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STATE TAXATION (AMENDMENT) BILL 1997

                 PARLIAMENT OF VICTORIA

           State Taxation (Amendment) Act 1997
                                 Act No.


                      TABLE OF PROVISIONS
Clause                                                          Page

PART 1--PRELIMINARY                                                1
  1.     Purpose                                                   1
  2.     Commencement                                              2

PART 2--DEBITS TAX ACT 1990                                        3
  3.     Exemptions                                                3

PART 3--FINANCIAL INSTITUTIONS DUTY ACT 1982                       4
  4.     New section 11A substituted                               4
         11A. Term deposit re-investment                           4
  5.     Non-bank financial institutions                           4
  6.     Statute law revision--exempt bank accounts                4
  7.     Returns of exempt bank accounts                           5

PART 4--LAND TAX ACT 1958                                          6
  8.     New section 3A inserted                                   6
         3A. Unimproved value of certain land                      6
  9.     Consequential amendments                                  6

PART 5--PAY-ROLL TAX ACT 1971                                      8
  10.    Repeal of spent provisions                                8
  11.    Grouping provisions                                       8
  12.    Exemption for schools                                     8
  13.    Registration and returns                                  9
  14.    Repeal of spent schedules                                 9

PART 6--STAMPS ACT 1958                                           10
  15.    Definitions                                              10
  16.    New Division 2A inserted in Part 2                       10
         Division 2A--Approval of special return arrangements     10
         42. Definition                                           10



                                      i
531211B.I1-8/10/97

 


 

Clause Page 43. Approval of special return arrangements 10 44. Application for approval 11 45. Conditions of approval 11 46. Gazettal or service of notices 12 47. Effect of approval 12 17. New subdivision (5B) of Division 3 of Part 2 inserted 13 (5B) Takeovers of Victorian public companies 13 62F. Definitions 13 62G. Statement on entitlement to voting shares 15 62H. Form of statement 15 62I. Assessment and payment of duty 16 62J. Offences relating to statements 17 18. Transfer of chattels with real property 17 19. Reduction in land value 17 20. New section 64B inserted 19 64B. Statement on change of beneficial ownership 19 21. New section 71 inserted 21 71. Exemption on transfer of single farming enterprise 21 22. Consequential amendments 28 23. Exemption for credit contracts 28 24. Exemption from duty for share buy-backs 29 25. Consequential repeal of family farm exemption in Third Schedule 29 26. Statute law revision 29 PART 7--TAXATION ADMINISTRATION ACT 1997 30 27. Assessment of penalty tax on prior tax defaults 30 28. Statute law revision 30 NOTES 31 ii 531211B.I1-8/10/97

 


 

