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State Taxation and Other Acts Amendment Act 2016

No. 40 of 2016

TABLE OF PROVISIONSSection Page

Part 1—Preliminary 1

1 Purposes 12 Commencement 3

Part 2—Amendment of the Duties Act 2000 4

3 Definitions 44 New section 3G inserted 55 Foreign purchasers—duty in respect of change of use of land 96 Rate for additional duty chargeable for foreign purchasers—

residential property 107 Transactions treated as sub-sales of land—repeal of definition 108 New sections 277 and 278 inserted 109 New clauses 34 to 39 inserted in Schedule 2 1110 Statute law revision 15

Part 3—Amendment of the Fire Services Property Levy Act 2012 16

Division 1—Exemption and concessions 16

11 Single farm enterprise exemption 1612 Concessions 17

Division 2—Consumer price index adjustment 18

13 CPI adjusted fixed charge 18

Part 4—Amendment of the First Home Owner Grant Act 2000 20

14 Power to recover amount paid in error etc. 2015 Insertion of Division headings in Part 4 2016 New sections 49B to 49G inserted 2117 Protection of confidential information 26

Part 5—Amendment of the Land Tax Act 2005 27

18 Definitions 2719 Absentee controlling interest 2820 What is the rate of land tax? 2921 Land tax surcharge for absentee trusts 29

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22 Land tax for absentee fixed trust if beneficial interests notified to Commissioner 29

23 Land tax for absentee unit trust scheme if unitholdings notified to Commissioner 30

24 Land tax for beneficiary/trustees 3025 Land tax surcharge for related absentee corporations 3626 Exemption of primary production land in an urban zone in

greater Melbourne 3627 Rate of land tax on land held by absentee owners for 2016 3628 New clause 4.2 of Schedule 1 inserted 3729 Rate of land tax on land held by owner subject to an absentee

trust for 2016 3830 New clause 5.2 of Schedule 1 inserted 38

Part 6—Amendment of the Mineral Resources (Sustainable Development) Act 1990 40

31 Royalties for lignite 40

Part 7—Amendment of the Payroll Tax Act 2007 42

Division 1—Threshold amounts and deductible amounts 42

32 Designated group employers 4233 Registration 4234 Amendment of Schedule 1 4335 Definitions in Schedule 1 4336 New Division 1AA of Part 2 of Schedule 2 inserted 4437 Deductible amount for employer who does not pay interstate

wages 4438 Deductible amount for employer who pays interstate wages 4439 Deductible amount for groups that do not pay interstate wages 4540 Deductible amount for groups that pay interstate wages 45

Division 2—Exemption for apprentices and trainees 45

41 Amounts taken to be wages 4542 Definitions in Schedule 2 4543 New clause 16A inserted in Schedule 2 46

Part 8—Amendment of the Planning and Environment Act 1987 48

Division 1—Consumer price index adjustments 48

44 CPI adjusted amount 4845 Indexation of threshold amount for excluded building work 4946 Maximum adjusted growth areas infrastructure contribution 5147 Adjusted deferred amount of growth areas infrastructure

contribution 52

Division 2—Statute law revision 54

48 Statute law revision 54

Part 9—Amendment of the State Taxation Acts Further Amendment Act 2015 55

49 New clauses 13A and 13B inserted in Schedule 2 5550 Clause 16 of Schedule 2 substituted 55

Part 10—Amendment of the Taxation Administration Act 1997 56

51 What happens if Commissioner refuses a refund? 5652 Permitted disclosures to particular persons or for particular

purposes 56

Part 11—Repeal of amending Act 57

53 Repeal of amending Act 57═══════════════

Endnotes 58

1 General information 58

State Taxation and Other Acts Amendment Act 2016†

No. 40 of 2016

[Assented to 28 June 2016]

The Parliament of Victoria enacts:

Part 1—Preliminary1 Purposes

The main purposes of this Act are—

(a) to amend the Duties Act 2000 in relation to foreign purchasers; and

Victoria

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(b) to amend the Fire Services Property Levy Act 2012—

(i) to clarify the scope of the single farm enterprise exemption; and

(ii) to insert references to certain concession cards that entitle the holder to a discount on the fire services property levy; and

(iii) to clarify the methodology for the indexation of the fixed charge determined under that Act; and

(c) to amend the First Home Owner Grant Act 2000—

(i) to empower the Commissioner to recover from third parties amounts owed by applicants and former applicants; and

(ii) in relation to the service of certain documents; and

(iii) to permit the disclosure of certain information to the Ombudsman; and

(d) to amend the Land Tax Act 2005—

(i) in relation to the absentee owner surcharge; and

(ii) in relation to the primary production land exemption; and

(e) to amend the Mineral Resources (Sustainable Development) Act 1990 to provide for a threefold increase in the rate for royalties for lignite; and

Section Page

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(f) to amend the Payroll Tax Act 2007—

(i) to increase the wages threshold under that Act and make consequential amendments; and

(ii) to provide a new exemption for wages paid or payable to an apprentice or trainee who resumes an apprenticeship or traineeship with a different employer; and

(g) to amend the Planning and Environment Act 1987 to clarify the methodology for the indexation of certain amounts under that Act; and

(h) to amend the State Taxation Acts Further Amendment Act 2015 to make miscellaneous amendments to that Act; and

(i) to amend the Taxation Administration Act 1997 in relation to refunds and to permit the disclosure of certain information to Councils in certain circumstances.

2 Commencement

(1) This Act (except Part 2, Division 1 of Part 3, sections 13 and 20, Part 7 and sections 44 to 47) comes into operation on the day after the day on which it receives the Royal Assent.

(2) Sections 13, 45, 46 and 47 are taken to have come into operation on 30 June 2014.

(3) Section 20 comes into operation on 1 January 2017.

