State Taxation Acts Amendment Act 2017

Authorised by the Chief Parliamentary Counsel Authorised Version i State Taxation Acts Amendment Act 2017 No. 28 of 2017 TABLE OF PROVISIONS Section Page Part 1—Preliminary 1 1 Purposes 1 2 Commencement 4 Part 2—Amendment of Duties Act 2000 5 Division 1—Off-the-plan purchases, principal places of residence and first home buyers 5 3 Definitions 5 4 What is the consideration for the transfer of dutiable property? 5 5 Application of Division 5 6 Provisions for determining consideration 6 7 Heading to Division 4A of Part 5 of Chapter 2 substituted 7 8 Definitions 7 9 What is a PPR transfer? 7 10 Rates of duty for certain PPR transfers 8 11 Section 57JA substituted and new section 57JB inserted 9 12 Residence requirement 10 13 Variation of residence requirement 11 14 Liability for duty if residence requirement not complied with 12 15 Transferee to notify Commissioner of change in circumstances 12 16 Heading to Division 5 of Part 5 of Chapter 2 substituted 13 17 Election to receive eligible pensioner exemption/concession 13 Division 2—Provision of information 13 18 What is the consideration for the transfer of dutiable property? 13 19 Records to be kept 14 20 Joint and several liability for additional duty 14 21 Provisions for determining consideration 14 22 Parties required to provide information to Commissioner 15 Division 3—Sub-sale transactions 15 23 Definitions 15 24 How duty is charged on transfer 16 25 Dutiable value of transactions 17 26 Exemptions and concessions 18 27 How duty is charged on transfer 18 -- 1 of 85 -- Section Page ii Authorised by the Chief Parliamentary Counsel 28 Dutiable value of transactions 19 29 Exemptions and concessions 20 30 New Division 3A of Part 4A of Chapter 2 inserted 20 31 Heading to Division 4 of Part 4A of Chapter 2 amended 28 32 Application of Division 28 33 How duty is charged on transfer 29 34 Dutiable value of transactions 30 35 Who is liable to pay the duty? 31 36 Exemptions and concessions 31 37 Provisions for determining consideration 31 Division 4—Offences 31 38 Aggregation of certain dutiable transactions 31 39 Misleading information—Tax avoidance schemes 32 40 Misleading information—Acquisition of interests in certain landholders 32 Division 5—Marriage and domestic relationships exemption 33 41 Section 43 substituted and new sections 43A to 43D inserted 33 Division 6—Financial exchanges 37 42 Definitions 37 43 Meaning of landholder 37 44 New clause 40 of Schedule 2 inserted—transitional provision relating to financial exchanges 38 Division 7—General insurance 38 45 What insurance is exempt from duty? 38 Division 8—Motor vehicle duty 39 46 What is the rate of duty? 39 Division 9—Transitional arrangements 40 47 New clauses 41 and 42 inserted in Schedule 2 40 Part 3—Amendment of First Home Owner Grant Act 2000 41 48 Criterion 5—Residence requirement 41 49 Amount of grant 41 Part 4—Amendment of Land Tax Act 2005 44 50 Definitions 44 51 General imposition of land tax 44 52 Taxable value of land 45 53 New Division 6 of Part 2 inserted 45 54 What is the rate of land tax? 49 55 Certain taxable land assessed separately 50 56 New section 37A inserted 50 -- 2 of 85 -- Section Page iii Authorised by the Chief Parliamentary Counsel 57 Assessment of joint owners of land 50 58 New section 38A inserted 51 59 Assessment of owner of land on which there are home units 51 60 Land tax on parts of land 51 61 Grouping of related corporations 51 62 Absence from principal place of residence 52 63 Retirement villages 52 64 Exemption of land under construction for certain exempt uses 52 65 New Division 9 of Part 4 inserted 53 66 New Schedule 2A inserted 55 67 New clause 16 inserted in Schedule 3 56 Part 5—Amendment of Payroll Tax Act 2007 57 68 Definitions 57 69 New definition inserted 57 70 New section 12A inserted 58 71 Definitions for the purposes of Schedule 1 59 72 Definitions for the purposes of Part 3 of Schedule 1 60 73 New clause 7A of Schedule 1 inserted 61 74 Clause 9 of Schedule 1 substituted and new clauses 9A and 9B of Schedule 1 inserted 61 75 Calculation of monthly payroll tax 64 76 Rate of payroll tax 64 77 Clause 8 of Schedule 2 substituted and new clauses 8A and 8B of Schedule 2 inserted 64 78 Consequential amendments to variable R in formulas set out in clauses 4 and 12 of Schedule 2 69 Part 6—Amendment of Planning and Environment Act 1987 70 79 CPI adjusted amount 70 Part 7—Amendment of Taxation Administration Act 1997 71 Division 1—Meaning of taxation laws 71 80 Meaning of taxation laws 71 Division 2—Record keeping and general offences 71 81 Instruments and returns to include all relevant information 71 82 Inclusion of false or misleading information in records 72 83 Giving false or misleading information to tax officers 72 84 Deliberately omitting information 73 85 Criminal liability of officers of bodies corporate—accessorial liability 73 86 Criminal liability of officers of bodies corporate—failure to exercise due diligence 73 -- 3 of 85 -- Section Page iv Authorised by the Chief Parliamentary Counsel Division 3—Reportable information 73 87 Definitions—reportable information 73 88 New Division 2B of Part 9 inserted 74 Division 4—Data matching amendments 75 89 Permitted disclosures to particular persons or for particular purposes 75 Division 5—Consequential amendments on imposition of vacant residential land tax 76 90 Definitions 76 91 Amount of penalty tax 76 92 Supreme Court—limitation of jurisdiction 76 Part 8—Amendment of Unclaimed Money Act 2008 77 93 Giving false or misleading information to an authorised person 77 94 Criminal liability of officers of bodies corporate—accessorial liability 77 95 Criminal liability of officers of bodies corporate—failure to exercise due diligence 78 96 Registrar may pay owner 78 97 New section 33A inserted 78 Part 9—Repeal of amending Act 80 98 Repeal of amending Act 80 ═════════════ Endnotes 81 1 General information 81 -- 4 of 85 -- Authorised by the Chief Parliamentary Counsel Authorised Version 1 State Taxation Acts Amendment Act 2017 † No. 28 of 2017 [Assented to 27 June 2017] The Parliament of Victoria enacts: Part 1—Preliminary 1 Purposes The main purposes of this Act are— (a) to amend the Duties Act 2000— (i) in relation to off-the-plan purchases, first home buyer exemptions and concessions, and principal place of residence concessions; and Victoria -- 5 of 85 -- Part 1—Preliminary State Taxation Acts Amendment Act 2017 No. 28 of 2017 2 Authorised by the Chief Parliamentary Counsel (ii) to make further provision for transactions that are treated as sub-sale arrangements and the imposition of duty on those transactions; and (iii) in relation to the requirements for the provision of information for certain transactions and related offences; and (iv) in relation to an exemption for the transfer of a principal place of residence between domestic partners or spouses; and (v) in relation to certain landholders and financial exchanges; and (vi) to provide for an exemption from insurance duty for agricultural insurance products; and (vii) to increase the rate of motor vehicle duty for new and near new passenger vehicles; and (b) to amend the First Home Owner Grant Act 2000— (i) to exempt members of the Australian Defence Force from the residence requirement; and (ii) to increase the first home owner grant to $20 000 for purchases of new homes in regional Victoria; and (c) to amend the Land Tax Act 2005 to impose vacant residential land tax; and (d) to amend the Payroll Tax Act 2007— (i) to bring forward, by one year, the annual threshold amounts and monthly base deductible amounts which were to -- 6 of 85 -- Part 1—Preliminary State Taxation Acts Amendment Act 2017 No. 28 of 2017 3 Authorised by the Chief Parliamentary Counsel apply on and after the 2018 financial years; and (ii) to provide for a lower rate of payroll tax to be paid by certain Victorian regional employers in respect of taxable wages those employers pay to their employees who perform their services mainly in regional Victoria; and (e) to amend the Planning and Environment Act 1987 in relation to the calculation of the metropolitan planning levy threshold; and (f) to amend the Taxation Administration Act 1997— (i) in relation to the definition of a taxation law for the purposes of that Act; and (ii) in relation to offences relating to false and misleading statements and omissions; and (iii) to authorise the collection and disclosure of information about transfers of interests in real property for the purposes of reporting to the Commissioner of Taxation of the Commonwealth; and (iv) in relation to the disclosure of information by taxation officers for verification purposes; and (v) to enable the vacant residential land tax to be administered in the same way as other land taxes; and (g) to amend the Unclaimed Money Act 2008 in relation to offences about the provision of false or misleading information. -- 7 of 85 -- Part 1—Preliminary State Taxation Acts Amendment Act 2017 No. 28 of 2017 4 Authorised by the Chief Parliamentary Counsel 2 Commencement (1) This Act (except Divisions 1 to 5 and 7 to 9 of Part 2 and Parts 3, 4, 5, 6, 7 and 8) comes into operation on the day on which it receives the Royal Assent. (2) Divisions 1, 2, 3, 4 and 9 of Part 2, Part 7 (except Division 5) and Parts 3, 5, 6 and 8 come into operation on the day after the day on which this Act receives the Royal Assent. (3) Divisions 5, 7 and 8 of Part 2 come into operation on 1 July 2017. (4) Part 4 and Division 5 of Part 7 come into operation on 1 January 2018. -- 8 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 5 Authorised by the Chief Parliamentary Counsel Part 2—Amendment of Duties Act 2000 Division 1—Off-the-plan purchases, principal places of residence and first home buyers 3 Definitions In section 3(1) of the Duties Act 2000 insert the following definition— "PPR transfer has the meaning given by section 57I;". 4 What is the consideration for the transfer of dutiable property? (1) After section 21(1) of the Duties Act 2000 insert— "(2) The consideration for a PPR transfer is to be adjusted under subsection (3) or (4) only for the following purposes— (a) calculating duty under section 57J; (b) applying an exemption or concession under section 57JA.". (2) In section 21(3) of the Duties Act 2000, for "does not include" substitute "is to be adjusted to exclude". (3) In section 21(4) of the Duties Act 2000, for "taken not to include" substitute "to be adjusted to exclude". 5 Application of Division In the note at the foot of section 32B(6) of the Duties Act 2000, for "consideration does not include" substitute "in certain circumstances consideration is to be adjusted to exclude". -- 9 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 6 Authorised by the Chief Parliamentary Counsel 6 Provisions for determining consideration (1) After section 32V(2) of the Duties Act 2000 insert— "(2A) The consideration for a relevant transaction of a type specified in subsection (2B) is to be adjusted under subsection (3) or (4) only for the following purposes— (a) calculating duty under section 57J, if that section applies by operation of section 32G, 32N, 32OE or 32U; (b) applying an exemption or a concession under section 57JA that applies by operation of section 32G, 32N, 32OE or 32U. (2B) For the purposes of subsection (2A), the following types of relevant transactions are specified— (a) a sale contract referred to in section 32C(1)(a) or 32J(1)(a) that would result in a PPR transfer if it were completed by the first purchaser; (b) an option referred to in section 32OA(1)(a) or 32Q(1)(a) that would result in a PPR transfer if the transfer contemplated by the option were completed by the first purchaser; (c) a subsequent transaction referred to in section 32C(1)(b), 32J(1)(b), 32OA(1)(b) or 32Q(1)(b) that results in a PPR transfer when the property the subject of the transaction is transferred to the final subsequent purchaser; -- 10 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 7 Authorised by the Chief Parliamentary Counsel (d) a subsequent transaction referred to in section 32C(1)(c), 32J(1)(c), 32OA(1)(c) or 32Q(1)(c) that would result in a PPR transfer if the property the subject of the transaction were transferred to the subsequent purchaser.". (2) In section 32V(3) of the Duties Act 2000, for "does not include" substitute "is to be adjusted to exclude". (3) In section 32V(4) of the Duties Act 2000, for "taken not to include" substitute "to be adjusted to exclude". 