Untitled document

Stamps (Amendment) Act 1999

Act No. 32/1999

TABLE OF PROVISIONS

Section Page

1.	Purpose	1
2.	Commencement	1
3.	Principal Act	2
4.	Definitions	2
5.	New section 26A inserted	3

26A.	Arrangements that reduce the unencumbered value of
marketable securities and rights in respect of shares 3

6.	Returns systems	5
7.	Change of beneficial ownership in real property under unit trust
schemes	6
8.	Family farm exemption	7
9.	First home buyers exemption	7
10.	Land rich provisions	8
11.	Insurance premiums to include fire service levies and exclude
discounts	8
12.	Refund of insurance duty on refund of premium	8
13.	New sections 111A and 111B substituted	8
111A. Definitions	9

111B. Life insurers to execute policies of life insurance 9

14.	New section 111GA inserted	10
111GA. Refund of duty if transport accident charge refunded	10
15.	New subdivision (11C) of Division 3 of Part 2 substituted	10
(11C) Superannuation Funds	10
111H. Definitions	10

111I.	Instruments relating to superannuation	11
111J.	Transfer of property from one superannuation fund to
another	12
111K.	Transfers to trustees or custodians of superannuation
funds or trusts	13

16.	Motor vehicle duty	14
17.	Repeal of obsolete definition	14
18.	Collateral securities	14
19.	Repeal of prohibition on issuing unstamped foreign securities	15

i

Section Page

20.	New section 137MC substituted	15
137MC. Refinancing of loans	15
21.	Exemption for assignment of residential lease	17

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NOTES 18

ii

Victoria

No. 32 of 1999

Stamps (Amendment) Act 1999†

[Assented to 1 June 1999]

The Parliament of Victoria enacts as follows:

1. Purpose

The purpose of this Act is to make miscellaneous amendments to the Stamps Act 1958.

2. Commencement

(1) This Act (except section 16) comes into operation
on the day on which it receives the Royal Assent.

(2) Section 16 is deemed to have come into operation

on 1 May 1999.

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 3

3. Principal Act No. 6375.
Reprint No. 14

In this Act the Stamps Act 1958 is called the	as at
Principal Act.	1 September 1997. Further amended by
Nos 84/1996, 86/1997,
46/1998, 48/1998,
52/1998, 83/1998,
97/1998 and 103/1998.

4. Definitions

In section 3 of the Principal Act—

(a) for the definition of "IR" substitute — ' "IR" means any security, not being an

option contract within the meaning of
section 9 of the Corporations Law,

issued by a trustee that provides—

(a) of the security, of marketable
securities that are quoted on the

beneficial ownership, to the holder Stock Exchange Limited; and

(b)

legal ownership of the marketable security on payment of the final instalment, being a payment that the holder is obliged to make under the terms of issue of the security;';

(b) for the definition of "related corporation" substitute—

Stamps (Amendment) Act 1999

s. 5 Act No. 32/1999

' "related body corporate" and "related

corporation" have the same meaning as "related body corporate" has in the Corporations Law;'.

5. New section 26A inserted

After section 26 of the Principal Act insert—

'26A. Arrangements that reduce the

unencumbered value of marketable

securities and rights in respect of shares

(1) In computing for the purposes of this Act the

unencumbered value of any marketable security or right in respect of shares of a company, the Comptroller of Stamps may
include the value of any assets formerly

owned or controlled by the company if—

(a)	those assets were transferred to the ownership or control of the transferee of the marketable security or right in respect of shares or to an associated person of the transferee before the transfer of the marketable security or right in respect of shares; and
(b)	those assets are necessary for the continuing operation of the company after the transfer of the marketable security or right in respect of shares; and
(c)	the value of the marketable security or right in respect of shares was reduced following the transfer of ownership or control of assets because the proceeds of that transfer were not retained by the

company.

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 5

(2) In determining whether assets are necessary

for the continuing operation of a company
the Comptroller may take into account—

(a)	whether or not the assets were removed from the company's premises after the transfer of ownership or control;
(b)	whether or not the assets continued to be used by the company under an arrangement with the transferee.

(3) This section does not apply if the

Comptroller is satisfied that the transfer of ownership or control of assets—

(a)	was part of the normal business operations of the transferee; or
(b)	was not part of a scheme or arrangement to reduce duty payable on the transfer of the marketable security or right in respect of shares.

(4) In this section—

"associated person" means a person who is

associated with another person in
accordance with any of the following
provisions—

(a)	persons are associated persons if they are related persons;
(b)	natural persons are associated persons if they are partners in a partnership to which the Partnership Act 1958 applies;
(c)	private companies are associated persons if common shareholders have a majority interest in each

private company;

Stamps (Amendment) Act 1999

s. 6 Act No. 32/1999

(d) any person is a beneficiary
common to the trusts (not

trustees are associated persons if which they are trustees;

(e) are associated persons if a related
body corporate of the company
(within the meaning of the
Corporations Law) is a
beneficiary of the trust (not

a private company and a trustee which the trustee is a trustee;

"private company" means a corporation

that is not limited by shares, or whose
shares are not listed on Australian
Stock Exchange Limited or a
recognised stock exchange;

"related persons" means persons who are related for the purposes of subdivision (7) of Division 31.'.

