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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment Bill 2006
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- Stamp Act 1921 amended
3. The Act amended 3
4. Section 31B amended 3
5. Section 75AG amended 3
6. Section 75AH inserted 4
75AH. Further transfer to person who was first
home owner 4
7. Section 85A inserted 6
85A. Mortgage duty abolished from 1 July 2008 6
8. Section 86 amended 7
9. Part IVB Division 1A inserted 7
Division 1A -- Abolition of duty
112. Hire of goods duty abolished from
1 January 2007 7
10. Section 112J amended 7
11. Section 112L amended 8
12. Section 112M amended 8
13. Section 122 inserted 8
122. Transitional provisions 8
14. Second Schedule amended (mortgages) 9
15. Second Schedule amended (settlements and gifts) 9
16. Schedule 4 inserted 10
143--1 page i
Revenue Laws Amendment Bill 2006
Contents
Schedule 4 -- Transitional provisions
Division 1 -- Provisions for Revenue Laws
Amendment Act 2006
1. Application of old Part IVB 10
2. Applications under section 75AH 11
3. Application of Act to certain mortgages
and advances 11
4. Application of Act to certain instruments
referred to in the Second Schedule
item 19 11
Part 3 -- Land Tax Act 2002 amended
17. The Act amended 12
18. Section 5 amended 12
Part 4 -- Land Tax Assessment
Act 2002 amended
Division 1 -- Preliminary
19. The Act amended 13
Division 2 -- Exemptions relating to private
residences
20. Section 24 amended 13
21. Section 24A inserted 14
24A. Construction of private residence --
exemption for 2 assessment years 14
22. Section 25A inserted 15
25A. Refurbishment of private residence --
exemption for 2 assessment years 15
23. Section 27 replaced by sections 27 and 27A 17
27. Moving between 2 private residences 17
27A. Construction or refurbishment of second
private residence -- exemption for 2
assessment years 18
24. Section 42 amended 20
25. Section 47 inserted 21
47. Transitional provisions 21
26. Schedule 1 inserted 21
Schedule 1 -- Transitional provisions
Division 1 -- Provision for Revenue Laws
Amendment Act 2006
1. Application of sections 24A, 25A and 27A 21
27. Glossary amended 21
page ii
Revenue Laws Amendment Bill 2006
Contents
Division 3 -- Exemptions relating to disabled
beneficiaries and relatives
28. Section 26 amended 22
29. Section 26A inserted 23
26A. Exemption for property in which disabled
relative resides 23
Division 4 -- Minor interests
30. Sections 45A and 45B inserted 26
45A. Commissioner may determine that minor
interest is to be disregarded 26
45B. Effect of determination under section 45A 27
Part 5 -- Rates and Charges (Rebates
and Deferments) Act 1992
amended
31. The Act amended 28
32. Section 23 amended 28
33. Section 27 amended 29
34. Section 30 amended 30
35. Section 32 amended 30
36. Section 35 amended 31
37. Section 43 amended 31
38. Section 53 inserted 31
53. Transitional provisions 31
39. Schedule 1 inserted 32
Schedule 1 -- Transitional provisions
Division 1 -- Provision for Revenue Laws
Amendment Act 2006
1. Application of section 40 32
page iii
Western Australia
LEGISLATIVE ASSEMBLY
Revenue Laws Amendment Bill 2006
A Bill for
An Act to amend the --
• Stamp Act 1921; and
• Land Tax Act 2002; and
• Land Tax Assessment Act 2002; and
• Rates and Charges (Rebates and Deferments) Act 1992.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment Bill 2006
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This is the Revenue Laws Amendment Act 2006.
2. Commencement
5 (1) Subject to this section, this Act comes into operation on the day
on which it receives the Royal Assent.
(2) Section 4 is deemed to have come into operation on
1 January 2004.
(3) Sections 5(2) and 6 are deemed to have come into operation on
10 1 July 2004.
(4) If this Act receives the Royal Assent before or on 1 July 2006,
section 14, Part 3, Part 4 Division 2, section 29, Part 4
Division 4 and Part 5 come into operation on 1 July 2006.
(5) If this Act receives the Royal Assent after 1 July 2006,
15 section 14, Part 3, Part 4 Division 2, section 29, Part 4
Division 4 and Part 5 are deemed to have come into operation
on 1 July 2006.
(6) Section 16 --
(a) comes into operation on the day on which this Act
20 receives the Royal Assent; or
(b) is deemed to have come into operation on 1 July 2006 if
this Act receives the Royal Assent after that day.
page 2
Revenue Laws Amendment Bill 2006
Stamp Act 1921 amended Part 2
s. 3
Part 2 -- Stamp Act 1921 amended
3. The Act amended
The amendments in this Part are to the Stamp Act 1921*.
