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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment Bill 2005
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- The Pay-roll Tax Assessment
Act 2002 amended
3. The Act amended 3
4. Section 31 amended 3
Part 3 -- The Stamp Act 1921 amended
5. The Act amended 5
6. Section 7 amended 5
7. Section 27 amended 6
8. Section 73D amended 6
9. Section 75AE amended 6
10. Section 75AG amended 8
11. Section 75J amended 8
12. Section 75JA amended 9
13. Section 75JB amended and transitional provision 9
14. Section 75JC amended 12
15. Section 75JD amended 13
16. Section 75JE amended 13
17. Section 75JG amended 13
18. Sections 76AI, 76AP, 76AR, 76ATB, 76ATI and
76ATK amended 13
19. Sections 76AI and 76ATB amended 14
20. Sections 76AP and 76ATI amended 14
21. Sections 76AR and 76ATK amended 15
22. Section 76AI amended 16
043--2 page i
Revenue Laws Amendment Bill 2005
Contents
23. Section 76AP amended 16
24. Section 76ATB amended 17
25. Section 76ATI amended 18
26. Section 82 amended 18
27. Section 86 amended 19
28. Section 112IB amended 20
29. Third Schedule amended 20
30. Saving and transitional provisions 20
page ii
Western Australia
LEGISLATIVE ASSEMBLY
(As amended in Committee)
Revenue Laws Amendment Bill 2005
A Bill for
An Act to amend the Pay-roll Tax Assessment Act 2002 and the Stamp
Act 1921, and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment Bill 2005
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This is the Revenue Laws Amendment Act 2005.
2. Commencement
5 (1) Subject to this section, this Act comes into operation on the day
on which it receives the Royal Assent.
(2) Sections 4, 8, 11(1), 13(2) and (3) and sections 18 to 25 are
deemed to have come into operation on 18 May 2005.
(3) Sections 27 and 29 are deemed to have come into operation on
10 1 January 2004.
(4) Section 28 is deemed to have come into operation on
1 July 2004.
page 2
Revenue Laws Amendment Bill 2005
The Pay-roll Tax Assessment Act 2002 amended Part 2
s. 3
Part 2 -- The Pay-roll Tax Assessment
Act 2002 amended
3. The Act amended
The amendments in this Part are to the Pay-roll Tax Assessment
5 Act 2002*.
[* Act No. 48 of 2002.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 327.]
4. Section 31 amended
10 (1) Section 31(1) is amended as follows:
(a) by deleting "a business" and inserting instead --
" one or more businesses ";
(b) by inserting after "other person or persons" in both
places where it occurs --
15 " (separately, together or in any other combination) ".
(2) Section 31(2)(a) is amended as follows:
(a) by deleting "a business" and inserting instead --
" one or more businesses ";
(b) by deleting "persons, whether alone or together with"
20 and inserting instead --
"
persons (separately, together or in any other
combination), whether or not with
".
25 (3) Section 31(3) is amended as follows:
(a) by deleting "implied and" and inserting instead --
" implied, ";
page 3
Revenue Laws Amendment Bill 2005
Part 2 The Pay-roll Tax Assessment Act 2002 amended
s. 4
(b) by deleting "or goods and services." and inserting
instead --
"
or goods and services, and whether or not it provides
5 for duties to be performed by the employees or
specifies the duties to be performed by them.
".
page 4
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 5
Part 3 -- The Stamp Act 1921 amended
5. The Act amended
The amendments in this Part are to the Stamp Act 1921*.
[* Reprint 14 as at 12 September 2003.
5 For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 426.]
6. Section 7 amended
(1) Section 7(1)(d) is deleted and the following paragraph is
inserted instead --
10 "
(d) family members;
".
(2) After section 7(2) the following subsection is inserted --
"
15 (3) For the purposes of subsection (1)(d), 2 persons are
"family members" if, in relation to one person, the
other person is --
(a) a child or remoter lineal descendant of the
person;
20 (b) a parent or remoter lineal ancestor of the
person;
(c) a brother or sister of the person or remoter
lineal descendant of a brother or sister of the
person;
25 (d) an aunt or uncle of the person;
(e) the spouse, former spouse, de facto partner or
former de facto partner of the person;
(f) a family member referred to in paragraph (a),
(b), (c) or (d) of a person referred to in
30 paragraph (e); or
page 5
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 7
(g) the spouse or de facto partner of a person
referred to in paragraph (a), (b), (c) or (d).
