State Taxation (Further Amendment) Act · PDF fileState Taxation (Further Amendment) Act 1998...

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State Taxation (Further Amendment) Act 1998 Act No. 103/1998

TABLE OF PROVISIONS

Section Page

PART 1—PRELIMINARY 1

1. Purpose 1 2. Commencement 2

PART 2—BUSINESS FRANCHISE (PETROLEUM PRODUCTS) ACT 1979 3

3. Payments by Treasurer 3 4. Diesel fuel exemption certificate 3 5. New sections 20A and 20B inserted 3

20A. Liability to repay certain money 3 20B. Offences 4

PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982 6

6. New definition of broker 6 7. Non-bank financial institutions 6 8. New section 29A inserted 6

29A. Duration of certificate of approval 6

PART 4—LAND TAX ACT 1958 8

9. Release of information 8 10. Principal place of residence 8

PART 5—LIQUOR CONTROL ACT 1987 9

11. Payment of subsidies 9

PART 6—PAY-ROLL TAX ACT 1971 10

12. Definitions 10 13. Amendment of section 3C 11 14. New section 3D inserted 11

3D. Employment agents 11

Section Page

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15. New sections 3E and 3F inserted 13 3E. Special arrangements for payment of tax by

employment agents on behalf of clients 13 3F. Agreement to reduce or avoid liability for pay-roll tax 14

16. Nominated member of group 15 17. Exemption from pay-roll tax 16 18. New section 10A inserted 16

10A. Local government business entities 16

PART 7—STAMPS ACT 1958 18

19. Definitions 18 20. Duty on SCH-regulated transfers 19 21. Insurance duty 20 22. New subdivision (16) of Division 3 of Part II substituted— 20

(16) Motor vehicle and heavy trailer registration 21

137A. Definitions 21 137AB. Lodgment of statement of dutiable value 23 137AC. Who is liable to pay the duty? 23 137AD. When does duty become payable? 23 137AE. What is the dutiable value of a motor vehicle or

heavy trailer? 23 137AF. Prohibition on registration of motor vehicles and

heavy trailers 24 137AG. Registration of motor traders and dealers 24 137AH. Cessation of business and cancellation of registration 25 137AI. Register of used car dealers 25 137AJ. Endorsement of code number on application 26 137AK. Monthly returns and payment of duty 26 137AL. Recovery of duty by registered used car dealer 26 137AM. Unauthorised endorsement of code number 27 137AN. Duty on statement of change of use 27 137AO. Duty on statement of acquisition 28 137AP. Entitlement to refund 29 137AQ. Transitional provision 29

23. New Heading XXI in Third Schedule substituted 30 24. Marketable security duty 36 25. Sales of sheep and goats 38 26. Consequential amendment of State Taxation (Further

Amendment) Act 1995 38

PART 8—TAXATION ADMINISTRATION ACT 1997 39

27. Special arrangements may include interest 39 28. Permitted disclosures of information 39 29. Objection 39

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30. Certificate evidence 40 31. Statute law revision 40

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NOTES 41

1

State Taxation (Further Amendment) Act 1998†

[Assented to 1 December 1998]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

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

Victoria

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2. Commencement

(1) This Part, Part 2, Part 3 (except section 6), Part 4 (except section 10), sections 16 and 21 and Part 8 (except sections 27 and 30) come into operation on the day on which this Act receives the Royal Assent.

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

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

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

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

(6) Sections 19(2), 20, 24, 25 and 26 come into operation on 1 January 1999.

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

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PART 2—BUSINESS FRANCHISE (PETROLEUM PRODUCTS) ACT 1979

3. Payments by Treasurer

After section 17(2) of the Business Franchise (Petroleum Products) Act 1979 insert—

"(3) If the Treasurer pays an amount to a person under this section that exceeds the amount due to that person, the overpayment may be off-set against future payments to that person under this section.".

4. Diesel fuel exemption certificate

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

"(7) The holder of an exemption certificate must return it to the Commissioner if the holder does not expect to purchase diesel fuel at any time during the remaining period of validity of the certificate for use otherwise than for propelling diesel engined road vehicles on a road.".

5. New sections 20A and 20B inserted

After section 20 of the Business Franchise (Petroleum Products) Act 1979 insert—

"20A. Liability to repay certain money

(1) A person who purchases diesel fuel at a price at which the diesel fuel is offered for sale to the holder of an exemption certificate and who—

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

No. 9272. Reprint No. 4 as at 19 March 1998.