[* Reprint 15 as at 3 June 2005.
5 For subsequent amendments see Western Australian
Legislation Information Tables for 2005, Table 1, p. 428-9
and Acts Nos. 35, 36 and 38 of 2005.]
4. Section 31B amended
Section 31B(8) is amended as follows:
10 (a) in paragraph (f)(ii) by deleting "applies." and inserting
instead --
" applies; or ";
(b) by inserting after paragraph (f) the following
paragraph --
15 "
(g) the acquisition of beneficial ownership of
property of a bankrupt under section 58 of the
Bankruptcy Act 1966 of the Commonwealth.
";
20 (c) by inserting at the end of each of paragraphs (a), (b), (c)
and (d) --
" or ".
5. Section 75AG amended
(1) Section 75AG(8) is repealed.
25 (2) Section 75AG(9) is amended by inserting after "an amount
under section" --
" 21 or ".
page 3
Revenue Laws Amendment Bill 2006
Part 2 Stamp Act 1921 amended
s. 6
6. Section 75AH inserted
After section 75AG the following section is inserted --
"
75AH. Further transfer to person who was first home
5 owner
(1) An expression used in this section that is defined in
section 75AG, or given a meaning under that section,
has the same meaning in this section as it has in that
section.
10 (2) Subject to subsection (6), this section applies when --
(a) duty was chargeable under section 75AG on an
instrument of transfer of property referred to in
the Second Schedule item 4(2) or (3) and
executed on or after 1 July 2004 (the "first
15 instrument"); and
(b) within 10 years of the execution of the first
instrument, a transferee in relation to the first
instrument --
(i) executes another instrument of transfer
20 of property (the "further instrument")
which evidences the acquisition of a
further interest in the property from a
person excluded from the operation of
section 16(1) of the FHOG Act; and
25 (ii) is liable to pay duty on the further
instrument.
(3) When this section applies --
(a) duty is chargeable on the further instrument at
the rate at which it was chargeable on the first
30 instrument, using the same thresholds that
applied when duty was charged on the first
instrument; and
page 4
Revenue Laws Amendment Bill 2006
Stamp Act 1921 amended Part 2
s. 6
(b) irrespective of the value of the property at the
time of the execution of the further instrument
and the consideration paid in respect of the
further instrument, the amount or value of the
5 consideration on which duty is chargeable on
the further instrument is the same as the higher
of --
(i) the amount or value of the consideration
on which duty was charged on the first
10 instrument; or
(ii) the unencumbered value of the whole of
the property at the time of execution of
the first instrument;
and
15 (c) the assessment of the duty payable on the
further instrument is to be made on the amount
or value referred to in paragraph (b), but --
(i) the portion of duty assessed in relation
to the transferee is to bear the same
20 proportion to the whole of the duty
assessed as the interest that would be
held by the transferee after the
execution and registration of the further
instrument bears to the whole of the
25 property; and
(ii) the further instrument is exempt from
the remaining portion of the duty that
would, but for this subparagraph, be
payable;
30 and
(d) the amount of duty payable is to be reduced by
the amount of the duty paid by the transferee on
the first instrument and any other further
instrument on which duty has been paid.
page 5
Revenue Laws Amendment Bill 2006
Part 2 Stamp Act 1921 amended
s. 7
(4) Section 75AG(2), (3), (5), (6) and (7) applies, with
necessary changes, in respect of an application under
this section.
(5) The application may only be made within the period
5 ending 12 months after the execution of the further
instrument.
(6) If a transferee is required to repay an amount under
section 21 or 51 of the FHOG Act in relation to the
first instrument or a further instrument, or would be
10 required to repay an amount if a first home owner grant
had been paid to the transferee, duty on the further
instrument is not, or is no longer, (as the case requires)
chargeable under this section.
(7) If any transferee in relation to the further instrument
15 was not a transferee in relation to the first instrument,
duty on the further instrument is not chargeable under
this section.
(8) Despite section 17 of the Administration Act, the
Commissioner must make any reassessment necessary
20 to give effect to this section.
".
7. Section 85A inserted
After the heading to Part IIIE Division 2 the following section is
inserted --
25 "
85A. Mortgage duty abolished from 1 July 2008
Despite anything to the contrary in this Part, mortgage
duty is not chargeable --
(a) on a mortgage first executed, or that first affects
30 property in Western Australia, on or after
1 July 2008; or
page 6
Revenue Laws Amendment Bill 2006
Stamp Act 1921 amended Part 2
s. 8
(b) in respect of an advance or further advance on
or after 1 July 2008 secured under a mortgage
first executed, or that first affects property in
Western Australia, before that day.
