State Taxation and Treasury Legislation Amendment Act 2022 (Vic)

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State Taxation and Treasury Legislation Amendment Act 2022

No. 23 of 2022

table of provisions

Section  Page

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Amendment of Borrowing and Investment Powers Act 1987 and related amendments

Division 1—Borrowing and Investment Powers Act 1987

3Definitions

4Section 3A substituted

5Division 4 of Part 2 repealed

6New Part 6 inserted

7Schedule 1 repealed

Division 2—Consequential amendments to other Acts

8Consequential amendments to Great Ocean Road and Environs Protection Amendment Act 2021

9Consequential amendment to Puffing Billy Railway Act 2022—repeal of section 45

10Consequential amendment to State Owned Enterprises Act 1992

11Consequential amendments to Water Act 1989

Part 3—Amendment of Duties Act 2000

12New section 233CB inserted

Part 4—Amendment of Essential Services Commission Act 2001

13Payments into the Essential Services Commission Enforcement Fund

14Payments out of the Essential Services Commission Enforcement Fund

15Payments into the Essential Services Commission Operating Fund

16Payments out of the Essential Services Commission Operating Fund

Part 5—Amendment of Land Tax Act 2005

Division 1—Principal place of residence

17New sections 39A and 39B inserted

18Insertion of headings in Division 1 of Part 4

19Definitions—Division 1 of Part 4

20Deferral of tax for residential land to be used during tax year

21Section 61 substituted and new sections 61A to 61H inserted

22Consequential amendments to Taxation Administration Act 1997

Division 2—SDA enrolled dwellings

23Definitions—SDA enrolled dwelling

24Residential services for people with disabilities

25Exemption of land under construction for certain exempt uses

Division 3—Transitional provisions

26New clauses 19 and 20 of Schedule 3 inserted

Part 6—Amendment of Payroll Tax Act 2007

27Definitions

28New section 36A inserted

29New Division 10 inserted in Part 4

30New clause 19A inserted in Schedule 2

Part 7—Amendment of Taxation Administration Act 1997

31Section 12A substituted

32Permitted disclosures to particular persons or for particular purposes

33Prohibition on secondary disclosures of information

34Objections lodged out of time

35When is service effective?

Part 8—Amendment of Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

36New section 40A inserted

Part 9—Repeal of this Act

37Repeal of this Act

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Endnotes

1      General information

State Taxation and Treasury Legislation Amendment Act 2022

No. 23 of 2022

[Assented to 15 June 2022]

The Parliament of Victoria enacts:

Part 1—Preliminary

1Purposes

The purposes of this Act are—

(a)to amend the Borrowing and Investment Powers Act 1987—

(i)to repeal Schedule 1 and Division 4 of Part 2 which provides for the making of Orders in Council declaring sections of the Act as applying to certain entities; and

(ii)to provide a new regulation making power to prescribe the persons to whom, and bodies to which, prescribed sections of the Act will apply; and

(b)to amend the Duties Act 2000 to provide an exemption from motor vehicle duty in relation to certain wheelchair accessible motor vehicles that provide unbooked commercial passenger vehicle services; and

(c)to amend the Essential Services Commission Act 2001 in relation to the Essential Services Commission Enforcement Fund and the Essential Services Commission Operating Fund; and

(d)to amend the Land Tax Act 2005—

(i)in relation to the principal place of residence exemption from land tax where a person is absent because of the construction or renovation of a residence; and

(ii)to provide an exemption from land tax for land on which an SDA enrolled dwelling is being constructed; and

(e)to amend the Payroll Tax Act 2007 in relation to certain wages paid under employment agency and other related arrangements; and

(f)to amend the Taxation Administration Act 1997—

(i)in relation to deemed assessments of dutiable transactions processed using the on-line duty payment system; and

(ii)to prescribe authorised recipients of information obtained under or in the course of administering a taxation law; and

(iii)to authorise secondary disclosure of information with the consent of the person to whom the information relates; and

(iv)in relation to objections lodged out of time; and

(g)to amend the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 to provide an exemption from windfall gains tax on land owned by a university in certain circumstances; and

(h)to make consequential amendments to these Acts and to other Acts.

2Commencement

(1)This Act (except Parts 2, 3, 4 and 5) comes into operation on the day after the day on which it receives the Royal Assent.

(2)Parts 2, 3, 4 and 5 come into operation on 1 July 2022.

Part 2—Amendment of Borrowing and Investment Powers Act 1987 and related amendments

Division 1—Borrowing and Investment Powers Act 1987

3Definitions

In section 3(1) of the Borrowing and Investment Powers Act 1987, for the definition of authority substitute—

"authority means a person or body that is prescribed;".

4Section 3A substituted

For section 3A of the Borrowing and Investment Powers Act 1987 substitute—

"3A   Application of sections of this Act to authorities

A section of this Act applies to an authority if the section is prescribed as applying to that authority.".

5Division 4 of Part 2 repealed

Division 4 of Part 2 of the Borrowing and Investment Powers Act 1987 is repealed.

