+ All Categories
Home > Documents > State Taxation Legislation (Further Amendment) … No. 30/2002 State Taxation Legislation (Further...

State Taxation Legislation (Further Amendment) … No. 30/2002 State Taxation Legislation (Further...

Date post: 07-Mar-2018
Category:
Upload: doantuong
View: 219 times
Download: 0 times
Share this document with a friend
22
i State Taxation Legislation (Further Amendment) Act 2002 Act No. 30/2002 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 2 PART 2—DUTIES ACT 2000 3 3. Definitions 3 4. Dutiable transactions and dutiable property 6 5. No double duty 6 6. Aggregation of dutiable transactions 7 7. Trust exemptions 8 8. Mortgage duty 8 9. Motor vehicle duty 9 10. New section 217A inserted 11 217A. Assessment of duty 11 11. Repeal of registered used car dealer provisions 12 12. Refund of motor vehicle duty 12 13. Transitional provisions—mortgage duty 12 14. Transitional provisions—motor vehicle duty 13 11. Provisions relating to Chapter 9 (Motor vehicle duty) 13 15. Transitional provisions—refunds 13 17. State Taxation Legislation (Further Amendment) Act 2002 13 PART 3—LAND TAX ACT 1958 14 16. New method for determining the unimproved value of land for land tax purposes 14 17. Exemption of land used for agricultural shows and similar activities 16 18. Consequential amendment of Subordinate Legislation Act 1994 17
Transcript

i

State Taxation Legislation (Further Amendment) Act 2002

Act No. 30/2002

TABLE OF PROVISIONS

Section Page

PART 1—PRELIMINARY 1

1. Purpose 1 2. Commencement 2

PART 2—DUTIES ACT 2000 3

3. Definitions 3 4. Dutiable transactions and dutiable property 6 5. No double duty 6 6. Aggregation of dutiable transactions 7 7. Trust exemptions 8 8. Mortgage duty 8 9. Motor vehicle duty 9 10. New section 217A inserted 11

217A. Assessment of duty 11 11. Repeal of registered used car dealer provisions 12 12. Refund of motor vehicle duty 12 13. Transitional provisions—mortgage duty 12 14. Transitional provisions—motor vehicle duty 13

11. Provisions relating to Chapter 9 (Motor vehicle duty) 13 15. Transitional provisions—refunds 13

17. State Taxation Legislation (Further Amendment) Act 2002 13

PART 3—LAND TAX ACT 1958 14

16. New method for determining the unimproved value of land for land tax purposes 14

17. Exemption of land used for agricultural shows and similar activities 16

18. Consequential amendment of Subordinate Legislation Act 1994 17

Section Page

ii

PART 4—PAY-ROLL TAX ACT 1971 18

19. Exemption for schools 18 20. Statute law revision 19

═══════════════

ENDNOTES 20

1

State Taxation Legislation (Further

Amendment) Act 2002† [Assented to 12 June 2002]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose The main purpose of this Act is—

(a) to amend the Duties Act 2000—

(i) with respect to dutiable transactions, exemptions for trusts and mortgage duty;

Victoria

No. 30 of 2002

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

2

(ii) to revise motor vehicle duty, including the repeal of provisions for registration of used car dealers;

(b) to amend the Land Tax Act 1958—

(i) to discontinue the use of equalization factors and introduce a new method for determining the value of land for land tax purposes;

(ii) to exempt land used for agricultural shows and similar activities;

(c) to amend the Pay-roll Tax Act 1971 with respect to the exemption for wages paid by schools.

2. Commencement (1) This Part, Part 3 (other than section 17) and

sections 6, 7(1), 8(1) and (2) and 15 come into operation on the day after the day on which this Act receives the Royal Assent.

(2) Sections 3(1) and (3), 4, 5, 7(2), 8(3) and 13 are deemed to have come into operation on 1 July 2001.

(3) Section 17 is deemed to have come into operation on 1 January 2002.

(4) The remaining provisions of this Act come into operation on 1 July 2002.

