Untitled document
State Taxation Acts Amendment Act 2008
No. 31 of 2008
table of provisions
Section Page
Part 1—Preliminary
1Purpose
2Commencement
Part 2—Duties Act 2000
3What is the consideration for the transfer of dutiable property?
4New sections 21A to 21E inserted
21ACommissioner may publish percentage
21BRecords to be kept
21CPeriod of retention
21DPower to require documents
21EJoint and several liability for additional duty
5Increase in thresholds for general rate of duty
6Provisions for determining consideration
7Property passing to unitholders in unit trust schemes
36BProperty passing to unitholders in unit trust schemes
8New section 38A inserted
38ASpecial disability trusts
9Increase in principal place of residence concession
10Increase in eligible pensioner concession
11Consequential amendments to first home owner concession
12New Division 1B inserted in Part 2 of Chapter 11
Division 1B—Exchange of stapled ownership interests for ownership interests in a unit trust scheme
250DHDefinitions
250DIExemption for relevant acquisitions
250DJConditions of exemption
250DKRevocation of exemption
13Tax assessment, penalty and interest regarding roll‑overs
14New clause 27 of Schedule 2 inserted
27State Taxation Acts Amendment Act 2008
Part 3—First Home Owner Grant Act 2000
15Additional grant for newly constructed homes in regional Victoria
16New Schedule 1 inserted
SCHEDULE 1—Municipal Councils in Regional Victoria
Part 4—Land Tax Act 2005
17Special land tax
18New section 76A inserted
76AResidential services for people with disabilities
19Increase in thresholds and reduction in top tax rate
Part 5—Payroll Tax Act 2007
20Exemption for non-profit organisations
21Groups of corporations
22New section 74 substituted
74Smaller groups subsumed by larger groups
23Registration
24Leap years
25Reduction in payroll tax rate
26New clause 15 inserted in Schedule 3
15State Taxation Acts Amendment Act 2008
27Statute law revision
Part 6—Repeal of Amending Act
28Repeal of Act
═══════════════
Endnotes
State Taxation Acts Amendment Act 2008
No. 31 of 2008
[Assented to 17 June 2008]
The Parliament of Victoria enacts:
Part 1—Preliminary
1Purpose
The purpose of this Act is—
(a)to amend the Duties Act 2000—
(i)to increase thresholds for general duty and for principal place of residence and pensioner concessions;
(ii)to remove the election between the principal place of residence concession and the first home owner bonus;
(iii)to introduce further duty exemptions;
(iv)to provide greater certainty in relation to the calculation of duty for properties that are sold off the plan;
(v)to clarify that certain transactions concerning dutiable property subject to unit trust schemes are exempt from duty where there is no change in beneficial ownership of property;
(b)to amend the First Home Owner Grant Act 2000 to give an additional grant to first homebuyers purchasing a newly constructed home in regional Victoria;
(c)to amend the Land Tax Act 2005—
(i)to increase thresholds and reduce the top land tax rate;
(ii)to introduce a further land tax exemption;
(d)to amend the Payroll Tax Act 2007 to reduce the rate of payroll tax, clarify certain provisions and ensure continued consistency with New South Wales.
2Commencement
(1)This Act, other than Part 3 and sections 5, 8, 9, 10, 11, 12, 13, 17(2), 20, 21, 22 and 23, comes into operation on the day after the day on which it receives the Royal Assent.
(2)Part 3 and sections 5, 8, 9, 10 and 11 are deemed to have come into operation on 6 May 2008.
(3)Sections 12, 13, 20, 21, 22 and 23 come into operation on 1 July 2008.
(4)Section 17(2) comes into operation on 1 January 2009.
__________________
Part 2—Duties Act 2000
3What is the consideration for the transfer of dutiable property?
(1)In section 21(4) of the Duties Act 2000—
(a)omit "exclusively";
(b)in paragraph (c), for "above; and" substitute "above.";
(c)paragraph (d) is repealed.
