came into operation.'.
__________________
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Act No.
Part 3--First Home Owner Grant Act 2000
s. 18
See: PART 3--FIRST HOME OWNER GRANT ACT 2000
Act No.
5/2000.
18. Additional grant
Reprint No. 1
as at
Victorian Legislation Parliamentary Documents
At the end of section 18 of the First Home
1 January
2004.
Owner Grant Act 2000 insert--
LawToday:
www.dms.
'(2) Subject to sub-sections (3) and (4), an
5 dpc.vic.
additional amount of $5000 is payable if--
gov.au
(a) the commencement date of the eligible
transaction is on or after 1 May 2004
and before 1 July 2005; and
(b) the consideration for the eligible
10
transaction does not exceed $500 000.
(3) Sub-section (2) does not apply to the extent
that the amount of the first home owner grant
(including the additional amount referred to
in that sub-section) would exceed the
15
consideration for the eligible transaction.
(4) Sub-section (2) also does not apply if the
Commissioner is satisfied that the contract
that formed the basis of the eligible
transaction replaces a contract made before
20
1 May 2004 ("the earlier contract"), and
the earlier contract was--
(a) a contract for the purchase of the same
home; or
(b) a comprehensive home building
25
contract to build the same or a
substantially similar home.
(5) If an eligible pensioner (within the meaning
of the Duties Act 2000) to whom
section 60A(2) of that Act applies elects
30
under that section to receive an exemption or
concession under section 59 or 60 of that Act
in respect of a transfer of land, he or she is
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not entitled to any amount under sub-
section (2) of this section in respect of the
eligible transaction relating to that land.'.
19. New sections 46A and 46B inserted
Victorian Legislation Parliamentary Documents
After section 46 of the First Home Owner Grant
5
Act 2000 insert--
"46A. Temporary grant for certain home owners
who are not otherwise eligible for grant
(1) The Treasurer, on the advice of the
Commissioner, may pay an amount that is
10
the lesser of $5000 or the consideration paid
for the purchase to a person who--
(a) purchases land under a contract for sale
made on or after 1 May 2004 and
before 1 July 2005; and
15
(b) but for section 63A of the Duties Act
2000, would be entitled to an
exemption, concession or refund under
section 62 or 63 of that Act in respect
of the transfer of the land to the person;
20
and
(c) is not eligible for a first home owner
grant in respect of the purchase of the
land.
(2) The Consolidated Fund is appropriated to the
25
necessary extent for the purposes of sub-
section (1).
46B. Commissioner may require information
(1) For the purpose of determining whether to
advise the Treasurer to make a payment to a
30
person under section 46A, the Commissioner
may require the person--
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(a) to give the Commissioner any
information required by the
Commissioner; or
(b) to produce to the Commissioner any
Victorian Legislation Parliamentary Documents
document required by the
5
Commissioner.
(2) A person must not give any information or
produce any document under sub-section (1)
that is false or misleading in a material
particular.
10
Penalty: 60 penalty units.
(3) A person is not guilty of an offence against
sub-section (2) if the court hearing the
charge is satisfied that the person did not
know that the information or document was
15
false or misleading.".
__________________
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 4--Land Tax Act 1958
s. 20
See:
PART 4--LAND TAX ACT 1958
Act No.
6289.
20. New section 7A substituted Reprint No. 12
as at
Victorian Legislation Parliamentary Documents
For section 7A of the Land Tax Act 1958 13 June 2002
and
substitute-- amending
Act Nos
"7A. Minimum assessment
5 59/2003,
113/2003 and
(1) If the total amount of land tax payable under 3/2004.
LawToday:
this Act for a year after 2004 by an owner of www.dms.
land would, but for this section, be less than dpc.vic.
gov.au
$175, no land tax is payable for that year by
that owner.
10
(2) If the total amount of land tax payable under
this Act for a year after 2004 in respect of
transmission easements held by a
transmission easement holder would, but for
this section, be less than $150, no land tax is
15
payable for that year in respect of those
easements by that easement holder.".
21. Revised land tax rates and thresholds
(1) In section 13M(b) of the Land Tax Act 1958, for
"clause 5" substitute "clause 4B".
20
(2) After clause 4A of the Second Schedule to the
Land Tax Act 1958 insert--
"4B. Land tax in respect of transmission easements for
2005 and subsequent years
25 If the total value of transmission easements held by a
transmission easement holder as assessed under this
Act for 2005 or a subsequent year is not less than the
amount shown in column 1 of an item in Table DB
and, if an amount is shown in column 2 of that item,
30 less than the amount shown in column 2 of that item,
the duty of land tax payable in respect of those
easements is the amount determined in accordance
with column 3 of that item.