__________________

s. 2

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

3

PART 2—DUTIES ACT 2000

3. Definitions (1) In section 3(1) of the Duties Act 2000—

(a) for the definition of "mortgage-backed security" substitute—

' "mortgage-backed security" means—

(a) an interest in a trust that entitles the holder of or beneficial owner under the interest—

(i) to the whole or any part of the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a mortgage or any money payable by the mortgagor under the mortgage (whether the money is payable to the holder of or beneficial owner under the interest on the same terms and conditions as under the mortgage or not); or

(ii) to the whole or any part of the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a pool of mortgages or any money payable by mortgagors under those mortgages (whether the money is payable to the holder of or beneficial owner under the interest on the same terms and conditions as

See: Act No. 79/2000. Reprint No. 1 as at 15 July 2001 and amending Act Nos 27/2001, 48/2001 and 79/2001. LawToday: www.dms. dpc.vic. gov.au

s. 3

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

4

under the mortgages or not); or

(iii) to payments that are derived substantially or, if the regulations prescribe the extent, to the prescribed extent, from the income or receipts of a pool of mortgages—

and that may, in addition, entitle the holder or beneficial owner to a transfer or assignment of the mortgage or mortgages; or

(b) a debt security (whether or not in writing) the payments under which by the person who issues or makes the debt security are derived substantially or, if the regulations prescribe the extent, to the prescribed extent, from the income or receipts of a pool of mortgages; or

(c) any of the following—

(i) an interest in a trust creating, conferring or comprising a right or interest (whether described as a unit, bond or otherwise) of or on a beneficiary in a scheme under which any profit or income in which the beneficiaries participate arises from the acquisition, holding, management or disposal of prescribed property, or any instrument

s. 3

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

5

that evidences such a right or interest;

(ii) a security (whether or not in writing) the payments under which by the person who issues or makes the security are derived substantially from the income or receipts of prescribed property;

(iii) an interest in a trust, a debt security (whether or not in writing), an instrument or property that creates an interest in or charge over an interest in a trust, a debt security (whether or not in writing) or other instrument or property, to which paragraph (a) or (b) or sub-paragraph (i) or (ii) of this paragraph applies—

but does not include an instrument or property comprising—

(d) a mortgage; or

(e) the transfer of a mortgage; or

(f) a declaration of trust; or

(g) an instrument of a class or description of instruments, or property of a class or description of property, prescribed not to be a mortgage-backed security for the purposes of this definition;';

s. 3

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

6

(b) after the definition of "premium" insert—

' "prescribed property" means any of the following—

(a) cash;

(b) investments of a kind referred to in section 4(1)(a), (b), (c), (d), (e), (f), (g), (h), (i), (ia), (j), (k) or (o) of the Trustee Act 1958 as in force immediately before the commencement of section 4 of the Trustee and Trustee Companies (Amendment) Act 1995;'.

(2) In section 3(1) of the Duties Act 2000, the definition of "registered used car dealer" is repealed.

(3) In section 3(2) of the Duties Act 2000, paragraphs (a), (b) and (c) are repealed.

4. Dutiable transactions and dutiable property In the Duties Act 2000—

(a) in section 7(1)(b)(vi), for "an estate in land" substitute "dutiable property";

(b) in section 10(1)(d), for "held or used in connection with a dutiable transaction in respect of any estate in land" substitute ", if the subject of an arrangement that includes a dutiable transaction over an estate in land";

(c) in section 11, sub-section (2) is repealed.

5. No double duty At the end of section 17 of the Duties Act 2000 insert—

"(2) No duty is chargeable under this Chapter on a transfer to a trustee of dutiable property subject to a declaration of trust if ad valorem

s. 4

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

7

duty has been paid on the declaration of trust in respect of the same dutiable property.

(3) No duty is chargeable under this Chapter on a declaration of trust that declares the same trusts as those upon and subject to which the same dutiable property was transferred to the person declaring the trust if ad valorem duty has been paid on the transfer.".

