State Taxation Acts (Amendment) Act 1997 (Vic)

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—FINANCIAL INSTITUTIONS DUTY ACT 1982 3

3.	FID on continuing credit contract payments	3
4.	Repeal of spent provisions	3

PART 3—LAND TAX ACT 1958 4

5.	Definitions	4
6.	Competitive neutrality	4
7.	Increased penalties under the regulations	5
8.	Amendment of Second Schedule	5

PART 4—PAY-ROLL TAX ACT 1971 8

9.	Repeal of spent provisions	8
10.	Exemption for schools	8
11.	Further repeal of spent provisions	9
12.	Statute law revision	9

PART 5—STAMPS ACT 1958 10

13.	New section 41 inserted	10
41. Offset of overpaid duty by return	10
14.	Restriction on registration of transfers	11
15.	Duty on sales and purchases by futures members	11
16.	Nominee transfers of land	11
17.	Rental business duty	11
18.	Competitive neutrality	16
19.	Exemption for credit contracts	17
20.	Competitive neutrality—Third Schedule	17

i

Section	Page
PART 6—TAXATION (RECIPROCAL POWERS) ACT 1987	19

21.	Definitions	19
22.	New section 6A inserted	19
6A. False or misleading statements	19

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NOTES 21

ii

Victoria

No. 31 of 1997

State Taxation Acts (Amendment) Act

1997†

[Assented to 27 May 1997]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to amend the Financial
Institutions Duty Act 1982, the Land Tax Act
1958, the Pay-roll Tax Act 1971, the Stamps Act
1958 and the Taxation (Reciprocal Powers) Act
1987.

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 2

2. Commencement

(1) Section 12 is deemed to have come into operation on 24 November 1992.

(2) Section 3 is deemed to have come into operation on 12 November 1996.

(3) Sections 5(2) and 6 come into operation on 1 July

1997.

(4) The remaining provisions of this Act come into operation on the day on which this Act receives the Royal Assent.

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State Taxation Acts (Amendment) Act 1997

s. 3 Act No. 31/1997

PART 2—FINANCIAL INSTITUTIONS DUTY ACT 1982

No. 9850.	3. FID on continuing credit contract payments
Reprinted to
No. 119/1994
and	In section 28(4)(a) of the Financial Institutions
subsequently	Duty Act 1982 after "contract" insert "or a
amended by
Nos 30/1995,	payment of an amount owing to the credit
101/1995,	provider under a continuing credit contract".
10/1996, 35/1996, 42/1996 and 84/1996.

4. Repeal of spent provisions

Part X of the Financial Institutions Duty Act

1982 is repealed.

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State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 5

PART 3—LAND TAX ACT 1958

5. Definitions No. 6289.
Reprint No. 8

(1) In section 3(1) of the Land Tax Act 1958 insert the following definitions—	as at 1
February
1997.

' "ex-servicemen" has the meaning given in

section 9(3);

"mine" has the meaning given in section 9(3);'.

(2) In section 3(1) of the Land Tax Act 1958, in the

definition of "public statutory authority"

paragraph (b) is repealed.

(3) In section 3 of the Land Tax Act 1958—

(a)	in sub-section (2) after "in any year" insert ", including special land tax under section 10";
(b)	in sub-section (2A) after "the year for" (wherever occurring) insert "or in";

(c) in sub-section (4)—

(i) after "1984 or for" insert "or in"; (ii) after "the year for" insert "or in";

(d) in sub-section (6), in the definition of "supplementary valuation", after "the year for" insert "or in".

(4) In section 9(3) of the Land Tax Act 1958, in the

definition of "mine", in paragraph (a) for "and"

substitute "or".

6. Competitive neutrality

(1) In section 9(1)(b) of the Land Tax Act 1958 after

"authority" insert ", other than land vested in a
declared public statutory authority (within the
meaning of sub-section (1AD)) that is not used
exclusively as public open space or a park".

State Taxation Acts (Amendment) Act 1997

s. 7 Act No. 31/1997

(2) Section 9(1AC) of the Land Tax Act 1958 is

repealed.

