Untitled document
State Taxation Acts Further Amendment Act 2011
No. 69 of 2011
table of provisions
Section Page
Part 1—Preliminary
1Purposes
2Commencement
Part 2—Payroll Tax Act 2007
3Non-profit organisations
4Maternity and adoption leave
Part 3—Duties Act 2000
Division 1—Reduction in time available for payment of duty
Subdivision 1—Transactions concerning dutiable property
5Necessity for written instrument or written statement
6Lodging instrument or statement with Commissioner
7When must duty be paid—transactions concerning dutiable property
8Interdependent sale of land and business goods
9Liability for duty if residence requirement not complied with
10Liability for duty if primary production requirement not
complied with11Anti-avoidance provision—transactions concerning dutiable property
Subdivision 2—Certain transactions treated as transfers
12Acquisition statements
13When must duty be paid—land rich duty
14Re-purchase facilities—widely held trusts
15Disqualifying circumstances for certain unit trust schemes
16Sale of private unit trust scheme through conversion to public unit trust scheme
17Anti-avoidance provision—land rich duty
18When must duty be paid—capital reductions or rights
alterations19When must duty be paid—allotment of shares by direction
20Acquisition of shares by allotment
21When must duty be paid—acquisition of land use entitlements
by allotment of shares or issue of units22Acquisition of land use entitlement
Subdivision 3—Financial sector (transfers of business)
23Statement of transfer of property
Subdivision 4—Corporate reconstructions
24Interest
Division 2—Miscellaneous amendments
25Change in trustees
26Eligible pensioner exemption or concession where dwelling exists at the time of transfer
Part 4—Land Tax Act 2005
Division 1—Time-sharing schemes
27Definitions
28New section 18A inserted
18AManagers of title-based time-sharing schemes
29New section 46AA inserted
46AATitle-based time-sharing schemes
Division 2—Primary production land
30Definitions
31Definitions—primary production land
32Exemption of primary production land in an urban zone in Greater Melbourne
33Parcels of land
Division 3—Valuations
34Definitions
35Taxable value of land
36Use of valuations
Part 5—Taxation Administration Act 1997
37Definitions
38Meaning of taxation laws
39Objection
40Grounds for objection
41Referral to Tribunal
Part 6—Livestock Disease Control Act 1994
42Cattle Compensation Fund
43Sheep and Goat Compensation Fund
44Swine Compensation Fund
45Amendment of heading to Part 6
46New section 107D inserted
107DDisclosure of information to Commissioner of State Revenue in relation to the administration of duty
47Statute law revision
Part 7—Valuation of Land Act 1960
48Definitions
49Functions of valuer-general
50Use of valuation by another rating authority other than a
council51Council to provide valuation to valuer-general
52Fees for copy of valuation
53New section 11 substituted
11General valuation to be made every two years
54Council valuations
55Valuation authority to make supplementary valuation on
behalf of council56Section 13DI repealed
57Notice of valuation
58Who may object?
59Time for lodging objection
60Determination of objection
Part 8—Repeal
61Repeal of amending Act
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EndnoteS
State Taxation Acts Further Amendment Act 2011
No. 69 of 2011
[Assented to 29 November 2011]
The Parliament of Victoria enacts:
Part 1—Preliminary
1Purposes
The purposes of this Act are—
(a)to amend the Payroll Tax Act 2007 in relation to the exemptions for non-profit organisations and for maternity leave or adoption leave; and
(b)to amend the Duties Act 2000—
(i)to reduce the period of time available for the payment of duty after the liability arises from 3 months to 30 days; and
(ii)to rectify an anomaly in the application of the exemption and concessions available to eligible pensioners purchasing off the plan properties and to remove an outdated reference to the Income Tax Assessment Act 1936 of the Commonwealth; and
(c)to amend the Land Tax Act 2005—
(i)in relation to time-sharing schemes where the time-sharers are registered proprietors so that the manager of the scheme is assessed for land tax and the time-sharers owe a debt for their share of the tax; and
(ii)in relation to the primary production land exemption, to change the ownership requirements to increase consistency and improve the operation of the exemption; and
(iii)to make miscellaneous amendments in relation to the use of valuations for the assessment of land tax; and
(d)to amend the Taxation Administration Act 1997—
(i)to empower the Commissioner of State Revenue to impose interest and penalty tax in relation to livestock duty and to apply the administration and enforcement provisions to the collection of livestock duty; and
(ii)to clarify the objection processes in relation to the valuation of land under that Act; and
(e)to amend the Livestock Disease Control Act 1994—
(i)to allow the Secretary to disclose certain information in relation to the administration of livestock duty to the Commissioner of State Revenue; and
(ii)to ensure any interest and penalty tax collected by the Commissioner of State Revenue in relation to livestock duty is paid into the appropriate compensation funds; and
(f)to make miscellaneous amendments to the Valuation of Land 1960 to improve the operation of that Act.
