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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
First Home Owner Grant Amendment Bill 2009
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Act amended 2
Part 2 -- Amendments for first home
owners boost
4. Section 14A replaced 3
14A. Terms used 3
5. Section 14B amended 4
6. Section 19 amended 6
7. Section 28 amended 6
Part 3 -- Amendments to cap value
of eligible transactions
8. Section 3 amended 8
9. Section 14 amended 9
10. Sections 14AA to 14AE inserted 10
14AA. Commencement and completion of
transaction 10
14AB. Term used: consideration 11
14AC. Term used: total value 11
14AD. Term used: cap amount 12
14AE. Term used: unencumbered value 13
11. Section 18 amended 14
12. Section 26 amended 15
13. Section 41A inserted 16
41A. Power to have valuation made 16
14. Section 52 amended 16
15. Other provisions amended 17
021--1 page i
First Home Owner Grant Amendment Bill 2009
Contents
Part 4 -- Other amendments
16. Section 26 amended 18
17. Section 30 amended 18
18. Section 32 replaced 20
32. Payment following determination of review 20
19. Section 55 amended 21
page ii
Western Australia
LEGISLATIVE ASSEMBLY
First Home Owner Grant Amendment Bill 2009
A Bill for
An Act to amend the First Home Owner Grant Act 2000.
The Parliament of Western Australia enacts as follows:
page 1
First Home Owner Grant Amendment Bill 2009
Part 1 Preliminary
s. 1
1 Part 1 -- Preliminary
2 1. Short title
3 This is the First Home Owner Grant Amendment Act 2009.
4 2. Commencement
5 This Act comes into operation, or is deemed to have come into
6 operation, as follows --
7 (a) sections 1 and 2 come into operation on the day on
8 which this Act receives the Royal Assent (assent day);
9 (b) section 3 and Part 2 are deemed to have come into
10 operation on 14 October 2008;
11 (c) Part 3 comes into operation on a day fixed by
12 proclamation;
13 (d) Part 4 comes into operation on the day after assent day.
14 3. Act amended
15 This Act amends the First Home Owner Grant Act 2000.
page 2
First Home Owner Grant Amendment Bill 2009
Amendments for first home owners boost Part 2
s. 4
1 Part 2 -- Amendments for first home owners boost
2 4. Section 14A replaced
3 Delete section 14A and insert:
4
5 14A. Terms used
6 In this Subdivision --
7 cut-off date, of a special eligible transaction that is a
8 class 4 or class 5 eligible transaction, means whichever
9 is the later of --
10 (a) 30 June 2009; or
11 (b) such date, if any, as is prescribed for the
12 purposes of this definition;
13 established home means a home that is not a new
14 home or a substantially renovated home;
15 new home means a home that has not been previously
16 occupied or sold as a place of residence;
17 relevant date of a special eligible transaction means --
18 (a) in relation to a class 1 eligible transaction --
19 1 May 2003; or
20 (b) in relation to a class 2 eligible transaction --
21 1 January 2004; or
22 (c) in relation to a class 3 eligible transaction --
23 1 July 2004; or
24 (d) in relation to a class 5 eligible transaction --
25 the date that is 18 months after the cut-off date
26 applicable at the commencement date of the
27 eligible transaction;
28 special eligible transaction means an eligible
29 transaction of a class referred to in section 14B;
page 3
First Home Owner Grant Amendment Bill 2009
Part 2 Amendments for first home owners boost
s. 5
1 substantially renovated home means a renovated home
2 that is the subject of a contract for purchase where --
3 (a) the sale of the home under that contract is,
4 under the A New Tax System (Goods and
5 Services Tax) Act 1999 (Commonwealth), a
6 taxable supply as a sale of new residential
7 premises within the meaning of
8 section 40-75(1)(b) of that Act; and
9 (b) the home, as so renovated, has not been
10 previously occupied or sold as a place of
11 residence.
12
13 5. Section 14B amended
14 (1) Delete section 14B(2) to (4) and insert:
15
16 (2) A class 4 eligible transaction is an eligible transaction
17 the commencement date of which is not before
18 14 October 2008 and not after the cut-off date that is a
19 contract for the purchase of an established home.
