Untitled document

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—DEBITS TAX ACT 1990 3

3. Definitions and interpretation 3

PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982 5

4.        No exemption for tertiary educational companies controlled by

tertiary educational institutions 5

PART 4—GAMING MACHINE CONTROL ACT 1991 7

5.	Sections 135A, 135B and 135C repealed	7
6.	Additional amount payable by Trustees	7
7.	New section 164 inserted	7

164. Transitional provision: amounts payable by trustees 7

PART 5—PAY-ROLL TAX ACT 1971 8

8.	Liability where employment agent is member of group	8
9.	Reduction in pay-roll tax rate	8
10.	No exemption for educational companies controlled by
educational institutions	8

PART 6—STAMPS ACT 1958 10

11.	Definitions	10
12.	New section 24AA inserted	11
24AA. Comptroller may obtain Valuer-General valuation of

land 12

13.	Valuation of land on objection	12
14.	Marketable securities duty	13
15.	Duty on real property on declaration of trust	15
16.	Conveyances as a result of single transaction	16

i

Section Page

17.	Motor vehicle duty	16
18.	New subdivision (18) of Division 3 of Part 2 inserted	16
(18)—Financial Sector (Transfers of Business)	16

137O.	Statement on transfer of property	16
137P.	Duty not chargeable in respect of certain transfers	18

19. New section 137T inserted 18

137T. Managed investment schemes 18

20. Exemptions 20

PART 7—TATTERSALL CONSULTATIONS ACT 1958 21

21.	Duty payable by promoter	21
22.	Transitional	21

PART 8—TAXATION ADMINISTRATION ACT 1997 22

23. Interest rate in respect of tax defaults 22

PART 9—TAXATION (INTEREST ON OVERPAYMENTS)

ACT 1986 23

24.	Updated reference to Tribunal	23
25.	Interest rate	23

═══════════════

NOTES 25

ii

Victoria

No. 47 of 1999

State Taxation Acts (Amendment) Act

1999†

[Assented to 8 June 1999]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to amend the Debits Tax Act 1990, the Financial Institutions Duty Act 1982, the Gaming Machine Control Act

1991, the Pay-roll Tax Act 1971, the Stamps Act 1958, the Tattersall Consultations Act 1958, the Taxation Administration Act 1997 and the

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 2

Taxation (Interest on Overpayments) Act 1986 and for other purposes.

2. Commencement

(1) This Act (except sections 5, 6, 18, 19, 21, 23 and

25) comes into operation on the day on which it
receives the Royal Assent.

(2) Section 19 is deemed to have come into operation on 1 July 1998.

(3) Sections 5, 6, 21, 23 and 25 come into operation on 1 July 1999.

(4) Section 18 comes into operation on the day on

which section 10 of the Financial Sector Reform

(Victoria) Act 1999 comes into operation.

_______________
State Taxation Acts (Amendment) Act 1999

s. 3 Act No. 47/1999

PART 2—DEBITS TAX ACT 1990

No. 78/1990.	3. Definitions and interpretation
Reprint No. 2
as at 18
March 1999.	(1) In section 3(1) of the Debits Tax Act 1990—

(a) for the definition of "account" substitute— ' "account" means an account, kept with a

financial institution, to which payments by the institution in respect of cheques drawn on the institution by the account holder, or by any one or more of the

account holders, may be debited;';

(b)

for the definition of "account transaction" ' "account transaction", in relation to an

account, means the payment of a
cheque, or the doing of any other thing,
that will result in the making of a debit

to that account;';

(c) the definition of "bank" is repealed;

(d) for the definition of "cheque" substitute— ' "cheque", in relation to an account, means

an order in writing drawn on a financial
institution by or on behalf of the
account holder, or any one or more of
the account holders, requiring the
institution to pay on demand a sum
certain in money to, or to the order of, a
specified person or persons, or to

bearer;';

(e) in paragraph (b)(ii) of the definition of "excluded debit" omit "or payment order" wherever occurring;

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 3

(f)

for the definition of "financial institution" ' "financial institution" means—

(a) institution for the purposes of the

an institution that is a financial Commonwealth; or

(b) any other person who is, or who is in a class of persons that is, prescribed for the purposes of this definition;';

(g)	in the definition of "incomplete" omit "or payment order" wherever occurring;
(h)

the definitions of "non-bank financial repealed.

