Revenue Legislation (Housing Affordability Initiatives) Amendment Act 2007 (ACT)

Case

Revenue Legislation (Housing Affordability Initiatives) Amendment Act 2007

A2007-29

Contents

Page

Part 1Preliminary

  1. Name of Act  2

  2. Commencement  2

Part 2Duties Act 1999

  1. Legislation amended—pt 2  3

  2. Payment of duty—‘off the plan’ purchase agreements


    Section 16A (1) (c)  3

  3. Section 16A (4)  3

  4. New section 16B  4

  5. What is the dutiable value of dutiable property?


    New section 20 (1A)  4

  6. New section 20 (3)  4

  7. New section 73A  5

  8. New part 2.6A  6

  9. Meaning of stamp etc


    Section 233 (1) (a) (ii)  9

  10. Dictionary, new definitions  9

Part 3Land Tax Act 2004

  1. Legislation amended—pt 3  10

  2. Land exempted from s 9 generally


    New section 10 (1) (ca)  10

Part 4Rates Act 2004

  1. Legislation amended—pt 4  11

  2. Meaning of rateable land


    Section 8 (2), new definitions  11

Revenue Legislation (Housing Affordability Initiatives) Amendment Act 2007

A2007-29

An Act to amend the Duties Act 1999, the Land Tax Act 2004 and the Rates Act 2004

The Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1Preliminary

  1. Name of Act

    This Act is the Revenue Legislation (Housing Affordability Initiatives) Amendment Act 2007.

  2. Commencement

    This Act commences on the day after its notification day.

    NoteThe naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

Part 2Duties Act 1999

  1. Legislation amended—pt 2

    This part amends the Duties Act 1999.

  2. Payment of duty—‘off the plan’ purchase agreements
    Section 16A (1) (c)

    substitute

    (c)the following period, beginning on the date of the agreement, ends:

    (i)for a purchase agreement for a declared affordable house and land package—2 years;

    (ii)for any other ‘off the plan’ purchase agreement—1 year;

  3. Section 16A (4)

    substitute

    (4)In this section:

    declared affordable house and land package means a house and land package declared under section 16B.

    ‘off the plan’ purchase agreement means—

    (a)an agreement for the sale or transfer of dutiable property that is, or includes, land where a residence is to be erected or developed before completion of the sale or transfer; or

    (b)a purchase agreement for a declared affordable house and land package.

  4. New section 16B

    insert

16BDeclaration of affordable house and land packages

(1)The Minister may declare a house and land package that is, or is to be, offered for purchase to be an affordable house and land package.

(2)A declaration is a disallowable instrument.

NoteA disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.

  1. What is the dutiable value of dutiable property?
    New section 20 (1A)

    insert

    (1A)However, the dutiable value of a dutiable transaction that is a purchase agreement for a declared affordable house and land package, is the lesser of—

    (a)the value of the land component of the package on the date of the agreement; and

    (b)the value of the land component of the package on the date the liability for duty arises under section 16A (1).

  2. New section 20 (3)

    insert

    (3)In this section:

    declared affordable house and land package means a house and land package declared under section 16B.

  3. New section 73A

    insert

73ATransfers etc to entities for community housing

(1)No duty is chargeable under this chapter on a dutiable transaction that is a transfer or grant of a residential lease if—

(a)the transfer or grant is to an entity declared by the Minister; and

(b)the commissioner is satisfied that the property the subject of the transfer or grant is to be used for community housing.

(2)A declaration is a disallowable instrument.

NoteA disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.

(3)The Minister may declare an entity only if satisfied that the entity is a provider of community housing in the ACT.

(4)In this section:

community housing means housing provided for—

(a)people on low and moderate incomes or with special needs; or

(b)    nonprofit community organisations.

residential lease means a lease granted for residential purposes only.

  1. New part 2.6A

    insert

Part 2.6ADeferred payments—home buyers

75AADefinitions—pt 2.6A

In this part:

deferral arrangement—see section 75AC (2).

eligible person means a person who—

(a)is an eligible home buyer under the home buyer concession scheme; or

(b)is eligible for a first home owner grant under the First Home Owner Grant Act 2000.

eligible property means a residential lease the value of which is not more than the upper property value threshold under the home buyer concession scheme.

home buyer concession scheme means the home buyer concession scheme under the Taxation Administration Act 1999.

residential lease means a lease granted for residential purposes only.

