Untitled document

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—BUSINESS FRANCHISE (TOBACCO) ACT 1974 3

3.	Principal Act	3
4.	Definitions	3
5.	Secrecy provisions	3
6.	Register of licences	3
7.	Refusal of retail licences	4
8.	Wholesale licence applications	5
9.	Sales to and purchases from unlicensed persons	7
10.	New section 9AA inserted	8
9AA. Display of retail licences	8
11.	Licences revocable at will	8
12.	New section 9BA inserted	8
9BA. Suspension of retail licences	8
13.	Effect of suspension	9
14.	New section 9E inserted	9
9E. Revocation of retail licences	9
15.	Transportation records	10

PART 3—DEBITS TAX ACT 1990 11

16.	Exemptions	11
17.	Repeal of section 9	11

PART 4—FINANCIAL INSTITUTIONS DUTY ACT 1982 12

18. Statute law revision 12

PART 5—LAND TAX ACT 1958 13

19.	Lands exempted from land tax	13
20.	Second Schedule	13

i

Section	Page
PART 6—PAY-ROLL TAX ACT 1971	14

21. Miscellaneous amendments 14

PART 7—STAMPS ACT 1958 15

22.	Refurbished lots	15
23.	First home buyers' exemption	15
24.	Deductions for conveyances in a distribution on winding up	17
25.	New section 137MC inserted	20
137MC. Exemption for re-financed business loan	20
26.	Cattle stamp duty	23

PART 8—VALUATION OF LAND ACT 1960 24

27. Improvement 24

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NOTES 25

ii

Victoria

No. 10 of 1996

State Taxation (Omnibus Amendment)

Act 1996†

[Assented to 25 June 1996]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to make miscellaneous
amendments to the Business Franchise
(Tobacco) Act 1974, the Debits Tax Act 1990,
the Financial Institutions Duty Act 1982, the
Land Tax Act 1958, the Pay-roll Tax Act 1971,
the Stamps Act 1958 and the Valuation of Land
Act 1960.

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 2

2. Commencement

(1) This Act (except sections 20, 23 and 26) comes

into operation on the day on which it receives the
Royal Assent.

(2) Section 20 is deemed to have come into operation on 1 January 1994.

(3) Section 23 comes into operation on 1 July 1996.

(4) Section 26 comes into operation on a day to be

proclaimed.

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State Taxation (Omnibus Amendment) Act 1996

s. 3 Act No. 10/1996

PART 2—BUSINESS FRANCHISE (TOBACCO) ACT 1974

No. 8597.

Reprinted to	3. Principal Act
No. 66/1988
and	In this Part, the Business Franchise (Tobacco)
subsequently	Act 1974 is called the Principal Act.
amended by Nos 57/1989, 75/1989,
54/1990, 76/1992, 104/1993, 80/1994, 119/1994, 55/1995 and
101/1995.

4. Definitions

In section 2(1) of the Principal Act, after the
definition of "licensee" insert—

'"listed company" means a corporation a security

of which is listed on the Australian Stock
Exchange;

"major shareholder" of a corporation means a person who has a beneficial interest in the corporation that exceeds 10% of the total nominal value of beneficial interests in the

corporation;'.

5. Secrecy provisions

In section 5(1) of the Principal Act, before
paragraph (b) insert—

"(a) an environmental health officer appointed

under section 30A of the Health Act 1958;".

6. Register of licences

In section 5A of the Principal Act, after sub-section (2) insert—

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 7

"(3) The Commissioner may publish the Register

or an extract from the Register in any
manner he or she sees fit.

(4) Without limiting the generality of sub-

section (3), the Commissioner may publish
the following information about a person
whose licence has been suspended or

revoked—

(a) the person's name;

(b)	any business or trading name under which the person is known to have carried on tobacco wholesaling or tobacco retailing;
(c)	the address of any premises on which the person is known to have carried on tobacco wholesaling or tobacco retailing;
(d)	the number of the licence that was suspended or revoked.".

7. Refusal of retail licences

For section 7(3) of the Principal Act substitute—
"(3) Subject to sub-section (3A) and section

9(3)(d), the Commissioner must issue a retail tobacconist's licence to an applicant if the fee required to be paid for the licence has been

paid, unless, within the period of 5 years
immediately preceding the date of the

application—

(a)	the applicant has been convicted of an offence against this Act; or
(b)	the applicant has had any licence issued under this Act (other than a licence issued under section 9(2)) revoked—

State Taxation (Omnibus Amendment) Act 1996

s. 8 Act No. 10/1996

in which case the Commissioner may refuse

to issue the licence.".