(2)After section 21(4) of the Duties Act 2000 insert—
"(4A)Subsection (3) or (4) does not apply unless the transfer, when presented to or lodged with the Commissioner, is accompanied by—
(a)a copy of the building permit, or building approval or permit; and
(b)a copy of the contract with the transferee for the construction or refurbishment; and
(c)a statutory declaration in the approved form by the transferor as to any prescribed matters and as to whether or not the transferor has entered into any agreement with the transferee in respect of works (other than construction or refurbishment) to be undertaken in relation to the land or the lot before the transfer; and
(d)if the Commissioner requires, a statutory declaration in the approved form by the transferee declaring that the transferee has not entered any contract, other than the contract referred to in paragraph (b), for the construction of the building or refurbishment of the lot; and
(e)if the Commissioner requires, a statutory declaration in the approved form by the person that issued the building permit or building approval or permit.".
4New sections 21A to 21E inserted
After section 21 of the Duties Act 2000 insert—
"21A Commissioner may publish percentage
(1)For the purposes of sections 21(3) and 21(4), the Commissioner may from time to time publish percentage amounts being a percentage of the consideration for a transfer of dutiable property that represents any amount paid or payable in respect of construction of a building or refurbishment of a lot on or after the date on which the contract of sale was entered into.
(2)The Commissioner may publish different percentage amounts for different classes of buildings or refurbishments.
(3)If the Commissioner publishes a percentage under subsection (1)—
(a)the transferor may use that percentage for the purposes of determining the amount paid or payable in respect of construction of the building or refurbishment of the lot; and
(b)if the transferor does so, duty payable on the transfer is to be assessed on that basis.
21BRecords to be kept
If a transferor of dutiable property makes a statutory declaration under section 21(4A), the transferor must keep, or cause to be kept, all records that are necessary to enable the duty payable on that transfer to be assessed.
Penalty:500 penalty units in the case of a body corporate;
100 penalty units in any other case.
21CPeriod of retention
(1)A transferor who is required to keep a record under section 21B must retain the record for not less than 5 years after—
(a)the date it was made or obtained; or
(b)the date on which the dutiable transaction occurred—
whichever is the later.
Penalty:500 penalty units in the case of a body corporate;
100 penalty units in any other case.
(2)Subsection (1) does not apply to a transferor if the Commissioner authorises them in writing to destroy the record before the end of the 5-year period.
21DPower to require documents
(1)The Commissioner, by written notice, may require a person to produce to the Commissioner a document that is required to be kept under section 21B.
(2)The person to whom a notice is given under subsection (1) must comply with the notice within the period specified in the notice or any extended period allowed by the Commissioner.
Penalty:200 penalty units in the case of a body corporate;
40 penalty units in any other case.
21EJoint and several liability for additional duty
If a transferor of dutiable property—
(a)makes a statutory declaration under section 21(4A); and
(b)that statutory declaration is incorrect—
the transferor is jointly and severally liable with the transferee for any additional duty payable on the transfer and any penalty or interest.".
5Increase in thresholds for general rate of duty
For the table in section 28(1) of the Duties Act 2000 substitute—
"
Dutiable value of the dutiable property the subject of the dutiable transaction
Rate of dutyNot more than $25 000 1×4% of the dutiable value More than $25 000 but not more than $130 000 $350 plus 2×4% of that part of the dutiable value that exceeds $25 000 More than $130 000 but not more than $960 000 $2870 plus 6% of that part of the dutiable value that exceeds $130 000 More than $960 000 5×5% of the dutiable value
".
6Provisions for determining consideration
(1)In section 32V(4) of the Duties Act 2000—
(a)omit "exclusively"; and
(b)in paragraph (c), for "above; and" substitute "above."; and
(c)paragraph (d) is repealed.
(2)After section 32V(4) of the Duties Act 2000 insert—
"(4A)Subsection (3) or (4) does not apply unless the transfer, when presented to or lodged with the Commissioner, is accompanied by—
(a)a copy of the building permit, or building approval or permit; and
(b)a copy of the contract with the transferee for the construction or refurbishment; and
(c)a statutory declaration in the approved form by the transferor as to any prescribed matters and as to whether or not the transferor has entered into any agreement with the transferee in respect of works (other than construction or refurbishment) to be undertaken in relation to the land or the lot before the transfer; and
(d)if the Commissioner requires, a statutory declaration in the approved form by the transferee declaring that the transferee has not entered any contract, other than the contract referred to in paragraph (b), for the construction of the building or refurbishment of the lot; and
(e)if the Commissioner requires, a statutory declaration in the approved form by the person that issued the building permit or building approval or permit.
