State Taxation and Other Acts Amendment Act 2016
Authorised by the Chief Parliamentary Counsel
Authorised Version
i
State Taxation and Other Acts Amendment
Act 2016
No. 40 of 2016
TABLE OF PROVISIONS
Section Page
Part 1—Preliminary 1
1 Purposes 1
2 Commencement 3
Part 2—Amendment of the Duties Act 2000 4
3 Definitions 4
4 New section 3G inserted 5
5 Foreign purchasers—duty in respect of change of use of land 9
6 Rate for additional duty chargeable for foreign purchasers—
residential property 10
7 Transactions treated as sub-sales of land—repeal of definition 10
8 New sections 277 and 278 inserted 10
9 New clauses 34 to 39 inserted in Schedule 2 11
10 Statute law revision 15
Part 3—Amendment of the Fire Services Property Levy Act 2012 16
Division 1—Exemption and concessions 16
11 Single farm enterprise exemption 16
12 Concessions 17
Division 2—Consumer price index adjustment 18
13 CPI adjusted fixed charge 18
Part 4—Amendment of the First Home Owner Grant Act 2000 20
14 Power to recover amount paid in error etc. 20
15 Insertion of Division headings in Part 4 20
16 New sections 49B to 49G inserted 21
17 Protection of confidential information 26
Part 5—Amendment of the Land Tax Act 2005 27
18 Definitions 27
19 Absentee controlling interest 28
20 What is the rate of land tax? 29
21 Land tax surcharge for absentee trusts 29
-- 1 of 61 --
Section Page
ii
Authorised by the Chief Parliamentary Counsel
22 Land tax for absentee fixed trust if beneficial interests notified
to Commissioner 29
23 Land tax for absentee unit trust scheme if unitholdings notified
to Commissioner 30
24 Land tax for beneficiary/trustees 30
25 Land tax surcharge for related absentee corporations 36
26 Exemption of primary production land in an urban zone in
greater Melbourne 36
27 Rate of land tax on land held by absentee owners for 2016 36
28 New clause 4.2 of Schedule 1 inserted 37
29 Rate of land tax on land held by owner subject to an absentee
trust for 2016 38
30 New clause 5.2 of Schedule 1 inserted 38
Part 6—Amendment of the Mineral Resources (Sustainable
Development) Act 1990 40
31 Royalties for lignite 40
Part 7—Amendment of the Payroll Tax Act 2007 42
Division 1—Threshold amounts and deductible amounts 42
32 Designated group employers 42
33 Registration 42
34 Amendment of Schedule 1 43
35 Definitions in Schedule 1 43
36 New Division 1AA of Part 2 of Schedule 2 inserted 44
37 Deductible amount for employer who does not pay interstate
wages 44
38 Deductible amount for employer who pays interstate wages 44
39 Deductible amount for groups that do not pay interstate wages 45
40 Deductible amount for groups that pay interstate wages 45
Division 2—Exemption for apprentices and trainees 45
41 Amounts taken to be wages 45
42 Definitions in Schedule 2 45
43 New clause 16A inserted in Schedule 2 46
Part 8—Amendment of the Planning and Environment Act 1987 48
Division 1—Consumer price index adjustments 48
44 CPI adjusted amount 48
45 Indexation of threshold amount for excluded building work 49
46 Maximum adjusted growth areas infrastructure contribution 51
47 Adjusted deferred amount of growth areas infrastructure
contribution 52
Division 2—Statute law revision 54
48 Statute law revision 54
-- 2 of 61 --
Section Page
iii
Authorised by the Chief Parliamentary Counsel
Part 9—Amendment of the State Taxation Acts Further
Amendment Act 2015 55
49 New clauses 13A and 13B inserted in Schedule 2 55
50 Clause 16 of Schedule 2 substituted 55
Part 10—Amendment of the Taxation Administration Act 1997 56
51 What happens if Commissioner refuses a refund? 56
52 Permitted disclosures to particular persons or for particular
purposes 56
Part 11—Repeal of amending Act 57
53 Repeal of amending Act 57
═══════════════
Endnotes 58
1 General information 58
-- 3 of 61 --
Authorised by the Chief Parliamentary Counsel
Authorised Version
1
State Taxation and Other Acts
Amendment Act 2016†
No. 40 of 2016
[Assented to 28 June 2016]
The Parliament of Victoria enacts:
