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State Taxation Acts Amendment Act 2020 No. of 2020 TABLE OF PROVISIONS Clause Page Part 1--Preliminary 1 1 Purposes 1 2 Commencement 2 Part 2--Amendment of Duties Act 2000 3 3 Definitions 3 4 Partners taken to have beneficial ownership of individual partnership property 3 5 What is dutiable property? 3 6 Equity release programs 3 7 Section 57H substituted 4 8 What is a PPR transfer? 5 9 Requirements--first home buyers 5 10 Residence requirement 6 11 Reduction in duty in relation to eligible transfers 7 12 What are interests and significant interests in landholders? 7 13 Section 245 substituted 8 14 What is the rate of duty? 8 15 Heading to Division 1 of Part 2 of Chapter 11 substituted 9 16 Section 250 amended 9 17 Section 250A substituted and new section 250AB inserted 10 18 Section 250B amended 15 19 Repeal of heading to Division 1A of Part 2 of Chapter 11 16 20 Repeal of sections 250DA, 250DB, 250DC and 250DD 17 21 Section 250DG substituted 17 Part 3--Amendments to Environment Protection legislation 20 Division 1--Amendment of Environment Protection Act 1970 20 22 Landfill levy--amount payable 20 23 Schedule DA amended 20 24 New Schedule DB inserted 21 25 New Schedule F inserted 21 Division 2--Amendment of Environment Protection Amendment Act 2018 22 26 Requirement to pay waste levy 22 i Clause Page 27 Requirement to pay landfill levy 22 28 Schedule 2 substituted 22 Part 4--Amendment of First Home Owner Grant Act 2000 25 29 Definitions and cross-references 25 30 Payment in anticipation of compliance with residence requirement 25 Part 5--Amendment of Gambling Regulation Act 2003 26 31 Definitions for wagering and betting tax 26 32 New section 4.6A.1A inserted 26 33 Tax-free threshold where wagering and betting entity leaves a group 27 34 Supplementary provisions for determining tax for groups-- members joining or forming groups during financial year 27 35 New section 4.6A.16A inserted 27 36 Transitional provisions 29 Part 6--Amendment of Land Tax Act 2005 30 37 Definitions 30 38 General imposition of land tax 30 39 Taxable value of parts of land not separately valued 30 40 Abolition of special land tax 31 41 What is the rate of land tax? 31 42 Assessment of joint owners of land 31 43 Joint assessments in the case of principal place of residence land 31 44 General land tax surcharge for trusts 32 45 Land tax for PPR land if nominated PPR beneficiary 32 46 Land tax for PPR land if nominated PPR beneficiary--absentee trusts 33 47 Definitions for Division 1 of Part 4 33 48 Principal place of residence exemption 34 49 Absence from principal place of residence 34 50 Exemption continues on death of resident 35 51 Purchase of new principal residence 35 52 Sale of old principal residence 36 53 Unoccupied land subsequently used as principal residence 36 54 Partial exemption if land used for business activities 37 55 Section 62A substituted 37 56 Section 73 substituted and new section 73A inserted 38 57 Land tax is a first charge on land 40 58 Registration of charge 40 59 Recovery from lessee, mortgagee or occupier 40 60 Section 105 repealed 40 61 Transitional provision 41 ii Clause Page Part 7--Amendment of Taxation Administration Act 1997 42 62 Definitions 42 63 New section 36AA inserted 42 64 Part 9 heading amended 42 65 New Division 4 of Part 9 inserted 43 Part 8--Amendment of Valuation of Land Act 1960 45 66 Supplementary valuation--section 13DF 45 67 Valuation authority to make supplementary valuation if requested by council 45 68 Supplementary valuation--section 13L 46 69 Valuation authority to make supplementary valuation if requested by collection agency 46 Part 9--Repeal of this Act 47 70 Repeal of this Act 47 ═════════════ Endnotes 48 1 General information 48 iii State Taxation Acts Amendment Act 2020 No. of 2020 [Assented to ] The Parliament of Victoria enacts: Part 1--Preliminary 1 Purposes The purposes of this Act are-- (a) to make miscellaneous amendments to the Duties Act 2000; and (b) to amend the Environment Protection Act 1970 and the Environment Protection Amendment Act 2018 in relation to the waste levy scheme; and 1 State Taxation Acts Amendment Act 2020 No. of 2020 Part 1--Preliminary (c) to amend the First Home Owner Grant Act 2000 in relation to new homes and the residence requirement; and (d) to amend the Gambling Regulation Act 2003 in relation to the wagering and betting tax; and (e) to make miscellaneous amendments the Land Tax Act 2005, including the abolition of special land tax; and (f) to amend the Taxation Administration Act 1997 in relation to property clearance certificates and other matters; and (g) to amend the Valuation of Land Act 1960 in relation to supplementary valuations. 2 Commencement This Act comes into operation on the day after the day on which it receives the Royal Assent. 2 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 Part 2--Amendment of Duties Act 2000 3 Definitions In section 3(1) of the Duties Act 2000, in the definition of green car, for "of less than" substitute "that do not exceed". 4 Partners taken to have beneficial ownership of individual partnership property After section 3H(1) of the Duties Act 2000 insert-- "(1A) Without limiting subsection (1), if the partnership property of a partnership (first partnership) includes an interest in another partnership, whether directly or indirectly through one or more other partnerships, a partner in the first partnership is also taken to have beneficial ownership of each item of the partnership property of each other partnership-- (a) to the extent of the direct or indirect interest in the other partnership; and (b) in the same proportion as the partner's partnership interest in the first partnership.". 5 What is dutiable property? In section 10(1)(ad) of the Duties Act 2000, after "an interest" insert "(other than a security interest)". 6 Equity release programs (1) After section 55(3) of the Duties Act 2000 insert-- "(3A) The Commissioner, in accordance with guidelines issued under subsection (3B), may by instrument approve a person to be a 3 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 permitted provider for the purposes of this section. (3B) The Treasurer must issue guidelines for the exercise of the Commissioner's power of approval under subsection (3A). (3C) The Treasurer must cause guidelines issued under subsection (3B) to be published in the Government Gazette.". (2) In section 55(4) of the Duties Act 2000, in the definition of permitted provider-- (a) in paragraph (e), for "section 3(1)." substitute "section 3(1); or"; (b) after paragraph (e) insert-- "(f) a person approved by the Commissioner under subsection (3A).". 