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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment (Assessment) Bill
(No. 2) 2001
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- Land Tax Assessment
Act 1976 -- Principal place of
residence exemptions
3. The Act amended 3
4. Application of amendments 3
5. Section 22 amended 3
6. Schedule amended 3
Part 3 -- Pay-roll Tax Assessment
Act 1971 -- Gross-up of fringe
benefit value
7. The Act amended 8
8. Section 3C amended 8
9. Fringe benefits provided before 1 January 2002 9
Part 4 -- Pay-roll Tax Assessment
Act 1971 -- Grouping provisions
10. The Act amended 10
11. Section 16E amended 10
page i
61--1B
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Contents
Part 5 -- Stamp Act 1921 -- Voluntary
transfers under the Financial
Sector (Transfers of Business)
Act 1999
12. The Act amended 11
13. Section 20 amended 11
14. Section 27 amended 12
15. Section 28 amended 12
16. Section 29 amended 13
17. Section 30 amended 13
18. Section 31C inserted 13
19. Section 75J amended 14
20. Section 75JC amended 15
21. Section 75JE amended 15
22. Sections 76AH and 76AO amended 15
Part 6 -- Stamp Act 1921 -- Private
unit trusts
23. The Act amended 16
24. Section 4 amended 16
25. Section 20 amended 16
26. Section 63 amended 16
27. Sections 63AA to 63AE inserted 17
28. Section 73D amended 28
page ii
Western Australia
LEGISLATIVE ASSEMBLY
Revenue Laws Amendment (Assessment) Bill
(No. 2) 2001
A Bill for
An Act to amend the --
• Land Tax Assessment Act 1976;
• Pay-roll Tax Assessment Act 1971; and
• Stamp Act 1921,
and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Revenue Laws Amendment
(Assessment) Act (No. 2) 2001.
5 2. Commencement
(1) Subject to subsection (2), this Act comes into operation on the
day on which it receives the Royal Assent.
(2) Part 3 comes into operation, or is taken to have come into
operation, on 1 January 2002.
page 2
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Land Tax Assessment Act 1976 -- Principal place of Part 2
residence exemptions
s. 3
Part 2 -- Land Tax Assessment Act 1976 -- Principal
place of residence exemptions
3. The Act amended
The amendments in this Part are to the Land Tax Assessment
5 Act 1976*.
[* Reprinted as at 23 February 2001.
For subsequent amendments see Act No. 10 of 2001.]
4. Application of amendments
The amendments effected by this Part have effect in relation to
10 each year of assessment commencing on or after 1 July 2002.
5. Section 22 amended
Section 22(1) is amended by inserting after "(iii)," --
" (iiia), ".
6. Schedule amended
15 The Schedule Part 1 clause 9 is amended as follows:
(a) by deleting paragraph (aa)(i) and (ii) and inserting
instead the following subparagraph --
"
(i) In this clause --
20 "corporation" has the same meaning as in
section 57A of the Corporations Act 2001 of
the Commonwealth;
"disabled beneficiary", in relation to land held in
trust, means a person who has a beneficial
25 interest in the trust, whether the interest is
contingent or otherwise, and who --
(a) has a disability as defined in section 3
of the Disability Services Act 1993
page 3
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 2 Land Tax Assessment Act 1976 -- Principal place of
residence exemptions
s. 6
and has been independently assessed
by an appropriate assessor as
requiring full-time care;
(b) is mentally incapacitated; or
5 (c) is a minor who is an orphan;
"trustee", in relation to land and a disabled
beneficiary, means a corporation or other
person who owns the land as trustee for the
disabled beneficiary.
