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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Acts (Taxation Reform
Implementation) Act 2001
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--HEALTH BENEFIT LEVY 3
3. Casino Control Act 1991 3
4. Gaming Machine Control Act 1991 4
PART 3--DUTIES ACT 2000 6
5. Abolition of lease duty 6
6. Abolition of duty on unquoted marketable securities and
associated duties from July 2003 6
7. New section 148A inserted 7
148A. Mortgage duty abolished from July 2004 7
8. Transitional provision consequent on the repeal of lease duty 7
PART 4--LAND TAX ACT 1958 9
9. Increase in land tax threshold 9
PART 5--PAY-ROLL TAX ACT 1971 11
10. Pre-January 1996 accrued leave 11
11. Eligible termination payments 11
12. Reduction in pay-roll tax rate 12
13. Increase in pay-roll tax threshold from 2003 12
14. Fringe benefits tax gross-up 15
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Clause Page
PART 6--STAMPS ACT 1958 18
15. Abolition of lease duty 18
ENDNOTES 20
ii
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
PARLIAMENT OF VICTORIA
Initiated in Assembly 16 May 2001
A BILL
to amend the Casino Control Act 1991, the Duties Act 2000, the
Gaming Machine Control Act 1991, the Land Tax Act 1958, the
Pay-roll Tax Act 1971 and the Stamps Act 1958 to implement the
reform of State taxes and for other purposes.
State Taxation Acts (Taxation Reform
Implementation) Act 2001
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to amend the Casino
Control Act 1991, the Duties Act 2000, the
5 Gaming Machine Control Act 1991, the Land
Tax Act 1958, the Pay-roll Tax Act 1971 and the
1
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 2
Act No.
Stamps Act 1958 to implement the reform of
State taxes.
2. Commencement
(1) This Part and Part 4 come into operation on the
5 day on which this Act receives the Royal Assent.
(2) Part 6 is deemed to have come into operation on
26 April 2001.
(3) Parts 2, 3 (other than section 6(4)) and 5 come
into operation on 1 July 2001.
10 (4) Section 6(4) comes into operation on 1 July 2003.
_______________
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State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 3
Act No.
PART 2--HEALTH BENEFIT LEVY
3. Casino Control Act 1991
See:
(1) In the Casino Control Act 1991, insert the Act No.
following heading to section 114A-- 47/1991.
Reprint No. 4
5 "Health benefit levy". as at
1 January
(2) In section 114A of the Casino Control Act 1991, 1999
and
for sub-section (1) substitute-- amending
Act Nos
"(1) A casino operator must pay to the Director 16/2000,
24/2000,
for payment into the Consolidated Fund each
88/2000 and
10 financial year a health benefit levy 89/2000.
calculated in accordance with the following LawToday:
www.dms.
formula-- dpc.vic.
gov.au
GM
L = $1533.33 ×
12
where--
15 L is the levy payable by the casino
operator;
GM is the sum of the number of gaming
machines operating in the casino on the
first Saturday in each month from and
20 including December in the preceding
financial year to and including
November in the financial year.".
(3) In section 114A of the Casino Control Act
1991--
25 (a) in sub-section (2), for "30 September in a
financial year" substitute "the first Saturday
in a month";
(b) in sub-section (3), for "30 September"
substitute "the first Saturday in November".
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State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 4
Act No.
(4) In the Casino Control Act 1991--
(a) insert the following heading to
section 114B--
"Hypothecation of health benefit levy";
5 (b) in section 116(1) and (4), for "gaming
machine levy" substitute "health benefit
levy".
4. Gaming Machine Control Act 1991
See: (1) In the Gaming Machine Control Act 1991,
Act No.
10 insert the following heading to section 135A--
53/1991.