(4) Section 44 is taken to have come into operation on 1 July 2015.

(5) Part 2, Division 1 of Part 3, and Part 7 come into operation on 1 July 2016.

Section Page

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Part 2—Amendment of the Duties Act 20003 Definitions

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

(a) insert the following definition—

"land development, in relation to land, means any one or more of the following—

(a) preparing a plan of subdivision of the land or taking any steps to have the plan registered under the Subdivision Act 1988;

(b) applying for or obtaining a permit under the Planning and Environment Act 1987 in relation to the use or development of the land;

(c) requesting under the Planning and Environment Act 1987 a planning authority to prepare an amendment to a planning scheme that would affect the land;

(d) applying for or obtaining a permit or approval under the Building Act 1993 in relation to the land;

(e) doing anything in relation to the land for which a permit or approval referred to in paragraph (d) would be required;

(f) developing or changing the land in any other way that would lead to the enhancement of its value;";

Part 11—Repeal of amending Act

State Taxation and Other Acts Amendment Act 2016No. 40 of 2016

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(b) for the definition of residential property substitute—

"residential property has the meaning given by section 3G;".

4 New section 3G inserted

After section 3F of the Duties Act 2000 insert—

"3G What is residential property?

(1) Residential property is—

(a) land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way; or

(b) land which includes a building, or part of a building, that a person intends to refurbish or extend so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way; or

(c) land—

(i) on which a person intends to construct a building so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way; or

(ii) in respect of which a person has undertaken or intends to undertake land development for the purposes of—

(A) constructing a building so the land is capable of being used solely or primarily for residential purposes and may



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lawfully be used in that way; or

(B) enabling another person to construct a building so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way.

(2) Despite subsection (1), residential property does not include any of the following—

(a) land—

(i) capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; and

(ii) that a person intends to use solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village;

(b) land which includes a building, or part of a building, that a person intends to refurbish or extend so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way;



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(c) land—

(i) on which a person intends to construct a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; or

(ii) in respect of which a person has undertaken or intends to undertake land development for the purposes of—

(A) constructing a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; or

(B) enabling another person to construct a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way.



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(3) In this section—

commercial residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;

refurbish means to undertake building work that requires a building permit to be issued under the Building Act 1993 for the conversion of an existing building;

residential care facility has the same meaning as in section 76 of the Land Tax Act 2005;

retirement village has the same meaning as in the Retirement Villages Act 1986;

supported residential service has the same meaning as in the Supported Residential Services (Private Proprietors) Act 2010.

Examples

1 A person purchases a fee simple interest in land on which there is a free standing home that was designed and constructed as a residence. The land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way. The person has acquired a land-related interest in residential property.

2 A person purchases a fee simple interest in a warehouse that was designed and constructed for industrial purposes. The person purchases the interest with the intention of refurbishing the warehouse into residential apartments. At the time of purchase, the land is not capable of being used solely or primarily for residential purposes and may not lawfully be used in that way. However, the person has acquired a land-related interest in residential property.



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3 A person purchases a fee simple interest in an apartment on the tenth floor of a building. The premises on the ground floor of the building were designed and constructed as shops. The person has acquired a land-related interest in residential property because the person has purchased an interest in land that is capable of being used solely or primarily for residential purposes and may lawfully be used in that way.".

5 Foreign purchasers—duty in respect of change of use of land

(1) For section 18A(1)(b) of the Duties Act 2000 substitute—

"(b) after the land-related interest is transferred, it becomes a land-related interest in residential property when the foreign purchaser forms an intention referred to in section 3G(1)(b) or (c).".

(2) For section 18A(3) of the Duties Act 2000 substitute—

"(3) Within 30 days after the foreign purchaser forms the intention, the foreign purchaser must pay duty in relation to the land-related interest in residential property at the following rates—

(a) if the foreign purchaser forms the intention on or after 1 July 2015 but before 1 July 2016—3% of the dutiable value of the interest at the time that it was transferred; or

(b) if the foreign purchaser forms the intention on or after 1 July2016—7% of the dutiable value of the interest at the time that it was transferred.".



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6 Rate for additional duty chargeable for foreign purchasers—residential property

In section 28A(2) of the Duties Act 2000, for "3%" substitute "7%".

7 Transactions treated as sub-sales of land—repeal of definition

In section 32A(1) of the Duties Act 2000, the definition of land development is repealed.

8 New sections 277 and 278 inserted

After section 276 of the Duties Act 2000 insert—

"277 First charge on land—foreign purchasers of residential property

(1) This section applies if—

(a) a transferee is liable to pay duty under section 18A or 28A in relation to a transaction that occurs on or after 1 July 2015; and

(b) a tax default occurs for the purposes of the Taxation Administration Act 1997 in relation to the transaction; and

(c) on or after 1 July 2016, the Commissioner makes an assessment or reassessment in relation to the transaction.

(2) Any unpaid duty (including any penalty tax and interest) in relation to the transaction is a first charge on the land to which the transaction relates.

(3) The charge has priority over all other encumbrances to which the land is subject.



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278 Registration of charge

(1) The Commissioner may register a charge on land under section 277(2) by depositing with the Registrar of Titles a certificate describing the land charged and stating that there is unpaid duty in relation to the land.

(2) The Registrar of Titles must make a recording of the certificate in the Register.

(3) When the unpaid duty (including any penalty tax and interest) is paid, the Commissioner may request the Registrar of Titles—

(a) to remove or delete the charge; or

(b) to make a recording in the Register of the discharge of the charge.

(4) The Registrar of Titles must comply with a request made by the Commissioner under subsection (3).".

9 New clauses 34 to 39 inserted in Schedule 2

After clause 33 in Schedule 2 to the Duties Act 2000 insert—

"34 State Taxation and Other Acts Amendment Act 2016—residential property and rate for foreign purchaser duty

Chapters 1 and 2, as in force immediately before 1 July 2016, apply in respect of any dutiable transaction entered into on or after 1 July 2015 but before 1 July 2016 under which a land-related interest in residential property is transferred to a foreign purchaser.