8. Wholesale licence applications

(1) In section 7AA of the Principal Act—

(a)	in sub-section (3)(b)(ii) after "applicant" (where secondly occurring) insert "and, if the applicant is not a listed company, each company secretary and major shareholder (if any) of the applicant";
(b)	in sub-section (4)(c)(ii) after "member" (where secondly occurring) insert "and, if the applicant or member is not a listed company, each company secretary and major shareholder (if any) of the applicant or member".

(2) In section 7AB of the Principal Act—

(a) in sub-section (1)—

(i)

in paragraph (b) after "applicant" the applicant is not a listed company, each company secretary and major shareholder (if any) of the applicant";

(ii)

in paragraph (d) after "applicant" the applicant is not a listed company, any company secretary or major shareholder of the applicant";

(b) in sub-section (3) after "held" insert " , or was an associate of a person (other than the applicant) who held,";

(c) in sub-section (4)—

(i)

in paragraph (b) after "applicant" if the applicant is not a listed company,

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996	s. 8
a company secretary or major shareholder of the applicant";

(ii)

in paragraph (d) after "applicant" the applicant is not a listed company, each associate of each company secretary or major shareholder (if any) of the applicant".

(3) In section 7AC(3) of the Principal Act—

(a)	in paragraph (b) after "applicant" (where secondly occurring) insert "or, if the applicant is not a listed company, any company secretary or major shareholder of the applicant";
(b)	in paragraph (d) after "member" (where secondly occurring) insert "or, if that member is not a listed company, any company secretary or major shareholder of that member".

(4) In section 7AD(3)(c) of the Principal Act—

(a) in sub-paragraph (ii)—

(i)

after "applicant" (where secondly is not a listed company, each company secretary and major shareholder (if any) of the applicant";

(ii) omit "or member";

(b) in sub-paragraph (iv) after "member" (where thirdly occurring) insert "and, if that member is not a listed company, each company secretary and major shareholder (if any) of that member".

State Taxation (Omnibus Amendment) Act 1996

s. 9 Act No. 10/1996

(5) In section 7AE of the Principal Act—

(a) before "Subject to" insert "(1)";

(b)	after "Subject to" insert "sub-section (2) and";
(c)	in paragraph (e) after "holder" (where secondly occurring) insert "or, if the licence holder is not a listed company, a company secretary or major shareholder of the licence holder";
(d)	in paragraph (h) after "holder" (where secondly occurring) insert "or, if the licence holder is not a listed company, a company secretary or major shareholder of the licence holder".

(6) At the end of section 7AE of the Principal Act

insert—

"(2) The Commissioner may refuse an application

under section 7AD if he or she is satisfied
that an associate of the applicant held, or was
an associate of a person (other than the
applicant) who held, a wholesale tobacco
merchant's licence or group wholesale
tobacco merchant's licence under this Act at
any time in the year preceding the month for
which the licence is sought.".

9. Sales to and purchases from unlicensed persons In section 7B(1) of the Principal Act for "50 penalty units" substitute "100 penalty units".

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 10

10. New section 9AA inserted

After section 9 of the Principal Act insert—

"9AA. Display of retail licences

The holder of a retail tobacconist's licence
must display the licence or a copy of the
licence in a conspicuous place on the
licensed premises.

Penalty: 10 penalty units.".

11. Licences revocable at will

In section 9(3) of the Principal Act—

(a) in paragraph (a) after "made" insert— "unless, within the period of 5 years immediately preceding the date of the revocation, the licence holder—

(i)  has been convicted of an offence against this Act; or

(ii)  has had any licence issued under this Act (other than a licence issued under section 9(2)) revoked—

in which case the revocation takes effect at
the time it is notified to the licence holder

under paragraph (b)";

(b) in paragraph (b) after "made" insert "or, if the revocation takes effect on notification, until the day the revocation takes effect,".

12. New section 9BA inserted

After section 9B of the Principal Act insert—

"9BA. Suspension of retail licences

(1) If the Commissioner reasonably believes at

any time that the holder of a retail
tobacconist's licence (other than a licence

State Taxation (Omnibus Amendment) Act 1996

s. 13 Act No. 10/1996

issued under section 9(2)) has contravened
this Act, the Commissioner may suspend the
licence by giving written notice to the

licence holder.

(2) A suspension under sub-section (1) is

effective from the time the notice is received

by the licence holder.

(3) Notice of suspension must—

(a)	set out the reasons for the suspension; and
(b)	require the licence holder, within 14 days, to show cause why the licence should not be revoked.".