6New Part 6 inserted

After Part 5 of the Borrowing and Investment Powers Act 1987 insert—

"Part 6—General

31Regulations

(1)The Governor in Council may make regulations for or with respect to any of the following—

(a)prescribing a person or body as an authority;

(b)prescribing a section of this Act as applying to an authority;

(c)the form of securities issued under this Act in Australia;

(d)the issue of securities under this Act in Australia;

(e)the rights attached to securities issued under this Act in Australia;

(f)the keeping of registers of securities issued under this Act in Australia;

(g)fees payable for inspection of or to obtain copies of or extracts from registers kept in Australia of securities issued under this Act in Australia;

(h)the sale and transfer of securities issued under this Act in Australia;

(i)any other matter or thing required or permitted by this Act to be prescribed or necessary to be prescribed to give effect to this Act.

(2)The regulations may—

(a)be of general or limited application;

(b)differ according to differences in time, place or circumstances.".

7Schedule 1 repealed

Schedule 1 to the Borrowing and Investment Powers Act 1987 is repealed.

Division 2—Consequential amendments to other Acts

8Consequential amendments to Great Ocean Road and Environs Protection Amendment Act 2021

(1)In section 16 of the Great Ocean Road and Environs Protection Amendment Act 2021, in proposed new section 62D(1) of the Great Ocean Road and Environs Protection Act 2020, after "by" insert "or under".

(2)Part 3 of the Great Ocean Road and Environs Protection Amendment Act 2021 is repealed.

9Consequential amendment to Puffing Billy Railway Act 2022—repeal of section 45

Section 45 of the Puffing Billy Railway Act 2022 is repealed.

10Consequential amendment to State Owned Enterprises Act 1992

In section 14A of the State Owned Enterprises Act 1992, for "conferred on it by Order under section 17B of" substitute "specified in accordance with regulations under".

11Consequential amendments to Water Act 1989

(1)In section 253(1) of the Water Act 1989, for "declared" substitute "relevant".

(2)In section 253(3) of the Water Act 1989—

(a)for "declared" substitute "relevant";

(b)for "by" substitute "under".

(3)In section 254(1) of the Water Act 1989—

(a)insert the following definition—

"relevant Authority means—

(a)Melbourne Water Corporation; or

(b)an authority within the meaning of the Borrowing and Investment Powers Act 1987 in respect of which a section of that Act has been prescribed as applying to that authority.";

(b)in the definition of Authority, for "declared" substitute "relevant";

(c)the definition of declared Authority is repealed.

(4)In section 254(5) of the Water Act 1989, for "declared" substitute "relevant".

(5)In section 254(6) of the Water act 1989—

(a)for "declared" (where first occurring) substitute "relevant";

(b)for "declared Authority by" substitute "relevant Authority under".

(6)In section 255(2) of the Water Act 1989, for "declared" substitute "relevant".

Part 3—Amendment of Duties Act 2000

12New section 233CB inserted

After section 233CA of the Duties Act 2000 insert—

"233CB   Certain wheelchair accessible motor vehicles providing unbooked commercial passenger vehicle services

(1)No duty is chargeable under this Chapter on an application for registration or transfer of registration of a wheelchair accessible motor vehicle if the Commissioner is satisfied that—

(a)the vehicle is registered under Part 3 of the Commercial Passenger Vehicle Industry Act 2017 and will be lawfully used to provide unbooked commercial passenger vehicle services within the specified period; or

(b)the vehicle will be registered under Part 3 of the Commercial Passenger Vehicle Industry Act 2017 and will be lawfully used to provide unbooked commercial passenger vehicle services within the specified period.

(2)Subsection (1) does not apply to an application for a transfer of registration that is made 2 years or more after the date on which the vehicle was first registered in Victoria or elsewhere.

(3)A person who has received an exemption from the payment of duty because the Commissioner was satisfied about the matters in subsection (1)(a) must, within the specified period—

(a)provide the Commissioner with evidence that the vehicle is able to be lawfully used to provide unbooked commercial passenger vehicle services; or

(b)lodge a written notice with the Commissioner that the vehicle is not able to be lawfully used to provide unbooked commercial passenger vehicle services.

(4)A person who has received an exemption from the payment of duty because the Commissioner was satisfied about the matters in subsection (1)(b) must, within the specified period—

(a)provide the Commissioner with evidence that the vehicle is registered under Part 3 of the Commercial Passenger Vehicle Industry Act 2017 and is able to be lawfully used to provide unbooked commercial passenger vehicle services; or

(b)lodge a written notice with the Commissioner that the vehicle has not been registered under Part 3 of the Commercial Passenger Vehicle Industry Act 2017 or is otherwise not able to be lawfully used to provide unbooked commercial passenger vehicle services.

(5)The Commissioner, with respect to an application for registration or transfer of registration of a wheelchair accessible motor vehicle, may approve, on request, a period that is longer than 3 months from the date of the application for the purposes of this section.

