State Taxation Acts (Taxation Reform Implementation) Act 2001 (Vic)

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State Taxation Acts (Taxation Reform

Implementation) Act 2001

Act No. 48/2001

TABLE OF PROVISIONS

Section Page
PART 1—PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2—HEALTH BENEFIT LEVY 3
3. Casino Control Act 1991 3
4. Gaming Machine Control Act 1991 4
PART 3—DUTIES ACT 2000 6
5. Abolition of lease duty 6
6. Abolition of duty on unquoted marketable securities and
associated duties from July 2003 6
7. New section 148A inserted 7
148A. Mortgage duty abolished from July 2004 7
8. Transitional provision consequent on the repeal of lease duty 7
PART 4—LAND TAX ACT 1958 9
9. Increase in land tax threshold 9
PART 5—PAY-ROLL TAX ACT 1971 11
10. Pre-January 1996 accrued leave 11
11. Eligible termination payments 11
12. Reduction in pay-roll tax rate 12
13. Increase in pay-roll tax threshold from 2003 12
14. Fringe benefits tax gross-up 15

i

Section Page
PART 6—STAMPS ACT 1958 18
15. Abolition of lease duty 18

═══════════════

ENDNOTES 20

ii

Victoria

No. 48 of 2001

State Taxation Acts (Taxation Reform

Implementation) Act 2001†

[Assented to 27 June 2001]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to amend the Casino
Control Act 1991, the Duties Act 2000, the
Gaming Machine Control Act 1991, the Land
Tax Act 1958, the Pay-roll Tax Act 1971 and the
Stamps Act 1958 to implement the reform of
State taxes.

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 2

2. Commencement

(1) This Part and Part 4 come into operation on the
day on which this Act receives the Royal Assent.

(2) Part 6 is deemed to have come into operation on

26 April 2001.

(3) Parts 2, 3 (other than section 6(4)) and 5 come

into operation on 1 July 2001.

(4) Section 6(4) comes into operation on 1 July 2003.

_______________
State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 3 Act No. 48/2001

PART 2—HEALTH BENEFIT LEVY

3. Casino Control Act 1991

See:

Act No. (1) In the Casino Control Act 1991, insert the
47/1991. following heading to section 114A—
Reprint No. 4
as at "Health benefit levy".
1 January
1999
and (2) In section 114A of the Casino Control Act 1991,
amending for sub-section (1) substitute—
Act Nos
16/2000, "(1) A casino operator must pay to the Director
24/2000,
88/2000 and for payment into the Consolidated Fund each
89/2000. financial year a health benefit levy calculated
LawToday: 
in accordance with the following formula—
dpc.vic.  L $1533.33 GM
gov.au = ×

12

where—

L is the levy payable by the casino

operator;

GM is the sum of the number of gaming

machines operating in the casino on the
first Saturday in each month from and
including December in the preceding
financial year to and including

November in the financial year.".

(3) In section 114A of the Casino Control Act

1991—

(a)

in sub-section (2), for "30 September in a financial year" substitute "the first Saturday in a month";

(b)

in sub-section (3), for "30 September" substitute "the first Saturday in November".

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 4

(4) In the Casino Control Act 1991—

(a) insert the following heading to section 114B—

"Hypothecation of health benefit levy";

(b)

in section 116(1) and (4), for "gaming machine levy" substitute "health benefit levy".

4. Gaming Machine Control Act 1991

See:

(1) In the Gaming Machine Control Act 1991, Act No.
insert the following heading to section 135A— 53/1991.
Reprint No. 7
"Health benefit levy". as at
1 July 2000

(2) In section 135A of the Gaming Machine Control Act 1991, for sub-section (1) substitute—

and

amending

Act Nos 73/2000,

"(1) A gaming operator must pay to the Director for payment into the Consolidated Fund each

88/2000 and
89/2000.

