Untitled document

Case
No judgment structure available for this case.

State Taxation (Further Amendment) Act 1998

Act No. 103/1998

TABLE OF PROVISIONS

Section Page
PART 1—PRELIMINARY 1
1. Purpose 1
2. Commencement 2

PART 2—BUSINESS FRANCHISE (PETROLEUM PRODUCTS)

ACT 1979 3
3. Payments by Treasurer 3
4. Diesel fuel exemption certificate 3
5. New sections 20A and 20B inserted 3
20A. Liability to repay certain money 3
20B. Offences 4
PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982 6
6. New definition of broker 6
7. Non-bank financial institutions 6
8. New section 29A inserted 6
29A. Duration of certificate of approval 6
PART 4—LAND TAX ACT 1958 8
9. Release of information 8
10. Principal place of residence 8
PART 5—LIQUOR CONTROL ACT 1987 9
11. Payment of subsidies 9
PART 6—PAY-ROLL TAX ACT 1971 10
12. Definitions 10
13. Amendment of section 3C 11
14. New section 3D inserted 11
3D. Employment agents 11

i

Section Page
15. New sections 3E and 3F inserted 13
3E. Special arrangements for payment of tax by
employment agents on behalf of clients 13
3F.
Agreement to reduce or avoid liability for pay-roll tax 14
16. Nominated member of group 15
17. Exemption from pay-roll tax 16
18. New section 10A inserted 16
10A. Local government business entities 16
PART 7—STAMPS ACT 1958 18
19. Definitions 18
20. Duty on SCH-regulated transfers 19
21. Insurance duty 20
22. New subdivision (16) of Division 3 of Part II substituted— 20
(16) Motor vehicle and heavy trailer registration 21
137A. Definitions 21
137AB. Lodgment of statement of dutiable value 23
137AC. Who is liable to pay the duty? 23
137AD. When does duty become payable? 23
137AE. What is the dutiable value of a motor vehicle or
heavy trailer? 23

137AF. Prohibition on registration of motor vehicles and

heavy trailers 24
137AG. Registration of motor traders and dealers 24
137AH. Cessation of business and cancellation of registration 25
137AI. Register of used car dealers 25
137AJ. Endorsement of code number on application 26
137AK. Monthly returns and payment of duty 26
137AL. Recovery of duty by registered used car dealer 26
137AM. Unauthorised endorsement of code number 27
137AN. Duty on statement of change of use 27
137AO. Duty on statement of acquisition 28
137AP. Entitlement to refund 29
137AQ. Transitional provision 29
23. New Heading XXI in Third Schedule substituted 30
24. Marketable security duty 36
25. Sales of sheep and goats 38
26. Consequential amendment of State Taxation (Further
Amendment) Act 1995 38
PART 8—TAXATION ADMINISTRATION ACT 1997 39
27. Special arrangements may include interest 39
28. Permitted disclosures of information 39
29. Objection 39

ii

Section Page
30. Certificate evidence 40
31. Statute law revision 40

═══════════════

NOTES 41

iii

Victoria

No. 103 of 1998

State Taxation (Further Amendment)

Act 1998†

[Assented to 1 December 1998]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to make certain
amendments to the Business Franchise
(Petroleum Products) Act 1979, the Financial
Institutions Duty Act 1982, the Land Tax Act
1958, the Liquor Control Act 1987, the Pay-roll
Tax Act 1971, the Stamps Act 1958 and the
Taxation Administration Act 1997.

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 2

2. Commencement

(1) This Part, Part 2, Part 3 (except section 6), Part 4 (except section 10), sections 16 and 21 and Part 8 (except sections 27 and 30) come into operation

on the day on which this Act receives the Royal
Assent.

(2) Part 5 is deemed to have come into operation at 3.30 p.m. on 6 August 1997.

(3) Section 10 is deemed to have come into operation on 26 May 1998.

(4) Sections 17 and 18 are deemed to have come into operation on 1 July 1998.

(5) Sections 6 and 19(1) are deemed to have come into operation on 13 October 1998.

(6) Sections 19(2), 20, 24, 25 and 26 come into

operation on 1 January 1999.

(7) Sections 12, 13, 14, 15, 22, 23, 27 and 30 come into operation on a day or days to be proclaimed.

_______________
State Taxation (Further Amendment) Act 1998

s. 3 Act No. 103/1998

PART 2—BUSINESS FRANCHISE (PETROLEUM

PRODUCTS) ACT 1979

No. 9272. 3. Payments by Treasurer
Reprint No. 4
as at 19
March 1998. After section 17(2) of the Business Franchise
(Petroleum Products) Act 1979 insert—
"(3) If the Treasurer pays an amount to a person

under this section that exceeds the amount
due to that person, the overpayment may be
off-set against future payments to that person

under this section.".

4. Diesel fuel exemption certificate

After section 19(6) of the Business Franchise
(Petroleum Products) Act 1979 insert—

"(7) The holder of an exemption certificate must

return it to the Commissioner if the holder
does not expect to purchase diesel fuel at any
time during the remaining period of validity
of the certificate for use otherwise than for
propelling diesel engined road vehicles on a

road.".