PARLIAMENT OF VICTORIA A BILL to amend the Debits Tax Act 1990, the Financial Institutions Duty Act 1982, the Land Tax Act 1958, the Pay-roll Tax Act 1971, the Stamps Act 1958 and the Taxation Administration Act 1997 and for other purposes. State Taxation (Amendment) Act 1997 The Parliament of Victoria enacts as follows: PART 1--PRELIMINARY 1. Purpose The purpose of this Act is to make miscellaneous amendments to the Debits Tax Act 1990, the 5 Financial Institutions Duty Act 1982, the Land Tax Act 1958, the Pay-roll Tax Act 1971, the Stamps Act 1958 and the Taxation Administration Act 1997. 1 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 2 Act No. 2. Commencement (1) This Act (except sections 12, 17, 19, 26, 27 and 28(2)) comes into operation on the day on which it receives the Royal Assent. 5 (2) Section 12 is deemed to have come into operation on 27 May 1997. (3) Section 28(2) is deemed to have come into operation on 3 June 1997. (4) Section 26 is deemed to have come into operation 10 on 11 June 1997. (5) Section 27 is deemed to have come into operation on 1 July 1997. (6) Section 19 is deemed to have come into operation on 10 October 1997. 15 (7) Section 17 comes into operation on 1 January 1998. _______________ 2 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 3 Act No. No. 78/1990. PART 2--DEBITS TAX ACT 1990 Reprinted to No. 119/1994 3. Exemptions and subsequently In section 3(1) of the Debits Tax Act 1990 in the amended by Nos 10/1996 definition of "excluded debit" after paragraph and 40/1997. 5 (a)(x) insert-- "(xi) a public hospital; or (xii) a State school, TAFE college or university; or". _______________ 3 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 4 Act No. PART 3--FINANCIAL INSTITUTIONS DUTY ACT 1982 No. 9850. Reprint No. 3 4. New section 11A substituted as at 22 August 1997. For section 11A of the Financial Institutions Duty Act 1982 substitute-- 5 "11A. Term deposit re-investment For the purposes of this Act-- (a) if money is invested on term deposit with a financial institution (otherwise than in the course of short-term 10 dealings) and the principal is not repaid in full on the expiration of the term but is re-invested on a term deposit, the non-payment of the principal is not a dutiable receipt of the financial 15 institution; (b) if an amount received by a person in the course of short-term dealings is re- invested in whole or part with that person, the amount re-invested is 20 deemed to have been received by that person.". 5. Non-bank financial institutions In section 25(12) of the Financial Institutions Duty Act 1982-- 25 (a) for paragraph (e) substitute-- "(e) Credit Union Services Corporation (Australia) Limited;"; (b) paragraph (f) is repealed. 6. Statute law revision--exempt bank accounts 30 In section 31A of the Financial Institutions Duty Act 1982 for "exempt account is kept by a bank" substitute "exempt bank account is kept". 4 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 7 Act No. 7. Returns of exempt bank accounts After section 32(1A) of the Financial Institutions Duty Act 1982 insert-- "(1B) Penalty tax under Division 2 of Part 5 of the 5 Taxation Administration Act 1997 is not payable on a tax default consisting of a failure to pay an amount of additional duty required to be paid under sub-section (1A).". _______________ 5 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 8 Act No. PART 4--LAND TAX ACT 1958 No. 6289. Reprint No. 8 8. New section 3A inserted as at 1 February After section 3 of the Land Tax Act 1958 1997. Further amended by insert-- Nos 31/1997 and 40/1997. 5 '3A. Unimproved value of certain land If-- (a) it is necessary to ascertain an unimproved value of land ("the lot") for the purposes of assessing land tax 10 for or in a particular year; and (b) the lot was not valued separately as at the relevant date (within the meaning of section 3(2A)); and (c) the lot was part of an area of land ("the 15 whole") that was valued separately as at the relevant date-- then, for the purposes of assessing land tax for or in that year, the unimproved value of the lot is deemed to be the same proportion 20 of the unimproved value of the whole as the area of the lot bears to the area of the whole.'. 9. Consequential amendments (1) In section 10(4) of the Land Tax Act 1958 after 25 "sections 3," insert "3A,". (2) In the Second Schedule to the Land Tax Act 1958, in clause 1B(1)(a) for sub-paragraph (i) substitute-- "(i) in respect of any land that was valued 30 separately as at the relevant date (within the meaning of section 3) for the purpose of assessing land tax for 1993, the unimproved 6 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 9 Act No. value of that land determined for the purpose of assessing land tax for 1993; and". _______________ 7 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 10 Act No. PART 5--PAY-ROLL TAX ACT 1971 No. 8154. Reprint No. 6 10. Repeal of spent provisions as at 22 August 1997. In the Pay-roll Tax Act 1971-- (a) in section 3 sub-section (4) is repealed; 5 (b) in section 7(1)-- (i) paragraphs (a) and (b) are repealed; (ii) in paragraph (c) omit "and are not liable to pay-roll tax at the rate prescribed in paragraph (a) or (b)"; 10 (iii) in paragraph (d) omit "(a), (b) or"; (iv) in paragraph (e) omit "(a), (b),"; (v) in paragraph (f) omit "(a), (b),". 11. Grouping provisions In section 9A of the Pay-roll Tax Act 1971-- 15 (a) sub-section (3) is repealed; (b) in sub-section (8) for "sub-section (3) or sub- section (3A) is in force, sections 9, 9B, 11" substitute "sub-section (3A) is in force, sections 9B". 