Reprint No. 7
"Health benefit levy".
as at
1 July 2000
(2) In section 135A of the Gaming Machine Control
and
amending
Act 1991, for sub-section (1) substitute--
Act Nos
73/2000,
"(1) A gaming operator must pay to the Director
88/2000 and
15 89/2000. for payment into the Consolidated Fund each
LawToday:
financial year a health benefit levy calculated
www.dms.
dpc.vic. in accordance with the following formula--
gov.au
GM
L = $1533.33 ×
12
where--
20 L is the levy payable by the gaming
operator;
GM is the sum of the number of gaming
machines of the gaming operator that
are operating at an approved venue on
25 the first Saturday in each month from
and including December in the
preceding financial year to and
including November in the financial
year.".
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 4
Act No.
(3) In section 135A of the Gaming Machine Control
Act 1991--
(a) in sub-section (2), for "30 September in a
financial year" substitute "the first Saturday
5 in a month";
(b) in sub-section (3), for "30 September"
substitute "the first Saturday in November".
(4) In the Gaming Machine Control Act 1991,
insert the following heading to section 135B--
10 "Hypothecation of health benefit levy".
_______________
5
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 5
Act No.
PART 3--DUTIES ACT 2000
See: 5. Abolition of lease duty
Act No.
79/2000.
In the Duties Act 2000--
Statute Book:
www.dms.
(a) in section 3, the definitions of "cost", "lease"
dpc.vic.
5 and "variation" are repealed;
gov.au
(b) Chapter 5 is repealed.
6. Abolition of duty on unquoted marketable securities
and associated duties from July 2003
(1) In section 7 of the Duties Act 2000, after sub-
10 section (3) insert--
"(3A) Despite sub-section (1), a transfer of
marketable securities, or a transaction
referred to in sub-section (1)(b) in respect of
marketable securities, that takes place or
15 occurs on or after 1 July 2003 is not a
dutiable transaction.".
(2) In section 94 of the Duties Act 2000, after sub-
section (2) insert--
"(3) A statement is not required to be lodged
20 under this section in respect of an
entitlement that arises on or after 1 July
2003.".
(3) In section 97(2) of the Duties Act 2000--
(a) in paragraph (b), for "company." substitute
25 "company;";
(b) after paragraph (b), insert--
"(c) an allotment of shares that takes place
on or after 1 July 2003.".
(4) In section 108 of the Duties Act 2000, for
30 "section 28 or 29, as the case requires," substitute
"section 28".
6
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 7
Act No.
7. New section 148A inserted
After section 148 of the Duties Act 2000 insert--
"148A. Mortgage duty abolished from July 2004
Despite anything to the contrary in this
5 Chapter, mortgage duty is not chargeable--
(a) on a mortgage first executed, or that
first affects property in Victoria, on or
after 1 July 2004; or
(b) in respect of an advance or further
10 advance on or after 1 July 2004 under a
mortgage first executed, or that first
affects property in Victoria, before that
day.".
8. Transitional provision consequent on the repeal of
15 lease duty
In Schedule 2 to the Duties Act 2000, for clause 7
substitute--
'7. Provisions relating to the abolition of stamp duty on
leases
20 (1) If stamp duty under the former Act has been paid on
any lease or agreement for a lease for any definite
term of not less than 2 years and the lease is
determined before the expiration of the full term in
respect of which duty was paid, the Commissioner
25 must, on application within 3 years after the
determination, refund to the lessee or (where the lease
has been transferred or assigned) to the transferee or
assignee an amount equal to the difference between
the stamp duty paid and the stamp duty that would
30 have been payable if the lease had been expressed to
expire at the date of determination.
(2) Sub-clause (1) does not apply if the Commissioner is
satisfied that, at any time after the determination of
the lease, the lessee or an associate of the lessee has
35 occupied the leased property, or substantially the
same property, with the agreement (express or
implied) of the lessor (other than as a result of the sale
of the property to the lessee or associate).
7
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 8
Act No.
(3) An application for a refund under this clause must be
accompanied by--
(a) the lease or agreement for a lease on which
stamp duty was paid; and
5 (b) a declaration by the applicant stating that
neither the lessee nor any associate of the lessee
has occupied or will occupy the leased
property, or substantially the same property,
after the determination of the lease (other than
10 as a result of the sale of the property to the
lessee or associate).
(4) A person must not knowingly make a false
declaration under sub-clause (3)(b).
