Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 18

Financial institutions duty

18. Financial institutions duty



(1) Subject to this Act, a financial institution that receives money in
Victoria during a month is liable to pay financial institutions duty in
respect of each such receipt of money.

(2) The amount of financial institutions duty payable by a financial
institution in respect of each receipt of money is-

   (a)  0×06 per centum of the money received; or







   (b)  $1200-



whichever is the less.

(2A) Subject to this Act, a Victorian broker who receives or retains broker
receipts during a month is liable to pay financial institutions duty in
respect of those broker receipts.

(2B) The amount of financial institutions duty payable by a financial
institution that is a Victorian broker in respect of each broker receipt is
0×06 per centum of that receipt.

(2C) Subsection (2B) does not apply to a broker receipt, or class of broker
receipts, that is prescribed as a broker receipt to which, or class of broker
receipts to which, this Act does not apply.

(3) Subsection (1) does not apply to-

   (a)  a receipt of money by a bank that is a registered financial
        institution for the credit of an exempt bank account or an account
        referred to in section 32(2)(g) kept by it;

   (b)  a receipt of money, being a bill of exchange (other than a cheque) or
        a promissory note;



   (c)  a receipt of money in the course of short-term dealings during a month
        by a registered financial institution that is a registered short-term
        money market operator, being a receipt that is taken into
        consideration for the purposes of ascertaining the average daily
        liability of the financial institution during that month;

   (d)  a receipt of money by a registered financial institution, not being a
        bank, for the credit of an account kept by it of-

   (i)  a Department of the Government of the Commonwealth, a State or a
        Territory of the Commonwealth; or

   (ii) a council of a municipality otherwise than in the course of a business
        undertaking within the meaning of section 29;

   (e)  a receipt of money by a bank that is a registered financial
        institution from another such bank for the purposes of settling a
        balance due to the bank from the other bank in accordance with
        section 64 of the Banking Act 1959 of the Commonwealth as amended and
        in force for the time being;

   (f)  a receipt of money by a bank that is a registered financial
        institution from another bank or from a person carrying on banking or
        financial business in a place outside Australia, being the proceeds of
        dealing as principal in foreign currency;

   (g)  a receipt of money, being cash or a cheque, by a registered financial
        institution in exchange for which the financial institution forthwith
        gives, to the person from whom it received the money, cash or a cheque
        of the same value as the money received, being a receipt in respect of
        which an entry is not made in an account kept by the financial
        institution in the name of that person;





   (ga) a receipt of money by a registered financial institution in relation
        to any one of, or a combination of, the following transactions (not
        being a receipt comprising the crediting of an account of a customer
        of a registered financial institution with the proceeds of any such
        transaction or transactions)-

   (i)  an interest rate, currency or commodity swap;

   (ii) an interest rate, currency or commodity option;

   (iii) a forward exchange rate agreement;

   (iv) a forward interest rate agreement;

   (v)  a futures contract traded on a Futures Exchange within the meaning of
        the Corporations Law;7

   (h)  a receipt of money by a dealer (who is not a Victorian broker) as
        agent in respect of the issue of securities, bills of exchange (other
        than cheques), promissory notes or certificates of deposit (not
        including an amount that is a fee or commission);

        (i)    a receipt of money by a dealer (who is not a Victorian broker)
               in respect of a sale or purchase of securities that is liable
               to duty under subdivision (4), (4A) or (4AA) of Division 3 of
               Part II of the Stamps Act 1958 (not including an amount that is
               a fee or commission);

(ia) a receipt of money by a Victorian broker in respect of trading or dealing
in securities in the ordinary course of the business of the broker;

(ib) a receipt by a Victorian broker that is a broker receipt;



   (j)  a receipt of money-

   (i)  by a management company from a person who is the trustee or
        representative for the purposes of a deed relating to the management
        company in accordance with Division 5 of Part 7.12 of the Corporations
        Law or a corresponding law in force in another State or in a
        Territory; or8

   (ii) by such a trustee or representative from such a management company;

   (k)  a receipt of money by a trustee company from the estate of a deceased
        person committed to the management of the trustee company;



   (ka) a receipt of money by a registered financial institution that is an
        offshore banking unit (within the meaning of Division 11A of Part III
        of the Income Tax Assessment Act 1936 of the Commonwealth as amended
        and in force for the time being) in relation to an offshore banking
        activity (within the meaning of section 121D of that Act of the
        Commonwealth);

   (l)  a receipt of money by a person who is a financial institution by
        reason only that he is a credit provider, other than a receipt that is
        a repayment of the whole or any part of the amount financed under a
        credit contract or a payment of an amount owing to the credit provider
        under a continuing credit contract;

   (m)  a receipt of money by a financial institution solely by reason of the
        reversing of an entry previously made in an account kept by the
        financial institution in error;

   (ma) a receipt of money by a financial institution solely by reason of an
        amount paid in error into an account kept by the financial
        institution;

   (mb) a receipt of money by a financial institution in respect of a cheque
        that is dishonoured;



   (n)  a receipt of money by a financial institution in consideration of the
        supply of goods by the financial institution (otherwise than under a
        credit contract or in the course of carrying on rental business within
        the meaning of section 131AA of the Stamps Act 1958); or

   (o)  a receipt, or class of receipts, that is prescribed as a receipt to
        which, or class of receipts to which, this Act does not apply.

(4) For the purposes of paragraph (g) of subsection (3), the value of a cheque
is the nominal or face value of the cheque.