7 Heading to Division 4A of Part 5 of Chapter 2 substituted For the heading to Division 4A of Part 5 of Chapter 2 of the Duties Act 2000 substitute— "Division 4A—Principal places of residence and first home buyers" . 8 Definitions In section 57G(1) of the Duties Act 2000 insert the following definition— "PPR concessional rate means a rate of duty specified in section 57J for a PPR transfer where the dutiable value of the dutiable property is more than $130 000 but not more than $550 000;". 9 What is a PPR transfer? In section 57I(1) of the Duties Act 2000— (a) in paragraph (c), for "1 January 2007; and" substitute "1 January 2007."; (b) paragraph (d) is repealed. -- 11 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 8 Authorised by the Chief Parliamentary Counsel 10 Rates of duty for certain PPR transfers (1) In the heading to section 57J of the Duties Act 2000, for "Concessional rate" substitute "Rates". (2) In section 57J of the Duties Act 2000 omit "more than $130 000 but". (3) For the table in section 57J of the Duties Act 2000 substitute— " Item Dutiable value of the dutiable property Rate of duty 1 Not more than $25 000 1⋅4% of the dutiable value 2 More than $25 000 but not more than $130 000 $350 plus 2⋅4% of that part of the dutiable value that exceeds $25 000 3 More than $130 000 but not more than $440 000 $2870 plus 5% of that part of the dutiable value that exceeds $130 000 4 More than $440 000 but not more than $550 000 $18 370 plus 6% of that part of the dutiable value that exceeds $440 000 ". (4) For the note at the foot of section 57J of the Duties Act 2000 substitute— "Note A PPR transfer where the dutiable value of the dutiable property is more than $550 000 is chargeable with duty at the rate set out in section 28(1), subject to any exemption or concession.". -- 12 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 9 Authorised by the Chief Parliamentary Counsel 11 Section 57JA substituted and new section 57JB inserted For section 57JA of the Duties Act 2000 substitute— "57JA Exemption or concession for certain first home buyers on PPR transfers (1) A transferee is entitled to an exemption from duty under this Chapter in respect of a PPR transfer if— (a) at the time of the transfer, the transferee satisfies the requirements specified in section 57JB in respect of the PPR transfer; and (b) the dutiable value of the dutiable property the subject of the PPR transfer is not more than $600 000. (2) A transferee is entitled to a concession from duty under this Chapter in respect of a PPR transfer if— (a) at the time of the transfer, the transferee satisfies the requirements specified in section 57JB in respect of the PPR transfer; and (b) the dutiable value of the dutiable property the subject of the PPR transfer is more than $600 000 but not more than $750 000. (3) The concession is an amount calculated in accordance with the formula— A $600 000 B $150 000 −  ×     where— A is the dutiable value of the property; -- 13 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 10 Authorised by the Chief Parliamentary Counsel B is the amount of duty paid or payable (but for this section) on the PPR transfer. 57JB Requirements—first home buyers For the purposes of section 57JA, the requirements for a transferee in respect of a PPR transfer are that a first home owner grant— (a) is paid or payable under section 7 of the First Home Owner Grant Act 2000 to the transferee in respect of the PPR transfer; or (b) would be payable under section 7 of the First Home Owner Grant Act 2000 to the transferee in respect of the PPR transfer except that any of the following apply in relation to the PPR transfer— (i) the home the subject of the PPR transfer is not a new home within the meaning of that Act; (ii) the PPR transfer does not meet the requirement in section 13(1A) of that Act.". 12 Residence requirement For section 57K(1) of the Duties Act 2000 substitute— "(1) The following are subject to the requirement that the transferee occupies the land as the transferee's principal place of residence 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— (a) a PPR concessional rate; -- 14 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 11 Authorised by the Chief Parliamentary Counsel (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).". 13 Variation of residence requirement For section 57L(2) of the Duties Act 2000 substitute— "(2) If the Commissioner determines that a temporary absence from residence does not break the continuity of residence, the transferee is not entitled to a PPR concessional rate, exemption or concession or an adjustment specified in subsection (2A) in respect of any other PPR transfer during the period of temporary absence unless the transferee pays the difference between— (a) the duty paid on the original PPR transfer; and (b) the duty on the original PPR transfer calculated— (i) at the rate set out in section 28(1); and (ii) without any adjustment of consideration under section 21(3) or (4) or 32V(3) or (4). (2A) For the purposes of subsection (2), the following are specified— (a) an exemption or concession from duty under section 57JA; (b) an adjustment of consideration under section 21(3) or (4) or 32V(3) or (4).". -- 15 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 12 Authorised by the Chief Parliamentary Counsel 14 Liability for duty if residence requirement not complied with (1) For section 57M(1)(a) of the Duties Act 2000 substitute— "(a) the PPR transfer is chargeable with duty— (i) at the rate set out in section 28(1) without any exemption or concession from duty under section 57JA, subject to any other exemption or concession; and (ii) without any adjustment of consideration under section 21(3) or (4) or 32V(3) or (4); and". (2) For section 57M(4) of the Duties Act 2000 substitute— "(4) If the residence requirement for a PPR transfer is not complied with, the transferee is not entitled to any of the following in respect of any other PPR transfer until the transferee has paid duty for which the transferee is liable because of this section— (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).". 15 Transferee to notify Commissioner of change in circumstances For section 57N(1) of the Duties Act 2000 substitute— "(1) A transferee who has received any of the following must lodge a written notice with the Commissioner within 30 days after becoming aware of any circumstances that -- 16 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 13 Authorised by the Chief Parliamentary Counsel may result in the residence requirement not being complied with— (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).". 16 Heading to Division 5 of Part 5 of Chapter 2 substituted For the heading to Division 5 of Part 5 of Chapter 2 of the Duties Act 2000 substitute— "Division 5—Eligible pensioner and eligible first home owner exemptions and concessions" . 17 Election to receive eligible pensioner exemption/concession In section 60A(1)(b)(i), (2)(b)(i) and (3)(a) of the Duties Act 2000, for "a reduction of his or her liability for duty" substitute "an exemption or concession from duty". Division 2—Provision of information 18 What is the consideration for the transfer of dutiable property? (1) In section 21(4A)(c), (d) and (e) of the Duties Act 2000, for "a statutory declaration in the approved form" substitute "information in the approved form given". -- 17 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 14 Authorised by the Chief Parliamentary Counsel (2) At the foot of section 21(4A) of the Duties Act 2000 insert— "Note Information may be given by means of electronic communication—see the Electronic Transactions (Victoria) Act 2000.". 19 Records to be kept In section 21B of the Duties Act 2000, for "makes a statutory declaration" substitute "gives information". 20 Joint and several liability for additional duty In section 21E of the Duties Act 2000— (a) in paragraph (a), for "makes a statutory declaration" substitute "gives information"; (b) in paragraph (b), for "statutory declaration" substitute "information". 21 Provisions for determining consideration (1) In section 32V(4A)(c), (d) and (e) of the Duties Act 2000, for "a statutory declaration in the approved form" substitute "information in the approved form given". (2) At the foot of section 32V(4A) of the Duties Act 2000 insert— "Note Information may be given by means of electronic communication—see the Electronic Transactions (Victoria) Act 2000.". (3) In section 32V(4B) of the Duties Act 2000, for "a statutory declaration made" substitute "information given". -- 18 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 15 Authorised by the Chief Parliamentary Counsel 22 Parties required to provide information to Commissioner (1) In section 32X(2) and (3) of the Duties Act 2000, for "a statutory declaration" substitute "information". (2) At the foot of section 32X of the Duties Act 2000 insert— "Note Information may be given by means of electronic communication—see the Electronic Transactions (Victoria) Act 2000.". Division 3—Sub-sale transactions 23 Definitions (1) In section 32A(1) of the Duties Act 2000— (a) after paragraph (b) of the definition of first purchaser insert— "(ba) for the purposes of Division 3A, has the meaning given in section 32O(1)(a);"; (b) insert the following definition— "specified Chapter 2 exemption means an exemption under Chapter 2 other than the following— (a) an exemption under Division 1 or 2 of Part 5; (b) an exemption under section 43;"; (c) after paragraph (b) of the definition of subsequent purchaser insert— "(ba) for the purposes of Division 3A, has the meaning given in section 32O(1)(b);"; -- 19 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 16 Authorised by the Chief Parliamentary Counsel (d) after paragraph (b) of the definition of subsequent transaction insert— "(ba) for the purposes of Division 3A, has the meaning given in section 32O(3);"; (e) after paragraph (b) of the definition of transfer right insert— "(ba) for the purposes of Division 3A, has the meaning given in section 32O(4);"; (f) in paragraph (c) of the definition of transfer right, for "section 32P(1)(b)" substitute "section 32P(4)". (2) Section 32A(2) of the Duties Act 2000 is repealed. 24 How duty is charged on transfer After section 32C(4) of the Duties Act 2000 insert— "(5) Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction— (a) if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the initial transaction; and (b) if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction. -- 20 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 17 Authorised by the Chief Parliamentary Counsel Examples 1 Persons A and B enter into a sale contract for dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the sale contract (a latter transaction), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the sale contract to the extent of the transfer right obtained by person A under the initial transaction (50%). 