5 ".
8. Section 86 amended
Section 86(2) is amended by deleting "other duty." and inserting
instead --
" duty other than, subject to section 85A, mortgage duty. ".
10 9. Part IVB Division 1A inserted
After the heading to Part IVB the following Division is
inserted --
"
Division 1A -- Abolition of duty
15 112. Hire of goods duty abolished from 1 January 2007
Despite anything to the contrary in this Part, duty is not
chargeable on a hire of goods in respect of --
(a) any hiring charges received by a commercial
hire business on or after 1 January 2007; or
20 (b) any hiring charges paid or payable by a hirer on
or after 1 January 2007.
".
10. Section 112J amended
After section 112J(2) the following subsection is inserted --
25 "
(3) Subsection (1) does not apply to a commercial hire
business in respect of hiring charges received in any
month after December 2006.
".
page 7
Revenue Laws Amendment Bill 2006
Part 2 Stamp Act 1921 amended
s. 11
11. Section 112L amended
After section 112L(4) the following subsection is inserted --
"
(5) Nothing in this section requires a commercial hire
5 business to --
(a) lodge a return in respect of a return period
commencing after December 2006; or
(b) pay duty in respect of any hiring charges
received on or after 1 January 2007.
10 ".
12. Section 112M amended
After section 112M(4) the following subsection is inserted --
"
(5) Nothing in this section or section 112MA requires a
15 hirer to --
(a) prepare or lodge a statement in respect of hiring
charges paid or payable on or after
1 January 2007; or
(b) pay duty in respect of any hiring charges paid
20 or payable on or after 1 January 2007.
".
13. Section 122 inserted
After section 121 the following section is inserted --
"
25 122. Transitional provisions
Schedule 4 contains transitional provisions relating to
amendments made to this Act.
".
page 8
Revenue Laws Amendment Bill 2006
Stamp Act 1921 amended Part 2
s. 14
14. Second Schedule amended (mortgages)
(1) The amendments in this section are to the Second Schedule.
(2) Item 13(2) is amended as follows:
(a) by deleting "$5 000" and inserting instead --
5 " $10 000 ";
(b) by deleting "$0.40" and inserting instead --
" $0.20 ".
(3) Item 13(2a) is amended as follows:
(a) by deleting "$8 000" and inserting instead --
10 " $16 000 ";
(b) by deleting "$0.25" and inserting instead --
" $0.125 ".
(4) Item 13(2b) is amended as follows:
(a) by deleting "$8 000" and inserting instead --
15 " $16 000 ";
(b) by deleting "$0.25" and inserting instead --
" $0.125 ";
(c) by deleting "$0.40" and inserting instead --
" $0.20 ".
20 (5) Item 13 is amended by inserting at the end of the item in the
column headed "Duty payable" the following --
"
The duty payable under
item 13 is to be rounded
down to the nearest 5 cents.
".
15. Second Schedule amended (settlements and gifts)
25 (1) The amendments in this section are to the Second Schedule.
page 9
Revenue Laws Amendment Bill 2006
Part 2 Stamp Act 1921 amended
s. 16
(2) Item 13(3)(b) is amended by deleting "Donor" and inserting
instead --
" Donee ".
(3) Item 17(b) is amended by deleting "Donor" and inserting
5 instead --
" Donee ".
(4) Item 19 is amended by deleting "The settlor or donor" and
inserting instead --
"
The person on whom the
property is settled or the
donee.
10 ".
16. Schedule 4 inserted
After the Third Schedule the following Schedule is inserted --
"
Schedule 4 -- Transitional provisions
15 [s. 122]
Division 1 -- Provisions for Revenue Laws Amendment
Act 2006
1. Application of old Part IVB
(1) In subclause (2) --
20 "old Part IVB" has the same meaning as in section 94 of
the Business Tax Review (Assessment) Act (No. 2) 2003.
(2) Despite section 94(7) of the Business Tax Review
(Assessment) Act (No. 2) 2003, on 1 January 2007 the old
Part IVB ceases to apply in relation to the conduct of a
25 rental business on or after that date.
page 10
Revenue Laws Amendment Bill 2006
Stamp Act 1921 amended Part 2
s. 16
2. Applications under section 75AH
Despite section 75AH(5) (as inserted by section 6 of the
Revenue Laws Amendment Act 2006), an application under
section 75AH in respect of a further instrument executed on
5 or after 1 July 2004 and before the day on which the
Revenue Laws Amendment Act 2006 receives the Royal
Assent may be made within 12 months after the day on
which that Act receives the Royal Assent.
