State Taxation Acts (Miscellaneous Amendments) Act 2003 (Vic)
State Taxation Acts (Miscellaneous Amendments)
Act 2003
Act No. 58/2003
TABLE OF PROVISIONS
Section Page PART 1—PRELIMINARY 1
1. Purpose 1 2. Commencement 2
PART 2—DUTIES ACT 2000 3
3. Definitions 3 4. Transactions concerning dutiable property 3 5. Dutiable property 4 6. Dutiable value includes GST 4 7. Aggregation of certain dutiable transactions 5 8. Sub sales of land 5 9. Apparent purchasers, trustees and nominees 5 10. Exemption from duty—domestic relationships 6 11. Transfers to trustees or custodians of superannuation funds or trusts 6 12. Transfer of farms to relatives or charities 6 13. Land-rich private corporations 6 14. Insurance premiums include GST 7 15. Refunds where insurance premiums are returned 8 16. Motor vehicle duty 8 17. Dutiable value of motor vehicles includes GST 9 18. Transitional provisions—GST 9
PART 3—PAY-ROLL TAX ACT 1971 11
19. Grouping provisions 11 20. Phased abolition of exemption for apprentices' wages 12
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ENDNOTES 13
i
Victoria
No. 58 of 2003
State Taxation Acts (Miscellaneous
Amendments) Act 2003†
[Assented to 16 June 2003]
The Parliament of Victoria enacts as follows:
PART 1—PRELIMINARY
1. Purpose
The purpose of this Act is to make miscellaneous amendments to the Duties Act 2000 and the Pay- roll Tax Act 1971.
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 1—Preliminary s. 2 2. Commencement
(1) This Act (except sections 4, 6, 13(2), 14, 16, 17
and 20) comes into operation on the day after the
day on which it receives the Royal Assent.
(2) Sections 6, 13(2), 14 and 17 are deemed to have come into operation on 1 July 2001.
(3) Section 4 is deemed to have come into operation on 8 February 2003.
(4) Section 20(1) and (2) is deemed to have come into operation on 7 May 2003.
(5) Section 16 comes into operation on 1 July 2003.
(6) Section 20(3) comes into operation on 1 January
2004.
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
| s. 3 | Part 2—Duties Act 2000 |
PART 2—DUTIES ACT 2000
3. Definitions
See:
| Act No. | In section 3(1) of the Duties Act 2000— |
| 79/2000. | (a) in the definition of "primary production"— |
| Reprint No. 2 as at |
(i) in paragraph (a), after "cultivation"
1 July 2002.
LawToday:
| (where secondly occurring) insert | |
| dpc.vic. | "(whether in a natural, processed or |
| gov.au | converted state)"; |
(ii) in paragraph (e), after "propagation" insert "for sale";
(b) in the definition of "related person", after paragraph (e) insert— "(f) persons are related persons for the
purposes of Chapter 3 if they (whether jointly or separately) acquire interests in a private corporation and the
acquisitions form, evidence, give effect
to or arise from substantially one
transaction or one series oftransactions;".
4. Transactions concerning dutiable property
(1) For section 7(1)(b)(vi) of the Duties Act 2000
substitute—
"(vi) any other transaction that results in a change in beneficial ownership of dutiable property (other than an excluded transaction).".
(2) After section 7(2) of the Duties Act 2000
insert—
"(2A) Despite sub-section (1)(b)(vi), an excluded
transaction that results in a change in
beneficial ownership of dutiable property is a
dutiable transaction if it is part of a scheme
or arrangement that, in the Commissioner's
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 2—Duties Act 2000 s. 5 opinion, was made with a collateral purpose
of reducing the duty otherwise chargeable
under this Chapter.".(3) In section 7(4) of the Duties Act 2000, after the
definition of "declaration of trust" insert—
' "excluded transaction" means—
(a)
the purchase, gift, allotment or transfer of any unit in a unit trust scheme; or
(b)
the variation, abrogation or alteration of a right attaching to any such unit; or
(c)
the redemption, surrendering or cancellation of any such unit; or
(d)
the variation or alteration of a right of a holder of any such unit; or
(e)
any combination of the transactions referred to in paragraphs (a), (b), (c) or (d).'.
5. Dutiable property
(1) After section 10(1)(a)(i) of the Duties Act 2000
insert—
"(ia) a life estate;
(ib) an estate in remainder;".
(2) In section 10(1)(d)(iv) of the Duties Act 2000, for
"land used for primary production" substitute
"primary production".
6. Dutiable value includes GST
At the end of section 20 of the Duties Act 2000 insert—
"(2) In determining the dutiable value of dutiable
property, there is to be no discount for the
amount of GST (if any) payable on the
supply of that property.".
