State Taxation Legislation (Further Amendment) Act 2002 (Vic)

State Taxation Legislation (Further Amendment)

Act 2002

Act No. 30/2002

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.	Dutiable transactions and dutiable property	6
5.	No double duty	6
6.	Aggregation of dutiable transactions	7
7.	Trust exemptions	8
8.	Mortgage duty	8
9.	Motor vehicle duty	9
10.	New section 217A inserted	11

217A. Assessment of duty 11

11.	Repeal of registered used car dealer provisions	12
12.	Refund of motor vehicle duty	12
13.	Transitional provisions—mortgage duty	12
14.	Transitional provisions—motor vehicle duty	13

11. Provisions relating to Chapter 9 (Motor vehicle duty) 13

15. Transitional provisions—refunds 13

17.          State Taxation Legislation (Further Amendment)

Act 2002 13

PART 3—LAND TAX ACT 1958 14

16.      New method for determining the unimproved value of land

for land tax purposes 14

17.      Exemption of land used for agricultural shows and similar

activities 16

18.      Consequential amendment of Subordinate Legislation

Act 1994 17

i

Section	Page
PART 4—PAY-ROLL TAX ACT 1971	18

19.	Exemption for schools	18
20.	Statute law revision	19

═══════════════

ENDNOTES 20

ii

Victoria

No. 30 of 2002

State Taxation Legislation (Further

Amendment) Act 2002†

[Assented to 12 June 2002]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The main purpose of this Act is—

(a) to amend the Duties Act 2000—

(i)

with respect to dutiable transactions, duty;

State Taxation Legislation (Further Amendment) Act 2002

s. 2 Act No. 30/2002

(ii)  to revise motor vehicle duty, including the repeal of provisions for registration of used car dealers;

(b) to amend the Land Tax Act 1958—

(i)  to discontinue the use of equalization factors and introduce a new method for determining the value of land for land tax purposes;

(ii)  to exempt land used for agricultural shows and similar activities;

(c) to amend the Pay-roll Tax Act 1971 with respect to the exemption for wages paid by schools.

2. Commencement

(1) This Part, Part 3 (other than section 17) and

sections 6, 7(1), 8(1) and (2) and 15 come into
operation on the day after the day on which this
Act receives the Royal Assent.

(2) Sections 3(1) and (3), 4, 5, 7(2), 8(3) and 13 are

deemed to have come into operation on 1 July
2001.

(3) Section 17 is deemed to have come into operation on 1 January 2002.

(4) The remaining provisions of this Act come into operation on 1 July 2002.

__________________
State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 3

PART 2—DUTIES ACT 2000

See:

3. Definitions Act No. 79/2000.

(1) In section 3(1) of the Duties Act 2000— Reprint No. 1
as at

(a) for the definition of "mortgage-backed	15 July 2001
security" substitute—	and
amending
Act Nos
' "mortgage-backed security" means—	27/2001, 48/2001 and

(a) an interest in a trust that entitles 79/2001.

the holder of or beneficial owner	LawToday:
under the interest—	dpc.vic. gov.au
(i)	the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a mortgage or any money payable by the mortgagor under the mortgage (whether the money is payable to the holder of or beneficial owner under the interest on the same terms and conditions as

to the whole or any part of or

(ii) the rights or entitlements of a
mortgagee and any other
rights or entitlements in
respect of a pool of
mortgages or any money
payable by mortgagors under
those mortgages (whether the
money is payable to the
holder of or beneficial owner

to the whole or any part of same terms and conditions as

State Taxation Legislation (Further Amendment) Act 2002

s. 3 Act No. 30/2002

under the mortgages or not);

or

(iii) substantially or, if the
regulations prescribe the
extent, to the prescribed
extent, from the income or

to payments that are derived mortgages—

and that may, in addition, entitle
the holder or beneficial owner to a
transfer or assignment of the

mortgage or mortgages; or

(b) writing) the payments under
which by the person who issues or
makes the debt security are
derived substantially or, if the
regulations prescribe the extent, to

a debt security (whether or not in income or receipts of a pool of mortgages; or

(c) any of the following—

(i) conferring or comprising a
right or interest (whether
described as a unit, bond or
otherwise) of or on a
beneficiary in a scheme
under which any profit or
income in which the
beneficiaries participate
arises from the acquisition,
holding, management or

an interest in a trust creating, property, or any instrument

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 3

that evidences such a right or
interest;