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35 State Taxation and Other Acts Amendment Act 2016—residential property for the purposes of Chapter 3

The definition of residential property set out in section 3(1), as in force immediately before 1 July 2016, applies in respect of any acquisition of an interest in a landholder that holds a land-related interest in residential property if the agreement or arrangement for the acquisition was entered into by a foreign purchaser on or after 1 July 2015 but before 1 July 2016.

36 State Taxation and Other Acts Amendment Act 2016—2015-2016 agreements and arrangements for significant interest foreign purchaser acquisitions

(1) This clause applies if—

(a) a foreign purchaser entered into an agreement or arrangement on or after 1 July 2015 but before 1 July 2016 for the acquisition of an interest in a landholder that holds a land-related interest in residential property; and

(b) the acquisition, when made, is an acquisition of an interest referred to in section 78(1)(a)(i).

(2) Despite anything in this Act, if any duty is chargeable under Part 2 of Chapter 3 and is required to be calculated in accordance with section 86(1), that duty must be calculated in accordance with that subsection but using the rate specified under this Act that would have applied if the acquisition of the interest was made on the day the agreement or



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arrangement was entered into by the foreign purchaser.

37 State Taxation and Other Acts Amendment Act 2016—2015-2016 agreements and arrangements for aggregated significant interest foreign purchaser acquisitions


(a) a foreign purchaser entered into an agreement or arrangement on or after 1 July 2015 but before 1 July 2016 for the acquisition of an interest in a landholder that holds a land-related interest in residential property; and

(b) the acquisition, when made, is an acquisition of an interest referred to in section 78(1)(a)(ii), or after it is made, becomes an interest of that kind.

(2) Despite anything in this Act, if any duty is chargeable under Part 2 of Chapter 3 and is required to be calculated in accordance with section 86(3), that duty must be calculated in accordance with that subsection but using the rate specified under this Act that would have applied if the acquisition of the interest was made on the day the agreement or arrangement was entered into by the foreign purchaser.

38 State Taxation and Other Acts Amendment Act 2016—2015-2016 agreements and arrangements for foreign purchaser acquisitions of further interests


(a) a foreign purchaser entered into an agreement or arrangement on or after



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1 July 2015 but before 1 July 2016 for the acquisition of an interest in a landholder that holds a land-related interest in residential property; and

(b) the acquisition, when made, is an acquisition of a further interest in the landholder referred to in section 78(1)(b).

(2) Despite anything in this Act, if any duty is chargeable under Part 2 of Chapter 3 and is required to be calculated in accordance with section 86(4), that duty must be calculated in accordance with that subsection but using the rate specified under this Act that would have applied if the acquisition was made on the day the agreement or arrangement was entered into by the foreign purchaser.

39 State Taxation and Other Acts Amendment Act 2016—pre-2015 agreements and arrangements for foreign purchaser acquisitions


(a) a foreign purchaser entered into an agreement or arrangement before 1 July 2015 for the acquisition of an interest in a landholder that holds a land-related interest in residential property; and

(b) the acquisition, when made, is an acquisition of an interest referred to in section 78(1), or after it is made, becomes an interest of that kind.

(2) Despite anything in this Act, in calculating any duty chargeable on the acquisition section 28A is to be disregarded.".



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10 Statute law revision

(1) In section 3A(4) of the Duties Act 2000, for "section 14(3)" substitute "section 22(3)".

(2) In section 62(4) of the Duties Act 2000, for "transfer." substitute "transfer;".

(3) In section 63(3) of the Duties Act 2000, for "transfer." substitute "transfer;".

(4) In section 159(2) of the Duties Act 2000, for "Australia" substitute "Australia.".



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Part 3—Amendment of the Fire Services Property Levy Act 2012

Division 1—Exemption and concessions11 Single farm enterprise exemption

(1) For section 9A(1)(a) and (b) of the Fire Services Property Levy Act 2012 substitute—

"(a) the parcel is one of 2 or more parcels of land that constitute a single farm enterprise; and".

(2) In section 9A(5) of the Fire Services Property Levy Act 2012 insert the following definition—

"farm land means land—

(a) that is used primarily for grazing (including agistment), dairying, pig-farming, poultry-farming, fish-farming, tree-farming, bee-keeping, viticulture, horticulture, fruit-growing or the growing of crops of any kind or for any combination of those activities; and

(b) that is used by a business—

(i) that has a significant and substantial commercial purpose or character; and

(ii) that seeks to make a profit on a continuous or repetitive basis from its activities on the land; and

(iii) that is making a profit from its activities on the land, or that has a reasonable prospect of making a profit from its activities on the land if it continues to operate in the way that it is operating;".



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(3) In section 9A(5) of the Fire Services Property Levy Act 2012, in paragraph (b) of the definition of single farm enterprise—

(a) for "properties" (where twice occurring) substitute "parcels";

(b) for "property" substitute "parcel".

12 Concessions

In section 29(8) of the Fire Services Property Levy Act 2012, in the definition of concession card—

(a) after paragraph (a) insert—

"(ab) a pensioner concession card issued under section 53 of the Veterans' Entitlements Act 1986 of the Commonwealth; or";

(b) after paragraph (b)(ii) insert—

"(iia) a person who is eligible for treatment under Part V of the Veterans' Entitlements Act 1986 of the Commonwealth as a former prisoner of war to whom section 85(4)(b) of that Act applies; or

(iib) a person who is eligible to be paid a pension under Part II of the Veterans' Entitlements Act 1986 of the Commonwealth at the rate provided for by section 22(4) of that Act; or".



