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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
State Taxation Legislation (Further Amendment)
Act 2002
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2--DUTIES ACT 2000 3
3. Definitions 3
4. Dutiable transactions and dutiable property 6
5. No double duty 6
6. Aggregation of dutiable transactions 7
7. Trust exemptions 8
8. Mortgage duty 8
9. Motor vehicle duty 9
10. New section 217A inserted 11
217A. Assessment of duty 11
11. Repeal of registered used car dealer provisions 12
12. Refund of motor vehicle duty 12
13. Transitional provisions--mortgage duty 12
14. Transitional provisions--motor vehicle duty 13
11. Provisions relating to Chapter 9 (Motor vehicle duty) 13
15. Transitional provisions--refunds 13
17. State Taxation Legislation (Further Amendment)
Act 2002 13
PART 3--LAND TAX ACT 1958 14
16. New method for determining the unimproved value of land
for land tax purposes 14
17. Exemption of land used for agricultural shows and similar
activities 16
18. Consequential amendment of Subordinate Legislation
Act 1994 17
i
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Clause Page
PART 4--PAY-ROLL TAX ACT 1971 18
19. Exemption for schools 18
20. Statute law revision 19
ENDNOTES 20
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541265B.I1-18/4/2002 BILL LA CIRCULATION 22-10-2004
PARLIAMENT OF VICTORIA
Initiated in Assembly 17 April 2002
A BILL
to make further miscellaneous amendments to the Duties Act 2000,
the Land Tax Act 1958 and the Pay-roll Tax Act 1971 and for other
purposes.
State Taxation Legislation (Further
Amendment) Act 2002
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The main purpose of this Act is--
(a) to amend the Duties Act 2000--
1
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
PARt 1--preliminary
s. 2
(i) with respect to dutiable transactions,
exemptions for trusts and mortgage
duty;
(ii) to revise motor vehicle duty, including
5 the repeal of provisions for registration
of used car dealers;
(b) to amend the Land Tax Act 1958--
(i) to discontinue the use of equalization
factors and introduce a new method for
10 determining the value of land for land
tax purposes;
(ii) to exempt land used for agricultural
shows and similar activities;
(c) to amend the Pay-roll Tax Act 1971 with
15 respect to the exemption for wages paid by
schools.
2. Commencement
(1) This Part, Part 3 (other than section 17) and
sections 6, 7(1), 8(1) and (2) and 15 come into
20 operation on the day after the day on which this
Act receives the Royal Assent.
(2) Sections 3(1) and (3), 4, 5, 7(2), 8(3) and 13 are
deemed to have come into operation on 1 July
2001.
25 (3) Section 17 is deemed to have come into operation
on 1 January 2002.
(4) The remaining provisions of this Act come into
operation on 1 July 2002.
__________________
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 3
PART 2--DUTIES ACT 2000
See:
3. Definitions Act No.
79/2000.
(1) In section 3(1) of the Duties Act 2000-- Reprint No. 1
as at
(a) for the definition of "mortgage-backed 15 July 2001
5 security" substitute-- and
amending
Act Nos
' "mortgage-backed security" means--
27/2001,
48/2001 and
(a) an interest in a trust that entitles 79/2001.
the holder of or beneficial owner LawToday:
www.dms.
under the interest-- dpc.vic.