3. Application of Act to certain mortgages and advances
10 Despite the amendments made by section 14 of the Revenue
Laws Amendment Act 2006, item 13(2), (2a) and (2b) of the
Second Schedule as in force immediately before 1 July 2006
continues to apply to and in relation to --
(a) mortgages that were executed before 1 July 2006 or
15 that first affected property in Western Australia
before 1 July 2006; and
(b) advances or further advances made before
1 July 2006 secured under such mortgages.
4. Application of Act to certain instruments referred to in
20 the Second Schedule item 19
Despite the amendments made by sections 5(1) and 15 of
the Revenue Laws Amendment Act 2006, section 75AG(8)
and items 13(3)(b), 17(b) and 19 of the Second Schedule as
in force immediately before the day on which the Revenue
25 Laws Amendment Act 2006 receives the Royal Assent
continue to apply to and in relation to instruments referred
to in the Second Schedule item 19 that were executed before
that day.
".
page 11
Revenue Laws Amendment Bill 2006
Part 3 Land Tax Act 2002 amended
s. 17
Part 3 -- Land Tax Act 2002 amended
17. The Act amended
The amendments in this Part are to the Land Tax Act 2002*.
[* Reprint 1 as at 4 November 2005.]
5 18. Section 5 amended
Section 5 is amended as follows:
(a) by deleting from the heading to Table 4 "and subsequent
financial years";
(b) by inserting after Table 4 the following Table --
10 "
Table 5: Land tax rates for 2006/07 and subsequent
financial years
Unimproved value of the
land
Exceeding Not exceeding Rate of land tax
($) ($)
0 150 000 Nil
150 000 390 000 0.15 cent for each $1 in excess
of $150 000
390 000 875 000 $360.00 + 0.45 cent for each
$1 in excess of $390 000
875 000 2 000 000 $2 542.50 + 1.62 cents for
each $1 in excess of $875 000
2 000 000 5 000 000 $20 767.50 + 2.30 cents for
each $1 in excess of
$2 000 000
5 000 000 $89 767.50 + 2.50 cents for
each $1 in excess of
$5 000 000
".
page 12
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Preliminary Division 1
s. 19
Part 4 -- Land Tax Assessment Act 2002 amended
Division 1 -- Preliminary
19. The Act amended
The amendments in this Part are to the Land Tax Assessment
5 Act 2002*.
[* Act No. 52 of 2002.
For subsequent amendments see Western Australian
Legislation Information Tables for 2005, Table 1, p. 245 and
Act No. 38 of 2005.]
10 Division 2 -- Exemptions relating to private residences
20. Section 24 amended
Section 24(2) is repealed and the following subsection is
inserted instead --
"
15 (2) However, the property is not exempt if --
(a) the individual or any other person derived any
income from the property in the period between
the beginning of the assessment year and the
time when the property was first occupied; or
20 (b) any other private residential property owned by
the individual is exempt for the assessment year
under another provision of this Division as a
result of its use by the individual as his or her
primary residence.
25 ".
page 13
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 2 Exemptions relating to private residences
s. 21
21. Section 24A inserted
After section 24 the following section is inserted --
"
24A. Construction of private residence -- exemption for
5 2 assessment years
(1) Private residential property (except property held in
trust) that is owned by an individual is exempt for
2 consecutive assessment years if --
(a) the commencement date for the construction of
10 the private residence that forms part of the
property is --
(i) in the first assessment year; or
(ii) in any previous financial year and part
of the construction is carried out in the
15 first assessment year;
and
(b) the completion date for the construction is in
the second assessment year; and
(c) at midnight on 30 June immediately before the
20 first assessment year, the individual owned the
land on which the private residence is
constructed; and
(d) the individual is the first occupant of the private
residence; and
25 (e) the individual uses the private residence as his
or her primary residence during the second
assessment year.
(2) However, the property is not exempt if --
(a) the individual or any other person derived any
30 income from the property in the period between
the beginning of the first assessment year and
the time when the property was first occupied; or
page 14
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to private residences Division 2
s. 22
(b) any other private residential property owned by
the individual is exempt for either assessment
year under another provision of this Division as
a result of its use by the individual as his or her
5 primary residence.
(3) The individual may apply for the exemption in the
approved form after the commencement date for the
construction.
(4) The individual must notify the Commissioner in the
10 approved form of --
(a) the completion date for the construction; and
(b) when the individual occupies the private
residence.
(5) The Commissioner is to make any reassessment
15 necessary to give effect to this section.