20 (3) A class 5 eligible transaction is an eligible transaction
21 the commencement date of which is not before
22 14 October 2008 and not after the cut-off date that is --
23 (a) a contract for the purchase of a new home or a
24 substantially renovated home; or
25 (b) a comprehensive home building contract for a
26 new home if --
27 (i) the building work begins within
28 26 weeks after the commencement date;
29 and
30 (ii) the contract provides to the effect that
31 the building work must be completed
32 within 18 months after it begins or, if
33 the contract does not provide for a
page 4
First Home Owner Grant Amendment Bill 2009
Amendments for first home owners boost Part 2
s. 5
1 completion date for the building work, it
2 is completed within 18 months after it
3 begins;
4 or
5 (c) the building of a new home by an owner builder
6 if the eligible transaction is completed before
7 the relevant date.
8 (4) The Commissioner may extend the period within which
9 building work is to begin under subsection (3)(b)(i) or
10 be completed under subsection (3)(b)(ii), (3)(c) or
11 (6)(a) if the Commissioner is satisfied that the delay is
12 caused by circumstances beyond the control of the
13 parties.
14
15 (2) Delete section 14B(6) and insert:
16
17 (6) The following eligible transactions are not special
18 eligible transactions --
19 (a) a contract for the purchase of a new home or a
20 substantially renovated home on a proposed lot
21 on a proposed plan of subdivision of land
22 (including a proposed strata plan or
23 survey-strata plan within the meaning of the
24 Strata Titles Act 1985) unless the contract
25 provides to the effect that the building work
26 must be completed before the relevant date or,
27 if the contract does not provide for a
28 completion date for the building work, it is
29 completed before the relevant date;
30 (b) a contract that the Commissioner is satisfied
31 replaces a contract to purchase the same home,
32 or replaces a comprehensive home building
33 contract to build the same or a substantially
page 5
First Home Owner Grant Amendment Bill 2009
Part 2 Amendments for first home owners boost
s. 6
1 similar home, if the replaced contract was
2 made --
3 (i) before 9 March 2001, in respect of a
4 class 1, class 2 or class 3 eligible
5 transaction; or
6 (ii) before 14 October 2008, in respect of a
7 class 4 or class 5 eligible transaction.
8 6. Section 19 amended
9 (1) In section 19(2) delete "section 14B" and insert:
10
11 section 14A
12
13 (2) In section 19(3) in the definition of relevant amount:
14 (a) in paragraph (b) delete "$10 000." and insert:
15
16 $10 000; or
17
18 (b) after paragraph (b) insert:
19
20 (c) in the case of a class 4 eligible transaction
21 within the meaning of section 14B -- $14 000;
22 or
23 (d) in the case of a class 5 eligible transaction
24 within the meaning of section 14B -- $21 000.