10 ";
(b) by deleting paragraph (a)(vi), (vii), (viii) and (ix) and
inserting the following subparagraphs instead --
"
(vi) the owners of which are --
15 (I) a natural person or natural persons;
(II) a corporation that owns the land otherwise
than as a trustee for a disabled beneficiary
who uses the land solely or principally as
his or her sole or principal place of
20 residence;
(vii) the owner of which is a trustee who holds the
land in trust for at least one disabled beneficiary
who uses it solely or principally as his or her sole
or principal place of residence;
25 (viii) the owners of which are --
(I) a trustee who holds the land in trust for at
least one disabled beneficiary who uses it
solely or principally as his or her sole or
principal place of residence; and
30 (II) a corporation that holds the land otherwise
than as a trustee for a disabled beneficiary
who uses the land solely or principally as
his or her sole or principal place of
residence;
page 4
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Land Tax Assessment Act 1976 -- Principal place of Part 2
residence exemptions
s. 6
(ix) the owners of which are --
(I) a trustee who holds the land in trust for at
least one disabled beneficiary who uses it
solely or principally as his or her sole or
5 principal place of residence; and
(II) a natural person or natural persons;
(ixa) the owners of which are --
(I) a trustee who holds the land in trust for at
least one disabled beneficiary who uses it
10 solely or principally as his or her sole or
principal place of residence;
(II) a natural person or natural persons; and
(III) a corporation that owns the land otherwise
than as a trustee for a disabled beneficiary
15 who uses the land solely or principally as
his or her sole or principal place of
residence;
";
(c) by inserting after paragraph (b)(i) the following
20 subparagraphs --
"
(ia) Except as provided in paragraph (a)(vii), (viii),
(ix) or (ixa), an exemption under paragraph (a)
does not apply to any proportion of the land that
25 is held in trust.
(ib) An exemption under paragraph (a) does not apply
to any proportion of the land that is owned by a
corporation unless the corporation --
(I) owns the land by reason of a requirement
30 of a financial institution as mentioned in
paragraph (a)(iv);
page 5
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 2 Land Tax Assessment Act 1976 -- Principal place of
residence exemptions
s. 6
(II) owns the land as the trustee of a disabled
beneficiary who uses the land solely or
principally as his or her sole or principal
place of residence; or
5 (III) is an executor that owns the land as
executor as provided in paragraph (a)(x),
(xi), (xii) or (xiii).
";
(d) by deleting paragraph (b)(iii) and (iv) and inserting
10 instead the following subparagraphs --
"
(iii) The exemption provided by paragraph (a)(vi)
applies to the unimproved value of the land only
to the extent of the total proportion of the interest
15 in the land that is owned, jointly or severally, by
the natural persons who own the land otherwise
than as trustees and use the land solely or
principally as their sole or principal place of
residence.
20 (iiia) The exemption provided by paragraph (a)(viii)
applies to the unimproved value of the land only
to the extent of the proportion of the interest in
the land that is owned by the trustee of the
disabled beneficiary who uses the land solely or
25 principally as his or her sole or principal place of
residence.
(iv) The exemption provided by paragraph (a)(ix) or
(ixa) applies to the unimproved value of the land
only to the extent of the total proportion of the
30 interest in the land that is owned, jointly or
severally, by the following --
(I) the trustee of the disabled beneficiary who
uses the land solely or principally as his or
her sole or principal place of residence;
page 6
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Land Tax Assessment Act 1976 -- Principal place of Part 2
residence exemptions
s. 6
(II) the natural persons who own the land
otherwise than as trustees and use the land
solely or principally as their sole or
principal place of residence.
5 ";
(e) in paragraph (b) by deleting subparagraph (iva)(III) and
inserting the following item instead --
"
(III) a trustee who holds the land in trust for at
10 least one disabled beneficiary who uses the
land solely or principally as his or her sole
or principal place of residence.
";
(f) in paragraph (b)(v), by inserting after "(iii)" --
15 " , (iiia) ";
(g) in paragraph (b)(vi), by inserting after "(iii)" --
" , (iiia) ".
page 7
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 3 Pay-roll Tax Assessment Act 1971 -- Gross-up of fringe
benefit value
s. 7
Part 3 -- Pay-roll Tax Assessment Act 1971 -- Gross-up
of fringe benefit value
7. The Act amended
The amendments in this Part are to the Pay-roll Tax Assessment
5 Act 1971*.
[* Reprinted as at 12 November 1996.