(6)The Commissioner may approve a period under subsection (5)—

(a)at the time the Commissioner considers the matters referred to in subsection (1); or

(b)at any subsequent time, if a request was made before the expiry of 3 months from the date of the application.

(7)If the Commissioner approves a period under subsection (5) after the expiry of 3 months from the date of the application, the specified period is taken to have continued between—

(a)the expiry of the 3 month period; and

(b)the date on which the Commissioner approved a longer period.

(8)If a person received an exemption from the payment of duty under subsection (1) and, after the end of the specified period, the vehicle is not registered under Part 3 of the Commercial Passenger Vehicle Industry Act 2017 or is otherwise not able to be lawfully used to provide unbooked commercial passenger vehicle services—

(a)the application for registration or transfer of registration of the vehicle is chargeable with duty; and

(b)the Commissioner may reassess duty on the application for registration or transfer of registration.

(9)In this section—

specified period means—

(a)a period of 3 months from the date of an application for registration or transfer of registration; or

(b)a longer period from the date of an application for registration or transfer of registration approved by the Commissioner under subsection (5);

unbooked commercial passenger vehicle service has the same meaning as in section 3 of the Commercial Passenger Vehicle Industry Act 2017;

wheelchair accessible motor vehicle means a motor vehicle—

(a)that is specially converted to provide wheelchair access to and egress from the vehicle; and

(b)that is capable of carrying at least one occupied wheelchair.".

Part 4—Amendment of Essential Services Commission Act 2001

13Payments into the Essential Services Commission Enforcement Fund

After section 54ZQ(h) of the Essential Services Commission Act 2001 insert—

"(ha)money appropriated by Parliament for the purposes of the Essential Services Commission Enforcement Fund; and".

14Payments out of the Essential Services Commission Enforcement Fund

After section 54ZR(a) of the Essential Services Commission Act 2001 insert—

"(ab)amounts authorised by the Commission to fund the costs of monitoring and reporting on compliance with—

(i)the Victorian Energy Efficiency Target Act 2007; or

(ii)the Victorian Renewable Energy Act 2006; and

(ac)amounts authorised by the Commission to fund the costs of investigating contraventions or possible contraventions of—

(i)the Victorian Energy Efficiency Target Act 2007; or

(ii)the Victorian Renewable Energy Act 2006; and".

15Payments into the Essential Services Commission Operating Fund

After section 54ZU(d) of the Essential Services Commission Act 2001 insert—

"(da)money appropriated by Parliament for the purposes of the Essential Services Commission Operating Fund; and".

16Payments out of the Essential Services Commission Operating Fund

In section 54ZV(a) of the Essential Services Commission Act 2001, for "except" substitute "including".

Part 5—Amendment of Land Tax Act 2005

Division 1—Principal place of residence

17New sections 39A and 39B inserted

After section 39 of the Land Tax Act 2005 insert—

"39A   Joint assessments for unoccupied land subsequently used as principal place of residence

(1)This section applies in respect of a year if—

(a)land owned by joint owners is exempt land under section 61; and

(b)as at 31 December in the preceding year—

(i)one or more of the joint owners is not—

(A)a qualifying person in relation to the land; or

(B)an eligible trustee in relation to the land; or

(C)an eligible restricted owner in relation to the land; or

(ii)one or more qualifying persons in relation to the land does not intend to continuously use and occupy the land as their principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date.

(2)For the purposes of section 38—

(a)the joint owners are not to be jointly assessed for land tax in respect of the land under section 38(2), (2A) or (2B); and

(b)the land is taxable land in relation to the following joint owners—

(i)a joint owner who is not—

(A)a qualifying person in relation to the land; or

(B)an eligible trustee in relation to the land; or

(C)an eligible restricted owner in relation to the land;

(ii)a joint owner who is a qualifying person who does not intend to continuously use and occupy the land as the joint owner's principal place of residence for a period at least 6 months commencing on or before the qualifying occupation date;

(iii)a joint owner who is an eligible trustee, if a vested beneficiary does not intend to continuously use and occupy the land as the vested beneficiary's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date;

(iv)a joint owner who is an eligible restricted owner in relation to the land, if a natural person who has a right to reside on the land does not intend to continuously use and occupy the land as the person's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date; and

(c)each joint owner referred to in paragraph (b) may be separately assessed in respect of the land under section 38(3).

(3)In this section—

eligible restricted owner, in relation to land, means an owner of land on which a natural person has a right to reside;

eligible trustee, in relation to land, means trustee of a trust to which the land is subject and for which there is a vested beneficiary;

qualifying occupation date has the same meaning as it has in section 52(1);

qualifying person has the same meaning as it has in section 52(1);

right to reside—see section 53A;

trustee has the same meaning as it has in section 52(1).