7 Section 57H substituted For section 57H of the Duties Act 2000 substitute-- "57H Land to which this Division applies (1) This Division applies to the following-- (a) land to which is affixed a building that, in the Commissioner's opinion-- (i) is designed and constructed primarily for residential purposes; and (ii) may lawfully be used as a place of residence; (b) land that, in the Commissioner's opinion, is vacant land on which a person intends to construct a building referred to in subsection (a). 4 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (2) The Commissioner may treat land as vacant land for the purposes of this Division if the Commissioner is satisfied that the land is substantially vacant apart from there being on the land-- (a) the remnant of any building, or any other object or structure, that the Commissioner is satisfied has been preserved because of its heritage significance; or (b) any building or structure that the Commissioner is satisfied is intended to be demolished.". 8 What is a PPR transfer? In section 57I(1) of the Duties Act 2000, after "in land" insert "referred to in section 57H". 9 Requirements--first home buyers (1) In section 57JB of the Duties Act 2000-- (a) for "the requirements for a transferee in respect of a PPR transfer are" substitute "the first requirement for a transferee in respect of a PPR transfer is"; (b) in paragraph (b)(ii), for "that Act." substitute "that Act; or"; (c) after paragraph (b) insert-- "(c) in the case of land referred to in section 57H(1)(b), would be payable under section 7 of the First Home Owner Grant Act 2000 if-- (i) at the date of the transfer, there was a new home on the land; and (ii) section 12 of that Act did not apply.". 5 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (2) At the end of section 57JB of the Duties Act 2000 insert-- "(2) For the purposes of section 57JA, the second requirement for a transferee in respect of a PPR transfer is that neither the transferee nor the transferee's partner has received an exemption or concession under that section in relation to an earlier transfer.". 10 Residence requirement (1) For section 57K(1) of the Duties Act 2000 substitute-- "(1) It is a requirement for the purposes of the matters specified in subsection (1A) that the transferee occupies the land as the transferee's principal place of residence-- (a) in the case of land referred to in section 57H(1)(a), for a continuous period of at least 12 months commencing within the 12 month period immediately after the transferee became entitled to possession of the land; or (b) in the case of land referred to in section 57H(1)(b), for a continuous period of at least 12 months commencing within the 12 month period immediately after the earlier of-- (i) the date on which the transferee was lawfully first able to use the building as a place of residence; or (ii) the date that is 24 months after the transferee became entitled to possession of the land. 6 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (1A) For the purposes of subsection (1), the following are specified-- (a) a PPR concessional rate; (b) an exemption or concession from duty under section 57JA; (c) an adjustment of consideration under section 21(3) or (4) or 32V(3) or (4).". (2) In section 57K(2) of the Duties Act 2000, for "requirement" substitute "residence requirement". (3) After section 57K(2) of the Duties Act 2000 insert-- "(2A) In determining whether land is occupied as the principal place of residence of a transferee, account must be taken of every place of residence of the transferee, whether in Victoria or elsewhere.". 11 Reduction in duty in relation to eligible transfers In section 64B of the Duties Act 2000-- (a) in subsection (1), in item 2 of the Table, for "1 July 2021" substitute "1 January 2021"; (b) in subsection (1), for items 3, 4 and 5 of the Table substitute-- "3 On or after 1 January 2021 50%"; (c) in subsection (2), for "1 July 2023" substitute "1 January 2021". 12 What are interests and significant interests in landholders? At the foot of section 79(2) of the Duties Act 2000 insert-- "Note For 3 years following a corporate consolidation, in certain circumstances a landholder that is not a private unit trust scheme is taken to be a private unit trust scheme in 7 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 determining if a person makes a relevant acquisition--see section 250DG.". 13 Section 245 substituted For section 245 of the Duties Act 2000 substitute-- "245 What is the rate of duty? The rate of duty for each sheep, goat or carcase sold is-- (a) for a sheep, goat or carcase sold before 1 January 2021--12 cents; or (b) for a sheep, goat or carcase sold on or after 1 January 2021 and before 1 January 2022--19 cents; or (c) for a sheep, goat or carcase sold on or after 1 January 2022 and before 1 January 2023--27 cents; or (d) for a sheep, goat or carcase sold on or after 1 January 2023--35 cents.". 14 What is the rate of duty? In section 247 of the Duties Act 2000-- (a) in subsection (1)(a), after "pig" insert "or carcase"; (b) in subsection (1)(b), after "pigs" insert "or carcases"; (c) in subsection (2), after "pig" insert "or carcase". 8 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 15 Heading to Division 1 of Part 2 of Chapter 11 substituted For the heading to Division 1 of Part 2 of Chapter 11 of the Duties Act 2000 substitute-- "Division 1--Exemptions and concessions for corporate consolidations and reconstructions". 16 Section 250 amended (1) For the heading to section 250 of the Duties Act 2000 substitute-- "Definitions". (2) In section 250(1) of the Duties Act 2000 insert the following definitions-- "consolidated group has the same meaning as in section 703-5 of the ITAA; corporate consolidation means the interposition of a head company between a corporation that is a member of a corporate group and the shareholders or unit holders of that corporation for the purposes of the formation or continuation of a consolidated group; head company means a corporation that is a head company within the meaning of section 703-15(2)(a) of the ITAA; ITAA means the Income Tax Assessment Act 1997 of the Commonwealth;". (3) After section 250(4) of the Duties Act 2000 insert-- "(5) For the purposes of this Division, a corporate group is substantially the same corporate group if its membership is the same except for the addition or omission of one or more subsidiaries of the parent corporation.". 