LawToday:
financial year a health benefit levy
calculated in accordance with the following dpc.vic.
gov.au
formula—
L $1533.33 GM
= ×

12

where—

L is the levy payable by the gaming

operator;

GM is the sum of the number of gaming

machines of the gaming operator that are operating at an approved venue on the first Saturday in each month from and including December in the
preceding financial year to and
including November in the financial
year.".

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 4 Act No. 48/2001

(3) In section 135A of the Gaming Machine Control

Act 1991—

(a)

in sub-section (2), for "30 September in a financial year" substitute "the first Saturday in a month";

(b)

in sub-section (3), for "30 September" substitute "the first Saturday in November".

(4) In the Gaming Machine Control Act 1991,

insert the following heading to section 135B—

"Hypothecation of health benefit levy".

_______________
State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 5

PART 3—DUTIES ACT 2000

See:

5. Abolition of lease duty

Act No. 79/2000.

In the Duties Act 2000— Statute Book:
(a) in section 3, the definitions of "cost", "lease" and "variation" are repealed; dpc.vic.
gov.au
(b) Chapter 5 is repealed.

6.  Abolition of duty on unquoted marketable securities and associated duties from July 2003

(1) In section 7 of the Duties Act 2000, after sub-

section (3) insert—

"(3A) Despite sub-section (1), a transfer of

marketable securities, or a transaction
referred to in sub-section (1)(b) in respect of
marketable securities, that takes place or
occurs on or after 1 July 2003 is not a

dutiable transaction.".

(2) In section 94 of the Duties Act 2000, after sub-

section (2) insert—

"(3) A statement is not required to be lodged

under this section in respect of an
entitlement that arises on or after 1 July

2003.".

(3) In section 97(2) of the Duties Act 2000—

(a)

in paragraph (b), for "company." substitute "company;";

(b)

after paragraph (b), insert— "(c) an allotment of shares that takes place

on or after 1 July 2003.".

(4) In section 108 of the Duties Act 2000, for

"section 28 or 29, as the case requires," substitute
"section 28".

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 7 Act No. 48/2001

7. New section 148A inserted

After section 148 of the Duties Act 2000 insert—

"148A. Mortgage duty abolished from July 2004

Despite anything to the contrary in this

Chapter, mortgage duty is not chargeable—

(a) on a mortgage first executed, or that first affects property in Victoria, on or after 1 July 2004; or
(b) in respect of an advance or further advance on or after 1 July 2004 under a mortgage first executed, or that first affects property in Victoria, before that day.".

8.  Transitional provision consequent on the repeal of lease duty

In Schedule 2 to the Duties Act 2000, for clause 7 substitute—

'7. Provisions relating to the abolition of stamp duty on

leases

(1) If stamp duty under the former Act has been paid on
any lease or agreement for a lease for any definite
term of not less than 2 years and the lease is
determined before the expiration of the full term in
respect of which duty was paid, the Commissioner
must, on application within 3 years after the
determination, refund to the lessee or (where the lease
has been transferred or assigned) to the transferee or
assignee an amount equal to the difference between
the stamp duty paid and the stamp duty that would
have been payable if the lease had been expressed to
expire at the date of determination.

(2) Sub-clause (1) does not apply if the Commissioner is

satisfied that, at any time after the determination of the lease, the lessee or an associate of the lessee has occupied the leased property, or substantially the
same property, with the agreement (express or
implied) of the lessor (other than as a result of the sale
of the property to the lessee or associate).

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 8

(3) An application for a refund under this clause must be accompanied by—

(a) the lease or agreement for a lease on which stamp duty was paid; and
(b)

neither the lessee nor any associate of the lessee

a declaration by the applicant stating that property, or substantially the same property, after the determination of the lease (other than as a result of the sale of the property to the lessee or associate).

(4) A person must not knowingly make a false

declaration under sub-clause (3)(b).

Penalty:  300 penalty units in the case of a body
corporate;
60 penalty units in any other case.

(5) In this section—

"determination" includes surrender and forfeiture.'.