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s. 21
TABLE DB
Item Column 1 Column 2 Column 3
$ $
Victorian Legislation Parliamentary Documents
1. 0 150 000 Nil
2. 150 000 200 000 $150 and
01 cents for
each $1 of the
value that
exceeds
$150 000
3. 200 000 540 000 $200 and
02 cents for
each $1 of the
value that
exceeds
$200 000
4. 540 000 675 000 $880 and
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 675 000 810 000 $1555 and
1 cent for each
$1 of the value
that exceeds
$675 000
6. 810 000 1 080 000 $2905 and
175 cents for
each $1 of the
value that
exceeds
$810 000
7. 1 080 000 1 620 000 $7630 and
275 cents for
each $1 of the
value that
exceeds
$1 080 000
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Part 4--Land Tax Act 1958
s. 21
Item Column 1 Column 2 Column 3
$ $
8. 1 620 000 2 700 000 $22 480 and
3 cents for each
Victorian Legislation Parliamentary Documents
$1 of the value
that exceeds
$1 620 000
9. 2 700 000 $54 880 and
5 cents for each
$1 of the value
that exceeds
$2 700 000
".
(3) In the heading to clause 5 of the Second Schedule
to the Land Tax Act 1958, for "subsequent
years" substitute "2004".
(4) In clause 5 of the Second Schedule to the Land
Tax Act 1958, for the expression commencing
5
"If" and ending "column 3 of that item."
substitute--
"If the total unimproved value of land of an owner as
assessed under this Act for 2003 or 2004 is not less than the
10 amount shown in column 1 of an item in Table E 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.".
(5) After clause 5 of the Second Schedule to the Land
15
Tax Act 1958 insert--
"6. Land tax for 2005
If the total unimproved value of land of an owner as
assessed under this Act for 2005 is not less than the
20 amount shown in column 1 of an item in Table F 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.
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s. 21
TABLE F
Item Column 1 Column 2 Column 3
$ $
Victorian Legislation Parliamentary Documents
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. 540 000 710 000 $880 and
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 710 000 850 000 $1730 and
1 cent for each
$1 of the value
that exceeds
$710 000
6. 850 000 1 130 000 $3130 and
175 cents for
each $1 of the
value that
exceeds
$850 000
7. 1 130 000 1 620 000 $8030 and
275 cents for
each $1 of the
value that
exceeds
$1 130 000
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Act No.
Part 4--Land Tax Act 1958
s. 21
Item Column 1 Column 2 Column 3
$ $
8. 1 620 000 2 700 000 $21 505 and
3 cents for each
Victorian Legislation Parliamentary Documents
$1 of the value
that exceeds
$1 620 000
9. 2 700 000 $53 905 and
4 cents for each
$1 of the value
that exceeds
$2 700 000
7. Land tax for 2006
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,
5 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 G
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
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Part 4--Land Tax Act 1958
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Item Column 1 Column 2 Column 3
$ $
4. 540 000 750 000 $880 and
Victorian Legislation Parliamentary Documents
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 750 000 900 000 $1930 and
1 cent for each
$1 of the value
that exceeds
$750 000
6. 900 000 1 190 000 $3430 and
175 cents for
each $1 of the
value that
exceeds
$900 000
7. 1 190 000 1 620 000 $8505 and
275 cents for
each $1 of the
value that
exceeds
$1 190 000
8. 1 620 000 2 700 000 $20 330 and
3 cents for each
$1 of the value
that exceeds
$1 620 000
9. 2 700 000 $52 730 and
375 cents for
each $1 of the
value that
exceeds
$2 700 000
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8. Land tax for 2007
If the total unimproved value of land of an owner as
assessed under this Act for 2007 is not less than the
amount shown in column 1 of an item in Table H and,
Victorian Legislation Parliamentary Documents
5 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 H
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. 540 000 750 000 $880 and
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 750 000 900 000 $1930 and
1 cent for each
$1 of the value
that exceeds
$750 000
6. 900 000 1 190 000 $3430 and
175 cents for
each $1 of the
value that
exceeds
$900 000
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Part 4--Land Tax Act 1958
s. 21
Item Column 1 Column 2 Column 3
$ $
7. 1 190 000 1 620 000 $8505 and
Victorian Legislation Parliamentary Documents
275 cents for
each $1 of the
value that
exceeds
$1 190 000
8. 1 620 000 2 700 000 $20 330 and
3 cents for each
$1 of the value
that exceeds
$1 620 000
9. 2 700 000 $52 730 and
35 cents for
each $1 of the
value that
exceeds
$2 700 000
9. Land tax for 2008
If the total unimproved value of land of an owner as
assessed under this Act for 2008 is not less than the
amount shown in column 1 of an item in Table I and,
5 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. 0 175 000 Nil