2 Persons C and D enter into a subsequent transaction in relation to dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a further subsequent transaction immediately following the initial transaction (a latter transaction), person C obtains a transfer right in respect of a 75% interest in the property and person D obtains a transfer right in respect of a 25% interest in the property. Duty is not charged under subsection (1)(c) in respect of the initial transaction to the extent of— • the transfer right obtained by person C under the initial transaction (50%); and • the transfer right obtained by person D under the latter transaction (25%). (6) In subsection (5)— initial transaction means the sale contract or a subsequent transaction; latter transaction means a subsequent transaction immediately following an initial transaction.". 25 Dutiable value of transactions (1) In section 32D(2)(a) of the Duties Act 2000 omit "excluded costs or". (2) Section 32D(3) of the Duties Act 2000 is repealed. -- 21 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 18 Authorised by the Chief Parliamentary Counsel 26 Exemptions and concessions In section 32G(1) and (3) of the Duties Act 2000, for "this Chapter" substitute "a specified Chapter 2 exemption". 27 How duty is charged on transfer (1) In section 32J(5) of the Duties Act 2000— (a) in paragraph (b), for "transfer right; or" substitute "transfer right."; (b) paragraph (c) is repealed. (2) After section 32J(6) of the Duties Act 2000 insert— "(7) Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(b) or (c) (as the case requires) if duty is charged on the subsequent transaction under Division 2. (8) Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction— (a) if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the initial transaction; and (b) if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction. -- 22 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 19 Authorised by the Chief Parliamentary Counsel Examples 1 Persons A and B enter into a sale contract for dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the sale contract (a latter transaction), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the sale contract to the extent of the transfer right obtained by person A under the initial transaction (50%). 2 Persons C and D enter into a subsequent transaction in relation to dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a further subsequent transaction immediately following the initial transaction (a latter transaction), person C obtains a transfer right in respect of a 75% interest in the property and person D obtains a transfer right in respect of a 25% interest in the property. Duty is not charged under subsection (1)(c) in respect of the initial transaction to the extent of— • the transfer right obtained by person C under the initial transaction (50%); and • the transfer right obtained by person D under the latter transaction (25%). (9) In subsection (8)— initial transaction means the sale contract or a subsequent transaction; latter transaction means a subsequent transaction immediately following an initial transaction.". 28 Dutiable value of transactions (1) In section 32K(2)(a) of the Duties Act 2000 omit "excluded costs or". (2) Section 32K(3) of the Duties Act 2000 is repealed. -- 23 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 20 Authorised by the Chief Parliamentary Counsel 29 Exemptions and concessions In section 32N(1) and (3) of the Duties Act 2000, for "this Chapter" substitute "a specified Chapter 2 exemption". 30 New Division 3A of Part 4A of Chapter 2 inserted After Division 3 of Part 4A of Chapter 2 of the Duties Act 2000 insert— "Division 3A—Transfers resulting from options involving additional consideration 32O Application of Division (1) This Division applies to a transfer of dutiable property referred to in section 10(1)(a) or (d) if— (a) the owner of the property (the vendor) grants an option to, or is granted an option by, another person (the first purchaser); and (b) any of the following persons (a subsequent purchaser) obtains or assumes a transfer right in relation to the property— (i) a person other than the first purchaser; (ii) the first purchaser and a person other than the first purchaser; (iii) if there is more than one first purchaser, one or more of the first purchasers in different proportions from those specified in the option; and -- 24 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 21 Authorised by the Chief Parliamentary Counsel (c) a subsequent purchaser or an associate of a subsequent purchaser gives or agrees to give additional consideration in order for the subsequent purchaser to obtain or assume the transfer right; and (d) the vendor transfers the property or any part of it to a subsequent purchaser. (2) It is immaterial whether a subsequent purchaser obtains or assumes a transfer right— (a) by way of an assignment, nomination, novation, option, contract of sale or otherwise; and (b) from the first purchaser or from another subsequent purchaser. (3) Each assignment, nomination, novation, option, contract of sale or other arrangement by which a subsequent purchaser obtains or assumes a transfer right is called a subsequent transaction. (4) In this section— additional consideration for a transfer right means any consideration given or agreed to be given by a subsequent purchaser or an associate of a subsequent purchaser in order for the subsequent purchaser to obtain or assume the transfer right, other than the following— (a) if the subsequent purchaser obtained or assumed the transfer right from the first purchaser, any consideration equal to the amount (if any) that the first purchaser paid to obtain the transfer right; -- 25 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 22 Authorised by the Chief Parliamentary Counsel (b) if the subsequent purchaser obtained or assumed the transfer right from another subsequent purchaser, any consideration equal to the amount (if any) that the other subsequent purchaser paid to obtain or assume the transfer right; (c) any reimbursement of excluded costs; (d) any increase in consideration that arises because of the operation of section 32V; parallel arrangement means an arrangement entered into by a subsequent purchaser or an associate of the subsequent purchaser before, at the time or within 12 months after the subsequent purchaser obtains or assumes a transfer right, under which the following occurs— (a) if the subsequent purchaser obtained or assumed the transfer right from a first purchaser—the first purchaser or an associate of the first purchaser is required to construct, or to arrange for the construction of, improvements to the property the subject of the transfer right for consideration; (b) if the subsequent purchaser obtained or assumed the transfer right from another subsequent purchaser—the other subsequent purchaser or an associate of the other subsequent purchaser is required to construct, or to -- 26 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 23 Authorised by the Chief Parliamentary Counsel arrange for the construction of, improvements to the property the subject of the transfer right for consideration; transfer right means— (a) a right to enter into a contract of sale of a property or any part of a property; or (b) a right to a transfer of a property or any part of a property; or (c) an obligation to enter into a contract of sale of a property or any part of a property; or (d) an obligation to accept a transfer of a property or any part of a property. (5) For the purposes of the definition of additional consideration in subsection (4), a subsequent purchaser or an associate of a subsequent purchaser who enters into a parallel arrangement is taken to have given or agreed to give the consideration under that arrangement in order for the subsequent purchaser to obtain or assume the transfer right in addition to any other consideration given or agreed to be given in order for the subsequent purchaser to obtain or assume the transfer right. (6) For the purposes of subsection (4) and (5), section 32V(3) does not apply in determining the consideration under a parallel arrangement. Note Section 32V(3) provides that in certain circumstances consideration is to be adjusted to exclude any amount paid or payable in respect of the construction of a -- 27 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 24 Authorised by the Chief Parliamentary Counsel building to be constructed on land on or after the date of the relevant transaction. 32OA How duty is charged on transfer (1) Duty on a transfer to which this Division applies is not charged in respect of the transfer from the vendor to the transferee, but is charged separately and distinctly on— (a) the dutiable value of the option; and (b) the dutiable value of the subsequent transaction by which the final subsequent purchaser obtained or assumed the transfer right; and (c) if there were any other subsequent transactions, the dutiable value of each of those transactions. (2) Duty is charged at the rate set out in Part 3 on the dutiable values referred to in subsection (1). (3) Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(b) or (c) (as the case requires) if duty is charged on the subsequent transaction under Division 2 or 3. (4) Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction— (a) if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the initial transaction; and -- 28 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 25 Authorised by the Chief Parliamentary Counsel (b) if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction. Example A vendor grants an option that entitles persons A and B to require the vendor to enter into a contract of sale of dutiable property (the initial transaction). Under the option, persons A and B each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the granting of the option (a latter transaction), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the option to the extent of the transfer right obtained by person A under the initial transaction (50%). (5) In subsection (4)— initial transaction means the option or a subsequent transaction; latter transaction means a subsequent transaction immediately following the initial transaction. 32OB Dutiable value of transactions (1) For the purposes of this Division, the dutiable value of the option referred to in section 32OA(1)(a) is the greater of— (a) the consideration that would need to be given to complete the sale or transfer contemplated by the option (including any consideration already given for the option); and (b) the amount for which the property might reasonably have been sold if it had been sold, free from encumbrances, -- 29 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 26 Authorised by the Chief Parliamentary Counsel in the open market on the date on which the option was granted. (2) For the purposes of this Division, the dutiable value of a subsequent transaction referred to in section 32OA(1)(b) or (c) is the greater of— (a) the consideration given or agreed to be given by the subsequent purchaser or an associate of the subsequent purchaser in order for the subsequent purchaser to obtain or assume the transfer right under the transaction, other than any increase in consideration that arises because of the operation of section 32V; and (b) the amount for which the property might reasonably have been sold if it had been sold, free from encumbrances, in the open market on the date on which the subsequent transaction was entered into. 32OC When does the liability to duty arise? A liability for duty charged by this Division arises when the transfer occurs. 32OD Who is liable to pay the duty? (1) Duty charged by this Division is payable— (a) in the case of duty referred to in section 32OA(1)(a)—by the first purchaser; (b) in the case of duty referred to in section 32OA(1)(b)—by the final subsequent purchaser; (c) in the case of duty referred to in section 32OA(1)(c)—by the subsequent purchaser who obtains or assumes a -- 30 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 27 Authorised by the Chief Parliamentary Counsel transfer right under the relevant subsequent transaction. (2) A transferee who pays duty payable under this Division by another person may recover the amount of that duty as a debt due to the transferee from the other person. 