".
22. Section 25A inserted
After section 25 the following section is inserted --
"
20 25A. Refurbishment of private residence -- exemption
for 2 assessment years
(1) Private residential property (except property held in
trust) that is owned by an individual is exempt for
2 consecutive assessment years if --
25 (a) the commencement date for the refurbishment
of the private residence that forms part of the
property is --
(i) in the first assessment year; or
(ii) in any previous financial year and part
30 of the refurbishment is carried out in the
first assessment year;
and
page 15
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 2 Exemptions relating to private residences
s. 22
(b) the completion date for the refurbishment is in
the second assessment year; and
(c) at midnight on 30 June immediately before the
first assessment year, the private residence was
5 unoccupied, but only because the individual
had ceased occupation, or had not taken up
occupation, to enable the private residence to
be refurbished; and
(d) the individual is the first occupant of the private
10 residence since the refurbishment; and
(e) the individual uses the private residence as his
or her primary residence during the second
assessment year.
(2) However, the property is not exempt if --
15 (a) the individual or any other person derived any
income from the property in the period between
the beginning of the first assessment year and
the time when the property was reoccupied; or
(b) any other private residential property owned by
20 the individual is exempt for either assessment
year under another provision of this Division as
a result of its use by the individual as his or her
primary residence.
(3) The individual may apply for the exemption in the
25 approved form after the commencement date for the
refurbishment.
(4) The individual must notify the Commissioner in the
approved form of --
(a) the completion date for the refurbishment; and
30 (b) when the individual occupies the private
residence.
page 16
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to private residences Division 2
s. 23
(5) The Commissioner is to make any reassessment
necessary to give effect to this section.
".
23. Section 27 replaced by sections 27 and 27A
5 Section 27 is repealed and the following sections are inserted
instead --
"
27. Moving between 2 private residences
(1) Private residential property ("property A") is exempt
10 for an assessment year if --
(a) at midnight on 30 June in the previous financial
year, the owner owned property A and another
private residential property ("property B");
and
15 (b) property B is exempt for the assessment year
because of its use by an individual at midnight
on 30 June in the previous financial year as the
individual's primary residence; and
(c) property A would have been exempt for the
20 assessment year if, at midnight on 30 June in
the previous financial year, the individual had
used property A as the individual's private
residence instead of property B; and
(d) the property the owner acquired second was
25 acquired in the previous financial year; and
(e) the individual used property A as the
individual's primary residence --
(i) in the previous financial year before
using property B for that purpose; or
30 (ii) in the assessment year after using
property B for that purpose;
and
page 17
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 2 Exemptions relating to private residences
s. 23
(f) during the assessment year, the owner --
(i) sold or otherwise disposed of the
property the owner acquired first; and
(ii) delivered possession of that property to
5 the new owner.
(2) However, property A is not exempt if, while the owner
owned both properties, the owner or any other person
derived income from the property that was not being
used as the individual's primary residence.
10 (3) The owner must notify the Commissioner in the
approved form of when the disposal and delivery of
possession of the property acquired first occurs.
(4) The Commissioner is to make any reassessment
necessary to give effect to this section.
15 27A. Construction or refurbishment of second private
residence -- exemption for 2 assessment years
(1) Private residential property is exempt for 2 consecutive
assessment years if --
(a) at midnight on 30 June immediately before the
20 first assessment year, the owner owned that
property and another private residential
property that the owner had acquired before
that property; and
(b) the property the owner acquired first is exempt
25 for the first assessment year because of its use
by an individual at midnight on 30 June in the
previous financial year as the individual's
primary residence; and
(c) the property the owner acquired second would
30 have been exempt for the first assessment year
if, at midnight on 30 June in the previous
financial year, the individual had used that
page 18
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to private residences Division 2
s. 23
property as the individual's private residence
instead of the property acquired first; and
(d) the property acquired second was acquired in
the previous financial year; and
5 (e) the commencement date for the construction or
refurbishment of the private residence that
forms part of the property acquired second --
(i) is in the first assessment year; or
(ii) is in the previous financial year and part
10 of the construction or refurbishment is
carried out in the first assessment year;
and
(f) the completion date for the construction or
refurbishment of the private residence that
15 forms part of the property acquired second is in
the second assessment year; and
(g) in the case of the refurbishment of the private
residence that forms part of the property
acquired second -- at midnight on 30 June
20 immediately before the first assessment year,
the private residence was unoccupied, but only
because the individual had not taken up
occupation to enable the private residence to be
refurbished; and
25 (h) the individual is the first occupant of the private
residence that forms part of the property
acquired second since its construction or
refurbishment; and
(i) the individual uses the private residence that
30 forms part of the property acquired second as
his or her primary residence during the second
assessment year; and
page 19
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 2 Exemptions relating to private residences
s. 24
(j) by the end of the second assessment year, the
owner --
(i) has sold or otherwise disposed of the
property acquired first; and
5 (ii) has delivered possession of that
property to the new owner.
