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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia First Home Owner Grant Amendment Bill 2009 CONTENTS Part 1 -- Preliminary 1. Short title 2 2. Commencement 2 3. Act amended 2 Part 2 -- Amendments for first home owners boost 4. Section 14A replaced 3 14A. Terms used 3 5. Section 14B amended 4 6. Section 19 amended 6 7. Section 28 amended 6 Part 3 -- Amendments to cap value of eligible transactions 8. Section 3 amended 8 9. Section 14 amended 9 10. Sections 14AA to 14AE inserted 10 14AA. Commencement and completion of transaction 10 14AB. Term used: consideration 11 14AC. Term used: total value 11 14AD. Term used: cap amount 12 14AE. Term used: unencumbered value 13 11. Section 18 amended 14 12. Section 26 amended 15 13. Section 41A inserted 16 41A. Power to have valuation made 16 14. Section 52 amended 16 15. Other provisions amended 17 021--1 page i First Home Owner Grant Amendment Bill 2009 Contents Part 4 -- Other amendments 16. Section 26 amended 18 17. Section 30 amended 18 18. Section 32 replaced 20 32. Payment following determination of review 20 19. Section 55 amended 21 page ii Western Australia LEGISLATIVE ASSEMBLY First Home Owner Grant Amendment Bill 2009 A Bill for An Act to amend the First Home Owner Grant Act 2000. The Parliament of Western Australia enacts as follows: page 1 First Home Owner Grant Amendment Bill 2009 Part 1 Preliminary s. 1 1 Part 1 -- Preliminary 2 1. Short title 3 This is the First Home Owner Grant Amendment Act 2009. 4 2. Commencement 5 This Act comes into operation, or is deemed to have come into 6 operation, as follows -- 7 (a) sections 1 and 2 come into operation on the day on 8 which this Act receives the Royal Assent (assent day); 9 (b) section 3 and Part 2 are deemed to have come into 10 operation on 14 October 2008; 11 (c) Part 3 comes into operation on a day fixed by 12 proclamation; 13 (d) Part 4 comes into operation on the day after assent day. 14 3. Act amended 15 This Act amends the First Home Owner Grant Act 2000. page 2 First Home Owner Grant Amendment Bill 2009 Amendments for first home owners boost Part 2 s. 4 1 Part 2 -- Amendments for first home owners boost 2 4. Section 14A replaced 3 Delete section 14A and insert: 4 5 14A. Terms used 6 In this Subdivision -- 7 cut-off date, of a special eligible transaction that is a 8 class 4 or class 5 eligible transaction, means whichever 9 is the later of -- 10 (a) 30 June 2009; or 11 (b) such date, if any, as is prescribed for the 12 purposes of this definition; 13 established home means a home that is not a new 14 home or a substantially renovated home; 15 new home means a home that has not been previously 16 occupied or sold as a place of residence; 17 relevant date of a special eligible transaction means -- 18 (a) in relation to a class 1 eligible transaction -- 19 1 May 2003; or 20 (b) in relation to a class 2 eligible transaction -- 21 1 January 2004; or 22 (c) in relation to a class 3 eligible transaction -- 23 1 July 2004; or 24 (d) in relation to a class 5 eligible transaction -- 25 the date that is 18 months after the cut-off date 26 applicable at the commencement date of the 27 eligible transaction; 28 special eligible transaction means an eligible 29 transaction of a class referred to in section 14B; page 3 First Home Owner Grant Amendment Bill 2009 Part 2 Amendments for first home owners boost s. 5 1 substantially renovated home means a renovated home 2 that is the subject of a contract for purchase where -- 3 (a) the sale of the home under that contract is, 4 under the A New Tax System (Goods and 5 Services Tax) Act 1999 (Commonwealth), a 6 taxable supply as a sale of new residential 7 premises within the meaning of 8 section 40-75(1)(b) of that Act; and 9 (b) the home, as so renovated, has not been 10 previously occupied or sold as a place of 11 residence. 