5. New sections 20A and 20B inserted

After section 20 of the Business Franchise

(Petroleum Products) Act 1979 insert—

"20A. Liability to repay certain money

(1) A person who purchases diesel fuel at a price

at which the diesel fuel is offered for sale to
the holder of an exemption certificate and
who—

(a)

at the time of the purchase produces to the seller of the diesel fuel, or to an

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 5
agent of the seller, an exemption
certificate that has been revoked or that
was not issued to the purchaser; or

(b)

at the time of the purchase gives the seller of the diesel fuel, or an agent of the seller, false particulars of an exemption certificate; or

(c)

seeks to obtain the diesel fuel at that price by fraudulent means; or

(d)

uses the diesel fuel for propelling diesel engined road vehicles on roads—

is liable to pay as a debt due to the State an
amount calculated in accordance with the

formula—

A L M = ×

where— prescribed.

A is the amount in dollars;
L is the number of litres of diesel fuel
purchased;

20B. Offences

(1) A person who purchases diesel fuel and who at the time of that purchase—

(a)

is not the holder of a current exemption certificate; and

(b)

represents to the seller of the diesel fuel or an agent of the seller that the person is such a holder—

State Taxation (Further Amendment) Act 1998

s. 5 Act No. 103/1998

is guilty of an offence.

Penalty:  600 penalty units in the case of a
body corporate.
120 penalty units in any other
case.

(2) A person who—

(a)

purchases diesel fuel as the holder, or purported holder, of an exemption certificate; and

(b)

uses, or authorises or permits the use of, the diesel fuel for propelling diesel engined road vehicles on a road—

is guilty of an offence.

Penalty:  600 penalty units in the case of a
body corporate.
120 penalty units in any other
case.".

_______________
State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 6

PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982

6. New definition of broker No. 9850.
Reprint No. 3
In section 3(1) of the Financial Institutions Duty as at
22 August
Act 1982, for the definition of "broker" 1997.
substitute— Subsequently
amended by
Nos 84/1996,

' "broker" means a person (other than a bank) who is a broker within the meaning of the

43/1997,

86/1997 and
Business Rules of Australian Stock 48/1998.
Exchange Limited;'.

7. Non-bank financial institutions

In section 25(12) of the Financial Institutions Duty Act 1982, in the definition of "non-bank financial institution", for paragraph (d)

substitute—

"(d) a charitable institution other than a tertiary

educational institution;

(da) a public hospital;
(db) a State school;

(dc) the trustees for the time being of a trust the

capital and income of which may not be
applied otherwise than for charitable

purposes;".

8. New section 29A inserted

After section 29 of the Financial Institutions

Duty Act 1982 insert—

"29A. Duration of certificate of approval

A certificate of approval under this Part—

(a)

comes into force on the day specified in it (which may be a day before the day on which it is issued); and

State Taxation (Further Amendment) Act 1998

s. 8 Act No. 103/1998
(b)

remains in force for the period specified under this Part.".

_______________
State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 9

PART 4—LAND TAX ACT 1958

9. Release of information No. 6289.
Reprint No. 9
In section 4(4) of the Land Tax Act 1958, before as at 26 May 1998. Further

paragraph (d) insert—

amended by Nos 35/1998,

"(a) a member of the police force of or above the rank of Inspector; or".

46/1998 and

52/1998.

10. Principal place of residence

(1) In section 13H(1) and (2) of the Land Tax Act

1958 for "has paid" substitute "was assessed for
and paid".

(2) In section 13H of the Land Tax Act 1958 for sub-

section (3) substitute—

'(3) If—

(a)

an owner or trustee is entitled under sub-section (1) or (2) to a refund of tax in respect of 1999 or any subsequent year ("the tax year") in respect of land; and

(b)

the owner or trustee was assessed for and paid tax in respect of that land in respect of the year preceding the tax year; and

(c)

the owner or trustee was not entitled to an exemption under this Part in respect of any other land in respect of the year preceding the tax year—

the owner or trustee is entitled to a refund of

the tax referred to in paragraph (b).'.

_______________
State Taxation (Further Amendment) Act 1998

s. 11 Act No. 103/1998

PART 5—LIQUOR CONTROL ACT 1987

No. 97/1987. 11. Payment of subsidies
Reprint No. 4
as at 24 April
1998. Further In section 119A(1)(b) of the Liquor Control Act
amended by 1987, after "licences" insert "(whether granted
Nos 46/1998
and 52/1998. under the law of this State or of another State or
Territory)".

_______________
State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 12

PART 6—PAY-ROLL TAX ACT 1971

12. Definitions No. 8154.
Reprint No. 6
(1) In section 3(1) of the Pay-roll Tax Act 1971— as at
22 August
1997. Further

(a) for the definition of "employer" substitute— ' "employer" means any person who pays or

amended by Nos 80/1997,

86/1997 and
is liable to pay any wages and 48/1998.
includes—

(a)

the Crown in right of the State of Victoria;

(b)

any person deemed to be an employer by section 3C, 3D or 3F;

(c)

any public, local or municipal body or authority constituted under the law of the

Commonwealth or a State unless,
being an authority constituted
under the law of the
Commonwealth, it is immune
from the operation of this Act;';

(b)

after the definition of "employer" insert— ' "employment agency contract" has the

meaning given in section 3D(1);

"employment agent" has the meaning

given in section 3D(1);'.