39BJoint assessments for unoccupied land subsequently used as principal place of residence—residence requirement completed by some but not all

(1)This section applies in respect of a year if—

(a)land owned by joint owners is exempt land under section 61; and

(b)at least one of the following conditions is satisfied in relation to the land—

(i)one or more, but not all, of the joint owners is a qualifying person who did not continuously use and occupy the land as the joint owner's principal place of residence for a period at least 6 months commencing on or before the qualifying occupation date;

(ii)one or more, but not all, of the joint owners is an eligible trustee and a vested beneficiary did not continuously use and occupy the land as the vested beneficiary's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date;

(iii)one or more, but not all, of the joint owners is an eligible restricted owner, and a natural person who has right to reside on the land did not continuously use and occupy the land as the person's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date.

(2)For the purposes of section 38—

(a)the joint owners are not to be jointly assessed for land tax in respect of the land under section 38(2), (2A) or (2B); and

(b)the land is taxable land in relation to each joint owner referred to in subsection (1)(b); and

(c)each joint owner referred to subsection (1)(b) may be separately assessed in respect of the land under section 38(3).

(3)In this section—

eligible restricted owner, in relation to land, means an owner of land on which a natural person has a right to reside;

eligible trustee, in relation to land, means trustee of a trust to which the land is subject and for which there is a vested beneficiary;

qualifying occupation date has the same meaning as it has in section 52(1);

qualifying person has the same meaning as it has in section 52(1).

right to reside—see section 53A;

trustee has the same meaning as it has in section 52(1).".

18Insertion of headings in Division 1 of Part 4

(1)Before section 52 of the Land Tax Act 2005 insert—

"Subdivision 1—Interpretation".

(2)After section 53A of the Land Tax Act 2005 insert—

"Subdivision 2—Principal place of residence exemption".

(3)After section 55A of the Land Tax Act 2005 insert—

"Subdivision 3—Absence, death and land unfit for occupation".

(4)After section 58 of the Land Tax Act 2005 insert—

"Subdivision 4—Purchase and sale of principal place of residence".

(5)After section 60 of the Land Tax Act 2005 insert—

"Subdivision 5—Construction and renovation of principal place of residence".

(6)Before section 62 of the Land Tax Act 2005 insert—

"Subdivision 6—Partial exemptions".

19Definitions—Division 1 of Part 4

(1)In section 52(1) of the Land Tax Act 2005 insert the following definitions—

"qualifying occupation date, for a residence constructed or renovated on land, means the earlier of—

(a)the date that is 6 months after the works finish date for the construction or renovation; or

(b)the date that is 4 years after the works start date for the construction or renovation;

qualifying person, in relation to land, means—

(a)a natural person who is the owner of the land, other than a person who is—

(i)a trustee of a trust (including an implied or constructive trust) to which the land is subject; or

(ii)a beneficiary of a trust (including an implied or constructive trust) to which the land is subject; or

(iii)a unitholder in a unit trust scheme to which the land is subject; or

(iv)the owner of land on which a natural person has a right to reside; or

(b)a natural person who has a right to reside on the land; or

(c)a vested beneficiary of a trust to which the land is subject;

works finish date means—

(a)for the construction or renovation of a residence on land in respect of which a building permit is issued—

(i)if the building permit for the construction or renovation states that an occupancy permit is required, the date of the issue of the occupancy permit under the Building Act 1993; or

(ii)in any other case, the date of issue of the certificate of final inspection under that Act; or

(b)for the construction or renovation of a residence on land in respect of which a building permit is not issued, the date on which the construction or renovation is completed;

Note

An owner of land that is or has been exempt under section 61 must give the Commissioner written notice of the date on which the construction or renovation was completed if a building permit in respect of the construction or renovation was not issued—see section 61B. 

works start date, for the construction or renovation of a residence on land, means the earliest of the following dates—

(a)a date nominated by the owner of the land under section 61A(1) that is accepted by the Commissioner under section 61A(4);

(b)the date of the issue of any permit under the Planning and Environment Act 1987 for the development of the land that includes the construction or renovation;

(c)the date of the issue of a building permit for the construction or renovation;

(d)the date of the commencement of the construction or renovation.".

(2)In section 52(1) of the Land Tax Act 2005, in the definition of trustee, in paragraph (c), for "liquidator." substitute "liquidator;".

20Deferral of tax for residential land to be used during tax year

(1)After section 55A(2) of the Land Tax Act 2005 insert—

"(2A)The Commissioner may determine that land tax in respect of land for a year is not payable until the expiry of a 6 month period that begins and ends in that year if—

(a)the land is or has been exempt under section 61 and the works finish date for the construction or renovation of the residence on the land was on or after 1 July in the preceding year; and

(b)as at 31 December in the preceding year, a qualifying person in relation to the land does not use or occupy the land as the qualifying person's principal place of residence; and

(c)the Commissioner is satisfied that the qualifying person intends to continuously use and occupy the land as the qualifying person's principal place of residence for the 6 month period.".