6. Returns systems

(1) In section 40A of the Principal Act—

(a) sub-section (2) is repealed;
(b) in sub-section (3)—

(i)  in paragraph (a) after "endorsement" insert "or to be exempt from duty (as the case may be)";

(ii)  in paragraph (c) for "sufficient records to enable him to calculate accurately the total of all amounts endorsed by him under this sub-section" substitute "records of endorsements in the form and containing the particulars

Stamps (Amendment) Act 1999

Act No. 32/1999	s. 7
determined by the Comptroller of Stamps".

(2) In section 40A of the Principal Act for sub-section

(4) substitute—

"(4) An authorized person must not—

(a)	knowingly endorse an instrument under sub-section (3)(a) with an amount of duty less than the amount with which it is chargeable under this Act; or
(b)	fail to comply in any other way with sub-section (3)(a) or (c) or the regulations.

Penalty: 5 penalty units.

(4A) An authorized person must not fail to

comply with sub-section (3)(b).

Penalty:  20 penalty units plus an amount equal to double the amount that would have been payable if the sub-section had been complied with.".

(3) After section 40A(7) of the Principal Act insert— "(7A) Nothing in sub-section (7) prevents the Comptroller from recovering any duty chargeable on an instrument under this Act.".

(4) In section 41(1) of the Principal Act after

"subsequent period" insert "(being a period within
3 years after the date on which the overpayment
was made)".

7.  Change of beneficial ownership in real property under unit trust schemes

(1) In section 64B(9)(d) of the Principal Act after

"unit trust scheme" insert ", otherwise than as part of a scheme or arrangement that, in the opinion of

Stamps (Amendment) Act 1999

s. 8 Act No. 32/1999

the Comptroller, was made with a collateral
purpose of reducing the stamp duty otherwise

payable under this section".

(2) After section 64B(9) of the Principal Act insert—

"(10) Sub-section (9)(d) as amended by section

7(1) of the Stamps (Amendment) Act 1999
applies to a change in beneficial ownership
occurring on or after 4 January 1999.".

8. Family farm exemption

In section 71 of the Principal Act—

(a)

in sub-section (1) for paragraph (a) "(a) the transferor is—

(i) a natural person; or
(ii) a trustee for a natural person; or

(iii)  a company all the shares in which are owned by natural persons who are relatives of each other; and";

(b) in sub-section (1)(b)—

(i)

for "the natural person" (wherever person";

(ii)  at the end of sub-paragraph (iii) insert—

"; or

(iv)  a natural person referred to in paragraph (a)(iii).".

9. First home buyers exemption

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 13

In section 71B of the Principal Act, in sub- sections (3)(g), (5)(b), (6)(d), and (8)(b) for "is less than" substitute "does not exceed".

10. Land rich provisions

(1) In section 75(1) of the Principal Act, in the

definition of "acquire", in paragraph (d)(iii) after
"court" insert ", not being a compromise or
arrangement that the Comptroller of Stamps is
satisfied was made with the intention of defeating

the operation of this subdivision".

(2) In section 75D of the Principal Act for

"sub-section (1)" substitute "section 75C(1)".

11.  Insurance premiums to include fire service levies and exclude discounts

In section 98(1)(a) of the Principal Act for "or discounts" substitute "or any fire service levies paid or payable in connection with insurance by an insurer or any other person".

12. Refund of insurance duty on refund of premium

Before section 111(2) of the Principal Act
insert—

"(1) A registered company or a company, person

or firm of persons to whom section 110A
applies is entitled to a refund of duty if the
registered company refunds, or there is
refunded to the company, person or firm of
persons, the whole or part of a premium in
respect of which duty has been paid.

(1A) The refund is the duty paid on the amount of the premium refunded.".

13. New sections 111A and 111B substituted

Stamps (Amendment) Act 1999
Act No. 32/1999

For sections 111A and 111B of the Principal Act substitute—

'111A. Definitions

In this subdivision—

"insurance against accident" means

insurance under which payment is
agreed to be made on the death of a
person only from accident or violence
or otherwise from a natural cause or as

compensation for personal injury;

"life insurance" means insurance or

assurance in respect of—

(a) a life or lives; or

(b) any event or contingency relating to or depending on a life or lives—

of a person who is, or persons who are,
domiciled in Victoria at the time the
policy is issued, but does not include

insurance against accident.