32OE Exemptions and concessions (1) Duty is not chargeable under section 32OA(1)(a) if the option would be exempt from duty under a specified Chapter 2 exemption if it were a transfer of dutiable property to the first purchaser. (2) If the first purchaser would be entitled to a concession under this Chapter if the option were a transfer to the first purchaser, the first purchaser is entitled to that concession in respect of duty charged under section 32OA(1)(a). (3) Duty is not chargeable under section 32OA(1)(b) or (c) if the subsequent transaction would be exempt from duty under a specified Chapter 2 exemption if it were a transfer of dutiable property to the subsequent purchaser who obtains or assumes the transfer right under the subsequent transaction. (4) If a subsequent purchaser would be entitled to a concession under this Chapter if the subsequent transaction were a transfer to the subsequent purchaser, the subsequent purchaser is entitled to that concession in respect of duty charged under section 32OA(1)(b) or (c).". -- 31 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 28 Authorised by the Chief Parliamentary Counsel 31 Heading to Division 4 of Part 4A of Chapter 2 amended In the heading to Division 4 of Part 4A of Chapter 2 of the Duties Act 2000, after "options" insert "involving land development". 32 Application of Division (1) In section 32P(1) of the Duties Act 2000— (a) in paragraph (b), for "obtains the right or assumes the obligation to enter into a contract of sale of the property or any part of it with the vendor or to have the property or any part of it transferred to the subsequent purchaser (a transfer right)" substitute "obtains or assumes a transfer right in relation to the property"; (b) in paragraph (b)(iii), after "those" insert "specified". (2) In section 32P(2) and (3) of the Duties Act 2000, after "obtains" insert "or assumes". (3) After section 32P(3) of the Duties Act 2000 insert— "(4) In this section— transfer right means— (a) a right to enter into a contract of sale of a property or any part of a property; or (b) a right to a transfer of a property or any part of a property; or (c) an obligation to enter into a contract of sale of a property or any part of a property; or -- 32 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 29 Authorised by the Chief Parliamentary Counsel (d) an obligation to accept a transfer of a property or any part of a property.". 33 How duty is charged on transfer (1) In section 32Q(1)(b) of the Duties Act 2000, after "obtained" insert "or assumed". (2) In section 32Q(3) of the Duties Act 2000— (a) in paragraph (b), for "occurred." substitute "occurred; or"; (b) after paragraph (b) insert— "(c) duty is charged on the option under Division 3A.". (3) In section 32Q(5) of the Duties Act 2000— (a) in paragraph (a), after "obtain" insert "or assume"; (b) in paragraph (b), for "a transfer right; or" substitute "or assumed a transfer right."; (c) paragraph (c) is repealed. (4) After section 32Q(6) of the Duties Act 2000 insert— "(7) Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(b) or (c) (as the case requires) if duty is charged on the subsequent transaction under Division 2, 3 or 3A. (8) Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction— (a) if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of -- 33 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 30 Authorised by the Chief Parliamentary Counsel the transfer right obtained by the person under the initial transaction; and (b) if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction. Example A vendor grants an option that entitles persons A and B to require the vendor to enter into a contract of sale of dutiable property (the initial transaction). Under the option, persons A and B each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the granting of the option (a latter transaction), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the option to the extent of the transfer right obtained by person A under the initial transaction (50%). (9) In subsection (8)— initial transaction means the option or a subsequent transaction; latter transaction means a subsequent transaction immediately following an initial transaction.". 34 Dutiable value of transactions (1) In section 32R(2)(a) of the Duties Act 2000— (a) after "obtain" insert "or assume"; (b) omit "excluded costs or". (2) Section 32R(3) of the Duties Act 2000 is repealed. -- 34 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 31 Authorised by the Chief Parliamentary Counsel 35 Who is liable to pay the duty? In section 32T(1)(c) of the Duties Act 2000, after "obtains" insert "or assumes". 36 Exemptions and concessions (1) In section 32U(1) of the Duties Act 2000, for "this Chapter" substitute "a specified Chapter 2 exemption". (2) In section 32U(3) of the Duties Act 2000— (a) for "this Chapter" substitute "a specified Chapter 2 exemption"; (b) after "obtains" insert "or assumes". 37 Provisions for determining consideration In section 32V(1)(b) of the Duties Act 2000— (a) after "Division" insert "3A or"; (b) in subparagraph (ii), after "obtain" insert "or assume". Division 4—Offences 38 Aggregation of certain dutiable transactions (1) For the penalty at the foot of section 24(6) of the Duties Act 2000 substitute— "Penalty: 600 penalty units, in the case of a body corporate; 120 penalty units, in any other case.". (2) After section 24(6) of the Duties Act 2000 insert— "(6A) A person does not commit an offence against subsection (6) if the person has a reasonable excuse for a failure to disclose details in accordance with that subsection.". -- 35 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 32 Authorised by the Chief Parliamentary Counsel 39 Misleading information—Tax avoidance schemes For section 69D(2) of the Duties Act 2000 substitute— "(2) The person must not, without reasonable excuse, in the instrument or in any material or data presented to the Commissioner— (a) omit from, or fail to include, any fact or circumstance affecting the liability of any person for duty under this Chapter; or (b) give information about any fact or circumstance affecting the liability of any person for duty under this Chapter that is false or misleading in a material particular. Penalty: 600 penalty units, in the case of a body corporate; 120 penalty units, in any other case. Note Section 130B of the Taxation Administration Act 1997 applies to an offence against this subsection.". 40 Misleading information—Acquisition of interests in certain landholders For section 89O(2) of the Duties Act 2000 substitute— "(2) The person must not, without reasonable excuse, in the instrument or in any material or data presented to the Commissioner— (a) omit from, or fail to include, any fact or circumstance affecting the liability of any person for duty under this Part; or -- 36 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 33 Authorised by the Chief Parliamentary Counsel (b) give information about any fact or circumstance affecting the liability of any person for duty under this Part that is false or misleading in a material particular. Penalty: 600 penalty units, in the case of a body corporate; 120 penalty units, in any other case. Note Section 130B of the Taxation Administration Act 1997 applies to an offence against this subsection.". Division 5—Marriage and domestic relationships exemption 41 Section 43 substituted and new sections 43A to 43D inserted For section 43 of the Duties Act 2000 substitute— "43 Marriage and domestic relationships— transfer of principal place of residence (1) No duty is chargeable under this Chapter in respect of a transfer of dutiable property from one person to another person, or from 2 persons to 1 of them, or from one person to themselves and another person if— (a) the persons are spouses or domestic partners of each other; and (b) the transaction meets the requirements set out in subsection (2). -- 37 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 34 Authorised by the Chief Parliamentary Counsel (2) For the purposes of subsection (1), the requirements are— (a) no person (other than a person referred to in subsection (1)) takes or is entitled to take an interest in the dutiable property the subject of the transfer; and (b) there is no consideration for the transfer; and (c) the property is residential property. 43A Residence requirement for section 43 exemption (1) The exemption under section 43 is subject to the requirement that a person who received the exemption occupies the land as the person's principal place of residence for a continuous period of at least 12 months commencing within the 12 month period immediately after the transfer. (2) The requirement under subsection (1) is complied with if the land is occupied for the period referred to in that subsection as the principal place of residence of at least one of the persons referred to in section 43(1) (whether separately or together and whether or not the same person occupies the land for the whole period). 43B Variation of residence requirement for section 43 exemption (1) If satisfied there is a good reason for doing so, the Commissioner may— (a) reduce the period of residence required by section 43A; or -- 38 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 35 Authorised by the Chief Parliamentary Counsel (b) determine that a temporary absence from residence does not break the continuity of residence for the purposes of section 43A; or (c) extend the period in which the residence required by section 43A must begin. (2) If the Commissioner determines that a temporary absence from residence does not break the continuity of residence, the person who received an exemption under section 43 is not entitled to an exemption under that section in respect of any other transfer during the period of temporary absence unless the person pays duty on the original transfer calculated at the rate set out in section 28(1), subject to any other exemption or concession. (3) If a person who is occupying land the subject of a transfer to which an exemption under section 43 applies as the person's principal place of residence, or is temporarily absent from the land in accordance with a determination under subsection (1), dies, the requirement under section 43A is taken to have been complied with for the transfer. 43C Liability for duty if residence requirement for section 43 exemption not complied with (1) If the period of residence required by section 43A for an exemption under section 43 is not complied with— (a) the transfer is chargeable with duty at the rate set out in section 28(1), subject to any other exemption or concession; and -- 39 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 36 Authorised by the Chief Parliamentary Counsel (b) the Commissioner may reassess duty on the transfer accordingly. (2) A liability for duty imposed because of subsection (1) on the transfer arises when the required period of residence for the transfer is not complied with. Note Section 16 provides that a tax default does not occur if the duty is paid within 30 days after the liability for the duty arises. (3) A reassessment referred to in subsection (1)(b) is authorised if more than 5 years have passed since the initial assessment was made. Note Section 9(3)(c) of the Taxation Administration Act 1997 allows a reassessment to be made more than 5 years after the initial assessment if this is authorised by a taxation law. (4) If the period of residence required by section 43A for an exemption under section 43 is not complied with, the person who received the exemption is not entitled to an exemption under that section in respect of any other transfer until the person has paid duty for which the person is liable because of this section. 