Part 1—Preliminary
1 Purposes
The main purposes of this Act are—
(a) to amend the Duties Act 2000 in relation to
foreign purchasers; and
Victoria
-- 4 of 61 --
Part 1—Preliminary
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
2
Authorised by the Chief Parliamentary Counsel
(b) to amend the Fire Services Property Levy
Act 2012—
(i) to clarify the scope of the single farm
enterprise exemption; and
(ii) to insert references to certain
concession cards that entitle the holder
to a discount on the fire services
property levy; and
(iii) to clarify the methodology for the
indexation of the fixed charge
determined under that Act; and
(c) to amend the First Home Owner Grant
Act 2000—
(i) to empower the Commissioner to
recover from third parties amounts
owed by applicants and former
applicants; and
(ii) in relation to the service of certain
documents; and
(iii) to permit the disclosure of certain
information to the Ombudsman; and
(d) to amend the Land Tax Act 2005—
(i) in relation to the absentee owner
surcharge; and
(ii) in relation to the primary production
land exemption; and
(e) to amend the Mineral Resources
(Sustainable Development) Act 1990 to
provide for a threefold increase in the rate
for royalties for lignite; and
-- 5 of 61 --
Part 1—Preliminary
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
3
Authorised by the Chief Parliamentary Counsel
(f) to amend the Payroll Tax Act 2007—
(i) to increase the wages threshold under
that Act and make consequential
amendments; and
(ii) to provide a new exemption for wages
paid or payable to an apprentice or
trainee who resumes an apprenticeship
or traineeship with a different
employer; and
(g) to amend the Planning and Environment
Act 1987 to clarify the methodology for the
indexation of certain amounts under that Act;
and
(h) to amend the State Taxation Acts
Further Amendment Act 2015 to make
miscellaneous amendments to that Act; and
(i) to amend the Taxation Administration
Act 1997 in relation to refunds and to permit
the disclosure of certain information to
Councils in certain circumstances.
2 Commencement
(1) This Act (except Part 2, Division 1 of Part 3,
sections 13 and 20, Part 7 and sections 44 to 47)
comes into operation on the day after the day on
which it receives the Royal Assent.
(2) Sections 13, 45, 46 and 47 are taken to have come
into operation on 30 June 2014.
(3) Section 20 comes into operation on 1 January
2017.
(4) Section 44 is taken to have come into operation on
1 July 2015.
(5) Part 2, Division 1 of Part 3, and Part 7 come into
operation on 1 July 2016.
-- 6 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
4
Authorised by the Chief Parliamentary Counsel
Part 2—Amendment of the Duties Act 2000
3 Definitions
In section 3(1) of the Duties Act 2000—
(a) insert the following definition—
"land development, in relation to land,
means any one or more of the
following—
(a) preparing a plan of subdivision
of the land or taking any steps to
have the plan registered under the
Subdivision Act 1988;
(b) applying for or obtaining a
permit under the Planning and
Environment Act 1987 in
relation to the use or development
of the land;
(c) requesting under the Planning
and Environment Act 1987 a
planning authority to prepare an
amendment to a planning scheme
that would affect the land;
(d) applying for or obtaining a permit
or approval under the Building
Act 1993 in relation to the land;
(e) doing anything in relation to
the land for which a permit
or approval referred to in
paragraph (d) would be required;
(f) developing or changing the land in
any other way that would lead to
the enhancement of its value;";
-- 7 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
5
Authorised by the Chief Parliamentary Counsel
(b) for the definition of residential property
substitute—
"residential property has the meaning given
by section 3G;".
4 New section 3G inserted
After section 3F of the Duties Act 2000 insert—
"3G What is residential property?