gov.au
10 (i) to the whole or any part of
the rights or entitlements of a
mortgagee and any other
rights or entitlements in
respect of a mortgage or any
15 money payable by the
mortgagor under the
mortgage (whether the
money is payable to the
holder of or beneficial owner
20 under the interest on the
same terms and conditions as
under the mortgage or not);
or
(ii) to the whole or any part of
25 the rights or entitlements of a
mortgagee and any other
rights or entitlements in
respect of a pool of
mortgages or any money
30 payable by mortgagors under
those mortgages (whether the
money is payable to the
holder of or beneficial owner
under the interest on the
35 same terms and conditions as
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 3
under the mortgages or not);
or
(iii) to payments that are derived
substantially or, if the
5 regulations prescribe the
extent, to the prescribed
extent, from the income or
receipts of a pool of
mortgages--
10 and that may, in addition, entitle
the holder or beneficial owner to a
transfer or assignment of the
mortgage or mortgages; or
(b) a debt security (whether or not in
15 writing) the payments under
which by the person who issues or
makes the debt security are
derived substantially or, if the
regulations prescribe the extent, to
20 the prescribed extent, from the
income or receipts of a pool of
mortgages; or
(c) any of the following--
(i) an interest in a trust creating,
25 conferring or comprising a
right or interest (whether
described as a unit, bond or
otherwise) of or on a
beneficiary in a scheme
30 under which any profit or
income in which the
beneficiaries participate
arises from the acquisition,
holding, management or
35 disposal of prescribed
property, or any instrument
4
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 3
that evidences such a right or
interest;
(ii) a security (whether or not in
writing) the payments under
5 which by the person who
issues or makes the security
are derived substantially
from the income or receipts
of prescribed property;
10 (iii) an interest in a trust, a debt
security (whether or not in
writing), an instrument or
property that creates an
interest in or charge over an
15 interest in a trust, a debt
security (whether or not in
writing) or other instrument
or property, to which
paragraph (a) or (b) or sub-
20 paragraph (i) or (ii) of this
paragraph applies--
but does not include an instrument or
property comprising--
(d) a mortgage; or
25 (e) the transfer of a mortgage; or
(f) a declaration of trust; or
(g) an instrument of a class or
description of instruments, or
property of a class or description
30 of property, prescribed not to be a
mortgage-backed security for the
purposes of this definition;';
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 4
(b) after the definition of "premium" insert--
' "prescribed property" means any of the
following--
(a) cash;
5 (b) investments of a kind referred to
in section 4(1)(a), (b), (c), (d), (e),
(f), (g), (h), (i), (ia), (j), (k) or (o)
of the Trustee Act 1958 as in
force immediately before the
10 commencement of section 4 of the
Trustee and Trustee Companies
(Amendment) Act 1995;'.
(2) In section 3(1) of the Duties Act 2000, the
definition of "registered used car dealer" is
15 repealed.
(3) In section 3(2) of the Duties Act 2000, paragraphs
(a), (b) and (c) are repealed.
4. Dutiable transactions and dutiable property
In the Duties Act 2000--
20 (a) in section 7(1)(b)(vi), for "an estate in land"
substitute "dutiable property";
(b) in section 10(1)(d), for "held or used in
connection with a dutiable transaction in
respect of any estate in land" substitute ", if
25 the subject of an arrangement that includes a
dutiable transaction over an estate in land";
(c) in section 11, sub-section (2) is repealed.
5. No double duty
At the end of section 17 of the Duties Act 2000
30 insert--
"(2) No duty is chargeable under this Chapter on
a transfer to a trustee of dutiable property
subject to a declaration of trust if ad valorem
6
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 6
duty has been paid on the declaration of trust
in respect of the same dutiable property.
(3) No duty is chargeable under this Chapter on
a declaration of trust that declares the same
5 trusts as those upon and subject to which the
same dutiable property was transferred to the
person declaring the trust if ad valorem duty
has been paid on the transfer.".
6. Aggregation of dutiable transactions
10 (1) In section 24(1) of the Duties Act 2000--
(a) for paragraph (a) substitute--
"(a) either--
(i) in the case of dutiable transactions
that are transfers on a sale of an
15 item or part of dutiable property--
the contracts of sale are entered
into within 12 months; or
(ii) in any other case--the dutiable
transactions occur within
20 12 months; and";
(b) paragraph (b) is repealed.
(2) In section 24 of the Duties Act 2000, for sub-
section (3) substitute--
"(3) The dutiable value of aggregated dutiable
25 property is the sum of the dutiable values of
the items or parts of the dutiable property as
at--
(a) in the case of a transfer on a sale of the
item or part--the time the contract of
30 sale was entered into;
(b) in any other case--the time the dutiable
transaction relating to the item or part
occurred.".
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 7
7. Trust exemptions
(1) In section 33(2) of the Duties Act 2000, after
"special trustee" insert "solely".
