Stamp Duties (Further Amendment) Act 1980 (NSW)

STAMP DUTIES (FURTHER AMENDMENT)

ACT, 1980, No. 161

ĵ etD OTalesf

ANNO VICESIMO NONO

ELIZABETHiE II REGIN.E

Act No. 161, 1980.

An Act to amend the Stamp Duties Act, 1920, to provide for the abolition of death duty chargeable under that Act, and for certain other purposes. [Assented to, 15th December, 1980.]

Sec also Companies (Death Duties) Amendment Act, 1980.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

B E it enacted by the Queen’s Most Excellent Majesty, by and with

the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authprity of the same, as follows :—

1, This Act may be cited as the “Stamp Duties (Further short

Amendment) Act, 1980”. tit*®-

2.      (1) Except as provided by subsection (2), this Act shall Commence-

commence on the date of assent to this Act.

(2) Section 4, in its application to Schedule 2, and that

Schedule shall commence on 31st December, 1981.

3. This Act contains the following Schedules :— Schedules.

SCHEDULE 1.— A m e n d m e n t s to t h e St a m p D u t ie s

A c t ,	1920,	R e l a t in g	to	t h e	A b o l it io n	o f	D e a t h
D u t y .

SCHEDULE 2.—A m e n d m e n t s to t h e St a m p D u t ie s

A c t , 1920, R e l a t in g to t h e A b o l it io n o f S ix t h

Sc h e d u l e	R a t e s	o f	D u t y	a n d	to	E x e m p t io n s	f r o m
D u t y .

SCHEDULE 3.— A m e n d m e n t s to t h e St a m p D u t ie s

A c t , 1920, R e l a t in g to C o n v e y a n c e s by w a y o f

M o r t g a g e .

4.           The Stamp Duties Act, 1920, is amended in the manner set Amendment

forth in Schedules 1-3. 4 7^ 92^°"

Act No. 161, 1980.

Stamp Duties {Further Amendment).

Sec. 4. SCHEDULE 1.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920 , R e l a t in g

TO t h e A b o l it io n o f D e a t h D u t y .

(1) (a) Section 1—

From the matter relating to Division 2 of Part IV, omit “ 123a” , insert instead “123”.

(b) Section 1—

After the matter relating to Division 2 of Part IV, insert:—

D iv isio n 3 .—Abolition of death duty—ss. 123a ,

1 2 3 b .

(2) (a) Section 73 (1) (b )—

After “Act” where lastly occurring, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

(b) Section 73 (1) (d )—

After “paid” where secondly occurring, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

(3)

Part IV, Division 3, heading—

After section 123, insert :—

D iv isio n 3 .— Abolition of death duty.

(4) (a) Section 123 a—

After “1979,”, insert “and before 1st January, 1981,”

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 1—continued.

Amendments to the Stamp Duties Act, 1920, Relating

TO the Abolition of Death Duty—continued.

( b ) Section 123 a ( 2 ) , ( 3 ) —

At the end of section 123a , insert :—

(2) Notwithstanding any other provision of this Part of this Act, the amount of death duty payable under this Act in respect of the final balance of the estate of a person who dies on or after 1st January, 1981, and before 31st December, 1981, shall be one- third of the amount of death duty that would, but for this section, be payable under this Act.

(3) Notwithstanding any other provision of this Part of this Act, no death duty shall be chargeable under this Act in respect of the dutiable estate of a person who dies on or after 31st December, 1981.

(5) Section 123 b—

After section 123 a , insert :—

123 b . Divisions 1, 1a and 2 of this Part of this Act

Applicatioa

of Pt. IV

shall not apply to or in respect of the estate of a person

ia respect

who dies on or after 31st December, 1981, or to or in

of persons

dying on

respect of anything done or suffered or omitted to be done

or after

by any other person in respect of any such estate.

31.12.1981.

(6) (a) Second Schedule-

After “paid” where secondly occurring in paragraph (b) appearing under the heading “Appointment in execution of a power”, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 1—continued.

Amendments to the Stamp Duties Act, 1920, Relating

TO THE Abolition of Death Duty—continued.

