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State Taxation (Amendment) Act 1998

Act No. 48/1998

TABLE OF PROVISIONS

Section Page
PART 1—PRELIMINARY 1
1. Purpose 1
2. Commencement 2
PART 2—DEBITS TAX ACT 1990 3
3. Exemption as a consequence of branch closures 3
PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982 4
4. Update of reference and repeal of spent provisions 4
5. Statute law revision 4
PART 4—PAY-ROLL TAX ACT 1971 5
6. Victoria includes coastal waters 5
7. Definition of wages expanded 5
8. Wages liable to tax 5
9. Reduction in rate of pay-roll tax 6
PART 5—RACING ACT 1958 7

10.      Abolition of rebates for bookmakers' turnover tax collected at

metropolitan race meetings 7
PART 6—STAMPS ACT 1958 9
11. Family farm exemption 9
12. Pensioners' and first home buyers' exemptions 10
13. Alteration of thresholds for marginal rates of conveyance duty 13
14. Statute law revision 13
PART 7—TAXATION ADMINISTRATION ACT 1997 15
15. New section 108 substituted 15

108.      Must tax be paid before a review or appeal is determined? 15

PART 8—TAXATION (RECIPROCAL POWERS) ACT 1987 16

i

Section Page
16. Definitions 16
17. New section 3A inserted 16
3A. Declared revenue laws 16

═══════════════

NOTES 18

ii

Victoria

No. 48 of 1998

State Taxation (Amendment) Act 1998†

[Assented to 26 May 1998]

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 Pay-roll Tax Act 1971, the Racing

Act 1958, the Stamps Act 1958, the Taxation
Administration Act 1997 and the Taxation
(Reciprocal Powers) Act 1987.

State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 2

2. Commencement

(1) This Act (except sections 3, 6, 8, 10, 12 and 13)

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

(2) Sections 6 and 8 are deemed to have come into operation on 1 January 1998.

(3) Section 13 is deemed to have come into operation on 21 April 1998.

(4) Section 12 comes into operation on 1 July 1998.

(5) Section 3 comes into operation on a day to be

proclaimed.

(6) Subject to sub-section (7), section 10 comes into

operation on a day to be proclaimed.

(7) If section 10 does not come into operation before

1 July 1999, it comes into operation on that day.

_______________
State Taxation (Amendment) Act 1998

s. 3 Act No. 48/1998

PART 2—DEBITS TAX ACT 1990

No. 78/1990. 3. Exemption as a consequence of branch closures
Reprint No. 1
as at 21 June
1995. Further In section 3(1) of the Debits Tax Act 1990, in the
amended by definition of "exempt debit" after paragraph (d)
Nos 10/1996,
40/1997 and insert—
86/1997.

"(da) that is made solely because of the closure of

the account as a result of the closure,
amalgamation or re-structure of the branch
of the financial institution at which the
account is kept; or".

_______________
State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 4

PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982

4. Update of reference and repeal of spent provisions No. 9850.
Reprint No. 3
In the Financial Institutions Duty Act 1982— as at
22 August
1997. Further

(a) in section 3(1), in the definition of "financial institution", for paragraph (q) substitute—

amended by

No. 86/1997.

"(q) Credit Union Services Corporation

(Australia) Limited;";

(b)

in section 38 sub-sections (2) and (3) are repealed.

5. Statute law revision

In the Financial Institutions Duty Act 1982—

(a) in section 3(1), in the definition of "approved superannuation scheme" in paragraph (a) for "employés" where twice occurring

substitute "employees";

(b) in section 23(1)(b) and (c)—

(i) for "employé" (wherever occurring)
substitute "employee";
(ii) for "employés" (wherever occurring)
substitute "employees";

(c) in section 24(1)(b) and (c)—

(i) for "employé" (wherever occurring)
substitute "employee";
(ii) for "employés" (wherever occurring)
substitute "employees";

(d)

in section 25(11)(a) for "bank by which account is kept" substitute "bank with which the account is kept".