6. Aggregation of dutiable transactions (1) In section 24(1) of the Duties Act 2000—

(a) for paragraph (a) substitute—

"(a) either—

(i) in the case of dutiable transactions that are transfers on a sale of an item or part of dutiable property—the contracts of sale are entered into within 12 months; or

(ii) in any other case—the dutiable transactions occur within 12 months; and";

(b) paragraph (b) is repealed.

(2) In section 24 of the Duties Act 2000, for sub-section (3) substitute—

"(3) The dutiable value of aggregated dutiable property is the sum of the dutiable values of the items or parts of the dutiable property as at—

(a) in the case of a transfer on a sale of the item or part—the time the contract of sale was entered into;

(b) in any other case—the time the dutiable transaction relating to the item or part occurred.".

s. 6

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

8

7. Trust exemptions (1) In section 33(2) of the Duties Act 2000, after

"special trustee" insert "solely".

(2) In section 34(1) of the Duties Act 2000—

(a) in paragraph (a)—

(i) after "identified dutiable property" insert "or marketable securities referred to in section 10(2)";

(ii) in sub-paragraphs (i) and (ii), after "dutiable property" insert "or marketable securities";

(b) for paragraph (b) substitute—

"(b) a transfer of dutiable property or marketable securities referred to in section 10(2) from an apparent purchaser to the real purchaser in a case where dutiable property or marketable securities are vested in an apparent purchaser upon trust for the real purchaser who provided the money for the purchase of the dutiable property or marketable securities.".

8. Mortgage duty (1) In section 152 of the Duties Act 2000, after sub-

section (4) insert—

"(5) A reference in sub-section (3) to land does not include a reference to an interest in land that is held by way of security.".

s. 7

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

9

(2) At the end of section 165 of the Duties Act 2000 insert—

"(2) A collateral mortgage that no longer secures an amount secured by a mortgage, instrument or mortgage package mentioned in sub-section (1) is not security for another advance unless mortgage duty for the amount of the other advance is paid.".

(3) In section 166(1) of the Duties Act 2000, for "an earlier duly stamped mortgage to the same borrower" substitute "an earlier mortgage to the same borrower duly stamped under this or a corresponding Act".

9. Motor vehicle duty (1) In section 215 of the Duties Act 2000, for sub-

section (2) substitute—

"(2) A person who knowingly states in a statement of dutiable value a value that is less than the dutiable value of the motor vehicle is liable to a penalty of an amount equal to double the difference between the amount of duty payable on the correct dutiable value and the amount of duty paid.

(3) The penalty imposed by sub-section (2) is in addition to any penalty tax and interest payable under the Taxation Administration Act 1997.

(4) Section 52 of the Taxation Administration Act 1997 does not apply to the statement of dutiable value.

(5) The Commissioner, in such circumstances as the Commissioner considers appropriate, may remit the penalty imposed by sub-section (2) by any amount.".

s. 9

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

10

(2) In section 216 of the Duties Act 2000, for sub-section (2) substitute—

"(2) Duty on an application for transfer of registration of a motor vehicle is payable—

(a) in the case of a vehicle acquired from a licensed motor car trader—by the acquirer and the licensed motor car trader, who are jointly and severally liable to pay the duty;

(b) in any other case—by the acquirer of the vehicle.".

(3) In section 216(3) of the Duties Act 2000—

(a) in paragraph (a), for "registered used car dealer" substitute "licensed motor car trader";

(b) in paragraph (b), for "dealer" substitute "trader".

(4) In section 216 of the Duties Act 2000, after sub-section (3) insert—

"(4) A person referred to in sub-section (3) is entitled to a refund of any amount paid to the licensed motor car trader in respect of duty that is in excess of the amount of duty chargeable under this Chapter on the application for transfer of registration of the vehicle to the person.".

(5) At the end of section 217 of the Duties Act 2000 insert—

"(2) If duty chargeable under this Chapter on an application for transfer of registration of a motor vehicle is not paid on or before the making or lodging of the application, the

s. 9

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

11

person required by law to make or lodge the application is liable to a penalty of—

(a) an amount equal to the amount of duty chargeable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was made or lodged; or

(b) $25—

whichever is the greater.

