State Taxation Acts Further Amendment Act 2011

State Taxation Acts Further Amendment Act 2011

No. 69 of 2011

table of provisions

SectionPage

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Payroll Tax Act 2007

3Non-profit organisations

4Maternity and adoption leave

Part 3—Duties Act 2000

Division 1—Reduction in time available for payment of duty

Subdivision 1—Transactions concerning dutiable property

5Necessity for written instrument or written statement

6Lodging instrument or statement with Commissioner

7When must duty be paid—transactions concerning dutiable property

8Interdependent sale of land and business goods

9Liability for duty if residence requirement not complied with

10Liability for duty if primary production requirement not
complied with

11Anti-avoidance provision—transactions concerning dutiable property

Subdivision 2—Certain transactions treated as transfers

12Acquisition statements

13When must duty be paid—land rich duty

14Re-purchase facilities—widely held trusts

15Disqualifying circumstances for certain unit trust schemes

16Sale of private unit trust scheme through conversion to public unit trust scheme

17Anti-avoidance provision—land rich duty

18When must duty be paid—capital reductions or rights
alterations

19When must duty be paid—allotment of shares by direction

20Acquisition of shares by allotment

21When must duty be paid—acquisition of land use entitlements
by allotment of shares or issue of units

22Acquisition of land use entitlement

Subdivision 3—Financial sector (transfers of business)

23Statement of transfer of property

Subdivision 4—Corporate reconstructions

24Interest

Division 2—Miscellaneous amendments

25Change in trustees

26Eligible pensioner exemption or concession where dwelling exists at the time of transfer

Part 4—Land Tax Act 2005

Division 1—Time-sharing schemes

27Definitions

28New section 18A inserted

18AManagers of title-based time-sharing schemes

29New section 46AA inserted

46AATitle-based time-sharing schemes

Division 2—Primary production land

30Definitions

31Definitions—primary production land

32Exemption of primary production land in an urban zone in Greater Melbourne

33Parcels of land

Division 3—Valuations

34Definitions

35Taxable value of land

36Use of valuations

Part 5—Taxation Administration Act 1997

37Definitions

38Meaning of taxation laws

39Objection

40Grounds for objection

41Referral to Tribunal

Part 6—Livestock Disease Control Act 1994

42Cattle Compensation Fund

43Sheep and Goat Compensation Fund

44Swine Compensation Fund

45Amendment of heading to Part 6

46New section 107D inserted

107DDisclosure of information to Commissioner of State Revenue in relation to the administration of duty

47Statute law revision

Part 7—Valuation of Land Act 1960

48Definitions

49Functions of valuer-general

50Use of valuation by another rating authority other than a
council

51Council to provide valuation to valuer-general

52Fees for copy of valuation

53New section 11 substituted

11General valuation to be made every two years

54Council valuations

55Valuation authority to make supplementary valuation on
behalf of council

56Section 13DI repealed

57Notice of valuation

58Who may object?

59Time for lodging objection

60Determination of objection

Part 8—Repeal

61Repeal of amending Act

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EndnoteS

SectionPage

Victoria

SectionPage

State Taxation Acts Further Amendment Act 2011[†]

No. 69 of 2011

[Assented to 29 November 2011]

State Taxation Acts Further Amendment Act 2011
No. 69 of 2011

571107B.I-25/10/2011BILL LA INTRODUCTION 25/10/2011

State Taxation Acts Further Amendment Act 2011
No. 69 of 2011

The Parliament of Victoriaenacts:

571107B.I-25/10/2011BILL LA INTRODUCTION 25/10/2011

Part 8—Repeal

State Taxation Acts Further Amendment Act 2011
No. 69 of 2011

Part 1—Preliminary

1Purposes

The purposes of this Act are—

(a)to amend the Payroll Tax Act 2007in relation to the exemptions for non-profit organisations and for maternity leave or adoption leave; and

(b)to amend the Duties Act 2000—

(i) to reduce the period of time available for the payment of duty after the liability arises from 3months to 30days; and

(ii)to rectify an anomaly in the application of the exemption and concessions available to eligible pensioners purchasing off the plan properties and to remove an outdated reference to the Income Tax Assessment Act 1936 of the Commonwealth; and

s. 1

(c)to amend the Land Tax Act 2005—

(i) in relation to time-sharing schemes where the time-sharers are registered proprietors so that the manager of the scheme is assessed for land tax and the time-sharers owe a debt for their share of the tax; and

(ii)in relation to the primary production land exemption, to change the ownership requirements to increase consistency and improve the operation of the exemption; and

(iii)to make miscellaneous amendments in relation to the use of valuations for the assessment of land tax; and

(d)to amend the Taxation Administration Act 1997—

(i) to empower the Commissioner of State Revenue to impose interest and penalty tax in relation to livestock duty and to apply the administration and enforcement provisions to the collection of livestock duty; and

(ii)to clarify the objection processes in relation to the valuation of land under that Act; and

(e)to amend the Livestock Disease Control Act 1994—

(i) to allow the Secretary to disclose certain information in relation to the administration of livestock duty to the Commissioner of State Revenue; and

(ii)to ensure any interest and penalty tax collected by the Commissioner of State Revenue in relation to livestock duty is paid into the appropriate compensation funds; and

(f)tomake miscellaneous amendments to the Valuation of Land 1960to improve the operation of that Act.