2Commencement
(1)This Act (other than Part 2 and Division 1 of Part 3) comes into operation on the day after the day on which it receives the Royal Assent.
(2)Part 2 comes into operation on 1 July 2012.
(3)Division 1 of Part 3 comes into operation on 1 April 2012.
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Part 2—Payroll Tax Act 2007
3Non-profit organisations
(1)For section 48(1) and (2) of the Payroll Tax Act 2007 substitute—
"(1)Wages are exempt wages if the Commissioner is satisfied that the wages are paid or payable—
(a)by any of the following—
(i)a religious institution; or
(ii)a public benevolent institution (but not including an instrumentality of the State); or
(iii)a non-profit organisation having as its whole or dominant purpose a charitable, benevolent, philanthropic or patriotic purpose (but not including a school, an educational institution, an educational company or an instrumentality of the State); and
(b)to a person engaged exclusively in work of a religious, charitable, benevolent, philanthropic or patriotic nature for the institution or non-profit organisation.".
(2)In section 48(3) of the Payroll Tax Act 2007 for "subsection (1)(c)" substitute "subsection (1)(a)(iii)".
4Maternity and adoption leave
For section 53(4) of the Payroll Tax Act 2007 substitute—
"(4)In subsection (3)—
(a)a reference to 14 weeks maternity leave or 14 weeks adoption leave includes a reference to an equivalent period of leave at a reduced rate of pay; and
(b)a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave.
Example
For a part-time employee, the exemption may apply to wages paid or payable for maternity leave or adoption leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.".
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Part 3—Duties Act 2000
Division 1—Reduction in time available for payment of duty
Subdivision 1—Transactions concerning dutiable property
5Necessity for written instrument or written statement
(1)In section 14(2) of the Duties Act 2000, for "3 months" substitute "30 days".
(2)In section 14(3) of the Duties Act 2000, for "3 months" (where twice occurring) substitute "30 days".
6Lodging instrument or statement with Commissioner
In section 15(1) of the Duties Act 2000, for "3 months" substitute "30 days".
7When must duty be paid—transactions concerning dutiable property
In section 16 of the Duties Act 2000, for "3 months" substitute "30 days".
8Interdependent sale of land and business goods
In section 22B(4) of the Duties Act 2000, for "3 months" substitute "30 days".
9Liability for duty if residence requirement not complied with
In the note at the foot of section 57M(2) of the Duties Act 2000, for "3 months" substitute "30 days".
10Liability for duty if primary production requirement not complied with
In the note at the foot of section 69AH(2) of the Duties Act 2000, for "3 months" substitute "30 days".
11Anti-avoidance provision—transactions concerning dutiable property
In section 69C(2) of the Duties Act 2000, for "3 months" substitute "30 days".
Subdivision 2—Certain transactions treated as transfers
12Acquisition statements
In section 80(1) of the Duties Act 2000, for "3 months" substitute "30 days".
13When must duty be paid—land rich duty
In section 81 of the Duties Act 2000, for "3 months" substitute "30 days".
14Re-purchase facilities—widely held trusts
In section 89A(3)(c) of the Duties Act 2000, for "3 months" substitute "30 days".