(ii)  a security (whether or not in writing) the payments under which by the person who

issues or makes the security
are derived substantially
from the income or receipts
of prescribed property;

(iii)  an interest in a trust, a debt security (whether or not in writing), an instrument or property that creates an

interest in or charge over an
interest in a trust, a debt
security (whether or not in
writing) or other instrument
or property, to which
paragraph (a) or (b) or sub-
paragraph (i) or (ii) of this
paragraph applies—

but does not include an instrument or

property comprising—

(d) a mortgage; or

(e) the transfer of a mortgage; or

(f) a declaration of trust; or

(g) description of instruments, or
property of a class or description
of property, prescribed not to be a

an instrument of a class or purposes of this definition;';

State Taxation Legislation (Further Amendment) Act 2002

s. 4 Act No. 30/2002

(b) after the definition of "premium" insert— ' "prescribed property" means any of the

following—

(a) cash;

(b)

investments of a kind referred to (f), (g), (h), (i), (ia), (j), (k) or (o) of the Trustee Act 1958 as in force immediately before the commencement of section 4 of the Trustee and Trustee Companies (Amendment) Act 1995;'.

(2) In section 3(1) of the Duties Act 2000, the definition of "registered used car dealer" is repealed.

(3) In section 3(2) of the Duties Act 2000, paragraphs

(a), (b) and (c) are repealed.

4. Dutiable transactions and dutiable property

In the Duties Act 2000—

(a)	in section 7(1)(b)(vi), for "an estate in land" substitute "dutiable property";
(b)	in section 10(1)(d), for "held or used in connection with a dutiable transaction in respect of any estate in land" substitute ", if the subject of an arrangement that includes a dutiable transaction over an estate in land";

(c) in section 11, sub-section (2) is repealed.

5. No double duty

At the end of section 17 of the Duties Act 2000 insert—

"(2) No duty is chargeable under this Chapter on

a transfer to a trustee of dutiable property
subject to a declaration of trust if ad valorem

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 6

duty has been paid on the declaration of trust
in respect of the same dutiable property.

(3) No duty is chargeable under this Chapter on a declaration of trust that declares the same trusts as those upon and subject to which the

same dutiable property was transferred to the person declaring the trust if ad valorem duty has been paid on the transfer.".

6. Aggregation of dutiable transactions

(1) In section 24(1) of the Duties Act 2000—

(a) for paragraph (a) substitute—

"(a) either—

(i)  in the case of dutiable transactions that are transfers on a sale of an item or part of dutiable property— the contracts of sale are entered into within 12 months; or

(ii)

in any other case—the dutiable 12 months; and";

(b) paragraph (b) is repealed.

(2) In section 24 of the Duties Act 2000, for sub-

section (3) substitute—

"(3) The dutiable value of aggregated dutiable

property is the sum of the dutiable values of the items or parts of the dutiable property as at—

(a)	in the case of a transfer on a sale of the item or part—the time the contract of sale was entered into;
(b)	in any other case—the time the dutiable transaction relating to the item or part occurred.".

State Taxation Legislation (Further Amendment) Act 2002

s. 7 Act No. 30/2002

7. Trust exemptions

(1) In section 33(2) of the Duties Act 2000, after

"special trustee" insert "solely".