43D Persons must notify Commissioner of change in circumstance—section 43 exemption (1) A person who has received an exemption under section 43 must lodge a written notice with the Commissioner within 30 days after becoming aware of any circumstances that may result in the residence requirement not being complied with. -- 40 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 37 Authorised by the Chief Parliamentary Counsel (2) A failure of the person to comply with subsection (1) does not affect the Commissioner's power to exercise a discretion under section 43B or to reassess duty under section 43C.". Division 6—Financial exchanges 42 Definitions (1) In section 3(1) of the Duties Act 2000 insert the following definitions— "LSE means the London Stock Exchange; NYSE means the New York Stock Exchange;". (2) In section 3(1) of the Duties Act 2000— (a) in the definition of listed company, in paragraph (ab), after "on the" insert "LSE, NYSE or"; (b) in the definition of listed trust, in paragraph (ab), after "on the" insert "LSE, NYSE or". 43 Meaning of landholder After section 71(4) of the Duties Act 2000 insert— "(5) A landholder that is a private company is taken to be a listed company or a landholder that is a private unit trust scheme is taken to be a public unit trust scheme for the purposes of this Part if— (a) all the shares in the company or units in the unit trust scheme are quoted on an exchange that was previously a member of the World Federation of Exchanges; and -- 41 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 38 Authorised by the Chief Parliamentary Counsel (b) all the shares in the company or units in the unit trust scheme have been quoted on the exchange referred to in paragraph (a) for a period of 12 months or more; and (c) the Commissioner is satisfied it is appropriate for the landholder to be treated as a listed company or public unit trust scheme.". 44 New clause 40 of Schedule 2 inserted—transitional provision relating to financial exchanges After clause 39 in Schedule 2 to the Duties Act 2000 insert— "40 State Taxation Acts Amendment Act 2017—financial exchanges A reference to an exchange of the World Federation of Exchanges in the definitions of listed company and listed trust in section 3(1) is taken to have always included a reference to the LSE and the NYSE before the commencement of Division 6 of Part 2 of the State Taxation Acts Amendment Act 2017.". Division 7—General insurance 45 What insurance is exempt from duty? For section 196(e) of the Duties Act 2000 substitute— "(e) crop insurance, being insurance covering loss due to the destruction of, or physical damage to, any crop of grain, fruit, vegetable or other plant, where the destruction or damage occurs while the crop is being grown, harvested or stored; -- 42 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 39 Authorised by the Chief Parliamentary Counsel (ea) agricultural machinery insurance, being insurance covering the breakdown of, or physical damage to, a harvester, binder, tractor, plough or other agricultural implement or any equipment associated with any such agricultural machinery; (eb) livestock insurance, being insurance covering loss due to any of the following— (i) the death of, or physical damage to, any animal, bee or bird, whether domesticated or wild, or any egg intended for hatching, including where the death or damage occurs while the animal, bee, bird or egg is being stored; (ii) the death of, or physical damage to, any genetic material of any livestock referred to in paragraph (i), including where the death or damage occurs while the genetic material is being stored; (iii) the theft of any livestock referred to in paragraph (i) or any genetic material referred to in paragraph (ii);". Division 8—Motor vehicle duty 46 What is the rate of duty? (1) In section 218(1)(a)(ia) of the Duties Act 2000, for "$6.40 per $200" substitute "$8.40 per $200". (2) In section 218(1)(ab) of the Duties Act 2000, for "$6.40 per $200" substitute "$8.40 per $200". -- 43 of 85 -- Part 2—Amendment of Duties Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 40 Authorised by the Chief Parliamentary Counsel Division 9—Transitional arrangements 47 New clauses 41 and 42 inserted in Schedule 2 After clause 40 of Schedule 2 to the Duties Act 2000 insert— "41 State Taxation Acts Amendment Act 2017—Off-the-plan purchases and principal place of residence Despite clause 27, sections 21, 32B(6), 32V, 57I(1), 57J, 57JA, 57K(1), 57L(2), 57M(1) and (4), 57N(1) and 60A, as in force immediately before the commencement of Division 1 of Part 2 of the State Taxation Acts Amendment Act 2017, continue to apply in respect of any dutiable transaction that occurs under a contract of sale entered into before 1 July 2017. 42 State Taxation Acts Amendment Act 2017—Sub-sale transactions Division 3A of Part 4A of Chapter 2 does not apply to a transfer of dutiable property resulting from an option that was granted before the commencement of section 30 of the State Taxation Acts Amendment Act 2017.". -- 44 of 85 -- Part 3—Amendment of First Home Owner Grant Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 41 Authorised by the Chief Parliamentary Counsel Part 3—Amendment of First Home Owner Grant Act 2000 48 Criterion 5—Residence requirement After section 12(3) of the First Home Owner Grant Act 2000 insert— "(4) An applicant is exempted from compliance with the residence requirement if, at the time the eligible transaction is completed— (a) for an application made by a single applicant, the applicant is a member of the Defence Force and is enrolled on the register of electors; or (b) for an application made by joint applicants— (i) at least one of the applicants is a member of the Defence Force; and (ii) each of the applicants is enrolled on the register of electors. (5) In this section— member of the Defence Force means a member of the Permanent Forces within the meaning of the Defence Act 1903 of the Commonwealth; register of electors has the same meaning as in the Electoral Act 2002.". 49 Amount of grant (1) After section 18(1A) of the First Home Owner Grant Act 2000 insert— "(1B) Despite subsection (1A), if the commencement date of an eligible transaction is on or after 1 July 2017 and before 1 July 2020 and the conditions in subsection (1C) are satisfied, the amount of -- 45 of 85 -- Part 3—Amendment of First Home Owner Grant Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 42 Authorised by the Chief Parliamentary Counsel the first home owner grant is the lesser of the following— (a) the consideration for the eligible transaction; (b) $20 000. (1C) For the purposes of subsection (1B), the conditions are— (a) the eligible transaction is a contract for the purchase of a new home; and (b) the land on which the new home will be situated is wholly in regional Victoria.". (2) For section 18(4C) of the First Home Owner Grant Act 2000 substitute— "(4C) Despite anything to the contrary in subsection (1), (1A) or (1B), the amount of a first home owner grant is— (a) the amount referred to in subsection (1), if the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made before 1 July 2013 (the pre-July 2013 contract) and the pre-July 2013 contract was— (i) a contract for the purchase of the same home; or (ii) a comprehensive home building contract to build the same home or a substantially similar home; or (b) the amount referred to in subsection (1A), if the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made on or after 1 July 2013 -- 46 of 85 -- Part 3—Amendment of First Home Owner Grant Act 2000 State Taxation Acts Amendment Act 2017 No. 28 of 2017 43 Authorised by the Chief Parliamentary Counsel and before 1 July 2017 (the pre-July 2017 contract) and the pre-July 2017 contract was— (i) a contract for the purchase of the same home; or (ii) a comprehensive home building contract to build the same home or a substantially similar home.". -- 47 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 44 Authorised by the Chief Parliamentary Counsel Part 4—Amendment of Land Tax Act 2005 50 Definitions In section 3(1) of the Land Tax Act 2005 insert the following definitions— "capital improved value has the same meaning as in the Valuation of Land Act 1960; commercial residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth; residential care facility has the meaning given in section 76(4); retirement village has the meaning given in section 78(3); supported residential service has the meaning given in section 76(4); vacant residential land tax means land tax imposed under Division 6 of Part 2; VRT land means taxable land that is— (a) residential land within the meaning of section 34B; and (b) vacant under section 34C; and (c) within the specified geographic area within the meaning of section 34D;". 51 General imposition of land tax For the note at the foot of section 7 of the Land Tax Act 2005 substitute— "Note For land tax on transition easements, see Division 4. For special land tax, see Division 5. For vacant residential land tax, see Division 6.". -- 48 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 45 Authorised by the Chief Parliamentary Counsel 52 Taxable value of land (1) In section 19(1) of the Land Tax Act 2005, for "The taxable value" substitute "Subject to subsection (1A), the taxable value". (2) After section 19(1) of the Land Tax Act 2005 insert— "(1A) For the purposes of calculating vacant residential land tax, the taxable value of land for a tax year is an amount equal to the capital improved value of the land as at the relevant date.". 53 New Division 6 of Part 2 inserted After Division 5 of Part 2 of the Land Tax Act 2005 insert— "Division 6—Vacant residential land tax 34A Imposition of vacant residential land tax (1) Vacant residential land tax is imposed each year on taxable land in Victoria that is— (a) residential land which is vacant; and (b) within the specified geographic area. (2) Vacant residential land tax is imposed in addition to any other land tax imposed under this Act. Note Certain taxable land is exempt from vacant residential land tax—see Division 9 of Part 4. -- 49 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 46 Authorised by the Chief Parliamentary Counsel 34B What is residential land? (1) For the purposes of this Division, residential land is land that is capable of being used solely or primarily for residential purposes. (2) Land is also residential land for the purposes of this Division if— (a) a residence is being constructed or renovated on the land; and (b) the land was capable of being used solely or primarily for residential purposes before the commencement of the construction or renovation; and (c) on the completion of the construction or renovation, the land will be capable of being used solely or primarily for residential purposes. (3) Despite subsections (1) and (2), residential land does not include land that is capable of being used and occupied solely or primarily as— (a) commercial residential premises and that may lawfully be used and occupied in that way; or (b) a residential care facility and that may lawfully be used and occupied in that way; or (c) a supported residential service and that may lawfully be used and occupied in that way; or (d) a retirement village service and that may lawfully be used and occupied in that way. -- 50 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 47 Authorised by the Chief Parliamentary Counsel 34C When is residential land vacant? (1) For the purposes of this Division, residential land referred to in section 34B(1) is vacant in a tax year if it has not been used and occupied for a period (whether continuous or aggregate) of greater than 6 months in the year preceding the tax year by— (a) the owner of the residential land as the principal place of residence of the owner; or (b) the owner's permitted occupant as the principal place of residence of the occupant; or (c) a natural person under a lease or short-term letting arrangement made in good faith and not for the purpose of avoiding the payment of vacant residential land tax. (2) For the purposes of this Division, residential land referred to in section 34B(2) is vacant in a tax year if, at the end of the year preceding the tax year— (a) the construction or renovation referred to in section 34B(2)(a) was not completed; and (b) more than 2 years have elapsed since that construction or renovation commenced. (3) Despite subsection (2), residential land referred to in section 34B(2) is not vacant in a tax year if the Commissioner is satisfied there is an acceptable reason for the construction or renovation not being completed by the end of the year preceding the tax year. -- 51 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 48 Authorised by the Chief Parliamentary Counsel (4) For the purposes of subsection (2), the date on which construction or renovation commences is the date of issue of the building permit for the construction or renovation. (5) In this section— permitted occupant means a person (other than a tenant) who uses and occupies land with the permission of the owner. 