20 12. Exemption for schools After section 10(1)(d) of the Pay-roll Tax Act 1971 insert-- "(da) by a school or college (other than a technical school or technical college) that-- 25 (i) is carried on by a body corporate, society or association otherwise than for the purpose of profit or gain to the individual members of the body corporate, society or association and is 30 not carried on by or on behalf of the State of Victoria; and 8 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 13 Act No. (ii) provides education predominantly at or below the secondary level of education; and (iii) was in existence as such a school or 5 college before 27 May 1997-- being wages paid or payable to a person in relation to the provision of education at or below the secondary level of education; (db) by a person who provides an educational 10 service in connection with the curriculum of a school referred to in paragraph (d) or a school or college referred to in paragraph (da) otherwise than for the purpose of profit or gain to the person or the individual 15 members of the person, being wages paid or payable to a person in relation to the provision of that service;". 13. Registration and returns In the Pay-roll Tax Act 1971-- 20 (a) in section 12(4)-- (i) omit "sub-section (3) or" where twice occurring; (ii) omit ", sub-section (1) of section 9"; (b) in section 13(6)-- 25 (i) omit "sub-section (3) or"; (ii) omit ", sub-section (1) of section 9". 14. Repeal of spent schedules In the Pay-roll Tax Act 1971 Schedules Three and Four are repealed. 30 _______________ 9 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 15 Act No. PART 6--STAMPS ACT 1958 No. 6375. Reprint No. 14 15. Definitions as at 1 September In section 3 of the Stamps Act 1958 before the 1997. definition of "books" insert-- 5 ' "associate" has the same meaning as in section 9 of the Corporations Law;'. 16. New Division 2A inserted in Part 2 After Division 2 of Part II of the Stamps Act 1958 insert-- 10 'Division 2A--Approval of special return arrangements 42. Definition In this Division-- "return" means a return, statement, 15 certificate, application, report or other record that-- (a) is required or authorised under this Act to be lodged, furnished or given by a person with or to the 20 Comptroller; and (b) is liable to duty or records matters in respect of which there is or may be a liability to duty. 43. Approval of special return arrangements 25 (1) The Comptroller, by written notice, may give approval for a special arrangement for the lodging of returns and payment of duty under this Act to-- (a) a specified person or persons of a 30 specified class; or 10 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 16 Act No. (b) a specified agent on behalf of a specified person or persons of a specified class. (2) An approval, among other things-- 5 (a) may provide an exemption (or a partial exemption) for the person or persons from specified provisions of this Act to which it applies; (b) may authorise the lodging of returns 10 and payments of duty by electronic means. (3) An approval may be given on the initiative of the Comptroller or on application. (4) The Comptroller may vary or cancel an 15 approval by written notice. 44. Application for approval (1) An application for an approval under section 43 must be made to the Comptroller in a form approved by the Comptroller. 20 (2) The Comptroller may grant or refuse an application for an approval under section 43. 45. Conditions of approval (1) An approval under section 43 is subject to any conditions specified by the Comptroller 25 in the notice of approval or by subsequent written notice. (2) The conditions of an approval may include-- (a) conditions limiting the approval to matters of a specified class; 30 (b) conditions limiting the approval to transactions effected by instruments of a specified class; 11 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 16 Act No. (c) conditions requiring the lodging of returns at specified times and conditions as to the contents of the returns; 5 (d) conditions requiring payments of duty at specified times; (e) conditions as to the means by which returns are to be lodged or payments of duty are to be made; 10 (f) if the approval provides an exemption from a requirement for the stamping of instruments, conditions as to the endorsement of the instruments; (g) conditions requiring the person or agent 15 to whom the approval was given to keep specified records. 46. Gazettal or service of notices A written notice under section 43(1) or 45(1) may be given by-- 20 (a) publishing it in the Government Gazette; or (b) serving it on the person or agent to whom it relates. 47. Effect of approval 25 (1) If an approval is given under section 43 to a specified person or persons of a specified class, the conditions of the approval are binding on that person or the persons of that class and that person or a person of that class 30 is guilty of an offence if any of the conditions is contravened. Penalty: 100 penalty units in the case of a body corporate; 12 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 17 Act No. 20 penalty units in any other case. (2) If-- (a) an approval is given under this Division to a specified agent on behalf of a 5 specified person or persons of a specified class; and (b) the agent acts on behalf of that person or a person of that class in relation to a matter to which the approval applies-- 10 the conditions of the approval are binding on the agent and the person and the agent and the person are each guilty of an offence if any of the conditions is contravened in relation to that matter. 