15Disqualifying circumstances for certain unit trust schemes
In section 89B(2)(e) of the Duties Act 2000, for "3 months" substitute "30 days".
16Sale of private unit trust scheme through conversion to public unit trust scheme
In section 89C(2)(d) of the Duties Act 2000, for "3 months" substitute "30 days".
17Anti-avoidance provision—land rich duty
In section 89I(4) of the Duties Act 2000, for "3 months" substitute "30 days".
18When must duty be paid—capital reductions or rights alterations
In section 92 of the Duties Act 2000, for "3 months" substitute "30 days".
19When must duty be paid—allotment of shares by direction
In section 99 of the Duties Act 2000, for "3 months" substitute "30 days".
20Acquisition of shares by allotment
In section 101(2) of the Duties Act 2000, for "3 months" substitute "30 days".
21When must duty be paid—acquisition of land use entitlements by allotment of shares or issue of units
In section 103B of the Duties Act 2000, for "3 months" substitute "30 days".
22Acquisition of land use entitlement
In section 103D(2) of the Duties Act 2000, for "3 months" substitute "30 days".
Subdivision 3—Financial sector (transfers of business)
23Statement of transfer of property
In section 107(3) of the Duties Act 2000, for "3 months" substitute "30 days".
Subdivision 4—Corporate reconstructions
24Interest
In section 250L(3) of the Duties Act 2000, in the definition of relevant day, for "3 months" substitute "30 days".
Division 2—Miscellaneous amendments
25Change in trustees
In section 33(1) of the Duties Act 2000, in paragraph (c) of the definition of special trustee, omit "within the meaning of section 267 of the Income Tax Assessment Act 1936 of the Commonwealth".
26Eligible pensioner exemption or concession where dwelling exists at the time of transfer
(1)After section 59(1)(a) of the Duties Act 2000 insert—
"(ab)the dwelling was constructed before the time the contract of sale was entered into; and".
(2)After section 59(2)(a) of the Duties Act 2000 insert—
"(ab)the dwelling was constructed before the time the contract of sale was entered into; and".
(3)In section 59(3) of the Duties Act 2000, for "The concession" substitute "If subsection (2) applies, the concession".
(4)After section 59(3) of the Duties Act 2000 insert—
"(4)An eligible pensioner is entitled to an exemption from duty under this Chapter in respect of a transfer to the eligible pensioner of dutiable property being an estate in fee simple in land if—
(a)at the time of the transfer there is a dwelling on the land; and
(b)the dwelling was constructed after the time the contract of sale was entered into; and
(c)the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling does not exceed $330 000.
(5)An eligible pensioner is entitled to a concession from duty under this Chapter in respect of a transfer of dutiable property being an estate in fee simple in land if—
(a)at the time of the transfer there is a dwelling on the land; and
(b)the dwelling was constructed after the time the contract of sale was entered into; and
(c)the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $330 000 but does not exceed $750 000.
(6)If subsection (5) applies, the concession is an amount calculated in accordance with the formula—
(a)where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $330 000 but does not exceed $440 000—
where—
"D" is the amount of duty paid or payable (but for this Division) on the transfer;
"P" is the aggregate amount referred to in subsection (5); or
(b)where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $440 000 but does not exceed $550 000—
where—
"D" is the amount of duty paid or payable (but for this Division) on the transfer;
"P" is the aggregate amount referred to in subsection (5); or
(c)where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $550 000 but does not exceed $750 000—
where—
"D" is the amount of duty paid or payable (but for this Division) on the transfer;
"P" is the aggregate amount referred to in subsection (5).".
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Part 4—Land Tax Act 2005
Division 1—Time-sharing schemes
27Definitions
In section 3(1) of the Land Tax Act 2005 insert the following definition—
"title-based time-sharing scheme means a scheme under which participants are—
(a)entitled to use, occupy and possess land to which the scheme relates for 2 or more periods during the scheme's operation; and
(b)the registered proprietors of a share interest in respect of which a folio is created under section 98D of the Transfer of Land Act 1958;".