(2) In section 34(1) of the Duties Act 2000—

(a) in paragraph (a)—

(i)	after "identified dutiable property" insert "or marketable securities referred to in section 10(2)";
(ii)

in sub-paragraphs (i) and (ii), after marketable securities";

(b) for paragraph (b) substitute—

"(b) a transfer of dutiable property or

marketable securities referred to in
section 10(2) from an apparent
purchaser to the real purchaser in a case
where dutiable property or marketable
securities are vested in an apparent
purchaser upon trust for the real
purchaser who provided the money for
the purchase of the dutiable property or

marketable securities.".

8. Mortgage duty

(1) In section 152 of the Duties Act 2000, after sub- section (4) insert—

"(5) A reference in sub-section (3) to land does

not include a reference to an interest in land
that is held by way of security.".

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 9

(2) At the end of section 165 of the Duties Act 2000

insert—

"(2) A collateral mortgage that no longer secures

an amount secured by a mortgage,
instrument or mortgage package mentioned
in sub-section (1) is not security for another
advance unless mortgage duty for the
amount of the other advance is paid.".

(3) In section 166(1) of the Duties Act 2000, for "an

earlier duly stamped mortgage to the same
borrower" substitute "an earlier mortgage to the
same borrower duly stamped under this or a
corresponding Act".

9. Motor vehicle duty

(1) In section 215 of the Duties Act 2000, for sub- section (2) substitute—

"(2) A person who knowingly states in a

statement of dutiable value a value that is
less than the dutiable value of the motor
vehicle is liable to a penalty of an amount
equal to double the difference between the
amount of duty payable on the correct
dutiable value and the amount of duty paid.

(3) The penalty imposed by sub-section (2) is in

addition to any penalty tax and interest
payable under the Taxation Administration
Act 1997.

(4) Section 52 of the Taxation Administration Act 1997 does not apply to the statement of dutiable value.

(5) The Commissioner, in such circumstances as

the Commissioner considers appropriate,
may remit the penalty imposed by sub-
section (2) by any amount.".

State Taxation Legislation (Further Amendment) Act 2002

s. 9 Act No. 30/2002

(2) In section 216 of the Duties Act 2000, for sub- section (2) substitute—

"(2) Duty on an application for transfer of

registration of a motor vehicle is payable—

(a)	in the case of a vehicle acquired from a licensed motor car trader—by the acquirer and the licensed motor car trader, who are jointly and severally liable to pay the duty;
(b)	in any other case—by the acquirer of the vehicle.".

(3) In section 216(3) of the Duties Act 2000—

(a)	in paragraph (a), for "registered used car dealer" substitute "licensed motor car trader";
(b)	in paragraph (b), for "dealer" substitute "trader".

(4) In section 216 of the Duties Act 2000, after sub- section (3) insert—

"(4) A person referred to in sub-section (3) is

entitled to a refund of any amount paid to the
licensed motor car trader in respect of duty
that is in excess of the amount of duty
chargeable under this Chapter on the
application for transfer of registration of the
vehicle to the person.".

(5) At the end of section 217 of the Duties Act 2000

insert—

"(2) If duty chargeable under this Chapter on an

application for transfer of registration of a motor vehicle is not paid on or before the making or lodging of the application, the

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 10

person required by law to make or lodge the

application is liable to a penalty of—

(a) an amount equal to the amount of duty chargeable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was made or lodged; or

(b) $25—

whichever is the greater.

(3) The penalty imposed by sub-section (2) is in

addition to any penalty tax and interest
payable under the Taxation Administration
Act 1997.

(4) The Commissioner, in such circumstances as

the Commissioner considers appropriate,
may remit the penalty imposed by sub-
section (2) by any amount.".

10. New section 217A inserted

After section 217 of the Duties Act 2000 insert—

"217A. Assessment of duty

(1) On the making or lodging of an application

for registration or transfer of registration of a
motor vehicle—

(a)	the Commissioner is taken to have made an assessment of duty on the application; and
(b)	the application is taken to be a notice of assessment of the duty; and
(c)	the Commissioner is taken to have served the notice of assessment on the person who is liable to pay the duty.