(2) In section 3(9) of the Debits Tax Act 1990 for

"non-bank financial institution" substitute

"financial institution".

(3) After section 3(9) of the Debits Tax Act 1990

insert—

"(10) A reference in this Act to the carrying on of

banking business includes a reference to a
business carried on by a financial institution
in the course of which the institution keeps
accounts for its customers.".

(4) In section 7 of the Debits Tax Act 1990—

(a)	for "non-bank account" (wherever occurring) substitute "customer's account";
(b)	for "bank" (wherever occurring) substitute "financial institution".

_______________
State Taxation Acts (Amendment) Act 1999

s. 4 Act No. 47/1999

PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982

No. 9850.	4. No exemption for tertiary educational companies
Reprint No. 3
as at	controlled by tertiary educational institutions
22 August
1997. Further	After section 25(12) of the Financial Institutions
amended by
Nos 84/1996,	Duty Act 1982 insert—
43/1997,
86/1997,	'(13) For the purposes of sub-section (12)(d)—
48/1998 and
103/1998.	"tertiary educational institution" includes

a company—

(a)

in which a tertiary educational interest; and

(b) that provides, promotes or
supports the tertiary educational
services of that institution.

(14) A tertiary educational institution has a

controlling interest in a company for the
purposes of sub-section (13) if—

(a)

the members of the board of management (by whatever name called) of the company, or a majority of those members, or one or more of those members, being a member or members who is or are entitled to exercise a majority in voting power at meetings of the board of management, are or is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the tertiary educational institution; or

(b)

the tertiary educational institution may exercise, control the exercise of, or

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999	s. 4
substantially influence the exercise of, 50% or more of the voting power attached to voting shares, or any class of voting shares, issued by the company; or
(c)	the tertiary educational institution has power to appoint 50% or more of the members of the board of management (by whatever name called) of the

company.'.

_______________
State Taxation Acts (Amendment) Act 1999

s. 5 Act No. 47/1999

PART 4—GAMING MACHINE CONTROL ACT 1991

No. 53/1991.	5. Sections 135A, 135B and 135C repealed
Reprint No. 5
as at 30 June
1998. Further	Sections 135A, 135B and 135C of the Gaming
amended by	Machine Control Act 1991 are repealed.
Nos 117/1993, 90/1997, 93/1997, 90/1998 and 94/1998.

6. Additional amount payable by Trustees

After section 136(3) of the Gaming Machine
Control Act 1991 insert—

"(3A) A gaming operator must ensure that, in addition to amounts payable under sub- section (3), there is paid, in respect of such

periods as the Authority determines, to the Authority to be paid into the Consolidated Fund, 7 per centum of the daily net cash
balances during that period of all gaming
machines of the gaming operator at approved

venues.".

7. New section 164 inserted

After section 163 of the Gaming Machine

Control Act 1991 insert—

"164. Transitional provision: amounts payable by

trustees

Part 9, as amended by section 6 of the State
Taxation Acts (Amendment) Act 1999,
applies to a period commencing on or after

1 July 1999.".

_______________
State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 8

PART 5—PAY-ROLL TAX ACT 1971

8. Liability where employment agent is member of group No. 8154.
Reprint No. 6

After section 3E(2) of the Pay-roll Tax Act 1971	as at
22 August
insert—	1997. Further amended by

"(2A) Sub-section (1) does not apply if the client and the employment agent are members of	Nos 80/1997, 86/1997,
48/1998 and

the same group within the meaning of	103/1998.
section 9A.".