28New section 18A inserted
After section 18 of the Land Tax Act 2005 insert—
18AManagers of title-based time-sharing schemes"
For the purposes of this Act, a person who manages a title-based time-sharing scheme is deemed to be the owner of the land to which that scheme relates instead of the participants under that scheme.".
29New section 46AA inserted
After section 46 of the Land Tax Act 2005 insert—
46AATitle-based time-sharing schemes"
(1)The owner of land to which a title-based time-sharing scheme relates is to be assessed on the total value of all taxable land to which the scheme relates as if the land were the only land owned by that person.
(2)A participant in a title-based time-sharing scheme incurs a debt in an amount equivalent to the proportion of the participant's interest in the land to the person who—
(a)is the owner of the land to which the title-based time-sharing scheme relates; and
(b)has been assessed for land tax under subsection (1).".
Division 2—Primary production land
30Definitions
In section 3(1) of the Land Tax Act 2005, in the definition of beneficiary, after "means" insert "(except in Division 2 of Part 4)".
31Definitions—primary production land
(1)In section 64(1) of the Land Tax Act 2005, insert the following definitions—
"discretionary trust means a trust under which the distribution or vesting of the whole or any part of the trust income or property—
(a)is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or
(b)will occur in the event that a discretion conferred under the trust is not exercised;
specified beneficiary of a discretionary trust means a person specifically named in the trust deed or specifically declared in writing pursuant to the trust deed as a beneficiary whom, by the terms of the trust, the whole or any part of the trust income or property may be distributed to or vested in—
(a)in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or
(b)in the event that a discretion conferred under the trust is not exercised;".
(2)In section 64(1) of the Land Tax Act 2005, in the definition of urban zone, after "means a zone" insert ", or part of a zone,".
32Exemption of primary production land in an urban zone in Greater Melbourne
(1)In section 67(2) of the Land Tax Act 2005—
(a)in paragraph (b), after "proprietary company" insert "(not acting in the capacity of trustee of a trust)";
(b)in paragraph (c)—
(i)after "trustee of a trust" insert "(other than a discretionary trust)";
(ii)in subparagraph (i), for "sole" substitute "principal";
(iii)in subparagraph (iii), for "land." substitute "land; or";
(c)after paragraph (c) insert—
"(d)a trustee of a discretionary trust of which—
(i)the principal business must be primary production of the type carried on on the land; and
(ii)either—
(A)each specified beneficiary is a natural person; or
(B)at least one of the specified beneficiaries is a natural person and each of the specified beneficiaries who is not a natural person is either—
(a)a charitable institution or a trustee of a charitable trust; or
(b)a company all of the shares in which are owned by one or more of the specified beneficiaries who are natural persons; or
(c)a trustee of a trust (except a charitable trust), all of the beneficiaries or specified beneficiaries of which are specified beneficiaries of the discretionary trust who are natural persons; and
(iii)either—
(A)at least one of the specified beneficiaries is a natural person who is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land; or
(B)a relative of at least one of the specified beneficiaries is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land.".
(2)In section 67(4)(a) of the Land Tax Act 2005, after "primary production" insert "of the type carried on".
33Parcels of land
For section 70(b) of the Land Tax Act 2005 substitute—
"(b)the owner of the parcel of land is the owner of the land within the meaning of section 67(2).".
Division 3—Valuations
34Definitions
(1)In section 3(1) of the Land Tax Act 2005 insert the following definition—
"valuation authority has the same meaning as in section 2(1) of the Valuation of Land Act 1960;".
(2)In section 3(1) of the Land Tax Act 2005, in the definition of return date, omit "(within the meaning of that Act)".
35Taxable value of land
In section 19(2)(a) of the Land Tax Act 2005, for "municipal council" substitute "valuation authority".
36Use of valuations
In section 21(1) of the Land Tax Act 2005—
(a)in paragraph (a), for "rating" substitute "valuation";
(b)in paragraph (b), after "valuations made" insert "for and on behalf of the Commissioner".