_______________
State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 9 Act No. 48/2001

PART 4—LAND TAX ACT 1958

See:

Act No. 9. Increase in land tax threshold
6289.
Reprint No. 10 (1) In section 7A of the Land Tax Act 1958—
as at
14 October (a) for "1997" substitute "2001";
1999
and (b) for "$85" substitute "$125".
amending
Act Nos (2) In the Second Schedule to the Land Tax Act
69/2000 and
10/2001. 1958—
LawToday: 
(a) insert the following heading to clause 3—
dpc.vic. 
gov.au  "Land Tax for 1998, 1999, 2000 and 2001";

(b)

in clause 3, for "or a subsequent year" substitute ", 1999, 2000 or 2001".

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

1958, after clause 3 insert—

"4. Land tax for 2002 and subsequent years

If the total unimproved value of land of an owner as assessed under this Act for 2002 or a subsequent year is not less than the amount shown in column 1 of an item in Table D and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.

TABLE D

Item Column 1 Column 2 Column 3
$ $
1. 0 125 000 Nil
2. 125 000 200 000 $125 and 0·1 cents for
each $1 of the value
that exceeds $125 000
3. 200 000 540 000 $200 and 0·2 cents for
each $1 of the value
that exceeds $200 000

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 9
Item Column 1 Column 2 Column 3
$ $
4. 540 000 675 000 $880 and 0·5 cents for
each $1 of the value
that exceeds $540 000

5.

675 000

810 000

$1555 and 1 cent for each $1 of the value that exceeds $675 000

6. 810 000 1 080 000 $2905 and 1·75 cents
for each $1 of the
value that exceeds
$810 000
7. 1 080 000 1 620 000 $7630 and 2·75 cents
for each $1 of the
value that exceeds
$1 080 000
8. 1 620 000 2 700 000 $22 480 and 3 cents
for each $1 of the
value that exceeds
$1 620 000
9. 2 700 000 $54 880 and 5 cents
for each $1 of the
value that exceeds
$2 700 000".

_______________
State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 10 Act No. 48/2001

PART 5—PAY-ROLL TAX ACT 1971

See:

Act No. 10. Pre-January 1996 accrued leave
8154.
Reprint No. 7 In section 3 of the Pay-roll Tax Act 1971—
as at
1 September (a) in sub-section (1), in the definition of
1999
and "wages", in paragraph (e), omit "subject to
amending sub-section (2F),";
Act Nos
6/2000, (b) sub-section (2F) is repealed.
42/2000,
97/2000 and
10/2001.
LawToday:

dpc.vic.
gov.au

11. Eligible termination payments

(1) In section 3(1) of the Pay-roll Tax Act 1971, in

the definition of "wages", in paragraph (e), for
sub-paragraph (iii) substitute—

"(iii) so much of any eligible termination payment

(within the meaning of section 27A of the that Act if the whole of the eligible termination payment had been paid to the employee.".

Income Tax Assessment Act 1936 of the
Commonwealth) paid or payable by an
employer, whether or not paid to the
employee or to any other person or body,
that would be included in the assessable
income of an employee under

(2) In section 6 of the Pay-roll Tax Act 1971, after

sub-section (1AB) insert—

"(1AC) Wages referred to in paragraph (e) of the

definition of "wages" in section 3(1) that are not paid in respect of services performed or rendered by an employee in a particular

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 12

month are liable to pay-roll tax under this of services performed or rendered during the month in which they were paid or became payable.".

12. Reduction in pay-roll tax rate

In section 7(1) of the Pay-roll Tax Act 1971—

(a) in paragraph (h)—

(i)  after "1999" insert "and before the month of July 2001";

(ii) for "or (g)." substitute "or (g); and";

(b)

after paragraph (h) insert— "(i) at the rate of 5·45% in respect of such

of those wages as are paid or payable
after the month of June 2001 and before
the month of July 2003 and are not
liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f),

(g) or (h); and

(j)

at the rate of 5·35% in respect of such of those wages as are paid or payable after the month of June 2003 and are not liable to pay-roll tax at the rate

prescribed in paragraph (c), (d), (e), (f),
(g), (h) or (i).".

