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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Legislation Amendment (Housing
Affordability) Act 2006
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. New Division 4A inserted in Part 5 of Chapter 2 3
Division 4A--Principal place of residence concession 3
57G. Definitions 3
57H. What is a principal place of residence? 3
57I. What is a PPR transfer? 4
57J. Concessional rate of duty for PPR transfers 5
57K. Residence requirement 5
57L. Variation of residence requirement 6
57M. Liability for duty if residence requirement not complied
with 7
57N. Transferee to notify Commissioner of change in
circumstances 8
57O. Election to receive concession or additional first home
owner grant 8
4. Consequential changes to pensioner and first home owner
concession formulas 9
5. New clause 24 inserted in Schedule 2--transitional provision 10
24. State Taxation Legislation Amendment (Housing
Affordability) Act 2006 10
PART 3--FIRST HOME OWNER GRANT ACT 2000 11
6. Extension of first home bonus 11
PART 4--PAY-ROLL TAX ACT 1971 13
7. Tax rate reduction brought forward 13
561003B.I1-19/12/2006 i BILL LA INTRODUCTION 19/12/2006
Clause Page
PART 5--GENERAL 14
8. Repeal of Act 14
ENDNOTES 15
561003B.I1-19/12/2006 ii BILL LA INTRODUCTION 19/12/2006
PARLIAMENT OF VICTORIA
Introduced in the Assembly
A BILL
to amend the Duties Act 2000, the First Home Owner Grant Act
2000 and the Pay-roll Tax Act 1971 to improve housing affordability
and bring forward pay-roll tax cuts and for other purposes.
State Taxation Legislation Amendment
(Housing Affordability) Act 2006
The Parliament of Victoria enacts:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is--
(a) to amend the Duties Act 2000 and the First
5 Home Owner Grant Act 2000 to improve
housing affordability;
561003B.I1-19/12/2006 1 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 1--Preliminary
s. 2
(b) to amend the Pay-roll Tax Act 1971 to bring
forward pay-roll tax cuts.
2. Commencement
This Act comes into operation on the day on
5 which it receives the Royal Assent.
__________________
561003B.I1-19/12/2006 2 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
PART 2--DUTIES ACT 2000
3. New Division 4A inserted in Part 5 of Chapter 2
After Division 4 of Part 5 of Chapter 2 of the See:
Act No.
Duties Act 2000 insert-- 79/2000.
Reprint No. 5
as at
5 "Division 4A--Principal place of residence 10 February
concession 2006
and
amending
57G. Definitions Act Nos
38/2006 and
In this Division-- 84/2006.
LawToday:
guardian of a person under a legal disability www.dms.
dpc.vic.
10 includes-- gov.au
(a) a trustee who holds property on
trust for the person under an
instrument of trust or direction of
a court or tribunal;
15 (b) an administrator of the person's
estate appointed under the
Guardianship and
Administration Act 1986;
residence requirement means the
20 requirement referred to in section 57K
as varied (if at all) by the
Commissioner under section 57L.
57H. What is a principal place of residence?
(1) For the purposes of this Division, land is not
25 taken to be occupied as a place of residence
unless there is a building affixed to the land
that, in the Commissioner's opinion--
(a) is designed and constructed primarily
for residential purposes; and
30 (b) may lawfully be used as a place of
residence.
561003B.I1-19/12/2006 3 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
(2) In determining whether land is occupied as
the principal place of residence of a person,
account must be taken of every place of
residence of the person, whether in Victoria
5 or elsewhere.
57I. What is a PPR transfer?
(1) A PPR transfer is a transfer of dutiable
property, being an estate in fee simple in
land, if--
10 (a) the transferee, or each transferee if
there are more than one, is--
(i) a natural person who is at least
18 years of age or, if such a
person is under a legal disability, a
15 guardian of the person; and
(ii) a bona fide purchaser of the land
for adequate consideration; and
(b) the transferee, or at least one of the
transferees, or, if the transferee is a
20 guardian, the person under a legal
disability, intends to occupy the land as
his or her principal place of residence;
and
(c) the contract for the purchase of the land
25 was entered into on or after 1 January
2007; and
(d) the dutiable value of the dutiable
property is more than $115 000 but not
more than $500 000.
30 (2) The Commissioner may determine that a
transfer is a PPR transfer despite a transferee
or person under a legal disability being under
18 years of age if the Commissioner is
satisfied that the transfer does not form part
561003B.I1-19/12/2006 4 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
of a scheme or arrangement designed to take
advantage of the benefit of this Division.