34D What is the specified geographic area? For the purposes of this Division, the specified geographic area is the area comprising all of the areas of the municipal districts of the Councils listed in Schedule 2A. 34E Who is liable for vacant residential land tax? (1) Subject to this section, the owner of VRT land is liable to pay vacant residential land tax on the land. (2) A mortgagee in possession who is deemed by section 17 to be an owner of VRT land is not liable to pay vacant residential land tax on the land. (3) The holder of a beneficial interest in a trust who is deemed by Division 2A or 2AB of Part 3 to be the owner of VRT land is not liable to pay vacant residential land tax on the land. -- 52 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 49 Authorised by the Chief Parliamentary Counsel 34F When must vacant residential land tax be paid? The day specified in a notice of assessment of vacant residential land tax must not be less than 14 days after the day the notice is served on the taxpayer. Note Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice. 34G Owner of land subject to vacant residential land tax must notify Commissioner (1) An owner of VRT land (other than an owner referred to in section 34E(2) or (3)) must lodge a written notice with the Commissioner before 15 January in each year. (2) A notice under this section must— (a) be in the form and contain the information determined by the Commissioner; and (b) be accompanied by any documents or other evidence determined by the Commissioner.". 54 What is the rate of land tax? (1) In section 35(1) of the Land Tax Act 2005, after "special land tax" insert "and vacant residential land tax". -- 53 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 50 Authorised by the Chief Parliamentary Counsel (2) After section 35(2) of the Land Tax Act 2005 insert— "(3) The rate of vacant residential land tax is 1% of the taxable value of the land. Note For the purposes of the vacant residential land tax, the taxable value of the land is the capital improved value of the land as at the relevant date—see section 19(1A).". 55 Certain taxable land assessed separately In section 37(1) of the Land Tax Act 2005, after "land tax" insert "(other than vacant residential land tax)". 56 New section 37A inserted After section 37 of the Land Tax Act 2005 insert— "37A Certain taxable land assessed separately— vacant residential land tax Subject to this Act, a taxpayer is to be assessed for vacant residential land tax for a tax year on the taxable value of VRT land of which the taxpayer was the owner on 31 December immediately preceding that tax year as if that land were the only land owned by the taxpayer.". 57 Assessment of joint owners of land In section 38(1) of the Land Tax Act 2005, after "land tax" insert "(other than vacant residential land tax)". -- 54 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 51 Authorised by the Chief Parliamentary Counsel 58 New section 38A inserted After section 38 of the Land Tax Act 2005 insert— "38A Assessment of joint owners—vacant residential land tax Joint owners of land are to be jointly assessed for vacant residential land tax on the land as if it were owned by a single person.". 59 Assessment of owner of land on which there are home units In section 42(1) of the Land Tax Act 2005, after "land tax" insert "(other than vacant residential land tax)". 60 Land tax on parts of land (1) In section 46 of the Land Tax Act 2005, after "land tax" (where first occurring) insert "(other than vacant residential land tax)". (2) At the end of section 46 of the Land Tax Act 20005 insert— "(2) If it is necessary to assess vacant residential land tax on part of land, the vacant residential land tax applicable to that part is the proportion of the vacant residential land tax, assessed on the taxable value of the whole of the land, that the taxable value of the part bears to the total taxable value of the whole land.". 61 Grouping of related corporations (1) In section 50(1) of the Land Tax Act 2005, for "The Commissioner" substitute "Subject to subsection (3), the Commissioner". -- 55 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 52 Authorised by the Chief Parliamentary Counsel (2) In section 50(2) of the Land Tax Act 2005, after "land tax" (where twice occurring) insert "(other than vacant residential land tax)". (3) After section 50(2) of the Land Tax Act 2005 insert— "(3) The Commissioner must not treat related corporations as a single corporation for the purposes of assessing vacant residential land tax.". 62 Absence from principal place of residence In section 56(1A)(b)(ii) of the Land Tax Act 2005 omit "within the meaning of section 76(4)". 63 Retirement villages In section 78(3) of the Land Tax Act 2005, in the definition of retirement village omit "within the meaning of section 76". 64 Exemption of land under construction for certain exempt uses In section 78A(8) of the Land Tax Act 2005— (a) in the definition of residential service, for "section 76A;" substitute "section 76A."; (b) the definitions of residential care facility, retirement village and supported residential service are repealed. -- 56 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 53 Authorised by the Chief Parliamentary Counsel 65 New Division 9 of Part 4 inserted After Division 8 of Part 4 of the Land Tax Act 2005 insert— "Division 9—Exemptions from vacant residential land tax 88A Holiday home exemption (1) Land is exempt from vacant residential land tax if— (a) in the year preceding the tax year, the owner of the land— (i) used and occupied other land in Australia as a principal place of residence; and (ii) used and occupied the land as a holiday home for a period of at least 4 weeks (whether continuous or aggregate); and (b) the Commissioner is satisfied that the land was used and occupied as a holiday home in that year. (2) In considering whether or not the Commissioner is satisfied for the purposes of subsection (1)(b), the Commissioner must have regard to— (a) the location of the land; and (b) the distance between the location of the land and the owner's principal place of residence; and (c) the nature and frequency of the use of the land. -- 57 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 54 Authorised by the Chief Parliamentary Counsel (3) An owner who is entitled to an exemption from vacant residential land tax under this section in a tax year is not entitled to an exemption under this section in respect of any other land in that tax year. 88B Exemption for land occupied for purposes of attending place of business or employment Land is exempt from vacant residential land tax if, in the year preceding the tax year, the owner of the land— (a) used and occupied other land in Australia as a principal place of residence; and (b) used and occupied the land as a residence for the purposes of attending the owner's place of business or employment and that place is in the specified geographic area (within the meaning of section 34D); and (c) used and occupied the land as a residence for the purposes referred to in paragraph (b) for an aggregate period of at least 140 days. 88C Residential land transferred during tax year Land that has changed in ownership in the year preceding the tax year is exempt from vacant residential land tax. -- 58 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 55 Authorised by the Chief Parliamentary Counsel 88D Land becomes residential land during tax year Land is exempt from vacant residential land tax for a tax year if— (a) at the commencement of the year preceding the tax year the land was not residential land within the meaning of section 34B(1); and (b) during the year preceding the tax year the land becomes residential land within the meaning of that subsection.". 66 New Schedule 2A inserted After Schedule 2 to the Land Tax Act 2005 insert— "Schedule 2A—Specified geographic area Section 34D Banyule City Council Bayside City Council Boroondara City Council Darebin City Council Glen Eira City Council Hobsons Bay City Council Manningham City Council Maribyrnong City Council Melbourne City Council Monash City Council Moonee Valley City Council Moreland City Council -- 59 of 85 -- Part 4—Amendment of Land Tax Act 2005 State Taxation Acts Amendment Act 2017 No. 28 of 2017 56 Authorised by the Chief Parliamentary Counsel Port Phillip City Council Stonnington City Council Whitehorse City Council Yarra City Council". 67 New clause 16 inserted in Schedule 3 After clause 15 of Schedule 3 to the Land Tax Act 2005 insert— "16 State Taxation Acts Amendment Act 2017 (1) For the purposes of section 34C(1), for the 2018 tax year residential land referred to in section 34B(1) is taken to be not vacant for the period beginning on 1 January 2017 and ending on 30 April 2017. (2) Subclause (3) applies to land that, on 1 January 2018, is residential land referred to in section 34B(2) because a residence is being constructed or renovated on it. (3) For the purposes of section 34C(2), the construction or renovation of a residence on land is taken to have commenced on 31 December 2017 if a building permit for that construction or renovation was issued on or before 31 December 2017.". -- 60 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 57 Authorised by the Chief Parliamentary Counsel Part 5—Amendment of Payroll Tax Act 2007 68 Definitions In section 3 of the Payroll Tax Act 2007 insert the following definitions— "regional employee means an employee of a regional employer who, in a month, performs services for the employer mainly in regional Victoria; regional employer has the meaning given in section 3A; regional Victoria has the same meaning as it has in section 18(8) of the First Home Owner Grant Act 2000;". 69 New definition inserted After section 3 of the Payroll Tax Act 2007 insert— "3A Meaning of regional employer (1) A regional employer is an employer— (a) who has an ABN and a registered business address located in regional Victoria or whose principal place of business is located in regional Victoria (if that employer does not have an ABN); and (b) who meets the specified requirements. (2) For the purposes of subsection (1), the specified requirements are— (a) at least 85% of the total taxable wages that the employer pays, or are payable by the employer, to the employer's employees during a month, are paid or payable to the employer's regional employees; and -- 61 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 58 Authorised by the Chief Parliamentary Counsel (b) for a financial year, at least 85% of the total taxable wages that the employer pays, or are payable by the employer, to the employer's employees, are paid or payable to the employer's regional employees during that year (the annual rate reduction threshold). (3) For the purposes of determining the annual rate reduction threshold, it is not necessary for the employer to meet the specified requirement under subsection (2)(a) in any month during the financial year. Note See also section 12A.". 