(4B)Sections 21A to 21E apply to a statutory declaration made under subsection (4A) as if a reference in those sections to subsections (3), (4) and (4A) of section 21 were a reference to subsections (3), (4) and (4A) of this section.".
7Property passing to unitholders in unit trust schemes
For section 36B of the Duties Act 2000 substitute—
"36B Property passing to unitholders in unit trust schemes
(1)No duty is chargeable under this Chapter in respect of a transfer of dutiable property that is subject to a unit trust scheme (the principal scheme) to a unitholder in the scheme if—
(a)the duty (if any) charged by this Act in respect of the dutiable transaction that resulted in the dutiable property becoming subject to the principal scheme has been paid or the Commissioner is satisfied that the duty will be paid; and
(b)the unitholder was a unitholder at the relevant time; and
(c)the transfer is in accordance with subsection (2); and
(d)the dutiable value of the property transferred as a proportion of the net assets of the principal scheme does not exceed the value of that proportion of the net assets of the principal scheme represented by the unitholding of the unitholder in the principal scheme at the relevant time; and
(e)as a result of the transfer, the value of the unitholder's unitholding in the principal scheme is reduced by the same amount as the dutiable value of the property transferred; and
(f)the Commissioner is satisfied that any duty charged as a result of the occurrence of a dutiable transaction referred to in section 7(1)(b)(vi) in relation to the property has been paid; and
(g)the Commissioner is satisfied that the transfer is not part of a sale or other arrangement under which there exists any consideration for the transfer.
(2)The transfer must be—
(a)to the unitholder absolutely, if the unitholder is—
(i)a natural person; or
(ii)a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time; or
(b)to the unitholder as trustee of a fixed trust all the beneficiaries of which are—
(i)natural persons who were beneficiaries of that fixed trust at the relevant time; or
(ii)a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time—
being natural persons or a corporation that do not hold their interests in the fixed trust as trustee of another trust; or
(c)to the unitholder as trustee of a discretionary trust of which all the beneficiaries are—
(i)natural persons who were relevant beneficiaries of that discretionary trust at the relevant time or who became beneficiaries after the relevant time by reason of—
(A)becoming a spouse or domestic partner of a beneficiary within a class of beneficiary described in the discretionary trust; or
(B)becoming an adopted child or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the discretionary trust; or
(C)being an adopted child, step child or lineal descendant of a person referred to in sub-subparagraph (A); or
(ii)a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time—
being natural persons or a corporation that do not hold their rights, entitlements or interests in the discretionary trust as trustee of another trust; or
(d)to the unitholder as trustee of another unit trust scheme of which all the unitholders are—
(i)natural persons who were unitholders of that other unit trust scheme at the relevant time; or
(ii)a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time—
being natural persons or a corporation that do not hold their units in that other unit trust scheme as trustee of another trust; or
(e)to the unitholder as trustee of a superannuation fund all the beneficiaries of which were beneficiaries at the relevant time.
(3)If a unitholder would be entitled to an exemption from duty under subsection (1) but for subsection (1)(d), the unitholder is entitled to a concession from duty in respect of that proportion of the dutiable value of the dutiable property that does not exceed that proportion of the net assets of the scheme represented by the unitholding of the unitholder in the principal scheme at the relevant time.
(4)A reference in this section to dutiable property becoming or first becoming subject to a unit trust scheme includes a reference to property from which that dutiable property was derived, by subdivision or consolidation of titles, becoming or first becoming subject to the scheme at a time when the unitholder was a unitholder in the principal scheme.
(5)In this section—
relevant beneficiary of a discretionary trust means a natural person who—
(a)was a beneficiary of that trust at the relevant time; or
(b)became a beneficiary of that trust after the relevant time by reason of—
(i)becoming a spouse or domestic partner of a beneficiary within a class of beneficiary described in the discretionary trust; or
(ii)becoming an adopted child or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the discretionary trust; or
(iii)being an adopted child, step child or lineal descendant of a person referred to in subparagraph (i);
relevant time in relation to dutiable property that is subject to the principal scheme, means the time at which the property first became subject to the principal scheme;
superannuation fund has the same meaning as in section 41A.".