(2)After section 55A(3) of the Land Tax Act 2005 insert—

"(4)If land referred to in subsection (2A) that would have been exempt land in respect of a year but for section 54(2) has been continuously used and occupied as the qualifying person's principal place of residence for the 6 month period that begins and ends in that year, the land becomes exempt land in respect of that year at the end of that period.".

21Section 61 substituted and new sections 61A to 61H inserted

For section 61 of the Land Tax Act 2005 substitute—

"61   Unoccupied land subsequently used as principal place of residence

(1)Subject to subsection (2), land is exempt land in respect of a year if the Commissioner is satisfied of all the following matters—

(a)as at 31 December in the preceding year—

(i)a qualifying person in relation to the land did not continuously use and occupy the land as the qualifying person's principal place of residence; and

(ii)the works start date for a construction or renovation of a residence on the land has occurred; and

(iii)the works finish date for the construction or renovation has not occurred;

(b)as at 31 December in the preceding year, a qualifying person in relation to the land intends to continuously use and occupy the land as the qualifying person's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date;

(c)the owner of the land did not derive any income from the land in the preceding year;

(d)for land on which a natural person has a right to reside—

(i)immediately before the natural person who has the right to reside was granted that right, the land was exempt land under section 54(1)(a) or (b); and

(ii)the natural person who has the right to reside is not entitled to—

(A)an exemption under this Division in respect of any land; or

(B)an exemption from land tax under a law of any other State or Territory that corresponds to this Division;

(e)for land other than land referred to in paragraph (d), the owner was not entitled to—

(i)an exemption under this Division in respect of any other land; or

(ii)an exemption from land tax under a law of any other State or Territory that corresponds to this Division.

(2)Subsection (1) does not apply for any year that is 5 years or more after the year in which the works start date occurred.

(3)To obtain an exemption under this section, an owner must—

(a)apply to the Commissioner for the exemption; and

(b)give the Commissioner any information the Commissioner requests for the purposes of enabling the Commissioner to determine whether the land is exempt under this section.

(4)If the Commissioner is satisfied as to the matters in subsection (1) with respect to only part of the land—

(a)land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and

(b)section 22 applies, if necessary, for that purpose.

Note

Section 61G provides for the Commissioner to revoke an exemption under this section in certain circumstances.

61ANomination of works start date

(1)An owner of land who makes an application under section 61 may nominate a date on which the owner undertook any of the activities specified in subsection (2) in respect of the construction or renovation of a residence on the land.

(2)For the purposes of subsection (1), the following activities are specified—

(a)obtaining a quote for the renovation or construction;

(b)consulting an architect, a builder or a planner in respect of the renovation or construction;

(c)the preparation of an application for a permit under the Planning and Environment Act 1987 for the development of the land that includes the construction or renovation;

(d)the preparation of an application for a building permit for the construction or renovation;

(e)any other similar preparatory activity for the construction or renovation.

(3)A nomination under subsection (1) must—

(a)be given to the Commissioner at the same time as the application; and

(b)be in writing; and

(c)include evidence of the activity.

(4)On receipt of a nomination under subsection (1), the Commissioner must decide—

(a)to accept the nomination, if the Commissioner is satisfied the nomination includes sufficient evidence that the specified activity has been undertaken; or

(b)to reject the nomination in any other case.

61BNotice of completion

(1)The owner of land that is or has been exempt under section 61 must give written notice to the Commissioner of the date on which the construction or renovation was completed if a building permit in respect of the construction or renovation was not issued.

(2)Notice must be given under this section within 30 days after the date on which the construction or renovation was completed.

(3)Notice under this section must be accompanied by evidence of the completion of the construction or renovation.

(4)Failure to notify the Commissioner in accordance with this section is a notification default.

61CNotice of failure to complete construction or renovation in time

(1)The owner of land that is or has been exempt under section 61 must give written notice to the Commissioner if, on the date that is 4 years after the works start date, the works finish date has not occurred.

(2)Notice must be given under this section within 30 days after the date that is 4 years after the works start date.

(3)Failure to notify the Commissioner in accordance with this section is a notification default.

61DNotice of qualifying person not starting period of residence in time

(1)The owner of land that is or has been exempt under section 61 must give written notice to the Commissioner if a qualifying person in relation to the land does not start using and occupying the land as the qualifying person's principal place of residence on or before the qualifying occupation date.

(2)Notice must be given under this section within 30 days after the qualifying occupation date.

(3)Failure to notify the Commissioner in accordance with this section is a notification default.

61ENotice of qualifying person not completing period of residence in time

(1)The owner of land that is or has been exempt under section 61 must give written notice to the Commissioner if a qualifying person does not continuously use and occupy the land as the qualifying person's principal place of residence for at least 6 months commencing on or before the qualifying occupation date.

(2)Notice must be given under this section within 30 days after the date that is 6 months after the qualifying occupation date.

(3)Failure to notify the Commissioner in accordance with this section is a notification default.