_______________
State Taxation (Amendment) Act 1998

s. 6 Act No. 48/1998

PART 4—PAY-ROLL TAX ACT 1971

No. 8154. 6. Victoria includes coastal waters
Reprint No. 6
as at
22 August In section 3(1) of the Pay-roll Tax Act 1971
1997. Further insert the following definitions—
amended by
Nos 80/1997 ' "coastal waters of Victoria" has the same

and 86/1997.

meaning as "coastal waters of the State" has in relation to Victoria in the Coastal Waters (State Powers) Act 1980 of the

Commonwealth;

"Victoria" includes the coastal waters of

Victoria;'.

7. Definition of wages expanded

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

(a) for "employé" (wherever occurring)
substitute "employee";

(b)

in paragraph (c) for "to a director" substitute "to or in relation to a director".

8. Wages liable to tax

(1) In section 6(1)(a) of the Pay-roll Tax Act 1971

for sub-paragraph (ii) substitute—
"(ii) subject to sub-section (1AAA), services

performed or rendered by a person wholly in
another country for a continuous period of
more than 6 months beginning on the day on
which wages were first paid or payable to
that person for services so performed or
rendered; or".

State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 9

(2) After section 6(1) of the Pay-roll Tax Act 1971

insert—

"(1AAA) Wages referred to in sub-section (1)(a)(ii)

are liable to pay-roll tax under this Act
during the period of 6 months beginning on
the day on which wages were first paid or

payable for the relevant services.".

9. Reduction in rate of pay-roll tax

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

(a)

in paragraph (f) after "1997" insert "and before the month of July 1998";

(b) after paragraph (f) insert—

"; and

(g)

at the rate of 6% in respect of such of those wages as are paid or payable after the month of June 1998 and are not liable to pay-roll tax at the rate prescribed in paragraph (c), (d), (e) or (f).".

_______________
State Taxation (Amendment) Act 1998

s. 10 Act No. 48/1998

PART 5—RACING ACT 1958

No. 6353. 10. Abolition of rebates for bookmakers' turnover tax
Reprint No. 10
as at collected at metropolitan race meetings
22 August
1997. Further (1) In section 119 of the Racing Act 1958—
amended by
No. 93/1997. (a) paragraphs (a) and (b) are repealed;

(b)

in paragraph (c) for ", other than harness race-meetings referred to in paragraph (b)" substitute "held at a race-course more than 32 kilometres from the General Post Office, Melbourne";

(c) in paragraph (e)—

(i) sub-paragraph (i) is repealed;

(ii)  in sub-paragraph (ii) for "other than those referred to in sub-paragraph (i)" substitute "held at a race-course more than 32 kilometres from the General Post Office, Melbourne";

(d) for paragraph (f) substitute— "(f) to the Victorian Country Racing

Council Inc an amount equal to twenty- nine seventieths of the amount in that year paid to the Commissioner of State Revenue by way of stamp duty on bookmakers' statements in respect of bets made at horse race-meetings held at a race-course more than 32 kilometres from the General Post Office, Melbourne.".

(2) At the end of section 119 of the Racing Act 1958

insert—
"(2) Despite anything to the contrary in section

10(1) of the State Taxation (Amendment)

State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 10

Act 1998, this section as in force immediately before the commencement of that section continues to apply with respect to amounts paid to the Commissioner of State Revenue by way of stamp duty on bookmakers' statements in respect of bets made at race-meetings held before the commencement of that section.".

_______________
State Taxation (Amendment) Act 1998

s. 11 Act No. 48/1998

PART 6—STAMPS ACT 1958

No. 6375. 11. Family farm exemption
Reprint No. 14
as at
1 September In section 71 of the Stamps Act 1958—
1997. Further
amended by (a) in sub-section (1)—

No. 86/1997.