25 7. Section 28 amended
26 Delete section 28(1) and insert:
27
28 (1) An objection to a decision on the application is to be
29 lodged --
30 (a) within 60 days after the date on which notice of
31 the decision is given to the objector; or
page 6
First Home Owner Grant Amendment Bill 2009
Amendments for first home owners boost Part 2
s. 7
1 (b) in the case of class 4 or class 5 eligible
2 transaction within the meaning of section 14B,
3 within 60 days after the later of --
4 (i) the date on which notice of the decision
5 is given to the objector; or
6 (ii) the day on which the First Home Owner
7 Grant Amendment Act 2009 receives the
8 Royal Assent.
9
page 7
First Home Owner Grant Amendment Bill 2009
Part 3 Amendments to cap value of eligible transactions
s. 8
1 Part 3 -- Amendments to cap value of
2 eligible transactions
3 8. Section 3 amended
4 (1) In section 3(1) delete the definitions of:
5 commencement date
6 completed
7 consideration
8 (2) In section 3(1) insert in alphabetical order:
9
10 cap amount has the meaning given by section 14AD;
11 commencement date, in relation to a transaction, has
12 the meaning given by section 14AA;
13 completed, in relation to a transaction, has the meaning
14 given by section 14AA;
15 consideration, in relation to a transaction, has the
16 meaning given by section 14AB;
17 property means --
18 (a) a home; or
19 (b) land; or
20 (c) a relevant interest in land;
21 total value, in relation to a transaction, has the meaning
22 given by section 14AC(1);
23 transaction means --
24 (a) a contract for the purchase of a home in the
25 State; or
26 (b) a comprehensive home building contract made
27 by the owner of land in the State, or a person
28 who will on completion of the contract be the
29 owner of land in the State, to have a home built
30 on the land; or
page 8
First Home Owner Grant Amendment Bill 2009
Amendments to cap value of eligible transactions Part 3
s. 9
1 (c) the building of a home in the State by an owner
2 builder;
3 unencumbered value has the meaning given by
4 section 14AE(1).
5
6 (3) In section 3(1) in the definition of the home delete "relates."
7 and insert:
8
9 relates;
10
11 9. Section 14 amended
12 (1) Delete section 14(1) and insert:
13
14 (1) An eligible transaction is a transaction --
15 (a) with a commencement date on or after
16 1 July 2000; and
17 (b) that has a total value that is less than or equal to
18 any cap amount that applies --
19 (i) in the case of a contract -- on the
20 commencement date; or
21 (ii) in the case of the building of a home by
22 an owner builder -- on the date the
23 transaction is completed.
24
25 (2) Delete section 14(5) to (8) and insert:
26
27 (5) If the commencement date of the building of a home by
28 an owner builder is before the date the First Home
29 Owner Grant Amendment Act 2009 section 9 comes
30 into operation no cap amount applies to the transaction.
31
page 9
First Home Owner Grant Amendment Bill 2009
Part 3 Amendments to cap value of eligible transactions
s. 10
1 10. Sections 14AA to 14AE inserted
2 At the end of Part 2 Division 3 Subdivision 1 insert:
3
4 14AA. Commencement and completion of transaction
5 (1) The commencement date of a transaction is --
6 (a) in the case of a contract -- the date when the
7 contract is made; or
8 (b) in the case of the building of a home by an
9 owner builder --
10 (i) the date when laying the foundations for
11 the home begins; or
12 (ii) another date (on or after 1 July 2000)
13 the Commissioner considers appropriate
14 in the circumstances of the case.
15 (2) Subject to any qualifications prescribed by the
16 regulations, a transaction is completed when --
17 (a) in the case of a contract for the purchase of a
18 home --
19 (i) the purchaser becomes entitled to
20 possession of the home under the
21 contract; and
22 (ii) if the purchaser is to obtain a registered
23 title to the land on which the home is
24 situated -- the necessary steps to obtain
25 registration of the purchaser's title have
26 been taken;
27 or
28 (b) in the case of a contract to have a home built --
29 the building is ready for occupation as a place
30 of residence; or
31 (c) in the case of the building of a home by an
32 owner builder -- the building is ready for
33 occupation as a place of residence.
page 10
First Home Owner Grant Amendment Bill 2009
Amendments to cap value of eligible transactions Part 3
s. 10
1 (3) If a person purchases a movable building and intends to
2 use it as a place of residence on land in which the
3 person has a relevant interest but on which the building
4 is not situated at the time of purchase --
5 (a) this Act applies as if the person were an owner
6 builder building a home on the land; and
7 (b) the commencement date of the transaction is
8 taken to be the date of the contract to purchase
9 the movable building; and
10 (c) the transaction is taken to be completed when
11 the movable building is ready for occupation as
12 a place of residence on land in which the
13 purchaser has a relevant interest.
14 14AB. Term used: consideration
15 The consideration for a transaction is --
16 (a) in the case of a contract for the purchase of a
17 home -- the consideration for the purchase; or
18 (b) in the case of a comprehensive home building
19 contract -- the total consideration payable for
20 the building work; or
21 (c) in the case of the building of a home by an
22 owner builder -- the actual costs to the owner
23 of carrying out the work, excluding any
24 allowance for the owner builder's own labour.