13. Increase in pay-roll tax threshold from 2003

(1) In section 9A(3A)(ga) of the Pay-roll Tax Act

1971—

(a)

in paragraph (h), after "each succeeding financial year" insert "up to and including the financial year ending on 30 June 2003";

(b) after paragraph (h) insert—

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 13 Act No. 48/2001

"(i) for the purposes of the financial year commencing on 1 July 2003 and each succeeding financial year, the

prescribed amount calculated for those
purposes in relation to such members in
accordance with Part R of Schedule
Two;".

(2) In section 9B(1) of the Pay-roll Tax Act 1971, in the definition of "prescribed amount"—

(a)

in paragraph (a), for sub-paragraph (iv) "(iv) ending after 1 December 1992 and

before 1 July 2003, means $42 917;

(v)  ending after 1 July 2003, means $45 833;";

(b) in paragraph (b), for sub-paragraph (vii) substitute—

"(vii) beginning after 30 November 1992 and ending before 1 July 2003, means the product ascertained by multiplying $42 917 by the number of months in the return period;

(viii)

July 2003, means the sum of the
products ascertained by multiplying

beginning before and ending after 1 return period before that date and by multiplying $45 833 by the number of months in the return period after that date;

(ix)

beginning after 30 June 2003, means $45 833 by the number of months in the return period;".

(3) In section 11A(2) of the Pay-roll Tax Act 1971—

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 13

(a) in paragraph (h)—

(i)

after "each succeeding financial year" financial year ending on 30 June 2003";

(ii) for "Schedule Two." substitute
"Schedule Two;";

(b)

after paragraph (h) insert— "(i) for the purposes of the financial year

commencing on 1 July 2003 and each
succeeding financial year, the
prescribed amount calculated for those
purposes in relation to such members in
accordance with Part Q of Schedule

Two.".

(4) In Schedule Two to the Pay-roll Tax Act 1971—

(a)

in Parts O and P, after "each succeeding financial year" insert "up to and including the financial year ending on 30 June 2003";

(b) after Part P insert—

"PART Q

s. 11A(2)(i)

For the purpose of the financial year commencing on 1 July formula—

2003 and each succeeding financial year, the prescribed
amount calculated in accordance with this Part of this

TW 550 000C
  where—
TW IW + 365

(a)

TW is the amount of taxable wages paid or payable by the employer during the financial year; and

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 14 Act No. 48/2001

(b)

IW is the amount of interstate wages paid or payable by the employer during the financial year; and

(c)

C is the number of days in the financial year in respect of which the employer paid or was liable to pay wages (disregarding foreign wages).

PART R

s. 9A(3A)(ga)

For the purpose of the financial year commencing on 1 July 2003 and each succeeding financial year, the prescribed amount, in relation to the members of a group within the meaning of section 9A, calculated in accordance with this Part of this Schedule is the amount calculated in accordance with the formula—

TW 550 000C
  where—
TW IW + 365

(a)

TW is the amount of taxable wages paid or payable by the members of the group during the financial year; and

(b)

IW is the amount of interstate wages paid or payable by the members of the group during the financial year; and

(c)

C is the number of days in the financial year in respect of which at least one member of the group paid or was liable to pay wages (disregarding foreign wages).".

14. Fringe benefits tax gross-up

(1) In section 9 of the Pay-roll Tax Act 1971, for

"taxable value of the benefit as a fringe benefit"
substitute "fringe benefits taxable amount".

(2) In section 13A(2)(a) and (b) of the Pay-roll Tax Act 1971, for "aggregate fringe benefits amount (within the meaning of that Act)" substitute

"fringe benefits taxable amount (within the
meaning of the Fringe Benefits Tax Assessment
Act 1986 of the Commonwealth)".