(2) In section 3(1) of the Pay-roll Tax Act 1971, in the definition of ''wages"—

(a)

after "deemed by section 3C" insert ", 3D or 3F";

(b)

in paragraph (ba), after "section 3C" insert ", 3D or 3F".

State Taxation (Further Amendment) Act 1998

s. 13 Act No. 103/1998

13. Amendment of section 3C

(1) In section 3C(1)(e)(v) of the Pay-roll Tax Act

1971, after "public generally" insert "in that
financial year".

(2) After section 3C(1) of the Pay-roll Tax Act 1971

insert—

"(1A) For the purposes of this section, an

employment agency contract under which
services are supplied by an employment
agent, or a service provider is procured by an
employment agent, is not a relevant

contract.".

14. New section 3D inserted

After section 3C of the Pay-roll Tax Act 1971
insert—

'3D. Employment agents

(1) In this section—

"contract" includes agreement, arrangement and undertaking;

"employment agency contract" means a contract, whether formal or informal and whether express or implied under

which a person ("employment agent")
procures the services of another person
("service provider") for a client of the

employment agent, other than—

(a)

a contract under or in respect of which—

(i) the employment agent does
not, and is not entitled to,
receive any payment, other
than a lump sum payment;
and

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 14
(ii)

not a payment in respect of
the services provided by the

that lump sum payment is of the employment agent; or

(b)

a contract that results in, or that is made in circumstances that result in, a contract of employment

being created between the service
provider and the client.

(2) For the purposes of this Act—

(a) a client for whom services are procured under an employment agency contract is deemed to be an employer; and
(b) the person who performs work for or in relation to which services are provided to the client under that employment
agency contract is deemed to be an
employee of the client; and
(c) subject to sub-section (3), any amount paid or payable by the client in respect of the provision of services by the

service provider in connection with the employment agency contract is deemed to be wages paid or payable by the

client under the employment agency
contract.

(3) Sub-section (2)(c) does not apply to an

amount paid or payable in respect of the
provision of services by the service provider
to a client in connection with an employment
agency contract in any month in which the
person who performs work for or in relation
to which services are provided to the client
does so on less than 8 days.

State Taxation (Further Amendment) Act 1998

s. 15 Act No. 103/1998

(4) If an amount referred to in sub-section (2)(c)

is included in a larger amount paid or
payable by a client in connection with an
employment agency contract, that part of the
larger amount that is not attributable to the
provision of services in connection with the
employment agency contract may be
prescribed by the regulations.

(5) If, in respect of a payment that is deemed to

be wages under this section, pay-roll tax is
paid by or on behalf of the client—

(a)

no other person is liable to pay pay-roll tax in respect of that payment; and

(b)

if another person is liable to make a payment in respect of the provision of services to which the payment relates, that person is not liable for pay-roll tax in respect of that payment unless any of the payments is made with an intention, either directly or indirectly, of avoiding or evading the payment of tax by any person.'.

15. New sections 3E and 3F inserted

After section 3D of the Pay-roll Tax Act 1971
insert—

"3E. Special arrangements for payment of tax by

employment agents on behalf of clients

(1) Subject to sub-section (2), if—

(a)

the Commissioner has approved a of Part 6 of the Taxation Administration Act 1997 for the payment of pay-roll tax on behalf of a client by an employment agent; and

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 15

(b)

a client pays an amount in respect of pay-roll tax to an employment agent as part of that special arrangement—

the client is relieved from any further
liability for pay-roll tax in respect of that
amount.

(2) Sub-section (1) does not apply if the effect of the employment agency contract is to reduce or avoid the liability of the client to the

assessment, imposition or payment of pay- roll tax (otherwise than as provided by sub- section (1)).

(3) This section has effect in relation to

employment agency contracts made before, on or after the commencement of section 15 of the State Taxation (Further

Amendment) Act 1998.

3F. Agreement to reduce or avoid liability for

pay-roll tax

(1) If any person enters into an employment

agency contract and the effect of the contract
is to reduce or avoid the liability of any
person to the assessment, imposition or
payment of pay-roll tax, the Commissioner
may—

(a) disregard the contract; and

(b) determine that any party to the contract is deemed to be an employer for the purposes of this Act; and
(c) determine that any payment made in respect of the contract is deemed to be wages for the purposes of this Act.

(2) If the Commissioner makes a determination

under sub-section (1), the Commissioner
must serve a notice to that effect on the

State Taxation (Further Amendment) Act 1998

s. 16 Act No. 103/1998

person deemed to be an employer for the
purposes of this Act and must set out in the
notice the facts on which the Commissioner
relies and the reasons for making the

determination.

(3) This section has effect in relation to

employment agency contracts made before, on or after the commencement of section 15 of the State Taxation (Further

Amendment) Act 1998.".

16. Nominated member of group

(1) In section 9A(4)(a) of the Pay-roll Tax Act

1971—

(a) after "and notice" insert "in accordance with sub-section (4A)";
(b) in sub-paragraph (i), after "being a notice" insert "in accordance with sub-section (4A)";
(c) in sub-paragraph (ii), after "by notice" insert "in accordance with sub-section (4A)";
(d)

in sub-paragraph (iii), after "notice of section (4A)".