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Division 2—Consumer price index adjustment13 CPI adjusted fixed charge

In section 11(3) of the Fire Services Property Levy Act 2012—

(a) in the definition of "L", after "charge" insert "determined in accordance with this section";

(b) for the definitions of "A" and "B" substitute—

'A is the sum of the consumer price index numbers for the consecutive reference periods in the period—

(a) commencing on 1 January in the levy year 2 years earlier than the levy year in respect of which the CPI adjusted fixed charge is being determined; and

(b) ending on the next following 31 December in the levy year immediately preceding the levy year in respect of which the CPI adjusted fixed charge is being determined—

last published by the Australian Bureau of Statistics as at 15 April immediately preceding the levy year in respect of which the CPI adjusted fixed charge is being determined;

B is the sum of the consumer price index numbers for the consecutive reference periods in the period—



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(a) commencing on 1 January in the levy year 3 years earlier than the levy year in respect of which the CPI adjusted fixed charge is being determined; and

(b) ending on the next following 31 December in the levy year 2 years earlier than the levy year in respect of which the CPI adjusted fixed charge is being determined.

Example

In the case of a determination of the CPI adjusted fixed charge for the financial year beginning on 1 July 2016—

"L" is the amount of the fixed charge for the levy year beginning on 1 July 2015; and

"A" is the sum of the consumer price index numbers for the consecutive reference periods in the period commencing on 1 January 2015 and ending on 31 December 2015; and

"B" is the sum of the consumer price index numbers for the consecutive reference periods in the period commencing on 1 January 2014 and ending on 31 December 2014.'.



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Part 4—Amendment of the First Home Owner Grant Act 2000

14 Power to recover amount paid in error etc.

(1) In section 49(1) of the First Home Owner Grant Act 2000 omit "(or former applicant)" where twice occurring.

(2) After section 49(6) of the First Home Owner Grant Act 2000 insert—

"(7) In this section—

applicant includes a former applicant.".

15 Insertion of Division headings in Part 4

(1) Before section 47 of the First Home Owner Grant Act 2000 insert—

"Division 1—Offences".(2) Before section 48 of the First Home Owner

Grant Act 2000 insert—

"Division 2—Recovery".(3) Before section 50 of the First Home Owner


"Division 3—Protection of information".(4) Before section 51 of the First Home Owner


"Division 4—Other".



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16 New sections 49B to 49G inserted

After section 49A of the First Home Owner Grant Act 2000 insert—

"49B Recovery from third parties—Lessees, mortgagees and occupiers

(1) If an applicant is liable to pay a grant amount, the Commissioner may require a lessee, mortgagee or occupier of any specified property to pay the grant amount or any part of the grant amount that is payable but remains unpaid.

(2) The Commissioner cannot require a lessee or occupier—

(a) to pay an amount under this section that is greater than the amount of rent the lessee or occupier is required to pay the applicant; or

(b) to pay an amount under this section before the day on which the lessee or occupier is required to pay rent to the applicant.

(3) Subsection (2) does not apply to a lessee or occupier who is a relative of the applicant.

(4) The Commissioner's requirement is to be made by notice in writing.

(5) A copy of the notice must be served on the applicant.

(6) The amount must be paid to the Commissioner on receipt of the notice or by the date specified in the notice, whichever is the later.



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applicant includes a former applicant;

grant amount means an amount to which section 49 applies and includes a judgment debt and costs in respect of that amount;

relative has the same meaning as in the Land Tax Act 2005;

specified property means—

(a) a home in respect of which the applicant has received a first home owner grant; or

(b) land in which the applicant has an interest described in section 5(2)(a) to (h), other than an interest that section 5(3)(a) to (c) provides is not a relevant interest.

49C Consequences when person pays an amount under section 49B

(1) A person who pays an amount under section 49B is entitled to recover that amount from the applicant as a debt, or to set off the amount against any money owing to the applicant.

(2) If a lessee or occupier pays an amount under section 49B—

(a) the amount is taken to have been paid to the Commissioner by the applicant; and



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(b) the lessee or occupier is taken to have paid an equal amount of rent to the applicant under the lease or agreement or under any applicable tenancy law.

(3) If a mortgagee pays an amount under section 49B, the amount is taken to be secured by the mortgage in addition to any other amount secured by it.


applicant includes a former applicant.

49D Recovery from other third parties

(1) Subject to subsection (2), if an applicant is liable to pay a grant amount, the Commissioner may require any of the following persons instead of the applicant to pay the grant amount or any part of the grant amount that remains unpaid—

(a) a person by whom any money is due or accruing or may become due to the applicant;

(b) a person who holds or may subsequently hold money for or on account of the applicant;

(c) a person who holds or may subsequently hold money on account of some other person for payment to the applicant;

(d) a person having authority from some other persons to pay money to the applicant.



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(2) The Commissioner must not recover under this section—

(a) an amount of rent a lessee or occupier is required to pay the applicant; or

(b) an amount a mortgagee is required to pay the applicant under a mortgage.

Note

Under section 49B, the Commissioner may recover from lessees and occupiers rent owed to applicants and amounts mortgagees are required to pay applicants.

(3) The Commissioner's requirement is to be made by notice in writing.

(4) A copy of the notice must be served on the applicant.

(5) The amount of money required to be paid to the Commissioner under this section is—

(a) if the amount of money held or due or authorised to be paid does not exceed the grant amount, all of the money; or

(b) if the amount of the money exceeds the grant amount, sufficient money to pay the grant amount.

(6) The money must be paid to the Commissioner on receipt of the notice, or when the money is held by the person, or after such period (if any) as may be specified by the Commissioner, whichever is the later.

(7) If, after a person is given a notice under this section by the Commissioner, the whole or a part of the grant amount is paid by another person, the Commissioner must promptly notify the person to whom the notice is given of the payment and the notice is taken to be amended accordingly.