Penalty: 300 penalty units in the case of a body
15 corporate;
60 penalty units in any other case.
(5) In this section--
"determination" includes surrender and forfeiture.'.
_______________
20
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 9
Act No.
PART 4--LAND TAX ACT 1958
See:
9. Increase in land tax threshold Act No.
6289.
(1) In section 7A of the Land Tax Act 1958-- Reprint No. 10
as at
(a) for "1997" substitute "2001"; 14 October
1999
5 (b) for "$85" substitute "$125". and
amending
(2) In the Second Schedule to the Land Tax Act Act Nos
69/2000 and
1958-- 10/2001.
LawToday:
(a) insert the following heading to clause 3-- www.dms.
dpc.vic.
"Land Tax for 1998, 1999, 2000 and 2001"; gov.au
10 (b) in clause 3, for "or a subsequent year"
substitute ", 1999, 2000 or 2001".
(3) In the Second Schedule to the Land Tax Act
1958, after clause 3 insert--
"4. Land tax for 2002 and subsequent years
15 If the total unimproved value of land of an owner as
assessed under this Act for 2002 or a subsequent year is not
less than the amount shown in column 1 of an item in Table
D 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
20 land tax payable on the land is the amount determined in
accordance with column 3 of that item.
TABLE D
Item Column 1 Column 2 Column 3
$ $
1. 0 125 000 Nil
2. 125 000 200 000 $125 and 0·1 cents for
each $1 of the value
that exceeds $125 000
3. 200 000 540 000 $200 and 0·2 cents for
each $1 of the value
that exceeds $200 000
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 9
Act No.
Item Column 1 Column 2 Column 3
$ $
4. 540 000 675 000 $880 and 0·5 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 1·75 cents
for each $1 of the
value that exceeds
$810 000
7. 1 080 000 1 620 000 $7630 and 2·75 cents
for each $1 of the
value that exceeds
$1 080 000
8. 1 620 000 2 700 000 $22 480 and 3 cents
for each $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".
_______________
10
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 10
Act No.
PART 5--PAY-ROLL TAX ACT 1971
See:
10. Pre-January 1996 accrued leave Act No.
8154.
In section 3 of the Pay-roll Tax Act 1971-- Reprint No. 7
as at
(a) in sub-section (1), in the definition of 1 September
5 "wages", in paragraph (e), omit "subject to 1999
and
sub-section (2F),"; amending
Act Nos
(b) sub-section (2F) is repealed. 6/2000,
42/2000,
97/2000 and
10/2001.
LawToday:
www.dms.
dpc.vic.
gov.au
11. Eligible termination payments
(1) In section 3(1) of the Pay-roll Tax Act 1971, in
10 the definition of "wages", in paragraph (e), for
sub-paragraph (iii) substitute--
"(iii) so much of any eligible termination payment
(within the meaning of section 27A of the
Income Tax Assessment Act 1936 of the
15 Commonwealth) paid or payable by an
employer, whether or not paid to the
employee or to any other person or body,
that would be included in the assessable
income of an employee under
20 Subdivision AA of Division 2 of Part III of
that Act if the whole of the eligible
termination payment had been paid to the
employee.".
(2) In section 6 of the Pay-roll Tax Act 1971, after
25 sub-section (1AB) insert--
"(1AC) Wages referred to in paragraph (e) of the
definition of "wages" in section 3(1) that are
not paid in respect of services performed or
rendered by an employee in a particular
11
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State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 12
Act No.
month are liable to pay-roll tax under this
Act as if they were paid or payable in respect
of services performed or rendered during the
month in which they were paid or became
5 payable.".
12. Reduction in pay-roll tax rate
In section 7(1) of the Pay-roll Tax Act 1971--
(a) in paragraph (h)--
(i) after "1999" insert "and before the
10 month of July 2001";
(ii) for "or (g)." substitute "or (g); and";
(b) after paragraph (h) insert--
"(i) at the rate of 5·45% in respect of such
of those wages as are paid or payable
15 after the month of June 2001 and before
the month of July 2003 and are not
liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f),
(g) or (h); and
20 (j) at the rate of 5·35% in respect of such
of those wages as are paid or payable
after the month of June 2003 and are
not liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f),
25 (g), (h) or (i).".