".
7. Section 27 amended
5 Section 27(2)(b)(i) is amended by inserting after
"disposition" --
" or transfer ".
8. Section 73D amended
After section 73D(2) the following subsection is inserted --
10 "
(3) For the purposes of assessing duty under this section,
the exemption in item 2(1) of the Third Schedule does
not apply.
".
15 9. Section 75AE amended
(1) Section 75AE(3) is amended by deleting the definition of
"eligible purchaser" and inserting instead --
"
"eligible purchaser", in relation to a business
20 property, means a person who --
(a) is not a government body;
(b) after purchasing the property will carry on
the business undertaking that is or is part of
the property; and
25 (c) intends to carry on that business for an
indefinite period;
page 6
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 9
"eligible purchaser", in relation to a residential
property, means --
(a) an individual who --
(i) occupies, or after purchasing the
5 property will occupy, the dwellinghouse
on the property as his or her principal
place of residence;
(ii) intends to so occupy the dwellinghouse
for an indefinite period; and
10 (iii) is not acquiring, and does not intend to
hold, the property as agent, trustee or
otherwise on behalf of another person;
or
(b) a trustee who is acquiring, and intends to
15 hold, the property in trust for one or more
disabled beneficiaries, if at least one disabled
beneficiary of the trust uses, or after the
property is purchased will use, the property
as his or her principal place of residence;
20 ".
(2) After section 75AE(3) the following subsections are inserted --
"
(4) In paragraph (b) of the definition of "eligible
purchaser", as defined in relation to residential
25 property --
"disabled beneficiary" has the meaning given to that
term in clause 1 of the Glossary at the end of the
Land Tax Assessment Act 2002;
"trustee" has the meaning given to that term in
30 clause 1 of the Glossary at the end of the Land Tax
Assessment Act 2002.
(5) In the case of the definition of "trustee", subsection (4)
has effect despite section 63.
".
page 7
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 10
10. Section 75AG amended
After section 75AG(1) the following subsection is inserted --
"
(1a) Subsection (1) does not apply to an instrument of
5 transfer of property referred to in the Second Schedule
item 4(2) or (3) if --
(a) the unencumbered value of the land and home
(in the case of property referred to in item 4(2))
exceeds $350 000; or
10 (b) the unencumbered value of the land (in the case
of property referred to in item 4(3)) exceeds
$200 000.
".
11. Section 75J amended
15 (1) After section 75J(1) the following subsection is inserted --
"
(1a) For the purposes of this Part a section 31B or 31C
statement is taken to have been executed on the day on
which the conveyance, transfer or assignment to which
20 it relates occurred.
".
(2) Section 75J(3) is amended by deleting "corporate." and
inserting instead --
"
25 corporate or issued share capital to which
subsection (4) applies.
".
page 8
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 12
(3) After section 75J(3) the following subsection is inserted --
"
(4) This subsection applies to issued share capital of a
body corporate if the Commissioner is satisfied --
5 (a) that the body corporate is not carried on for the
purposes of profit or gain to its members;
(b) that the issued share capital of the body
corporate carries no right, or a limited right, for
its members to participate in the distribution of
10 income and capital of the body corporate; and
(c) that the non-existence or limitation of that right
is not part of an arrangement having as its
purpose, or one of its purposes, the reduction of
duty that might otherwise become payable.
15 ".
12. Section 75JA amended
Section 75JA(4) and (6) are repealed.
13. Section 75JB amended and transitional provision
(1) Before section 75JB(1)(d)(ii) the following subparagraph is
20 inserted --
"
(i) A and B became associated in the
circumstances of an acquisition
described in subsection (1) of
25 section 75JA (B being "the transferee"
referred to in that subsection), a
Part IIIBA statement in respect of that
acquisition was exempted under
section 75JA(2) and section 75JF has
30 not become applicable to that statement;
".
page 9
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 13
(2) After section 75JB(1) the following subsection is inserted --
"
(1a) If, in relation to an instrument executed on or after
18 May 2005 (other than one executed in reliance on a
5 determination made under section 75JC(4) before that
day), C's ownership of the issued share capital of B
referred to in subparagraph (iv) of subsection (1)(d) is
indirect, this section does not apply by virtue of that
subparagraph unless this section would have applied if
10 the beneficial interest had been conveyed, transferred
or assigned --
(a) from A to C; and
(b) from C to B.