57J. Concessional rate of duty for PPR
transfers
5 The rate of duty chargeable on a
PPR transfer is chargeable to the nearest
whole dollar of the amount determined as
follows, or if that amount is an amount of
dollars and fifty cents, to the nearest whole
10 dollar below that amount--
Dutiable value of the Rate of duty
dutiable property
More than $115 000 $2560 plus 5% of that
but not more than part of the dutiable
$400 000 value that exceeds
$115 000
More than $400 000 $16 810 plus 6% of
but not more than that part of the dutiable
$500 000 value that exceeds
$400 000
57K. Residence requirement
(1) The concessional rate of duty under
section 57J is subject to the requirement that
the transferee occupies the land as his or her
15 principal place of residence for a continuous
period of at least 12 months commencing
within the 12 month period immediately
after the transferee became entitled to
possession of the land.
20 (2) If there are 2 or more transferees, the
requirement is complied with if the land is
occupied for the period referred to in
subsection (1) as the principal residence of at
least one of them (whether separately or
25 together with any of the others and whether
or not the same transferee occupies the land
for the whole period).
561003B.I1-19/12/2006 5 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
(3) A reference in this section to a transferee in
the case of a guardian who holds property on
behalf of a person who is under a legal
disability is a reference to the person under
5 the legal disability.
57L. Variation of residence requirement
(1) If satisfied that there is a good reason for
doing so, the Commissioner may--
(a) reduce the required period of residence;
10 or
(b) determine that a temporary absence
from residence does not break the
continuity of residence; or
(c) extend the period in which residence
15 must begin.
(2) If the Commissioner determines that a
temporary absence from residence does not
break the continuity of residence, the
transferee is not entitled to a concessional
20 rate of duty under this Division in respect of
any other PPR transfer during the period of
temporary absence unless the transferee pays
the difference between the duty paid on the
original PPR transfer and duty on the
25 original PPR transfer calculated at the rate
set out in section 28(1).
(3) If a transferee or person under a legal
disability who is occupying land the subject
of a PPR transfer as his or her principal place
30 of residence, or is temporarily absent from
the land in accordance with a determination
under subsection (1), dies, the residence
requirement is taken to have been complied
with for the PPR transfer.
561003B.I1-19/12/2006 6 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
57M. Liability for duty if residence requirement
not complied with
(1) If the residence requirement for a
PPR transfer is not complied with--
5 (a) the PPR transfer is chargeable with
duty at the rate set out in section 28(1),
subject to any exemption or concession
other than in this Division; and
(b) the Commissioner may reassess duty on
10 the PPR transfer accordingly (giving an
allowance for any duty already paid on
the PPR transfer).
(2) A liability for duty imposed because of
subsection (1) on a PPR transfer arises when
15 the residency requirement for that transfer is
not complied with.
Note
Section 16 provides that a tax default does not occur if
the duty is paid within 3 months after the liability for
20 the duty arises.
(3) A reassessment referred to in subsection
(1)(b) is authorised if more than 3 years have
passed since the initial assessment was made.
Note
25 Section 9(3)(c) of the Taxation Administration Act
1997 allows a reassessment to be made more than
3 years after the initial assessment if this is authorised
by a taxation law.
(4) If the residence requirement for a PPR
30 transfer is not complied with, the transferee
is not entitled to a concessional rate of duty
under this Division in respect of any other
PPR transfer until the transferee has paid
duty for which he or she is liable because of
35 this section.
561003B.I1-19/12/2006 7 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 3
57N. Transferee to notify Commissioner of
change in circumstances
(1) A transferee who has received a concessional
rate of duty under this Division must lodge a
5 written notice with the Commissioner within
30 days after becoming aware of any
circumstances that may result in the
residence requirement not being complied
with.
10 (2) A failure of a transferee to comply with
subsection (1) does not affect the
Commissioner's power to reassess duty
under section 57M or to exercise a
discretion under section 57L.
15 57O. Election to receive concession or
additional first home owner grant
(1) This section applies to a transferee who, but
for this section or section 18(7) of the First
Home Owner Grant Act 2000, would be
20 entitled--
(a) to receive a concessional rate of duty
under this Division in respect of a PPR
transfer; 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 the
land that is the subject of the PPR
30 transfer.
(2) The transferee, by written notice to the
Commissioner, must elect to receive--
(a) the concessional rate of duty under this
Division in respect of the PPR transfer;
35 or
561003B.I1-19/12/2006 8 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 4
(b) the amount under section 18(2) of the
First Home Owner Grant Act 2000 in
respect of the eligible transaction.
(3) If the transferee elects to receive the amount
5 under section 18(2) of the First Home
Owner Grant Act 2000, or does not make
an election under this section, he or she is
not entitled to the concessional rate of duty
under this Division in respect of the PPR
10 transfer.".