For subsequent amendments see 2000 Index to Legislation of
Western Australia, Table 1, p. 329, and Acts Nos. 3 and 10
of 2001.]
10 8. Section 3C amended
(1) Section 3C(1) is repealed and the following subsections are
inserted instead --
"
(1) The value of a fringe benefit provided on or after
15 1 January 2002 is --
(a) the grossed-up value of the fringe benefit
worked out in accordance with subsection (1a)
(unless paragraph (b) applies to the fringe
benefit); or
20 (b) if regulations made under this Act prescribe
how the value of a particular kind of fringe
benefit is to be determined -- the value so
determined.
(1a) The grossed-up value of a fringe benefit is the amount
25 worked out using the formula --
taxable value of the appropriate gross-up
fringe benefit × factor
where --
"appropriate gross-up factor" equals --
(a) for a fringe benefit that is a GST-creditable
benefit (within the meaning of the FBTA
page 8
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Pay-roll Tax Assessment Act 1971 -- Gross-up of fringe Part 3
benefit value
s. 9
Act) -- the factor by which the "Type 1
aggregate fringe benefits amount" is
multiplied in section 5B(1B) of the FBTA
Act; or
5 (b) for a fringe benefit that is not a
GST-creditable benefit -- the factor by
which the "Type 2 aggregate fringe benefits
amount" is multiplied in section 5B(1C) of
the FBTA Act;
10 "taxable value of the fringe benefit" equals --
(a) if the benefit is a work-related benefit -- the
employee's share of the taxable value of the
fringe benefit under the FBTA Act; or
(b) if the benefit is not a work-related benefit --
15 the employee's share of the taxable value of
the fringe benefit under the FBTA Act
worked out without regard to any reduction
of that taxable value under that Act because
of the "otherwise deductible" rule.
20 ".
(2) Section 3C(3) and (4) are amended by deleting "subsection (1)"
and inserting instead --
" subsection (1a) ".
9. Fringe benefits provided before 1 January 2002
25 Without limiting the operation of the Interpretation Act 1984,
section 3C of the Pay-roll Tax Assessment Act 1971 as in force
immediately before 1 January 2002 continues to have effect in
relation to fringe benefits provided (within the meaning given
by that Act) before 1 January 2002.
page 9
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 4 Pay-roll Tax Assessment Act 1971 -- Grouping provisions
s. 10
Part 4 -- Pay-roll Tax Assessment Act 1971 -- Grouping
provisions
10. The Act amended
The amendments in this Part are to the Pay-roll Tax Assessment
5 Act 1971*.
[* Reprinted as at 12 November 1996.
For subsequent amendments see 2000 Index to Legislation of
Western Australia, Table 1, p. 329, and Acts Nos. 3 and 10
of 2001.]
10 11. Section 16E amended
(1) After section 16E(1) the following subsection is inserted --
"
(1a) Where the members of a group (referred to as a smaller
group in subsection (2)) have together a controlling
15 interest in a business, the members of the group and the
person or persons who carry on the business constitute
one group for the purposes this Act.
".
(2) Section 16E(2) is amended by inserting after "subsection (1)" in
20 both places where it occurs --
" or (1a) ".
(3) After section 16E(2) the following section is inserted --
"
(3) In this section --
25 "controlling interest" has the same meaning as it has in
section 16D.
".
page 10
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Voluntary transfers under the Financial Part 5
Sector (Transfers of Business) Act 1999
s. 12
Part 5 -- Stamp Act 1921 -- Voluntary transfers under
the Financial Sector (Transfers of Business) Act 1999
12. The Act amended
The amendments in this Part are to the Stamp Act 1921*.
5 [* Reprinted as at 3 August 2001.]