9 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 17 Section 250A substituted and new section 250AB inserted For section 250A of the Duties Act 2000 substitute-- "250A What is an eligible transaction? (1) For the purposes of this Division, an eligible transaction is any of the following-- (a) a transfer of dutiable property from one member of a corporate group to another member of the group; (b) a vesting of dutiable property by, or as a consequence of, a court order where the property was held by one member of a corporate group and is vested in another member of the group; (c) the granting of a lease referred to in section 7(1)(b)(v) by one member of a corporate group to another member of the group; (d) the transfer or assignment of a lease referred to in section 7(1)(b)(va) from one member of a corporate group to another member of the group; (e) an application referred to in section 214(1) for the registration or transfer of registration of a motor vehicle as a result of a transfer of the vehicle from one member of a corporate group to another member of the group; (f) a dutiable transaction to which section 14 applies between members of a corporate group; 10 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (g) a relevant acquisition to which section 83 applies by a member of a corporate group from another member of the group; (h) a declaration of trust relating to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by one member of a corporate group under which the dutiable property is held on trust for another member of the group; (i) any other transaction that results in the beneficial ownership of dutiable property (other than an excluded transaction) moving from one member of a corporate group to another member of the group. (2) For the purposes of this Division, an eligible transaction is also any of the following that occurs solely for the purposes of a corporate consolidation-- (a) a transfer of dutiable property from a shareholder or unitholder of a corporation to the head company; (b) a vesting of dutiable property by, or as a consequence of, a court order where the property was held by a shareholder or unitholder of a corporation and is vested in the head company; (c) the granting of a lease referred to in section 7(1)(b)(v) by a shareholder or unitholder of a corporation to the head company; 11 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (d) the transfer or assignment of a lease referred to in section 7(1)(b)(va) from a shareholder or unitholder of a corporation to the head company; (e) an application referred to in section 214(1) for the registration of a motor vehicle or for the transfer of registration of a motor vehicle as a result of a transfer of the vehicle from a shareholder or unitholder of a corporation to the head company; (f) a dutiable transaction to which section 14 applies between a shareholder or unitholder of a corporation and the head company; (g) a relevant acquisition to which section 83 applies-- (i) by the head company from a shareholder or unitholder of a corporation; or (ii) by a shareholder or unitholder of a corporation from the head company; (h) a declaration of trust relating to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by the head company under which the dutiable property is held on trust for a shareholder or unitholder of a corporation; (i) any other transaction that results in the beneficial ownership of dutiable property (other than an excluded transaction) moving from a shareholder 12 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 or unitholder of a corporation to the head company. (3) Despite subsection (2), a transaction is not an eligible transaction unless-- (a) the only consideration provided by the head company for the transaction consists of the issue of shares in the head company to the shareholders or unitholders of the corporation; and (b) immediately after the issue of shares in the head company, all the shareholders in the head company are persons who were shareholders or unitholders in the corporation immediately before their shares or units were acquired by the head company. (4) Subsection (3)(a) does not apply to a transaction referred to in subsection (2)(g)(ii). (5) Despite subsections (1)(a) and (2)(a), a transfer of dutiable property from one member of a corporate group to another member of the group is not an eligible transaction if-- (a) the dutiable property is transferred under an agreement; and (b) at the time the agreement was entered into, the vendor and the purchaser were not members of the same corporate group or substantially the same corporate group. (6) For the purposes of subsection (5)-- (a) a reference to a vendor includes a reference to a person who, at the time the agreement was entered into, was the 13 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 grantee of a put option or the grantor of a call option; and (b) a reference to a purchaser includes a reference to a person who, at the time the agreement was entered into-- (i) held a transfer right (within the meaning of Part 4A of Chapter 2); or (ii) was the grantor of a put option or the grantee of a call option; and (c) a reference to an agreement includes a reference to an arrangement that includes both a put option and a call option. (7) Despite anything to the contrary in subsection (1) or (2), the addition or omission of one or more subsidiaries of the parent corporation is not an eligible transaction. 250AB What is an arrangement? In this Division (other than in section 250A(6)(c)), an arrangement means an arrangement consisting of two or more eligible transactions that do not involve any corporation or person other than-- (a) members of the same corporate group or substantially the same corporate group; or (b) a head company to be interposed between the shareholders or unit holders of a corporation that is in-- (i) the same corporate group or substantially the same corporate group; or 14 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (ii) a corporate group that consists of members of the same corporate group or substantially the same corporate group, and any other company that was a head company interposed during a previous corporate consolidation; or (c) shareholders or unit holders of a corporation that is a member of the same corporate group or substantially the same corporate group.". 18 Section 250B amended (1) In the heading to section 250B of the Duties Act 2000, for "reconstruction" substitute "reconstructions, corporate consolidations and arrangements". (2) For section 250B(2) of the Duties Act 2000 substitute-- "(2) No duty is chargeable under this Act on an eligible transaction to the extent that-- (a) duty is chargeable on an earlier eligible transaction in relation to the same dutiable property; and (b) the eligible transaction and the earlier eligible transaction referred to in paragraph (a) form an arrangement or part of an arrangement; and (c) the eligible transaction occurs within 30 days after the day on which the first eligible transaction occurred in the arrangement.". 