(3) For section 9(1AD) of the Land Tax Act 1958

substitute—

"(1AD) The Governor in Council, by Order

published in the Government Gazette, may declare a public statutory authority to be a declared public statutory authority for the purposes of sub-section (1)(b).".

(4) Section 9(2D) of the Land Tax Act 1958 is

repealed.

7. Increased penalties under the regulations

In section 93(1)(f) of the Land Tax Act 1958 for

"$100" substitute "20 penalty units".

8. Amendment of Second Schedule

(1) In the Second Schedule to the Land Tax Act

1958, in clauses 1 and 1A, omit "or lands"

wherever occurring.

(2) In the Second Schedule to the Land Tax Act

1958, for clause 1B substitute—

'1B. (1) For the purposes of this clause—

(a) "clause 1 amount", in relation to land of an owner in respect of a year ("the assessment year"), means the amount determined by applying the rates of tax set out in clause 1 to the sum of—

(i)  in respect of any land for which there was an unimproved value for the purpose of assessing land tax for 1993, that unimproved value; and

(ii)  in respect of all other land, the unimproved value of that land as

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 8

assessed under this Act for the

assessment year;

(b)	if the clause 1 amount is zero, the duty of land tax is the amount determined in accordance with clause 1A;
(c)	if the amount determined in accordance with clause 1A is zero, no duty of land tax is payable.

(2) The duty of land tax for 1994 payable on the land of an owner is—

(a)	the amount determined in accordance with clause 1A; or
(b)	if that amount differs by more than 20% from the clause 1 amount—

(i)  where the amount determined in accordance with clause 1A is less than the clause 1 amount, 80% of the clause 1 amount; or

(ii) accordance with clause 1A is

where the amount determined in 120% of the clause 1 amount.

(3) The duty of land tax for 1995 payable on the land of an owner is—

(a)	the amount determined in accordance with clause 1A; or
(b)	if that amount differs by more than 40% from the clause 1 amount—

(i)  where the amount determined in accordance with clause 1A is less than the clause 1 amount, 60% of the clause 1 amount; or

State Taxation Acts (Amendment) Act 1997

s. 8 Act No. 31/1997

(ii) accordance with clause 1A is

where the amount determined in 140% of the clause 1 amount.

(4) The duty of land tax for 1996 payable on the land of an owner is—

(a)	the amount determined in accordance with clause 1A; or
(b)	if that amount is more than 140% of the clause 1 amount, 140% of the clause 1 amount.

(5) The duty of land tax for 1997 and each

subsequent year payable on the land of an

owner is—

(a)	the amount determined in accordance with clause 1A; or
(b)	if that amount is more than 150% of the clause 1 amount, 150% of the clause 1 amount.'.

(3) In the Second Schedule to the Land Tax Act

1958, after clause 1B insert—

"2. The duty of land tax for 1995, 1996 or 1997 payable on the land of an owner is deemed always to have been the duty determined in accordance with this Schedule as amended by the State Taxation Acts (Amendment) Act 1997.".

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State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 9

PART 4—PAY-ROLL TAX ACT 1971

9. Repeal of spent provisions No. 8154.
Reprinted to

(1) In section 9A(3A)(e) of the Pay-roll Tax Act No. 119/1994 and

1971—	subsequently amended by
(a) in the substituted sub-section (3) for	Nos 101/1995, 10/1996 and
"minimum amount for that return period or,	42/1996.
if the Commissioner has approved another amount (having regard to the amount of pay- roll tax likely to be payable by that member for the financial year within which the return period falls), that other amount" substitute "prescribed amount";
(b)	in the substituted sub-section (4) for "minimum amount or, if the Commissioner has approved another amount for the purposes of sub-section (3), to that other amount" substitute "prescribed amount".

(2) In section 9B of the Pay-roll Tax Act 1971—

(a) in sub-section (1) the definition of "minimum amount" is repealed;

(b) in sub-section (3) paragraph (a) is repealed; (c) in sub-section (4) paragraph (a) is repealed.