9. Reduction in pay-roll tax rate

In section 7(1) of the Pay-roll Tax Act 1971—

(a) in paragraph (g) after "1998" insert "and before the month of July 1999";

(b) after paragraph (g) insert—

"; and

(h)	at the rate of 5·75% in respect of such of those wages as are paid or payable after the month of June 1999 and are not liable to pay-roll tax at the rate
prescribed in paragraph (c), (d), (e), (f) or (g).".

10.  No exemption for educational companies controlled by educational institutions

After section 10(1) of the Pay-roll Tax Act 1971
insert—

'(2) For the purposes of sub-section (1)(bb)—

"educational institution" includes a

company—

(a) in which an educational institution has a controlling interest; and

State Taxation Acts (Amendment) Act 1999

s. 10 Act No. 47/1999

(b) that provides, promotes or
supports the educational services
of that institution.

(3) An educational institution has a controlling

interest in a company for the purposes of
sub-section (2) if—

(a) management (by whatever name called)

the members of the board of members, or one or more of those members, being a member or members who is or are entitled to exercise a majority in voting power at meetings of the board of management, are or is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the educational institution; or

(b)	the educational institution may (whether directly or indirectly) exercise, control the exercise of, or
substantially influence the exercise of, 50% or more of the voting power attached to voting shares, or any class of voting shares, issued by the company; or
(c)	the educational institution has power to appoint 50% or more of the members of the board of management (by whatever name called) of the company.'.

_______________
State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 11

PART 6—STAMPS ACT 1958

11. Definitions No. 6375.
Reprint No. 14

In section 3 of the Stamps Act 1958—	as at 1 September 1997. Further
(a) for the definition of "public unit trust	amended by
scheme" substitute—	Nos 84/1996, 86/1997,
' "public unit trust scheme" means a unit	46/1998, 48/1998,

trust scheme—	52/1998, 83/1998,
(a) any of the units of which are listed for quotation on Australian Stock	85/1998,
97/1998 and

Exchange Limited or on a	103/1998.
recognised stock exchange; or

(b)	that is the subject of a deed that is an approved deed for the purposes of Division 5 of Part 7.12 of the
Corporations Law or a corresponding law, but only if—

(i)  some or all of its units have been offered to the public; and

(ii)  no fewer than 50 persons hold units in it; or

(c) scheme within the meaning of

that is a managed investment Law and in respect of which—

(i)  some or all of its units have been offered to the public; and

(ii)  no fewer than 50 persons hold units in it; or

State Taxation Acts (Amendment) Act 1999

s. 11

s. 12 Act No. 47/1999

(d) requirements of Part 7.12 of the

that is exempted from the of which—

(i)  some or all of its units have been offered to the public; and

(ii)  no fewer than 50 persons hold units in it; or

(e) Comptroller, will be a public unit
trust scheme within 12 months
after the Comptroller gives written
notification of that opinion to a
person who has requested the
Comptroller to express that

that, in the opinion of the scheme;';

(b)

after the definition of "public unit trust ' "recognised stock exchange" means a

stock exchange recognised in
accordance with the Business Rules of

Australian Stock Exchange Limited;';

(c)

after the definition of "the chief office" ' "transfer" of a marketable security

includes a buy-back of shares in
accordance with Division 2 of Part 2J.1

of the Corporations Law;'.

12. New section 24AA inserted

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999

After section 24 of the Stamps Act 1958 insert—

"24AA. Comptroller may obtain Valuer-General

valuation of land

(1) If—

(a)	a transferee of land provides any information to the Comptroller as to the value of the land; and
(b)	the Comptroller considers that the value is understated—

the Comptroller may refer the matter to the

Valuer-General for valuation of the land.

(2) The transferee must pay the cost of a

valuation by the Valuer-General under

sub-section (1) if—

(a)	the Valuer-General's valuation exceeds the value provided by the transferee by 15% or more; and
(b)	the transferee does not object to the assessment of duty based on the valuation or, if the transferee does object, the valuation as determined on objection, appeal or review exceeds the value provided by the transferee by 15% or more.".