61FNotice of change of ownership

(1)The owner of land that is or has been exempt under section 61 must give written notice to the Commissioner if the owner intends to cease to be the owner before a qualifying person in relation to the land completes a period of continuous use and occupation of the land as the qualifying person's principal place of residence for at least 6 months commencing on or before the qualifying occupation date.

(2)Notice must be given under this section at least 30 days before the person ceases to be the owner of the land.

(3)Failure to notify the Commissioner in accordance with this section is a notification default.

61GRevocations of exemption under section 61

(1)The Commissioner may revoke an exemption under section 61 if the works finish date for the construction or renovation of a residence on land has not occurred within 4 years after the works start date.

(2)The Commissioner may revoke an exemption under section 61 if a qualifying person in relation to the land does not continuously use and occupy the land as the qualifying person's principal place of residence for a period of at least 6 months commencing on or before the qualifying occupation date.

Note

See sections 38, 39A and 39B in relation to land owned by joint owners.

(3)The Commissioner may revoke an exemption under section 61 if the person who applied to the Commissioner for the exemption ceases to be the owner of the land before a qualifying person in relation to the land continuously uses and occupies the land as the qualifying person's principal place of residence for the period referred to in subsection (2).

(4)The Commissioner may make an assessment or reassessment of land tax to give effect to the revocation of an exemption under this section. 

61HSubdivision applies to land despite change in legal description

This Subdivision applies to land or part of land whether or not there has been a change in the legal description of the land or part of the land.

Example

An example of a change in the legal description of the land is the issuing of new certificates of title of land following a subdivision of the land.".

22Consequential amendments to Taxation Administration Act 1997

(1)In section 3(1) of the Taxation Administration Act 1997, in the definition of notification default, for paragraphs (aa), (a), (ab), (b) and (c) substitute—

"(a)a failure to lodge a notice under section 34G of the Land Tax Act 2005; or

(b)a failure to lodge a notice under section 46K of the Land Tax Act 2005; or

(c)a failure to give notice to the Commissioner in accordance with section 61B, 61C, 61D, 61E or 61F of the Land Tax Act 2005; or

(d)a failure to notify the Commissioner of a change in circumstances in accordance with section 70N of the Land Tax Act 2005; or

(e)a failure to notify the Commissioner of an error or omission in accordance with section 104A of the Land Tax Act 2005; or

(f)a failure to give a notice to the Commissioner in accordance with section 104B of the Land Tax Act 2005;".

(2)In section 30(2A) of the Taxation Administration Act 1997, after "46K," insert "61B, 61C, 61D, 61E, 61F, 70N,".

(3)In section 81 of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021—

(a)in paragraph (a), for "paragraph (c)" substitute "paragraph (f)";

(b)for paragraph (b) substitute—

'(b)after paragraph (f) insert—

"(g)a failure to notify the Commissioner of an error or omission in accordance with section 26 of the Windfall Gains Tax Act 2021;".'.

Division 2—SDA enrolled dwellings

23Definitions—SDA enrolled dwelling

In section 3(1) of the Land Tax Act 2005 insert the following definitions—

"residential service has the same meaning as in section 3(1) of the Disability Act 2006;

SDA enrolled dwelling has the same meaning as in section 3(1) of the Residential Tenancies Act 1997;

SDA provider has the same meaning as in section 3(1) of the Residential Tenancies Act 1997;".

24Residential services for people with disabilities

In section 76A(1) of the Land Tax Act 2005—

(a)in paragraph (a) omit "within the meaning of the Disability Act 2006";

(b)in paragraph (b) omit "within the meaning of the Residential Tenancies Act 1997".

25Exemption of land under construction for certain exempt uses

(1)In section 78A(1) of the Land Tax Act 2005—

(a)in paragraph (d), for "village." substitute "village; or";

(b)after paragraph (d) insert—

"(e)an SDA enrolled dwelling.".

(2)In section 78A(2)(a) of the Land Tax Act 2005, for "or retirement village" substitute ", retirement village or SDA enrolled dwelling".

(3)In section 78A(3)(b) of the Land Tax Act 2005, for "or retirement village" substitute ", retirement village or SDA enrolled dwelling".

(4)In section 78A(5) of the Land Tax Act 2005, for "supported residential service, residential service or retirement village" substitute "a supported residential service, a residential service, a retirement village or an SDA enrolled dwelling".

(5)In section 78A(7) of the Land Tax Act 2005, for "supported residential service, residential service or retirement village" substitute "a supported residential service, a residential service, a retirement village or an SDA enrolled dwelling".

(6)Section 78A(8) of the Land Tax Act 2005 is repealed.

Division 3—Transitional provisions

26New clauses 19 and 20 of Schedule 3 inserted

After clause 18 of Schedule 3 to the Land Tax Act 2005 insert—

"19   State Taxation and Treasury Legislation Amendment Act 2022

(1)Section 61, as in force immediately before the commencement day, continues to apply to an owner who was assessed for land tax in respect of land if a construction or renovation of a residence on land is completed before the commencement day.