(2) After section 9A(4) of the Pay-roll Tax Act 1971

insert—

"(4A) A notice of nomination, or of revocation or objection to a nomination, of a member of a group under sub-section (4)(a) must be in

writing, be dated and include—

(a)

the name and address of each member of the group making, revoking or objecting to the nomination; and

(b)

the date on which the group came into existence; and

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 17

(c)

the name and address of the member of the group in respect of whom the notice is given; and

(d)

in the case of a notice of nomination, the date on which the member of the group became such a member.".

17. Exemption from pay-roll tax

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

"(l) subject to section 10A, by a body corporate

to a person for or in connection with an
activity conducted for a municipal council,
or for 2 or more municipal councils, under a
written arrangement between the body
corporate and the municipal council or

municipal councils.".

18. New section 10A inserted

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

"10A. Local government business entities

The exemption under section 10(1)(l)—

(a) does not apply to wages paid or payable for or in connection with an activity referred to in section 10(1)(e);
(b)

corporate is a wholly-owned subsidiary
(within the meaning of the

does not apply unless the body council or municipal councils;

(c) does not apply unless the Commissioner is satisfied—

(i)  that the arrangement between the body corporate and the municipal

State Taxation (Further Amendment) Act 1998

s. 18 Act No. 103/1998

council or municipal councils
includes provisions for the
payment by the body corporate to
the municipal council or
municipal councils of amounts
approximately equivalent to the
amount of pay-roll tax that would
be payable by the body corporate
under this Act but for the
exemption; and

(ii)  that those provisions are being complied with.".

_______________
State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 19

PART 7—STAMPS ACT 1958

19. Definitions No. 6375.
Reprint No. 14
(1) In section 3 of the Stamps Act 1958 for the as at 1 September

definition of "broker" substitute—

1997. Further amended by

' "broker" means a person who is a broker within the meaning of the Business Rules of

Nos 86/1997,
46/1998,

48/1998 and
Australian Stock Exchange Limited;'. 52/1998.

(2) In section 3 of the Stamps Act 1958—

(a) insert the following definitions—
' "Australian register" has the same
meaning as in the Corporations Law;
"de facto spouse" means a person who is

living with a person of the opposite sex
as if they were married although they

are not;

"instalment warrant" means a warrant—

(a)

in accordance with the Business

that is issued by the warrant issuer Exchange Limited; and

(b) that is an option contract within the meaning of section 9 of the Corporations Law; and
(c) that provides beneficial ownership in respect of marketable securities that are quoted on the market
operated by Australian Stock
Exchange Limited; and
(d)

marketable securities to the

that provides legal ownership of final instalment, being a payment

State Taxation (Further Amendment) Act 1998

s. 20 Act No. 103/1998

that the warrant holder makes under the terms of issue of the warrant;

"warrant-issuer" means a person who is a

warrant-issuer under the Business
Rules of Australian Stock Exchange
Limited;';

(b)

in the definition of "marketable security" "(f) any instalment warrant;".

20. Duty on SCH-regulated transfers

In section 60EA of the Stamps Act 1958 for
paragraph (c) substitute—
"(c) the security is—

(i)  a share, or a right or CUFS in respect of a share, in a Victorian registered company; or

(ii)  a share, or a right or CUFS in respect of a share, in a corporation incorporated outside Australia, being a share that is kept on the Australian register kept in Victoria; or

(iii)

a unit or sub-unit or otherwise), or a
CUFS in respect of a right or interest,

a right or interest (whether described as scheme, being a right or interest that is registered on a register kept in Victoria; or

(iv)  a right or interest (whether described as a unit or sub-unit or otherwise), or a CUFS in respect of a right or interest, of a beneficiary under a unit trust scheme, being a right or interest that is

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 21
not registered on a register kept in
Australia but in respect of which the
manager (or, if there is no manager, the
trustee) of the unit trust scheme—
(A) is a Victorian registered company;

or

(B) is a natural person resident in

Victoria; or

(v)  an IR in respect of a share in a Victorian registered company; or

(vi) an instalment warrant providing
beneficial ownership in respect of
shares in a Victorian registered
company; and".

21. Insurance duty

(1) In section 99 of the Stamps Act 1958 for sub-

section (1) substitute—
"(1) For the purposes of section 97, the premiums

chargeable with stamp duty are all premiums
for assurance or insurance business that are

applicable to—

(a) property in Victoria; or

(b) a risk, contingency or event concerning an act or omission that, in the normal course of events, may occur within or partly within Victoria.".

(2) In section 99 of the Stamps Act 1958 sub-section (2) is repealed.

(3) Section 110 of the Stamps Act 1958 is repealed.

