Untitled document

State Taxation Acts Amendment Act 2010

No. 36 of 2010

table of provisions

Section  Page

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Duties Act 2000

Division 1—On-line duty payment system

3Definition of on-line duty payment system

4Lodging written instrument or statement with Commissioner

5Interim payment of duty

6Statute law revision

7Stamping of instruments

8New section 255A inserted

255AAuthentication of payment of duty using on-line duty payment system

Division 2—Dutiable value threshold for motor vehicle duty

9What is the rate of duty?

Division 3—Eligible pensioner exemptions or concessions affected
by change to first home bonus and regional bonus

10Election to receive eligible pensioner exemption/concession
or additional first home owner grant

Part 3—First Home Owner Grant Act 2000

11Amendments to amount of grant

Part 4—Land Tax Act 2005

12Land tax exemption

78AExemption of land under construction for certain
exempt uses

Part 5—PAyroll Tax Act 2007

13Reduction in payroll tax rate

Part 6—Taxation Administration Act 1997

14Prohibition on certain disclosures of information by tax
officers

Part 7—Repeal of Redundant Acts and Consequential Amendments

Division 1—Repeal of redundant Acts

15Financial Institutions Duty Act 1982 repealed

16Debits Tax Act 1990 repealed

17Business Franchise (Tobacco) Act 1974 repealed

Division 2—Consequential amendments

18Amendment of the Credit Act 1984

19Amendment of the Taxation Administration Act 1997

20Amendment of the Taxation (Interest on Overpayments) Act 1986

21Amendment of the Victorian Civil and Administrative Tribunal Act 1998

Part 8—Repeal of Amending Act

22Repeal of amending Act

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Endnotes

State Taxation Acts Amendment Act 2010

No. 36 of 2010

[Assented to 15 June 2010]

The Parliament of Victoria enacts:

Part 1—Preliminary

1Purposes

The purposes of this Act are—

(a)to amend the Duties Act 2000—

(i)to provide for the payment of duty in respect of dutiable transactions using an on-line duty payment system; and

(ii)to amend the dutiable value threshold for motor vehicle duty; and

(iii)to make other amendments consequential on amendments to the First Home Owner Grant Act 2000; and

(b)to amend the First Home Owner Grant Act 2000 in relation to the first home bonus and the regional bonus; and

(c)to amend the Land Tax Act 2005 in relation to exemptions relating to the construction of residential care facilities, supported residential services, residential services and retirement villages; and

(d)to amend the Payroll Tax Act 2007 to reduce the payroll tax rate; and

(e)to amend the Taxation Administration Act 1997 to remove the power to authorise by regulation recipients of information obtained under or in relation to the administration of a taxation law; and

(f)to repeal—

(i)the Business Franchise (Tobacco) Act 1974; and

(ii)the Debits Tax Act 1990; and

(iii)the Financial Institutions Duty Act 1982—

and make consequential amendments to other Acts.

2Commencement

(1)This Part, Division 1 of Part 2 and Parts 6, 7 and 8 come into operation on the day after the day on which this Act receives the Royal Assent.

(2)Divisions 2 and 3 of Part 2, and Parts 3 and 5 come into operation on 1 July 2010.

(3)Part 4 comes into operation on 1 January 2011.

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Part 2—Duties Act 2000

Division 1—On-line duty payment system

3Definition of on-line duty payment system

In section 3(1) of the Duties Act 2000 insert the following definition—

"on-line duty payment system means a system for the electronic payment of duty authorised by the Commissioner under a taxation law;".

4Lodging written instrument or statement with Commissioner

After section 15(2) of the Duties Act 2000 insert—

"(3)A written instrument that effects a dutiable transaction or a written statement made in compliance with section 14 is taken to be lodged with the Commissioner if—

(a)the on-line duty payment system is used in respect of the dutiable transaction effected or evidenced by the instrument or written statement; and

(b)it is determined that—

(i)duty is payable on the dutiable transaction and the duty is paid in full; or

(ii)no duty is payable on the dutiable transaction.".

5Interim payment of duty

After section 30(7) of the Duties Act 2000 insert—

"(8)This section does not apply in respect of a dutiable transaction if duty is paid using the on-line duty payment system.".

6Statute law revision

Section 47(1)(d) of the Duties Act 2000 is repealed.

7Stamping of instruments

At the end of section 255 of the Duties Act 2000 insert—

"(2)Subsection (1) does not apply to an instrument if authentication of the payment of duty is provided in a manner approved by the Commissioner under section 255A.".