(2) However, the property acquired second is not exempt
if, while the owner owned both properties, the owner or
any other person derived income from the property that
10 was not being used as the individual's primary
residence.
(3) The owner may apply for the exemption in the
approved form after the commencement date for the
construction or refurbishment.
15 (4) The owner must notify the Commissioner in the
approved form of --
(a) the completion date for the construction or
refurbishment; and
(b) when the individual occupies the property
20 acquired second; and
(c) when the disposal and delivery of possession of
the property acquired first occurs.
(5) The Commissioner is to make any reassessment
necessary to give effect to this section.
25 ".
24. Section 42 amended
Section 42(3)(a) is amended by deleting "24 or 25; or" and
inserting instead --
" 24, 24A, 25 or 25A; or ".
page 20
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to private residences Division 2
s. 25
25. Section 47 inserted
After section 46 the following section is inserted --
"
47. Transitional provisions
5 Schedule 1 contains transitional provisions relating to
amendments made to this Act.
".
26. Schedule 1 inserted
Before the Glossary the following Schedule is inserted --
10 "
Schedule 1 -- Transitional provisions
[s. 47]
Division 1 -- Provision for Revenue Laws Amendment
Act 2006
15 1. Application of sections 24A, 25A and 27A
Private residential property is exempt under section 24A,
25A or 27A (as inserted by Part 4 Division 2 of the Revenue
Laws Amendment Act 2006) if the completion date for the
construction or refurbishment of the private residence that
20 forms part of the property is on or after 1 July 2006.
".
27. Glossary amended
The Glossary is amended as follows:
(a) in clause 1 by inserting in the appropriate alphabetical
25 positions --
"
"building contract" --
(a) means a contract under which a builder
undertakes to construct or refurbish a private
page 21
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 3 Exemptions relating to disabled beneficiaries and relatives
s. 28
residence from the inception of the building
work to the completion of that work; and
(b) if, for any reason, the work to be carried out
under such a contract is not completed --
5 includes any further contract under which the
work is to be completed;
"commencement date", for the construction or
refurbishment of a private residence, means --
(a) if the residence is to be constructed or
10 refurbished under a building contract -- the date
when the contract is made; or
(b) if the residence is to be constructed or
refurbished by an owner-builder -- the date
when the building licence for the construction or
15 refurbishment is issued under Part XV of the
Local Government (Miscellaneous Provisions)
Act 1960;
"completion date", for the construction or refurbishment of
a private residence, means the date when the
20 construction or refurbishment is completed to the point
where the residence is ready for occupation;
"owner-builder" means an owner of private residential
property who constructs or refurbishes a private
residence that forms part of that property without
25 entering into a building contract;
";
(b) in clause 1 in the definition of "private residential
property" in paragraph (d) by deleting "27" and
inserting instead --
30 " 24A, 27, 27A ".
Division 3 -- Exemptions relating to disabled beneficiaries
and relatives
28. Section 26 amended
(1) Section 26 is amended by inserting before "Private" the
35 subsection designation "(1)".
page 22
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to disabled beneficiaries and relatives Division 3
s. 29
(2) At the end of section 26 the following subsection is inserted --
"
(2) If --
(a) land was exempt under this section on 30 June
5 in the financial year before the year referred to
in paragraph (b); and
(b) on 30 June in the financial year before the
assessment year --
(i) the trustee does not hold the land in trust
10 for one or more disabled beneficiaries;
or
(ii) there is not at least one disabled
beneficiary using the property as his or
her primary residence,
15 the trustee must notify the Commissioner to that effect
within 3 months after 30 June in the financial year
before the assessment year.
Penalty: $5 000.
".
20 29. Section 26A inserted
After section 26 the following section is inserted --
"
26A. Exemption for property in which disabled relative
resides
25 (1) In this section --
"disabled person" means a person who has a
disability as defined in section 3 of the Disability
Services Act 1993 and has been independently
assessed by an appropriate assessor as requiring
30 full-time care.
page 23
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 3 Exemptions relating to disabled beneficiaries and relatives
s. 29
(2) Private residential property is exempt for an assessment
year if --
(a) at midnight on 30 June in the financial year
before the assessment year --
5 (i) a disabled person uses the property as
his or her primary residence; and
(ii) it is owned by one or more individuals,
at least one of whom is related to the
disabled person;
10 and
(b) no rent or other income is derived from the
property by anyone in the assessment year.