22.  New subdivision (16) of Division 3 of Part II substituted—

For subdivision (16) of Division 3 of Part II of the
Stamps Act 1958 substitute—

State Taxation (Further Amendment) Act 1998

s. 22 Act No. 103/1998

'(16) Motor vehicle and heavy trailer

registration

137A. Definitions

In this subdivision and Heading XXI in the
Third Schedule—

"application for registration" means an

application for registration of a motor
vehicle or heavy trailer under the Road

Safety Act 1986 if—

(a)

the vehicle or trailer has not that Act; or

(b)

vehicle or trailer is to be
registered differs from the person

the person in whose name the trailer was last registered;

"application for transfer of registration" means an application for the transfer of registration of a motor vehicle or heavy trailer under the Road Safety Act

1986;

"heavy trailer" means a trailer or

semi-trailer within the meaning of the Road Safety Act 1986 with an MRC exceeding 4·5 tonnes;

"licensed motor car trader" has the same meaning as in the Motor Car Traders Act 1986;

"motor vehicle" means a motor vehicle

within the meaning of the Road Safety
Act 1986;

"MRC" has the same meaning as in the Schedule to the Road Transport

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 22
Charges (Australian Capital Territory)
Act 1993 of the Commonwealth;

"passenger car" means—

(a) a motor vehicle constructed
principally for the carriage of
passengers; or

(b) a motor vehicle that—

(i) is designed principally for
the conveyance of not more
than 8 adults; and
(ii)

truck chassis or with special

is constructed either on a operation—

but does not include—

(c) a motor cycle; or

(d) a motor vehicle having a utility or panel van type body in which the forward part of the body form and the greater part of the mechanical equipment are the same as those

in a passenger car manufactured by the manufacturer of the motor vehicle; or

(e)

the carriage of passengers and

a motor vehicle constructed for 8 adults (including the driver);

"registered operator" has the same

meaning as in the Road Safety Act

1986;

"registered used car dealer" means a

person registered under section 137AG;

State Taxation (Further Amendment) Act 1998

s. 22 Act No. 103/1998

"special dealer" means a person who would

meaning of the Motor Car Traders

be a motor car trader within the vehicles in which the person trades are not motor cars within the meaning of that Act.

137AB. Lodgment of statement of dutiable value

(1) A person who is required by law to make an

application for registration or transfer of registration of a motor vehicle or heavy trailer under the Road Safety Act 1986 must

lodge with the application a statement of the dutiable value of the motor vehicle or heavy trailer, unless the application is exempt from duty under this Act.

(2) A statement of the dutiable value is to be in a form approved by the Comptroller.

137AC. Who is liable to pay the duty?

(1) Duty on an application for registration of a motor vehicle or heavy trailer is payable by the applicant for registration.

(2) Duty on an application for transfer of

registration of a motor vehicle or heavy trailer is payable by the acquirer of the vehicle or trailer.

137AD. When does duty become payable?

Duty becomes payable on the making of the application for registration or transfer of registration of the motor vehicle or heavy trailer.

137AE. What is the dutiable value of a motor
vehicle or heavy trailer?
State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 22

The "dutiable value" of a motor vehicle or heavy trailer is—

(a) the consideration in money or money's worth given for the acquisition of the motor vehicle or heavy trailer; or
(b) the price at which the motor vehicle or heavy trailer might reasonably be sold, free from encumbrances, in the open

market—

whichever is the greater.

137AF. Prohibition on registration of motor
vehicles and heavy trailers

(1) The registration authority must not register a motor vehicle or heavy trailer unless—

(a) a statement of the dutiable value of the motor vehicle or heavy trailer is lodged in accordance with section 137AB and duty is duly paid on the application; or
(b) the application for registration of the motor vehicle or heavy trailer is exempt from duty under this Act.

(2) In this section "registration authority"

means the person who has the responsibility
for the registration of motor vehicles or
heavy trailers in Victoria.

137AG. Registration of motor traders and dealers

(1) The Comptroller of Stamps, on written

application by a licensed motor car trader or
a special dealer, must register the trader or
dealer as a registered used car dealer and
give the trader or dealer a code number.

(2) The Comptroller must give written notice of registration to the trader or dealer.

State Taxation (Further Amendment) Act 1998

s. 22 Act No. 103/1998

(3) Registration has effect on and from the date

specified in the notice under sub-section (2).

137AH. Cessation of business and cancellation of

registration

(1) A registered used car dealer who—

(a) ceases to be a licensed motor car trader or special dealer (as the case may be); or
(b) wishes to cease being registered under section 137AG—

must give written notice to the Comptroller of Stamps before or forthwith on so ceasing and must lodge the return required to be

lodged under section 137AK and pay the
duty required to be paid on that return, on or
before the 21st day of the month following
the month in which the notice is given.

(2) The Comptroller may cancel the registration of a registered used car dealer—

(a)

on receipt of a notice under sub-section (1); or

(b)

if the Comptroller is satisfied that the dealer has ceased to be a licensed motor car trader or special dealer (as the case may be).

137AI. Register of used car dealers

(1) The Comptroller must keep a register of registered used car dealers.

(2) Anyone may inspect the register without

charge at the Comptroller's principal office
during the hours that office is open to the
public.

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 22

137AJ. Endorsement of code number on

application

When a registered used car dealer disposes of a motor vehicle or heavy trailer that is registered under the Road Safety Act 1986 to another person (whether or not the dealer is the registered operator of the vehicle or trailer), the dealer must endorse the dealer's code number on the application for transfer of registration of the vehicle or trailer. Penalty: 100 penalty units.

137AK. Monthly returns and payment of duty

(1) A registered used car dealer must, on or before the 21st day of each month—

(a) lodge a return with the Comptroller of Stamps; and
(b) pay to the Comptroller as stamp duty on the return an amount equal to the duty that would have been payable
under this Act on applications for
transfer of registration of motor
vehicles and heavy trailers disposed of
by the dealer during the preceding
month, but for exemption (4) under
Heading XXI in the Third Schedule.