15 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 (3) For section 250B(3A) of the Duties Act 2000 substitute-- "(3A) No duty is chargeable under this Act on an eligible transaction that is an application for the registration or transfer of registration of a motor vehicle if-- (a) duty is chargeable on an earlier eligible transaction that is an application for the registration or transfer of registration of the same motor vehicle; and (b) the eligible transaction and the earlier eligible transaction referred to in paragraph (a) form an arrangement or part of an arrangement; and (c) the eligible transaction occurs within 30 days after the day on which the first eligible transaction occurred in the arrangement. (3B) If an arrangement continues for more than 30 days, subsections (2) and (3A) apply in relation to each 30 day period for which the arrangement continues as if the first eligible transaction that occurs in the arrangement after the end of each 30 day period were the first eligible transaction in the arrangement.". (4) In section 250B(4)(a) of the Duties Act 2000, after "corporate group" insert "or consolidated group". 19 Repeal of heading to Division 1A of Part 2 of Chapter 11 The heading to Division 1A of Part 2 of Chapter 11 of the Duties Act 2000 is repealed. 16 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 20 Repeal of sections 250DA, 250DB, 250DC and 250DD Sections 250DA, 250DB, 250DC and 250DD of the Duties Act 2000 are repealed. 21 Section 250DG substituted For section 250DG of the Duties Act 2000 substitute-- "250DG Special provision in relation to landholder duty if there has been a corporate consolidation involving a private unit trust scheme (1) This section applies in relation to a landholder that is or has been a head company of a corporate group and that was interposed as the head company of the corporate group or substantially the same corporate group-- (a) by a corporate consolidation that consisted of the interposition of a head company between a private unit trust scheme and the unitholders of the private unit trust scheme; or (b) as a head company that succeeded, directly or indirectly, the head company referred to in paragraph (a), by any further corporate consolidation that occurred after the corporate consolidation referred to in paragraph (a). (2) For the purposes of Part 2 of Chapter 3, in determining whether a person makes a relevant acquisition in the landholder-- (a) the landholder must be taken to be a private unit trust scheme, being the same scheme as that existing 17 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 immediately before the corporate consolidation referred to in subsection (1)(a); and (b) a shareholding in the landholder must be taken to be a unitholding in that private unit trust scheme; and (c) if an interest in the private unit trust scheme held at any time before the corporate consolidation referred to in subsection (1)(a) was or would be counted for the purposes of section 78, that interest is to continue to be counted for the purposes of that section after the corporate consolidation referred to in subsection (1)(a) or any further corporate consolidation referred to in subsection (1)(b) (as the case requires); and (d) if an interest in the private unit trust scheme held at any time before the corporate consolidation referred to in subsection (1)(a) was not or would not be counted for the purposes of section 78, that interest is to continue not to be counted for the purposes of that section after the corporate consolidation referred to in subsection (1)(a) or any further corporate consolidation referred to in subsection (1)(b) (as the case requires); and (e) without limiting paragraph (a), any acquisition of an interest in land by the private unit trust scheme before the corporate consolidation referred to in subsection (1)(a) is taken to have been an interest acquired by the landholder at 18 State Taxation Acts Amendment Act 2020 No. of 2020 Part 2--Amendment of Duties Act 2000 the time it was acquired by the private unit trust scheme. (3) This section applies for a period of 3 years commencing at the time of the corporate consolidation referred to in subsection (1)(a).". 19 State Taxation Acts Amendment Act 2020 No. of 2020 Part 3--Amendments to Environment Protection legislation Part 3--Amendments to Environment Protection legislation Division 1--Amendment of Environment Protection Act 1970 22 Landfill levy--amount payable (1) In section 50S(2A) of the Environment Protection Act 1970, for "subsection (2AAA)" substitute "subsections (2AAA) and (2AAAB)". (2) In section 50S(2AAA) of the Environment Protection Act 1970, for "each year on and after 1 July 2015" substitute "the period on or after 1 July 2015 and before 1 July 2021". (3) After section 50S(2AAA) of the Environment Protection Act 1970 insert-- "(2AAAB) On or after 1 July 2021, the amount of levy payable under subsection (1) is the amount specified in dollars in Schedule DB for the relevant premises and type of waste.". (4) In section 50S(2AA) of the Environment Protection Act 1970, for "The amount" substitute "Subject to subsection (2AAB), the amount". (5) After section 50S(2AA) of the Environment Protection Act 1970 insert-- "(2AAB) On or after 1 July 2021, the amount of the levy payable under subsection (2) is the amount specified in Schedule F for the relevant category of prescribed industrial waste.". 23 Schedule DA amended (1) In the heading to Schedule DA to the Environment Protection Act 1970, after "1 July 2015" insert "to 30 June 2021". 20 State Taxation Acts Amendment Act 2020 No. of 2020 Part 3--Amendments to Environment Protection legislation (2) In Schedule DA to the Environment Protection Act 1970, after "1 July 2015" insert "and before 1 July 2021". 24 New Schedule DB inserted After Schedule DA to the Environment Protection Act 1970 insert-- "Schedule DB--Amount payable as landfill levy from 1 July 2021 Amount payable for each tonne deposited (in dollars) Non-Schedule C Schedule C Premises Premises Date when waste is Municipal Industrial Municipal Industrial deposited waste waste waste waste on or after 1 July 105.90 105.90 52.95 93.19 2021 ". 25 New Schedule F inserted After Schedule E to the Environment Protection Act 1970 insert-- "Schedule F--Amount payable as prescribed industrial waste landfill levy for each tonne deposited on to land (in dollars) from 1 July 2021 Category B waste 250 Category C waste not being packaged waste asbestos 105.90 Category C waste which is packaged waste asbestos 30". 21 State Taxation Acts Amendment Act 2020 No. of 2020 Part 3--Amendments to Environment Protection legislation Division 2--Amendment of Environment Protection Amendment Act 2018 26 Requirement to pay waste levy In section 7 of the Environment Protection Amendment Act 2018-- (a) in proposed section 145(3) of the Environment Protection Act 2017, after "relevant premises," insert "period,"; (b) in proposed section 145(4) of the Environment Protection Act 2017-- (i) after "waste, Category C waste" insert ", Category D waste"; (ii) in paragraph (a)(ii), after "Schedule 2" insert "for that period". 