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applicant includes a former applicant;

grant amount means an amount to which section 49 applies and includes a judgment debt and costs in respect of that amount.

49E Indemnification of other third party

A person who makes a payment in accordance with section 49D is taken to be acting under the authority of the applicant (or former applicant) and of all other persons concerned and is indemnified by this section in respect of the payment.

49F Service of certain documents by the Commissioner

(1) A document authorised or required to be served on or given to a person by the Commissioner in relation to the recovery of an amount to which section 49 applies, may be served on or given to the person—

(a) personally; or

(b) by leaving it at the last address of the person known to the Commissioner; or

(c) by post addressed to the person at the last address of the person known to the Commissioner; or

(d) by a means indicated by the person as being an available means of service (such as by facsimile or other electronic transmission or by delivering it, addressed to the person, to the facilities of a document exchange); or

(e) by any means provided for the service of the document by another Act or law.



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(2) To avoid doubt, this section applies to the service of any court process in proceedings to recover any amount under this Act.

(3) If a person (the agent) has actual or apparent authority to accept service of a document on behalf of another, the Commissioner may, for the purposes of this Act, serve the document on the agent as if the agent were that other person.

49G When is service effective?

(1) If the Commissioner serves or gives a person a document in relation to the recovery of an amount to which section 49 applies, the document must be taken, unless the contrary is proved, to have been served on or given to the person by the Commissioner—

(a) in the case of delivery in person, at the time the document is delivered;

(b) in the case of a facsimile or other electronic transmission, at the time the facsimile or transmission is received.

(2) If a facsimile or other electronic transmission is received after 4.00 p.m. on any day, it must be taken to have been received on the next business day.


business day means a day other than a Saturday, a Sunday or a public holiday appointed under the Public Holidays Act 1993.".

17 Protection of confidential information

After section 50(4)(ca)(vi) of the First Home Owner Grant Act 2000 insert—

"(vii) the Ombudsman; or".



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Part 5—Amendment of the Land Tax Act 2005

18 Definitions

In section 3(1) of the Land Tax Act 2005, for the definition of absentee beneficiary substitute—

"absentee beneficiary means—

(a) a natural person absentee who or an absentee corporation that (not acting in the capacity of a trustee of a trust)—

(i) has a beneficial interest in land subject to a fixed trust; or

(ii) is a unitholder in a unit trust scheme; or

(iii) is a specified beneficiary of a discretionary trust; or

(b) any person who—

(i) has a beneficial interest in land subject to a fixed trust and holds that interest as a trustee of an absentee trust; or

(ii) is a unitholder in a unit trust scheme and holds unitholdings in that unit trust scheme as a trustee of an absentee trust; or

(iii) is a specified beneficiary of a discretionary trust in the capacity as a trustee of an absentee trust;".



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19 Absentee controlling interest

(1) In section 3A(c) of the Land Tax Act 2005, for "a corporation" substitute "the corporation".

(2) At the end of section 3A of the Land Tax Act 2005 insert—

"(2) For the purposes of subsection (1)—

(a) a reference to the issued share capital of a corporation does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital; and

(b) subject to paragraphs (c) and (d), any shares held or power exercisable by a person or nominee for an absentee person are taken to be also held or exercisable by the absentee person; and

(c) any shares held or power exercisable by an absentee person by virtue of the provisions of any debentures of another corporation, or of a trust deed for securing any issue of any such debentures, must be disregarded; and

(d) any shares held or power exercisable by, or by a nominee for, an absentee person (not being held or exercisable as mentioned in paragraph (c)) are taken to be not held or exercisable by that person if—

(i) the ordinary business of that person includes the lending of money; and

(ii) the shares are held or the power is exercisable only by way of security given for the purposes of



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a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with an associate of that person within the meaning of the Corporations Act; and

(e) the composition of a corporation's board is taken to be controlled by an absentee person if the absentee person, by the exercise of a power exercisable whether or not with the consent or concurrence of any other person, can appoint or remove all or a majority of the members of the board.

(3) Subsection (2)(e) does not limit the circumstances in which the composition of a corporation's board is to be taken to be controlled by an absentee person.".

20 What is the rate of land tax?

In section 35(1A) of the Land Tax Act 2005, for "5·5%" substitute "6·5%".

21 Land tax surcharge for absentee trusts

In section 46IA(1)(a) of the Land Tax Act 2005, in the formula set out in that paragraph, for "0·5%" substitute "1·5%".

22 Land tax for absentee fixed trust if beneficial interests notified to Commissioner

(1) In section 46IB(1)(a) of the Land Tax Act 2005, after "this Act" insert "other than Division 1 of Part 4".



29

(2) In section 46IB(3) of the Land Tax Act 2005—

(a) in paragraph (a), after "this Act" insert "other than Division 1 of Part 4";

(b) in paragraph (b), in the formula set out in that paragraph, for "0·5%" substitute "1·5%".

(3) In section 46IB(4)(a) of the Land Tax Act 2005, in the formula set out in that paragraph, for "0·5%" substitute "1·5%".

23 Land tax for absentee unit trust scheme if unitholdings notified to Commissioner

In section 46IC(3)(b) and (4)(a) of the Land Tax Act 2005, in the formula set out in each of those paragraphs, for "0·5%" substitute "1·5%".

24 Land tax for beneficiary/trustees

(1) After section 46ID(2) of the Land Tax Act 2005 insert—

"(2A) Subsection (3) applies to—

(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and all of the beneficial interests in the land subject to the first trust are beneficial interests of absentee beneficiaries; or

(b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and all of the unitholdings in the first scheme are held by unitholders who are absentee beneficiaries.".



30

(2) For section 46ID(3)(a) of the Land Tax Act 2005 substitute—

"(a) the amount determined by the formula—

where—

A is—

(a) the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or

(b) the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme;

B is the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme; and".