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agent of the seller, an exemption certificate that has been revoked or that was not issued to the purchaser; or

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

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

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

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

A L M= ×

where—

A is the amount in dollars;

L is the number of litres of diesel fuel purchased;

M is 0·08149 or such other multiplier as is prescribed.

20B. Offences

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

(a) is not the holder of a current exemption certificate; and

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

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is guilty of an offence.

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

(2) A person who—

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

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

is guilty of an offence.

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

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PART 3—FINANCIAL INSTITUTIONS DUTY ACT 1982

6. New definition of broker

In section 3(1) of the Financial Institutions Duty Act 1982, for the definition of "broker" substitute—

' "broker" means a person (other than a bank) who is a broker within the meaning of the Business Rules of Australian Stock Exchange Limited;'.

7. Non-bank financial institutions

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

"(d) a charitable institution other than a tertiary educational institution;

(da) a public hospital;

(db) a State school;

(dc) the trustees for the time being of a trust the capital and income of which may not be applied otherwise than for charitable purposes;".

8. New section 29A inserted

After section 29 of the Financial Institutions Duty Act 1982 insert—

"29A. Duration of certificate of approval

A certificate of approval under this Part—

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

No. 9850. Reprint No. 3 as at 22 August 1997. Subsequently amended by Nos 84/1996, 43/1997, 86/1997 and 48/1998.

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(b) remains in force for the period specified in it (if any) or until it is cancelled under this Part.".

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PART 4—LAND TAX ACT 1958

9. Release of information

In section 4(4) of the Land Tax Act 1958, before paragraph (d) insert—

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

10. Principal place of residence

(1) In section 13H(1) and (2) of the Land Tax Act 1958 for "has paid" substitute "was assessed for and paid".

(2) In section 13H of the Land Tax Act 1958 for sub-section (3) substitute—

'(3) If—

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

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

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

the owner or trustee is entitled to a refund of the tax referred to in paragraph (b).'.

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No. 6289. Reprint No. 9 as at 26 May 1998. Further amended by Nos 35/1998, 46/1998 and 52/1998.

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PART 5—LIQUOR CONTROL ACT 1987

11. Payment of subsidies

In section 119A(1)(b) of the Liquor Control Act 1987, after "licences" insert "(whether granted under the law of this State or of another State or Territory)".

_______________

No. 97/1987. Reprint No. 4 as at 24 April 1998. Further amended by Nos 46/1998 and 52/1998.

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PART 6—PAY-ROLL TAX ACT 1971

12. Definitions

(1) In section 3(1) of the Pay-roll Tax Act 1971—

(a) for the definition of "employer" substitute—

' "employer" means any person who pays or is liable to pay any wages and includes—

(a) the Crown in right of the State of Victoria;

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

(c) any public, local or municipal body or authority constituted under the law of the Commonwealth or a State unless, being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act;';

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

' "employment agency contract" has the meaning given in section 3D(1);

"employment agent" has the meaning given in section 3D(1);'.

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

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

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

No. 8154. Reprint No. 6 as at 22 August 1997. Further amended by Nos 80/1997, 86/1997 and 48/1998.

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13. Amendment of section 3C

(1) In section 3C(1)(e)(v) of the Pay-roll Tax Act 1971, after "public generally" insert "in that financial year".

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

"(1A) For the purposes of this section, an employment agency contract under which services are supplied by an employment agent, or a service provider is procured by an employment agent, is not a relevant contract.".

14. New section 3D inserted

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

'3D. Employment agents

(1) In this section—

"contract" includes agreement, arrangement and undertaking;

"employment agency contract" means a contract, whether formal or informal and whether express or implied under which a person ("employment agent") procures the services of another person ("service provider") for a client of the employment agent, other than—

(a) a contract under or in respect of which—

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

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(ii) that lump sum payment is not a payment in respect of the services provided by the service provider to the client of the employment agent; or

(b) a contract that results in, or that is made in circumstances that result in, a contract of employment being created between the service provider and the client.

(2) For the purposes of this Act—

(a) a client for whom services are procured under an employment agency contract is deemed to be an employer; and

(b) the person who performs work for or in relation to which services are provided to the client under that employment agency contract is deemed to be an employee of the client; and

(c) subject to sub-section (3), any amount paid or payable by the client in respect of the provision of services by the service provider in connection with the employment agency contract is deemed to be wages paid or payable by the client under the employment agency contract.