27 Requirement to pay landfill levy In section 18 of the Environment Protection Amendment Act 2018, in proposed section 493(2) of the Environment Protection Act 2017, for "1 July" substitute "30 June". 28 Schedule 2 substituted In section 23 of the Environment Protection Amendment Act 2018, for proposed Schedule 2 to the Environment Protection Act 2017 substitute-- 22 State Taxation Acts Amendment Act 2020 No. of 2020 Part 3--Amendments to Environment Protection legislation "Schedule 2--Amount payable as waste levy Table 1 Amount of waste levy payable under section 145(1) for each tonne of waste received Premises in Premises that are not prescribed municipal in prescribed districts municipal districts Date when waste is Municipal Industrial Municipal Industrial received Waste Waste Waste Waste On or after 1 July 2021 $105.90 $105.90 $52.95 $93.19 and before 1 July 2022 On or after 1 July 2022 $125.90 $125.90 $62.95 $110.79 and before 1 July 2023 On or after 1 July 2023 8*13 fee 8*13 fee 4*06 fee 7*15 fee units units units units Note The regulations may prescribe municipal districts that are subject to a higher waste levy payable for each tonne of municipal waste or industrial waste that is received. 23 State Taxation Acts Amendment Act 2020 No. of 2020 Part 3--Amendments to Environment Protection legislation Table 2 Amount of waste levy payable under section 145(2) for each tonne of priority waste received Packaged Date when waste is waste Category Category Category received asbestos B waste C waste D waste On or after 1 July 2021 2*06 fee 17*15 fee $105.90 $105.90 and before 1 July 2022 units units On or after 1 July 2022 2*06 fee 17*15 fee $125.90 $125.90 and before 1 July 2023 units units On or after 1 July 2023 2*06 fee 17*15 fee 8*13 fee 8*13 fee units units units units Note There is no amount of waste levy payable for receiving Category A waste as receiving Category A at a landfill is prohibited. The regulations may prescribe an amount payable as the waste levy for each tonne of priority waste (other than Category B waste, Category C waste, Category D waste or packaged waste asbestos) that is received.". 24 State Taxation Acts Amendment Act 2020 No. of 2020 Part 4--Amendment of First Home Owner Grant Act 2000 Part 4--Amendment of First Home Owner Grant Act 2000 29 Definitions and cross-references In section 3(1) of the First Home Owner Grant Act 2000, for the definition of new home substitute-- "new home means a home that has not been previously occupied or sold as a place of residence or for the provision of short term accommodation, and includes a substantially renovated home and a home built to replace demolished premises;". 30 Payment in anticipation of compliance with residence requirement (1) In section 20(2)(b) of the First Home Owner Grant Act 2000, before "repay" insert "unless the Commissioner exercises a discretion under section 12 in relation to the residency requirement,". (2) After section 20(3) of the First Home Owner Grant Act 2000 insert-- "(4) A failure of a person to notify the Commissioner as required under subsection (2)(a) does not affect the Commissioner's power to exercise a discretion under section 12.". 25 State Taxation Acts Amendment Act 2020 No. of 2020 Part 5--Amendment of Gambling Regulation Act 2003 Part 5--Amendment of Gambling Regulation Act 2003 31 Definitions for wagering and betting tax (1) In section 4.6A.1 of the Gambling Regulation Act 2003-- (a) insert the following definition-- "net winnings, in relation to a free bet, means the winnings payable on the bet minus the face value of the bet;"; (b) in the definition of net wagering revenue, in paragraph (a)(iii), for "including winnings" substitute "including net winnings". (2) At the end of section 4.6A.1 of the Gambling Regulation Act 2003 insert-- "(2) In determining the net wagering revenue of a wagering and betting entity, including a member of a group, any amounts in respect of GST payable by the entity in respect of supplies to which the revenue relates are to be included.". 32 New section 4.6A.1A inserted After section 4.6A.1 of the Gambling Regulation Act 2003 insert-- "4.6A.1A Bets made in foreign currency For the purposes of this Part, if a bet is made in a currency other than Australian currency, the amount of the bet is to be converted to Australian currency at the exchange rate published by the Reserve Bank of Australia-- (a) on the day on which the bet is made; or 26 State Taxation Acts Amendment Act 2020 No. of 2020 Part 5--Amendment of Gambling Regulation Act 2003 (b) if the rate is not published on that day, on the last day on which the rate was published before that day.". 33 Tax-free threshold where wagering and betting entity leaves a group At the foot of section 4.6A.4(1) of the Gambling Regulation Act 2003 insert-- "Note See section 4.6A.16A for the situation where the leaving entity joins or forms another group during the financial year.". 34 Supplementary provisions for determining tax for groups--members joining or forming groups during financial year (1) In section 4.6A.16(1) of the Gambling Regulation Act 2003-- (a) after "entity" (where first occurring) insert "that is not a member of a group"; (b) for "another joining entity" substitute "another wagering and betting entity". (2) At the foot of section 4.6A.16(1) of the Gambling Regulation Act 2003 insert-- "Note See section 4.6A.16A for the situation where the joining entity was a member of another group during the financial year.". 35 New section 4.6A.16A inserted After section 4.6A.16 of the Gambling Regulation Act 2003 insert-- "4.6A.16A Supplementary provisions for determining tax for groups--members leaving groups and joining other groups during financial year 27 State Taxation Acts Amendment Act 2020 No. of 2020 Part 5--Amendment of Gambling Regulation Act 2003 (1) This section applies if a wagering and betting entity (the transferring entity) ceases to be a member of a group (group A) and becomes a member of another group (group B) during a financial year, whether group B is an existing group or a new group formed by the transferring entity and another wagering and betting entity. (2) For the purposes of section 4.6A.15-- (a) if wagering and betting tax was payable by group A during that financial year before the transferring entity ceased to be a member, the tax-free threshold for group B is zero in respect of the remainder of the financial year, including the month in which the transferring entity became a member; and (b) if all of the members of group B were members of group A before joining or forming group B, any net wagering revenue of each of the transferring entities during that financial year while they were members of group A is to be included in the ANWR of group B in the month in which the transferring entities became members of group B unless wagering and betting tax was payable by group A on that net wagering revenue under section 4.6A.15.". 