13. Valuation of land on objection

In section 33A of the Stamps Act 1958 for
sub-section (4) substitute—

"(4) If an objection concerns the value of any

land, the Comptroller must refer the matter
to the Valuer-General for a valuation of that
land, whether or not a valuation was
obtained from the Valuer-General under
section 24AA(1) in respect of that land.

State Taxation Acts (Amendment) Act 1999

s. 14 Act No. 47/1999

(5) The objector must pay the cost of the

valuation under sub-section (4) if—

(a)	the objector had provided any information to the Comptroller as to the value of the land; and
(b)

the Valuer-General's valuation exceeds 15% or more; and

(c) the valuation as determined on the objection, or on appeal or review, exceeds the value provided by the objector by 15% or more.".

14. Marketable securities duty

(1) After section 59(1A) of the Stamps Act 1958

insert—

"(1B) For the purposes of sub-section (1), if—

(a)	marketable securities or rights in respect of shares are vested in a person as trustee; and
(b)

the beneficial interest in those respect of shares is transferred to that person—

the person is deemed to have disposed of
those marketable securities or rights in

respect of shares.

(1C) For the purposes of sub-section (1), if—

(a)	marketable securities or rights in respect of shares are vested in a person; and
(b)	the person enters into an agreement for the disposal of those marketable

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999	s. 14
securities or rights in respect of shares to another person as trustee; and
(c)	before any instrument of transfer is executed, the first-mentioned person is appointed trustee in place of the other person—

the person is deemed to have disposed of
those marketable securities or rights in

respect of shares.

(1D) For the purposes of sub-section (1), if—

(a)	marketable securities or rights in respect of shares are vested in a person; and
(b)	the marketable securities or rights in respect of shares become subject to a trust for another by reason of a

declaration of trust by that person— the person is deemed to have disposed of those marketable securities or rights in

respect of shares.".

(2) After section 60A(4) of the Stamps Act 1958

insert—

"(5) For the purposes of this subdivision and

subdivision (4AA) and of the Third sale or purchase of marketable securities or rights in respect of shares includes a reference to a transaction that, on completion by the parties, results in a company buying- back its own shares in accordance with Division 2 of Part 2J.1 of the Corporations Law.".

State Taxation Acts (Amendment) Act 1999

s. 15 Act No. 47/1999

(3) In the Stamps Act 1958—

(a) in section 60B(4)(b)—

(i) for "otherwise than" substitute "or";

(ii) after "Trust" insert "or";

(b)

in section 60B(4A) for "Division 4B of "Division 2 of Part 2J.1 of the Corporations Law (other than a buy-back that is effected by the purchaser under one or more agreements, arrangements or understandings that the purchaser will issue shares)".

15. Duty on real property on declaration of trust

In section 64A of the Stamps Act 1958 for sub-
section (3) substitute—

"(3) Where—

(a) real property is vested in a person; and

(b) the real property becomes subject to a trust for another by reason of a declaration of trust by that person—

the person shall, not later than 14 days after
the real property becomes subject to the

trust—

(c) statement in the prescribed form
accompanied by a statutory declaration

furnish to the Comptroller of Stamps a and

(d) pay to the Comptroller of Stamps as stamp duty on the statement a sum equal to the amount of stamp duty that would have been payable if the real property had been conveyed by an

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999	s. 16
instrument of conveyance from the person to the other.".

16. Conveyances as a result of single transaction

In section 68 of the Stamps Act 1958 sub-section

(5) is repealed.

17. Motor vehicle duty

After section 137AK(3) of the Stamps Act 1958
insert—

"(4) If a registered used car dealer does not

comply with this section, the Comptroller
may recover as a debt in a court of

competent jurisdiction—

(a) the amount payable under sub-section (1)(b) and interest at the rate of 20% per annum from the date on which payment was due; or

(b) $25—

whichever is the greater.

(5) The Comptroller may mitigate or remit a debt payable under sub-section (4).".