(3) Sub-section (2)(c) does not apply to an amount paid or payable in respect of the provision of services by the service provider to a client in connection with an employment agency contract in any month in which the person who performs work for or in relation to which services are provided to the client does so on less than 8 days.

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(4) If an amount referred to in sub-section (2)(c) is included in a larger amount paid or payable by a client in connection with an employment agency contract, that part of the larger amount that is not attributable to the provision of services in connection with the employment agency contract may be prescribed by the regulations.

(5) If, in respect of a payment that is deemed to be wages under this section, pay-roll tax is paid by or on behalf of the client—

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

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

15. New sections 3E and 3F inserted

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

"3E. Special arrangements for payment of tax by employment agents on behalf of clients

(1) Subject to sub-section (2), if—

(a) the Commissioner has approved a special arrangement under Division 2 of Part 6 of the Taxation Administration Act 1997 for the payment of pay-roll tax on behalf of a client by an employment agent; and

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

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

(2) Sub-section (1) does not apply if the effect of the employment agency contract is to reduce or avoid the liability of the client to the assessment, imposition or payment of pay-roll tax (otherwise than as provided by sub-section (1)).

(3) This section has effect in relation to employment agency contracts made before, on or after the commencement of section 15 of the State Taxation (Further Amendment) Act 1998.

3F. Agreement to reduce or avoid liability for pay-roll tax

(1) If any person enters into an employment agency contract and the effect of the contract is to reduce or avoid the liability of any person to the assessment, imposition or payment of pay-roll tax, the Commissioner may—

(a) disregard the contract; and

(b) determine that any party to the contract is deemed to be an employer for the purposes of this Act; and

(c) determine that any payment made in respect of the contract is deemed to be wages for the purposes of this Act.

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

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

(3) This section has effect in relation to employment agency contracts made before, on or after the commencement of section 15 of the State Taxation (Further Amendment) Act 1998.".

16. Nominated member of group

(1) In section 9A(4)(a) of the Pay-roll Tax Act 1971—

(a) after "and notice" insert "in accordance with sub-section (4A)";

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

(c) in sub-paragraph (ii), after "by notice" insert "in accordance with sub-section (4A)";

(d) in sub-paragraph (iii), after "notice of objection" insert "in accordance with sub-section (4A)".

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

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

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

(b) the date on which the group came into existence; and

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

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

17. Exemption from pay-roll tax

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

"(l) subject to section 10A, by a body corporate to a person for or in connection with an activity conducted for a municipal council, or for 2 or more municipal councils, under a written arrangement between the body corporate and the municipal council or municipal councils.".

18. New section 10A inserted

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

"10A. Local government business entities

The exemption under section 10(1)(l)—

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

(b) does not apply unless the body corporate is a wholly-owned subsidiary (within the meaning of the Corporations Law) of the municipal council or municipal councils;

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

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

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

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

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PART 7—STAMPS ACT 1958

19. Definitions

(1) In section 3 of the Stamps Act 1958 for the definition of "broker" substitute—

' "broker" means a person who is a broker within the meaning of the Business Rules of Australian Stock Exchange Limited;'.

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

(a) insert the following definitions—

' "Australian register" has the same meaning as in the Corporations Law;

"de facto spouse" means a person who is living with a person of the opposite sex as if they were married although they are not;

"instalment warrant" means a warrant—

(a) that is issued by the warrant issuer in accordance with the Business Rules of Australian Stock Exchange Limited; and

(b) that is an option contract within the meaning of section 9 of the Corporations Law; and

(c) that provides beneficial ownership in respect of marketable securities that are quoted on the market operated by Australian Stock Exchange Limited; and

(d) that provides legal ownership of marketable securities to the warrant holder on payment of the final instalment, being a payment

No. 6375. Reprint No. 14 as at 1 September 1997. Further amended by Nos 86/1997, 46/1998, 48/1998 and 52/1998.

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

"warrant-issuer" means a person who is a warrant-issuer under the Business Rules of Australian Stock Exchange Limited;';

(b) in the definition of "marketable security" after paragraph (e) insert—

"(f) any instalment warrant;".