13. Increase in pay-roll tax threshold from 2003
(1) In section 9A(3A)(ga) of the Pay-roll Tax Act
1971--
(a) in paragraph (h), after "each succeeding
30 financial year" insert "up to and including
the financial year ending on 30 June 2003";
(b) after paragraph (h) insert--
12
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 13
Act No.
"(i) for the purposes of the financial year
commencing on 1 July 2003 and each
succeeding financial year, the
prescribed amount calculated for those
5 purposes in relation to such members in
accordance with Part R of Schedule
Two;".
(2) In section 9B(1) of the Pay-roll Tax Act 1971, in
the definition of "prescribed amount"--
10 (a) in paragraph (a), for sub-paragraph (iv)
substitute--
"(iv) ending after 1 December 1992 and
before 1 July 2003, means $42 917;
(v) ending after 1 July 2003, means
15 $45 833;";
(b) in paragraph (b), for sub-paragraph (vii)
substitute--
"(vii) beginning after 30 November 1992 and
ending before 1 July 2003, means the
20 product ascertained by multiplying
$42 917 by the number of months in the
return period;
(viii) beginning before and ending after 1
July 2003, means the sum of the
25 products ascertained by multiplying
$42 917 by the number of months in the
return period before that date and by
multiplying $45 833 by the number of
months in the return period after that
30 date;
(ix) beginning after 30 June 2003, means
the product ascertained by multiplying
$45 833 by the number of months in the
return period;".
35 (3) In section 11A(2) of the Pay-roll Tax Act 1971--
13
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 13
Act No.
(a) in paragraph (h)--
(i) after "each succeeding financial year"
insert "up to and including the
financial year ending on 30 June 2003";
5 (ii) for "Schedule Two." substitute
"Schedule Two;";
(b) after paragraph (h) insert--
"(i) for the purposes of the financial year
commencing on 1 July 2003 and each
10 succeeding financial year, the
prescribed amount calculated for those
purposes in relation to such members in
accordance with Part Q of Schedule
Two.".
15 (4) In Schedule Two to the Pay-roll Tax Act 1971--
(a) in Parts O and P, after "each succeeding
financial year" insert "up to and including
the financial year ending on 30 June 2003";
(b) after Part P insert--
20 "PART Q
s. 11A(2)(i)
For the purpose of the financial year commencing on 1 July
2003 and each succeeding financial year, the prescribed
amount calculated in accordance with this Part of this
25 Schedule is the amount calculated in accordance with the
formula--
550 000C where--
TW
TW + IW 365
(a) TW is the amount of taxable wages paid or payable
by the employer during the financial year; and
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State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 14
Act No.
(b) IW is the amount of interstate wages paid or payable
by the employer during the financial year; and
(c) C is the number of days in the financial year in
respect of which the employer paid or was liable to
5 pay wages (disregarding foreign wages).
PART R
s. 9A(3A)(ga)
For the purpose of the financial year commencing on 1 July
2003 and each succeeding financial year, the prescribed
10 amount, in relation to the members of a group within the
meaning of section 9A, calculated in accordance with this
Part of this Schedule is the amount calculated in accordance
with the formula--
550 000C where--
TW
TW + IW 365
15 (a) TW is the amount of taxable wages paid or payable
by the members of the group during the financial
year; and
(b) IW is the amount of interstate wages paid or payable
by the members of the group during the financial
20 year; and
(c) C is the number of days in the financial year in
respect of which at least one member of the group
paid or was liable to pay wages (disregarding foreign
wages).".
25 14. Fringe benefits tax gross-up
(1) In section 9 of the Pay-roll Tax Act 1971, for
"taxable value of the benefit as a fringe benefit"
substitute "fringe benefits taxable amount".
(2) In section 13A(2)(a) and (b) of the Pay-roll Tax
30 Act 1971, for "aggregate fringe benefits amount
(within the meaning of that Act)" substitute
"fringe benefits taxable amount (within the
meaning of the Fringe Benefits Tax Assessment
Act 1986 of the Commonwealth)".