(1) Residential property is—
(a) land capable of being used solely or
primarily for residential purposes and
that may lawfully be used in that way;
or
(b) land which includes a building, or part
of a building, that a person intends to
refurbish or extend so the land is
capable of being used solely or
primarily for residential purposes and
may lawfully be used in that way; or
(c) land—
(i) on which a person intends to
construct a building so the land is
capable of being used solely or
primarily for residential purposes
and may lawfully be used in that
way; or
(ii) in respect of which a person has
undertaken or intends to undertake
land development for the purposes
of—
(A) constructing a building so
the land is capable of being
used solely or primarily for
residential purposes and may
-- 8 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
6
Authorised by the Chief Parliamentary Counsel
lawfully be used in that way;
or
(B) enabling another person to
construct a building so the
land is capable of being
used solely or primarily
for residential purposes and
may lawfully be used in that
way.
(2) Despite subsection (1), residential property
does not include any of the following—
(a) land—
(i) capable of being used solely
or primarily as commercial
residential premises, a residential
care facility, a supported
residential service or for the
purposes of a retirement village
and that may lawfully be used in
that way; and
(ii) that a person intends to use solely
or primarily as commercial
residential premises, a residential
care facility, a supported
residential service or for the
purposes of a retirement village;
(b) land which includes a building, or part
of a building, that a person intends to
refurbish or extend so the land is
capable of being used solely or
primarily as commercial residential
premises, a residential care facility, a
supported residential service or for the
purposes of a retirement village and
that may lawfully be used in that way;
-- 9 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
7
Authorised by the Chief Parliamentary Counsel
(c) land—
(i) on which a person intends to
construct a building so the land
is capable of being used solely
or primarily as commercial
residential premises, a residential
care facility, a supported
residential service or for the
purposes of a retirement village
and that may lawfully be used in
that way; or
(ii) in respect of which a person has
undertaken or intends to undertake
land development for the purposes
of—
(A) constructing a building so
the land is capable of being
used solely or primarily as
commercial residential
premises, a residential
care facility, a supported
residential service or for the
purposes of a retirement
village and that may lawfully
be used in that way; or
(B) enabling another person to
construct a building so the
land is capable of being
used solely or primarily
as commercial residential
premises, a residential
care facility, a supported
residential service or for the
purposes of a retirement
village and that may lawfully
be used in that way.
-- 10 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
8
Authorised by the Chief Parliamentary Counsel
(3) In this section—
commercial residential premises has the
same meaning as in the A New Tax
System (Goods and Services Tax)
Act 1999 of the Commonwealth;
refurbish means to undertake building work
that requires a building permit to be
issued under the Building Act 1993 for
the conversion of an existing building;
residential care facility has the same
meaning as in section 76 of the Land
Tax Act 2005;
retirement village has the same meaning as
in the Retirement Villages Act 1986;
supported residential service has the
same meaning as in the Supported
Residential Services (Private
Proprietors) Act 2010.
Examples
1 A person purchases a fee simple interest in land on
which there is a free standing home that was designed
and constructed as a residence. The land is capable of
being used solely or primarily for residential purposes
and may lawfully be used in that way. The person has
acquired a land-related interest in residential property.
2 A person purchases a fee simple interest in a
warehouse that was designed and constructed for
industrial purposes. The person purchases the interest
with the intention of refurbishing the warehouse into
residential apartments. At the time of purchase, the
land is not capable of being used solely or primarily
for residential purposes and may not lawfully be used
in that way. However, the person has acquired a
land-related interest in residential property.
-- 11 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
9
Authorised by the Chief Parliamentary Counsel
3 A person purchases a fee simple interest in an
apartment on the tenth floor of a building.
The premises on the ground floor of the building
were designed and constructed as shops. The person
has acquired a land-related interest in residential
property because the person has purchased an
interest in land that is capable of being used solely
or primarily for residential purposes and may lawfully
be used in that way.".