25 14AC. Term used: total value
26 (1) The total value of a transaction is --
27 (a) in the case of a contract for the purchase of a
28 home, the greater of --
29 (i) the consideration for the transaction;
30 and
page 11
First Home Owner Grant Amendment Bill 2009
Part 3 Amendments to cap value of eligible transactions
s. 10
1 (ii) the unencumbered value, at the
2 commencement date, of the property the
3 subject of the transaction;
4 or
5 (b) in the case of a comprehensive home building
6 contract, the amount calculated by adding --
7 (i) the consideration for the transaction;
8 and
9 (ii) the value, at the commencement date, of
10 the relevant interest in the land on
11 which the home is to be built;
12 or
13 (c) in the case of the building of a home by an
14 owner builder, the amount calculated by
15 adding --
16 (i) the unencumbered value, at the date the
17 transaction is completed, of the home;
18 and
19 (ii) the value, at the date the transaction is
20 completed, of the relevant interest in the
21 land on which the home is built.
22 (2) For the purposes of subsections (1)(b)(ii) and (1)(c)(ii)
23 the value of a relevant interest in land is the greater
24 of --
25 (a) the consideration paid for the interest; and
26 (b) the unencumbered value of the interest.
27 14AD. Term used: cap amount
28 The cap amount that applies in respect of a transaction
29 is --
30 (a) $750 000; or
31 (b) if another amount is prescribed for the purposes
32 of this section -- that other amount.
page 12
First Home Owner Grant Amendment Bill 2009
Amendments to cap value of eligible transactions Part 3
s. 10
1 14AE. Term used: unencumbered value
2 (1) The unencumbered value of property is the value of
3 the property determined without regard to --
4 (a) any encumbrance to which the property is
5 subject, whether contingently or otherwise; or
6 (b) any arrangement --
7 (i) the parties to which are not dealing with
8 each other at arm's length; and
9 (ii) that results in the reduction of the value
10 of the property;
11 or
12 (c) any scheme or arrangement for which a
13 significant purpose of any party to the scheme
14 or arrangement was, in the opinion of the
15 Commissioner, the reduction of the value of the
16 property; or
17 (d) where the property is held by a person on trust
18 as guardian for another person who is under a
19 legal disability -- the liabilities of the trust,
20 including the liability to indemnify the trustee.
21 (2) For the purposes of subsection (1)(c), the
22 Commissioner may have regard to --
23 (a) the duration of the scheme or arrangement
24 before the commencement date of the
25 transaction to which the property relates; and
26 (b) whether there is any commercial efficacy to the
27 making of the scheme or arrangement other
28 than to reduce the value of the property; and
29 (c) any other matters the Commissioner considers
30 relevant.
31
page 13
First Home Owner Grant Amendment Bill 2009
Part 3 Amendments to cap value of eligible transactions
s. 11
1 11. Section 18 amended
2 (1) Delete section 18(2)(b) and insert:
3
4 (b) the interests of the State can be adequately
5 protected by conditions requiring repayment of
6 the grant if --
7 (i) the transaction is not completed within a
8 reasonable time; or
9 (ii) on completion of the transaction, the
10 total value of the transaction exceeds the
11 cap amount that applies in respect of the
12 transaction.
13
14 (2) After section 18(2) insert:
15
16 (3) A payment authorised under subsection (2) is made on
17 condition that, if the applicant becomes aware that the
18 total value of the transaction exceeds, or will exceed,
19 the cap amount that applies in respect of the
20 transaction, the applicant must within 30 days after the
21 day on which the applicant becomes so aware --
22 (a) give written notice of that fact to the
23 Commissioner; and
24 (b) either repay the amount of the grant, or make
25 an application under section 52(2) for the
26 Commissioner to approve an arrangement for
27 the repayment of the amount of the grant.
28 (4) In the case of a joint application, each joint applicant is
29 individually liable to comply with subsection (3)(a) and
30 (b), but compliance by any one or more of the joint
31 applicants is taken to be compliance by both or all of
32 them.
page 14
First Home Owner Grant Amendment Bill 2009
Amendments to cap value of eligible transactions Part 3
s. 12
1 (5) The Commissioner may, by written notice, impose a
2 penalty on an applicant if the applicant --
3 (a) does not comply with subsection (3)(b) within
4 the 30 day period mentioned in subsection (3);
5 or
6 (b) does not repay the amount of the grant in
7 accordance with an arrangement approved for
8 the purposes of subsection (3)(b).