State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 14

(3) In section 13A of the Pay-roll Tax Act 1971,

after sub-section (6) insert—

'(7) If an employer is a prescribed sporting club,

a reference in sub-section (2) to the fringe
benefits taxable amount within the meaning
of the Fringe Benefits Tax Assessment Act
1986 in relation to that employer is taken to
be a reference to the sum of the type 1
aggregate fringe benefits amount and the
type 2 aggregate fringe benefits amount
(within the meaning of that Act) in relation

to that employer.

(8) For the purposes of sub-section (7), a

prescribed sporting club is a body prescribed by the regulations, being an association, club or other body—

(a)

an object of which is to participate in, facilitate or promote a sporting activity; and

(b)

that employs persons who play for the body in a competitive sporting activity; and

(c)

that pays more than 50% of its total wages in a financial year to persons referred to in paragraph (b) in respect

of services performed by those players
being the playing of a sport.

(9) In this section, "competitive sporting

activity" includes the playing of a sport, but

does not include—

(a)

the umpiring or refereeing of a sporting activity; or

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 14 Act No. 48/2001

(b)

the administration of a sporting activity; or

(c)

the non-competitive practice of a sport.'.

_______________
State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 s. 15

PART 6—STAMPS ACT 1958

See:

15. Abolition of lease duty Act No.
6375.
(1) At the end of section 80 of the Stamps Act 1958 Reprint No. 16
insert— as at
3 July 2000
"(2) Sub-section (1) does not apply if the and
amending Act
Comptroller is satisfied that, at any time after Nos 103/1993
the surrender, forfeit or other determination (as amended
by No.
of the lease, the lessee or an associate of the 119/1994),

lessee has occupied the leased property, or

34/1999, 79/2000,

substantially the same property, with the 10/2001 and
agreement (express or implied) of the lessor 11/2001.
LawToday:
(other than as a result of the sale of the

property to the lessee or associate).

dpc.vic. gov.au

(3) An application for a refund under this

section must be accompanied by a
declaration by the applicant stating that
neither the lessee nor any associate of the
lessee has occupied or will occupy the leased
property, or substantially the same property,
after the surrender, forfeit or other
determination of the lease (other than as a
result of the sale of the property to the lessee
or associate).

(4) A person must not knowingly make a false declaration under sub-section (3).

Penalty:  300 penalty units in the case of a
body corporate;
60 penalty units in any other
case.".

(2) In section 83A of the Stamps Act 1958, after sub- section (6) insert—

"(6A) Sub-sections (4), (5) and (6) do not apply on or after 26 April 2001.

State Taxation Acts (Taxation Reform Implementation) Act 2001

s. 15 Act No. 48/2001

(6B) If, on or after 26 April 2001 but before the

day on which the State Taxation Acts
(Taxation Reform Implementation) Act
2001 received the Royal Assent, the
Comptroller made a re-estimate under sub-
section (5)—

(a) if additional stamp duty was paid under sub-section (5)(a) as a result of the re- estimate, the Comptroller must refund an amount equal to the additional duty paid;
(b) if the Comptroller refunded an amount under sub-section (5)(b) as a result of the re-estimate, that amount must be repaid to the Comptroller and the Comptroller may recover that amount from the person to whom it was paid as a debt in a court of competent jurisdiction.".

(3) In the Third Schedule to the Stamps Act 1958, in Heading VIII, after clause (4) insert—

"Duty is not payable under this Heading on a lease,

assignment of lease or agreement for a lease that is made on

or after 26 April 2001.".

═══════════════
State Taxation Acts (Taxation Reform Implementation) Act 2001

Act No. 48/2001 Endnotes

ENDNOTES

Minister's second reading speech—

Legislative Assembly: 17 May 2001

Legislative Council: 12 June 2001

The long title for the Bill for this Act was "to amend the Casino Control
Act 1991, the Duties Act 2000, the Gaming Machine Control Act
1991, the Land Tax Act 1958, the Pay-roll Tax Act 1971 and the
Stamps Act 1958 to implement the reform of State taxes and for other
purposes."

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