10. Exemption for schools

For section 10(1)(d) of the Pay-roll Tax Act 1971
substitute—
"(d) by a school that is—

(i) registered under Part III of the Education Act 1958; and

(ii)  carried on by a person otherwise than for the purpose of profit or gain to the person or the individual members of the

person—

State Taxation Acts (Amendment) Act 1997

s. 11 Act No. 31/1997

being wages paid or payable to a person in
relation to the provision of education within

that school;".

11. Further repeal of spent provisions

In the Pay-roll Tax Act 1971—

(a) in section 11C(1), in the definition of "total amount of pay-roll tax"—

(i)  in paragraph (a) omit "subject to paragraphs (b) and (c)—";

(ii) paragraphs (b) and (c) are repealed;

(b) sections 13(4) and (5) and 18(9), Part VA and Schedule Six are repealed.

12. Statute law revision

In the Pay-roll Tax Act 1971—

(a)	in section 9A(3A)(ga), in the substituted sub- section (2)(f) for "and each succeeding financial year" substitute "and ending on 30 November 1992";
(b)

in section 11A(2)(f) for "and each ending on 30 November 1992".

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State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 13

PART 5—STAMPS ACT 1958

13. New section 41 inserted No. 6375.
Reprinted to

After section 40A of the Stamps Act 1958	No. 10/1996 and
insert—	subsequently amended by
"41. Offset of overpaid duty by return	Nos 35/1996, 42/1996,
(1) If an authorized person pays an amount to the Comptroller under section 40A(3)(b) in	73/1996 and
84/1996.

respect of a period that is greater than the
total amount of duty with which each
instrument endorsed by the person under
section 40A(3)(a) during that period is

chargeable under this Act as a result of—

(a)

miscalculating the amount of duty with section 40A(3)(a) is chargeable; or

(b) making a mistake in adding up the total of all amounts endorsed under section 40A(3)(a) during the period—

the authorized person may reduce the
amount otherwise payable under section
40A(3)(b) in respect of the next or a
subsequent period by the difference between

those amounts.

(2) An authorized person who reduces an

amount under sub-section (1) must lodge a
statement with the Commissioner at the time
of making the reduction giving details of the
overpayment to which the reduction relates.

(3) If the overpayment referred to in sub-section (1) was caused by miscalculating the amount of duty with which an instrument endorsed

under section 40A(3)(a) is chargeable, the
authorized person—

State Taxation Acts (Amendment) Act 1997

s. 14 Act No. 31/1997

(a)

must re-endorse the instrument in the amount of duty; and

(b) if the authorized person has charged to, or recovered from, another person an amount in respect of the overpayment, must reimburse that person for the amount charged or recovered.".

14. Restriction on registration of transfers

In section 60F(1)(a)(ii) of the Stamps Act 1958 after "clause (5)" insert "(except paragraph (b), (g) or (j))".

15. Duty on sales and purchases by futures members

In the heading to sub-division (5) of Division 3 of from duty" substitute "Duty".

16. Nominee transfers of land

(1) In section 67A(7) of the Stamps Act 1958, after

the definition of "relative" insert—
' "spouse" includes de facto spouse.'.

(2) After section 67A(7) of the Stamps Act 1958

insert—

"(8) This section as in force immediately before

the commencement of section 16(1) of the 1997 applies to a transfer executed on or after that commencement in pursuance of an agreement entered into before that commencement.".

17. Rental business duty

(1) In section 131AA of the Stamps Act 1958, after

the definition of "registered person" insert—
' "rental agreement" means an agreement for—

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 17

(a)	letting, bailing or otherwise giving rights to use goods other than books; or
(b)	acquiring the rights of the lessor, bailor or other disponer under any agreement or arrangement for letting, bailing or
hiring of any goods other than books or under any similar agreement or arrangement with respect to the use of goods other than books—

but does not include an agreement for the
right to use goods in conjunction with a lease
of, or licence to occupy or use, any real
property;'.