9 (6) The amount of a penalty imposed under subsection (5)
10 is not to exceed the amount that the applicant is
11 required to repay under subsection (3).
12 (7) Subject to section 52, the amount of a penalty imposed
13 under subsection (5) must be paid by the applicant
14 within 28 days after the date on which notice of the
15 penalty is given to the applicant.
16
17 12. Section 26 amended
18 In section 26 in the definition of decision on the application:
19 (a) in paragraph (c) before "21(2)" insert:
20
21 18(3) or
22
23 (b) in paragraph (d) before "21(5)" insert:
24
25 18(5),
26
page 15
First Home Owner Grant Amendment Bill 2009
Part 3 Amendments to cap value of eligible transactions
s. 13
1 13. Section 41A inserted
2 After section 40 insert:
3
4 41A. Power to have valuation made
5 (1) In this section --
6 applicant, in relation to a transaction, means a person
7 who made an application in respect of the transaction;
8 licensed valuer means a person licensed under the
9 Land Valuers Licensing Act 1978.
10 (2) For the purposes of determining whether a transaction
11 is an eligible transaction, the Commissioner may --
12 (a) have a valuation made of any property or
13 consideration; or
14 (b) adopt any available valuation of the property or
15 consideration by a licensed valuer that the
16 Commissioner considers appropriate.
17 (3) The Commissioner may have a valuation made, or
18 adopt a valuation, regardless of whether --
19 (a) the Commissioner has required the applicant to
20 provide information under section 40 about the
21 value of the property or consideration; or
22 (b) the applicant has complied with such a
23 requirement.
24
25 14. Section 52 amended
26 In section 52(1)(a) delete "section 21" and insert:
27
28 section 18, 21
29
page 16
First Home Owner Grant Amendment Bill 2009
Amendments to cap value of eligible transactions Part 3
s. 15
1 15. Other provisions amended
2 In the provisions listed in the Table delete "eligible".
3 Table
s. 3(1) def. of de facto partner s. 7(1)
s. 7A s. 7B
s. 12(3) s. 15(5)(a) and (b)
s. 16(3) def. of interested person s. 19(1)(a)
page 17
First Home Owner Grant Amendment Bill 2009
Part 4 Other amendments
s. 16
1 Part 4 -- Other amendments
2 16. Section 26 amended
3 In section 26 delete the definition of decision on the application
4 and insert:
5
6 decision on the application, in relation to an
7 application for a first home owner grant, includes --
8 (a) a decision to vary or reverse an earlier decision;
9 and
10 (b) a requirement under section 51(1) to repay an
11 amount paid on the application; and
12 (c) a requirement to repay an amount paid on an
13 application because of a failure to comply with
14 a condition referred to in section 21(2); and
15 (d) an imposition of a penalty under section 21(5)
16 or 51(2) or (3);
17
18 17. Section 30 amended
19 (1) Before section 30(1) insert:
20
21 (1A) In this section --
22 approved, in relation to a date for a payment or
23 repayment, means the date, on or after the date of the
24 decision on the objection, on which the Commissioner
25 approves the payment or repayment.
26
27 (2) Delete section 30(3) and insert:
28
29 (3) If, as a result of a decision on an objection, a decision
30 not to authorise the payment of a first home owner
31 grant is reversed, interest at the prescribed rate is
page 18
First Home Owner Grant Amendment Bill 2009
Other amendments Part 4
s. 17
1 payable on the amount of the grant from the date of the
2 decision not to authorise the payment to the date
3 approved for the payment.
4 (4) If, as a result of a decision on an objection, an amount
5 of a grant repaid by an applicant is to be repaid to the
6 applicant, the following amounts are payable to the
7 applicant --
8 (a) the amount of the grant repaid by the applicant;
9 (b) any interest paid by the applicant in respect of a
10 written arrangement approved by the
11 Commissioner under section 52 that relates to
12 an amount referred to in paragraph (a);
13 (c) any amount paid by the applicant in respect of
14 the registration or cancellation of registration of
15 a memorial as required by section 60 in
16 connection with the repayment of the grant;
17 (d) interest at the prescribed rate on the amounts
18 payable to the applicant under paragraphs (a) to
19 (c) from the date the amount was paid by the
20 applicant to the date approved for the
21 repayment.