(3) The penalty imposed by sub-section (2) is in addition to any penalty tax and interest payable under the Taxation Administration Act 1997.

(4) The Commissioner, in such circumstances as the Commissioner considers appropriate, may remit the penalty imposed by sub-section (2) by any amount.".

10. New section 217A inserted After section 217 of the Duties Act 2000 insert—

"217A. Assessment of duty (1) On the making or lodging of an application

for registration or transfer of registration of a motor vehicle—

(a) the Commissioner is taken to have made an assessment of duty on the application; and

(b) the application is taken to be a notice of assessment of the duty; and

(c) the Commissioner is taken to have served the notice of assessment on the person who is liable to pay the duty.

(2) The liability for duty on the application is the amount worked out by applying the rate of

s. 10

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

12

duty to the dutiable value of the vehicle as at the date of the application.".

11. Repeal of registered used car dealer provisions In the Duties Act 2000—

(a) in Chapter 9, Part 2 is repealed;

(b) insert the following heading to section 230—

"Special dealers—trading stock, demonstrator vehicles and driver education";

(c) in section 230, for "registered used car dealer" (where twice occurring) substitute "special dealer";

(d) in section 231, after "registration" (where twice occurring) insert "or transfer of registration".

12. Refund of motor vehicle duty In section 240(1) of the Duties Act 2000, after paragraph (c)(iii) insert—

"; or

(d) after the duty is paid the application is found—

(i) to be void in law from the beginning; or

(ii) to have been made in error.".

13. Transitional provisions—mortgage duty In clause 9 of Schedule 2 to the Duties Act 2000, after sub-clause (5) insert—

"(6) Sub-clause (4) does not apply to the extent that duty has been paid under a corresponding Act on an amount to which that sub-clause would otherwise apply.".

s. 11

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

13

14. Transitional provisions—motor vehicle duty In Schedule 2 to the Duties Act 2000, for clause 11 substitute—

"11. Provisions relating to Chapter 9 (Motor vehicle duty)

The amendments made to Chapter 9 by sections 9 and 10 of the State Taxation Legislation (Further Amendment) Act 2002 apply with respect to applications for registration or transfer of registration of motor vehicles made or lodged on or after 1 July 2002.".

15. Transitional provisions—refunds In Schedule 2 to the Duties Act 2000, after clause 16 insert—

"17. State Taxation Legislation (Further Amendment) Act 2002

A person is entitled to a refund of any amount paid as duty before the commencement of section 15 of the State Taxation Legislation (Further Amendment) Act 2002 that was not payable under this Act as amended by sections 3(1) and (3), 4, 5, 7(2), 8(3) and 13 of that Act.".

__________________

s. 14

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

14

PART 3—LAND TAX ACT 1958

16. New method for determining the unimproved value of land for land tax purposes

(1) In section 3 of the Land Tax Act 1958—

(a) in sub-section (1), insert the following definitions—

' "applicable general valuation", in relation to a tax year, means the last general valuation returned to the municipal council before 1 January in the year immediately preceding the tax year;

"return date", in relation to a valuation, is the date on which that valuation is returned to the municipal council by the person who carried out that valuation;

"site value" has the same meaning as in the Valuation of Land Act 1960;

"subsequent general valuation", in relation to a tax year, means a general valuation returned to the municipal council after the applicable general valuation for that tax year but before 1 January in the tax year;

"supplementary valuation" means a valuation which is made under section 13DF of the Valuation of Land Act 1960 and is supplementary to the last general valuation returned to the municipal council before 1 January in the year immediately preceding the tax year;

"tax year" means a year for which tax is being assessed;';

See: Act No. 6289/1958. Reprint No. 11 as at 18 October 2001 and amending Act No. 79/2001. LawToday: www.dms. dpc.vic. gov.au

s. 16

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

15

(b) in sub-section (2)(a), before "the unimproved value" insert "in respect of any tax year up to and including 2002,";

(c) in sub-section (2), after paragraph (a) insert—

"(ab) in respect of any tax year after 2002—

(i) if the applicable general valuation has not been used for the purposes of assessing tax in a previous year, the unimproved value of any land is an amount equal to the site value of the land as at the relevant date;

(ii) if the applicable general valuation has been used for the purposes of assessing tax in a previous year, the unimproved value of any land is an amount equal to the site value of the land as at the relevant date multiplied by the prescribed indexation factor (if any) applying to the land for the tax year;".