2. 175 000 200 000 $175 and
01 cents for
each $1 of the
value that
exceeds
$175 000
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 4--Land Tax Act 1958
s. 21
Item Column 1 Column 2 Column 3
$ $
3. 200 000 540 000 $200 and
Victorian Legislation Parliamentary Documents
02 cents for
each $1 of the
value that
exceeds
$200 000
4. 540 000 750 000 $880 and
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 750 000 900 000 $1930 and
1 cent for each
$1 of the value
that exceeds
$750 000
6. 900 000 1 190 000 $3430 and
175 cents for
each $1 of the
value that
exceeds
$900 000
7. 1 190 000 1 620 000 $8505 and
275 cents for
each $1 of the
value that
exceeds
$1 190 000
8. 1 620 000 2 700 000 $20 330 and
3 cents for each
$1 of the value
that exceeds
$1 620 000
9. 2 700 000 $52 730 and
325 cents for
each $1 of the
value that
exceeds
$2 700 000
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 4--Land Tax Act 1958
s. 21
10. Land tax for 2009 and subsequent years
If the total unimproved value of land of an owner as
assessed under this Act for 2009 or a subsequent year
is not less than the amount shown in column 1 of an
Victorian Legislation Parliamentary Documents
5 item in Table J 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 J
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. 540 000 750 000 $880 and
05 cents for
each $1 of the
value that
exceeds
$540 000
5. 750 000 900 000 $1930 and
1 cent for each
$1 of the value
that exceeds
$750 000
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 4--Land Tax Act 1958
s. 21
Item Column 1 Column 2 Column 3
$ $
6. 900 000 1 190 000 $3430 and
Victorian Legislation Parliamentary Documents
175 cents for
each $1 of the
value that
exceeds
$900 000
7. 1 190 000 1 620 000 $8505 and
275 cents for
each $1 of the
value that
exceeds
$1 190 000
8. 1 620 000 $20 330 and
3 cents for each
$1 of the value
that exceeds
$1 620 000
".
__________________
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 5--Pay-roll Tax Act 1971
s. 22
See: PART 5--PAY-ROLL TAX ACT 1971
Act No.
8154.
22. Definitions
Reprint No. 10
as at
Victorian Legislation Parliamentary Documents
In section 3(1) of the Pay-roll Tax Act 1971--
1 January
2004.
(a) in the definition of "employer", for
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www.dms.
paragraph (b) substitute--
5 dpc.vic.
gov.au
"(b) any person deemed to be an employer
by or under section 3C or Part II;";
(b) in the definitions of "employment agency
contract" and "employment agent", for
"section 3D(1)" substitute "section 4(1)";
10
(c) in the definition of "wages", for "deemed by
section 3C, 3D or 3F" substitute "deemed
by or under section 3C or Part II";
(d) in the definition of "wages", for
paragraph (ba) substitute--
15
"(ba) any amount deemed to be wages by or
under section 3C or Part II;".
23. Repeal of existing employment agent provisions
Sections 3D, 3E and 3F of the Pay-roll Tax Act
1971 are repealed.
20
24. New Part II inserted
After Part I of the Pay-roll Tax Act 1971
insert--
'PART II--EMPLOYMENT AGENTS
4. Interpretation
25
(1) For the purposes of this Act, an
"employment agency contract" is a
contract, whether formal or informal and
whether express or implied, under which a
person ("employment agent") procures the
30
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 5--Pay-roll Tax Act 1971
s. 24
services of another person ("service
provider") for a client of the employment
agent.
(2) However, a contract is not an employment
Victorian Legislation Parliamentary Documents
agency contract for the purposes of this Act
5
if it is, or results in the creation of, a contract
of employment between the service provider
and the client.
(3) In this section--
"contract" includes agreement, arrangement
10
and undertaking.
5. Employment agents deemed to be
employers of service providers
(1) For the purposes of this Act--
(a) the employment agent under an
15
employment agency contract is deemed
to be an employer; and
(b) the person who performs work for or in
relation to which services are supplied
to the client under an employment
20
agency contract is deemed to be an
employee of the employment agent;
and
(c) the following are deemed to be wages
paid or payable by the employment
25
agent under an employment agency
contract--
(i) any amount paid or payable to or
in relation to the service provider
in respect of the provision of
30
services in connection with the
employment agency contract;
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 5--Pay-roll Tax Act 1971
s. 24
(ii) the value of any benefits provided
for or in relation to the provision
of services in connection with the
employment agency contract that
Victorian Legislation Parliamentary Documents
would be a fringe benefit if
5
provided to a person in the
capacity of an employee;
(iii) any payment made in relation to
the service provider that would be
a superannuation benefit if made
10
in relation to a person in the
capacity of an employee.