13. Effect of suspension

In section 9C of the Principal Act after "section

9B" insert "or 9BA".

14. New section 9E inserted

After section 9D of the Principal Act insert—
"9E. Revocation of retail licences

After the end of the period specified in section 9BA(3)(b), and having taken into account any written or oral submissions made by or on behalf of the licence holder, the Commissioner, by written notice to the licence holder, may revoke the licence if—

(a)	the Commissioner is satisfied that the licence holder has contravened this Act; and
(b)	the Commissioner considers that, had he or she known of the contravention at the time of determining the licence application, he or she would not have issued the licence.".

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 15

15. Transportation records

In section 13C(4) of the Principal Act for "10 penalty units" substitute "100 penalty units".

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State Taxation (Omnibus Amendment) Act 1996

s. 16 Act No. 10/1996

PART 3—DEBITS TAX ACT 1990

No. 78/1990.

Reprinted to	16. Exemptions
No. 119/1994.	In section 3(1) of the Debits Tax Act 1990 in paragraph (a) of the definition of "excluded debit"—

(a) for sub-paragraph (vii) substitute—

"(vii) a charitable institution, being a debit

made in relation to a transaction or
transactions carried out by or on behalf
of the institution wholly and
exclusively in furtherance of its
objects;";

(b) institution, hospital, university, college or

in sub-paragraph (viii) for "a specified substitute "a charitable institution".

17. Repeal of section 9

Section 9 of the Debits Tax Act 1990 is repealed.

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State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 18

PART 4—FINANCIAL INSTITUTIONS DUTY ACT 1982

No. 9850.

18. Statute law revision Reprinted to No. 119/1994

In the Financial Institutions Duty Act 1982—	and subsequently
(a) in section 17(2)(e), for "procedings"	amended by
substitute "proceedings";	Nos 30/1995
and 101/1995.
(b)	in sections 88(4)(a), 88(4)(b) and 89(4), for "21" substitute "21st".

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State Taxation (Omnibus Amendment) Act 1996

s. 19 Act No. 10/1996

PART 5—LAND TAX ACT 1958

No. 6289.

Reprinted to	19. Lands exempted from land tax
No. 119/1994
and	In section 9(1)(d) of the Land Tax Act 1958,
subsequently	after "used" insert "by a charitable institution".
amended by Nos 100/1995 and 101/1995.

20. Second Schedule

In the Second Schedule to the Land Tax Act 1958, in clause 1B(2)(a), for "the unimproved value of that land for the purposes of determining

the clause 1 amount is the amount determined in
accordance with clause 1A" substitute "the
unimproved value of that land for the purposes of
determining the clause 1 amount in respect of a
year is deemed to be the same as the unimproved
value of that land used to determine an amount in
accordance with clause 1A in respect of that

year.".

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State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 21

PART 6—PAY-ROLL TAX ACT 1971

No. 8154.

21. Miscellaneous amendments Reprinted to No. 119/1994

In the Pay-roll Tax Act 1971—	and subsequently
(a) in section 9A(1) omit "9 or";	amended by No. 101/1995.
(b) section 9C is repealed; (c) Part VC is repealed.

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State Taxation (Omnibus Amendment) Act 1996

s. 22 Act No. 10/1996

PART 7—STAMPS ACT 1958

22. Refurbished lots

In section 63B(1) of the Stamps Act 1958 after "lot" (where thirdly occurring) insert "carried out on or after the date on which the contract of sale of that lot was entered into and before the date of the conveyance of that lot to the transferee,".

No. 6375.

Reprinted to	23. First home buyers' exemption
No. 60/1995
and	(1) In section 71A of the Stamps Act 1958—
subsequently
amended by	(a) in sub-section (3B)(c) for "$65 000"
Nos 101/1995
and 104/1995.	substitute "$100 000";

(b) in sub-section (4)(b) for "$55 000" substitute "$70 000";

(c) in sub-section (5)—

(i) in paragraph (b)—
(A) for "$55 000" substitute

"$70 000";

(B) for "$65 000" substitute

"$100 000";

(ii)  for the formula substitute— "148 (100 000 - P)

3000";

(d) in sub-section (6)(b) for "$55 000" substitute "$70 000".