(i)

for "This section applies to an instrument of conveyance of real property that is a single farming enterprise" substitute "This section applies to an instrument of conveyance executed on or after 2 December 1997 of real property that is land referred to in section 9(1)(ga), (h) or (ha) of the Land Tax Act 1958";

(ii)

in paragraph (b) for sub-paragraph (iii) "(iii) a trustee under a discretionary

trust the terms of which do not
allow the distribution of the whole
or any part of the capital of the
trust that comprises land referred
to in section 9(1)(ga), (h) or (ha)
of the Land Tax Act 1958 to any
person or body other than a person
or body referred to in sub-

paragraph (ii).";

(b)

sub-sections (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15) are repealed;

(c)

in sub-section (16), the definitions of "business of primary production" and "single farming enterprise" are repealed.

State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 12

12. Pensioners' and first home buyers' exemptions

(1) In section 71A of the Stamps Act 1958—

(a) in sub-section (3B)(c) for "$100 000" substitute "$130 000";
(b) in sub-section (4)(b) for "$70 000" substitute "$100 000";
(c)

in sub-section (5) for paragraph (b) "(b) the value of the real property exceeds

$100 000 but does not exceed

$130 000—";

(d)

in sub-section (5) for the formula substitute—

"28 600 22 P

3           300";

(e) in sub-section (6)(b) for "$70 000" substitute "$100 000";
(f)

in sub-section (7) for paragraph (b) "(b) the aggregate of the value of the real

property at the time the conveyance
was made and the cost of the
construction of the dwelling exceeds
$100 000 but does not exceed

$115 000—";

(g) in sub-section (7) for the formula

substitute—

"SD 22(130 000 P)

×

7 2 P ⋅ − 60 000".

(2) After section 71A(7) of the Stamps Act 1958

insert—

State Taxation (Amendment) Act 1998

s. 12 Act No. 48/1998

"(8) Where, in relation to an instrument of

conveyance of real property on which at the
time the conveyance was made there was not
a dwelling but on which at the date of the
application to the Comptroller of Stamps

under this section there is a dwelling—

(a)

the transferee is an eligible person for the purposes of this section; and

(b)

the aggregate of the value of the real property at the time the conveyance was made and the cost of the

construction of the dwelling exceeds
$115 000 but does not exceed
$130 000——

the transferee may make application in
writing to the Comptroller of Stamps for an
amount, by way of refund of or exemption
from stamp duty paid or payable on the
conveyance, calculated in accordance with

the formula—

SD 11(130 000 P)

×

3(3P 217 000)

where—

(c)

SD is the amount of stamp duty paid or payable (but for this sub-section) on the instrument of conveyance;

(d)

P is the amount that is the aggregate of the value of the real property at the time the conveyance was made and the cost of the construction of the dwelling.".

(3) In section 71B of the Stamps Act 1958—

(a)

in sub-section (3)(g) for "$150 000" substitute "$165 000";

State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 12
(b) in sub-section (4)(b) for "$100 000" substitute "$115 000";
(c)

in sub-section (5) for paragraph (b) "(b) the value of the real property exceeds

$115 000 but is less than $165 000—";

(d)

in sub-section (5) for the formula substitute—

256 P

"8448

5000";

(e)

in sub-section (6) for paragraph (d) "(d) the value of the real property exceeds

$115 000 but is less than $165 000—";

(f)

in sub-section (6) for the formula substitute—

256(165 000 P)
"SD ×
100(3P 217 000)";
(g) in sub-section (7)(b) for "$100 000" substitute "$115 000";
(h)

in sub-section (8) for paragraph (b) "(b) the aggregate of the value of the real

property at the time the conveyance
was made and the cost of the
construction of the dwelling exceeds
$115 000 but is less than $165 000—";

(i)  in sub-section (8) for the formula substitute—

256(165 000 P)
"SD ×
100(3 P 217 000)".

State Taxation (Amendment) Act 1998

s. 13

s. 14 Act No. 48/1998

(4) Sections 71A and 71B of the Stamps Act 1958, as in force immediately before the commencement of this section, continue to apply to a conveyance

executed on or after that commencement as a result of an agreement entered into before that commencement.