28 State Taxation Acts Amendment Act 2020 No. of 2020 Part 5--Amendment of Gambling Regulation Act 2003 36 Transitional provisions At the end of Schedule 7 to the Gambling Regulation Act 2003 insert-- "Part 37--State Taxation Acts Amendment Act 2020 37.1 Wagering and betting tax Part 6A of Chapter 4 must be taken to have applied at all times on and after 1 January 2019 as if the amendments made to that Part by sections 31 and 32 of the State Taxation Acts Amendment Act 2020 had come into operation on that day. Note 1 January 2019 is the date on which Part 6A of Chapter 4 came into operation--see section 2 of the Gambling Regulation Amendment (Wagering and Betting) Act 2018.". 29 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 Part 6--Amendment of Land Tax Act 2005 37 Definitions In section 3(1) of the Land Tax Act 2005-- (a) insert the following definition-- "separate residence means a building, or a part of a building, that is capable of separate occupation as a residence;"; (b) the definition of special land tax is repealed. 38 General imposition of land tax In the note at the foot of section 7 of the Land Tax Act 2005 omit "For special land tax, see Division 5.". 39 Taxable value of parts of land not separately valued For section 22(2) of the Land Tax Act 2005 substitute-- "(2) The taxable value of the part is determined in accordance with the formula-- A/B × C where-- A is the total area of the part of the land that is taxable; B is the total area of the whole land; C is the site value of the whole land. (3) In this section-- total area, in relation to land or a part of land, means the area of the land or part plus the sum of the areas of each floor of a building on the land or part (whether above or below ground) other than the ground floor.". 30 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 40 Abolition of special land tax Division 5 of Part 2 of the Land Tax Act 2005 is repealed. 41 What is the rate of land tax? In section 35 of the Land Tax Act 2005-- (a) in subsection (1) omit "special land tax and"; (b) subsections (1A) and (2) are repealed. 42 Assessment of joint owners of land After section 38(3) of the Land Tax Act 2005 insert-- "(3A) For the purpose of assessing land tax under subsection (3), joint owners of taxable land who are joint tenants of the land are taken to hold the land as tenants in common in equal shares.". 43 Joint assessments in the case of principal place of residence land In section 39(1) of the Land Tax Act 2005-- (a) for "that is jointly owned" substitute "owned by joint owners"; (b) for paragraph (b) substitute-- "(b) the land is taxable land in relation to each joint owner who does not use and occupy it as his or her principal place of residence and each such owner may be separately assessed in respect of the land under section 38(3).". 31 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 44 General land tax surcharge for trusts After section 46A(3) of the Land Tax Act 2005 insert-- "(3A) Subsection (3)(a) or (b)(ii) does not apply if rent is paid by or on behalf of the nominated PPR beneficiary for use and occupation of the land.". 45 Land tax for PPR land if nominated PPR beneficiary (1) After section 46I(2) of the Land Tax Act 2005 insert-- "(2A) For the purposes of subsection (2), land is not taken to be occupied as a place of residence unless there is a building affixed to the land (including a home unit) that, in the Commissioner's opinion-- (a) is designed and constructed primarily for residential purposes; and (b) may lawfully be used as a place of residence.". (2) For section 46I(4) of the Land Tax Act 2005 substitute-- "(4) Subsection (2) does not apply if-- (a) rent is paid by or on behalf of the nominated PPR beneficiary for use and occupation of the land in the year preceding the tax year; or (b) the land contains a separate residence used to derive income from the land in the year preceding the tax year; or (c) the land is used to carry on a substantial business activity in the year preceding the tax year.". 32 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 46 Land tax for PPR land if nominated PPR beneficiary--absentee trusts (1) After section 46IF(2A) of the Land Tax Act 2005 insert-- "(2B) For the purposes of subsections (2) and (2A), land is not taken to be occupied as a place of residence unless there is a building affixed to the land (including a home unit) that, in the Commissioner's opinion-- (a) is designed and constructed primarily for residential purposes; and (b) may lawfully be used as a place of residence.". (2) For section 46IF(4) of the Land Tax Act 2005 substitute-- "(4) Subsection (2)(a) or (2A)(a) does not apply if-- (a) rent is paid by or on behalf of the nominated PPR beneficiary for use and occupation of the land in the year preceding the tax year; or (b) the land contains a separate residence used to derive income from the land in the year preceding the tax year; or (c) the land is used to carry on a substantial business activity in the year preceding the tax year.". 47 Definitions for Division 1 of Part 4 In section 52(1) of the Land Tax Act 2005 the definition of separate residence is repealed. 33 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 48 Principal place of residence exemption (1) After section 54(1A) of the Land Tax Act 2005 insert-- "(1B) Despite subsection (1)(b), land referred to in that subsection is not exempt land if rent is paid by or on behalf of the vested beneficiary for use and occupation of the land in the year preceding the tax year.". (2) In section 54(2) of the Land Tax Act 2005, for "section 55" substitute "sections 55 and 55A". 49 Absence from principal place of residence (1) After section 56(1A) of the Land Tax Act 2005 insert-- "(1B) Subsection (1A) does not apply in relation to a person who has a right to reside on the land.". (2) For section 56(2) of the Land Tax Act 2005 substitute-- "(2) Land will not to be taken to be used and occupied as the principal place of residence of a person under this section for a tax year if the person was unable to occupy the land as the person's principal place of residence in the year preceding the tax year because a residence was being constructed or renovated on the land. Note See section 61 in relation to land on which a residence is being constructed or renovated.". 34 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 (3) For section 56(5) of the Land Tax Act 2005 substitute-- "(5) The condition in this subsection is that the owner or trustee did not derive any income from the land in the year preceding the tax year.". 