8New section 255A inserted

After section 255 of the Duties Act 2000 insert—

"255A   Authentication of payment of duty using on-line duty payment system

(1)The Commissioner may authenticate in any manner approved by the Commissioner that the on-line duty payment system has been used in respect of a dutiable transaction and—

(a)the duty payable on the dutiable transaction has been paid in full; or

(b)no duty has been determined to be payable on the dutiable transaction.

(2)If the Commissioner authenticates under subsection (1) that duty has been paid or that no duty has been determined to be payable, the instrument that effects or evidences the dutiable transaction is taken to be duly stamped for the purposes of this Act.".

Division 2—Dutiable value threshold for motor vehicle duty

9What is the rate of duty?

(1)In section 218(1) of the Duties Act 2000 for "$57 009" (wherever occurring) substitute

"the luxury car tax threshold".

(2)After section 218(4) of the Duties Act 2000 insert—

"(5)In this section luxury car tax threshold has the same meaning as it has in section 25-1 of the A New Tax System (Luxury Car Tax) Act 1999 of the Commonwealth as if section 25-1(4) of that Act did not apply.".

Division 3—Eligible pensioner exemptions or concessions affected by change to first home bonus and regional bonus

10Election to receive eligible pensioner exemption/concession or additional first home owner grant

In section 60A of the Duties Act 2000—

(a)in subsection (1)(b)—

(i)in subparagraph (ii) for "both)." substitute "both); or";

(ii)after subparagraph (ii) insert—

"(iii)section 18(2AB) or 18(2C) of that Act (or both).";

(b)in subsection (2)(b)—

(i)in subparagraph (ii) for "requires)." substitute "requires); or";

(ii)after subparagraph (ii) insert—

"(iii)section 18(2AB) or 18(2C) of that Act (or both, as the case requires).";

(c)in subsection (3)(b) for "requires)—" substitute "requires); or";

(d)after subsection (3)(b) insert—

"(c)section 18(2AB) or 18(2C) (or both, as the case requires)—".

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Part 3—First Home Owner Grant Act 2000

11Amendments to amount of grant

(1)In sections 18(2AA) and 18(2B) of the First Home Owner Grant Act 2000 for "(4)" substitute "(4A)".

(2)After section 18(2AA) of the First Home Owner Grant Act 2000 insert—

"(2AB)Subject to subsections (3) and (4B) , if the consideration for the eligible transaction does not exceed $600 000 an additional amount of $13 000 is payable if—

(a)the commencement date of the eligible transaction is on or after 1 July 2010 and before 1 July 2011; and

(b)the eligible transaction is a contract for the purchase of a new residential premises or an eligible transaction referred to in section 13(1)(b) or 13(1)(c).".

(3)After section 18(2B) of the First Home Owner Grant Act 2000 insert—

"(2C)Subject to subsections (3) and (4B), an additional amount of $6500 is payable (in addition to any amount payable under subsection (1) or (2AB)) if—

(a)the consideration for the eligible transaction does not exceed $600 000; and

(b)the commencement date of the eligible transaction is on or after 1 July 2010 and before 1 July 2011; and

(c)the eligible transaction is a contract for the purchase of new residential premises or an eligible transaction referred to in section 13(1)(b) or 13(1)(c); and

(d)the land on which the premises or home is or will be situated is wholly in regional Victoria.".

(4)In section 18(3) of the First Home Owner Grant Act 2000 for "(2A) or (2B)" substitute "(2AB), (2A), (2B) or (2C)".

(5)After section 18(4A) of the First Home Owner Grant Act 2000 insert—

"(4B)Subsection (2AB) or (2C) also does not apply if the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made before 1 July 2010 (the earlier contract), and the earlier contract was—

(a)a contract for the purchase of the same home; or

(b)a comprehensive home building contract to build the same or a substantially similar home.".

(6)In section 18(5) and (6) of the First Home Owner Grant Act 2000 for "(2AA), (2A) or (2B)" substitute "(2AA), (2AB), (2A), (2B) or (2C)".

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Part 4—Land Tax Act 2005

12Land tax exemption

After section 78 of the Land Tax Act 2005 insert—

"78A   Exemption of land under construction for certain exempt uses

(1)Land is exempt land if the Commissioner is satisfied that any of the following is being constructed on that land—

(a)a residential care facility; or

(b)a supported residential service; or

(c)a residential service; or

(d)a retirement village.

(2)An exemption under this section will apply in respect of the land until the earlier of—

(a)the date of completion of construction of the residential care facility, supported residential service, residential service or retirement village on the land; or

(b)the expiry of 2 tax years following the date of commencement of construction.