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
| s. 7 | Part 2—Duties Act 2000 |
7. Aggregation of certain dutiable transactions
In section 24(2A)(a)(i) of the Duties Act 2000, after "1958" insert "(not being a partial interest in a parcel of land)".
8. Sub sales of land
In section 31(3) of the Duties Act 2000—
(a)
in paragraph (b), after "entered into" insert "and is still a director of the body corporate at the time of the transfer";
(b)
in paragraph (d), after "entered into" insert "and is still a related body corporate of the transferee at the time of the transfer".
9. Apparent purchasers, trustees and nominees
(1) After section 34(2) of the Duties Act 2000
insert—
"(3) This section applies whether or not there has been a change in the legal description of the dutiable property or marketable securities.
Example
An example of a change in the legal description of dutiable property is the issuing of new certificates of title of land following a subdivision of the land.".
(2) After section 35(2) of the Duties Act 2000
insert—
"(3) This section applies whether or not there has been a change in the legal description of the dutiable property or marketable securities.
Example
An example of a change in the legal description of dutiable property is the issuing of new certificates of title of land following a subdivision of the land.".
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 2—Duties Act 2000 s. 10
10. Exemption from duty—domestic relationships
In section 38(2) of the Duties Act 2000, after
"marriage" (wherever occurring) insert "or
domestic relationship".11. Transfers to trustees or custodians of superannuation funds or trusts
In section 41(1) of the Duties Act 2000, after
"dutiable property" insert "made withoutmonetary consideration".
12. Transfer of farms to relatives or charities
In section 56(1)(a) of the Duties Act 2000, after
"fee simple" insert ", life estate or estate inremainder".
13. Land-rich private corporations
(1) For section 72(2) of the Duties Act 2000
substitute—
"(2) In calculating the unencumbered value of the
property of a private corporation for the
purposes of this section, property of any of
the following kinds is not counted—
(a) cash, whether in Australian or other currency; (b) money on deposit with an authorised deposit-taking institution (within the meaning of the Banking Act 1959 of the Commonwealth), negotiable instruments or debt securities;
(c) loans that, according to their terms, are to be repaid on demand by the lender or within 12 months after the date of the loan;
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
| s. 14 | Part 2—Duties Act 2000 |
(d) if the private corporation is a private company, loans to persons who, in relation to the company or to a majority shareholder or director of the company, are associated persons; (e) if the private corporation is a private unit trust scheme, loans to persons who, in relation to a trustee or beneficiary of the scheme, are associated persons; (f) prescribed property, unless the property concerned was not acquired solely or mainly for the purpose of avoiding duty under this Part, notifies the private corporation that the property will be counted for the purposes of such a calculation;
(g) the private corporation's shareholding or interest in a subsidiary of the private corporation. Note: Section 74 defines a subsidiary of a
private corporation.".
(2) In section 76(3)(a) of the Duties Act 2000, for
"private company" substitute "private
corporation".
14. Insurance premiums include GST
After section 177(2) of the Duties Act 2000 insert—
'(2A) "Premium" also includes any amount in respect of GST on the supply to which the insurance relates.'.
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 2—Duties Act 2000 s. 15
15. Refunds where insurance premiums are returned
After section 183(3) of the Duties Act 2000 insert—
"(4) As an alternative to applying for a refund
under Part 4 of the Taxation may offset an amount equivalent to the amount of refund to which the insurer is entitled under sub-section (1) against any other payment required to be made under this Act by the insurer.
(5) Sub-section (4) only applies if the general
insurer—
(a)
has not charged to, or recovered from, any other person any amount in respect of the whole or any part of the duty to which the general insurer is entitled to a refund; or
(b)
has refunded or reimbursed each person for the amount charged to or recovered from that person in respect of the duty to which the general insurer is entitled to a refund.
(6) Sub-sections (4) and (5) apply despite
anything to the contrary in section 18(2) of the Taxation Administration Act 1997.".
16. Motor vehicle duty
At the end of section 218 of the Duties Act 2000 insert—
"(2) If—
(a) an application for registration or transfer of registration of a motor vehicle is made by a person who has a physical disability; and
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
| s. 17 | Part 2—Duties Act 2000 |
(b) the motor vehicle is modified to enable the person to drive the vehicle— the amount of duty is to be reduced by the reasonable cost of the modification of the vehicle.