15 Penalty: 100 penalty units in the case of a body corporate; 20 penalty units in any other case. (3) However, if the provisions of this Act from which a person is exempted by an approval 20 under section 43 are complied with in relation to a matter, sub-sections (1) and (2) do not apply to the person or an agent of the person in relation to that matter.'. 17. New subdivision (5B) of Division 3 of Part 2 inserted 25 Before subdivision (6) of Division 3 of Part II of the Stamps Act 1958 insert-- '(5B) Takeovers of Victorian public companies 62F. Definitions (1) In this subdivision-- 30 "capital reduction" means-- (a) the redemption, surrender or cancellation of a share (including 13 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 17 Act No. cancellation as part of a buy-back of shares in accordance with Division 4B of Part 2.4 of the Corporations Law); or 5 (b) a reduction in the paid up value of a share; "company" means a Victorian registered company that is a public company within the meaning of section 9 of the 10 Corporations Law; "related persons" means persons who are related for the purposes of subdivision (7)1; "rights alteration", in relation to voting 15 shares, means a variation, an abrogation or an alteration of rights relating to the shares; "voting share" has the same meaning as in section 9 of the Corporations Law. 20 (2) For the purposes of this subdivision, if voting shares acquired by related persons severally do not, but taken in the aggregate would, confer an entitlement to which this subdivision applies, the voting shares 25 acquired by the related persons are deemed to be aggregated and to confer the entitlement on the related person who last acquired any of those voting shares. (3) If, by sub-section (2), an entitlement to 30 voting shares is deemed to exist as the aggregate of voting shares of related persons, the related persons are jointly and severally liable for payment of the duty chargeable on the statement required to be lodged under 35 this subdivision. 14 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 17 Act No. 62G. Statement on entitlement to voting shares (1) If-- (a) a person becomes entitled to at least 50% of the voting shares of a company 5 by means of capital reduction or rights alteration or both; or (b) a person who is entitled to at least 50% of the voting shares of a company becomes entitled to at least 10% more 10 of the voting shares over a period of not more than 12 months by means of capital reduction or rights alteration or both-- the person must lodge a statement with the 15 Comptroller in respect of the entitlement. (2) The statement must be lodged within 3 months after the entitlement arises. 62H. Form of statement The statement required to be lodged under 20 section 62G by a person is to be in a form approved by the Comptroller and is to contain the following information-- (a) the name and address of the person; and (b) the name of the company; and 25 (c) the date on which each relevant capital reduction or rights alteration occurred; and (d) if the person's entitlement arose-- (i) from capital reduction, the total of 30 the unencumbered value, immediately before each relevant 15 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 17 Act No. capital reduction, of the shares the subject of the capital reduction; or (ii) from rights alteration, the total of the unencumbered value, 5 immediately before each relevant rights alteration, of the shares the subject of the rights alteration; or (iii) from capital reduction and rights alteration, the aggregate of the 10 totals under sub-paragraphs (i) and (ii); and (e) the total consideration paid by the person in relation to all relevant capital reductions or rights alterations; and 15 (f) any other information required by the Comptroller. 62I. Assessment and payment of duty (1) A statement required to be lodged under section 62G by a person is chargeable with 20 duty-- (a) in the case of a company whose shares are quoted on the market operated by the Australian Stock Exchange Limited, at the rate of 30 cents for every $100, or 25 part, of the higher of-- (i) the total or aggregate obtained under section 62H(d); and (ii) the total obtained under section 62H(e); 30 (b) in the case of a company whose shares are not quoted on the market operated by the Australian Stock Exchange Limited, at the rate of 60 cents for every $100, or part, of the higher of-- 16 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 18 Act No. (i) the total or aggregate obtained under section 62H(d); and (ii) the total obtained under section 62H(e). 5 (2) The duty with which the statement is chargeable must be paid at the same time that the statement is lodged with the Comptroller. 62J. Offences relating to statements 10 A person must not-- (a) fail to lodge a statement under section 62G within the period specified in that section; or (b) lodge a statement that is false or 15 misleading in a material particular. Penalty: 50 penalty units.'. 18. Transfer of chattels with real property In the Stamps Act 1958-- (a) in section 63(3)(a)-- 20 (i) in sub-paragraph (i) after "transferee" (where secondly occurring) insert "or a person who is related to the transferee (within the meaning of section 75(3))"; (ii) in sub-paragraph (ii) after "transferee" 25 insert "or any other person"; (b) in section 63A(3)(a) after "to the transferee" insert "or another person in the circumstances referred to in section 63(3)(a)". 