Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 7

Short-term dealings

7. Short-term dealings



(1) For the purposes of this Act, an amount is received by a person in the
course of short-term dealings where-

   (a)  the amount is an amount of cash of not less than $50 000 received by
        that person by way of loan, advance or deposit repayable by him-

   (i)  at call;

   (ii) within 185 days; or

   (iii) at call after a term of not more than 185 days- not being an amount
        received by a bank by way of deposit repayable on demand or for the
        credit of a current account kept by it for another person;

   (b)  the amount is a repayment of not less than $50 000 of a loan, advance
        or deposit made by that person within 185 days before the amount is
        repaid;

   (c)  the amount is an amount (not including a fee or commission) in respect
        of the issue of securities, bills of exchange (other than cheques),
        promissory notes or certificates of deposit the term of which is not
        more than 185 days;

   (d)  the amount is an amount (not including a fee or commission) in respect
        of a sale or purchase of securities the term of which is not more than
        185 days, being a sale or purchase that is not liable to duty under
        subdivision (4) or (4A) of Division 3 of Part II of the Stamps Act
        1958;

   (e)  the amount is the proceeds of the sale by that person of a bill of
        exchange or a promissory note before maturity and not later than 185
        days after its acquisition by that person, not being a bill of
        exchange or a promissory note issued by that person;

   (f)  the amount is the proceeds of the sale by that person of securities or
        certificates of deposit before maturity and not later than 185 days
        after their acquisition by that person; or

   (g)  the amount is the amount received by that person on maturity of
        securities, bills of exchange, promissory notes or certificates of
        deposit acquired by him within 185 days before the amount was
        received.





(2) For the purposes of this Act, the average daily liability of a person
during a month in respect of short-term dealings is-

   (a)  where the person is a registered financial institution, not being a
        person entitled to make application under section 26 for approval of
        an account as a short-term dealing account-the amount calculated in
        accordance with the formula where-

   (i)  A is the sum of the daily closing balances of the liability of the
        financial institution to each person in respect of amounts received
        whether within or outside Victoria from that person in the course of
        short-term dealings, other than balances that are less than $50 000;
        and

   (ii) B is the number of days in the month; and

   (b)  where the person is a person in whose name a short-term dealing
        account is kept by a bank-the amount calculated in accordance with the
        formula where-

   (i)  A is the sum of the daily closing balances of the liability of the
        bank to that person under that account; and

   (ii) B is the number of days in the month.

(3) In paragraphs (c), (e) and (g) of subsection (1), a reference to a bill of
exchange, promissory note or certificate of deposit is a reference to a bill
of exchange, promissory note or certificate of deposit the face or nominal
value of which is not less than $50 000.

(4) In subparagraph (i) of paragraph (a) of subsection (2), a reference to an
amount received does not include an amount that is included in a return by the
financial institution under section 35.

(5) A reference in subsection (2)(a)(i) to an amount received does not, in
relation to a Victorian broker, include a receipt of money by the broker in
respect of trading or dealing in securities in the ordinary course of the
business of the broker or a receipt by the broker that is a broker receipt.