(2) After section 131AA(2) of the Stamps Act 1958

insert—
"(3) A reference in this subdivision to a right to

use goods includes a reference to cases in

which—

(a)	the right to use the goods was granted in Victoria; or
(b)	any of the negotiations with respect to the grant of the right to use the goods were undertaken in Victoria; or
(c)	the goods were delivered in Victoria to the grantee of the right to use those goods.".

(3) For section 131AC(1) and (2) of the Stamps Act

1958 substitute—
"(1) A registered person, not later than the 21st

day of each calendar month, must lodge with the Comptroller of Stamps a statement in the form approved by the Comptroller

showing—

State Taxation Acts (Amendment) Act 1997

s. 17 Act No. 31/1997

(a)	the total amount received during the preceding month in respect of—
(i)	rental agreements entered into before 1 January 1997 (other than hire-purchase agreements, special rental agreements or rental agreements to which paragraph (c) applies); and
(ii)	or after 1 January 1997 (other than special rental agreements or rental

rental agreements entered into on applies); and

(b) the total amount received during the preceding month in respect of—

(i)  each special rental agreement entered into before 1 January 1997; and

(ii)

each special rental agreement 1997; and

(c)	the total amount received during the preceding month in respect of—
(i)	rental agreements entered into before 1 January 1997 (other than hire-purchase agreements or special rental agreements); and

(ii)  rental agreements entered into on or after 1 January 1997 (other than special rental agreements)—

in respect of which stamp duty or duty of a similar nature has been paid under a law of the Commonwealth or of

another State or of a Territory, being
duty paid at a rate that is less than 1·5%

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997	s. 17
in respect of agreements referred to in sub-paragraph (i) and 0·75% in respect of agreements referred to in sub-
paragraph (ii).

(2) A registered person must, not later than the

21st day of each calendar month, pay in cash
to the Comptroller of Stamps—

(a)	in respect of rental agreements referred to in sub-section (1)(a)(i), an amount (if any) determined in accordance with the following formula—
1 5 ⋅ − ( A $6000)

100

where A is the total amount referred to

in sub-section (1)(a)(i); and

(b) in respect of rental agreements referred to in sub-section (1)(a)(ii)—

(i) sub-section (1)(a)(i) is equal to or
greater than $6000, an amount

if the total amount referred to in following formula—

0 75 ⋅ B

100

where B is the total amount
referred to in sub-section
(1)(a)(ii);

(ii)  if the total amount referred to in sub-section (1)(a)(i) is less than $6000, an amount determined in accordance with the following

formula—

0 75 ⋅ [ B − ($6000 − A )]

100

State Taxation Acts (Amendment) Act 1997

s. 17 Act No. 31/1997

where—

A is the total amount referred to in

sub-section (1)(a)(i); and

B is the total amount referred to in

sub-section (1)(a)(ii); and in respect of each special rental agreement—

(c)

(i) an amount equal to 1·5% of the
amount referred to in sub-section
(1)(b)(i) or $4000, (whichever is
the lesser) or, if an amount of duty
has previously been paid under
this section in respect of the
special rental agreement, 1·5% of
the amount referred to in sub-
section (1)(b)(i) or the amount (if
any) by which $4000 exceeds the
aggregate amount of the duty

referred to in sub-section (1)(b)(i), lesser); and

(ii) referred to in sub-section
(1)(b)(ii), an amount equal to
0·75% of the amount referred to in
sub-section (1)(b)(ii) or $4000,
(whichever is the lesser) or, if an
amount of duty has previously
been paid under this section in
respect of the special rental
agreement, 0·75% of the amount
referred to in sub-section (1)(b)(ii)
or the amount (if any) by which
$4000 exceeds the aggregate
amount of the duty previously
paid (whichever is the lesser); and

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 18

(d) to in sub-section (1)(c)(i), an amount
determined by deducting the stamp

in respect of rental agreements referred under a law of the Commonwealth or of another State or of a Territory from an amount equal to 1·5% of the total amount referred to in sub-section (1)(c)(i); and

(e) to in sub-section (1)(c)(ii), an amount
determined by deducting the stamp

in respect of rental agreements referred under a law of the Commonwealth or of another State or of a Territory from an amount equal to 0·75% of the total amount referred to in sub-section (1)(c)(ii).".