15
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 14
Act No.
(3) In section 13A of the Pay-roll Tax Act 1971,
after sub-section (6) insert--
'(7) If an employer is a prescribed sporting club,
a reference in sub-section (2) to the fringe
5 benefits taxable amount within the meaning
of the Fringe Benefits Tax Assessment Act
1986 in relation to that employer is taken to
be a reference to the sum of the type 1
aggregate fringe benefits amount and the
10 type 2 aggregate fringe benefits amount
(within the meaning of that Act) in relation
to that employer.
(8) For the purposes of sub-section (7), a
prescribed sporting club is a body prescribed
15 by the regulations, being an association, club
or other body--
(a) an object of which is to participate in,
facilitate or promote a sporting activity;
and
20 (b) that employs persons who play for the
body in a competitive sporting activity;
and
(c) that pays more than 50% of its total
wages in a financial year to persons
25 referred to in paragraph (b) in respect
of services performed by those players
being the playing of a sport.
(9) In this section, "competitive sporting
activity" includes the playing of a sport, but
30 does not include--
(a) the umpiring or refereeing of a sporting
activity; or
16
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 14
Act No.
(b) the administration of a sporting
activity; or
(c) the non-competitive practice of a
sport.'.
5 _______________
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 15
Act No.
PART 6--STAMPS ACT 1958
See: 15. Abolition of lease duty
Act No.
6375.
(1) At the end of section 80 of the Stamps Act 1958
Reprint No. 16
insert--
as at
3 July 2000
5 "(2) Sub-section (1) does not apply if the
and
amending Act
Comptroller is satisfied that, at any time after
Nos 103/1993
the surrender, forfeit or other determination
(as amended
by No.
of the lease, the lessee or an associate of the
119/1994),
lessee has occupied the leased property, or
34/1999,
79/2000,
10 substantially the same property, with the
10/2001 and
agreement (express or implied) of the lessor
11/2001.
LawToday:
(other than as a result of the sale of the
www.dms.
property to the lessee or associate).
dpc.vic.
gov.au
(3) An application for a refund under this
15 section must be accompanied by a
declaration by the applicant stating that
neither the lessee nor any associate of the
lessee has occupied or will occupy the leased
property, or substantially the same property,
20 after the surrender, forfeit or other
determination of the lease (other than as a
result of the sale of the property to the lessee
or associate).
(4) A person must not knowingly make a false
25 declaration under sub-section (3).
Penalty: 300 penalty units in the case of a
body corporate;
60 penalty units in any other
case.".
30 (2) In section 83A of the Stamps Act 1958, after sub-
section (6) insert--
"(6A) Sub-sections (4), (5) and (6) do not apply on
or after 26 April 2001.
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
s. 15
Act No.
(6B) If, on or after 26 April 2001 but before the
day on which the State Taxation Acts
(Taxation Reform Implementation) Act
2001 received the Royal Assent, the
5 Comptroller made a re-estimate under sub-
section (5)--
(a) if additional stamp duty was paid under
sub-section (5)(a) as a result of the re-
estimate, the Comptroller must refund
10 an amount equal to the additional duty
paid;
(b) if the Comptroller refunded an amount
under sub-section (5)(b) as a result of
the re-estimate, that amount must be
15 repaid to the Comptroller and the
Comptroller may recover that amount
from the person to whom it was paid as
a debt in a court of competent
jurisdiction.".
20 (3) In the Third Schedule to the Stamps Act 1958, in
Heading VIII, after clause (4) insert--
"Duty is not payable under this Heading on a lease,
assignment of lease or agreement for a lease that is made on
or after 26 April 2001.".
25
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541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
Endnotes
Act No.
ENDNOTES
20
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
State Taxation Acts (Taxation Reform Implementation) Act 2001
Act No.
By Authority. Government Printer for the State of Victoria.
21
541199B.I1-18/5/2001 BILL LA CIRCULATION 18/5/2001
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