Note

Section 61, as in force immediately before the commencement day, provides that owners who have paid land tax are entitled to refunds in certain circumstances once a construction or renovation of a residence is completed.

(2)Section 78A, as amended by the amending Act, applies, and is taken always to have applied, in respect of the 2020 and 2021 tax years.

(3)A taxpayer is entitled to a refund of any land tax paid in respect of the 2020 or 2021 tax years that is not payable because of subclause (2).

(4)In this clause—

amending Act means the State Taxation and Treasury Legislation Amendment Act 2022;

commencement day means the day on which Part 5 of the amending Act comes into operation.

20Temporary arrangements—unoccupied land subsequently used as principal place of residence

(1)Land is exempt land in respect of an applicable year if—

(a)before the commencement day, a residence was being constructed or renovated on the land; and

(b)the works finish date for the construction or renovation did not occur before the commencement day; and

(c)the Commissioner is satisfied of the matters set out in section 61(1)(a) to (e).

(2)Subclause (1) does not apply for an applicable year that is 5 years or more after the year in which the works start date occurred.

(3)To obtain an exemption under subclause (1), an owner must—

(a)apply to the Commissioner for the exemption; and

(b)give the Commissioner any information the Commissioner requests for the purposes of enabling the Commissioner to determine whether the land is exempt under that subclause.

(4)If the Commissioner is satisfied as to the matters set out in section 61(1)(a) to (e) with respect to only part of the land—

(a)land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and

(b)section 22 applies, if necessary, for that purpose.

(5)Section 61A applies to an owner of land who makes an application under subclause (3) as if the reference to section 61 were a reference to subclause (1).

(6)Sections 61B, 61C, 61D, 61E and 61F apply to the owner of land that is exempt under subclause (1) as if each reference to section 61 were a reference to subclause (1).

(7)Sections 39A, 39B, 55A and 61G apply in respect of land that is exempt land under subclause (1) as if each reference to section 61 in those sections were a reference to subclause (1).

(8)This clause applies to land or part of land whether or not there has been a change in the legal description of the land or part of the land.

(9)In this clause—

amending Act means the State Taxation and Treasury Legislation Amendment Act 2022;

applicable tax year means any of the following tax years—

(a)the 2019 tax year;

(b)the 2020 tax year;

(c)the 2021 tax year;

(d)the 2022 tax year;

commencement day means the day on which Part 5 of the amending Act comes into operation;

works finish date has the same meaning as in section 52(1).".

Part 6—Amendment of Payroll Tax Act 2007

27Definitions

In section 3(1) of the Payroll Tax Act 2007 insert the following definition—

"service provider, in relation to an employment agency contract—see section 37;".

28New section 36A inserted

Before section 37 of the Payroll Tax Act 2007 insert—

"36A   Division not applicable to wages paid to common law employees

This Division does not apply in relation to wages that are exempt wages under section 66B and clause 19A of Schedule 2.".

29New Division 10 inserted in Part 4

After Division 9 of Part 4 of the Payroll Tax Act 2007 insert—

"Division 10—Miscellaneous

66BEmployment agents supplying their common law employees

Wages are exempt wages as provided for in clause 19A of Schedule 2.".

30New clause 19A inserted in Schedule 2

After clause 19 of Schedule 2 to the Payroll Tax Act 2007 insert—

"19A   Employment agents supplying their common law employees

(1)Wages are exempt wages if—

(a)they are paid or payable for services that were performed under an employment agency contract by a service provider for a client of an employment agent; and

(b)the service provider performed the services as an employee of the employment agent; and

(c)the wages would be exempt wages under Part 4 (other than section 50 or Division 4 or 5 of that Part), or Part 3 of this Schedule (other than clause 16 or 16A), had the service provider performed the services as an employee of the client; and

(d)the client has given a declaration to the effect of paragraph (c), in the form approved by the Commissioner, to the employment agent.

(2)Wages are also exempt wages if—

(a)they are paid or payable for services that were performed in the prescribed circumstances by a prescribed person or a person who is member of a class that is prescribed; and

(b)the wages would be exempt wages under Part 4 (other than section 50 or Division 4 or 5 of that Part), or Part 3 of this Schedule (other than clause 16 or 16A), had the person referred to in paragraph (a) performed the services as an employee of the person for whom they were performed; and

(c)the person for whom the services are performed has given a declaration to the effect of paragraph (b), in the form approved by the Commissioner, to a prescribed entity or an entity that is of a class that is prescribed.

(3)A reference in this clause to an employee does not include a reference to a person who is an employee only because the person is taken to be an employee by Division 8 of Part 3 or any other provision of this Act.".

Part 7—Amendment of Taxation Administration Act 1997

31Section 12A substituted

For section 12A of the Taxation Administration Act 1997 substitute—

"12A   Deemed assessment

(1)The Commissioner is taken to have made an assessment of a tax liability of a taxpayer in respect of a dutiable transaction under the Duties Act 2000 if a person uses the on-line duty payment system to make an irrevocable commitment to—

(a)pay the duty payable in respect of the dutiable transaction; or

(b)not pay any duty in respect of the dutiable transaction, if no duty is payable.