30 19. Reduction in land value After section 63(3) of the Stamps Act 1958 insert-- 17 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 19 Act No. "(3A) For the purposes of sub-section (3)(b), in determining the amount for which real property, property or chattels might reasonably have been sold free from 5 encumbrances, there must be disregarded subject to sub-section (3B), any interest, agreement or arrangement (other than an encumbrance) granted or made in respect of the real property, property or chattels, that 10 has the effect of reducing the value of the real property, property or chattels. (3B) An interest, agreement or arrangement referred to in sub-section (3A) is not to be disregarded if the Comptroller is satisfied 15 that it was not granted or made as a part of an arrangement or scheme with a collateral purpose of reducing the stamp duty otherwise payable on the conveyance of the real property, property or chattels. 20 (3C) In considering whether or not he or she is satisfied for the purposes of sub-section (3B), the Comptroller may have regard to-- (a) the duration of the interest, agreement or arrangement before the conveyance 25 of the real property, property or chattels; and (b) whether the interest, agreement or arrangement has been granted to or made with an associate, a related 30 corporation or a trustee of the transferor or transferee; and (c) whether there is any commercial efficacy to the granting of the interest or the making of the agreement or 35 arrangement other than to reduce stamp duty; and 18 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 20 Act No. (d) any other matters he or she considers relevant.". 20. New section 64B inserted After section 64A of the Stamps Act 1958 5 insert-- "64B. Statement on change of beneficial ownership (1) A person who is a party to a transaction entered into on or after 10 October 1997 10 that-- (a) causes or results in a change in the beneficial ownership of real property; and (b) is not effected or evidenced by an 15 instrument chargeable with ad valorem duty under Heading VI of the Third Schedule-- must, if the person would have been liable to pay such duty had such an instrument been 20 executed, lodge with the Comptroller a statement in respect of the transaction in a form approved by the Comptroller. (2) A person referred to in sub-section (1) must pay to the Comptroller as stamp duty on the 25 statement referred to in that sub-section a sum equal to the amount of stamp duty that would have been payable if an instrument for the conveyance of the real property to the person as beneficial owner had been 30 executed. (3) A statement must be lodged under sub- section (1) and duty paid under sub-section (2) within 3 months after the day on which the change in beneficial ownership took 35 place. 19 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 20 Act No. (4) An instrument executed for the purpose of effecting or evidencing a transaction referred to in sub-section (1) in respect of which a statement has been duly lodged is not 5 chargeable with stamp duty under this Act to the extent to which duty has been paid on the statement. (5) The payment of duty on a statement referred to in sub-section (1) is to be denoted on the 10 statement by an impressed stamp. (6) A person must not-- (a) fail to lodge a statement in accordance with this section; or (b) lodge a statement that, to the person's 15 knowledge, is false or misleading in a material particular. Penalty: 500 penalty units in the case of a body corporate; 100 penalty units in any other 20 case. (7) For the purposes of section 68, a statement under this section is to be taken to be an instrument of conveyance of the real property to which the statement relates. 25 (8) A reference in this section to a transaction that causes or results in a change in the beneficial ownership of real property includes a reference to the enlargement of a term into a fee-simple under section 153 of 30 the Property Law Act 1958. (9) This section does not apply to a change in beneficial ownership of real property that is caused by or results from-- 20 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. (a) a body corporate becoming an externally-administered body corporate (within the meaning of the Corporations Law); or 5 (b) the conveyance of any estate or interest in real property as a security, including the charging of real property; or (c) the vesting of real property in an executor or administrator of a deceased 10 person; or (d) the issue, transfer, redemption or cancellation of units in a unit trust scheme; or (e) any of the circumstances referred to in 15 section 64A.". 