70 New section 12A inserted After section 12 of the Payroll Tax Act 2007 insert— "12A Additional matters for determining whether employer is a regional employer (1) This section does not limit Division 2. (2) For the purposes of this Act— (a) if wages are paid or payable in connection with a business carried on by an employer in regional Victoria or elsewhere in Victoria under a trust, the employer's registered business address is— (i) the registered business address of the trust; or (ii) if the trust does not have an ABN—the registered business address of the trustee of the trust (if the trustee has an ABN); and -- 62 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 59 Authorised by the Chief Parliamentary Counsel (b) if an employer based in this jurisdiction has registered business addresses located in and outside regional Victoria at the same point in time, the location where the employer is based in this jurisdiction at that point in time is the location of the employer's principal place of business. (3) In addition, for the purposes of determining whether an employer is a regional employer for the purposes of this Act— (a) the location in this jurisdiction at which the employer is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable; and (b) if more than one location in this jurisdiction would qualify as the location in regional Victoria at which the employer is based during a month, the location at which the employer is based is to be determined by reference to the state of affairs existing on the last day of the month.". 71 Definitions for the purposes of Schedule 1 (1) In clause 1 of Schedule 1 to the Payroll Tax Act 2007, in the definition of R— (a) in paragraph (d), for "2014 or any subsequent financial year" substitute "2014, 2015 or 2016"; -- 63 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 60 Authorised by the Chief Parliamentary Counsel (b) after paragraph (d) insert— "(e) for the financial year commencing on 1 July 2017 or any subsequent financial year— (i) 3·65% in the case of a regional employer; and (ii) 4·85% in any other case.". (2) In clause 1 of Schedule 1 to the Payroll Tax Act 2007, for paragraphs (c), (d) and (e) of the definition of TA or threshold amount substitute— "(c) for the financial year commencing on 1 July 2017—$625 000; (d) for the financial year commencing on 1 July 2018 and each subsequent financial year—$650 000.". 72 Definitions for the purposes of Part 3 of Schedule 1 In clause 7 of Schedule 1 to the Payroll Tax Act 2007 insert the following definitions— "D is the deductible amount determined in accordance with clause 7A; JTW, for clauses 9 and 9A, represents the total taxable wages paid or payable during the relevant financial year by the employers covered by the return (as members of a group); Pe is that part of JTW that is attributable to all employers who are not regional employers; Pre is that part of JTW that is attributable to all regional employers; -- 64 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 61 Authorised by the Chief Parliamentary Counsel R e is the percentage specified in paragraph (e)(ii) of the definition R; R re is the percentage specified in paragraph (e)(i) of the definition R;". 73 New clause 7A of Schedule 1 inserted After clause 7 of Schedule 1 to the Payroll Tax Act 2007 insert— "7A Deductible amount for the purposes of this Part For the purposes of this Part, the deductible amount is the amount calculated in accordance with the following formula— GTW C TA GTW GIW FY   × ×  +   ". 74 Clause 9 of Schedule 1 substituted and new clauses 9A and 9B of Schedule 1 inserted For clause 9 of Schedule 1 to the Payroll Tax Act 2007 substitute— "9 Payroll of group over threshold where section 87(2) approval in force— employers covered by joint return are either all regional employers or not (1) This clause applies if— (a) an approval is in force under section 87(2) for a designated group employer to lodge a joint return; and (b) the members of the group covered by the return are— (i) all regional employers; or (ii) all employers who are not regional employers. -- 65 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 62 Authorised by the Chief Parliamentary Counsel (2) If the total taxable wages and interstate wages paid or payable by the group during the financial year is more than the group threshold amount, payroll tax is payable as provided by subclauses (3) and (4). (3) The designated group employer for the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— ( ) R D JTW × − (4) Each member of the group who is not covered by the return is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— R TW × 9A Payroll of group over threshold where section 87(2) approval in force—at least one but not all are regional employers (1) This clause applies if— (a) an approval is in force under section 87(2) for a designated group employer to lodge a joint return; and (b) at least one but not all of the members of the group covered by the return is a regional employer. (2) If the total taxable wages and interstate wages paid or payable by the group during the financial year is more than the group threshold amount, payroll tax is payable as provided by subclauses (3) and (4). -- 66 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 63 Authorised by the Chief Parliamentary Counsel (3) The designated group employer for the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— [ ] [ ] re e re e P P JTW D R JTW D R JTW JTW         − × × + − × ×                (4) Each member of the group who is not covered by the return is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— R TW × 9B Payroll of group over threshold—where no section 87(2) approval in force (1) This clause applies if an approval under section 87(2) is not in force for a designated group employer. (2) If the total taxable wages and interstate wages paid or payable by a group during the financial year is more than the group threshold amount, payroll tax is payable as provided by subclauses (3) and (4). (3) The designated group employer for the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— ( ) TW D R − × (4) Each member of the group (other than that designated group employer) is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula— R TW × ". -- 67 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 64 Authorised by the Chief Parliamentary Counsel 75 Calculation of monthly payroll tax In clause 1A of Schedule 2 to the Payroll Tax Act 2007, for paragraphs (b), (c) and (d) of the definition of base deductible amount substitute— "(b) for a month in the financial year commencing on 1 July 2017—$52 083; (c) for a month in the financial year commencing on 1 July 2018 and each subsequent financial year—$54 166.". 76 Rate of payroll tax For clause 2(d) of Schedule 2 to the Payroll Tax Act 2007 substitute— "(d) for wages paid or payable on or after 1 July 2014 and before 1 July 2017—4.85%; (e) for wages paid or payable on or after 1 July 2017— (i) 3·65% in the case of a regional employer; and (ii) 4·85% in any other case.". 77 Clause 8 of Schedule 2 substituted and new clauses 8A and 8B of Schedule 2 inserted For clause 8 of Schedule 2 to the Payroll Tax Act 2007 substitute— "8 Monthly payroll tax payable where section 87(2) approval in force— employers covered by joint return are either all regional employers or not (1) This clause applies if— (a) an approval is in force under section 87(2) for a designated group employer to lodge a joint return; and -- 68 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 65 Authorised by the Chief Parliamentary Counsel (b) the members of the group covered by the return are— (i) all regional employers; or (ii) all employers who are not regional employers. (2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month by the employers covered by the return— ( ) JTW D R − × where— JTW represents the total taxable wages paid or payable during the month by the employers covered by the return (as members of the group); D is the deductible amount referred to in clause 9 or 10 (as the case requires); R is the applicable rate of tax referred to in clause 2. (3) In addition, each employer who is a member of the group but is not covered by the return must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month— R TW × where— TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month; -- 69 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 66 Authorised by the Chief Parliamentary Counsel R is the applicable rate of tax referred to in clause 2. (4) For the purposes of subclause (2), if D is equal to or more than JTW in respect of a month, the designated group employer is not required to pay payroll tax in respect of that month. 8A Monthly payroll tax payable where section 87(2) approval in force— employers covered by joint return where at least one but not all are regional employers (1) This clause applies if— (a) an approval is in force under section 87(2) for a designated group employer to lodge a joint return; and (b) at least one but not all of the members of the group covered by the return is a regional employer. (2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month by the employers covered by the return— [ ] [ ] re e re e P P JTW D R JTW D R JTW JTW         − × × + − × ×                where— JTW represents the total taxable wages paid or payable during the month by the employers covered by the return (as members of the group); -- 70 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 67 Authorised by the Chief Parliamentary Counsel D is the deductible amount referred to in clause 9 or 10 (as the case requires); Pe is that part of JTW that is attributable to all employers who are not regional employers; Pre is that part of JTW that is attributable to all regional employers; Re is the rate of tax referred to in clause 2 that applies to an employer who is not a regional employer; Rre is the rate of tax referred to in clause 2 that applies to a regional employer. (3) In addition, each employer who is a member of the group but is not covered by the return must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month— R TW × where— TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month; R is the applicable rate of tax referred to in clause 2. (4) For the purposes of subclause (2), if D is equal to or more than JTW in respect of a month, the designated group employer is not required to pay payroll tax in respect of that month. -- 71 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 68 Authorised by the Chief Parliamentary Counsel 8B Monthly payroll tax payable where no section 87(2) approval in force (1) This clause applies if an approval under section 87(2) is not in force for a designated group employer. (2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month— ( ) R D TW × − where— TW represents the total taxable wages paid or payable by the designated group employer (as a member of a group) during the month; D is the deductible amount referred to in clause 9 or 10 (as the case requires); R is the applicable rate of tax referred to in clause 2. (3) In addition, each employer who is a member of the group must pay amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month— R TW × where— TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month; R is the applicable rate of tax referred to in clause 2. -- 72 of 85 -- Part 5—Amendment of Payroll Tax Act 2007 State Taxation Acts Amendment Act 2017 No. 28 of 2017 69 Authorised by the Chief Parliamentary Counsel (4) For the purposes of subclause (2), if D is equal to or more than TW in respect of a month, the designated group employer is not required to pay payroll tax in respect of that month.". 