(3) If the reasonable cost of the modification of a motor vehicle referred to in sub-section (2) is greater than the amount of duty chargeable (but for that sub-section) on an application
for registration or transfer of registration of
the vehicle, no duty is chargeable on the
application.(4) For the purposes of sub-sections (2) and (3),
the reasonable cost of the modification of a
motor vehicle is the lower of—
(a) the actual cost of the modification;
(b)
the price payable in the open market for the modification.".
17. Dutiable value of motor vehicles includes GST
After section 219(2) of the Duties Act 2000 insert—
"(3) In determining the dutiable value of a motor
vehicle, there is to be no discount for the
amount of GST (if any) payable on the
supply of the vehicle.".
18. Transitional provisions—GST
After clause 18 in Schedule 2 to the Duties Act
2000 insert—
"19. State Taxation Acts (Miscellaneous Amendments)
Act 2003
(1)
In ascertaining, for the purposes of the provisions of the former Act specified in sub-clause (2), the value of anything or the consideration or premium paid for anything, there is to be no discount for the amount of GST (if any) payable on the supply of that thing.
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 2—Duties Act 2000 s. 18 (2) The provisions of the former Act to which
sub-clause (1) applies are—
(a)
subdivision (6) of Division 3 of Part II and Heading VI in the Third Schedule (Conveyance of Real Property and Land Transfer);
(b)
subdivision (8) of Division 3 of Part II and Heading VIII in the Third Schedule (Lease or Agreement for a Lease);
(c)
subdivision (11) of Division 3 of Part II (Insurance and Assurance Business);
(d)
subdivision (16) of Division 3 of Part II and Heading XXI in the Third Schedule (Motor Vehicle and Heavy Trailer Registration).
(3) This clause applies, and must be taken always to have
applied, from and including 1 July 2000.(4) Nothing in this clause affects the rights of the
parties in the Supreme Court proceeding known as
Royal & Sun Alliance Insurance Australia Ltd
(ACN 007 746 092) v Commissioner of State Revenue
(Vic) (No. 4415 of 2002).".
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
| s. 19 | Part 3—Pay-roll Tax Act 1971 |
PART 3—PAY-ROLL TAX ACT 1971
19. Grouping provisions
| See: | (1) For section 9A(1A)(b), (c) and (d) of the Pay-roll |
| Act No. |
8154. Tax Act 1971 substitute—
| Reprint No. 9 | |
| as at | '(b) one or more employees of an employer |
1 July 2002. LawToday: | perform duties for or in connection with one |
| or more businesses carried on by the | |
| dpc.vic. | |
| gov.au | employer and one or more other persons ("associates"); or |
(c)
one or more employees of an employer are employed solely or mainly to perform duties for or in connection with one or more businesses carried on by one or more other persons ("associates"); or
(d)
one or more employees of an employer perform duties for or in connection with one or more businesses carried on by one or more other persons ("associates"), being duties performed in connection with, or in fulfilment of the employer's obligation under, an agreement, arrangement or undertaking for the provision of services to any one or more of the associates in connection with that business or those businesses—
(i) whether the agreement, arrangement or express or implied; and
(ii) whether or not the agreement, for duties to be performed by the employees or specifies the duties to be performed by them—'.
State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Part 3—Pay-roll Tax Act 1971 s. 20 (2) At the foot of section 9A(1A) of the Pay-roll Tax Act 1971 insert—
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
section in certain circumstances.".
(3) At the foot of section 9A(1B) of the Pay-roll Tax Act 1971 insert—
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
section in certain circumstances.".
(4) At the foot of section 9A(2) of the Pay-roll Tax Act 1971 insert—
"Note: Sub-section (1J) allows the Commissioner to exclude
members from a group constituted under this sub-
section in certain circumstances.".
20. Phased abolition of exemption for apprentices' wages
(1) At the foot of section 10(1)(k) of the Pay-roll Tax Act 1971 insert—
"Note: This exemption does not apply to wages paid or
payable on or after 1 July 2003 under training
agreements made on or after 7 May 2003—
see sub-section (4).".(2) After section 10(3) of the Pay-roll Tax Act 1971
insert—
"(4) Sub-section (1)(k) does not apply to wages
paid or payable on or after 1 July 2003 to an apprentice under a training agreement made on or after 7 May 2003.".
(3) In section 10 of the Pay-roll Tax Act 1971, sub- sections (1)(k) and (4) are repealed.
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State Taxation Acts (Miscellaneous Amendments) Act 2003
Act No. 58/2003
Endnotes
ENDNOTES
†
Minister's second reading speech—
Legislative Assembly: 7 May 2003
Legislative Council: 10 June 2003
The long title for the Bill for this Act was "to make miscellaneous
amendments to the Duties Act 2000 and the Pay-roll Tax Act 1971 and
for other purposes."
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