(3) For the purposes of subsection (2)(a)(ii) --
(a) the following persons are related to a disabled
15 person --
(i) a parent or grandparent of the disabled
person;
(ii) a brother or sister of the disabled
person;
20 and
(b) an illegitimate person is to be treated as the
legitimate child of that person's parents; and
(c) it is irrelevant whether a relationship is of the
whole or half-blood, or whether it is a natural
25 relationship or a relationship established under
a written law.
(4) The exemption may be allowed in advance if the owner
of the property advises the Commissioner that no rent
or other income is expected to be derived from the
30 property by anyone in any assessment year.
page 24
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Exemptions relating to disabled beneficiaries and relatives Division 3
s. 29
(5) If any rent or other income is derived from the property
by anyone in an assessment year, the owner of the
property must --
(a) notify the Commissioner to that effect within
5 3 months after the end of the assessment year;
and
(b) give the Commissioner any particulars needed
to make a reassessment.
Penalty: $5 000.
10 (6) If the Commissioner is notified, or otherwise becomes
aware, that rent or income has been derived from the
property in the assessment year, the Commissioner is to
make a reassessment accordingly.
(7) If --
15 (a) land was exempt under this section on 30 June
in the financial year before the year referred to
in paragraph (b); and
(b) on 30 June in the financial year before the
assessment year there is not at least one
20 disabled person related to an owner using the
property as his or her primary residence,
the owner must notify the Commissioner to that effect
within 3 months after 30 June in the financial year
before the assessment year.
25 Penalty: $5 000.
".
page 25
Revenue Laws Amendment Bill 2006
Part 4 Land Tax Assessment Act 2002 amended
Division 4 Minor interests
s. 30
Division 4 -- Minor interests
30. Sections 45A and 45B inserted
After section 45 the following sections are inserted --
"
5 45A. Commissioner may determine that minor interest is
to be disregarded
(1) The Commissioner may determine that an interest in a
lot or parcel of land as a joint owner (whenever
created) is to be disregarded for the purposes of
10 this Act.
(2) The Commissioner can only make a determination
under subsection (1) if --
(a) the interest is a minor interest in the lot or
parcel of land; and
15 (b) the Commissioner is of the opinion that the
purpose, or one of the purposes, of the creation
of the interest was to reduce the amount of land
tax payable for that, or any other, lot or parcel
of land.
20 (3) For the purposes of subsection (2)(b), the
Commissioner may have regard to --
(a) the nature of any relationship between the
owners of the lot or parcel of land; and
(b) the form and substance of any transaction
25 giving rise to the interest, including the legal
and economic obligations of the parties and the
economic and commercial substance of the
transaction; and
(c) the lack of consideration, or the amount or
30 value and source of the consideration, for the
transaction giving rise to the interest; and
page 26
Revenue Laws Amendment Bill 2006
Land Tax Assessment Act 2002 amended Part 4
Minor interests Division 4
s. 30
(d) whether any professional advice was received
in relation to the transaction giving rise to the
interest; and
(e) the way in which the transaction giving rise to
5 the interest was entered into or carried out; and
(f) any other matter the Commissioner considers
relevant.
(4) On making a determination under subsection (1) in
respect of a lot or parcel of land, the Commissioner
10 must give to the owner of the lot or parcel of land a
notice setting out the determination and the reasons for
the determination.
(5) In any review proceedings that relate to a
determination under subsection (1) in respect of an
15 interest in 5% or less of a lot or parcel of land, the onus
of establishing that none of the purposes of the creation
of the interest was to reduce the amount of land tax
payable for that, or any other, lot or parcel lies on the
taxpayer.
20 45B. Effect of determination under section 45A
If the Commissioner makes a determination under
section 45A that an interest in a lot or parcel of land is
an interest that is to be disregarded --
(a) the owner of the interest is to be taken not to be
25 an owner of the lot or parcel of land for the
purposes of this Act; and
(b) the land tax payable on the land is to be
assessed, and is payable, as if the land were
wholly owned by the owner of the land who
30 does not have an interest in the land in respect
of which such a determination has been made.
".
page 27
Revenue Laws Amendment Bill 2006
Part 5 Rates and Charges (Rebates and Deferments) Act 1992
amended
s. 31
Part 5 -- Rates and Charges (Rebates and Deferments)
Act 1992 amended
31. The Act amended
The amendments in this Part are to the Rates and Charges
5 (Rebates and Deferments) Act 1992*.