(4) After section 131AC(4) of the Stamps Act 1958

insert—
"(5) This section, as amended by section 17(3) of

the State Taxation Acts (Amendment) Act and this section as in force immediately before the commencement of section 26(3) of the State Taxation (Further Omnibus Amendment) Act 1996 applies to a statement relating to a month preceding January 1997.".

1997, applies to a statement relating to

18. Competitive neutrality

After section 137D(4) of the Stamps Act 1958 insert—

State Taxation Acts (Amendment) Act 1997

s. 19 Act No. 31/1997

"(5) The Governor in Council, by Order

published in the Government Gazette, may
declare a public statutory authority
constituted under the laws of Victoria to be a
declared public statutory authority for the
purposes of clause (4)(b) of the Exemptions
applying to Heading XXII in the Third

Schedule.".

19. Exemption for credit contracts

(1) In section 137F(2A) of the Stamps Act 1958 omit

", other than a mortgage of land,".

(2) After section 137F(2A) of the Stamps Act 1958

insert—

"(2B) Sub-section (2A), as amended by section

19(1) of the State Taxation Acts
(Amendment) Act 1997, applies in respect
of a security given on or after 1 November

1996.".

20. Competitive neutrality—Third Schedule

For clause (4) of the Exemptions applying to
Heading XXII in the Third Schedule to the
Stamps Act 1958 substitute—

"(4) Any mortgage, bond, debenture or covenant

or any foreign security made or given by—

(a)	a Government of the Commonwealth or of a State or Territory of the Commonwealth; or
(b)	a public statutory authority constituted under the law of Victoria, other than a declared public statutory authority
within the meaning of section 137D(5); or

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997	s. 20
(c)	a public statutory authority constituted under the law of the Commonwealth or of a State (other than Victoria) or

Territory of the Commonwealth; or

(d) the Municipal Association of
Victoria.".

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State Taxation Acts (Amendment) Act 1997

s. 21 Act No. 31/1997

PART 6—TAXATION (RECIPROCAL POWERS) ACT 1987

No. 37/1987.	21. Definitions
Reprint No. 1
as at 19
September	In section 3(1) of the Taxation (Reciprocal
1996.	Powers) Act 1987, in the definition of "State Taxation Act" after paragraph (g) insert— "(h) Liquor Control Act 1987.".

22. New section 6A inserted

After section 6 of the Taxation (Reciprocal
Powers) Act 1987 insert—
"6A. False or misleading statements

(1) A person must not give an answer, whether orally or in writing, to a question put to the person under this Act by a Corresponding

Commissioner or State Commissioner or person authorised under section 6(2) that is false or misleading in a material particular. Penalty: 10 penalty units.

(2) In providing information in accordance with

this Act, a person must not make any
statement or representation that is false or
misleading in a material particular.
Penalty: 10 penalty units.

(3) A person is not guilty of an offence under

this section if the court hearing the charge is satisfied that when the answer, statement or representation was given or made the person believed on reasonable grounds that it was
neither false nor misleading.

State Taxation Acts (Amendment) Act 1997

Act No. 31/1997 s. 22

(4) This section does not apply to any

information or evidence given on oath or affirmation or by statutory declaration.".

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State Taxation Acts (Amendment) Act 1997

Notes Act No. 31/1997

NOTES

†

Minister's second reading speech—

Legislative Assembly: 1 May 1997

Legislative Council: 22 May 1997

The long title for the Bill for this Act was "to amend the Financial
Institutions Duty Act 1982, the Land Tax Act 1958, the Pay-roll Tax
Act 1971, the Stamps Act 1958 and the Taxation (Reciprocal Powers)
Act 1987 and for other purposes."