(2) In section 34(1) of the Duties Act 2000--
5 (a) in paragraph (a)--
(i) after "identified dutiable property"
insert "or marketable securities
referred to in section 10(2)";
(ii) in sub-paragraphs (i) and (ii), after
10 "dutiable property" insert "or
marketable securities";
(b) for paragraph (b) substitute--
"(b) a transfer of dutiable property or
marketable securities referred to in
15 section 10(2) from an apparent
purchaser to the real purchaser in a case
where dutiable property or marketable
securities are vested in an apparent
purchaser upon trust for the real
20 purchaser who provided the money for
the purchase of the dutiable property or
marketable securities.".
8. Mortgage duty
(1) In section 152 of the Duties Act 2000, after sub-
25 section (4) insert--
"(5) A reference in sub-section (3) to land does
not include a reference to an interest in land
that is held by way of security.".
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 9
(2) At the end of section 165 of the Duties Act 2000
insert--
"(2) A collateral mortgage that no longer secures
an amount secured by a mortgage,
5 instrument or mortgage package mentioned
in sub-section (1) is not security for another
advance unless mortgage duty for the
amount of the other advance is paid.".
(3) In section 166(1) of the Duties Act 2000, for "an
10 earlier duly stamped mortgage to the same
borrower" substitute "an earlier mortgage to the
same borrower duly stamped under this or a
corresponding Act".
9. Motor vehicle duty
15 (1) In section 215 of the Duties Act 2000, for sub-
section (2) substitute--
"(2) A person who knowingly states in a
statement of dutiable value a value that is
less than the dutiable value of the motor
20 vehicle is liable to a penalty of an amount
equal to double the difference between the
amount of duty payable on the correct
dutiable value and the amount of duty paid.
(3) The penalty imposed by sub-section (2) is in
25 addition to any penalty tax and interest
payable under the Taxation Administration
Act 1997.
(4) Section 52 of the Taxation Administration
Act 1997 does not apply to the statement of
30 dutiable value.
(5) The Commissioner, in such circumstances as
the Commissioner considers appropriate,
may remit the penalty imposed by sub-
section (2) by any amount.".
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 9
(2) In section 216 of the Duties Act 2000, for sub-
section (2) substitute--
"(2) Duty on an application for transfer of
registration of a motor vehicle is payable--
5 (a) in the case of a vehicle acquired from a
licensed motor car trader--by the
acquirer and the licensed motor car
trader, who are jointly and severally
liable to pay the duty;
10 (b) in any other case--by the acquirer of
the vehicle.".
(3) In section 216(3) of the Duties Act 2000--
(a) in paragraph (a), for "registered used car
dealer" substitute "licensed motor car
15 trader";
(b) in paragraph (b), for "dealer" substitute
"trader".
(4) In section 216 of the Duties Act 2000, after sub-
section (3) insert--
20 "(4) A person referred to in sub-section (3) is
entitled to a refund of any amount paid to the
licensed motor car trader in respect of duty
that is in excess of the amount of duty
chargeable under this Chapter on the
25 application for transfer of registration of the
vehicle to the person.".
(5) At the end of section 217 of the Duties Act 2000
insert--
"(2) If duty chargeable under this Chapter on an
30 application for transfer of registration of a
motor vehicle is not paid on or before the
making or lodging of the application, the
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 10
person required by law to make or lodge the
application is liable to a penalty of--
(a) an amount equal to the amount of duty
chargeable on the application and
5 interest on that amount at the rate of
20% per annum from the day on which
the application was made or lodged; or
(b) $25--
whichever is the greater.
10 (3) The penalty imposed by sub-section (2) is in
addition to any penalty tax and interest
payable under the Taxation Administration
Act 1997.
(4) The Commissioner, in such circumstances as
15 the Commissioner considers appropriate,
may remit the penalty imposed by sub-
section (2) by any amount.".