5 Foreign purchasers—duty in respect of change of
use of land
(1) For section 18A(1)(b) of the Duties Act 2000
substitute—
"(b) after the land-related interest is transferred, it
becomes a land-related interest in residential
property when the foreign purchaser forms
an intention referred to in section 3G(1)(b)
or (c).".
(2) For section 18A(3) of the Duties Act 2000
substitute—
"(3) Within 30 days after the foreign purchaser
forms the intention, the foreign purchaser
must pay duty in relation to the land-related
interest in residential property at the
following rates—
(a) if the foreign purchaser forms the
intention on or after 1 July 2015 but
before 1 July 2016—3% of the dutiable
value of the interest at the time that it
was transferred; or
(b) if the foreign purchaser forms
the intention on or after 1 July
2016—7% of the dutiable value of
the interest at the time that it was
transferred.".
-- 12 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
10
Authorised by the Chief Parliamentary Counsel
6 Rate for additional duty chargeable for foreign
purchasers—residential property
In section 28A(2) of the Duties Act 2000, for
"3%" substitute "7%".
7 Transactions treated as sub-sales of land—repeal of
definition
In section 32A(1) of the Duties Act 2000, the
definition of land development is repealed.
8 New sections 277 and 278 inserted
After section 276 of the Duties Act 2000 insert—
"277 First charge on land—foreign purchasers
of residential property
(1) This section applies if—
(a) a transferee is liable to pay duty under
section 18A or 28A in relation to a
transaction that occurs on or after
1 July 2015; and
(b) a tax default occurs for the purposes
of the Taxation Administration
Act 1997 in relation to the transaction;
and
(c) on or after 1 July 2016, the
Commissioner makes an assessment
or reassessment in relation to the
transaction.
(2) Any unpaid duty (including any penalty tax
and interest) in relation to the transaction is a
first charge on the land to which the
transaction relates.
(3) The charge has priority over all other
encumbrances to which the land is subject.
-- 13 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
11
Authorised by the Chief Parliamentary Counsel
278 Registration of charge
(1) The Commissioner may register a charge on
land under section 277(2) by depositing with
the Registrar of Titles a certificate describing
the land charged and stating that there is
unpaid duty in relation to the land.
(2) The Registrar of Titles must make a
recording of the certificate in the Register.
(3) When the unpaid duty (including any penalty
tax and interest) is paid, the Commissioner
may request the Registrar of Titles—
(a) to remove or delete the charge; or
(b) to make a recording in the Register of
the discharge of the charge.
(4) The Registrar of Titles must comply with a
request made by the Commissioner under
subsection (3).".
9 New clauses 34 to 39 inserted in Schedule 2
After clause 33 in Schedule 2 to the Duties
Act 2000 insert—
"34 State Taxation and Other Acts
Amendment Act 2016—residential
property and rate for foreign purchaser
duty
Chapters 1 and 2, as in force immediately
before 1 July 2016, apply in respect of any
dutiable transaction entered into on or after
1 July 2015 but before 1 July 2016 under
which a land-related interest in residential
property is transferred to a foreign purchaser.
-- 14 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
12
Authorised by the Chief Parliamentary Counsel
35 State Taxation and Other Acts
Amendment Act 2016—residential
property for the purposes of Chapter 3
The definition of residential property set
out in section 3(1), as in force immediately
before 1 July 2016, applies in respect of any
acquisition of an interest in a landholder that
holds a land-related interest in residential
property if the agreement or arrangement for
the acquisition was entered into by a foreign
purchaser on or after 1 July 2015 but before
1 July 2016.
36 State Taxation and Other Acts
Amendment Act 2016—2015-2016
agreements and arrangements for
significant interest foreign purchaser
acquisitions
(1) This clause applies if—
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2015 but before 1 July 2016 for
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
(b) the acquisition, when made, is an
acquisition of an interest referred to in
section 78(1)(a)(i).
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(1), that duty must be calculated
in accordance with that subsection but using
the rate specified under this Act that would
have applied if the acquisition of the interest
was made on the day the agreement or
-- 15 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
13
Authorised by the Chief Parliamentary Counsel
arrangement was entered into by the foreign
purchaser.