20. Duty on SCH-regulated transfers

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

"(c) the security is—

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

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

(iii) a right or interest (whether described as a unit or sub-unit or otherwise), or a CUFS in respect of a right or interest, of a beneficiary under a unit trust scheme, being a right or interest that is registered on a register kept in Victoria; or

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

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not registered on a register kept in Australia but in respect of which the manager (or, if there is no manager, the trustee) of the unit trust scheme—

(A) is a Victorian registered company; or

(B) is a natural person resident in Victoria; or

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

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

21. Insurance duty

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

"(1) For the purposes of section 97, the premiums chargeable with stamp duty are all premiums for assurance or insurance business that are applicable to—

(a) property in Victoria; or

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

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

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

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

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

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'(16) Motor vehicle and heavy trailer registration

137A. Definitions

In this subdivision and Heading XXI in the Third Schedule—

"application for registration" means an application for registration of a motor vehicle or heavy trailer under the Road Safety Act 1986 if—

(a) the vehicle or trailer has not previously been registered under that Act; or

(b) the person in whose name the vehicle or trailer is to be registered differs from the person in whose name the vehicle or trailer was last registered;

"application for transfer of registration" means an application for the transfer of registration of a motor vehicle or heavy trailer under the Road Safety Act 1986;

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

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

"motor vehicle" means a motor vehicle within the meaning of the Road Safety Act 1986;

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

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Charges (Australian Capital Territory) Act 1993 of the Commonwealth;

"passenger car" means—

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

(b) a motor vehicle that—

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

(ii) is constructed either on a truck chassis or with special features for off-road operation—

but does not include—

(c) a motor cycle; or

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

(e) a motor vehicle constructed for the carriage of passengers and equipped to seat more than 8 adults (including the driver);

"registered operator" has the same meaning as in the Road Safety Act 1986;

"registered used car dealer" means a person registered under section 137AG;

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"special dealer" means a person who would be a motor car trader within the meaning of the Motor Car Traders Act 1986 but for the fact that the motor vehicles in which the person trades are not motor cars within the meaning of that Act.

137AB. Lodgment of statement of dutiable value

(1) A person who is required by law to make an application for registration or transfer of registration of a motor vehicle or heavy trailer under the Road Safety Act 1986 must lodge with the application a statement of the dutiable value of the motor vehicle or heavy trailer, unless the application is exempt from duty under this Act.

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

137AC. Who is liable to pay the duty?

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

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

137AD. When does duty become payable?

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

137AE. What is the dutiable value of a motor vehicle or heavy trailer?

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

(a) the consideration in money or money's worth given for the acquisition of the motor vehicle or heavy trailer; or

(b) the price at which the motor vehicle or heavy trailer might reasonably be sold, free from encumbrances, in the open market—

whichever is the greater.

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

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

(a) a statement of the dutiable value of the motor vehicle or heavy trailer is lodged in accordance with section 137AB and duty is duly paid on the application; or

(b) the application for registration of the motor vehicle or heavy trailer is exempt from duty under this Act.

(2) In this section "registration authority" means the person who has the responsibility for the registration of motor vehicles or heavy trailers in Victoria.

137AG. Registration of motor traders and dealers

(1) The Comptroller of Stamps, on written application by a licensed motor car trader or a special dealer, must register the trader or dealer as a registered used car dealer and give the trader or dealer a code number.

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

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(3) Registration has effect on and from the date specified in the notice under sub-section (2).

137AH. Cessation of business and cancellation of registration

(1) A registered used car dealer who—

(a) ceases to be a licensed motor car trader or special dealer (as the case may be); or

(b) wishes to cease being registered under section 137AG—

must give written notice to the Comptroller of Stamps before or forthwith on so ceasing and must lodge the return required to be lodged under section 137AK and pay the duty required to be paid on that return, on or before the 21st day of the month following the month in which the notice is given.

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

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

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

137AI. Register of used car dealers

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

(2) Anyone may inspect the register without charge at the Comptroller's principal office during the hours that office is open to the public.

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137AJ. Endorsement of code number on application

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

Penalty: 100 penalty units.

137AK. Monthly returns and payment of duty

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

(a) lodge a return with the Comptroller of Stamps; and

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

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

(3) The Comptroller may require a return under this section to be verified in the manner approved by the Comptroller.

137AL. Recovery of duty by registered used car dealer

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(1) A registered used car dealer may require a person who acquires a motor vehicle or heavy trailer from the dealer to pay the dealer an amount equal to the duty payable by the dealer under section 137AK(1)(b) by reference to the motor vehicle or heavy trailer.