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Part 5—Taxation Administration Act 1997
37Definitions
(1)In section 3(1) of the Taxation Administration Act 1997, in paragraph (f) of the definition of trustee, for "capacity." substitute "capacity;".
(2)In section 3(1) of the Taxation Administration Act 1997 insert the following definition—
"valuation authority has the same meaning as in section 2(1) of the Valuation of Land Act 1960.".
38Meaning of taxation laws
At the end of section 4 of the Taxation Administration Act 1997 insert—
"(2)Part 6 of the Livestock Disease Control Act 1994 and any regulations made under that Act for the purposes of that Part is a taxation law for the purposes of this Act in respect of the application of Chapter 10 of the Duties Act 2000 and any regulations made under that Act for the purposes of that Chapter.".
39Objection
In section 96(1)(ca) of the Taxation Administration Act 1997, after "a valuation" insert "made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005".
40Grounds for objection
For section 97(3) of the Taxation Administration Act 1997 substitute—
"(3)A taxpayer cannot object to an assessment of land tax on any ground relating to the value of the land if—
(a)the assessment is based on a valuation made by a valuation authority under the Valuation of Land Act 1960; and
(b)that valuation was not made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005.".
41Referral to Tribunal
In section 111(3) of the Taxation Administration Act 1997, for "a valuation by the Valuer-General used by the Commissioner" substitute "a valuation made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005 used by the Commissioner".
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Part 6—Livestock Disease Control Act 1994
42Cattle Compensation Fund
After section 71(2)(a) of the Livestock Disease Control Act 1994 insert—
"(ab)all money received by or for the Commissioner of State Revenue as interest or penalty tax in respect of the whole or part of duty on statements and approved agents' returns relating to the sale of cattle or calves or the carcases of cattle under the Duties Act 2000;".
43Sheep and Goat Compensation Fund
After section 79A(2)(a) of the Livestock Disease Control Act 1994 insert—
"(ab)all money received by or for the Commissioner of State Revenue as interest or penalty tax in respect of the whole or part of duty on statements and approved agents' returns relating to the sale of sheep or goats or the carcases of sheep or goats under the Duties Act 2000;".
44Swine Compensation Fund
After section 80(2)(a) of the Livestock Disease Control Act 1994 insert—
"(ab)all money received by or for the Commissioner of State Revenue as interest or penalty tax in respect of the whole or part of duty on statements and approved agents' returns relating to the sale of pigs or the carcases of pigs under the Duties Act 2000;".
45Amendment of heading to Part 6
In the heading to Part 6 of the Livestock DiseaseControl Act 1994 omit "STAMP".
46New section 107D inserted
After section 107C of the Livestock Disease Control Act 1994 insert—
107DDisclosure of information to Commissioner of State Revenue in relation to the administration of duty"
The Secretary may disclose information obtained under or in relation to the administration of Part 6 or Chapter 10 of the Duties Act 2000 to the Commissioner of State Revenue in connection with the administration or execution of—
(a)Part 6 and the regulations made under this Act for the purposes of that Part; and
(b)the Duties Act 2000 and the regulations made under it.".
47Statute law revision
(1)In section 7B of the Livestock Disease Control Act 1994, for "livestock—" substitute "livestock is—".
(2)In section 7B(a) of the Livestock Disease Control Act 1994 omit "is".
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Part 7—Valuation of Land Act 1960
48Definitions
In section 2(1) of the Valuation of Land Act 1960 insert the following definition—
"return, in relation to a general valuation or supplementary valuation, means the act of the valuer giving to the valuation authority a general valuation or a supplementary valuation which has been signed and dated;".
49Functions of valuer-general
For section 5(1)(ab) of the Valuation of Land Act 1960 substitute—
"(ab)to cause general valuations and supplementary valuations to be made when so nominated by councils;".
50Use of valuation by another rating authority other than a council
(1)In the heading to section 7AG of the Valuation of Land Act 1960 after "authority" insert "other than a council".
(2)In section 7AG(1) of the Valuation of Land Act 1960, after "rating authority" insert ", other than a council,".