(2) The liability for duty on the application is the amount worked out by applying the rate of

State Taxation Legislation (Further Amendment) Act 2002

s. 11 Act No. 30/2002

duty to the dutiable value of the vehicle as at

the date of the application.".

11. Repeal of registered used car dealer provisions

In the Duties Act 2000—

(a) in Chapter 9, Part 2 is repealed;

(b) section 230—
"Special dealers—trading stock,

insert the following heading to education";

(c)	in section 230, for "registered used car dealer" (where twice occurring) substitute "special dealer";
(d)	in section 231, after "registration" (where twice occurring) insert "or transfer of registration".

12. Refund of motor vehicle duty

In section 240(1) of the Duties Act 2000, after paragraph (c)(iii) insert—

"; or

(d) after the duty is paid the application is found—

(i) to be void in law from the beginning; or

(ii) to have been made in error.".

13. Transitional provisions—mortgage duty

In clause 9 of Schedule 2 to the Duties Act 2000, after sub-clause (5) insert—

"(6) Sub-clause (4) does not apply to the extent that duty
has been paid under a corresponding Act on an
amount to which that sub-clause would otherwise
apply.".

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 14

14. Transitional provisions—motor vehicle duty

In Schedule 2 to the Duties Act 2000, for clause 11 substitute—

"11. Provisions relating to Chapter 9 (Motor vehicle duty)

The amendments made to Chapter 9 by sections 9 and applications for registration or transfer of registration of motor vehicles made or lodged on or after 1 July 2002.".

10 of the State Taxation Legislation (Further

15. Transitional provisions—refunds

In Schedule 2 to the Duties Act 2000, after clause 16 insert—

"17. State Taxation Legislation (Further Amendment)

Act 2002

A person is entitled to a refund of any amount paid as
duty before the commencement of section 15 of the
State Taxation Legislation (Further Amendment)
Act 2002 that was not payable under this Act as
amended by sections 3(1) and (3), 4, 5, 7(2), 8(3) and

13 of that Act.".

__________________
State Taxation Legislation (Further Amendment) Act 2002

s. 16 Act No. 30/2002

PART 3—LAND TAX ACT 1958

See:	16. New method for determining the unimproved value of
Act No.
6289/1958.	land for land tax purposes
Reprint No. 11
as at	(1) In section 3 of the Land Tax Act 1958—
18 October

2001   (a) in sub-section (1), insert the following

and
amending	definitions—
Act No.
79/2001.	' "applicable general valuation", in relation
LawToday:
to a tax year, means the last general
dpc.vic.	valuation returned to the municipal
gov.au	council before 1 January in the year immediately preceding the tax year;

"return date", in relation to a valuation, is

the date on which that valuation is
returned to the municipal council by the
person who carried out that valuation;

"site value" has the same meaning as in the

Valuation of Land Act 1960;

"subsequent general valuation", in relation to a tax year, means a general valuation returned to the municipal council after

the applicable general valuation for that tax year but before 1 January in the tax year;

"supplementary valuation" means a

valuation which is made under section
13DF of the Valuation of Land Act
1960 and is supplementary to the last
general valuation returned to the
municipal council before 1 January in
the year immediately preceding the tax

year;

"tax year" means a year for which tax is

being assessed;';
State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 16

(b)

in sub-section (2)(a), before "the unimproved to and including 2002,";

(c) in sub-section (2), after paragraph (a) insert—

"(ab) in respect of any tax year after 2002—

(i)  if the applicable general valuation has not been used for the purposes of assessing tax in a previous year, the unimproved value of any land

is an amount equal to the site
value of the land as at the relevant
date;

(ii)  if the applicable general valuation has been used for the purposes of assessing tax in a previous year,

the unimproved value of any land
is an amount equal to the site
value of the land as at the relevant
date multiplied by the prescribed
indexation factor (if any) applying
to the land for the tax year;".