2Commencement

s. 2

(1)This Act (other than Part 2 and Division 1 of Part3) comes into operation on the day after the day on which it receives the Royal Assent.

(2)Part 2 comes into operation on 1July 2012.

(3)Division 1 of Part 3 comes into operation on 1April2012.

______

Part 2—Payroll Tax Act 2007

3Non-profit organisations

See:
Act No.
26/2007.
Reprint No. 1
as at
20 May 2010
and amending
Act Nos
36/2010, 28/2011 and 29/2011.
LawToday:
www.
legislation.
vic.gov.au

s. 3

(1)For section 48(1) and (2) of the Payroll Tax Act 2007 substitute—

"(1) Wages are exempt wages if the Commissioner is satisfied that the wages are paid or payable—

(a)by any of the following—

(i) a religious institution; or

(ii)a public benevolent institution (but not including an instrumentality of the State); or

(iii)a non-profit organisation having as its whole or dominant purpose a charitable, benevolent, philanthropic or patriotic purpose (but not including a school, an educational institution, an educational company or an instrumentality of the State); and

(b)to a person engaged exclusively in work of a religious, charitable, benevolent, philanthropic or patriotic nature for the institution or non-profit organisation.".

(2)In section 48(3) of the Payroll Tax Act 2007 for "subsection (1)(c)" substitute "subsection (1)(a)(iii)".

4Maternity and adoption leave

s. 4

For section 53(4) of the Payroll Tax Act 2007 substitute—

"(4)In subsection (3)—

(a)a reference to 14 weeks maternity leave or 14 weeks adoption leave includes a reference to an equivalent period of leave at a reduced rate of pay; and

(b)a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave.

Example

For a part-time employee, the exemption may apply to wages paid or payable for maternity leave or adoption leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.".

______

Part 3—Duties Act 2000

Division 1—Reduction in time available for payment of duty

Subdivision 1—Transactions concerning dutiable property

5Necessity for written instrument or written statement

s. 5

(1)In section 14(2) of the Duties Act 2000, for "3months" substitute "30days".

(2)In section 14(3) of the Duties Act 2000, for "3months" (where twice occurring) substitute "30days".

6Lodging instrument or statement with Commissioner

In section 15(1) of the Duties Act 2000, for "3months" substitute "30days".

7When must duty be paid—transactions concerning dutiable property

In section 16 of the Duties Act 2000, for "3months" substitute "30 days".

8Interdependent sale of land and business goods

In section 22B(4) of the Duties Act 2000, for "3months" substitute "30days".

9Liability for duty if residence requirement not complied with

In the note at the foot of section 57M(2) of the Duties Act 2000, for "3months" substitute "30days".

10Liability for duty if primary production requirement not complied with

In the note at the foot of section 69AH(2) of the Duties Act 2000, for "3months" substitute "30days".

11Anti-avoidance provision—transactions concerning dutiable property

s. 11

In section 69C(2) of the Duties Act 2000, for "3months" substitute "30days".

Subdivision 2—Certain transactions treated as transfers

12Acquisition statements

In section 80(1) of the Duties Act 2000, for "3months" substitute "30days".

13When must duty be paid—land rich duty

In section 81 of the Duties Act 2000, for "3months" substitute "30days".

14Re-purchase facilities—widely held trusts

In section 89A(3)(c) of the Duties Act 2000, for "3months" substitute "30days".

15Disqualifying circumstances for certain unit trust schemes

In section 89B(2)(e) of the Duties Act 2000, for "3months" substitute "30days".

16Sale of private unit trust scheme through conversion to public unit trust scheme

In section 89C(2)(d) of the Duties Act 2000, for "3months" substitute "30days".

17Anti-avoidance provision—land rich duty

In section 89I(4) of the Duties Act 2000, for "3months" substitute "30days".

18When must duty be paid—capital reductions or rights alterations

In section 92 of the Duties Act 2000, for "3months" substitute "30days".

19When must duty be paid—allotment of shares by direction

s. 19

In section 99 of the Duties Act 2000, for "3months" substitute "30days".

20Acquisition of shares by allotment

In section 101(2) of the Duties Act 2000, for "3months" substitute "30days".

21When must duty be paid—acquisition of land use entitlements by allotment of shares or issue of units

In section 103B of the Duties Act 2000, for "3months" substitute "30days".