(2) A "nil" return must be lodged if nothing has happened in the preceding month to require the registered used car dealer to pay duty

under this section.

(3) The Comptroller may require a return under

this section to be verified in the manner
approved by the Comptroller.

137AL. Recovery of duty by registered used car

dealer

State Taxation (Further Amendment) Act 1998

s. 22 Act No. 103/1998

(1) A registered used car dealer may require a person who acquires a motor vehicle or heavy trailer from the dealer to pay the dealer an amount equal to the duty payable

by the dealer under section 137AK(1)(b) by
reference to the motor vehicle or heavy

trailer.

(2) The requirement is duly made if it is

contained in a written request given to the
person that specifies the amount of the duty.

(3) If the amount is not paid to the registered used car dealer, the dealer may recover it from the person as a debt.

137AM. Unauthorised endorsement of code number A person must not endorse the code number of a registered used car dealer on an

application for transfer of registration of a
motor vehicle or heavy trailer unless the
person is required to do so by or under this
subdivision.

Penalty: 100 penalty units.

137AN. Duty on statement of change of use

(1) This section imposes duty if—

(a)

there is a change in the predominant use of a motor vehicle or heavy trailer the last application for registration or transfer of registration of which was exempt from duty under Heading XXI in the Third Schedule because of the use of the vehicle or trailer; and

(b)

an application for registration or transfer of registration of the vehicle or trailer in Victoria is not made in connection with the change of use.

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 22

(2) Within 14 days after there is a change in the predominant use of a motor vehicle or heavy trailer of the kind referred to in sub-section

(1), the registered operator of the vehicle or

trailer must—

(a)

lodge with the Comptroller of Stamps a statement of the change in the use; and

(b)

pay duty at the rate of $8 per $200, or part, of the dutiable value of the vehicle or trailer at the time the change occurred.

137AO. Duty on statement of acquisition

(1) This section imposes duty on the acquisition

of a motor vehicle or heavy trailer if an
application for transfer of registration of the
vehicle or trailer is not made within the time
required for the lodgment of that application
under the Road Safety Act 1986 or
regulations under that Act.

(2) If a person acquires a motor vehicle or heavy

transfer of registration of the vehicle or
trailer within the time required for the
lodgment of that application under the Road
Safety Act 1986 or regulations under that

trailer and does not make an application for expiry of that time—

(a) lodge with the Comptroller of Stamps a statement of the acquisition; and
(b) pay duty at the rate of $8 per $200, or part, of the dutiable value of the vehicle or trailer at the time of the acquisition.

(3) If an application referred to in sub-section

(2) is subsequently made and duty is paid on
the application or the application is not

State Taxation (Further Amendment) Act 1998

s. 22 Act No. 103/1998

chargeable with duty, the person is entitled
to a refund of duty paid on the statement

under sub-section (2).

137AP. Entitlement to refund

(1) A person is entitled to a refund of duty paid

by the person on an application for
registration or transfer of registration of a
motor vehicle or heavy trailer if—

(a)

the application is exempt from or not chargeable with duty; or

(b)

after the duty is paid the application is refused; or

(c) after the duty is paid—

(i)

the proposed acquisition of the does not proceed; and

(ii)  the vehicle or trailer has been returned to the person from whom it was proposed to be acquired; and

(iii)  all money refundable as a result of the acquisition not proceeding has been refunded to the person who

proposed to acquire the vehicle or
trailer.

(2) A person is entitled to a refund of that part of the duty paid by the person on an application for registration or transfer of registration of a motor vehicle or heavy trailer that is

overpaid.

137AQ. Transitional provision

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 23

For the purposes of exemption (4) under
Heading XXI in the Third Schedule, a
reference to a previous application to transfer
registration of a motor vehicle or heavy
trailer includes a reference to a previous
notice of acquisition of the vehicle or trailer
within the meaning of section 137A as in
force immediately before the commencement
of section 22 of the State Taxation

(Further Amendment) Act 1998.'.

23. New Heading XXI in Third Schedule substituted

For Heading XXI in the Third Schedule to the

Stamps Act 1958 substitute—

"XXI—APPLICATIONS FOR REGISTRATION

AND TRANSFER OF REGISTRATION OF MOTOR VEHICLES AND HEAVY TRAILERS

1.  On an application for registration of a motor vehicle or heavy trailer that has not previously been registered in Victoria or elsewhere—

(a) for a passenger car the dutiable value of which exceeds $35 000 but does not exceed $45 000—$8 per $200, or part, of the dutiable value of the vehicle;
(b) for a passenger car the dutiable value of which exceeds $45 000—$10 per $200, or part, of the dutiable value of the

vehicle;

(c) in any other case—$5 per $200, or part, of the dutiable value of the vehicle or trailer.

2.  On an application for registration of a motor vehicle or heavy trailer (other than an application referred to in clause 1) or an

State Taxation (Further Amendment) Act 1998

s. 23 Act No. 103/1998

application for transfer of registration of a
motor vehicle or heavy trailer—$8 per $200,
or part, of the dutiable value of the vehicle or

trailer.

Exemptions—

(1) An application for transfer of registration of

a motor vehicle or heavy trailer made by a
person who is beneficially entitled to the
vehicle or trailer following the death of the
person in whose name it was registered in
Victoria.