(2) In section 3 of the Land Tax Act 1958, after sub- section (2A) insert—

"(3) For the purposes of sub-section (2)(ab)(ii),

the prescribed indexation factor for land
within an area is the factor (if any)
prescribed by the regulations for land within
that area for the tax year, being a factor
determined by the Valuer-General that in his
or her opinion reflects half the aggregate
movement in the site value of land classified
residential, commercial or industrial within
that area between the applicable general
valuation and the subsequent general
valuation.

State Taxation Legislation (Further Amendment) Act 2002

s. 17 Act No. 30/2002

(3A) In determining a factor for the purposes of

sub-section (3), the Valuer -General is to disregard the value of land that is exempt from land tax as a principal place of
residence.

(3B) For the purposes of sub-section (3A), the

Valuer-General may rely on any information
provided to him or her by the
Commissioner.".

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

(a) in sub-section (4), after "subsequent year" insert "up to and including the year commencing on 1 January 2002";

(b) sub-section (6) is repealed.

17.  Exemption of land used for agricultural shows and similar activities

In section 9(1) of the Land Tax Act 1958, after paragraph (f) insert—

"(fa) land which—

(i)  is vested in, or held in trust for, a body (whether incorporated or not) established for the purposes of conducting agricultural shows, farm machinery field days or activities of a similar nature that is not carried on for the purposes of profit or gain to its individual members; and

(ii) is used for the purposes of the body;".

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 18

18. Consequential amendment of Subordinate Legislation Act 1994

See:

In section 8(1)(c) of the Subordinate Legislation	Act No.
Act 1994, for "equalisation factor for the	104/1994. Reprint No. 1
purposes" substitute "indexation factor for the	as at
purposes of section 3(2)(ab)(ii)".	12 June 1997 and
amending Act Nos
46/1998,
74/2000,
98/2000 and
2/2001. LawToday:
dpc.vic.
gov.au

__________________
State Taxation Legislation (Further Amendment) Act 2002

s. 19 Act No. 30/2002

PART 4—PAY-ROLL TAX ACT 1971

See:	19. Exemption for schools
Act No.
8154/1971.
Reprint No. 8	In section 10(1) of the Pay-roll Tax Act 1971—
as at

(a) for paragraph (da) substitute—

15 July 2001
and

amending	"(da) by a school or college that—
Act No. 82/2001. LawToday:	(i) is carried on by a body corporate,
society or association otherwise
dpc.vic.	than for the purpose of profit or
gov.au	gain to the individual members of the body corporate, society or association and is not carried on by or on behalf of the State of Victoria; and

(ii)  provides education predominantly at or below the secondary level of education and to students, the

majority of whom are aged under
19 years of age; and

(iii)  was in existence as such a school or college before 27 May 1997—

being wages paid or payable to a person in relation to the provision of education at or below the secondary level of

education;";

(b) after paragraph (da) insert—

"(daa) by a school or college within the

meaning of paragraph (da) as in force that paragraph;";

immediately before the commencement
of section 19(a) of the State Taxation
Legislation (Further Amendment)

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002 s. 20

(c) in paragraph (db), after "paragraph (da)" insert "or (daa)".

20. Statute law revision

In section 9A(3A)(j) of the Pay-roll Tax Act
1971, in paragraph (a) of the substituted
section 11B(2), for "under section 19" substitute

"otherwise than under this section".

═══════════════
State Taxation Legislation (Further Amendment) Act 2002

Endnotes Act No. 30/2002

ENDNOTES

†

Minister's second reading speech—

Legislative Assembly: 18 April 2002

Legislative Council: 28 May 2002

The long title for the Bill for this Act was "to make further miscellaneous
amendments to the Duties Act 2000, the Land Tax Act 1958 and the
Pay-roll Tax Act 1971 and for other purposes."