10. New section 217A inserted
After section 217 of the Duties Act 2000 insert--
20 "217A. Assessment of duty
(1) On the making or lodging of an application
for registration or transfer of registration of a
motor vehicle--
(a) the Commissioner is taken to have
25 made an assessment of duty on the
application; and
(b) the application is taken to be a notice of
assessment of the duty; and
(c) the Commissioner is taken to have
30 served the notice of assessment on the
person who is liable to pay the duty.
(2) The liability for duty on the application is the
amount worked out by applying the rate of
11
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 11
duty to the dutiable value of the vehicle as at
the date of the application.".
11. Repeal of registered used car dealer provisions
In the Duties Act 2000--
5 (a) in Chapter 9, Part 2 is repealed;
(b) insert the following heading to
section 230--
"Special dealers--trading stock,
demonstrator vehicles and driver
10 education";
(c) in section 230, for "registered used car
dealer" (where twice occurring) substitute
"special dealer";
(d) in section 231, after "registration" (where
15 twice occurring) insert "or transfer of
registration".
12. Refund of motor vehicle duty
In section 240(1) of the Duties Act 2000, after
paragraph (c)(iii) insert--
20 "; or
(d) after the duty is paid the application is
found--
(i) to be void in law from the beginning; or
(ii) to have been made in error.".
25 13. Transitional provisions--mortgage duty
In clause 9 of Schedule 2 to the Duties Act 2000,
after sub-clause (5) insert--
"(6) Sub-clause (4) does not apply to the extent that duty
has been paid under a corresponding Act on an
30 amount to which that sub-clause would otherwise
apply.".
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 2--duties act 2000
s. 14
14. Transitional provisions--motor vehicle duty
In Schedule 2 to the Duties Act 2000, for
clause 11 substitute--
"11. Provisions relating to Chapter 9 (Motor vehicle duty)
5 The amendments made to Chapter 9 by sections 9 and
10 of the State Taxation Legislation (Further
Amendment) Act 2002 apply with respect to
applications for registration or transfer of registration
of motor vehicles made or lodged on or after 1 July
10 2002.".
15. Transitional provisions--refunds
In Schedule 2 to the Duties Act 2000, after
clause 16 insert--
"17. State Taxation Legislation (Further Amendment)
15 Act 2002
A person is entitled to a refund of any amount paid as
duty before the commencement of section 15 of the
State Taxation Legislation (Further Amendment)
Act 2002 that was not payable under this Act as
20 amended by sections 3(1) and (3), 4, 5, 7(2), 8(3) and
13 of that Act.".
__________________
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 3--land tax act 1958
s. 16
PART 3--LAND TAX ACT 1958
See: 16. New method for determining the unimproved value of
Act No.
land for land tax purposes
6289/1958.
Reprint No. 11
(1) In section 3 of the Land Tax Act 1958--
as at
18 October
5 (a) in sub-section (1), insert the following
2001
and
definitions--
amending
Act No.
' "applicable general valuation", in relation
79/2001.
LawToday: to a tax year, means the last general
www.dms.
valuation returned to the municipal
dpc.vic.
10 gov.au council before 1 January in the year
immediately preceding the tax year;
"return date", in relation to a valuation, is
the date on which that valuation is
returned to the municipal council by the
15 person who carried out that valuation;
"site value" has the same meaning as in the
Valuation of Land Act 1960;
"subsequent general valuation", in relation
to a tax year, means a general valuation
20 returned to the municipal council after
the applicable general valuation for that
tax year but before 1 January in the tax
year;
"supplementary valuation" means a
25 valuation which is made under section
13DF of the Valuation of Land Act
1960 and is supplementary to the last
general valuation returned to the
municipal council before 1 January in
30 the year immediately preceding the tax
year;
"tax year" means a year for which tax is
being assessed;';
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541265B.I1-18/4/2002 BILL LA CIRCULATION 22-10-2004
State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 3--land tax act 1958
s. 16
(b) in sub-section (2)(a), before "the unimproved
value" insert "in respect of any tax year up
to and including 2002,";
(c) in sub-section (2), after paragraph (a)
5 insert--
"(ab) in respect of any tax year after 2002--
(i) if the applicable general valuation
has not been used for the purposes
of assessing tax in a previous year,
10 the unimproved value of any land
is an amount equal to the site
value of the land as at the relevant
date;
(ii) if the applicable general valuation
15 has been used for the purposes of
assessing tax in a previous year,
the unimproved value of any land
is an amount equal to the site
value of the land as at the relevant
20 date multiplied by the prescribed
indexation factor (if any) applying
to the land for the tax year;".