12 13 5. Section 14B amended 14 (1) Delete section 14B(2) to (4) and insert: 15 16 (2) A class 4 eligible transaction is an eligible transaction 17 the commencement date of which is not before 18 14 October 2008 and not after the cut-off date that is a 19 contract for the purchase of an established home. 20 (3) A class 5 eligible transaction is an eligible transaction 21 the commencement date of which is not before 22 14 October 2008 and not after the cut-off date that is -- 23 (a) a contract for the purchase of a new home or a 24 substantially renovated home; or 25 (b) a comprehensive home building contract for a 26 new home if -- 27 (i) the building work begins within 28 26 weeks after the commencement date; 29 and 30 (ii) the contract provides to the effect that 31 the building work must be completed 32 within 18 months after it begins or, if 33 the contract does not provide for a page 4 First Home Owner Grant Amendment Bill 2009 Amendments for first home owners boost Part 2 s. 5 1 completion date for the building work, it 2 is completed within 18 months after it 3 begins; 4 or 5 (c) the building of a new home by an owner builder 6 if the eligible transaction is completed before 7 the relevant date. 8 (4) The Commissioner may extend the period within which 9 building work is to begin under subsection (3)(b)(i) or 10 be completed under subsection (3)(b)(ii), (3)(c) or 11 (6)(a) if the Commissioner is satisfied that the delay is 12 caused by circumstances beyond the control of the 13 parties. 14 15 (2) Delete section 14B(6) and insert: 16 17 (6) The following eligible transactions are not special 18 eligible transactions -- 19 (a) a contract for the purchase of a new home or a 20 substantially renovated home on a proposed lot 21 on a proposed plan of subdivision of land 22 (including a proposed strata plan or 23 survey-strata plan within the meaning of the 24 Strata Titles Act 1985) unless the contract 25 provides to the effect that the building work 26 must be completed before the relevant date or, 27 if the contract does not provide for a 28 completion date for the building work, it is 29 completed before the relevant date; 30 (b) a contract that the Commissioner is satisfied 31 replaces a contract to purchase the same home, 32 or replaces a comprehensive home building 33 contract to build the same or a substantially page 5 First Home Owner Grant Amendment Bill 2009 Part 2 Amendments for first home owners boost s. 6 1 similar home, if the replaced contract was 2 made -- 3 (i) before 9 March 2001, in respect of a 4 class 1, class 2 or class 3 eligible 5 transaction; or 6 (ii) before 14 October 2008, in respect of a 7 class 4 or class 5 eligible transaction. 8 6. Section 19 amended 9 (1) In section 19(2) delete "section 14B" and insert: 10 11 section 14A 12 13 (2) In section 19(3) in the definition of relevant amount: 14 (a) in paragraph (b) delete "$10 000." and insert: 15 16 $10 000; or 17 18 (b) after paragraph (b) insert: 19 20 (c) in the case of a class 4 eligible transaction 21 within the meaning of section 14B -- $14 000; 22 or 23 (d) in the case of a class 5 eligible transaction 24 within the meaning of section 14B -- $21 000. 25 7. Section 28 amended 26 Delete section 28(1) and insert: 27 28 (1) An objection to a decision on the application is to be 29 lodged -- 30 (a) within 60 days after the date on which notice of 31 the decision is given to the objector; or page 6 First Home Owner Grant Amendment Bill 2009 Amendments for first home owners boost Part 2 s. 7 1 (b) in the case of class 4 or class 5 eligible 2 transaction within the meaning of section 14B, 3 within 60 days after the later of -- 4 (i) the date on which notice of the decision 5 is given to the objector; or 6 (ii) the day on which the First Home Owner 7 Grant Amendment Act 2009 receives the 8 Royal Assent. 9 page 7 First Home Owner Grant Amendment Bill 2009 Part 3 Amendments to cap value of eligible transactions s. 8 1 Part 3 -- Amendments to cap value of 2 eligible transactions 3 8. Section 3 amended 4 (1) In section 3(1) delete the definitions of: 5 commencement date 6 completed 7 consideration 8 (2) In section 3(1) insert in alphabetical order: 9 10 cap amount has the meaning given by section 14AD; 11 commencement date, in relation to a transaction, has 12 the meaning given by section 14AA; 13 completed, in relation to a transaction, has the meaning 14 given by section 14AA; 15 consideration, in relation to a transaction, has the 16 meaning given by section 14AB; 17 property means -- 18 (a) a home; or 19 (b) land; or 20 (c) a relevant interest in land; 21 total value, in relation to a transaction, has the meaning 22 given by section 14AC(1); 23 transaction means -- 24 (a) a contract for the purchase of a home in the 25 State; or 26 (b) a comprehensive home building contract made 27 by the owner of land in the State, or a person 28 who will on completion of the contract be the 29 owner of land in the State, to have a home built 30 on the land; or page 8 First Home Owner Grant Amendment Bill 2009 Amendments to cap value of eligible transactions Part 3 s. 9 1 (c) the building of a home in the State by an owner 2 builder; 3 unencumbered value has the meaning given by 4 section 14AE(1). 