(2) The requirement is duly made if it is contained in a written request given to the person that specifies the amount of the duty.

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

137AM. Unauthorised endorsement of code number

A person must not endorse the code number of a registered used car dealer on an application for transfer of registration of a motor vehicle or heavy trailer unless the person is required to do so by or under this subdivision.

Penalty: 100 penalty units.

137AN. Duty on statement of change of use

(1) This section imposes duty if—

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

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

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(2) Within 14 days after there is a change in the predominant use of a motor vehicle or heavy trailer of the kind referred to in sub-section (1), the registered operator of the vehicle or trailer must—

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

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

137AO. Duty on statement of acquisition

(1) This section imposes duty on the acquisition of a motor vehicle or heavy trailer if an application for transfer of registration of the vehicle or trailer is not made within the time required for the lodgment of that application under the Road Safety Act 1986 or regulations under that Act.

(2) If a person acquires a motor vehicle or heavy trailer and does not make an application for transfer of registration of the vehicle or trailer within the time required for the lodgment of that application under the Road Safety Act 1986 or regulations under that Act, the person must, within 7 days after the expiry of that time—

(a) lodge with the Comptroller of Stamps a statement of the acquisition; and

(b) pay duty at the rate of $8 per $200, or part, of the dutiable value of the vehicle or trailer at the time of the acquisition.

(3) If an application referred to in sub-section (2) is subsequently made and duty is paid on the application or the application is not

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chargeable with duty, the person is entitled to a refund of duty paid on the statement under sub-section (2).

137AP. Entitlement to refund

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

(a) the application is exempt from or not chargeable with duty; or

(b) after the duty is paid the application is refused; or

(c) after the duty is paid—

(i) the proposed acquisition of the motor vehicle or heavy trailer does not proceed; and

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

(iii) all money refundable as a result of the acquisition not proceeding has been refunded to the person who proposed to acquire the vehicle or trailer.

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

137AQ. Transitional provision

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For the purposes of exemption (4) under Heading XXI in the Third Schedule, a reference to a previous application to transfer registration of a motor vehicle or heavy trailer includes a reference to a previous notice of acquisition of the vehicle or trailer within the meaning of section 137A as in force immediately before the commencement of section 22 of the State Taxation (Further Amendment) Act 1998.'.

23. New Heading XXI in Third Schedule substituted

For Heading XXI in the Third Schedule to the Stamps Act 1958 substitute—

"XXI—APPLICATIONS FOR REGISTRATION AND TRANSFER OF REGISTRATION OF

MOTOR VEHICLES AND HEAVY TRAILERS

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

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

(b) for a passenger car the dutiable value of which exceeds $45 000—$10 per $200, or part, of the dutiable value of the vehicle;

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

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

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

Exemptions—

(1) An application for transfer of registration of a motor vehicle or heavy trailer made by a person who is beneficially entitled to the vehicle or trailer following the death of the person in whose name it was registered in Victoria.

(2) An application for registration or transfer of registration of a motor vehicle or heavy trailer made by a surviving spouse or de facto spouse who has acquired the vehicle or trailer through an entitlement to the whole or part of the estate of the deceased spouse or de facto spouse.

(3) An application for registration or transfer of registration of a motor vehicle or heavy trailer made by the executor or administrator of a deceased estate for the purpose of—

(a) subsequently transferring the vehicle or trailer to a person who is beneficially entitled to it; or

(b) enabling the subsequent sale of the vehicle or trailer in the course of winding up the estate.

(4) An application for transfer of registration of a motor vehicle or heavy trailer made by a person (other than a registered used car dealer) who acquires the vehicle or trailer from a registered used car dealer if—

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

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previous application to transfer the registration of, the vehicle or trailer; or

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

(5) An application by a registered used car dealer who carries on a business of dealing in motor vehicles for transfer of registration of a motor vehicle or heavy trailer—

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

(b) solely for the purpose of the sale of the vehicle or trailer.

(6) An application by a registered used car dealer who carries on a business of dealing, for the purpose of sale by retail, in motor vehicles or heavy trailers for transfer of registration of a motor vehicle or heavy trailer—

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

(i) the sale of the vehicle or trailer;

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

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

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

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

(b) solely for the purpose of the sale of the vehicle or trailer.