(3)In section 7AG(3) of the Valuation of Land Act 1960—
(a)in paragraph (a), for "made" substitute "declared as true and correct under section 7AF";
(b)for paragraph (b) substitute—
"(b)the declaration of the valuation as true and correct under section 7AF (if the declaration of the valuation as true and correct has not been made at the time of the request).".
51Council to provide valuation to valuer-general
In section 7B(1) of the Valuation of Land Act 1960, for "making of the valuation" substitute "date on which the valuation was returned to the council".
52Fees for copy of valuation
(1)In section 8AA(1) of the Valuation of Land Act 1960, after "rating authority" insert ", other than a council,".
(2)After section 8AA(1) of the Valuation of Land Act 1960 insert—
"(1A)A council that has been provided with a valuation by the valuer-general under section 11 must pay the valuer-general—
(a)on receipt of the valuation, a fee for the valuation; and
(b)after that, fees in respect of the servicing of the valuation.
(1B)A council that has requested a supplementary valuation under section 13DFB must pay the valuer-general—
(a)on receipt of the valuation, a fee for the valuation; and
(b)after that, fees in respect of the servicing of the valuation.".
(3)In section 8AA(2) of the Valuation of Land Act 1960, for "under subsection (1)" substitute "under this section".
53New section 11 substituted
For section 11 of the Valuation of Land Act 1960 substitute—
11General valuation to be made every two years"
For the purposes of the Local Government Act 1989, a valuation authority must—
(a)cause a general valuation of rateable land within the relevant municipal district to be made as at 1 January in every even calendar year; and
(b)before 30 June that year, cause a general valuation made in accordance with paragraph (a)—
(i)to be returned to it; and
(ii)if the valuation authority for the relevant municipal district is the valuer-general—to be provided to the council of that municipal district.".
54Council valuations
(1)In section 13DA(1) of the Valuation of Land Act 1960, for "council" substitute "valuation authority".
(2)In section 13DA(2) of the Valuation of Land Act 1960, for "council" substitute "valuation authority".
(3)In section 13DA(3)(a) of the Valuation of Land Act 1960, for "the council" (where first occurring) substitute "a council, as valuation authority,".
55Valuation authority to make supplementary valuation on behalf of council
In section 13DFB(1) of the Valuation of Land Act 1960, for "carry out a supplementary valuation under section 13DF" substitute "cause a supplementary valuation under section 13DF to be made".
56Section 13DI repealed
Section 13DI of the Valuation of Land Act 1960 is repealed.
57Notice of valuation
(1)In section 15(1) of the Valuation of Land Act 1960, for "makes a general valuation or causes a general valuation to be made" substitute "causes a general or supplementary valuation to be made".
(2)In section 15(2) of the Valuation of Land Act 1960 omit "makes a general or supplementary valuation or".
58Who may object?
(1)In section 16(6) of the Valuation of Land Act 1960, for "made the valuation or caused it to be made" substitute "caused the valuation to be made".
(2)In section 16(6B) of the Valuation of Land Act 1960, for "made the valuation or caused it to be made" substitute "caused the valuation to be made".
59Time for lodging objection
For section 18(b) of the Valuation of Land Act 1960 substitute—
"(b)in the case of a person referred to in section 16(5)—
(i)if a notice of assessment of the rate or tax was served on the person by a rating authority, within 2 months after the notice was served; or
(ii)if a notice of assessment of the rate or tax was not served on the person by a rating authority and the person is the occupier of the land, within 4 months after the date of issue specified on the notice; or".
60Determination of objection
In section 21(2) of the Valuation of Land Act 1960 omit "made the valuation or".
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Part 8—Repeal
61Repeal of amending Act
This Act is repealed on 1 July 2013.
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
Minister's second reading speech—
Legislative Assembly: 26 October 2011
Legislative Council: 10 November 2011
The long title for the Bill for this Act was "A Bill for an Act to amend the Payroll Tax Act 2007, the Duties Act 2000, the Land Tax Act 2005, the Taxation Administration Act 1997, the Livestock Disease Control Act 1994 and the Valuation of Land Act 1960 and for other purposes."
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