(2) An amount referred to in sub-section (1)(c)
paid or payable under an employment
agency contract does not include an amount
15
in respect of any GST payable on the supply
to which the employment agency contract
relates.
(3) Sub-section (1)(c) does not apply to an
employment agency contract to the extent
20
that an amount, benefit or payment referred
to in that sub-section would be exempt from
pay-roll tax under section 10 had the service
provider been paid by the client as an
employee, if the client has given a
25
declaration to that effect to the employment
agent.
(4) Subject to section 5A, if an employment
agent under an employment agency
contract--
30
(a) by arrangement procures the services of
a service provider for a client of the
employment agent; and
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 5--Pay-roll Tax Act 1971
s. 24
(b) pays pay-roll tax in respect of an
amount, benefit or payment that is,
under sub-section (1)(c), deemed to be
wages paid or payable by the
Victorian Legislation Parliamentary Documents
employment agent in respect of the
5
provision of those services in
connection with that contract--
no other person (including any other person
engaged to procure the services of the
service provider for the employment agent's
10
client as part of the arrangement) is liable to
pay pay-roll tax in respect of wages paid or
payable for the procurement or performance
of those services by the service provider for
the client.
15
5A. Agreement to reduce or avoid liability to
pay-roll tax
(1) If the effect of an employment agency
contract is to reduce or avoid the liability of
any party to the contract to the assessment,
20
imposition or payment of pay-roll tax, the
Commissioner may--
(a) disregard the contract; and
(b) determine that any party to the contract
is deemed to be an employer for the
25
purposes of this Act; and
(c) determine that any payment made in
respect of the contract is deemed to be
wages for the purposes of this Act.
(2) The Commissioner cannot include in a
30
determination under sub-section (1)(c) in
respect of a contract an amount in respect of
any GST payable on the supply to which the
contract relates.
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Act No.
Part 5--Pay-roll Tax Act 1971
s. 25
(3) If the Commissioner makes a determination
under sub-section (1), the Commissioner
must serve a notice of the determination on
the deemed employer.
Victorian Legislation Parliamentary Documents
(4) The notice must set out the facts on which
5
the Commissioner relies and the reasons for
the determination.
(5) This section has effect in relation to
employment agency contracts made before,
on or after the commencement of section 24
10
of the State Taxation Acts (Tax Reform)
Act 2004.'.
25. Exemption for group training scheme wages
(1) After section 10(1)(j) of the Pay-roll Tax Act
1971 insert--
15
"(k) to a new entrant who is employed--
(i) in accordance with the requirements of
an approved training scheme under
section 51 of the Vocational
Education and Training Act 1990;
20
and
(ii) by a not for profit organisation that is
declared by notice of the Treasurer
published in the Government Gazette to
be an approved group training
25
organisation for the purposes of this
paragraph;".
(2) After section 10(3) of the Pay-roll Tax Act 1971
insert--
'(4) The Treasurer must consult the Minister
30
administering Part 5 of the Vocational
Education and Training Act 1990 before
declaring a not for profit organisation to be
an approved group training organisation for
the purposes of sub-section (1)(k).
35
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 5--Pay-roll Tax Act 1971
s. 25
(5) For the purposes of sub-section (1)(k)--
"Commission" has the same meaning as in
the Vocational Education and
Training Act 1990;
Victorian Legislation Parliamentary Documents
"new entrant" means an apprentice or
5
trainee who meets the requirements of
the Commission for eligibility for
funding as a new entrant under the
applicable performance agreement
under section 10 of the Vocational
10
Education and Training Act 1990.'.
__________________
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Part 6--Taxation Administration Act 1997
s. 26
See: PART 6--TAXATION ADMINISTRATION ACT 1997
Act No.
40/1997.
26. Objections concerning the valuation of property
Reprint No. 2
as at
Victorian Legislation Parliamentary Documents
(1) For section 100A(1) of the Taxation
13 September
2001 and
Administration Act 1997 substitute--
amending
Act Nos
"(1) If an objection concerns the value of any
5 79/2001 and
property, the Commissioner must refer the
113/2003.
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matter to the Valuer-General or another
www.dms.
competent valuer for valuation of the
dpc.vic.
gov.au
property.".
(2) In section 100A(2) of the Taxation
10
Administration Act 1997--
(a) in paragraph (a), for "land" substitute
"property";
(b) in paragraph (b), for "Valuer-General's
valuation" substitute "valuation under sub-
15
section (1)".
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State Taxation Acts (Tax Reform) Act 2004
Act No.
Endnotes
ENDNOTES
Victorian Legislation Parliamentary Documents
By Authority. Government Printer for the State of Victoria.
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