(8) An application by a licensed motor car trader who carries on a business of dealing, for the purpose of sale by retail, in motor vehicles or heavy trailers for registration of a motor vehicle or heavy trailer—

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

(i) the sale of the vehicle or trailer;

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

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

(9) An application for registration or transfer of registration of a motor vehicle or heavy trailer made by a person who holds a licence under a law of another State or a Territory that corresponds to the Motor Car Traders Act 1986 but does not hold a licence under that Act if the application is made in the course of carrying out the business to which the licence relates.

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

(11) An application for transfer of registration of a motor vehicle or heavy trailer made by a shareholder of a company in the course of a distribution of assets of the company as a consequence of the winding up or the reduction of the capital of the company.

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

(a) both people are married to each other; or

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

(c) both people are de facto spouses of each other; or

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

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

(13) An application for registration or transfer of registration of a motor vehicle or heavy trailer made by a person if the Comptroller is satisfied that—

(a) the application is made solely to transfer the vehicle or trailer to a trustee under an instrument of settlement; and

(b) the instrument of settlement is made because of the breakdown of the marriage of the settlor; and

(c) the person from whom the vehicle or trailer was acquired was a party to the marriage; and

(d) no person other than a party to the marriage or a child of a party to the marriage is a beneficiary under the instrument of settlement.

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

(a) by a person for whom, when a minor, the vehicle or trailer was acquired by another person as nominee or trustee; and

(b) to give effect to the transfer of the vehicle or trailer from the nominee or trustee to the person after ceasing to be a minor.

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

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

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

(16) An application for registration of a motor vehicle or heavy trailer by a person if—

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

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

24. Marketable security duty

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

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

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

(c) in clause 1 for paragraphs (b), (c) and (d) substitute—

"(b) a share, or an interest in a share, in a corporation incorporated outside Australia, being a share that is kept on the Australian register kept in Victoria; or

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

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being a right or interest that is registered on a register kept in Victoria; or

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

(i) is a Victorian registered company; or

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

(d) after clause 1(da) insert—

"; or

(db) an instalment warrant providing beneficial ownership in respect of shares in a Victorian registered company—";

(e) in exemption (3)—

(i) after paragraph (a)(iv) insert—

"(v) instalment warrants; or";

(ii) after paragraph (b)(iv) insert—

"; or

(v) instalment warrants—";

(f) in exemption (20) for "Division 4B of Part 2.4 of the Corporations Law" substitute "Division 2 of Part 2J.1 of the Corporations Law (other than a buy-back that is effected by the purchaser under one or more

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

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

"(21) A transfer of the underlying marketable security to a trustee by reason of the issue of an instalment warrant by a warrant issuer to the applicant or the nominee of the applicant.

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

25. Sales of sheep and goats

In Heading XVIIA in the Third Schedule to the Stamps Act 1958—

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

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

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

In section 45 of the State Taxation (Further Amendment) Act 1995 for paragraph (d) substitute—

'(d) in Heading IV(A) in the Third Schedule, in clause 1 after "(4AA)" insert "or (5)".'.

_______________

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PART 8—TAXATION ADMINISTRATION ACT 1997

27. Special arrangements may include interest

After section 41(2)(g) of the Taxation Administration Act 1997 insert—

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

28. Permitted disclosures of information

In section 92(e)(ii) of the Taxation Administration Act 1997 for "police officer" substitute "member of the police force".

29. Objection

After section 96(2) of the Taxation Administration Act 1997 insert—

"(3) An applicant under section 25(1) of the Financial Institutions Duty Act 1982 may lodge a written objection with the Commissioner if the applicant is dissatisfied with a decision of the Commissioner under section 25(3) of that Act not to issue a certificate of approval of an account kept in the name of the applicant as a special account on the ground that the applicant is not a non-bank financial institution within the meaning of paragraph (d), (da), (db) or (dc) of section 25(12) of that Act.

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

No. 40/1997 as amended by Nos 86/1997, 93/1997, 46/1998, 48/1998 and 52/1998.

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30. Certificate evidence

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

"(ca) that an amount of tax or interest specified in the certificate is payable by a person specified in the certificate in accordance with a special arrangement approved under section 39;".

31. Statute law revision

Section 138 of and Schedule 2 to the Taxation Administration Act 1997 are repealed.

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NOTES

† Minister's second reading speech—

Legislative Assembly: 27 October 1998

Legislative Council: 12 November 1998

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

Notes

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