[* Reprinted as at 19 May 2000.
For subsequent amendments see Western Australian
Legislation Information Tables for 2005, Table 1, p. 380-1
and Act No. 34 of 2004.]
10 32. Section 23 amended
After section 23(4) the following subsections are inserted --
"
(5) A person is eligible to apply to the administrative
authority to have their entitlement as regards any land
15 registered, if a prescribed charge is payable on that
land, on sufficient evidence of eligibility being
accepted by the administrative authority under
section 26, so long as --
(a) the person is related to a disabled person who
20 occupies the land as his or her ordinary place of
residence; and
(b) no owner of the land occupies the land and no
rent or income is derived from the land by
anyone.
25 (6) For the purposes of subsection (5)(a) --
(a) the following persons are related to a disabled
person --
(i) a parent or grandparent of the disabled
person;
page 28
Revenue Laws Amendment Bill 2006
Rates and Charges (Rebates and Deferments) Act 1992 Part 5
amended
s. 33
(ii) a brother or sister of the disabled
person;
and
(b) an illegitimate person is to be treated as the
5 legitimate child of that person's parents; and
(c) it is irrelevant whether a relationship is of the
whole or half-blood, or whether it is a natural
relationship or a relationship established by a
written law.
10 (7) In this section --
"disabled person" means a person who --
(a) receives a disability support pension under
the Social Security Act 1991 of the
Commonwealth; and
15 (b) has a disability as defined in section 3 of the
Disability Services Act 1993 and has been
independently assessed by an appropriate
assessor as requiring full-time care.
".
20 33. Section 27 amended
(1) Section 27(3) is amended by deleting "subsections (4) and (5)"
and inserting instead --
" subsections (4), (5) and (5a) ".
(2) After section 27(5) the following subsection is inserted --
25 "
(5a) Where land is taken under section 30(2) to be wholly
occupied as an ordinary place of residence of a person,
and that person is not the sole holder of an estate or
interest in the land, the administrative authority
30 must --
page 29
Revenue Laws Amendment Bill 2006
Part 5 Rates and Charges (Rebates and Deferments) Act 1992
amended
s. 34
(a) determine any entitlement, and any rebate
allowable, as if that person were the sole holder
of an estate or interest in the land; and
(b) apportion the rebate on the basis set out in the
5 procedural manual.
".
34. Section 30 amended
At the end of section 30 the following subsection is inserted --
"
10 (2) For the purposes of this Act, other than
section 23(5)(b), land is to be taken to be wholly
occupied as an ordinary place of residence of a person,
despite the person not being resident there, if the
person --
15 (a) is eligible under section 23(5) to apply to have
their entitlement as regards the land registered;
and
(b) is a registered person as regards that land on the
basis of eligibility under section 23(5); and
20 (c) has not for the time being any other entitlement
registered as regards that land.
".
35. Section 32 amended
After section 32(4) the following subsection is inserted --
25 "
(4a) Subsection (4) does not apply in relation to land
registered for a person on the basis of eligibility under
section 23(5).
".
page 30
Revenue Laws Amendment Bill 2006
Rates and Charges (Rebates and Deferments) Act 1992 Part 5
amended
s. 36
36. Section 35 amended
After section 35(2) the following subsection is inserted --
"
(2a) Subsection (2) does not apply in relation to land
5 registered for a person on the basis of eligibility under
section 23(5).
".
37. Section 43 amended
(1) Section 43(1) is amended by inserting after
10 "subsections (1a)" --
" , (1b) ".
(2) After section 43(1a) the following subsection is inserted --
"
(1b) In relation to any land, deferment of the payment of a
15 prescribed charge must not be allowed if the person
liable to pay the relevant prescribed charge is
registered on the basis of eligibility under
section 23(5).
".
20 38. Section 53 inserted
After section 52 the following section is inserted --
"
53. Transitional provisions
Schedule 1 contains transitional provisions relating to
25 amendments made to this Act.
".
page 31
Revenue Laws Amendment Bill 2006
Part 5 Rates and Charges (Rebates and Deferments) Act 1992
amended
s. 39
39. Schedule 1 inserted
At the end of the Act the following Schedule is inserted --
"
Schedule 1 -- Transitional provisions
5 [s. 53]
Division 1 -- Provision for Revenue Laws Amendment
Act 2006
1. Application of section 40
If an eligible person registers an entitlement in respect of
10 land under section 32 after 30 June 2006 and before
1 October 2006 on the basis that the person is eligible under
section 23(5) to apply to have their entitlement as regards
the land registered, section 40 applies to the person as if the
entitlement had been registered at the commencement of the
15 charged period.
".
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