(2)A deemed assessment under subsection (1) is taken to have been made on the later of—

(a)the making of the irrevocable commitment to pay duty or to not pay duty (as the case requires); or

(b)the completion of the dutiable transaction.

(3)A deemed assessment of a tax liability may consist of or include a determination that there is not a particular tax liability.

(4)To avoid doubt, if a person has not made an irrevocable commitment to pay duty or to not pay duty in respect of a dutiable transaction under the Duties Act 2000, any amount (including a nil amount) that the on-line duty payment system indicates is payable or not payable in respect of the transaction is—

(a)an estimate only; and

(b)not taken to be an assessment of the tax liability of a taxpayer.".

32Permitted disclosures to particular persons or for particular purposes

(1)After section 92(1)(e)(vha) of the Taxation Administration Act 1997 insert—

"(vhb)the Australian Financial Security Authority; or

(vhc)the Australian Transaction Reports and Analysis Centre; or

(vhd)a prescribed Commonwealth enforcement body, for the purposes of criminal investigations or inquiries, law enforcement activities or public revenue protection activities conducted by the body; or

(vhe)a body that is a member of the Phoenix Taskforce, for the purposes of law enforcement activities or public revenue protection activities conducted by the Phoenix Taskforce; or".

(2)In section 92(2) of the Taxation Administration Act 1997 insert the following definitions—

"Commonwealth enforcement body means a body that is—

(a)established under a law of the Commonwealth; and

(b)an enforcement body within the meaning of section 6(1) of the Privacy Act 1988 of the Commonwealth;

Phoenix Taskforce means the taskforce—

(a)consisting of bodies established under laws of the Commonwealth and the States and Territories; and

(b)established by the Commonwealth to detect, deter and disrupt illegal phoenix activity; and

(c)prescribed by item 5 of the table to regulation 67 of the Taxation Administration Regulations 2017 of the Commonwealth;".

33Prohibition on secondary disclosures of information

In section 94(1) of the Taxation Administration Act 1997, for paragraphs (a) and (b) substitute—

"(a)the disclosure is made—

(i)to enable the person to exercise a function conferred on the person by law for the purpose of the enforcement of a law or protecting the public revenue; and

(ii)with the consent of the Commissioner; or

(b)the disclosure is made with the consent of the person to whom the information relates or at the request of a person acting on behalf of that person.".

34Objections lodged out of time

After section 100(1) of the Taxation Administration Act 1997 insert—

"(1A)An objection lodged out of time under this section must be lodged within 5 years after the date of service of the notice of assessment or decision on the taxpayer.".

35When is service effective?

For section 125A(3) of the Taxation Administration Act 1997 substitute—

"(3)If the Commissioner is taken under section 12A to have made an assessment of a tax liability of a taxpayer in respect of a dutiable transaction under the Duties Act 2000, the Commissioner is taken to have served the assessment on the taxpayer on the later of—

(a)the making of an irrevocable commitment to—

(i)pay the duty payable in respect of the dutiable transaction; or

(ii)not pay any duty in respect of the dutiable transaction, if no duty is payable; or

(b)the completion of the dutiable transaction.".

Part 8—Amendment of Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

36New section 40A inserted

After section 40 of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 insert—

'40A   Exemption in relation to land owned by university

(1)Windfall gains tax is not imposed on land that is rezoned by a WGT event if—

(a)the land is owned by a university; and

(b)the university is a charity; and

(c)the Commissioner is satisfied that any land revenue from the land will be used to further the university's charitable purposes.

(2)For the purposes of subsection (1)(c), the university must provide the Commissioner with a declaration as to—

(a)the nature of any land revenue from the land; and

(b)the intended application of the land revenue; and

(c)how the application of the land revenue will further the university's charitable purposes.

(3)In this section—

land revenue means any revenue arising from the sale or use of the land, including any of the following—

(a)sale proceeds from the sale of the land;

(b)rental income from leasing the land;

(c)licence fees from licensing the land;

registered higher education provider has the same meaning as in section 5 of the Tertiary Education Quality and Standards Agency Act 2011 of the Commonwealth;

university means a registered higher education provider that is registered under the Tertiary Education Quality and Standards Agency Act 2011 of the Commonwealth in the "Australian University" provider category of the Higher Education Standards Framework.'.

Part 9—Repeal of this Act

37Repeal of this Act

This Act is repealed on 1 July 2023.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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Endnotes

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.


Minister's second reading speech—

Legislative Assembly: 11 May 2022

Legislative Council: 26 May 2022

The long title for the Bill for this Act was "A Bill for an Act to amend the Borrowing and Investment Powers Act 1987, the Duties Act 2000, the Essential Services Commission Act 2001, the Land Tax Act 2005, the Payroll Tax Act 2007, the Taxation Administration Act 1997 and the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021, to make consequential amendments to other Acts and for other purposes."

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