8New section 38A inserted
After section 38 of the Principal Act insert—
"38A Special disability trusts
(1)No duty is chargeable under this Chapter in respect of—
(a)a declaration of trust that establishes a special disability trust; or
(b)a transfer of dutiable property to the trustee of a special disability trust—
in the circumstances set out in subsections (2), (3) and (4).
(2)The person declaring the trust, or the transferor of the dutiable property (as the case requires) must be an immediate family member of the principal beneficiary of the special disability trust.
(3)There must be no consideration provided for the declaration or transfer.
(4)The dutiable value of the property that is the subject of the declaration or transfer must not exceed $500 000.
(5)If, but for subsection (4), duty would not be chargeable in respect of a declaration of trust or transfer of dutiable property because of this section, duty is chargeable on the declaration or transfer only in respect of the dutiable value of the property that exceeds $500 000.
(6)In this section—
immediate family member of a principal beneficiary, means an individual—
(a)who is a natural parent, adoptive parent or step-parent of the principal beneficiary; or
(b)who is, or was when the principal beneficiary was under 18 years of age, a legal guardian of the principal beneficiary; or
(c)who is a grandparent of the principal beneficiary; or
(d)who is a sibling of the principal beneficiary;
principal beneficiary—
(a)has the meaning given in section 1209M(1) of the Social Security Act, in the case of a special disability trust within the meaning of section 1209L of that Act;
(b)has the meaning given in section 52ZZZWA(1) of the Veterans' Entitlements Act, in the case of a special disability trust within the meaning of section 52ZZZW of that Act;
Social Security Act means the Social Security Act 1991 of the Commonwealth;
special disability trust means—
(a)a special disability trust within the meaning of section 1209L of the Social Security Act; or
(b)a special disability trust within the meaning of section 52ZZZW of the Veterans' Entitlements Act;
Veterans' Entitlements Act means the Veterans' Entitlements Act 1986 of the Commonwealth.".
9Increase in principal place of residence concession
(1)In section 57I(1)(d) of the Duties Act 2000, for "$115 000 but not more than $500 000" substitute "$130 000 but not more than $550 000".
(2)For the table in section 57J of the Duties Act 2000 substitute—
"
Dutiable value of the dutiable property
Rate of dutyMore than $130 000 but not more than $440 000 $2870 plus 5% of that part of the dutiable value that exceeds $130 000 More than $440 000 but not more than $550 000 $18 370 plus 6% of that part of the dutiable value that exceeds $440 000
".
(3)Section 57O of the Duties Act 2000 is repealed.
10Increase in eligible pensioner concession
(1)In the Duties Act 2000—
(a)in section 59(1)(b) for "$300 000" substitute "$330 000";
(b)in section 59(2)(b) for "$300 000 but does not exceed $400 000" substitute "$330 000 but does not exceed $440 000";
(c)in section 59(3), for the formula substitute—
(d)in section 60(1)(c) for "$300 000" substitute "$330 000";
(e)in section 60(2)(c) for "$300 000 but does not exceed $400 000" substitute "$330 000 but does not exceed $440 000";
(f)in section 60(3), for the formula substitute—
(2)In section 60A of the Duties Act 2000—
(a)in subsection (1)—
(i)for "section 18(3)" substitute "section 18(5)";
(ii)in paragraph (b), after "section 18(2)" insert "or (2A) (or both)";
(b)in subsections (2)(b) and (3), after "section 18(2)" insert "or (2A) (or both, as the case requires)".
11Consequential amendments to first home owner concession
(1)In the Duties Act 2000—
(a)in section 62(3), for the formula substitute—
(b)in section 62(4), for the formula substitute—
(c)in section 63(3), for the formula substitute—
(2)In section 63B of the Duties Act 2000—
(a)in subsection (1)(b), after "section 18(2)" insert "or (2A) (or both)";
(b)in subsections (2)(b) and (3), after "section 18(2)" insert "or (2A) (or both, as the case requires)".