75ABApplication to defer payment of duty

(1)An eligible person may apply to the commissioner to defer payment of duty payable by the person on a dutiable transaction that is—

(a)the transfer of an eligible property; or

(b)an agreement for the sale or transfer of an eligible property.

NoteIf a form is approved under the Taxation Administration Act, s 139C for this provision, the form must be used.

(2)The application must be made before the duty is payable.

(3)If there is more than 1 transferee or purchaser of the property, each transferee or purchaser—

(a)must be an eligible person; and

(b)must sign the application.

(4)An applicant must provide the commissioner with any information the commissioner reasonably requires to decide the application.

75ACApproval to defer payment of duty

(1)The commissioner must, on receipt of an application under section 75AB, approve the deferral of payment of duty payable by the applicant if—

(a)the applicant is an eligible person; and

(b)the duty is, or would be, payable on—

(i)the transfer of an eligible property; or

(ii)an agreement for the sale or transfer of an eligible property.

(2)However, an approval under subsection (1) is subject to the person entering into an arrangement with the commissioner under the Taxation Administration Act 1999, section 52 (Arrangements for payment of tax) about payment of the amount of deferred duty and interest (a deferral arrangement).

75ADConditions of deferral arrangement

(1)The conditions of a deferral arrangement include the following:

(a)that payment, or the first instalment of payment, of the duty may be deferred for not more than 5 years after the day of the dutiable transaction;

(b)that the duty, and any accrued interest, must be paid not later than 10 years after the day of the dutiable transaction;

(c)that the amount of duty deferred must be at least—

(i)$500; or

(ii)if a greater amount is declared under subsection (2) (b)—the amount declared;

(d)any other condition determined under subsection (2).

(2)The Minister may determine other conditions, consistent with subsection (1) (a) to (c), to which a deferral arrangement is subject, including conditions to fix—

(a)the rate of interest charged on the amount payable under the arrangement; and

(b)an amount for subsection (1) (c) (ii).

(3)A determination is a disallowable instrument.

NoteA disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.

(4)This section does not limit the Taxation Administration Act 1999, section 52 but any arrangement under that section about deferred payment of duty under this part must not be inconsistent with conditions under subsection (1).

75AEUnpaid duty and interest a debt and charge on property

(1)The amount payable under a deferral arrangement is a debt owing to the Territory.

(2)The liability of a person under a deferral arrangement is a first charge on the person’s interest in the property to which the deferred payment of duty relates.

  1. Meaning of stamp etc
    Section 233 (1) (a) (ii)

    substitute

    (ii)the duty payable is subject to a deferral arrangement under section 75AC (Approval to defer payment of duty); or

    (iii)duty is not payable; or

  2. Dictionary, new definitions

    insert

    deferral arrangement, for part 2.6A—see section 75AC (2).

    eligible person, for part 2.6A—see section 75AA.

    eligible property, for part 2.6A—see section 75AA.

    home buyer concession scheme, for part 2.6A—see section 75AA.

    residential lease, for part 2.6A—see section 75AA.

Part 3Land Tax Act 2004

  1. Legislation amended—pt 3

    This part amends the Land Tax Act 2004.

  2. Land exempted from s 9 generally
    New section 10 (1) (ca)

    insert

    (ca)a parcel of land owned or leased by an entity declared under the Duties Act 1999, section 73A (Transfers etc to entities for community housing);

Part 4Rates Act 2004

  1. Legislation amended—pt 4

    This part amends the Rates Act 2004.

  2. Meaning of rateable land
    Section 8 (2), new definitions

    insert

    benevolent institution does not include an entity declared under the Duties Act 1999, section 73A (Transfers etc to entities for community housing).

    community housing—see the Duties Act 1999, section 73A (4).

    public charitable purposes does not include community housing purposes. 

Endnotes

  1. Presentation speech

    Presentation speech made in the Legislative Assembly on 7 June 2007.

  2. Notification

    Notified under the Legislation Act on 2 October 2007.

  3. Republications of amended laws

    For the latest republication of amended laws, see certify that the above is a true copy of the Revenue Legislation (Housing Affordability Initiatives) Amendment Bill 2007, which was passed by the Legislative Assembly on 25 September 2007.

    Clerk of the Legislative Assembly

    © Australian Capital Territory 2007

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