13. Section 20 amended
(1) Section 20(1) is amended as follows:
(a) after paragraph (a) by inserting --
"
10 (aa) an instrument which is a statement prepared
under section 31C(1) may be stamped without
fine after that preparation if it is lodged under
that section within a period of 3 months after
the day of transfer referred to in that section;
15 ";
(b) after paragraph (c) by inserting --
" and ";
(c) after paragraph (d) by deleting "; and" and inserting a
full stop;
20 (d) by deleting paragraph (e).
(2) Section 20(5a) is amended as follows:
(a) by inserting after "31B," --
" 31C, ";
(b) by deleting ", 112HA(4) or 112HB(2)" and inserting
25 instead --
" or 112HA(4) ".
page 11
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 5 Stamp Act 1921 -- Voluntary transfers under the Financial
Sector (Transfers of Business) Act 1999
s. 14
14. Section 27 amended
(1) Section 27(2) is amended as follows:
(a) in paragraph (a) by inserting after "applies" --
" or a transfer to which section 31C applies ";
5 (b) in paragraph (b)(i) by inserting after "transaction" --
" or transfer ";
(c) in paragraph (b)(i) by inserting after "31B" --
" or 31C ";
(d) by deleting "section 31B(1) in respect of the
10 transaction" and inserting instead --
"
section 31B(1) or 31C(1) in respect of the transaction
or transfer
".
15 (2) Section 27(3) is amended as follows:
(a) by inserting after "transaction" --
" or transfer ";
(b) by inserting after "31B" --
" or 31C ".
20 15. Section 28 amended
(1) Section 28(1)(b) is amended as follows:
(a) by inserting after "31B(1)" --
" or 31C(1) ";
(b) by inserting after "transaction" --
25 " or transfer ".
(2) Section 28(4) is amended by inserting after "31B(1)" --
" or 31C(1) ".
page 12
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Voluntary transfers under the Financial Part 5
Sector (Transfers of Business) Act 1999
s. 16
16. Section 29 amended
(1) Section 29(1) is amended as follows:
(a) by inserting after "31B(1)" in both places where it
occurs --
5 " or 31C(1) ";
(b) by inserting after "transaction" in both places where it
occurs --
" or transfer ".
(2) Section 29(2a) is amended as follows:
10 (a) by inserting after "transaction" --
" or transfer ";
(b) by inserting after "31B(1)" --
" or 31C(1) ".
17. Section 30 amended
15 Section 30(b) is amended by inserting after "31B(1)" --
" or 31C(1) ".
18. Section 31C inserted
After section 31B the following section is inserted --
"
20 31C. Statement about voluntary transfers under the
Financial Sector (Transfers of Business) Act 1999 of
the Commonwealth
(1) If assets of a body (the "transferring body") are
transferred to another body (the "receiving body")
25 under Part 3 of the Financial Sector (Transfers of
Business) Act 1999 of the Commonwealth, the
receiving body must prepare and lodge a statement
with the Commissioner about the transfer.
page 13
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 5 Stamp Act 1921 -- Voluntary transfers under the Financial
Sector (Transfers of Business) Act 1999
s. 19
(2) The statement must be in a form approved by the
Commissioner and be lodged within 3 months of the
day of the transfer.
(3) Section 31B does not apply to, or in relation to, the
5 transfer.
(4) A person who --
(a) contravenes subsection (1); or
(b) lodges or makes a statement under
subsection (1) which is false in a material
10 particular,
commits an offence against this Act.
".
19. Section 75J amended
(1) Section 75J(1) is amended as follows:
15 (a) by deleting the definition of "section 31B statement";
(b) by inserting the following definition in the appropriate
alphabetical position --
"
"section 31B or 31C statement" means a statement
20 lodged under section 31B or 31C;
".
(2) Section 75J(4) is amended as follows:
(a) by inserting after "31B" --
" or sections 31C and 31D ";
25 (b) by inserting after "transaction" --
" or transfer ".
page 14
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Voluntary transfers under the Financial Part 5
Sector (Transfers of Business) Act 1999
s. 20
20. Section 75JC amended
(1) Section 75JC(1) is amended as follows:
(a) by inserting after "transaction" --
" or transfer ";
5 (b) by deleting "section 31B statement" and inserting
instead --
" section 31B or 31C statement ".