(2) In section 3 of the Land Tax Act 1958, after sub-section (2A) insert—

"(3) For the purposes of sub-section (2)(ab)(ii), the prescribed indexation factor for land within an area is the factor (if any) prescribed by the regulations for land within that area for the tax year, being a factor determined by the Valuer-General that in his or her opinion reflects half the aggregate movement in the site value of land classified residential, commercial or industrial within that area between the applicable general valuation and the subsequent general valuation.

s. 16

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

16

(3A) In determining a factor for the purposes of sub-section (3), the Valuer -General is to disregard the value of land that is exempt from land tax as a principal place of residence.

(3B) For the purposes of sub-section (3A), the Valuer-General may rely on any information provided to him or her by the Commissioner.".

(3) In section 3 of the Land Tax Act 1958—

(a) in sub-section (4), after "subsequent year" insert "up to and including the year commencing on 1 January 2002";

(b) sub-section (6) is repealed.

17. Exemption of land used for agricultural shows and similar activities

In section 9(1) of the Land Tax Act 1958, after paragraph (f) insert—

"(fa) land which—

(i) is vested in, or held in trust for, a body (whether incorporated or not) established for the purposes of conducting agricultural shows, farm machinery field days or activities of a similar nature that is not carried on for the purposes of profit or gain to its individual members; and

(ii) is used for the purposes of the body;".

s. 17

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

17

18. Consequential amendment of Subordinate Legislation Act 1994

In section 8(1)(c) of the Subordinate Legislation Act 1994, for "equalisation factor for the purposes" substitute "indexation factor for the purposes of section 3(2)(ab)(ii)".

__________________

s. 18

See: Act No. 104/1994. Reprint No. 1 as at 12 June 1997 and amending Act Nos 46/1998, 74/2000, 98/2000 and 2/2001. LawToday: www.dms. dpc.vic. gov.au

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

18

PART 4—PAY-ROLL TAX ACT 1971

19. Exemption for schools In section 10(1) of the Pay-roll Tax Act 1971—

(a) for paragraph (da) substitute—

"(da) by a school or college that—

(i) is carried on by a body corporate, society or association otherwise than for the purpose of profit or gain to the individual members of the body corporate, society or association and is not carried on by or on behalf of the State of Victoria; and

(ii) provides education predominantly at or below the secondary level of education and to students, the majority of whom are aged under 19 years of age; and

(iii) was in existence as such a school or college before 27 May 1997—

being wages paid or payable to a person in relation to the provision of education at or below the secondary level of education;";

(b) after paragraph (da) insert—

"(daa) by a school or college within the meaning of paragraph (da) as in force immediately before the commencement of section 19(a) of the State Taxation Legislation (Further Amendment) Act 2002, being wages referred to in that paragraph;";

See: Act No. 8154/1971. Reprint No. 8 as at 15 July 2001 and amending Act No. 82/2001. LawToday: www.dms. dpc.vic. gov.au

s. 19

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

19

(c) in paragraph (db), after "paragraph (da)" insert "or (daa)".

20. Statute law revision In section 9A(3A)(j) of the Pay-roll Tax Act 1971, in paragraph (a) of the substituted section 11B(2), for "under section 19" substitute "otherwise than under this section".

═══════════════

s. 20

Act No. 30/2002

State Taxation Legislation (Further Amendment) Act 2002

20

ENDNOTES

† Minister's second reading speech—

Legislative Assembly: 18 April 2002

Legislative Council: 28 May 2002

The long title for the Bill for this Act was "to make further miscellaneous amendments to the Duties Act 2000, the Land Tax Act 1958 and the Pay-roll Tax Act 1971 and for other purposes."

Endnotes


Recommended