22Acquisition of land use entitlement

In section 103D(2) of the Duties Act 2000, for "3months" substitute "30days".

Subdivision 3—Financial sector (transfers of business)

23Statement of transfer of property

In section 107(3) of the Duties Act 2000, for "3months" substitute "30days".

Subdivision 4—Corporate reconstructions

24Interest

In section 250L(3) of the Duties Act 2000, in the definition of relevant day, for "3months" substitute "30days".

Division 2—Miscellaneous amendments

25Change in trustees

See:
Act No.
79/2000.
Reprint No. 8
as at
1 August 2011 and amending
Act No. 67/2010.
LawToday:
www.
legislation.
vic.gov.au

s. 25

In section 33(1) of the Duties Act 2000, in paragraph (c) of the definition of special trustee, omit "within the meaning of section 267 of the Income Tax Assessment Act 1936 of the Commonwealth".

26Eligible pensioner exemption or concession where dwelling exists at the time of transfer

(1)After section 59(1)(a) of the Duties Act 2000 insert—

"(ab) the dwelling was constructed before the time the contract of sale was entered into; and".

(2)After section 59(2)(a) of the Duties Act 2000 insert—

"(ab) the dwelling was constructed before the time the contract of sale was entered into; and".

(3)In section 59(3) of the Duties Act 2000, for "The concession" substitute "If subsection(2) applies, the concession".

(4)After section 59(3) of the Duties Act 2000insert—

"(4)An eligible pensioner is entitled to an exemption from duty under this Chapter in respect of a transfer to the eligible pensioner of dutiable property being an estate in fee simple in land if—

(a)at the time of the transfer there is a dwelling on the land; and

(b)the dwelling was constructed after the time the contract of sale was entered into; and

s. 26

(c)the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling does not exceed $330000.

(5)An eligible pensioner is entitled to a concession from duty under this Chapter in respect of a transfer of dutiable property being an estate in fee simple in land if—

(a)at the time of the transfer there is a dwelling on the land; and

(b)the dwelling was constructed after the time the contract of sale was entered into; and

(c)the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $330000 but does not exceed $750000.

(6)If subsection (5) applies, the concession is an amount calculated in accordance with the formula—

(a)where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $330000 but does not exceed $440000—

where—

"D" is the amount of duty paid or payable (but for this Division) on the transfer;

s. 26

"P" is the aggregate amount referred to in subsection (5); or

(b)where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $440000 but does not exceed $550000—

where—

"D" is the amount of duty paid or payable (but for this Division) on the transfer;

"P" is the aggregate amount referred to in subsection (5); or

(c) where the aggregate of the dutiable value of the dutiable property and the cost of construction of the dwelling exceeds $550000 but does not exceed $750000—

where—

"D" is the amount of duty paid or payable (but for this Division) on the transfer;

"P" is the aggregate amount referred to in subsection (5).".

______

Part 4—Land Tax Act 2005

Division 1—Time-sharing schemes

27Definitions

See:
Act No.
88/2005.
Reprint No. 4
as at
13 October 2011
and amending
Act Nos
49/2010 and 35/2011.
LawToday:
www.
legislation.
vic.gov.au

s. 27

In section 3(1) of the Land Tax Act 2005insert the following definition—

"title-based time-sharing scheme means a scheme under which participants are—

(a)entitled to use, occupy and possess land to which the scheme relates for 2 or more periods during the scheme's operation; and

(b)the registered proprietors of a share interest in respect of which a folio is created under section 98D of theTransfer of Land Act 1958;".

28New section 18A inserted

After section 18 of the Land Tax Act 2005 insert—

"18A Managers of title-based time-sharing schemes

For the purposes of this Act, a person who manages a title-based time-sharing scheme is deemed to be the owner of the land to which that scheme relates instead of the participants under that scheme.".

29New section 46AA inserted

After section 46 of the Land Tax Act 2005 insert—

"46AA Title-based time-sharing schemes

(1)The owner of land to which a title-based time-sharing scheme relates is to be assessed on the total value of all taxable land to which the scheme relates as if the land were the only land owned by that person.

s. 30

(2)A participant in a title-based time-sharing scheme incurs a debt in an amount equivalent to the proportion of the participant's interest in the land to the person who—

(a)is the owner of the land to which the title-based time-sharing scheme relates; and

(b) has been assessed for land tax under subsection (1).".

Division 2—Primary production land

30Definitions

In section 3(1) of the Land Tax Act 2005, in the definition of beneficiary, after "means" insert "(except in Division 2 of Part 4)".