12New Division 1B inserted in Part 2 of Chapter 11
After Division 1A of Part 2 of Chapter 11 insert—
"Division 1B—Exchange of stapled ownership interests for ownership interests in a unit trust scheme
250DHDefinitions
In this Division—
exchanging members has the same meaning as in section 124-1045(1)(d) of the ITAA;
interposed trust means a unit trust scheme that is interposed between the exchanging members and the stapled entities in the course of, or as a result of, a roll-over;
ITAA means the Income Tax Assessment Act 1997 of the Commonwealth;
listed, in relation to the shares or units in a stapled entity, means listed for quotation on the Australian Stock Exchange or a recognised stock exchange;
ownership interest has the same meaning as in section 125-60 of the ITAA;
public float means a share float or an offer of units to create a public unit trust scheme—
(a)the shares or units of which are quoted on the Australian Stock Exchange or a recognised stock exchange and are offered to the public generally; and
(b)of which the issue of the shares or units to the public does not give any person and their related persons (other than the corporate entity that floated the shares or units) a combined beneficial interest in the floated entity greater than 20%; and
(c)that is not part of a scheme for the purpose of minimising duty otherwise payable under this Act;
roll-over means a roll-over that occurs on or after 1 July 2008 in the circumstances set out in section 124-1045 of the ITAA;
stapled entity has the same meaning as in section 124-1045(2) of the ITAA.
250DIExemption for relevant acquisitions
(1)An exchanging member who makes a relevant acquisition to which section 80 applies in the course of, or as a result of, a roll-over may apply to the Commissioner for an exemption under this Division.
(2)The Commissioner must grant an exemption from duty under this Act on the relevant acquisition if the Commissioner is satisfied that—
(a)the relevant acquisition was made in the course of, or as a result of, a roll-over; and
(b)the shares or units in the stapled entities to which the roll-over related were listed at the time the relevant acquisition was made or are intended to be listed within the period of 3 years commencing on the day on which the relevant acquisition was made; and
(c)the relevant acquisition did not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of this section; and
(d)the conditions of the exemption, if any, will be met by the applicant.
(3)If duty under this Act has been paid on the relevant acquisition, the Commissioner must refund any duty paid that, by reason of the exemption, is not payable.
250DJConditions of exemption
(1)An exemption granted under this Division is subject to any conditions specified by the Commissioner.
(2)If an exemption is granted under this Division, the conditions of the exemption are binding on each exchanging member.
250DKRevocation of exemption
(1)The Commissioner may revoke an exemption granted under this Division if—
(a)the interposed trust does not retain all its ownership interests in the stapled entities for a period of at least 3 years commencing on the day on which the relevant acquisition was made; or
(b)the relevant acquisition was not made in the course of, or as a result of, a roll‑over; or
(c)the exemption was granted based on false or misleading information in a material particular provided to the Commissioner by an exchanging member or the trustee of the interposed trust; or
(d)the relevant acquisition arose from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of section 250DI.
(2)Subsection (1)(a) does not apply if the Commissioner is satisfied that the interposed trust does not retain its ownership interests in the stapled entities by virtue of—
(a)a public float of any of the stapled entities that occurred within 12 months after the day on which the relevant acquisition was made; or
(b)the shares or units of any of the stapled entities being unstapled to enable the winding up of that entity; or
(c)the winding up of any of the stapled entities.".
13Tax assessment, penalty and interest regarding roll‑overs
(1)In section 250F of the Duties Act 2000, for "this Part" substitute "Division 1 or 1A".
(2)At the end of section 250F of the Duties Act 2000 insert—
"(2)If an exemption under Division 1B is revoked, each entity that was an exchanging member when the exemption was granted is jointly and severally liable for payment of—
(a)the duty payable; and
(b)any penalty or interest under this Division.".
(3)In section 250G of the Duties Act 2000, for "this Part" substitute "Division 1 or 1A".
(4)At the end of section 250G of the Duties Act 2000 insert—
"(2)If an exemption under Division 1B is revoked—
(a)liability for duty in relation to the relevant acquisition arises when the relevant acquisition was made; and
(b)the duty is payable on or before the day specified by the Commissioner in the notice of reassessment.".
(5)For section 250I(1) of the Duties Act 2000 substitute—
"(1)If an exemption under this Part was granted based on false or misleading information in a material particular provided to the Commissioner by—
(a)the corporate group, consolidated group or consolidatable group in the case of an exemption under Division 1 or 1A; or
(b)an exchanging member or the trustee of the interposed trust in the case of an exemption under Division 1B—
the taxpayer is liable to pay a penalty in addition to the amount of duty unpaid.".