(2) Section 75JC(5)(a) and (b) are amended by deleting
"section 31B statement" and inserting instead --
10 " section 31B or 31C statement ".
21. Section 75JE amended
Section 75JE(1)(d) is amended as follows:
(a) by deleting "section 31B statement" and inserting
instead --
15 " section 31B or 31C statement ";
(b) by inserting after "transaction" --
" or transfer ".
22. Sections 76AH and 76AO amended
Sections 76AH(4)(a) and 76AO(4)(a) are amended by inserting
20 after "31B" --
" , 31D ".
page 15
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 23
Part 6 -- Stamp Act 1921 -- Private unit trusts
23. The Act amended
The amendments in this Part are to the Stamp Act 1921*.
[* Reprinted as at 3 August 2001.]
5 24. Section 4 amended
Section 4(1) is amended in paragraph (c)(ii) of the definition of
"marketable security" by inserting after "section 63(2)" --
"
or that is a unit trust scheme registered
10 under section 63AA(2) or granted
interim registration under
section 63AC(2)
".
25. Section 20 amended
15 (1) Before section 20(1)(b) the following paragraph is inserted --
"
(ab) an instrument which is a statement prepared
under section 63AE may be stamped without
fine after that preparation if it is lodged within
20 the time allowed under section 63AE(1);
".
(2) Section 20(5a) is amended by inserting before "75HA" --
" 63AE, ".
26. Section 63 amended
25 After section 63(1) the following subsections are inserted --
"
(1a) In sections 63AE and 63AF --
"disposition" has the same meaning as it has in
section 73D.
page 16
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
(1b) In sections 63AB, 63AC, 63AD, 63AE and 63AF --
"unit" has the same meaning as it has in section 73D.
".
27. Sections 63AA to 63AE inserted
5 After section 63 the following sections are inserted --
"
63AA. Registered unit trust schemes
(1) A unit trustee may apply to the Commissioner in a
form approved by the Commissioner for registration of
10 a unit trust scheme.
(2) The Commissioner may register the unit trust scheme
as a pooled investment trust or an equity trust with
effect from the date of the application if the
Commissioner is satisfied that --
15 (a) the unit trust scheme is eligible for registration
under section 63AB(2) as a pooled investment
trust or section 63AB(3) as an equity trust; and
(b) registration is not being used and is not likely to
be used as part of a scheme or arrangement
20 with the collateral purpose of avoiding or
reducing the duty that otherwise would be or
might become payable.
(3) For the purpose of being satisfied as to a matter
referred to in subsection (2)(b), the Commissioner may
25 take into account any matter that the Commissioner
considers to be relevant.
(4) The Commissioner shall advise the unit trustee in
writing whether or not he has registered the unit trust
scheme as a pooled investment trust or an equity trust.
30 (5) If the Commissioner decides not to register a unit trust
scheme as a pooled investment trust or an equity trust
page 17
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 27
he must give the unit trustee written reasons for his
decision.
63AB. Criteria for registration of a unit trust scheme
(1) In this section --
5 "land" has the same definition as in section 76.