(b) Second Schedule—^

After “Act” where lastly occurring in paragraph (4) (b) appearing under the heading “Conveyances oe ANY Property”, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

(c) Second Schedule—

After “Act” where lastly occurring in paragraph (4) appearing under the heading “Mortgage”, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

(d) Second Schedule—

After “Act” where lastly oecurring in paragraph (4) appearing under the heading “Transfer of Shares”, insert “or in respect of which no death duty is, by virtue of such Act, chargeable”.

Sec. 4. SCHEDULE 2.

Amendments to the Stamp Duties Act, 1920, Relating to

THE Abolition of Sixth Schedule Rates of Duty and to

Exemptions from Duty.

(1) Section 66 (3 ) - (3 c )—

Omit the subsections, insert instead :—

(3) A conveyance of property made without considera­ tion in money or money’s worth is to be charged with ad valorem duty on whichever is the greater of—

(a) the unencumbered value of the property ascer­ tained in accordance with section 68; or

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920, R e l a t in g to

THE A b o l it io n o f S ix t h Sc h e d u l e R a t e s o f D u t y a n d

TO E x e m p t io n s f r o m D u t y—continued.

(b) the amount or value of all encumbrances (whether certain or contingent) subject to which the property is conveyed.

(3 a ) a conveyance of property made upon a bona fide consideration in money or money’s worth of less than the unencumbered value of the property is to be charged with ad valorem duty on whichever is the greater of—

(a) the unencumbered value of the property ascer­ tained in accordance with section 68; or

(b) the amount obtained by aggregating together—

(i)   the amount or value of the consideration ascertained in accordance with this Act; and

(ii)   the amount or value of all encumbrances (whether certain or contingent) subject to which the property is conveyed,

but the Commissioner, where he is satisfied that the con­ sideration paid was agreed to as representing the true market value of the property, may treat the eonveyance as a conveyance on sale and stamp the conveyance accord­ ingly with ad valorem duty on the unencumbered value of the property ascertained in accordance with section 68.

( 3 b ) a conveyance of property made upon a bona fide

consideration in money or money’s worth of not less than the unencumbered value of the property, not being a con­ veyance on sale of the property, is to be charged with

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920, R e l a t in g to

THE A b o l it io n o f S ix t h Sc h e d u l e R a t e s o f D u t y a n d

TO E x e m p t io n s f r o m D u t y — continued.

ad valorem stamp duty on the amount obtained by

aggregating together—

(a)	the amount or value of the consideration ascer­ tained in accordance with this Aet; and
(b)	the amount or value of all encumbrances (whether certain or contingent! subject to which the property is conveyed.

( 3 c ) Nothing in subsection ( 3 ) , ( 3 a ) or ( 3 b ) of this

section affects the operation of section 73.

(2) (a) Second Schedule—

Omit paragraphs (2) and (3) appearing under the

heading “C o n v e y a n c e s o f any P r o p e r t y ” , insert

instead —•

(2) Upon every conveyance of any property (other than shares or	The parties to the
conveyance or any

rights to shares referred to in	one or more of
paragraph (1) under the heading	them.
“Transfer of Shares” or a mortgage referred to in para­ graph (1) under the heading “Mortgage” herein) made with­ out consideration in money or money’s worth—

On whichever is the greater

of—

(a) the unencumbered

value of the The same duty as on a

property; or conveyance under

(b) the amount or paragraph (1) above

value of all en	as if the greater of the
cumbrances	amounts under para­
(whether certain or	graphs (a) and (b)
contingent) subject	opposite hereto were

to which the the amount of the

property is con­	consideration.
veyed.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

A m e n d m e n t s t o t h e St a m p D u t ie s A c t , 1920, R e l a t in g to

THE A b o l it io n o f Six t h Sc h e d u l e R a t e s o f D u t y a n d

TO E x e m p t io n s f r o m D u t y — continued.

(3) Upon every conveyance of any property (other than shares or	The parties to the
conveyance or any

rights to shares referred to in	one or more of
paragraph (1) under the heading	them.
“Transfer of Shares” or a mortgage referred to in para­ graph (1) under the heading “ Mortgage” herein) made upon a bona fide consideration in money or money’s worth of less than the unencumbered value of the property—

On whichever is the greater

of—

(a)	the unencumbered
value of the

property; or

(b) the amount ob­ tained by aggre­ gating together—

(i)  the amount or value of

the con­

sideration The same duty as on a

conveyance under

ascertained paragraph (I) above

in accor­ as if the greater of

dance with the amounts under

this Act;

and paragraphs (a) and

(ii) the amount (b) opposite hereto

or value of	were the amount of
all encum	the consideration.

brances (whether certain	or
contingent)
subject	to
which	the

property is

conveyed.