(3) After section 46ID(3) of the Land Tax Act 2005 insert—

"(4) Subsection (5) applies to—

(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is not an absentee beneficiary; or



31

(b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is not an absentee beneficiary.

(5) There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the lesser of—

(a) the amount determined by the formula—

where—

A is—





32

B is that part of the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme;

C is the taxable value of all taxable land owned by the beneficiary/trustee; and

(b) the amount determined by the formula—

CD

× E

where—

C is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner;

D is the total taxable value of all taxable land owned by the beneficiary/trustee that is subject to the second trust;

E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust.



33

(6) Subsection (7) applies to—

(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust not as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is an absentee beneficiary; or

(b) a beneficiary/trustee who holds a unitholding in the first scheme not as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is an absentee beneficiary.

(7) There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the lesser of—

(a) the amount determined by the formula—

A × Bwhere—

A is—




34


B is that part of the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme; and

(b) the amount determined by the formula—

CD

× E

where—

C is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner;

D is the total taxable value of all taxable land owned by the beneficiary/trustee that is subject to the second trust;

E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject to the second trust.".



35

25 Land tax surcharge for related absentee corporations

In section 50A(2) of the Land Tax Act 2005, in the formula set out in that subsection, for "0·5%" substitute "1·5%".

26 Exemption of primary production land in an urban zone in greater Melbourne

(1) In section 67(2)(d)(iii)(B) of the Land Tax Act 2005, for "land." substitute "land; or".

(2) After section 67(2)(d) of the Land Tax Act 2005 insert—

"(e) a trustee of a superannuation trust of which—

(i) all the members or beneficiaries (as the case requires) of the trust are relatives; and

(ii) at least one member or beneficiary (as the case requires) of the trust is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land.".

27 Rate of land tax on land held by absentee owners for 2016

(1) In the heading to clause 4.1 of Schedule 1 to the Land Tax Act 2005, after "owners" insert "for 2016".

(2) In clause 4.1 of Schedule 1 to the Land Tax Act 2005 omit "and each subsequent year".



36

28 New clause 4.2 of Schedule 1 inserted

In Part 4 of Schedule 1 to the Land Tax Act 2005, after clause 4.1 insert—

"4.2 Rate of land tax on land held by absentee owners for 2017 and subsequent years

The rate of land tax on land held by an absentee owner for 2017 and each subsequent year is set out in Table 4.2.

TABLE 4.2

Item

Column 1Taxable

value not less than

Column 2Taxable

value less than

Column 3

Rate of land tax

$ $

1 0 250 000 Nil

2 250 000 600 000 $4025 and 17% of the taxable value that exceeds $250 000

3 600 000 1 000 000 $9975 and 2% of the taxable value that exceeds $600 000

4 1 000 000 1 800 000 $17 975 and 23% of the taxable value that exceeds $1 000 000


6 3 000 000 $69 975 and 375% of the taxable value that exceeds $3 000 000

".



37

29 Rate of land tax on land held by owner subject to an absentee trust for 2016

(1) In the heading to clause 5.1 of Schedule 1 to the Land Tax Act 2005, after "trust" insert "for 2016".

(2) In clause 5.1 of Schedule 1 to the Land Tax Act 2005 omit "and each subsequent year".

30 New clause 5.2 of Schedule 1 inserted

In Part 5 of Schedule 1 to the Land Tax Act 2005, after clause 5.1 insert—

"5.2 Rate of land tax on land held by owner subject to an absentee trust for 2017 and subsequent years

The rate of land tax for land held by an owner subject to an absentee trust for 2017 and each subsequent year is set out in Table 5.2.

TABLE 5.2

Item

Column 1Taxable

value not less than

Column 2Taxable

value less than

Column 3

Rate of land tax

$ $

1 0 25 000 Nil



4 600 000 1 000 000 $11 938 and 2375% of the taxable value that exceeds $600 000



38

Item

Column 1Taxable

value not less than

Column 2Taxable

value less than

Column 3

Rate of land tax

$ $



7 3 000 000 $69 975 and 375% of the taxable value that exceeds $3 000 000

".



39

Part 6—Amendment of the Mineral Resources (Sustainable Development) Act 1990

31 Royalties for lignite

In section 12A(5) of the Mineral Resources (Sustainable Development) Act 1990, for the definitions of base amount and consumer price index substitute—

"base amount means—

(a) for the period commencing on 1 July 2016 and ending on 31 December 2016, the amount determined in accordance with the following formula—

where—

A is the consumer price index number for the reference period ending on 30 June 2016;

B is the consumer price index number for the financial year ending on 30 June 2005; and

(b) for the period commencing on 1 January 2017 and ending on 30 June 2017, the amount determined in accordance with the following formula—



40

where—

C is the consumer price index number for the financial year ending on 30 June 2016; and

(c) for the financial year ending on 30 June 2018 and each subsequent financial year, the amount determined in accordance with the following formula—

where—

D is the amount calculated under paragraph (b);

E is the consumer price index number for the reference period ending on 30 June immediately preceding the financial year for which the determined amount is being calculated;

F is the consumer price index number for the financial year ending on 30 June 2016;

consumer price index number means the all groups consumer price index number for Melbourne in original terms published by the Australian Bureau of Statistics;".



41

Part 7—Amendment of the Payroll Tax Act 2007

Division 1—Threshold amounts and deductible amounts

32 Designated group employers

(1) In section 80(2)(a) and (3)(a) of the Payroll Tax Act 2007, for "$550 000" substitute "the threshold amount specified in the definition of TA or threshold amount in clause 1 of Schedule 1 for that financial year".

(2) In section 80(2)(b) and (3)(b) of the Payroll Tax Act 2007, for "that amount" substitute "the threshold amount specified in the definition of TA or threshold amount in clause 1 of Schedule 1 for the current financial year".