(2) For the purposes of section 63AA(2), a unit trust
scheme is eligible for registration as a pooled
investment trust if it meets all of the following
criteria --
10 (a) not less than 5 persons are holders of units
under the scheme;
(b) no person beneficially entitled to units under
the scheme is entitled to more than 40% of the
total issued units under the scheme;
15 (c) no combination of 3 or fewer persons
beneficially entitled to units under the scheme
is entitled to 75% or more of the total issued
units under the scheme;
(d) the unit trustee, as trustee of the scheme, holds
20 directly or indirectly an interest in not less
than 2 parcels of land, and at least 2 of those
interests each have an unencumbered value of
$10 000 000 or more;
(e) each unit holder in the scheme --
25 (i) holds the unit in its capacity as a trustee
of a complying superannuation fund
within the meaning of the
Superannuation Guarantee
(Administration) Act 1992 of the
30 Commonwealth;
(ii) holds the unit in its capacity as a trustee
of a complying approved deposit fund
page 18
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
within the meaning of the
Superannuation Guarantee
(Administration) Act 1992 of the
Commonwealth;
5 (iii) holds the unit in its capacity as a trustee
or manager of a fund that is part of a
public sector superannuation scheme
within the meaning given to that term
by the Superannuation Industry
10 (Supervision) Act 1993 of the
Commonwealth;
(iv) is a life company that holds the unit
solely for the purpose of investing assets
of its statutory fund;
15 (v) holds the unit in its capacity as a trustee
of a unit trust that is not a unit trust
scheme; or
(vi) holds not more than 5% of the total
issued units under the scheme;
20 (f) the fund or scheme referred to in
paragraph (e)(i), (ii) or (iii) has not less than
100 members;
(g) if more than one unit holder in the scheme is a
unit holder referred to in paragraph (e)(vi),
25 those unit holders do not hold more than 10%
of the total issued units under the scheme;
(h) if the unit trustee is a corporation, no 2 persons
either directly or indirectly have appointed or
have power or hold sufficient shares in the
30 trustee to enable them to pass a resolution to
appoint a majority of directors of the
corporation;
(i) the scheme is open to further subscription from
new members;
page 19
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 27
(j) the initial subscription of each of the unit
holders under the scheme is not less than
$1 000 000.
(3) For the purposes of section 63AA(2), a unit trust
5 scheme is eligible for registration as an equity trust if it
meets all of the following criteria --
(a) the unit trustee, as trustee of the scheme, does
not hold, and is not empowered or able to hold,
any thing other than --
10 (i) shares in a company or corporation that
is not a company to which section 76AI
or a corporation to which section 76AP
applies;
(ii) units in a unit trust that are marketable
15 securities;
(iii) property that the Commissioner is
satisfied is necessary for the
administration of the scheme but which
is not and cannot be used for the
20 purpose of investment;
(iv) cash or money in an account at call;
(v) negotiable instruments, and money on
deposit with any person;
(b) not less than 5 persons are holders of units
25 under the scheme;
(c) no person beneficially entitled to units under
the scheme, other than the Government of the
Commonwealth, a State or a Territory or a
corporation of which such a Government is a
30 majority shareholder, is entitled to more than
40% of the total issued units under the scheme.
(4) For the purpose of determining whether the criteria
referred to in subsection (2)(b) and (c) and (3)(c) have
page 20
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
been satisfied, one person shall be treated as being
beneficially entitled to all units held by the person and
any other person namely --
(a) a related person within the meaning of
5 subsection (5);
(b) if the person is a corporation --
(i) a director or secretary of the corporation
or a related corporation; and
(ii) a person who is entitled to any
10 shareholding in the corporation or a
related corporation;
(c) a relative of any natural person referred to in
paragraph (a) or (b); and
(d) a corporation in which the first-mentioned
15 person or any person referred to in
paragraph (b) or (c) is entitled to any
shareholding.
(5) For the purposes of this section the following persons
are related --
20 (a) natural persons who are spouses of each other
or between whom the relationship is that of
parent and child;
(b) related corporations;
(c) a natural person and a trustee if the natural
25 person is a beneficiary under the trust of which
the trustee is a trustee, whether the person has a
vested share or is contingently entitled or may
benefit from a discretionary trust;
(d) a natural person and a corporation if the natural
30 person is a majority shareholder, director or
secretary of the corporation or a related
corporation;
page 21
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 27
(e) a corporation and a trustee if --
(i) the corporation, a majority shareholder,
director or secretary of the corporation
is a beneficiary of the trust of which the
5 trustee is a trustee; or
(ii) a related corporation to the corporation
is a beneficiary of the trust of which the
trustee is a trustee,
whether any such beneficiary has a vested share
10 or is contingently entitled or may benefit from a
discretionary trust.