(3a) Upon every conveyance of any property (other than shares or	The parties to the
conveyance or any

rights to shares referred to in	one or more of
paragraph (I) under the heading	them.
“Transfer of Shares” or a mortgage referred to in para graph (1) under the heading “ Mortgage” herein) made upon a bona fide consideration in money or money’s worth of not less than the unencumbered

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2— continued.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1 9 2 0 , R e l a t in g to

THE A b o l it io n o f S ix t h Sc h e d u l e R a t e s o f D u t y and

TO E x e m p t io n s f r o m D u ty — continued.

value of the property, not being a conveyance on sale of the property—

On the amount obtained by

aggregating together- The same duty as on a

(a) the amount or conveyance under

value of the paragraph (I) above

consideration as if the aggregate of

ascertained in the amounts under

accordance	with	paragraphs (a) and (b)
this Act; and	opposite hereto were

(b) the amount or the amount of the

value of all encum	consideration.
brances (whether

certain or con­

tingent) subject to which the property is conveyed.

(b) Second Schedule—

From paragraph (4) appearing under the heading

“L ea se or P r o m ise o f o r A g r e e m e n t f o r L ease

OR H ir e of any Property not being a Ship or Vessel”,

om it:—

The same duty as would be chargeable under paragraph (2) under the heading “Con­

veyances of any

Property” herein on a conveyance of property of an unencumbered value equal to the value of the lease in question.

insert instead

The same duty as would

be chargeable on a

conveyance under

paragraph (1) under the heading “Con­

veyances of any

Property” herein as if

the unencumbered

value of the lease in

question were the

amount of the con­

sideration.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

Amendments to the Stamp Duties Act, 1920, Relating to THE Abolition of Sixth Schedule Rates of Duty and TO Exemptions from Duty—continued.

(c) Second Schedule—

Omit paragraph (b) of the Exemptions appearing under the heading “Loan Security”.

(d) Second Schedule—

Omit paragraphs (2) and (3) appearing under the heading “Mortgage”, insert instead :—

(2) Upon every transfer or assign­ ment of any mortgage made	The parties to the
transfer or assign­

without consideration in money	ment or any one
or money’s worth	or more of them.

On the unencumbered value

of the mortgage. The same duty as would be chargeable under paragraph (I) above as if the unencumbered value of the mortgage were the amount of the consideration.

(3) Upon every transfer or assign­ ment of any mortgage made upon The parties to the

transfer or assign­

a consideration in money or

ment or any one

money’s worth of less than the

or more of them.

unencumbered value of the

mortgage—

On the unencumbered value of

the mortgage.	The same duty as would be chargeable under paragraph (1) above as if the unencumbered value of the mortgage were the amount of thei
consideration. I

(e) Second Schedule—

Omit .subparagraph (b) appearing under the heading “Direction as to 1.ssue or Allotment o f Shares”, insert instead ;—

(b) In any case other than that mentioned in the preceding sub­ paragraph (a) -

On the unencumbered value of the shares directed to be issued or allotted. The same duty as is payable under para­ graph (1) under the heading “Transfer of

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

Amendments to the Stamp Duties Act, 1920, Relating to THE Abolition of Sixth Schedule Rates of Duty and TO Exemptions from Duty— continued.

Shares” herein as if

the unencumbered

value of the shares directed to be issued or allotted were the amount of the con­ sideration.

(f) Second Schedule—•

Omit paragraphs (2) and (3) appearing under the heading “Transfer of Shares”, insert instead :—

(2) Upon the transfer of shares or of rights to shares made without	The parties to the
transfer or any

consideration	in	money	or	one or more of
money’s worth—	them.

On the unencumbered value of the shares or the rights to the shares comprised in the transfer. The same duty as would be chargeable under paragraph (1) above as if the unencumbered value of the shares or the rights to the shares comprised in the trans­ fer were the amount of the consideration.