50 Exemption continues on death of resident After section 57(3) of the Land Tax Act 2005 insert-- "(4) Subsection (1) does not apply if the person who dies-- (a) had a right to reside on the land; or (b) held a life estate in possession in the land. (5) Subsection (1) does not apply in respect of a year if any income was derived from the land in the year preceding the tax year.". 51 Purchase of new principal residence In section 59 of the Land Tax Act 2005-- (a) in subsection (4), for "at any time when it was not occupied as the principal place of residence of the owner" substitute "in the year preceding the tax year"; (b) in subsection (5), for "at any time when it was not occupied as the principal place of residence of a vested beneficiary in relation to the land" substitute "in the year preceding the tax year". 35 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 52 Sale of old principal residence In section 60 of the Land Tax Act 2005-- (a) in subsection (4), for "at any time when it was not occupied as the principal place of residence of the owner" substitute "in the year preceding the tax year"; (b) in subsection (5), for "at any time when it was not occupied as the principal place of residence of a vested beneficiary in relation to the land" substitute "in the year preceding the tax year". 53 Unoccupied land subsequently used as principal residence (1) In section 61 of the Land Tax Act 2005-- (a) for subsection (1)(ab) substitute-- "(ab) the owner continuously uses and occupies the land as his or her principal place of residence for at least 6 months commencing within 6 months after the date on which the construction or renovation of the residence is completed; and"; (b) for subsection (2)(b) substitute-- "(b) the vested beneficiary continuously uses and occupies the land as his or her principal place of residence for at least 6 months commencing within 6 months after the date on which the construction or renovation of the residence is completed; and". 36 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 (2) For section 61(5) of the Land Tax Act 2005 substitute-- "(5) Subsections (1) (2), (3) and (4) do not apply in respect of a tax year if the owner or trustee derived any income from the land in the year preceding the tax year.". 54 Partial exemption if land used for business activities For section 62(3) and (4) of the Land Tax Act 2005 substitute-- "(3) If subsection (1) applies-- (a) land tax is assessable for the tax year on the part of the land that is not exempt land; and (b) section 22 applies, if necessary, for that purpose.". 55 Section 62A substituted For section 62A of the Land Tax Act 2005 substitute-- "62A Partial exemption if separate residence used to provide accommodation If land that would be exempt under this Division in respect of a tax year contains a separate residence that was used to derive income from the provision of accommodation in the year preceding the tax year-- (a) land tax is assessable for the tax year on the part of the land that contains the separate residence; and (b) section 22 applies, if necessary, for that purpose.". 37 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 56 Section 73 substituted and new section 73A inserted For section 73 of the Land Tax Act 2005 substitute-- "73 Land owned and occupied by racing clubs (1) Land or part of land that is owned and solely occupied by a racing club is not liable for land tax at a rate greater than 0⋅357% of the taxable value of the land or part. (2) For the purposes of subsection (1) and assessing land tax on any part of the land that is not solely occupied by a racing club, the land tax that is or that would be, but for the operation of subsection (1), attributable to a part of land is the proportion of the land tax that would, but for the operation of subsection (1), be payable on the whole of the land owned by a racing club. (3) In this section-- racing club means a society, club or association that-- (a) is not carried on for the purposes of the profit or gain to its individual members; and (b) is carried on exclusively for the purpose of promoting or controlling horse racing, pony racing or harness racing in Victoria. 73A Land owned and occupied by non-racing clubs (1) Land is exempt land if the Commissioner is satisfied that it is owned and solely occupied by a non-racing club. 38 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 (2) To obtain an exemption from land tax under subsection (1), a non-racing club must-- (a) apply to the Commissioner for the exemption; and (b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under subsection (1). (3) If the Commissioner is satisfied that only part of land is owned and solely occupied by a non-racing club-- (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, for that purpose. (4) In this section-- non-racing club means a society, club or association, other than a racing club, that-- (a) is not carried on for the purposes of the profit or gain to its individual members; and (b) is carried on exclusively for the purpose of providing for the social, cultural, recreational, literary or educational interests of its members; racing club has the meaning given in section 73.". 39 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 57 Land tax is a first charge on land In section 96 of the Land Tax Act 2005-- (a) in subsection (1), for "special land tax" substitute "any interest and penalty tax"; (b) in subsection (4)-- (i) in paragraph (b), for "section 105" substitute "section 95AA of the Taxation Administration Act 1997"; (ii) after "land tax" insert "(including any interest and penalty tax)". 58 Registration of charge In section 97(3) of the Land Tax Act 2005, after "tax" insert "(including any interest and penalty tax)". 59 Recovery from lessee, mortgagee or occupier (1) In section 98(1) of the Land Tax Act 2005, for "land tax" (where secondly occurring) substitute "an amount of land tax (including any interest and penalty tax)". (2) In section 98(1A)(a) and (b) of the Land Tax Act 2005 omit "of land tax". (3) In section 98(4) of the Land Tax Act 2005, for "tax" substitute "amount". (4) In section 98(5) of the Land Tax Act 2005-- (a) for "to tax" substitute "to an amount"; (b) for "the tax" substitute "the amount". (5) In section 98(6), (6A) and (7) of the Land Tax Act 2005 omit "of tax". 60 Section 105 repealed Section 105 of the Land Tax Act 2005 is repealed. 