78 Consequential amendments to variable R in formulas set out in clauses 4 and 12 of Schedule 2 (1) In clause 4(1) of Schedule 2 to the Payroll Tax Act 2007, for the variable R in the formula set out in that subclause, before "rate" insert "applicable". (2) In clause 12 of Schedule 2 to the Payroll Tax Act 2007, for the variable R in the formula set out in that clause, before "rate" insert "applicable". -- 73 of 85 -- Part 6—Amendment of Planning and Environment Act 1987 State Taxation Acts Amendment Act 2017 No. 28 of 2017 70 Authorised by the Chief Parliamentary Counsel Part 6—Amendment of Planning and Environment Act 1987 79 CPI adjusted amount After section 96R(1) of the Planning and Environment Act 1987 insert— "(1A) The CPI adjusted amount determined under subsection (1) is to be rounded up or down to the nearest $1000 (and, if the amount by which the amount to be rounded is $500, is to be rounded up).". -- 74 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 71 Authorised by the Chief Parliamentary Counsel Part 7—Amendment of Taxation Administration Act 1997 Division 1—Meaning of taxation laws 80 Meaning of taxation laws (1) After section 4(1)(ca) of the Taxation Administration Act 1997 insert— "(cab) Part 6 of the Livestock Disease Control Act 1994 and any regulations made under that Act for the purposes of that Part;". (2) Section 4(2) of the Taxation Administration Act 1997 is repealed. Division 2—Record keeping and general offences 81 Instruments and returns to include all relevant information (1) For the penalty at the foot of section 10(1) of the Taxation Administration Act 1997 substitute— "Penalty: 600 penalty units in the case of a body corporate; 120 penalty units in any other case.". (2) After section 10(1) of the Taxation Administration Act 1997 insert— "(1A) A person does not commit an offence against subsection (1) if the person has a reasonable excuse for failing to ensure the information required by that subsection was included in— (a) the instrument; or (b) a statement produced together with the instrument prior to the payment of tax.". -- 75 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 72 Authorised by the Chief Parliamentary Counsel (3) For the penalty at the foot of section 10(2) of the Taxation Administration Act 1997 substitute— "Penalty: 600 penalty units in the case of a body corporate; 120 penalty units in any other case.". (4) After section 10(2) of the Taxation Administration Act 1997 insert— "(2A) A person does not commit an offence against subsection (2) if the person has a reasonable excuse for failing to ensure the information required by that subsection was included in the return.". 82 Inclusion of false or misleading information in records For the penalty at the foot of section 52(1) of the Taxation Administration Act 1997 substitute— "Penalty: 1200 penalty units in the case of a body corporate; 240 penalty units in any other case.". 83 Giving false or misleading information to tax officers (1) In section 57(1) of the Taxation Administration Act 1997, after "person must not" insert ", without reasonable excuse". (2) For the penalty at the foot of section 57(1) of the Taxation Administration Act 1997 substitute— "Penalty: 600 penalty units in the case of a body corporate; 120 penalty units in any other case.". (3) Section 57(2) of the Taxation Administration Act 1997 is repealed. -- 76 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 73 Authorised by the Chief Parliamentary Counsel 84 Deliberately omitting information For the penalty at the foot of section 58 of the Taxation Administration Act 1997 substitute— "Penalty: 1200 penalty units in the case of a body corporate; 240 penalty units in any other case.". 85 Criminal liability of officers of bodies corporate— accessorial liability Section 130A(2)(c)(i) of the Taxation Administration Act 1997 is repealed. 86 Criminal liability of officers of bodies corporate— failure to exercise due diligence After section 130B(2)(b)(iv) of the Taxation Administration Act 1997 insert— "(iva) section 69D(2);". Division 3—Reportable information 87 Definitions—reportable information In section 3(1) of the Taxation Administration Act 1997 insert the following definition— "reportable information means information about the transfer of a freehold interest in real property situated in Victoria that is reportable by the State to the Commissioner of Taxation of the Commonwealth under item 3 of the table at the foot of section 396-55 of Schedule 1 to the Taxation Administration Act 1953 of the Commonwealth;". -- 77 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 74 Authorised by the Chief Parliamentary Counsel 88 New Division 2B of Part 9 inserted After Division 2A of Part 9 of the Taxation Administration Act 1997 insert— "Division 2B—Collection of information for disclosure to the Commonwealth and for taxation law purposes 90F Relationship with other laws (1) Nothing in this Act or any other Act or law prevents the collection or disclosure of reportable information in accordance with this Division. (2) Nothing in this Division prevents the collection or disclosure of reportable information in accordance with any other provisions of this Act or any other Act or law. 90G Collection and disclosure of reportable information (1) The Commissioner may collect reportable information for the following purposes— (a) the purposes of disclosing it to the Commissioner of Taxation of the Commonwealth; (b) without limiting Division 2, for the purposes of the administration or execution of a taxation law. (2) The Commissioner may disclose reportable information to the Commissioner of Taxation of the Commonwealth. -- 78 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 75 Authorised by the Chief Parliamentary Counsel 90H How reportable information may be collected (1) The Commissioner may collect reportable information by requiring a person providing information for the purposes of a function carried out under a taxation law to provide the reportable information. (2) Without limiting subsection (1), the Commissioner may require reportable information to be provided in connection with the lodgment of an instrument, return or form, or the making of an application under a taxation law. (3) Nothing in this section limits the circumstances in which the Commissioner may collect reportable information.". Division 4—Data matching amendments 89 Permitted disclosures to particular persons or for particular purposes (1) After section 92(1)(b) of the Taxation Administration Act 1997 insert— "(ba) to a public service body for the purposes of verifying information obtained by the Commissioner by comparing that information with information held by the public service body; or". (2) In section 92(2) of the Taxation Administration Act 1997— (a) insert the following definition— "public service body has the same meaning as in the Public Administration Act 2004."; (b) in the definition of Landata, for "use." substitute "use;". -- 79 of 85 -- Part 7—Amendment of Taxation Administration Act 1997 State Taxation Acts Amendment Act 2017 No. 28 of 2017 76 Authorised by the Chief Parliamentary Counsel Division 5—Consequential amendments on imposition of vacant residential land tax 90 Definitions In section 3(1) of the Taxation Administration Act 1997, in the definition of notification default, before paragraph (a) insert— "(aa) a failure to lodge a notice under section 34G of the Land Tax Act 2005; or". 91 Amount of penalty tax In section 30(2A) of the Taxation Administration Act 1997, after "section" insert "34G,". 92 Supreme Court—limitation of jurisdiction At the end of section 135 of the Taxation Administration Act 1997 insert— "(7) It is the intention of sections 5, 12(4), 18(1), 96(2) and 100(4), as they apply on and after the commencement of section 92 of the State Taxation Acts Amendment Act 2017, to alter or vary section 85 of the Constitution Act 1975.". -- 80 of 85 -- Part 8—Amendment of Unclaimed Money Act 2008 State Taxation Acts Amendment Act 2017 No. 28 of 2017 77 Authorised by the Chief Parliamentary Counsel Part 8—Amendment of Unclaimed Money Act 2008 93 Giving false or misleading information to an authorised person (1) In section 25 of the Unclaimed Money Act 2008— (a) for "intentionally or negligently" substitute ", without reasonable excuse"; (b) for paragraph (c) substitute— "(c) omit from a declaration or statement made or from information given, orally or in writing, to an authorised person any matter or thing without which the declaration, statement or information is false or misleading in a material particular.". (2) For the penalty at the foot of section 25 of the Unclaimed Money Act 2008 substitute— "Penalty: In the case of a natural person, 120 penalty units; In the case of a body corporate, 600 penalty units.". (3) In the note at the foot of section 25 of the Unclaimed Money Act 2008, for "Section 26A" substitute "Section 26B". 94 Criminal liability of officers of bodies corporate— accessorial liability Section 26A(2)(g) of the Unclaimed Money Act 2008 is repealed. -- 81 of 85 -- Part 8—Amendment of Unclaimed Money Act 2008 State Taxation Acts Amendment Act 2017 No. 28 of 2017 78 Authorised by the Chief Parliamentary Counsel 95 Criminal liability of officers of bodies corporate— failure to exercise due diligence After section 26B(2)(b) of the Unclaimed Money Act 2008 insert— "(ba) section 25; (bb) section 33A;". 96 Registrar may pay owner After section 33(1) of the Unclaimed Money Act 2008 insert— "(1A) An application under this section must— (a) be in writing in the form approved by the Registrar; and (b) contain the information required by the Registrar; and (c) be accompanied by any document required by the Registrar.". 97 New section 33A inserted After section 33 of the Unclaimed Money Act 2008 insert— "33A Giving false or misleading information to the Registrar A person who makes an application under section 33(1) must not, without reasonable excuse, in respect of that application— (a) make a declaration or statement, orally or in writing, to the Registrar that is false or misleading in a material particular; or (b) give information, orally or in writing, to the Registrar that is false or misleading in a material particular; or -- 82 of 85 -- Part 8—Amendment of Unclaimed Money Act 2008 State Taxation Acts Amendment Act 2017 No. 28 of 2017 79 Authorised by the Chief Parliamentary Counsel (c) omit from a declaration or statement made or from information given to the Registrar, orally or in writing, any matter or thing without which the declaration, statement or information is false or misleading in a material particular. Penalty: In the case of a natural person, 120 penalty units; In the case of a body corporate, 600 penalty units. Note Section 26B applies to an offence against this section.". -- 83 of 85 -- Part 9—Repeal of amending Act State Taxation Acts Amendment Act 2017 No. 28 of 2017 80 Authorised by the Chief Parliamentary Counsel Part 9—Repeal of amending Act 98 Repeal of amending Act This Act is repealed on 1 July 2019. 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). ═════════════ -- 84 of 85 -- Endnotes State Taxation Acts Amendment Act 2017 No. 28 of 2017 81 Authorised by the Chief Parliamentary Counsel 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: 9 May 2017 Legislative Council: 25 May 2017 The long title for the Bill for this Act was "A Bill for an Act to make miscellaneous amendments to the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005, the Payroll Tax Act 2007, the Planning and Environment Act 1987, the Taxation Administration Act 1997 and the Unclaimed Money Act 2008 and for other purposes." Constitution Act 1975: Section 85(5) statement: Legislative Assembly: 9 May 2017 Legislative Council: 25 May 2017 Absolute majorities: Legislative Assembly: 25 May 2017 Legislative Council: 22 June 2017 -- 85 of 85 --