(3) Upon the transfer of shares or of rights to shares made upon a The parties to the

transfer or any

consideration in money or one or more of

money’s worth of less than the	them.
unencumbered value of the shares or of the rights to shares comprised in the transfer—

On the unencumbered value of the shares or the rights to the shares comprised in the transfer. The same duty as would be chargeable under paragraph (1) above as if the unencumbered value of the shares or the rights to the shares comprised in the trans­ fer were the amount of the consideration.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 2—continued.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920 , R e l a t in g to

THE A b o l it io n o f S ix t h Sc h e d u l e R a t e s o f D u t y and

TO E x e m p t io n s f r o m D u t y—continued.

(g) Second Schedule—^

After paragraph (23) appearing under the heading

“G e n e r a l E x e m p t io n s f r o m St a m p D u ty u n d e r

P a r t III”, insert :—^

(24) Any instrument by which property is con­ veyed or agreed to be conveyed to, or any loan security given by or on behalf of—

(a) any society or institution for the time being approved by the Commissioner for the purposes of this paragraph whose resources are, in accordance with its rules or objects, used wholly or predominantly for—

(i)   the relief of poverty in New South Wales; or

(ii)   the promotion of education in New South Wales; or

(b) any society or institution which, in the opinion of the Minister, is of a charitable or benevolent nature and where the instrument or loan security is for such purposes as the Treasurer or the Assistant Treasurer may approve.

(3) Sixth Schedule—•

Omit the Schedule.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

Sec. 4. SCHEDULE 3.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920, R e l a t in g

TO C o n v ey a n c es by v/ ay o f M o r t g a g e .

(1) Section 6 6 d—

After section 66c, insert : —

Transfer	6 6 d .	(1)	A transfer or conveyance by way of mortgage
or

conveyance

of land, or an estate or interest in land, under the Real

of certain

Property Act, 1900, is to be charged with ad valorem duty

land by

way of

on the unencumbered value of the land, or the estate or

mortgage.

interest, as the case may require, ascertained in accord­

ance with section 68.

(2) The rate of ad valorem duty to be charged

in respect of a transfer or conveyance referred to in sub­ section (1) of this section is the rate provided in the Second Schedule to this Act for a conveyance of land on a sale for a consideration in money or money’s worth of not less than the unencumbered value of the land as if the unencumbered value of the land, or the estate or interest, as the case may require, ascertained in accordance with section 68 were the amount of the consideration.

(3) The duty payable in accordance with sub­

sections (1) and (2) of this section is payable by the parties to the transfer or conveyance or any one of them.

(4) Where the Commissioner is satisfied—

(a) that there has been a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900, from a mortgagor to a mortgagee;

Act No. 16i, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 3—continued.

A m e n d m e n t s to t h e St a m p D u t ie s A c t , 1920 , R e l a t in g to

C o n v e y a n c e s by w ay o f M o r tg a g e—continued.

(b)	that duty has been paid in accordance with sub­ sections (1) and (2) of this section on the transfer or conveyance; and
(c)	that the land, or the estate or interest, as the case may require, has been retransferred or reconveyed to the mortgagor or to a person to whom the land, estate or interest has been trans­ mitted by death or bankruptcy and the mortgagor or person, as the case may require, is the regis­ tered proprietor, within the meaning of the Real Property Act, 1900, of the land, estate or interest,

the Commissioner shall refund the ad valorem duty paid on the transfer or conveyance by way of mortgage less the amount of duty that would have been payable on that transfer or conveyance if it were a loan security.

(2) Section 83 (1), definition of “Mortgage”—

Omit “debentures.”, insert instead :—

debentures,

but, notwithstanding the meaning of that expression in section 3 .(1) of this Act, does not include a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900.

Act No. 161, 1980.

Stamp Duties {Further Amendment).

SCHEDULE 3—continued.

Amendments to the Stamp Duties Act, 1920, Relating to

Conveyances by way of Mortgage—continued.

(3) Second Schedule—

In paragraph (15) appearing under the heading “General Exemptions from Stamp Duty under Part III”, after “mortgage” where fourthly occurring, insert “, not being a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900,”.