18. New subdivision (18) of Division 3 of Part 2 inserted

After subdivision (17A) of Division 3 of Part II of the Stamps Act 1958 insert—

'(18)—Financial Sector (Transfers of Business)

137O. Statement on transfer of property

(1) A receiving body to whom any property is transferred under Part 3 of the Financial the Commonwealth must lodge a statement with the Comptroller in accordance with sub- section (2) if duty would have been chargeable under this Act had an instrument

State Taxation Acts (Amendment) Act 1999

s. 18 Act No. 47/1999

for the conveyance, transfer or assignment of
the property to the receiving body as

beneficial owner been executed.

(2) A statement under this section—

(a)	must be in the form approved by the Comptroller; and
(b)	must specify the property transferred and the value of that property as at the day on which the property became the property of the receiving body1.

(3) Subject to section 137P, the receiving body must pay to the Comptroller as duty on the statement a sum equal to the amount of

stamp duty that would have been payable if
an instrument for the conveyance, transfer or
assignment of the property to the receiving
body as beneficial owner had been executed.

(4) The statement must be lodged and duty paid

within 3 months after the day on which the
property became the property of the
receiving body.

(5) The payment of duty on a statement under

this section is to be denoted by an impressed
stamp.

(6) A receiving body must not—

(a)	fail to lodge a statement in accordance with this section; or
(b)	lodge a statement that, to the body's knowledge, is false or misleading in a material particular.

Penalty: 500 penalty units.

(7) In this section and section 137P—

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 19

"receiving body" has the same meaning as

in the Financial Sector (Transfers of
Business) Act 1999 of the
Commonwealth.

137P. Duty not chargeable in respect of certain

transfers

(1) Duty is not chargeable on a statement under

section 137O in respect of a transfer of property if the transfer is of a class that, under guidelines approved for the time being

by the Minister, is a class of transfer in respect of which duty is not chargeable.

(2) If duty has been paid on a statement in respect of a transfer referred to in sub- section (1), the Comptroller must refund that

duty.'.

19. New section 137T inserted

After section 137S of the Stamps Act 1958 insert—

'137T. Managed investment schemes

(1) The following are exempt from duty under

this Act—

(a)	an instrument for the transfer of property to a responsible entity if the Comptroller of Stamps is satisfied that the transfer is a necessary consequence of an undertaking to which Division 11 of Part 11.2 of the Corporations Law applies becoming a registered scheme within the meaning of that Division;
(b)	an instrument for the transfer of property from a responsible entity of a

State Taxation Acts (Amendment) Act 1999

s. 19	Act No. 47/1999
managed investment scheme or a trustee of a responsible entity to a custodian or agent of the responsible
entity;

(c) an instrument for the transfer of property as a consequence of a change of the responsible entity of a managed investment scheme;

(d) an instrument that—

(i)  amends, varies or replaces an instrument that establishes or governs a managed investment

scheme; and

(ii)  does not transfer, or have the effect of transferring, any property to a person who does not hold units in the scheme; and

(iii)

does not have the effect of who hold units in the scheme;

(e) an instrument of settlement—

(i)  made by a trustee in respect of property that, immediately before the settlement, is held by the trustee as trustee of a public unit trust scheme; and

(ii)  under which the property is to be held on trust for the responsible entity of a managed investment scheme.

(2) In this section—

"managed investment scheme" means a

managed investment scheme within the
meaning of Chapter 5C of the

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999	s. 21
Corporations Law, and includes a public unit trust scheme;

"responsible entity" has the same meaning as in the Corporations Law.'.

20. Exemptions

In the Third Schedule to the Stamps Act 1958, in Heading IV(A), in exemption (5) for paragraph (e) substitute—

"(e) a transfer of any marketable security or right

in respect of shares to Her Majesty in right
of the State of Victoria or to any
municipality, the Municipal Association of
Victoria, the Western Metropolitan Market
Trust or any authority under the Water Act
1989.".