(2) An application for registration or transfer of registration of a motor vehicle or heavy trailer made by a surviving spouse or de facto spouse who has acquired the vehicle or

trailer through an entitlement to the whole or
part of the estate of the deceased spouse or
de facto spouse.

(3) An application for registration or transfer of

registration of a motor vehicle or heavy
trailer made by the executor or administrator
of a deceased estate for the purpose of—

(a) subsequently transferring the vehicle or trailer to a person who is beneficially entitled to it; or
(b) enabling the subsequent sale of the vehicle or trailer in the course of winding up the estate.

(4) An application for transfer of registration of

a motor vehicle or heavy trailer made by a
person (other than a registered used car
dealer) who acquires the vehicle or trailer
from a registered used car dealer if—

(a)

duty under this Heading has been paid on an application for registration, or a

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 23
previous application to transfer the
registration of, the vehicle or trailer; or

(b)

the vehicle has been used otherwise than solely for sale and duty under this Heading has not been paid on an application for registration, or a previous application to transfer the registration of, the vehicle or trailer.

(5) An application by a registered used car

dealer who carries on a business of dealing in motor vehicles for transfer of registration of a motor vehicle or heavy trailer—

(a)

in the course of, and for the purpose of carrying on that business; and

(b)

solely for the purpose of the sale of the vehicle or trailer.

(6) An application by a registered used car

dealer who carries on a business of dealing,
for the purpose of sale by retail, in motor
vehicles or heavy trailers for transfer of
registration of a motor vehicle or heavy

trailer—

(a) in the course of, and for the purpose of carrying on that business and solely or primarily for the purpose of either or

both of the following—

(i) the sale of the vehicle or trailer;

(ii)  the use of the vehicle or trailer for the purpose of the sale of another motor vehicle or heavy trailer of the same class; or

(b)

solely or primarily for the purpose of the provision of the vehicle or trailer to a secondary educational institution for use for driver education purposes.

State Taxation (Further Amendment) Act 1998

s. 23 Act No. 103/1998

(7) An application by a licensed motor car trader who carries on a business of dealing in motor vehicles or heavy trailers for registration of a motor vehicle or heavy trailer—

(a) in the course of, and for the purpose of carrying on that business; and
(b) solely for the purpose of the sale of the vehicle or trailer.

(8) An application by a licensed motor car trader

who carries on a business of dealing, for the
purpose of sale by retail, in motor vehicles or
heavy trailers for registration of a motor
vehicle or heavy trailer—

(a) in the course of, and for the purpose of carrying on that business and solely or primarily for the purpose of either or

both of the following—

(i) the sale of the vehicle or trailer;

(ii)  the use of the vehicle or trailer for the purpose of the sale of another motor vehicle or heavy trailer of the same class; or

(b)

solely or primarily for the purpose of the provision of the vehicle or trailer to a secondary educational institution for use for driver education purposes.

(9) An application for registration or transfer of

trailer made by a person who holds a licence
under a law of another State or a Territory
that corresponds to the Motor Car Traders

registration of a motor vehicle or heavy that Act if the application is made in the course of carrying out the business to which the licence relates.

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 23

(10) An application for registration or transfer of

registration of a motor vehicle or heavy
trailer made by a person if a fee would not be
payable under the Road Safety Act 1986 or
regulations under that Act on a transfer of
registration of the vehicle or trailer to that
person.

(11) An application for transfer of registration of

a motor vehicle or heavy trailer made by a
shareholder of a company in the course of a
distribution of assets of the company as a
consequence of the winding up or the
reduction of the capital of the company.

(12) An application for registration or transfer of

registration of a motor vehicle or heavy
trailer made to effect a transfer of the vehicle
or trailer from one person to another person,
or from two people to one of them or from
one person to themselves and another person
if—

(a)

both people are married to each other; or

(b)

both people have been married to each other and the Comptroller is satisfied that the transfer was made because of the breakdown of the marriage; or

(c)

both people are de facto spouses of each other; or

(d)

both people have been de facto spouses of each other and the Comptroller is satisfied that the transfer was made because of the breakdown of their relationship as de facto spouses—

State Taxation (Further Amendment) Act 1998

s. 23 Act No. 103/1998

and no other person takes or is entitled to
take an interest in the vehicle or trailer under
the transfer.

(13) An application for registration or transfer of

registration of a motor vehicle or heavy
trailer made by a person if the Comptroller is
satisfied that—

(a)

the application is made solely to under an instrument of settlement; and

(b) the instrument of settlement is made because of the breakdown of the marriage of the settlor; and
(c) the person from whom the vehicle or trailer was acquired was a party to the marriage; and
(d) no person other than a party to the marriage or a child of a party to the marriage is a beneficiary under the instrument of settlement.

(14) An application for transfer of registration of a motor vehicle or heavy trailer made—

(a) by a person for whom, when a minor, the vehicle or trailer was acquired by another person as nominee or trustee; and
(b) to give effect to the transfer of the vehicle or trailer from the nominee or trustee to the person after ceasing to be a minor.

(15) An application for transfer of registration of a motor vehicle or heavy trailer made—

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 24

(a)

solely because of the appointment or retirement of a trustee or other change in trustees; and

(b)

in order to vest the vehicle or trailer in the trustees for the time being entitled to hold the vehicle.