(2) For section 71A(7) of the Stamps Act 1958

substitute—

"(7) Where, in relation to an instrument of

conveyance of real property on which at the
time the conveyance was made there was not
a dwelling but on which at the date of the

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 23

application to the Comptroller of Stamps

under this section there is a dwelling—

(a)	the transferee is an eligible person for the purposes of this section; and
(b)	the aggregate of the value of the real property at the time the conveyance was made and the cost of the
construction of the dwelling exceeds $70 000 but does not exceed $100 000—

the transferee may make application in
writing to the Comptroller of Stamps for an
amount, by way of refund of or exemption
from stamp duty paid or payable on the
conveyance, calculated in accordance with
the formula—

SD x 37(100 000 - P)

5(3P-25 000)

where—

(c)	SD is the amount of stamp duty paid or payable (but for this sub-section) on the instrument of conveyance;
(d)	P is the amount that is the aggregate of the value of the real property at the time the conveyance was made and the cost of the construction of the dwelling.".

(3) In section 71B of the Stamps Act 1958—

(a) in sub-section (3)—

(i) in paragraph (d)—
(A) for "$33 000" substitute

"$39 000";

State Taxation (Omnibus Amendment) Act 1996

s. 24 Act No. 10/1996

(B) for "$34 000" substitute

"$40 000";

(ii)  in paragraph (g) for "$111 000" substitute "$150 000";

(b) in sub-section (5)—

(i)  in paragraph (b) for "$111 000" substitute "$150 000";

(ii)  for the formula substitute— "6600 - 22P

500";

(c) in sub-section (6)—

(i)  in paragraph (d) for "$111 000" substitute "$150 000";

(ii)  for the formula substitute— "SD x 11(150 000 - P)

5(3P - 190 000)";

(d) in sub-section (8)—

(i)  in paragraph (b) for "$111 000" substitute "$150 000";

(ii)  for the formula substitute— "SD x 11(150 000 - P)

5(3P - 190 000)".

24.  Deductions for conveyances in a distribution on winding up

(1) In section 72(2) of the Stamps Act 1958 after

"company" (where thirdly occurring) insert "by a

court".

(2) After section 72(2) of the Stamps Act 1958

insert—

"(3) Before a conveyance of real property is

made to a shareholder of a company in the

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 24

course of a distribution of assets of the
company in consequence of the voluntary
winding up of the company, the shareholder
may apply in writing to the Comptroller for a
deduction in the value of the real property
for the purposes of the assessment of stamp
duty (if any) payable on the conveyance.

(4) The Comptroller may grant an application under sub-section (3) only if satisfied that the company is not being wound up as part

of an arrangement or scheme devised with
the collateral purpose of reducing the stamp
duty otherwise payable on the conveyance of

the real property.

(5) In considering whether or not he or she is

satisfied for the purpose of sub-section (4),

the Comptroller may have regard to—

(a)	the duration of the shareholder's shareholding in the company;
(b)	whether or not the shareholder held shares in a related corporation of the company that owned the real property

before it was owned by the company;

(c)	the period for which the real property has been owned by the company or a related corporation of the company;
(d)	any dealing in shares of the company or a related corporation of the company—

(i)  by the shareholder or a related corporation of the shareholder;

(ii)  by a previous owner of the real property;

(e) whether there is any commercial efficacy to an arrangement or scheme

State Taxation (Omnibus Amendment) Act 1996

s. 24

Act No. 10/1996

of transactions involving any one or
more of—

(i) the company;
(ii) the shareholder;

(iii)	a related corporation of the company or the shareholder;
(iv)	a substantial shareholder (within the meaning of Part 6.7 of the Corporations Law) of a person referred to in sub-paragraph (i), (ii) or (iii)—

in relation to the winding up, other than
to reduce the stamp duty otherwise
payable on the conveyance;

(f) any other matters he or she considers relevant.

(6) If the Comptroller grants an application under sub-section (3), he or she must, in assessing the stamp duty (if any) payable on

the conveyance, deduct from the value of the

real property—

(a) the company—the value of the
shareholder's entitlement in the

if the shareholder is not a creditor of immediately before the conveyance; or

(b) if the shareholder is a creditor of the company—the amount (if any) by which the value of the shareholder's entitlement in the undistributed assets of the company immediately before the conveyance exceeds the amount owed by the company to the shareholder as a creditor.".

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 25

25. New section 137MC inserted

After section 137MBA of the Stamps Act 1958 insert—

'137MC. Exemption for re-financed business loan

(1) This section applies to a mortgage entered

into between a person and a financial
institution as security for a loan relating to
the carrying on (whether by the person or
any other person) of a profession, trade or

business if—

(a)	the arrangements for the making of the loan include the discharge of a mortgage between the person and another financial institution securing a loan (in this section called "the prior loan") made by that other financial institution (whether to the person or any other person) relating to the carrying on of a profession, trade or business; and
(b)	duty under Heading XXII in the Third Schedule has been paid in respect of the mortgage securing the prior loan and it has been duly stamped.