(6) For the purpose of subsection (4)(c) the following
persons are relatives --
(a) a child or remoter lineal descendant of the
15 person or his spouse;
(b) a parent or remoter lineal ancestor of the person
or his spouse;
(c) a brother or a sister of the person or his spouse;
(d) his spouse and a spouse of any person referred
20 to in paragraph (a), (b) or (c).
(7) For the purposes of subsections (5) and (6) --
(a) an illegitimate person shall be treated as the
legitimate child of his mother and reputed
father;
25 (b) a spouse includes a de facto spouse; and
(c) a majority shareholder in relation to a
corporation is a person who would have a
substantial holding in the corporation under the
definition of "substantial holding" in section 9
30 of the Corporations Act even if the reference in
that definition to 5% were a reference to 50%.
page 22
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
(8) An application for registration of a unit trust scheme as
a pooled investment trust shall be accompanied by a
statement in a form approved by the Commissioner
concerning the unencumbered value of the interest in
5 the parcels of land referred to in subsection (2)(d).
(9) Section 76AA(1) to (2a) apply for the purpose of
determining the unencumbered value of the interest in
the parcels of land referred to in subsection (2)(d) as if
a reference in section 76AA to a statement required to
10 be lodged under section 76AG or 76AN were a
reference to a statement required to be lodged under
subsection (8) and a reference to the unencumbered
value of land were a reference to the unencumbered
value of the interest in the parcel of land.
15 63AC. Interim registration
(1) A unit trustee may apply to the Commissioner in a
form approved by the Commissioner for interim
registration of a unit trust scheme not later than one
year after the day on which the first units under the
20 scheme are issued.
(2) The Commissioner may grant the unit trust scheme
interim registration as a pooled investment trust or an
equity trust, as the case may be, for a period of one
year beginning on the day on which the first units
25 under the scheme are issued (the "start up period")
if --
(a) the Commissioner is satisfied that the scheme
satisfies the criteria for registration set out in
section 63AB(2)(e), (f), (g), (h), (i) and (j) or
30 (3)(a), as the case requires; and
(b) the trustee gives the Commissioner an
undertaking that units in the scheme will be
issued so that at the end of the start up period
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Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 27
the scheme will also comply with the criteria
referred to in section 63AB(2)(a), (b), (c) and
(d) or (3)(b) and (c), as the case requires, and
the Commissioner is satisfied that those criteria
5 will be fulfilled by the end of the start up
period.
(3) The Commissioner shall advise the unit trustee in
writing whether or not he has granted the unit trust
scheme interim registration as a pooled investment
10 trust or an equity trust.
(4) If the Commissioner decides not to grant the unit trust
scheme interim registration as a pooled investment
trust or an equity trust he must give the unit trustee
written reasons for his decision.
15 63AD. Cancellation of registration or interim registration
(1) In this section and section 63AE a disqualifying event
occurs if --
(a) a unit trust scheme that has been registered
under section 63AA(2) ceases to comply with a
20 criterion that is applicable to it referred to in
section 63AB(2) or (3);
(b) during the start up period, a unit trust scheme
that has been granted interim registration ceases
to comply with a criterion that is applicable to it
25 referred to in section 63AB(2)(e), (f), (g), (h),
(i) and (j) or (3)(a); or
(c) on the day on which the start up period ends, a
unit trust scheme that has been granted interim
registration does not comply with a criterion
30 that is applicable to it referred to in
section 63AB(2)(a), (b), (c) and (d) or (3)(b)
and (c).
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Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
(2) If a disqualifying event occurs, the unit trustee shall,
within 14 days after the day on which the disqualifying
event occurs, give the Commissioner notice about the
disqualifying event.