(6)For section 250J(1) of the Duties Act 2000 substitute—
"(1)If—
(a)a change in circumstance occurs that results in the Commissioner revoking an exemption under this Part; and
(b)there is a failure to notify the Commissioner of that change, in the form of a statutory declaration, within 28 days after the change occurred, by—
(i)a corporate group, consolidated group or consolidatable group in the case of an exemption under Division 1 or 1A; or
(ii)an exchanging member or the trustee of an interposed trust in the case of an exemption under Division 1B—
the taxpayer is liable to pay a penalty in addition to the amount of duty unpaid.".
(7)In section 250L of the Duties Act 2000—
(a)in subsection (1), after "dutiable property" insert "or the relevant acquisition (as the case requires),";
(b)in subsection (3), in the definition of relevant day, after "occurred" insert "or the relevant acquisition was made".
14New clause 27 of Schedule 2 inserted
After clause 26 of Schedule 2 to the Duties Act 2000 insert—
"27 State Taxation Acts Amendment Act 2008
(1)Section 21, as amended by section 3 of the State Taxation Acts Amendment Act 2008, and sections 21A to 21E, as inserted by section 4 of that Act, apply to the transfer of dutiable property if the contract of sale of the land is entered into on or after 1 October 2008.
(2)Section 21, as in force immediately before the commencement of section 3 of the State Taxation Acts Amendment Act 2008, continues to apply to the transfer of dutiable property if the contract of sale of the land is entered into before 1 October 2008.
(3)Subject to subclause (4), section 28(1), as amended by section 5 of the State Taxation Acts Amendment Act 2008, applies to a dutiable transaction occurring on or after 6 May 2008.
(4)The rate of duty chargeable on a transfer of dutiable property on or after 6 May 2008 that is made as a result of an agreement entered into before that day is the rate set out in section 28 as in force immediately before the commencement of section 5 of the State Taxation Acts Amendment Act 2008.
(5)Section 32V, as amended by section 6 of the State Taxation Acts Amendment Act 2008, applies to a relevant transaction (within the meaning of section 32V) if the date of the relevant transaction is on or after 1 October 2008.
(6)Section 32V, as in force immediately before the commencement of section 6 of the State Taxation Acts Amendment Act 2008, continues to apply to a relevant transaction (within the meaning of section 32V) if the date of the relevant transaction is before 1 October 2008.
(7)Section 38A applies to a declaration of trust or transfer of dutiable property that occurs on or after 6 May 2008.
(8)Division 4A of Part 5 of Chapter 2, as amended by section 9 of the State Taxation Acts Amendment Act 2008 applies to a PPR transfer of dutiable property being an estate in fee simple in land if the contract for purchase of the land was entered into on or after 6 May 2008.
(9)Sections 59 and 60, as amended by section 10 of the State Taxation Acts Amendment Act 2008, apply to a transfer to an eligible pensioner of dutiable property being an estate in fee simple in land if the contract for sale of the land was entered into on or after 6 May 2008.
(10)Sections 62 and 63, as amended by section 11 of the State Taxation Acts Amendment Act 2008, apply to a transfer to an eligible first home owner of dutiable property being an estate in fee simple in land if the contract for sale of the land was entered into on or after 6 May 2008.
(11)A taxpayer is entitled to a refund of any duty paid on or after 6 May 2008 that is not payable because of subclause (3), (4), (7), (8), (9) or (10).".
__________________
Part 3—First Home Owner Grant Act 2000
15Additional grant for newly constructed homes in regional Victoria
(1)After section 18(2) of the First Home Owner Grant Act 2000 insert—
"(2A)Subject to subsections (3) and (4), an additional amount of $3000 is payable (in addition to any amount payable under subsection (1) or (2)) if—
(a)the consideration for the eligible transaction does not exceed $500 000; and
(b)the commencement date of the eligible transaction is on or after 6 May 2008 and before 1 July 2009; 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 (c); and
(d)the land on which the premises or home is or will be situated is wholly in regional Victoria.".
(2)In section 18 of the First Home Owner Grant Act 2000—
(a)in subsections (3) and (4), after "Subsection (2)" insert "or (2A)";
(b)in subsections (5) and (6), after "subsection (2)" insert "or (2A)";
(c)subsection (7) is repealed.