33 Registration

(1) In section 86(1) of the Payroll Tax Act 2007—

(a) for "$10 576 per week" substitute "the weekly threshold amount";

(b) for "$9615 per week" substitute "the weekly threshold amount".

(2) After section 86(5) of the Payroll Tax Act 2007 insert—

"(6) In this section, weekly threshold amount means—

(a) for the financial year commencing on 1 July 2016—$11 057 per week;

(b) for the financial year commencing on 1 July 2017—$11 538 per week;



42

(c) for the financial year commencing on 1 July 2018—$12 019 per week;

(d) for the financial year commencing on 1 July 2019 and each subsequent financial year—$12 500 per week.".

34 Amendment of Schedule 1

In Schedule 1 to the Payroll Tax Act 2007, for—"Sections 8, 29(5), 82"

substitute—"Sections 8, 29(5), 80, 82".

35 Definitions in Schedule 1

In clause 1 of Schedule 1 to the Payroll Tax Act 2007, for the definition of TA or threshold amount substitute—

"TA or threshold amount means—

(a) for the financial year commencing on 1 July 2015—$550 000;

(b) for the financial year commencing on 1 July 2016—$575 000;

(c) for the financial year commencing on 1 July 2017—$600 000;

(d) for the financial year commencing on 1 July 2018—$625 000;

(e) for the financial year commencing on 1 July 2019 and each subsequent financial year—$650 000.".



43

36 New Division 1AA of Part 2 of Schedule 2 inserted

After the heading to Part 2 of Schedule 2 to the Payroll Tax Act 2007 insert—

"Division 1AA—Definition1A Definition

In this Part—

base deductible amount means—

(a) for a month in the financial year commencing on 1 July 2016—$47 916;

(b) for a month in the financial year commencing on 1 July 2017—$50 000;

(c) for a month in the financial year commencing on 1 July 2018—$52 083;

(d) for a month in the financial year commencing on 1 July 2019 and each subsequent financial year—$54 166.".

37 Deductible amount for employer who does not pay interstate wages

In clause 5(1) of Schedule 2 to the Payroll Tax Act 2007, for "$45 833" substitute "the base deductible amount".

38 Deductible amount for employer who pays interstate wages

In the formula in clause 6(3) of Schedule 2 to the Payroll Tax Act 2007—

(a) for "$45 833" substitute "BDA";



44

(b) for "where—" substitute—

"where—

BDA is the base deductible amount;".

39 Deductible amount for groups that do not pay interstate wages

In clause 9(1) of Schedule 2 to the Payroll Tax Act 2007, for "$45 833" substitute "the base deductible amount".

40 Deductible amount for groups that pay interstate wages

In the formula in clause 10(3) of Schedule 2 to the Payroll Tax Act 2007—

(a) for "$45 833" substitute "BDA";

(b) for "where—" substitute—

"where—

BDA is the base deductible amount;".

Division 2—Exemption for apprentices and trainees41 Amounts taken to be wages

In section 40(2) of the Payroll Tax Act 2007, after "clause 16" insert "or 16A".

42 Definitions in Schedule 2

In clause 13 of Schedule 2 to the Payroll Tax Act 2007—

(a) insert the following definitions—

"approved training scheme has the same meaning as in section 5.5.1 of the Education and Training Reform Act 2006;



45

re-employed apprentice or trainee has the meaning given by clause 16A(2);

training contract has the same meaning as in section 1.1.3(1) of the Education and Training Reform Act 2006.";

(b) in the definition of school council, for "2006." substitute "2006;".

43 New clause 16A inserted in Schedule 2

After clause 16 of Schedule 2 to the Payroll Tax Act 2007 insert—

"16A Wages paid to person who continues training under approved training scheme

(1) Wages are exempt wages if they are paid or payable to a re-employed apprentice or trainee.

(2) A re-employed apprentice or trainee is a person—

(a) who is employed by an employer (the current employer) as an apprentice or trainee under a training contract in accordance with the requirements of an approved training scheme; and

(b) who commenced employment with the current employer as an apprentice or trainee under a training contract on or after 1 July 2016; and

(c) who was previously employed by another employer (the previous employer) as an apprentice or trainee under a training contract in accordance with the requirements of—

(i) the approved training scheme referred to in paragraph (a); or



46

(ii) an approved training scheme that has been superseded by the training scheme referred to in paragraph (a); and

(d) whose employment with the previous employer ceased before the person had completed the requirements of the approved training scheme referred to in paragraph (c)(i) or (ii).

(3) Despite subsection (1), wages paid or payable to a re-employed apprentice or trainee are not exempt wages if the current employer and the previous employer are members of a group.".



47

Part 8—Amendment of the Planning and Environment Act 1987

Division 1—Consumer price index adjustments44 CPI adjusted amount

In section 96R(1) of the Planning and Environment Act 1987—

(a) in paragraph (b) of the definition of "T", after "amount" insert "determined in accordance with this section";


'A is the sum of the consumer price index numbers for the consecutive reference periods in the period—

(a) commencing on 1 January in the financial year 2 years earlier than the financial year in respect of which the CPI adjusted amount is being determined; and

(b) ending on the next following 31 December in the financial year immediately preceding the financial year in respect of which the CPI adjusted amount is being determined—

last published by the Australian Bureau of Statistics as at 15 April immediately preceding the financial year in respect of which the CPI adjusted amount is being determined;



48

B is the sum of the consumer price index numbers for the consecutive reference periods in the period—

(a) commencing on 1 January in the financial year 3 years earlier than the financial year in respect of which the CPI adjusted amount is being determined; and

(b) ending on the next following 31 December in the financial year 2 years earlier than the financial year in respect of which the CPI adjusted amount is being determined.