".
15 (3) After section 75JB(3) the following subsection is inserted --
"
(3aa) In determining whether this section applies for the
purposes of subsection (3)(b), the reference in
subsection (1)(d) to the date of execution of the
20 instrument is taken to be a reference to the date of the
relevant acquisition.
".
(4) Section 75JB(4) is amended as follows:
(a) by inserting after paragraph (b) the following
25 paragraph --
"
(ba) section 75J(4) having applied to the issued
share capital of A or B, a change is made to the
purpose for which that body corporate is carried
30 on;
";
page 10
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 13
(b) by deleting "or" after paragraph (c) and inserting --
"
(ca) on or after 18 May 2005 there is a transfer of
A's beneficial interest in shares in B (the
5 "share transfer") such that, if the conveyance,
transfer or assignment referred to in
subsection (1)(a) had occurred after the share
transfer, this section would not have applied to
the instrument effecting the conveyance,
10 transfer or assignment; or
";
(c) by inserting before "or B" --
" or A ".
(5) A notification required under the Stamp Act 1921
15 section 75JB(4) as amended by subsection (4) does not have to
be given before the end of the period of one month after the day
on which this Act receives the Royal Assent.
(6) Section 75JB(5f) is amended by deleting paragraph (ab) and
"and" after it, paragraph (ac) and "the parent body -- " and
20 inserting instead --
"
and
(ab) the relevant circumstances have occurred,
and within 5 years after the execution of the instrument
25 or the date of the relevant acquisition the parent
body --
".
(7) After section 75JB(8) the following subsections are inserted --
"
30 (9) Subject to subsection (10), if --
(aa) an instrument is exempted under subsection (3);
or
page 11
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 14
(ab) an exemption certificate is issued under
subsection (3a) in relation to an instrument,
and section 75J(4) applied to the issued share capital of
A or B, the claw-back applies if the Commissioner is
5 satisfied that within 5 years after the execution of the
instrument or the date of the relevant acquisition that
body corporate has been carried on for the purposes of
profit or gain to its members.
(10) The claw-back under subsection (9) does not apply if
10 the constitution or governing rules of the body
corporate have been changed so that its issued share
capital carries the right to unlimited participation in the
distribution of its income and capital.
(11) If --
15 (aa) an instrument is exempted under subsection (3);
or
(ab) an exemption certificate is issued under
subsection (3a) in relation to an instrument,
the claw-back applies if there is a transfer of the kind
20 referred to in subsection (4)(ca) on or after
18 May 2005 and within 5 years after the execution of
the instrument or the date of the relevant acquisition.
".
14. Section 75JC amended
25 (1) Section 75JC(5)(a) is amended by deleting "the draft" and
inserting instead --
" a draft ".
(2) Section 75JC(5)(b) is amended by deleting "the draft" and
inserting instead --
30 "
a draft provided or were described in
information or evidence
".
page 12
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 15
15. Section 75JD amended
After section 75JD(5) the following subsection is inserted --
"
(6) Despite an exemption under section 75JA or 75JB
5 being granted in relation to an instrument or Part IIIBA
statement, the Commissioner must make an assessment
of any penalty tax payable under section 26 of the
Taxation Administration Act 2003 on the instrument or
statement as if the exemption had not been granted.
10 ".
16. Section 75JE amended
Section 75JE(1)(da) is deleted.
17. Section 75JG amended
Section 75JG(3) is amended in paragraph (b)(i) of the penalty
15 by inserting before "has" --
"
, or information or evidence about a
draft instrument or statement,
".
20 18. Sections 76AI, 76AP, 76AR, 76ATB, 76ATI and 76ATK
amended
The provisions set out in the Table to this section are amended
by deleting "greater" and inserting instead --
" not less ".
25 Table
s. 76AI(4)(a) and (c) s. 76ATB(6)(a) and (c)
s. 76AP(4)(b)(ii) and (c)(ii) s. 76ATI(6)(b)(ii) and (c)(ii)
s. 76AR(4)(b)(i) s. 76ATK(4)(b)(i)
page 13
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 19
19. Sections 76AI and 76ATB amended
(1) Sections 76AI(3)(d) and 76ATB(4)(e) are amended by deleting
"by virtue of Division 6 of Part 1.2 of the Corporations Act a
corporation is a subsidiary of the WA company, the
5 shareholding of that WA company in the subsidiary" and
inserting instead --
"
a corporation is a subsidiary of the WA
company by virtue of Division 6 of Part 1.2 of
10 the Corporations Act, or would be a subsidiary
of it by virtue of that Division if "more" in
section 46(a)(ii) and (iii) of the Corporations
Act were deleted and "not less" were inserted
instead, the shareholding of the WA company
15 in the
".