5 6 (3) In section 3(1) in the definition of the home delete "relates." 7 and insert: 8 9 relates; 10 11 9. Section 14 amended 12 (1) Delete section 14(1) and insert: 13 14 (1) An eligible transaction is a transaction -- 15 (a) with a commencement date on or after 16 1 July 2000; and 17 (b) that has a total value that is less than or equal to 18 any cap amount that applies -- 19 (i) in the case of a contract -- on the 20 commencement date; or 21 (ii) in the case of the building of a home by 22 an owner builder -- on the date the 23 transaction is completed. 24 25 (2) Delete section 14(5) to (8) and insert: 26 27 (5) If the commencement date of the building of a home by 28 an owner builder is before the date the First Home 29 Owner Grant Amendment Act 2009 section 9 comes 30 into operation no cap amount applies to the transaction. 31 page 9 First Home Owner Grant Amendment Bill 2009 Part 3 Amendments to cap value of eligible transactions s. 10 1 10. Sections 14AA to 14AE inserted 2 At the end of Part 2 Division 3 Subdivision 1 insert: 3 4 14AA. Commencement and completion of transaction 5 (1) The commencement date of a transaction is -- 6 (a) in the case of a contract -- the date when the 7 contract is made; or 8 (b) in the case of the building of a home by an 9 owner builder -- 10 (i) the date when laying the foundations for 11 the home begins; or 12 (ii) another date (on or after 1 July 2000) 13 the Commissioner considers appropriate 14 in the circumstances of the case. 15 (2) Subject to any qualifications prescribed by the 16 regulations, a transaction is completed when -- 17 (a) in the case of a contract for the purchase of a 18 home -- 19 (i) the purchaser becomes entitled to 20 possession of the home under the 21 contract; and 22 (ii) if the purchaser is to obtain a registered 23 title to the land on which the home is 24 situated -- the necessary steps to obtain 25 registration of the purchaser's title have 26 been taken; 27 or 28 (b) in the case of a contract to have a home built -- 29 the building is ready for occupation as a place 30 of residence; or 31 (c) in the case of the building of a home by an 32 owner builder -- the building is ready for 33 occupation as a place of residence. page 10 First Home Owner Grant Amendment Bill 2009 Amendments to cap value of eligible transactions Part 3 s. 10 1 (3) If a person purchases a movable building and intends to 2 use it as a place of residence on land in which the 3 person has a relevant interest but on which the building 4 is not situated at the time of purchase -- 5 (a) this Act applies as if the person were an owner 6 builder building a home on the land; and 7 (b) the commencement date of the transaction is 8 taken to be the date of the contract to purchase 9 the movable building; and 10 (c) the transaction is taken to be completed when 11 the movable building is ready for occupation as 12 a place of residence on land in which the 13 purchaser has a relevant interest. 14 14AB. Term used: consideration 15 The consideration for a transaction is -- 16 (a) in the case of a contract for the purchase of a 17 home -- the consideration for the purchase; or 18 (b) in the case of a comprehensive home building 19 contract -- the total consideration payable for 20 the building work; or 21 (c) in the case of the building of a home by an 22 owner builder -- the actual costs to the owner 23 of carrying out the work, excluding any 24 allowance for the owner builder's own labour. 