5 (3) When the Commissioner receives a notice under
subsection (2) --
(a) in the case of a unit trust scheme registered
under section 63AA(2), the registration is
cancelled and the cancellation is taken to have
10 had effect on and from immediately before the
occurrence of the event; and
(b) in the case of a unit trust scheme granted
interim registration under section 63AC(2), the
interim registration is cancelled and the
15 cancellation is taken to have had effect on and
from immediately before the first units under
the scheme were issued.
(4) If the Commissioner has not been notified of the
occurrence of a disqualifying event but he is satisfied
20 that a disqualifying event has occurred, the
Commissioner shall --
(a) in the case of a unit trust scheme registered
under section 63AA(2), cancel the registration;
(b) in the case of a unit trust scheme granted
25 interim registration under section 63AC(2),
cancel the interim registration; and
(c) notify the unit trustee in writing of the
cancellation and the date on which the
cancellation takes effect.
30 (5) Cancellation under subsection (4) is taken to have had
effect --
(a) in the case of a unit trust scheme registered
under section 63AA(2), on and from
page 25
Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 27
immediately before the occurrence of the
disqualifying event; or
(b) in the case of a unit trust scheme granted
interim registration under section 63AC(2), on
5 and from immediately before the first units
under the scheme were issued.
(6) If the Commissioner is satisfied that a unit trust scheme
registered under section 63AA(2) or granted interim
registration under section 63AC(2) is being used as
10 part of a scheme or arrangement with the collateral
purpose of avoiding or reducing the duty that otherwise
would be or might become payable the Commissioner
shall --
(a) cancel the registration or interim registration;
15 and
(b) notify the unit trustee in writing of the
cancellation and the date on which the
cancellation takes effect.
(7) For the purpose of being satisfied as to a matter
20 referred to in subsection (6), the Commissioner may
take into account any matter that the Commissioner
considers to be relevant.
63AE. Statement about disqualifying event and subsequent
transfers or dispositions
25 (1) If a disqualifying event occurs in relation to a unit trust
scheme, the unit trustee of the scheme shall prepare
and lodge a statement with the Commissioner within
14 days after the day on which the disqualifying event
occurred.
30 (2) The statement shall --
(a) be in a form approved by the Commissioner;
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Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Stamp Act 1921 -- Private unit trusts Part 6
s. 27
(b) in relation to the occurrence of a disqualifying
event, contain details of the disqualifying event;
(c) in the case of the cancellation of the registration
of a unit trust scheme, contain details of
5 transfers and dispositions in relation to the
scheme that occurred in the period commencing
immediately before the occurrence of the
disqualifying event and ending on the day on
which the Commissioner is given notice of the
10 event or the day on which the Commissioner is
satisfied that the event occurred and which
would have been chargeable with duty under
section 73D had the scheme not been
registered; and
15 (d) in the case of the cancellation of the interim
registration of a unit trust scheme, contain
details of transfers and dispositions in relation
to the scheme that occurred in the period
commencing immediately before the first units
20 under the scheme were issued and ending on
the day on which the Commissioner is given
notice of the event or the day on which the
Commissioner is satisfied that the event
occurred and which would have been
25 chargeable with duty under section 73D had the
scheme not been granted interim registration.
(3) A person who --
(a) contravenes subsection (1) or (2); or
(b) lodges or makes a statement under
30 subsection (1) which is false in a material
particular,
commits an offence against this Act.
".
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Revenue Laws Amendment (Assessment) Bill (No. 2) 2001
Part 6 Stamp Act 1921 -- Private unit trusts
s. 28
28. Section 73D amended
After section 73D(10) the following subsections are inserted --
"
(11) Subject to subsection (12), this section does not apply
5 to a disposition of a unit in a unit trust scheme during
any period that the unit trust scheme is --
(a) registered under section 63AA(2); or
(b) granted interim registration under
section 63AC(2).
10 (12) If the registration or interim registration of a unit trust
scheme is cancelled, this section is taken to have
applied to the unit trust scheme from the time the
cancellation was taken to have effect unless duty is
chargeable under section 63AF.
15 ".
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