(2) In section 3 of the Land Tax Act 1958, after sub-
section (2A) insert--
25 "(3) For the purposes of sub-section (2)(ab)(ii),
the prescribed indexation factor for land
within an area is the factor (if any)
prescribed by the regulations for land within
that area for the tax year, being a factor
30 determined by the Valuer-General that in his
or her opinion reflects half the aggregate
movement in the site value of land classified
residential, commercial or industrial within
that area between the applicable general
35 valuation and the subsequent general
valuation.
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 3--land tax act 1958
s. 17
(3A) In determining a factor for the purposes of
sub-section (3), the Valuer-General is to
disregard the value of land that is exempt
from land tax as a principal place of
5 residence.
(3B) For the purposes of sub-section (3A), the
Valuer-General may rely on any information
provided to him or her by the
Commissioner.".
10 (3) In section 3 of the Land Tax Act 1958--
(a) in sub-section (4), after "subsequent year"
insert "up to and including the year
commencing on 1 January 2002";
(b) sub-section (6) is repealed.
15 17. Exemption of land used for agricultural shows and
similar activities
In section 9(1) of the Land Tax Act 1958, after
paragraph (f) insert--
"(fa) land which--
20 (i) is vested in, or held in trust for, a body
(whether incorporated or not)
established for the purposes of
conducting agricultural shows, farm
machinery field days or activities of a
25 similar nature that is not carried on for
the purposes of profit or gain to its
individual members; and
(ii) is used for the purposes of the body;".
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 3--land tax act 1958
s. 18
18. Consequential amendment of Subordinate Legislation
Act 1994
See:
In section 8(1)(c) of the Subordinate Legislation Act No.
Act 1994, for "equalisation factor for the 104/1994.
5 Reprint No. 1
purposes" substitute "indexation factor for the as at
purposes of section 3(2)(ab)(ii)". 12 June 1997
and
amending
Act Nos
46/1998,
74/2000,
98/2000 and
2/2001.
LawToday:
www.dms.
dpc.vic.
gov.au
__________________
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 4--pay-roll tax act 1971
s. 19
PART 4--PAY-ROLL TAX ACT 1971
See: 19. Exemption for schools
Act No.
8154/1971.
In section 10(1) of the Pay-roll Tax Act 1971--
Reprint No. 8
as at
(a) for paragraph (da) substitute--
15 July 2001
and
5 "(da) by a school or college that--
amending
Act No.
(i) is carried on by a body corporate,
82/2001.
LawToday:
society or association otherwise
www.dms.
than for the purpose of profit or
dpc.vic.
gov.au
gain to the individual members of
10 the body corporate, society or
association and is not carried on
by or on behalf of the State of
Victoria; and
(ii) provides education predominantly
15 at or below the secondary level of
education and to students, the
majority of whom are aged under
19 years of age; and
(iii) was in existence as such a school
20 or college before 27 May 1997--
being wages paid or payable to a person
in relation to the provision of education
at or below the secondary level of
education;";
25 (b) after paragraph (da) insert--
"(daa) by a school or college within the
meaning of paragraph (da) as in force
immediately before the commencement
of section 19(a) of the State Taxation
30 Legislation (Further Amendment)
Act 2002, being wages referred to in
that paragraph;";
18
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
part 4--pay-roll tax act 1971
s. 20
(c) in paragraph (db), after "paragraph (da)"
insert "or (daa)".
20. Statute law revision
In section 9A(3A)(j) of the Pay-roll Tax Act
5 1971, in paragraph (a) of the substituted
section 11B(2), for "under section 19" substitute
"otherwise than under this section".
19
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State Taxation Legislation (Further Amendment) Act 2002
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
20
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