37 State Taxation and Other Acts
Amendment Act 2016—2015-2016
agreements and arrangements for
aggregated significant interest foreign
purchaser acquisitions
(1) This clause applies if—
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2015 but before 1 July 2016 for
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
(b) the acquisition, when made, is an
acquisition of an interest referred to in
section 78(1)(a)(ii), or after it is made,
becomes an interest of that kind.
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(3), that duty must be calculated
in accordance with that subsection but using
the rate specified under this Act that would
have applied if the acquisition of the interest
was made on the day the agreement or
arrangement was entered into by the foreign
purchaser.
38 State Taxation and Other Acts
Amendment Act 2016—2015-2016
agreements and arrangements for foreign
purchaser acquisitions of further interests
(1) This clause applies if—
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2015 but before 1 July 2016 for
-- 16 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
14
Authorised by the Chief Parliamentary Counsel
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
(b) the acquisition, when made, is an
acquisition of a further interest in the
landholder referred to in
section 78(1)(b).
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(4), that duty must be calculated in
accordance with that subsection but using the
rate specified under this Act that would have
applied if the acquisition was made on the
day the agreement or arrangement was
entered into by the foreign purchaser.
39 State Taxation and Other Acts
Amendment Act 2016—pre-2015
agreements and arrangements for foreign
purchaser acquisitions
(1) This clause applies if—
(a) a foreign purchaser entered into an
agreement or arrangement before
1 July 2015 for the acquisition of an
interest in a landholder that holds a
land-related interest in residential
property; and
(b) the acquisition, when made, is an
acquisition of an interest referred to in
section 78(1), or after it is made,
becomes an interest of that kind.
(2) Despite anything in this Act, in calculating
any duty chargeable on the acquisition
section 28A is to be disregarded.".
-- 17 of 61 --
Part 2—Amendment of the Duties Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
15
Authorised by the Chief Parliamentary Counsel
10 Statute law revision
(1) In section 3A(4) of the Duties Act 2000, for
"section 14(3)" substitute "section 22(3)".
(2) In section 62(4) of the Duties Act 2000, for
"transfer." substitute "transfer;".
(3) In section 63(3) of the Duties Act 2000, for
"transfer." substitute "transfer;".
(4) In section 159(2) of the Duties Act 2000, for
"Australia" substitute "Australia.".
-- 18 of 61 --
Part 3—Amendment of the Fire Services Property Levy Act 2012
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
16
Authorised by the Chief Parliamentary Counsel
Part 3—Amendment of the Fire Services
Property Levy Act 2012
Division 1—Exemption and concessions
11 Single farm enterprise exemption
(1) For section 9A(1)(a) and (b) of the Fire Services
Property Levy Act 2012 substitute—
"(a) the parcel is one of 2 or more parcels of land
that constitute a single farm enterprise; and".
(2) In section 9A(5) of the Fire Services Property
Levy Act 2012 insert the following definition—
"farm land means land—
(a) that is used primarily for grazing
(including agistment), dairying,
pig-farming, poultry-farming,
fish-farming, tree-farming,
bee-keeping, viticulture, horticulture,
fruit-growing or the growing of crops
of any kind or for any combination of
those activities; and
(b) that is used by a business—
(i) that has a significant and
substantial commercial purpose
or character; and
(ii) that seeks to make a profit on a
continuous or repetitive basis from
its activities on the land; and
(iii) that is making a profit from its
activities on the land, or that has a
reasonable prospect of making a
profit from its activities on the
land if it continues to operate in
the way that it is operating;".
-- 19 of 61 --
Part 3—Amendment of the Fire Services Property Levy Act 2012
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
17
Authorised by the Chief Parliamentary Counsel
(3) In section 9A(5) of the Fire Services Property
Levy Act 2012, in paragraph (b) of the definition
of single farm enterprise—
(a) for "properties" (where twice occurring)
substitute "parcels";
(b) for "property" substitute "parcel".