Example

In the case of a determination of the CPI adjusted amount for the financial year beginning on 1 July 2018 the variables are as follows—

"T" is the CPI adjusted amount for the financial year beginning on 1 July 2017;

"A" is the sum of the consumer price index numbers for the consecutive reference periods in the period commencing on 1 January 2017 and ending on 31 December 2017;

"B" is the sum of the consumer price index numbers for the consecutive reference periods in the period commencing on 1 January 2016 and ending on 31 December 2016.'.

45 Indexation of threshold amount for excluded building work

In clause 3(1) of Schedule 1 to the Planning and Environment Act 1987—

(a) in the definition of "PTA", after "amount" insert "determined in accordance with this clause";



49


'A is the sum of the consumer price index numbers for—

(a) the last reference period in the financial year 2 years earlier than the financial year in respect of which the threshold amount is being determined; and

(b) each of the reference periods (other than the last) in the financial year immediately preceding the financial year in respect of which the threshold amount is being determined;

B is the sum of the consumer price index numbers for—

(a) the last reference period in the financial year 3 years earlier than the financial year in respect of which the threshold amount is being determined; and

(b) each of the reference periods (other than the last) in the financial year 2 years earlier than the financial year in respect of which the threshold amount is being determined.

Example

In the case that the reference periods are the quarterly periods of a financial year, the variables for the determination of the threshold amount for the 2016/2017 financial year are as follows—

"PTA" is the threshold amount that applied in the 2015/2016 financial year;



50

"A" is the sum of the consumer price index numbers for the June quarter in the 2014/2015 financial year and the September, December and March quarters in the 2015/2016 financial year;

"B" is the sum of the consumer price index numbers for the June quarter in the 2013/2014 financial year and the September, December and March quarters in the 2014/2015 financial year.'.

46 Maximum adjusted growth areas infrastructure contribution


(a) in the definition of "PC", after "section 201SG(5)" insert "determined in accordance with this clause";



(a) the last reference period in the financial year 2 years earlier than the financial year in respect of which the maximum adjusted contribution is being determined; and

(b) each of the reference periods (other than the last) in the financial year immediately preceding the financial year in respect of which the maximum adjusted contribution is being determined;



51


(a) the last reference period in the financial year 3 years earlier than the financial year in respect of which the maximum adjusted contribution is being determined; and

(b) each of the reference periods (other than the last) in the financial year 2 years earlier than the financial year in respect of which the maximum adjusted contribution is being determined.

Example

In the case that the reference periods are the quarterly periods of a financial year, the variables for the determination of the maximum adjusted contribution for the 2016/2017 financial year are as follows—

"PC" is the amount of the adjusted contribution for that type of land for the 2015/2016 financial year;



47 Adjusted deferred amount of growth areas infrastructure contribution


(a) in the definition of "PDA", after "contribution" insert "determined in accordance with this clause";



52



(a) the last reference period in the financial year 2 years earlier than the financial year in respect of which the adjusted deferred amount is being determined; and

(b) each of the reference periods (other than the last) in the financial year immediately preceding the financial year in respect of which the adjusted deferred amount is being determined;


(a) the last reference period in the financial year 3 years earlier than the financial year in respect of which the adjusted deferred amount is being determined; and

(b) each of the reference periods (other than the last) in the financial year 2 years earlier than the financial year in respect of which the adjusted deferred amount is being determined.

Example

In the case that the reference periods are the quarterly periods of a financial year, the variables for the determination of the adjusted deferred amount for the 2016/2017 financial year are as follows—

"PDA" is the adjusted deferred amount of the contribution for the 2015/2016 financial year;



53



Division 2—Statute law revision48 Statute law revision

In section 201SY(a) of the Planning and Environment Act 1987, for "the the" substitute "the".



54

Part 9—Amendment of the State Taxation Acts Further Amendment Act 2015

49 New clauses 13A and 13B inserted in Schedule 2

In section 5 of the State Taxation Acts Further Amendment Act 2015, proposed clause 13A(3) of Schedule 2 to the Payroll Tax Act 2007 is repealed.

50 Clause 16 of Schedule 2 substituted

In section 6 of the State Taxation Acts Further Amendment Act 2015, in proposed clause 16 of Schedule 2 to the Payroll Tax Act 2007, omit "under Part 5.5 of the Education and Training Reform Act 2006.".



55

Part 10—Amendment of the Taxation Administration Act 1997

51 What happens if Commissioner refuses a refund?

In section 21(1)(b)(i) of the Taxation Administration Act 1997—

(a) in sub-subparagraph (B), for "section 20(d)(i)" substitute "section 20A(1)";

(b) in sub-subparagraph (C), for "section 20(d)(i)" substitute "section 20A(4)".

52 Permitted disclosures to particular persons or for particular purposes

After section 92(1)(e)(vf) of the Taxation Administration Act 1997 insert—

"(vfa) a Council that has been directed by the Minister under section 21(2) of the Fire Services Property Levy Act 2012 to be a collection agency in respect of non-rateable leviable land that is not located within the boundaries of a municipal district; or".



56

Part 11—Repeal of amending Act53 Repeal of amending Act

This Act is repealed on 1 January 2018.Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

═══════════════



57

Endnotes1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

Endnotes


58

http://www.legislation.vic.gov.au/

† Minister's second reading speech—

Legislative Assembly: 3 May 2016

Legislative Council: 26 May 2016

The long title for the Bill for this Act was "A Bill for an Act to amend the Duties Act 2000, the Fire Services Property Levy Act 2012, the First Home Owner Grant Act 2000, the Land Tax Act 2005, the Mineral Resources (Sustainable Development) Act 1990, the Payroll Tax Act 2007, the Planning and Environment Act 1987, the State Taxation Acts Further Amendment Act 2015 and the Taxation Administration Act 1997, and for other purposes."

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