111B. Life insurers to execute policies of life

insurance

(1) A person who receives or takes credit for a premium or consideration for a contract of life insurance must, within 3 months after receiving or taking credit for the premium or

consideration, make out and execute a duly

stamped policy of life insurance.

Penalty:  2 penalty units and double the
amount of duty that would have
been payable on the policy.

(2) A person must not make, execute, or deliver out, or pay or allow in account, or agree to pay or allow in account any money on or in

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 14

respect of any policy of life insurance that is

not duly stamped.

Penalty:  2 penalty units and double the
amount of duty that would have
been payable on the policy.'.

14. New section 111GA inserted

After section 111G of the Principal Act insert—

"111GA. Refund of duty if transport accident charge

refunded

(1) The Commission is entitled to a refund of

duty if it refunds the whole or part of a
transport accident charge included in a return
on which duty has been paid.

(2) The refund is the duty paid by reference to the amount of the charge refunded.".

15.  New subdivision (11C) of Division 3 of Part 2 substituted

For subdivision (11C) of Division 3 of Part II of the Principal Act substitute—

'(11C) Superannuation Funds

111H. Definitions

In this subdivision—

"complying approved deposit fund"

means an entity that is a complying
approved deposit fund in accordance
with section 43 of the Superannuation
Industry (Supervision) Act 1993 of the
Commonwealth;

"complying superannuation fund" means

an entity that is a complying
superannuation fund in accordance with
section 42 of the Superannuation

Stamps (Amendment) Act 1999

s. 15	Act No. 32/1999
Industry (Supervision) Act 1993 of the Commonwealth and an exempt public sector superannuation scheme;

"eligible rollover fund" means an entity

accordance with section 242 of the

that is an eligible rollover fund in Act 1993 of the Commonwealth and includes an entity the trustee of which is satisfied will be an eligible rollover fund within 12 months after the date on which a liability to duty arises (or would otherwise arise);

"pooled superannuation trust" means an entity that is a pooled superannuation trust in accordance with section 44 of the Superannuation Industry

(Supervision) Act 1993 of the

Commonwealth.

111I. Instruments relating to superannuation

The following instruments are exempt from duty—

(a) amends provisions governing, a
superannuation fund, an approved
deposit fund, a pooled superannuation
trust or an eligible rollover fund, being
a fund or trust that, in the opinion of the
trustees, will be a complying
superannuation fund, a complying
approved deposit fund, a pooled
superannuation trust or an eligible
rollover fund within 12 months after the

an instrument that establishes, or that takes effect;

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 15

(b)	an instrument under which an employer agrees to participate in or contribute to a complying superannuation fund or a superannuation fund that, in the opinion
of the trustees, will become a complying superannuation fund within 12 months after the employer agrees to participate in or contribute to the fund;
(c)	an instrument that is executed in order to set out or vary the terms of custodial arrangements concerning a complying superannuation fund, a complying
approved deposit fund, a pooled superannuation trust or an eligible rollover fund (whether or not the instrument contains any other terms) or concerning a fund or trust that, in the opinion of the trustees, will be a complying superannuation fund, a complying approved deposit fund, a pooled superannuation trust or an eligible rollover fund within 12 months after the instrument takes effect.

111J. Transfer of property from one

superannuation fund to another

(1) Duty is not chargeable on an instrument for

the transfer of property from one
superannuation fund to another if the
Comptroller of Stamps is satisfied that—

(a)	the transfer is made from a complying superannuation fund or from a fund that was a complying superannuation fund within the period of 12 months before the transfer was made; and
(b)	the transfer is made to a complying superannuation fund or to a

Stamps (Amendment) Act 1999

s. 15	Act No. 32/1999
superannuation fund that, in the opinion of the trustees, will be a complying superannuation fund within 12 months after the transfer is made; and

(c) the transfer occurs in connection with a person's ceasing to be a member of, or otherwise ceasing to be entitled to benefits in respect of, the fund from which the property is transferred and the person's becoming a member of, or otherwise becoming entitled to benefits in respect of, the fund to which the property is transferred.

(2) In this section, "complying superannuation

fund" includes a complying approved

deposit fund and an eligible rollover fund.

111K. Transfers to trustees or custodians of

superannuation funds or trusts

(1) Duty is not chargeable on an instrument for

the transfer of property to a trustee or
custodian of a complying superannuation
fund, a complying approved deposit fund, a
pooled superannuation trust or an eligible
rollover fund, or a fund or trust that, in the
opinion of the trustees, will be a complying
superannuation fund, a complying approved
deposit fund, a pooled superannuation trust
or an eligible rollover fund within 12 months
after the transfer takes effect, where there is
no change in the beneficial ownership of the
property.

(2) A transfer of property to or from a trustee or custodian of a pooled superannuation trust in exchange for the issue or redemption of units in the trust does not, for the purposes of this

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 16

section, effect a change in the beneficial

ownership of the property.'.