13.  Alteration of thresholds for marginal rates of conveyance duty

(1) In the Third Schedule to the Stamps Act 1958, for the Table under Heading VI substitute—

"THE TABLE

Item Column 1 Column 2 Column 3
1 $0 $20 000 1·40% of the value
of the property
2 $20 001 $115 000 $280 and 2·40% of
that part of the
value of the
property that
exceeds $20 000

3

$115 001

$870 000

$2560 and 6·00% of that part of the value of the

property that
exceeds $115 000

4

$870 001

5·5% of the value of the property".

(2) The Table under Heading VI in the Third

Schedule to the Stamps Act 1958, as in force immediately before the commencement of this section, continues to apply to a transfer or other
instrument executed or made on or after that
commencement as a result of an agreement

entered into before that commencement.

14. Statute law revision

State Taxation (Amendment) Act 1998
Act No. 48/1998

In section 112 of the Stamps Act 1958, in the definition of "bookmaker" for "employé" substitute "employee".

_______________
State Taxation (Amendment) Act 1998

s. 15 Act No. 48/1998

PART 7—TAXATION ADMINISTRATION ACT 1997

No. 40/1997

as amended 15. New section 108 substituted
by Nos
86/1997 and For section 108 of the Taxation Administration
93/1997. Act 1997 substitute—

"108. Must tax be paid before a review or appeal

is determined?

(1) A taxpayer may make a request under section 106(1) for a review or appeal whether or not the tax to which it relates has

been paid.

(2) If a taxpayer makes a request before the tax has been paid, the Commissioner may apply to the Supreme Court for an order that the

tax, or a specified part of it, be paid before
the review or appeal proceed.

(3) On an application under sub-section (2), the Supreme Court may order that the review or appeal not proceed until the tax, or a

specified part of it, is paid.

(4) The Supreme Court may make an order

under sub-section (3) only if satisfied that it is reasonably likely that, unless the order is made, any tax payable by the taxpayer in
accordance with the determination of the
review or appeal would not be paid within

the period within which it is payable.".

_______________
State Taxation (Amendment) Act 1998

Act No. 48/1998 s. 16

PART 8—TAXATION (RECIPROCAL POWERS) ACT 1987

16. Definitions

No. 37/1987. Reprint No. 1

In section 3(1) of the Taxation (Reciprocal as at 19 September

Powers) Act 1987—

1996. Further amended by

(a) for the definition of "State Commissioner"

Nos 31/1997, 36/1997 and

substitute— 40/1997.
' "State Commissioner" means

Commissioner of State Revenue under
the Taxation Administration Act

1997;'.

17. New section 3A inserted

After section 3 of the Taxation (Reciprocal
Powers) Act 1987 insert—

"3A. Declared revenue laws

(1) The Governor in Council may, by Order

published in the Government Gazette,

declare—

(a) a law of the Commonwealth or of another State or a Territory that is a revenue law within the meaning of an Act of the Commonwealth, the other State or the Territory corresponding to this Act to be a declared revenue law for the purposes of this Act; and
(b) an office under a law of the Commonwealth, the other State or the Territory to be a declared office in relation to that revenue law.

(2) This Act has effect in relation to a declared revenue law as if—

(a)

a reference in this Act to the State Commissioner under a State Taxation

State Taxation (Amendment) Act 1998

s. 17 Act No. 48/1998
Act were a reference to the State
Commissioner; and

(b)

a reference in this Act to a Corresponding Commissioner were a reference to the holder of the declared office in relation to the declared revenue law; and

(c)

a reference in this Act to a corresponding law were a reference to the declared revenue law.".

═══════════════

State Taxation (Amendment) Act 1998

Act No. 48/1998 Notes

NOTES

Minister's second reading speech—

Legislative Assembly: 23 April 1998

Legislative Council: 14 May 1998

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

Administration Act 1997 and the Taxation (Reciprocal Powers) Act
1987 and for other purposes."

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