31Definitions—primary production land

(1) In section 64(1) of the Land Tax Act 2005, insert the following definitions—

"discretionary trust means a trust under which the distribution or vesting of the whole or any part of the trust income or property—

(a)is required to be determined by a person either in respect of the 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 trust is not exercised;

specified beneficiary of a discretionary trust means a person specifically named in the trust deed or specifically declared in writing pursuant to the trust deed as a beneficiary whom, by the terms of the trust, the whole or any part of the trust income or property may be distributed to or vested in—

(a)in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or

(b)in the event that a discretion conferred under the trust is not exercised;".

(2) In section 64(1) of the Land Tax Act 2005, in the definition of urban zone, after "means a zone" insert ", or part of a zone,".

32Exemption of primary production land in an urban zone in Greater Melbourne

s. 32

(1) In section 67(2) of the Land Tax Act 2005—

(a)in paragraph (b), after "proprietary company" insert "(not acting in the capacity of trustee of a trust)";

(b)in paragraph (c)—

(i) after "trustee of a trust" insert"(other than a discretionary trust)";

(ii) in subparagraph (i), for "sole" substitute "principal";

(iii) in subparagraph (iii), for "land." substitute "land; or";

(c)after paragraph (c) insert—

"(d)a trustee of a discretionary trust of which—

(i) the principal business must be primary production of the type carried on on the land; and

(ii)either—

(A)each specified beneficiary is a natural person; or

(B)at least one of the specified beneficiaries is a natural person and each of the specified beneficiaries who is not a natural person is either—

s. 32

(a)a charitable institution or a trustee of a charitable trust; or

(b)a company all of the shares in which are owned by one or more of the specified beneficiaries who are natural persons; or

(c)a trustee of a trust (except a charitable trust), all of the beneficiaries or specified beneficiaries of which are specified beneficiaries of the discretionary trust who are natural persons; and

(iii)either—

(A)at least one of the specified beneficiaries is a natural person who is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land; or

(B)a relative of at least one of the specified beneficiaries is normally engaged in a substantially full-time capacity in the business of primary production of the type carried on on the land.".

(2) In section 67(4)(a) of the Land Tax Act 2005, after "primary production" insert "of the type carried on".

33Parcels of land

s. 33

For section 70(b) of the Land Tax Act 2005substitute—

"(b)the owner of the parcel of land is the owner of the land within the meaning of section67(2).".

Division 3—Valuations

34Definitions

(1)In section 3(1) of the Land Tax Act 2005insert the following definition—

"valuation authority has the same meaning as in section 2(1) of the Valuation of Land Act 1960;".

(2)In section 3(1) of the Land Tax Act 2005, in the definition of return date, omit "(within the meaning of that Act)".

35Taxable value of land

In section 19(2)(a) of the Land Tax Act 2005, for "municipal council" substitute "valuation authority".

36Use of valuations

s. 36

In section 21(1) of the Land Tax Act 2005—

(a)in paragraph (a), for "rating" substitute "valuation";

(b)in paragraph (b), after "valuations made" insert "for and on behalf of the Commissioner".

______

Part 5—Taxation Administration Act 1997

37Definitions

See:
Act No.
40/1997.
Reprint No. 5
as at
13 October 2011.
LawToday:
www.
legislation.
vic.gov.au

s. 37

(1)In section 3(1) of the Taxation Administration Act 1997, in paragraph (f) of the definition of trustee, for "capacity." substitute "capacity;".

(2)In section 3(1) of the Taxation Administration Act 1997 insert the following definition—

"valuation authority has the same meaning as in section 2(1) of the Valuation of Land Act 1960.".

38Meaning of taxation laws

At the end of section 4 of the Taxation Administration Act 1997 insert—

"(2)Part 6 of the Livestock Disease Control Act 1994and any regulations made under that Act for the purposes of that Part is a taxation law for the purposes of this Actin respect of the application of Chapter 10 of the Duties Act 2000 and any regulations made under that Act for the purposes of that Chapter.".

39Objection

In section 96(1)(ca) of the Taxation Administration Act 1997, after "a valuation" insert "made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005".

40Grounds for objection

For section 97(3) of the Taxation Administration Act 1997substitute—

"(3)A taxpayer cannot object to an assessment of land tax on any ground relating to the value of the land if—

(a)the assessment is based on a valuation made by a valuation authority under the Valuation of Land Act 1960; and

(b)that valuation was not made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005.".

41Referral to Tribunal

s. 41

In section 111(3) of the Taxation Administration Act 1997, for "a valuation by the Valuer-General used by the Commissioner" substitute "avaluation made for or on behalf of the Commissioner under section 21(1)(b) of the Land Tax Act 2005 used by the Commissioner".

______

Part 6—Livestock Disease Control Act 1994

42Cattle Compensation Fund

s. 42

After section 71(2)(a) of the Livestock Disease Control Act 1994 insert—

"(ab) all money received by or for the Commissioner of State Revenue as interest or penalty tax in respect of the whole or part of duty on statements and approved agents' returns relating to the sale of cattle or calves or the carcases of cattle under the Duties Act 2000;".