(16) An application for registration of a motor

vehicle or heavy trailer by a person if—

(a)

the vehicle or trailer was last registered by the person outside Victoria but within Australia; and

(b)

the Comptroller is satisfied that the vehicle or trailer was not registered outside Victoria for the purpose of avoiding duty under this Heading.".

24. Marketable security duty

(1) In the Third Schedule to the Stamps Act 1958 in Heading IV(A)—

(a)

in clause 1 after "transfer" (where first occurring) insert "(other than a transfer to perfect a sale or purchase to which subdivision (4AA) of Division 3 of Part II applies)";

(b) after clause 1(a) insert "or";

(c)

in clause 1 for paragraphs (b), (c) and (d) "(b) a share, or an interest in a share, in a

corporation incorporated outside the Australian register kept in Victoria; or

(c)

a right or interest (whether described as a unit or sub-unit or otherwise) of a beneficiary under a unit trust scheme,

State Taxation (Further Amendment) Act 1998

s. 24 Act No. 103/1998
being a right or interest that is
registered on a register kept in Victoria;
or
(d)

a right or interest (whether described as beneficiary under a unit trust scheme, being a right or interest that is not registered on a register kept in Australia but in respect of which the manager (or, if there is no manager, the trustee) of the unit trust scheme—

(i)  is a Victorian registered company; or

(ii)  is a natural person resident in Victoria; or";

(d) after clause 1(da) insert—

"; or

(db) an instalment warrant providing

beneficial ownership in respect of
shares in a Victorian registered

company—";

(e) in exemption (3)—

(i)  after paragraph (a)(iv) insert— "(v) instalment warrants; or";

(ii) after paragraph (b)(iv) insert—

"; or

(v) instalment warrants—";

(f)

in exemption (20) 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

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 25

agreements, arrangements or understandings
that the purchaser will issue shares)".

(2) In the Third Schedule to the Stamps Act 1958 after exemption (20) in Heading IV(A) insert—

"(21) A transfer of the underlying marketable

security to a trustee by reason of the issue of an instalment warrant by a warrant issuer to the applicant or the nominee of the applicant.

(22) A transfer of the underlying marketable security from a trustee to an instalment warrant holder in accordance with the terms

of issue of the instalment warrant.".

25. Sales of sheep and goats

In Heading XVIIA in the Third Schedule to the

Stamps Act 1958—

(a) for "PART XVIIA" substitute "XVIIA";

(b) for "nine cents ($0·09)" substitute "twelve cents ($0·12)".

26.  Consequential amendment of State Taxation (Further Amendment) Act 1995

In section 45 of the State Taxation (Further No. 101/1995.
Amendment) Act 1995 for paragraph (d)
substitute—
'(d) in Heading IV(A) in the Third Schedule, in

clause 1 after "(4AA)" insert "or (5)".'.

_______________
State Taxation (Further Amendment) Act 1998

s. 27 Act No. 103/1998

PART 8—TAXATION ADMINISTRATION ACT 1997

No. 40/1997

as amended 27. Special arrangements may include interest
by Nos
86/1997, After section 41(2)(g) of the Taxation
93/1997, Administration Act 1997 insert—
46/1998,
48/1998 and

"(h) conditions requiring the payment of interest,

calculated at the interest rate determined in
accordance with section 25, on any amounts
of tax that are not paid at the times they are
required to be paid in accordance with the
approval.".

52/1998.

28. Permitted disclosures of information

In section 92(e)(ii) of the Taxation substitute "member of the police force".

29. Objection

After section 96(2) of the Taxation Administration Act 1997 insert— "(3) An applicant under section 25(1) of the

Financial Institutions Duty Act 1982 may lodge a written objection with the Commissioner if the applicant is dissatisfied with a decision of the Commissioner under section 25(3) of that Act not to issue a certificate of approval of an account kept in the name of the applicant as a special account on the ground that the applicant is not a non-bank financial institution within the meaning of paragraph (d), (da), (db) or (dc) of section 25(12) of that Act.

(4) If an applicant lodges an objection under

sub-section (3), the remaining provisions of
this Part apply as if a reference to the
taxpayer were a reference to the applicant.".

State Taxation (Further Amendment) Act 1998

Act No. 103/1998 s. 30

30. Certificate evidence

After section 128(c) of the Taxation
Administration Act 1997 insert—

"(ca) that an amount of tax or interest specified in

the certificate is payable by a person
specified in the certificate in accordance with
a special arrangement approved under

section 39;".

31. Statute law revision

Section 138 of and Schedule 2 to the Taxation

Administration Act 1997 are repealed.

═══════════════
State Taxation (Further Amendment) Act 1998

Notes Act No. 103/1998

NOTES

Minister's second reading speech—

Legislative Assembly: 27 October 1998

Legislative Council: 12 November 1998

The long title for the Bill for this Act was "to amend the Business
Franchise (Petroleum Products) Act 1979, the Financial Institutions
Duty Act 1982, the Land Tax Act 1958, the Liquor Control Act 1987,
the Pay-roll Tax Act 1971, the Stamps Act 1958 and the Taxation
Administration Act 1997 and for other purposes."

Actions
Download as PDF Download as Word Document

Citations
Untitled document

Cases Citing This Decision

0

Cases Cited

0

Statutory Material Cited

0