16. Motor vehicle duty

(1) In section 137AE of the Principal Act for 'The "dutiable value" ' substitute 'Subject to sub- section (2), the "dutiable value" '.

(2) At the end of section 137AE of the Principal Act

insert—

"(2) The dutiable value of a motor vehicle that—

(a)	is a taxi-cab within the meaning of the Transport Act 1983; and
(b)

is specially converted to provide the vehicle; and

(c)	is capable of carrying at least one occupied wheelchair; and
(d)	has not previously been registered in Victoria or elsewhere—

is the value determined in accordance with sub-section (1) less $24 000 or such other amount as is prescribed.".

17. Repeal of obsolete definition

In section 137D(1) of the Principal Act the definition of "foreign security" is repealed.

18. Collateral securities

In section 137I(1) of the Principal Act after "duly stamped" insert "under this Act or under the law

Stamps (Amendment) Act 1999

Act No. 32/1999

of another State or of a Territory of the
Commonwealth".

19.  Repeal of prohibition on issuing unstamped foreign securities

Section 137L of the Principal Act is repealed.

20. New section 137MC substituted

For section 137MC of the Principal Act substitute—

'137MC. Refinancing of loans

(1) In this section—

"refinancing mortgage" means a mortgage

that secures the amount of the balance
outstanding immediately before the
execution of that mortgage under an
earlier duly stamped mortgage to the
same borrower (whether or not over the
same property) that is discharged or to
be discharged as part of the
arrangements for the new mortgage.

(2) For the purposes of sub-section (1),

mortgages are created to secure an advance
to the same borrower if, either directly by the
mortgages themselves or indirectly through
one or more collateral arrangements, the
same person obtains the advances secured by
them.

(3) A refinancing mortgage is taken to have been stamped with ad valorem duty as a mortgage in respect of the amount required

to discharge the earlier mortgage (being an amount in relation to which mortgage duty has been paid or in relation to which an
exemption from duty has been obtained),
except as provided by sub-section (5).

Stamps (Amendment) Act 1999

Act No. 32/1999 s. 20

(4) If an advance is refinanced by more than one lender, so that mortgages given to the lenders together secure the balance outstanding

under an earlier mortgage, the definition of "refinancing mortgage" in sub-section (1) is to be construed as though—

(a)	the reference to a mortgage securing the outstanding balance were a reference to the aggregate of such mortgages; and
(b)	each lender were the holder of a refinancing mortgage.

(5) If, as provided by sub-section (4), each of a

number of lenders is the holder of a refinancing mortgage, a refinancing mortgage held by each lender is taken to
have been duly stamped with ad valorem
duty as a mortgage in respect of an amount
equal to the same proportion of the amount
required to discharge the earlier mortgage as
the amount secured by that mortgage bears
to the total amount secured by the
refinancing mortgages held by all the
lenders.

(6) If each of 2 or more refinancing mortgages severally secures the same advance—

(a) the provisions of sub-section (3) or (5), as the case may be, apply to such one of the mortgages as the Comptroller of

Stamps determines; and

(b) no duty is chargeable in respect of any of the others (insofar as it is a refinancing mortgage) but the Comptroller may denote any of them in a manner approved by the Comptroller.

(7) For the purposes of section 137I—
Stamps (Amendment) Act 1999

s. 21 Act No. 32/1999

(a)	a refinancing mortgage that is taken, by the operation of sub-section (3) or (5), to be duly stamped is in either case the "stamped instrument"; and
(b)	duty is taken to have been paid on it to the extent provided by whichever of those sub-sections applies.

(8) Duty at the rate of $0!80 per $200 or part of $200 is payable on the amount by which the advance made under a refinancing mortgage (not being a mortgage on which, by virtue of sub-section (6)(b), no duty is chargeable)

exceeds—

(a)	the amount required to discharge the earlier mortgage; or
(b)	the proportion of that amount referred to in sub-section (5), in the case of a refinancing to which sub-section (4) applies.

(9) If the number of original borrowers is

reduced, the remaining borrower or
borrowers is or are taken to be the same
borrower or the same person for the purposes

of sub-section (1) or (2).'.

21. Exemption for assignment of residential lease

In the exemptions under Heading VIII in the Third
Schedule to the Principal Act, in clause (10) after
"lease" (where first occurring) insert ",

assignment of lease".

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Stamps (Amendment) Act 1999

Act No. 32/1999 Notes

NOTES

†

Minister's second reading speech—

Legislative Assembly: 22 April 1999

Legislative Council: 12 May 1999

The long title for the Bill for this Act was "to make miscellaneous

amendments to the Stamps Act 1958 and for other purposes."

1 Cl. 5: Section 75(3) specifies which persons are related persons for the

purposes of subdivision (7) of Division 3.