25 14AC. Term used: total value 26 (1) The total value of a transaction is -- 27 (a) in the case of a contract for the purchase of a 28 home, the greater of -- 29 (i) the consideration for the transaction; 30 and page 11 First Home Owner Grant Amendment Bill 2009 Part 3 Amendments to cap value of eligible transactions s. 10 1 (ii) the unencumbered value, at the 2 commencement date, of the property the 3 subject of the transaction; 4 or 5 (b) in the case of a comprehensive home building 6 contract, the amount calculated by adding -- 7 (i) the consideration for the transaction; 8 and 9 (ii) the value, at the commencement date, of 10 the relevant interest in the land on 11 which the home is to be built; 12 or 13 (c) in the case of the building of a home by an 14 owner builder, the amount calculated by 15 adding -- 16 (i) the unencumbered value, at the date the 17 transaction is completed, of the home; 18 and 19 (ii) the value, at the date the transaction is 20 completed, of the relevant interest in the 21 land on which the home is built. 22 (2) For the purposes of subsections (1)(b)(ii) and (1)(c)(ii) 23 the value of a relevant interest in land is the greater 24 of -- 25 (a) the consideration paid for the interest; and 26 (b) the unencumbered value of the interest. 27 14AD. Term used: cap amount 28 The cap amount that applies in respect of a transaction 29 is -- 30 (a) $750 000; or 31 (b) if another amount is prescribed for the purposes 32 of this section -- that other amount. page 12 First Home Owner Grant Amendment Bill 2009 Amendments to cap value of eligible transactions Part 3 s. 10 1 14AE. Term used: unencumbered value 2 (1) The unencumbered value of property is the value of 3 the property determined without regard to -- 4 (a) any encumbrance to which the property is 5 subject, whether contingently or otherwise; or 6 (b) any arrangement -- 7 (i) the parties to which are not dealing with 8 each other at arm's length; and 9 (ii) that results in the reduction of the value 10 of the property; 11 or 12 (c) any scheme or arrangement for which a 13 significant purpose of any party to the scheme 14 or arrangement was, in the opinion of the 15 Commissioner, the reduction of the value of the 16 property; or 17 (d) where the property is held by a person on trust 18 as guardian for another person who is under a 19 legal disability -- the liabilities of the trust, 20 including the liability to indemnify the trustee. 21 (2) For the purposes of subsection (1)(c), the 22 Commissioner may have regard to -- 23 (a) the duration of the scheme or arrangement 24 before the commencement date of the 25 transaction to which the property relates; and 26 (b) whether there is any commercial efficacy to the 27 making of the scheme or arrangement other 28 than to reduce the value of the property; and 29 (c) any other matters the Commissioner considers 30 relevant. 31 page 13 First Home Owner Grant Amendment Bill 2009 Part 3 Amendments to cap value of eligible transactions s. 11 1 11. Section 18 amended 2 (1) Delete section 18(2)(b) and insert: 3 4 (b) the interests of the State can be adequately 5 protected by conditions requiring repayment of 6 the grant if -- 7 (i) the transaction is not completed within a 8 reasonable time; or 9 (ii) on completion of the transaction, the 10 total value of the transaction exceeds the 11 cap amount that applies in respect of the 12 transaction. 13 14 (2) After section 18(2) insert: 15 16 (3) A payment authorised under subsection (2) is made on 17 condition that, if the applicant becomes aware that the 18 total value of the transaction exceeds, or will exceed, 19 the cap amount that applies in respect of the 20 transaction, the applicant must within 30 days after the 21 day on which the applicant becomes so aware -- 22 (a) give written notice of that fact to the 23 Commissioner; and 24 (b) either repay the amount of the grant, or make 25 an application under section 52(2) for the 26 Commissioner to approve an arrangement for 27 the repayment of the amount of the grant. 28 (4) In the case of a joint application, each joint applicant is 29 individually liable to comply with subsection (3)(a) and 30 (b), but compliance by any one or more of the joint 31 applicants is taken to be compliance by both or all of 32 them. page 14 First Home Owner Grant Amendment Bill 2009 Amendments to cap value of eligible transactions Part 3 s. 12 1 (5) The Commissioner may, by written notice, impose a 2 penalty on an applicant if the applicant -- 3 (a) does not comply with subsection (3)(b) within 4 the 30 day period mentioned in subsection (3); 5 or 6 (b) does not repay the amount of the grant in 7 accordance with an arrangement approved for 8 the purposes of subsection (3)(b). 