_______________
State Taxation Acts (Amendment) Act 1999

s. 21 Act No. 47/1999

PART 7—TATTERSALL CONSULTATIONS ACT 1958

No. 6390.	21. Duty payable by promoter
Reprint No. 7
as at
24 November	In section 6 of the Tattersall Consultations Act
1998.	1958—

(a) in sub-section (1)(a), for "35·55" substitute "36";

(b) paragraph (c) of sub-section (1) is repealed;

(c) in sub-section (1B), omit all words and expressions after "soccer football pool".

22. Transitional

After section 12(2) of the Tattersall
Consultations Act 1958 insert—

"(3) This Act as amended by section 21 of the

State Taxation Acts (Amendment) Act
1999 applies to consultations conducted on

or after 1 July 1999.".

_______________
State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 23

PART 8—TAXATION ADMINISTRATION ACT 1997

23. Interest rate in respect of tax defaults No. 40/1997. Reprint No. 1

(1) In section 25(a) of the Taxation Administration	as at 25
March 1999.

Act 1997 for sub-paragraph (i) substitute—

"(i) unless an order is in force under sub-

paragraph (ii), the Treasury Note yield rate;

or".

(2) At the end of section 25 of the Taxation

Administration Act 1997 insert—

'(2) The "Treasury Note yield rate" in respect

of any day is the weighted average yield set before the end of May in the financial year preceding the financial year in which the day occurs.

at the last weekly tender for the 13 week

(3) The Treasury Note yield rate must be rounded to the second decimal place (rounding 0·005 upwards).'.

_______________
State Taxation Acts (Amendment) Act 1999

s. 24 Act No. 47/1999

PART 9—TAXATION (INTEREST ON OVERPAYMENTS)

ACT 1986

No. 35/1986.	24. Updated reference to Tribunal
Reprint No. 1
as at 19
March 1998.	In section 3(1) of the Taxation (Interest on Overpayments) Act 1986, for the definition of "Tribunal" substitute— ' "Tribunal" means Victorian Civil and

Administrative Tribunal established by the
Victorian Civil and Administrative

Tribunal Act 1998.'.

25. Interest rate

(1) In section 7(1) of the Taxation (Interest on Overpayments) Act 1986 for paragraph (b) substitute—

"(b) at the interest rate from time to time applying under this section.".

(2) In section 7 of the Taxation (Interest on

Overpayments) Act 1986 for sub-sections (2)
and (3) substitute—

'(2) The interest rate is—

(a)	unless an order is in force under paragraph (b), the Treasury Note yield rate; or
(b)	the rate specified for the time being by order of the Minister published in the Government Gazette.

(3) The "Treasury Note yield rate" in respect of any day is the weighted average yield set at the last weekly tender for the 13 week

Commonwealth of Australia Treasury Note before the end of May in the financial year

State Taxation Acts (Amendment) Act 1999

Act No. 47/1999 s. 25

preceding the financial year in which the day
occurs.

(3A) The Treasury Note yield rate must be rounded to the second decimal place (rounding 0·005 upwards).'.

═══════════════
State Taxation Acts (Amendment) Act 1999

Notes Act No. 47/1999

NOTES

†

Minister's second reading speech—

Legislative Assembly: 6 May 1999

Legislative Council: 26 May 1999

The long title for the Bill for this Act was "to amend the Debits Tax Act 1990, the Financial Institutions Duty Act 1982, the Gaming Machine Control Act 1991, the Pay-roll Tax Act 1971, the Stamps Act 1958, the

Tattersall Consultations Act 1958, the Taxation Administration Act 1997 and the Taxation (Interest on Overpayments) Act 1986 and for other purposes."

1 Section 10(4) of the Financial Sector Reform (Victoria) Act 1999

provides that property transferred under Part 3 of the Financial Sector
(Transfers of Business) Act 1999 of the Commonwealth ("the
Commonwealth Act") becomes the property of the receiving body when
the certificate of transfer issued under section 18 of the Commonwealth
Act comes into force under Division 3 of Part 3 of the Commonwealth
Act.