21. New section 71 inserted After section 70 of the Stamps Act 1958 insert-- '71. Exemption on transfer of single farming enterprise 20 (1) This section applies to an instrument of conveyance of real property that is a single farming enterprise if-- (a) the transferor of the property is a natural person or a trustee for a natural 25 person; and (b) the transferee of the property is-- (i) a relative of the natural person referred to in paragraph (a); or (ii) a trustee under a fixed trust, the 30 beneficiaries of which are limited to-- 21 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. (A) a present or future relative of the natural person referred to in paragraph (a); or (B) a charitable institution; or 5 (C) a present or future relative of the natural person referred to in paragraph (a) and a charitable institution; or (D) a present or future relative of 10 the natural person referred to in paragraph (a) and the natural person referred to in paragraph (a); or (E) a charitable institution and 15 the natural person referred to in paragraph (a); or (F) a present or future relative of the natural person referred to in paragraph (a), the natural 20 person referred to in paragraph (a) and a charitable institution; or (iii) a trustee under a discretionary trust-- 25 (A) the terms of which do not allow distribution of the whole or any part of the capital of the trust to any person or body other than a 30 person or body referred to in sub-paragraph (ii); and (B) under which the natural person referred to in paragraph (a), or a trustee for 35 that person, does not have a 22 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. power of appointment of trustees or beneficiaries. (2) The transferee under an instrument to which this section applies may apply to the 5 Comptroller in the form approved by the Comptroller containing the particulars required by the Comptroller for an exemption from the stamp duty otherwise payable on the instrument under Heading VI 10 of the Third Schedule. (3) A person must not, in connection with an application under sub-section (2), make a statement that the person knows is false or misleading in a material particular. 15 Penalty: 100 penalty units. (4) On an application under sub-section (2), the Comptroller must exempt the instrument from duty if the Comptroller is satisfied that-- 20 (a) the instrument is an instrument to which this section applies; and (b) the conveyance does not arise from arrangements or a scheme devised for the principal purpose of taking 25 advantage of the benefit of this section. (5) If real property to which an instrument that has been exempted from duty under sub- section (4) relates ceases to be a single farming enterprise before the end of the 30 period of 5 years after the day on which the instrument was lodged for registration with the Registrar-General or the Registrar of Titles (as the case may be), the instrument is chargeable with stamp duty in accordance 35 with Heading VI of the Third Schedule as if 23 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. it had been executed on the day on which the property ceased to be a single farming enterprise. (6) If the Comptroller exempts an instrument 5 from duty under sub-section (4)-- (a) the Comptroller may deliver to the Registrar-General or Registrar of Titles a notice stating-- (i) that stamp duty may become 10 payable in respect of the instrument in the circumstances set out in sub-section (5); and (ii) that if stamp duty becomes payable, the duty is a charge on 15 the property as set out in sub- section (7); and (b) the Registrar-General or Registrar of Titles must, without charge, register the notice accordingly. 20 (7) The stamp duty imposed by sub-section (5) on an instrument of conveyance of real property is, by force of this section, a charge on the real property that, subject to sub- section (8), has priority over any interest in 25 the real property, whether registered or not, created or acquired after registration of the notice referred to in sub-section (6). (8) A charge over real property under sub- section (7) does not have priority over an 30 interest acquired in the property by a purchaser for value after the issue of a certificate under sub-section (14) to the purchaser stating that the property had not ceased to be a single farming enterprise, 24 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. unless the purchaser had knowledge of the charge. (9) The charge created by sub-section (7) expires-- 5 (a) when the required duty is paid; or (b) on the day that is the 8th anniversary of the day on which the instrument of conveyance in respect of which the duty is payable was lodged with the 10 Registrar-General or Registrar of Titles-- whichever is earlier. (10) If a notice has been registered under sub- section (6)(b), a person may apply to the 15 Comptroller after the end of the period of 5 years referred to in sub-section (5) for cancellation of that registration. (11) If the Comptroller, on an application under sub-section (10), is satisfied that the property 20 to which the application relates had not ceased to be a single farming enterprise before the end of the period of 5 years referred to in sub-section (5)-- (a) the Comptroller must give notice to that 25 effect to the Registrar-General or Registrar of Titles; and (b) the Registrar-General or Registrar of Titles must cancel the registration of the notice. 30 (12) If a charge created by sub-section (7) expires and a notice had been registered under sub- section (6)(b) in respect of the property to which the charge related-- 25 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. (a) the Comptroller must give notice of the expiry of the charge to the Registrar- General or Registrar of Titles; and (b) the Registrar-General or Registrar of 5 Titles must cancel the registration of the notice. (13) If a notice has been registered under sub- section (6)(b), a person proposing to acquire an interest in the property to which it relates 10 may apply to the owner of the property for a certificate stating whether or not the property has ceased to be a single farming enterprise since the instrument to which the notice relates was exempted from duty under sub- 15 section (4). (14) The owner of real property must issue a certificate to an applicant under sub-section (13) within 28 days after receiving the application, stating whether or not the 20 property has ceased to be a single farming enterprise since the instrument to which the registered notice relates was exempted from duty under sub-section (4). (15) A person must not-- 25 (a) fail to issue a certificate in accordance with sub-section (14); or (b) issue a certificate that the person knows is false or misleading in a material particular. 