4. Consequential changes to pensioner and first home
owner concession formulas
In the Duties Act 2000--
(a) in section 59(3), for the formula
15 substitute--
4724P
"$47 240 - ";
40 000
(b) in section 60(3), for the formula
substitute--
1181($400 000 - P)
"D × ";
500(P - $63 800)
20 (c) in section 62(3), for the formula
substitute--
1724P
"$17 240 - ";
20 000
(d) in sections 62(4) and 63(3), for the formula
substitute--
431($200 000 - P)
25 "D × ".
250(P - $63 800)
561003B.I1-19/12/2006 9 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 2--Duties Act 2000
s. 5
5. New clause 24 inserted in Schedule 2--transitional
provision
After clause 23 of Schedule 2 to the Duties Act
2000 insert--
5 "24. State Taxation Legislation Amendment (Housing
Affordability) Act 2006
(1) Sections 59 and 60, as amended by section 4 of the
State Taxation Legislation Amendment (Housing
Affordability) Act 2006, apply to a transfer to an
10 eligible pensioner of dutiable property being an estate
in fee simple in land if the contract of sale of the land
was entered into on or after 1 January 2007.
(2) Sections 59 and 60, as in force immediately before the
commencement day, continue to apply to a transfer to
15 an eligible pensioner of dutiable property being an
estate in fee simple in land if the contract of sale of
the land was entered into before 1 January 2007.
(3) Sections 62 and 63, as amended by section 4 of the
State Taxation Legislation Amendment (Housing
20 Affordability) Act 2006, apply to a transfer to an
eligible first home owner of dutiable property being
an estate in fee simple in land if the contract of sale of
the land was entered into on or after 1 January 2007.
(4) Sections 62 and 63, as in force immediately before the
25 commencement day, continue to apply to a transfer to
an eligible first home owner of dutiable property
being an estate in fee simple in land if the contract of
sale of the land was entered into before 1 January
2007.
30 (5) In this clause, commencement day means the day on
which the State Taxation Legislation Amendment
(Housing Affordability) Act 2006, received the
Royal Assent.".
__________________
561003B.I1-19/12/2006 10 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 3--First Home Owner Grant Act 2000
s. 6
PART 3--FIRST HOME OWNER GRANT ACT 2000
6. Extension of first home bonus
(1) In section 18(2) of the First Home Owner Grant See:
Act No.
Act 2000-- 5/2000.
Reprint No. 1
5 (a) in paragraph (b), for "1 July 2007." as at
1 January
substitute "1 January 2007; or"; 2004
and
(b) after paragraph (b) insert-- amending
Act Nos
"(c) if the commencement date of the 46/2004,
eligible transaction is on or after 71/2004,
36/2005 and
10 1 January 2007 and before 1 July 38/2006.
2009-- LawToday:
www.dms.
dpc.vic.
(i) $5000 if the eligible transaction is gov.au
a contract for the purchase of new
residential premises or an eligible
15 transaction referred to in
section 13(1)(b) or (c); or
(ii) $3000 in any other case.".
(2) After section 18(6) of the First Home Owner
Grant Act 2000 insert--
20 "(7) If a transferee of a PPR transfer elects under
section 57O of the Duties Act 2000 to
receive a concessional rate of duty in respect
of the PPR transfer, he or she is not entitled
to any amount under subsection (2) of this
25 section in respect of the eligible transaction
relating to the land that is the subject of the
PPR transfer.
(8) In this section--
new residential premises has the same
30 meaning as in section 40-75 of the
A New Tax System (Goods and
Services Tax) Act 1999 of the
Commonwealth;
561003B.I1-19/12/2006 11 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 3--First Home Owner Grant Act 2000
s. 6
PPR transfer has the same meaning as in
Division 4A of Part 5 of Chapter 2 of
the Duties Act 2000.".
__________________
561003B.I1-19/12/2006 12 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 4--Pay-roll Tax Act 1971
s. 7
PART 4--PAY-ROLL TAX ACT 1971
7. Tax rate reduction brought forward
In section 7(1) of the Pay-roll Tax Act 1971-- See:
Act No.
8154.
(a) in paragraph (l), for "July 2007" substitute Reprint No. 10
5 "January 2007"; as at
1 January
(b) in paragraph (m), for "June 2007" substitute 2004
and
"December 2006". amending
Act Nos
46/2004,
71/2004,
36/2005,
24/2006,
38/2006 and
84/2006.
LawToday:
www.dms.
dpc.vic.
gov.au
__________________
561003B.I1-19/12/2006 13 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Part 5--General
s. 8
PART 5--GENERAL
8. Repeal of Act
This Act is repealed on the first anniversary of its
commencement.
561003B.I1-19/12/2006 14 BILL LA INTRODUCTION 19/12/2006
State Taxation Legislation Amendment (Housing Affordability)
Act 2006
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
561003B.I1-19/12/2006 15 BILL LA INTRODUCTION 19/12/2006
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