9 (6) The amount of a penalty imposed under subsection (5) 10 is not to exceed the amount that the applicant is 11 required to repay under subsection (3). 12 (7) Subject to section 52, the amount of a penalty imposed 13 under subsection (5) must be paid by the applicant 14 within 28 days after the date on which notice of the 15 penalty is given to the applicant. 16 17 12. Section 26 amended 18 In section 26 in the definition of decision on the application: 19 (a) in paragraph (c) before "21(2)" insert: 20 21 18(3) or 22 23 (b) in paragraph (d) before "21(5)" insert: 24 25 18(5), 26 page 15 First Home Owner Grant Amendment Bill 2009 Part 3 Amendments to cap value of eligible transactions s. 13 1 13. Section 41A inserted 2 After section 40 insert: 3 4 41A. Power to have valuation made 5 (1) In this section -- 6 applicant, in relation to a transaction, means a person 7 who made an application in respect of the transaction; 8 licensed valuer means a person licensed under the 9 Land Valuers Licensing Act 1978. 10 (2) For the purposes of determining whether a transaction 11 is an eligible transaction, the Commissioner may -- 12 (a) have a valuation made of any property or 13 consideration; or 14 (b) adopt any available valuation of the property or 15 consideration by a licensed valuer that the 16 Commissioner considers appropriate. 17 (3) The Commissioner may have a valuation made, or 18 adopt a valuation, regardless of whether -- 19 (a) the Commissioner has required the applicant to 20 provide information under section 40 about the 21 value of the property or consideration; or 22 (b) the applicant has complied with such a 23 requirement. 24 25 14. Section 52 amended 26 In section 52(1)(a) delete "section 21" and insert: 27 28 section 18, 21 29 page 16 First Home Owner Grant Amendment Bill 2009 Amendments to cap value of eligible transactions Part 3 s. 15 1 15. Other provisions amended 2 In the provisions listed in the Table delete "eligible". 3 Table s. 3(1) def. of de facto partner s. 7(1) s. 7A s. 7B s. 12(3) s. 15(5)(a) and (b) s. 16(3) def. of interested person s. 19(1)(a) page 17 First Home Owner Grant Amendment Bill 2009 Part 4 Other amendments s. 16 1 Part 4 -- Other amendments 2 16. Section 26 amended 3 In section 26 delete the definition of decision on the application 4 and insert: 5 6 decision on the application, in relation to an 7 application for a first home owner grant, includes -- 8 (a) a decision to vary or reverse an earlier decision; 9 and 10 (b) a requirement under section 51(1) to repay an 11 amount paid on the application; and 12 (c) a requirement to repay an amount paid on an 13 application because of a failure to comply with 14 a condition referred to in section 21(2); and 15 (d) an imposition of a penalty under section 21(5) 16 or 51(2) or (3); 17 18 17. Section 30 amended 19 (1) Before section 30(1) insert: 20 21 (1A) In this section -- 22 approved, in relation to a date for a payment or 23 repayment, means the date, on or after the date of the 24 decision on the objection, on which the Commissioner 25 approves the payment or repayment. 26 27 (2) Delete section 30(3) and insert: 28 29 (3) If, as a result of a decision on an objection, a decision 30 not to authorise the payment of a first home owner 31 grant is reversed, interest at the prescribed rate is page 18 First Home Owner Grant Amendment Bill 2009 Other amendments Part 4 s. 17 1 payable on the amount of the grant from the date of the 2 decision not to authorise the payment to the date 3 approved for the payment. 4 (4) If, as a result of a decision on an objection, an amount 5 of a grant repaid by an applicant is to be repaid to the 6 applicant, the following amounts are payable to the 7 applicant -- 8 (a) the amount of the grant repaid by the applicant; 9 (b) any interest paid by the applicant in respect of a 10 written arrangement approved by the 11 Commissioner under section 52 that relates to 12 an amount referred to in paragraph (a); 13 (c) any amount paid by the applicant in respect of 14 the registration or cancellation of registration of 15 a memorial as required by section 60 in 16 connection with the repayment of the grant; 17 (d) interest at the prescribed rate on the amounts 18 payable to the applicant under paragraphs (a) to 19 (c) from the date the amount was paid by the 20 applicant to the date approved for the 21 repayment. 