(2) Sections 76AI(4)(a) and 76ATB(6)(a) are amended by inserting
after "Act," --
"
20 or a corporation that would be a subsidiary
corporation by virtue of that Division if "more"
in section 46(a)(ii) and (iii) of the Corporations
Act were deleted and "not less" were inserted
instead,
25 ".
20. Sections 76AP and 76ATI amended
(1) Sections 76AP(4)(b)(i) and 76ATI(6)(b)(i) are amended by
deleting "corporation;" and inserting instead --
"
30 corporation, or that would be a
subsidiary (as so defined) of the
corporation if "more" in
section 46(a)(ii) and (iii) of the
page 14
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 21
Corporations Act were deleted and "not
less" were inserted instead;
".
(2) Sections 76AP(4)(c)(i) and 76ATI(6)(c)(i) are amended by
5 deleting "corporation;" and inserting instead --
"
corporation, or that would be a
subsidiary (as so defined) of the holding
corporation if "more" in
10 section 46(a)(ii) and (iii) of the
Corporations Act were deleted and "not
less" were inserted instead;
".
21. Sections 76AR and 76ATK amended
15 Sections 76AR(4)(a) and 76ATK(4)(a) are amended by deleting
subparagraph (ii) and "or" before it and inserting --
"
(ii) of which a corporation is a subsidiary
by virtue of Division 6 of Part 1.2 of the
20 Corporations Act or would be a
subsidiary by virtue of that Division if
"more" in section 46(a)(ii) and (iii) of
the Corporations Act were deleted and
"not less" were inserted instead; or
25 (iii) which would be entitled if a corporation
were to be wound up to participate in a
distribution of the property of that
corporation to an extent not less than
50% of the value of the distributable
30 property;
".
page 15
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 22
22. Section 76AI amended
(1) Section 76AI(2a) is amended as follows:
(a) after paragraph (b) by deleting "and";
(b) at the end of paragraph (c) by deleting "given." and
5 inserting --
"
given; and
(d) a reference in another provision of this Division
to land and chattels situated in Western
10 Australia to which the WA company is entitled
includes a reference to property so situated to
which it would have been entitled but for the
transaction, or series of transactions, to which
the determination relates.
15 ".
(2) Section 76AI(3) is amended by inserting after paragraph (ba) --
"
(bb) an amount paid or payable to the WA company
or a subsidiary under a contract or agreement
20 referred to in subsection (5)(b);
".
23. Section 76AP amended
(1) Section 76AP(2a) is amended as follows:
(a) after paragraph (b) by deleting "and";
25 (b) at the end of paragraph (c) by deleting "given." and
inserting --
"
given; and
(d) a reference in another provision of this Division
30 to land and chattels situated in Western
Australia to which the corporation is entitled
includes a reference to property so situated to
page 16
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 24
which it would have been entitled but for the
transaction, or series of transactions, to which
the determination relates.
".
5 (2) Section 76AP(3) is amended by inserting after
paragraph (ba) --
"
(bb) an amount paid or payable to the corporation or
the trustee or other corporation referred to in
10 subsection (4) under a contract or agreement
referred to in subsection (5)(b);
".
24. Section 76ATB amended
(1) Section 76ATB(3) is amended as follows:
15 (a) after paragraph (b) by deleting "and";
(b) at the end of paragraph (c) by deleting "given." and
inserting --
"
given; and
20 (d) a reference in another provision of this Division
to land and chattels situated in Western
Australia to which the WA company is entitled
includes a reference to property so situated to
which it would have been entitled but for the
25 transaction, or series of transactions, to which
the determination relates.
".
(2) Section 76ATB(4) is amended by inserting after
paragraph (c) --
30 "
(ca) an amount paid or payable to the WA company
or a subsidiary under a contract or agreement
referred to in subsection (7)(b);
".
page 17
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 25
25. Section 76ATI amended
(1) Section 76ATI(3) is amended as follows:
(a) after paragraph (b) by deleting "and";
(b) at the end of paragraph (c) by deleting "given." and
5 inserting --
"
given; and
(d) a reference in another provision of this Division
to land and chattels situated in Western
10 Australia to which the corporation is entitled
includes a reference to property so situated to
which it would have been entitled but for the
transaction, or series of transactions, to which
the determination relates.