40 State Taxation Acts Amendment Act 2020 No. of 2020 Part 6--Amendment of Land Tax Act 2005 61 Transitional provision After clause 17 of Schedule 3 to the Land Tax Act 2005 insert-- "18 State Taxation Acts Amendment Act 2020 (1) Section 56(5), as in force immediately before the commencement day, continues to apply in relation to the 2021 tax year. (2) Section 96, as in force immediately before the commencement day, continues to apply on and after that day in relation to any special land tax not paid before that day. (3) On and after the commencement day, section 96(4) applies to a certificate issued under section 105 before its repeal as if the certificate were issued under section 95AA of the Taxation Administration Act 1997. (4) An application for a certificate under section 105 that was pending before the commencement day is taken, on and after that day, to be an application for a certificate under section 95AA of the Taxation Administration Act 1997. (5) In this clause-- commencement day means the day on which the State Taxation Acts Amendment Act 2020 comes into operation.". 41 State Taxation Acts Amendment Act 2020 No. of 2020 Part 7--Amendment of Taxation Administration Act 1997 Part 7--Amendment of Taxation Administration Act 1997 62 Definitions In section 3(1) of the Taxation Administration Act 1997, in the definition of return-- (a) in paragraph (b), for "liability;" substitute "liability; and"; (b) after paragraph (b) insert-- "(c) is of a type included on the list published by the Commissioner under section 36AA;". 63 New section 36AA inserted Before section 36 of the Taxation Administration Act 1997 insert-- "36AA Types of returns The Commissioner must publish a list on an internet site maintained by the Commissioner, specifying the types of return for the purpose of paragraph (c) of the definition of return in section 3(1).". 64 Part 9 heading amended In the heading to Part 9 of the Taxation Administration Act 1997, for "investigation and secrecy provisions" substitute "investigation, secrecy and property clearance certificates". 42 State Taxation Acts Amendment Act 2020 No. of 2020 Part 7--Amendment of Taxation Administration Act 1997 65 New Division 4 of Part 9 inserted After Division 3 of Part 9 of the Taxation Administration Act 1997 insert-- "Division 4--Property clearance certificates 95AA Property clearance certificates (1) An owner, purchaser or mortgagee of land may apply to the Commissioner for a certificate under this section. (2) An application must be accompanied by-- (a) the prescribed fee; or (b) if no fee is prescribed, a fee of 1*16 fee units. (3) If an application is duly made, the Commissioner must issue a certificate showing if there is any land tax (including any interest and penalty tax) due and unpaid on the land described in the application. (4) The Commissioner may include any other information in the certificate that the Commissioner thinks appropriate, including the following amounts in relation to the land described in the application-- (a) any land tax (including any interest and penalty tax)-- (i) that has been assessed but has not been paid and is not yet due; (ii) that is yet to be assessed for the year in which the certificate is issued; 43 State Taxation Acts Amendment Act 2020 No. of 2020 Part 7--Amendment of Taxation Administration Act 1997 (b) any other amounts recoverable under any law for which the Commissioner has the power of general administration. Note If a person is a bona fide purchaser for value of land and obtains a certificate under this section, a charge does not secure any amount of land tax on the land in excess of the amount set out in the certificate--see section 96 of the Land Tax Act 2005.". 44 State Taxation Acts Amendment Act 2020 No. of 2020 Part 8--Amendment of Valuation of Land Act 1960 Part 8--Amendment of Valuation of Land Act 1960 66 Supplementary valuation--section 13DF For section 13DF(4)(a) and (b) of the Valuation of Land Act 1960 substitute-- "(a) in the case of a supplementary valuation carried out at the request of a council that nominates a day under section 13DFB(2A)-- (i) for any period until the nominated day, by reference to the existing valuation; and (ii) from the day after the nominated day for the remainder of the period, upon the supplementary valuation; or (b) in any other case-- (i) for any period until the day of that return, by reference to the existing valuation; and (ii) from the day after that return for the remainder of the period, upon the supplementary valuation.". 67 Valuation authority to make supplementary valuation if requested by council After section 13DFB(2) of the Valuation of Land Act 1960 insert-- "(2A) A request under subsection (1) may nominate a day for the purposes of section 13DF(4)(a), being a day that is within the period for which the existing valuation applies and is not earlier than the day on which the circumstances referred to in section 13DF(2) occurred in relation to the land for which the supplementary valuation is to be caused.". 45 State Taxation Acts Amendment Act 2020 No. of 2020 Part 8--Amendment of Valuation of Land Act 1960 68 Supplementary valuation--section 13L For section 13L(5)(a) and (b) of the Valuation of Land Act 1960 substitute-- "(a) in the case of a supplementary valuation carried out at the request of a collection agency that nominates a day under section 13N(2A)-- (i) for any period until the day nominated by the collection agency, by reference to the existing valuation; and (ii) from the day after the nominated day for the remainder of the period, upon the supplementary valuation; or (b) in any other case-- (i) for any period until the day of that return, by reference to the existing valuation; and (ii) from the day after that return for the remainder of the period, upon the supplementary valuation.". 69 Valuation authority to make supplementary valuation if requested by collection agency After section 13N(2) of the Valuation of Land Act 1960 insert-- "(2A) A request under subsection (1) may nominate a day for the purposes of section 13L(5)(a), being a day that is within the period for which the existing valuation applies and is not earlier than the day on which the circumstances referred to in section 13L(2) occurred in relation to the land for which the supplementary valuation is to be caused.". 46 State Taxation Acts Amendment Act 2020 No. of 2020 Part 9--Repeal of this Act Part 9--Repeal of this Act 70 Repeal of this Act This Act is repealed on the first anniversary of its commencement. Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═════════════ 47 State Taxation Acts Amendment Act 2020 No. of 2020 Endnotes Endnotes 1 General information See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. Minister's second reading speech-- Legislative Assembly: Legislative Council: The long title for the Bill for this Act was "A Bill for an Act to amend the Duties Act 2000, the Environment Protection Act 1970, the Environment Protection Amendment Act 2018, the First Home Owner Grant Act 2000, the Gambling Regulation Act 2003, the Land Tax Act 2005, the Taxation Administration Act 1997 and the Valuation of Land Act 1960 and for other purposes." By Authority. Government Printer for the State of Victoria. 48
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