(3)For the purposes of this section, the date of commencement of construction is—

(a)if a building permit for the construction of a residential care facility, supported residential service, residential service or retirement village on the land was issued on or before 31 December 2010 and construction is not completed at that date—31 December 2010; or

(b)in any other case—the date of issue of the building permit for the construction of the residential care facility, supported residential service, residential service or retirement village on the land.

(4)For the purposes of this section, the date of completion of construction is—

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

(b)in any other case—the date of issue of the certificate of final inspection under that Act.

(5)If a building permit for the construction of a residential care facility, supported residential service, residential service or retirement village lapses before the applicable date under subsection (2) and a subsequent building permit is issued in respect of that construction, the date of issue of the building permit referred to in subsection (3) is the date of issue of the first building permit.

(6)To obtain an exemption from land tax under this section, the owner of the land must—

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

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

(7)If the Commissioner is satisfied that only a part of land is being used for the construction of a residential care facility, supported residential service, residential service or retirement village—

(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, to the land.

(8)In this section—

residential care facility has the same meaning as in section 76;

residential service has the same meaning as in section 76A;

retirement village has the same meaning as in section 78;

supported residential service has the same meaning as in section 76.".

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Part 5—Payroll Tax Act 2007

13Reduction in payroll tax rate

(1)In clause 1 of Schedule 1 to the Payroll Tax Act 2007 in the definition of R—

(a)in paragraph (b), for "in any subsequent year" substitute "2009";

(b)after paragraph (b) insert—

"(c)for the financial year commencing on 1 July 2010 or 1 July in any subsequent year—4·90%;".

(2)In clause 2 of Schedule 2 to the Payroll Tax Act 2007—

(a)in paragraph (b), for "—4·95%." substitute "and before 1 July 2010—4·95%;";

(b)after paragraph (b) insert—

"(c)for wages paid or payable on or after 1 July 2010—4·90%.".

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Part 6—Taxation Administration Act 1997

14Prohibition on certain disclosures of information by tax officers

(1)In section 92(1)(e)(vi) of the Taxation Administration Act 1997, for "Authority; or" substitute "Authority.".

(2)Section 92(1)(e)(vii) of the Taxation Administration Act 1997 is repealed.

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Part 7—Repeal of Redundant Acts and Consequential Amendments

Division 1—Repeal of redundant Acts

15Financial Institutions Duty Act 1982 repealed

The Financial Institutions Duty Act 1982 is repealed.

16Debits Tax Act 1990 repealed

The Debits Tax Act 1990 is repealed.

17Business Franchise (Tobacco) Act 1974 repealed

The Business Franchise (Tobacco) Act 1974 is repealed.

Division 2—Consequential amendments

18Amendment of the Credit Act 1984

Section 166 of the Credit Act 1984 is repealed.

19Amendment of the Taxation Administration Act 1997

(1)Section 4(b) and (c) of the Taxation Administration Act 1997 are repealed.

(2)Section 96(1)(b) and (c) of the Taxation Administration Act 1997 are repealed.

(3)Section 96(3) and (4) of the Taxation Administration Act 1997 are repealed.

20Amendment of the Taxation (Interest on Overpayments) Act 1986

(1)In section 3(1) of the Taxation (Interest on Overpayments) Act 1986, for the definition of objection substitute—

"objection means an objection under section 24A of the Land Tax Act 1958;".

(2)In section 5(2) of the Taxation (Interest on Overpayments) Act 1986, for paragraph (a) of the definition of relevant Act substitute—

"(a)the Business Franchise (Petroleum Products) Act 1979;".

(3)In section 5(2) of the Taxation (Interest on Overpayments) Act 1986, paragraph (a) of the definition of secrecy provisions is repealed.

21Amendment of the Victorian Civil and Administrative Tribunal Act 1998

(1)In clause 2 of Part 1 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998, for paragraph (a) of the definition of taxing Act substitute—

"(a)Business Franchise (Petroleum Products) Act 1979;".

(2)In clause 2 of Part 1 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998, paragraphs (b) and (c) of the definition of taxing Act are repealed.

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Part 8—Repeal of Amending Act

22Repeal of amending Act

This Act is repealed on 1 January 2012.

Note

The repeal of this Act does not affect the continuing operation of the amendments or repeals 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: 6 May 2010

Legislative Council: 27 May 2010

The long title for the Bill for this Act was "A Bill for an Act to amend the Duties Act 2000, the First Home Owner GrantAct 2000, the Land Tax Act 2005, the Payroll Tax Act 2007 and the Taxation Administration Act 1997 and to repeal the Business Franchise (Tobacco) Act 1974, the Debits Tax Act 1990 and the Financial Institutions Duty Act 1982 and for other purposes."