(2) A person who enters into or proposes to

enter into a mortgage to which this section from, or refund of, an amount of the stamp duty paid or payable in respect of the mortgage calculated in accordance with this section.

applies may apply in writing to the

(3) An application by a person under sub-section

(2) must be accompanied by a statement in the prescribed form signed on behalf of the

State Taxation (Omnibus Amendment) Act 1996

s. 25 Act No. 10/1996

financial institution with which the mortgage

is or is to be entered into stating—

(a)	that the mortgage is a security for a loan relating to the carrying on of a profession, trade or business; and
(b)

that the loan constitutes a refinancing, by another financial institution and secured by another mortgage; and

(c)	that the other mortgage is discharged on the entering into of the new mortgage; and
(d)

the amount of principal of the other the earlier mortgage is discharged.

(4) The amount of stamp duty in respect of

which a person is entitled to an exemption or
refund under this section is the difference
between the stamp duty paid or payable in
respect of the mortgage and the amount of
stamp duty that would have been paid or
payable if the loan secured by the mortgage
had been reduced by the amount of the
principal outstanding on the prior loan
immediately before the mortgage was
entered into.

(5) If an application is made under this section and the Comptroller of Stamps is satisfied that the applicant is entitled to an exemption

from, or refund of, stamp duty, the make the refund accordingly.

(6) A person must not, in connection with an

application under this section, make a

State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 25

statement that, to the person's knowledge, is
false or misleading in a material particular.

Penalty: 10 penalty units or imprisonment

for 6 months or both.

(7) If a person is convicted of an offence against

sub-section (6), the person is liable, by way
of further penalty, to pay an amount equal to
double the amount of duty that, but for the
offence, would have been payable.

(8) For the purposes of this section, if a loan is

partly for the purposes of a profession, trade
or business and partly for other purposes, a
reference in this section to a loan secured by
a mortgage is a reference to that part of the
loan which is for the purposes of the
profession, trade or business.

(9) In this section—

"financial institution" means—

(a)	a bank as defined in section 5 of the Banking Act 1959 of the Commonwealth; or
(b)	within the meaning of the

a building society or credit union Code; or

(c) a person whose sole or principal business activities in Victoria are the borrowing of money and the

provision of finance; or

(d) a prescribed body corporate—

(i)

each of the members and members of the controlling

State Taxation (Omnibus Amendment) Act 1996

s. 26 Act No. 10/1996

body of which are legal

practitioners; and

(ii) the business activities of
which include the provision
of financial accommodation.

(10) This section applies in respect of a mortgage entered into on or after 1 April 1996.'.

26. Cattle stamp duty

In Part XVII of the Third Schedule to the Stamps

Act 1958—

(a)	in clause (2) for "sixty cents ($0.60)" substitute "an amount which is the stamp duty calculated in accordance with clause (1) with respect to the maximum amount of compensation for cattle fixed under section 74(2) of the Livestock Disease Control Act 1994 and not the purchase money";
(b)	in clause (3), in the definition of "calf", for "2 months" substitute "6 weeks".

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State Taxation (Omnibus Amendment) Act 1996

Act No. 10/1996 s. 27

PART 8—VALUATION OF LAND ACT 1960

No. 6653.

27. Improvement Reprinted to No. 96/1994

(1) In section 2(1) of the Valuation of Land Act and

1960, in the definition of "improvements", for	subsequently amended by
"but does not include" substitute "but, except as	Nos 43/1995
provided in sub-section (2AA), does not include".	and 105/1995.

(2) After section 2(2) of the Valuation of Land Act 1960 insert—

"(2AA) Works relating to a port, being buildings,

breakwaters, berths, wharfs, aprons, canals
or associated works are improvements within

the meaning of this Act.".

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State Taxation (Omnibus Amendment) Act 1996

Notes Act No. 10/1996

NOTES

†

Minister's second reading speech—

Legislative Assembly: 16 May 1996

Legislative Council: 18 June 1996

The long title for the Bill for this Act was "to make miscellaneous
amendments to the Business Franchise (Tobacco) Act 1974, the Debits
Tax Act 1990, the Financial Institutions Duty Act 1982, the Land Tax
Act 1958, the Pay-roll Tax Act 1971, the Stamps Act 1958 and the
Valuation of Land Act 1960 and for other purposes."