(3)In section 18(8) of the First Home Owner Grant Act 2000—
(a)insert the following definition—
"regional Victoria means—
(a)the municipal districts of the municipal councils set out in Schedule 1; and
(b)the alpine resorts within the meaning of the Alpine Resorts Act 1983.";
(b)the definition of PPR transfer is repealed.
16New Schedule 1 inserted
After Part 4 of the First Home Owner Grant Act 2000 insert—
"__________________
SCHEDULE 1
Section 18(8)
Municipal Councils in Regional Victoria
Alpine Shire Council Central Goldfields Shire Council Ararat Rural City Council Colac Otway Shire Council Ballarat City Council Corangamite Shire Council Bass Coast Shire Council East Gippsland Shire Council Baw Baw Shire Council Gannawarra Shire Council Benalla Rural City Council Glenelg Shire Council Buloke Shire Council Golden Plains Shire Council Campaspe Shire Council Greater Bendigo City Council Greater Geelong City Council Murrindindi Shire Council Greater Shepparton City Council Northern Grampians Shire Council Hepburn Shire Council Pyrenees Shire Council Hindmarsh Shire Council Borough of Queenscliffe Horsham Rural City Council South Gippsland Shire Council Indigo Shire Council Southern Grampians Shire Council Latrobe City Council Strathbogie Shire Council Loddon Shire Council Surf Coast Shire Council Macedon Ranges Shire Council Swan Hill Rural City Council Mansfield Shire Council Towong Shire Council Mildura Rural City Council Wangaratta Rural City Council Mitchell Shire Council Warrnambool City Council Moira Shire Council Wellington Shire Council Moorabool Shire Council West Wimmera Shire Council Mount Alexander Shire Council Wodonga City Council Moyne Shire Council Yarriambiack Shire Council".
__________________
Part 4—Land Tax Act 2005
17Special land tax
(1)After section 30(1)(e) of the Land Tax Act 2005 insert—
"(ea)land referred to in section 76A (residential service);".
(2)In section 30(2)(a) of the Land Tax Act 2005, for "$224 999" substitute "$249 999".
18New section 76A inserted
After section 76 of the Land Tax Act 2005 insert—
"76A Residential services for people with disabilities
(1)Land is exempt land if the Commissioner determines that it is occupied, or currently available for occupation, as a residential service within the meaning of the Disability Act 2006.
(2)To obtain an exemption from land tax under this section, the owner of the land must—
(a)apply to the Commissioner for the exemption; and
(b)give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section.
(3)If the Commissioner is satisfied that only a part of land is occupied or currently available for occupation as a residential service—
(a)land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and
(b)section 22 applies, if necessary, for that purpose.".
19Increase in thresholds and reduction in top tax rate
(1)In Part 1 of Schedule 1 to the Land Tax Act 2005—
(a)in the heading to clause 1.3 omit "and subsequent years";
(b)in clause 1.3 omit "and each subsequent year".
(2)In Part 1 of Schedule 1 to the Land Tax Act 2005, after clause 1.3 insert—
"1.4 Land tax for 2009 and subsequent years
The rate of land tax for 2009 and each subsequent year is set out in Table 1.4.
TABLE 1.4
ItemColumn 1
Taxable value not less thanColumn 2
Taxable value less than
Column 3
Rate of land tax$ $ 1 0 250 000 Nil 2 250 000 600 000 $275 and 0×2% of the taxable value that exceeds $250 000 3 600 000 1 000 000 $975 and 0×5% of the taxable value that exceeds $600 000 4 1 000 000 1 800 000 $2975 and 0×8% of the taxable value that exceeds $1 000 000 5 1 800 000 3 000 000 $9375 and 1×3% of the taxable value that exceeds $1 800 000 6 3 000 000 $24 975 and 2×25% of the taxable value that exceeds $3 000 000
".
(3)In Part 2 of Schedule 1 to the Land Tax Act 2005—
(a)in the heading to clause 2.2 omit "and subsequent years";
(b)in clause 2.2 omit "and each subsequent year".
(4)In Part 2 of Schedule 1 to the Land Tax Act 2005, after clause 2.2 insert—
2.3Rate of land tax on transmission easements for 2009 and subsequent years"
The rate of land tax on transmission easements for 2009 and each subsequent year is set out in Table 2.3.