15 ".
(2) Section 76ATI(4) is amended by inserting after paragraph (c) --
"
(ca) an amount paid or payable to the corporation or
the trustee or other corporation referred to in
20 subsection (6) under a contract or agreement
referred to in subsection (7)(b);
".
26. Section 82 amended
After section 82(2) the following subsections are inserted --
25 "
(3) For the purposes of subsection (1), an insured person's
interest in, or right to receive amounts payable under, a
policy of insurance is property that is in Western
Australia if the insured person is in Western Australia.
page 18
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 27
(4) An insured person is in Western Australia if --
(a) for an insured person who is an individual --
the individual's place of residence is in Western
Australia;
5 (b) for an insured person that is a body corporate
other than a WA company -- the body
corporate is incorporated by or under a written
law; or
(c) the insured person is a WA company.
10 ".
27. Section 86 amended
(1) Section 86 is amended by inserting before "For" the subsection
designation "(1)".
(2) At the end of section 86 the following subsections are
15 inserted --
"
(2) A mortgage is not chargeable with any other duty.
(3) An instrument, other than a mortgage, that effects or
has an effect on the transfer of an interest in property as
20 security under or in accordance with a mortgage is not
chargeable with any duty.
(4) A person must not give effect to, recognise, register or
record an instrument to which subsection (3) applies if
mortgage duty is payable on the mortgage referred to in
25 that subsection and the duty has not been paid.
Penalty: $20 000.
(5) Subsections (2) and (3) do not apply to, or in relation
to, a mortgage or other instrument if the Commissioner
is satisfied that --
30 (a) the transfer effected by the mortgage is not
intended principally or solely as security under
or in accordance with the mortgage; or
page 19
Revenue Laws Amendment Bill 2005
Part 3 The Stamp Act 1921 amended
s. 28
(b) the transfer effected by the other instrument is
not intended principally or solely as security
under or in accordance with a mortgage.
".
5 28. Section 112IB amended
Section 112IB(3)(a) is amended by deleting all of the paragraph
from and including "incidental" and inserting instead --
"
in conjunction with a lease of, or a licence to
10 occupy or use, land;
".
29. Third Schedule amended
The Third Schedule is amended by inserting after item 4 the
following item --
15 "
5. DEEDS OF SETTLEMENT OR DEEDS OF GIFT:
An instrument otherwise dutiable under item 19 of the Second
Schedule which would be exempt if it effected, or evidenced, a
conveyance or transfer that is exempt under item 2 of the Third
Schedule.
".
30. Saving and transitional provisions
(1) In this section --
"amended provisions" means the Stamp Act 1921
20 sections 76AI, 76AP, 76AR, 76ATB, 76ATI, 76ATK and
76AW as enacted after the coming into operation of
sections 18 to 25 of this Act;
"existing provisions" means the Stamp Act 1921 sections 76AI,
76AP, 76AR, 76ATB, 76ATI, 76ATK and 76AW as
25 enacted before the coming into operation of sections 18
to 25 of this Act;
page 20
Revenue Laws Amendment Bill 2005
The Stamp Act 1921 amended Part 3
s. 30
"relevant acquisition" has the meaning given by the Stamp
Act 1921 section 76AJ, 76AQ, 76ATC or 76ATJ (as the
case requires).
(2) The existing provisions continue to apply in relation to a
5 relevant acquisition made on or before 18 May 2005 and the
amended provisions do not apply to it.
(3) Despite the Stamp Act 1921 section 76AG(1), 76AN(1),
76AT(1) or (2) or 76ATG(1) or (2), as the case may be, if --
(a) an acquisition of an interest in a corporation was made
10 on or after 18 May 2005 and before the day on which
this Act receives the Royal Assent;
(b) a statement has to be lodged under section 76AG,
76AN, 76AT or 76ATG in respect of that acquisition
because of the operation of the amended provisions; and
15 (c) the existing provisions would not have required such a
statement to be lodged,
the statement does not have to be lodged before the end of the
period of 2 months after the day on which this Act receives the
Royal Assent.
20
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