22 (5) If, as the result of a decision on an objection, an 23 amount of penalty paid by an applicant is to be repaid 24 to the applicant, the following amounts are payable to 25 the applicant -- 26 (a) the amount of penalty to be repaid; 27 (b) any interest paid by the applicant in respect of a 28 written agreement approved by the 29 Commissioner under section 52 that relates to 30 an amount referred to in paragraph (a); 31 (c) interest at the prescribed rate on the amounts 32 payable to the applicant under paragraphs (a) 33 and (b) from the date the amount was paid by page 19 First Home Owner Grant Amendment Bill 2009 Part 4 Other amendments s. 18 1 the applicant to the date approved for the 2 repayment. 3 4 18. Section 32 replaced 5 Delete section 32 and insert: 6 7 32. Payment following determination of review 8 (1) In this section -- 9 approved, in relation to a date for a payment or 10 repayment, means the date, on or after the date of the 11 decision resulting from the application for review, on 12 which the Commissioner approves the payment or 13 repayment. 14 (2) If, as the result of an application for a review of a 15 decision, a decision not to authorise the payment of a 16 first home owner grant is reversed, interest at the 17 prescribed rate is payable on the amount of the grant 18 from the date of the decision not to authorise the 19 payment to the date approved for the payment. 20 (3) If, as the result of an application for a review of a 21 decision, an amount of a grant repaid by an applicant is 22 to be repaid to the applicant, the following amounts are 23 payable to the applicant -- 24 (a) the amount of the grant repaid by the applicant; 25 (b) any interest paid by the applicant in respect of a 26 written arrangement approved by the 27 Commissioner under section 52 that relates to 28 an amount referred to in paragraph (a); 29 (c) any amount paid by the applicant in respect of 30 the registration or cancellation of registration of 31 a memorial as required by section 60 in 32 connection with the repayment of the grant; page 20 First Home Owner Grant Amendment Bill 2009 Other amendments Part 4 s. 19 1 (d) interest at the prescribed rate on the amounts 2 payable to the applicant under paragraphs (a) to 3 (c) from the date the amount was paid by the 4 applicant to the date approved for the 5 repayment. 6 (4) If, as the result of an application for a review of a 7 decision, an amount of penalty paid by an applicant is 8 to be repaid to the applicant, the following amounts are 9 payable to the applicant -- 10 (a) the amount of penalty to be repaid; 11 (b) any interest paid by the applicant in respect of a 12 written agreement approved by the 13 Commissioner under section 52 that relates to 14 an amount referred to in paragraph (a); 15 (c) interest at the prescribed rate on the amounts 16 payable to the applicant under paragraphs (a) 17 and (b) from the date the amount was paid by 18 the applicant to the date approved for the 19 repayment. 20 21 19. Section 55 amended 22 (1) After section 55(1) insert: 23 24 (2A) The Commissioner may lodge with the Registrar a 25 memorial signed by the Commissioner if -- 26 (a) a payment of a first home owner grant 27 authorised under section 21 has been made to 28 an applicant; and 29 (b) the applicant holds a relevant interest in relation 30 to the home for which the grant was sought; 31 and 32 (c) the Commissioner reasonably believes that the 33 applicant intends to sell the home before the page 21 First Home Owner Grant Amendment Bill 2009 Part 4 Other amendments s. 19 1 applicant has complied with the residence 2 requirements. 3 4 (2) In section 55(2) delete "the memorial" and insert: 5 6 a memorial lodged under subsection (1) 7 8 (3) After section 55(2) insert: 9 10 (3A) When a memorial lodged under subsection (2A) is 11 registered by the Registrar, a charge for the amount of 12 the first home owner grant that was paid to the 13 applicant is created on the relevant interest. 14 15
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