TABLE 2.3
ItemColumn 1
Taxable value not less thanColumn 2
Taxable value less than
Column 3
Rate of land tax$ $ 1 0 250 000 Nil 2 250 000 600 000 $275 and 0×2% of the taxable value that exceeds $250 000 3 600 000 1 000 000 $975 and 0×5% of the taxable value that exceeds $600 000 4 1 000 000 1 800 000 $2975 and 0×8% of the taxable value that exceeds $1 000 000 5 1 800 000 3 000 000 $9375 and 1×3% of the taxable value that exceeds $1 800 000 6 3 000 000 $24 975 and 5% of the taxable value that exceeds $3 000 000
".
(5)In Part 3 of Schedule 1 to the Land Tax Act 2005—
(a)in the heading to clause 3.3 omit "and subsequent years";
(b)in clause 3.3 omit "and each subsequent year".
(6)In Part 3 of Schedule 1 to the Land Tax Act 2005, after clause 3.3 insert—
"3.4 Land tax for trusts for 2009 and subsequent years
The rate of land tax for 2009 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.4.
TABLE 3.4
ItemColumn 1
Taxable value not less thanColumn 2
Taxable value less than
Column 3
Rate of land tax$ $ 1 0 25 000 Nil 2 25 000 250 000 $82 and 0×375% of the taxable value that exceeds $25 000 3 250 000 600 000 $926 and 0×575% of the taxable value that exceeds $250 000 4 600 000 1 000 000 $2938 and 0×875% of the taxable value that exceeds $600 000 5 1 000 000 1 800 000 $6438 and 1×175% of the taxable value that exceeds $1 000 000 6 1 800 000 3 000 000 $15 838 and 0×7614% of the taxable value that exceeds $1 800 000 7 3 000 000 $24 975 and 2×25% of the taxable value that exceeds $3 000 000
".
__________________
Part 5—Payroll Tax Act 2007
20Exemption for non-profit organisations
For section 48(1)(c) of the Payroll Tax Act 2007 substitute—
"(c)a non-profit organisation having as its sole 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).".
21Groups of corporations
In section 70 of the Payroll Tax Act 2007—
(a)subsection (2) is repealed;
(b)the note at the foot of the section is repealed.
22New section 74 substituted
For section 74 of the Payroll Tax Act 2007 substitute—
"74 Smaller groups subsumed by larger groups
(1)If a person is a member of 2 or more groups, the members of all the groups together constitute a group.
(2)If 2 or more members of a group have together a controlling interest in a business (within the meaning of section 72), all the members of the group and the person or persons who carry on the business together constitute a group.
Note
Section 79 (Exclusion of persons from groups) allows the Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.".
23Registration
In section 86(1)(a) of the Payroll Tax Act 2007, for "$9615" substitute "$10 576".
24Leap years
In Schedule 1 to the Payroll Tax Act 2007—
(a)in clause 1 insert the following definition—
"FY is the number of days in the financial year;";
(b)in the formulas in clauses 4, 5, 8 and 9(2), for "365" substitute "FY".
25Reduction in payroll tax rate
In the Payroll Tax Act 2007—
(a)in Schedule 1, in clause 1, in paragraph (b) of the definition of 'R', for "5%" substitute "4×95%";
(b)in Schedule 2, in clause 2(b), for "5%" substitute "4×95%".
26New clause 15 inserted in Schedule 3
After clause 14 in Schedule 3 to the Payroll Tax Act 2007 insert—
"15 State Taxation Acts Amendment Act 2008
Schedule 1, as amended by section 24 of the State Taxation Acts Amendment Act 2008, applies to the financial year commencing on 1 July 2007 and any subsequent financial year.".
27Statute law revision
In Schedule 1 to the Payroll Tax Act 2007, in the headings to clauses 4 and 8, for "under threshold" substitute "not more than threshold".
__________________
Part 6—Repeal of Amending Act
28Repeal of Act
This Act is repealed on 1 January 2010.
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).
═══════════════
Endnotes
Minister's second reading speech—
Legislative Assembly: 7 May 2008
Legislative Council: 29 May 2008
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 Grant Act 2000, the Land Tax Act 2005 and the Payroll Tax Act 2007 and for other purposes."
0
0
0