22 (5) If, as the result of a decision on an objection, an
23 amount of penalty paid by an applicant is to be repaid
24 to the applicant, the following amounts are payable to
25 the applicant --
26 (a) the amount of penalty to be repaid;
27 (b) any interest paid by the applicant in respect of a
28 written agreement approved by the
29 Commissioner under section 52 that relates to
30 an amount referred to in paragraph (a);
31 (c) interest at the prescribed rate on the amounts
32 payable to the applicant under paragraphs (a)
33 and (b) from the date the amount was paid by
page 19
First Home Owner Grant Amendment Bill 2009
Part 4 Other amendments
s. 18
1 the applicant to the date approved for the
2 repayment.
3
4 18. Section 32 replaced
5 Delete section 32 and insert:
6
7 32. Payment following determination of review
8 (1) In this section --
9 approved, in relation to a date for a payment or
10 repayment, means the date, on or after the date of the
11 decision resulting from the application for review, on
12 which the Commissioner approves the payment or
13 repayment.
14 (2) If, as the result of an application for a review of a
15 decision, a decision not to authorise the payment of a
16 first home owner grant is reversed, interest at the
17 prescribed rate is payable on the amount of the grant
18 from the date of the decision not to authorise the
19 payment to the date approved for the payment.
20 (3) If, as the result of an application for a review of a
21 decision, an amount of a grant repaid by an applicant is
22 to be repaid to the applicant, the following amounts are
23 payable to the applicant --
24 (a) the amount of the grant repaid by the applicant;
25 (b) any interest paid by the applicant in respect of a
26 written arrangement approved by the
27 Commissioner under section 52 that relates to
28 an amount referred to in paragraph (a);
29 (c) any amount paid by the applicant in respect of
30 the registration or cancellation of registration of
31 a memorial as required by section 60 in
32 connection with the repayment of the grant;
page 20
First Home Owner Grant Amendment Bill 2009
Other amendments Part 4
s. 19
1 (d) interest at the prescribed rate on the amounts
2 payable to the applicant under paragraphs (a) to
3 (c) from the date the amount was paid by the
4 applicant to the date approved for the
5 repayment.
6 (4) If, as the result of an application for a review of a
7 decision, an amount of penalty paid by an applicant is
8 to be repaid to the applicant, the following amounts are
9 payable to the applicant --
10 (a) the amount of penalty to be repaid;
11 (b) any interest paid by the applicant in respect of a
12 written agreement approved by the
13 Commissioner under section 52 that relates to
14 an amount referred to in paragraph (a);
15 (c) interest at the prescribed rate on the amounts
16 payable to the applicant under paragraphs (a)
17 and (b) from the date the amount was paid by
18 the applicant to the date approved for the
19 repayment.
20
21 19. Section 55 amended
22 (1) After section 55(1) insert:
23
24 (2A) The Commissioner may lodge with the Registrar a
25 memorial signed by the Commissioner if --
26 (a) a payment of a first home owner grant
27 authorised under section 21 has been made to
28 an applicant; and
29 (b) the applicant holds a relevant interest in relation
30 to the home for which the grant was sought;
31 and
32 (c) the Commissioner reasonably believes that the
33 applicant intends to sell the home before the
page 21
First Home Owner Grant Amendment Bill 2009
Part 4 Other amendments
s. 19
1 applicant has complied with the residence
2 requirements.
3
4 (2) In section 55(2) delete "the memorial" and insert:
5
6 a memorial lodged under subsection (1)
7
8 (3) After section 55(2) insert:
9
10 (3A) When a memorial lodged under subsection (2A) is
11 registered by the Registrar, a charge for the amount of
12 the first home owner grant that was paid to the
13 applicant is created on the relevant interest.
14
15
page 22
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