30 Penalty: 100 penalty units. (16) In this section-- "business of primary production" means the business of-- 26 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 21 Act No. (a) cultivating land for the purpose of selling the produce of such cultivation; or (b) maintaining animals or poultry for 5 the purpose of selling them or their natural increase or bodily produce; or (c) keeping bees for the purpose of selling their honey; or 10 (d) commercial fishing, including preparing for commercial fishing or storing or preserving fish or fishing gear; or (e) cultivating or propagating for sale 15 plants, seedlings, mushrooms or orchids; "charitable institution" means a corporation or body of persons associated for charitable purposes; 20 "discretionary trust" means a trust under which the vesting of the whole or any part of the trust property-- (a) is required to be determined by a person either in respect of the 25 identity of the beneficiaries or the quantum of interest to be taken or both; or (b) will occur in the event that a discretion conferred under the 30 trust is not exercised; "fixed trust" means a trust under which the identity of the beneficiaries and the quantum of their interests are ascertained; 27 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 22 Act No. "relative", in relation to a natural person, in addition to its meaning in section 63, includes-- (a) a child of a brother or sister of the 5 person; and (b) a child of a brother or sister of the person's spouse; "single farming enterprise" means real property or property that is used 10 primarily for the business of primary production as a single entity.'. 22. Consequential amendments In the Stamps Act 1958-- (a) in section 131AD sub-section (2) is 15 repealed; (b) in section 137AB sub-section (4) is repealed. 23. Exemption for credit contracts After section 137F(2B) insert-- 20 '(2C) Sub-section (2A) does not apply to a security given on or after 1 November 1997 in so far as it secures the payment or repayment of an amount that was provided for the purposes of-- 25 (a) the acquisition of a private dwelling house or land on which to erect a private dwelling house; or (b) the erection of a private dwelling house or the addition of accommodation to a 30 private dwelling house. (2D) For the purposes of sub-section (2C), "private dwelling house" means-- 28 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 24 Act No. (a) a building that is designed, or is designed principally, as a separate residence for one family or person; or (b) an apartment, flat or other part of a 5 building that is so designed.'. 24. Exemption from duty for share buy-backs In the exemptions applying to (A) of Heading IV of the Third Schedule to the Stamps Act 1958, in clause (20) after "Corporations Law" insert ", not 10 being a transfer as part of a capital reduction (within the meaning of section 62F) to which subdivision (5B) of Division 3 of Part II applies". 25. Consequential repeal of family farm exemption in Third Schedule 15 Clause (28) of the exemptions applying to (A) and (B) of Heading VI of the Third Schedule to the Stamps Act 1958 is repealed. 26. Statute law revision In section 137MC(8) of the Stamps Act 1958 for 20 "and this section" substitute "and section 137MC". _______________ 29 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 s. 27 Act No. PART 7--TAXATION ADMINISTRATION ACT 1997 No. 40/1997. 27. Assessment of penalty tax on prior tax defaults In Schedule 1 to the Taxation Administration Act 1997 after clause 7(2) insert-- 5 '(3) If a tax default or other default occurred or commenced under a taxation law before the commencement of Division 2 of Part 5, the Commissioner may make an assessment under this Act, on or after that commencement, of any additional 10 tax that would have been payable or assessable under that taxation law in relation to the default if Schedule 2 had not been enacted, and this Act will apply as if the additional tax were penalty tax under this Act. (4) In this clause-- 15 "additional tax" means additional, penal or penalty tax or duty, or any tax or duty payable by way of a fine or penalty, under a taxation law as in force immediately before the commencement of Schedule 2.'. 20 28. Statute law revision (1) In section 87(2) of the Taxation Administration Act 1997 for "record" substitute "thing". (2) In Schedule 2 to the Taxation Administration Act 1997 for item 15.2 substitute-- 25 '15.2 In section 3(1), in the definition of "State Taxation Act", after paragraph (h) insert-- "(i) Taxation Administration Act 1997.".'. 30 531211B.I1-8/10/97

 


 

State Taxation (Amendment) Act 1997 Notes Act No. NOTES 1 Section 75(3) specified which persons are related for the purposes of subdivision (7). By Authority. Government Printer for the State of Victoria. 31 531211B.I1-8/10/97

 


 

 


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