12 Concessions
In section 29(8) of the Fire Services Property
Levy Act 2012, in the definition of concession
card—
(a) after paragraph (a) insert—
"(ab) a pensioner concession card issued
under section 53 of the Veterans'
Entitlements Act 1986 of the
Commonwealth; or";
(b) after paragraph (b)(ii) insert—
"(iia) a person who is eligible for treatment
under Part V of the Veterans'
Entitlements Act 1986 of the
Commonwealth as a former prisoner
of war to whom section 85(4)(b) of
that Act applies; or
(iib) a person who is eligible to be paid
a pension under Part II of the
Veterans' Entitlements Act 1986
of the Commonwealth at the rate
provided for by section 22(4) of that
Act; or".
-- 20 of 61 --
Part 3—Amendment of the Fire Services Property Levy Act 2012
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
18
Authorised by the Chief Parliamentary Counsel
Division 2—Consumer price index adjustment
13 CPI adjusted fixed charge
In section 11(3) of the Fire Services Property
Levy Act 2012—
(a) in the definition of "L", after "charge" insert
"determined in accordance with this section";
(b) for the definitions of "A" and "B"
substitute—
'A is the sum of the consumer price index
numbers for the consecutive reference
periods in the period—
(a) commencing on 1 January in the
levy year 2 years earlier than the
levy year in respect of which the
CPI adjusted fixed charge is being
determined; and
(b) ending on the next following
31 December in the levy year
immediately preceding the levy
year in respect of which the CPI
adjusted fixed charge is being
determined—
last published by the Australian Bureau
of Statistics as at 15 April immediately
preceding the levy year in respect of
which the CPI adjusted fixed charge is
being determined;
B is the sum of the consumer price index
numbers for the consecutive reference
periods in the period—
-- 21 of 61 --
Part 3—Amendment of the Fire Services Property Levy Act 2012
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
19
Authorised by the Chief Parliamentary Counsel
(a) commencing on 1 January in the
levy year 3 years earlier than the
levy year in respect of which the
CPI adjusted fixed charge is being
determined; and
(b) ending on the next following
31 December in the levy year
2 years earlier than the levy year
in respect of which the CPI
adjusted fixed charge is being
determined.
Example
In the case of a determination of the CPI adjusted
fixed charge for the financial year beginning on
1 July 2016—
• "L" is the amount of the fixed charge for the levy
year beginning on 1 July 2015; and
• "A" is the sum of the consumer price index
numbers for the consecutive reference periods in
the period commencing on 1 January 2015 and
ending on 31 December 2015; and
• "B" is the sum of the consumer price index
numbers for the consecutive reference periods in
the period commencing on 1 January 2014 and
ending on 31 December 2014.'.
-- 22 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
20
Authorised by the Chief Parliamentary Counsel
Part 4—Amendment of the First Home
Owner Grant Act 2000
14 Power to recover amount paid in error etc.
(1) In section 49(1) of the First Home Owner Grant
Act 2000 omit "(or former applicant)" where
twice occurring.
(2) After section 49(6) of the First Home Owner
Grant Act 2000 insert—
"(7) In this section—
applicant includes a former applicant.".
15 Insertion of Division headings in Part 4
(1) Before section 47 of the First Home Owner
Grant Act 2000 insert—
"Division 1—Offences".
(2) Before section 48 of the First Home Owner
Grant Act 2000 insert—
"Division 2—Recovery".
(3) Before section 50 of the First Home Owner
Grant Act 2000 insert—
"Division 3—Protection of information".
(4) Before section 51 of the First Home Owner
Grant Act 2000 insert—
"Division 4—Other".
-- 23 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
21
Authorised by the Chief Parliamentary Counsel
16 New sections 49B to 49G inserted
After section 49A of the First Home Owner
Grant Act 2000 insert—
"49B Recovery from third parties—Lessees,
mortgagees and occupiers
(1) If an applicant is liable to pay a grant
amount, the Commissioner may require a
lessee, mortgagee or occupier of any
specified property to pay the grant amount or
any part of the grant amount that is payable
but remains unpaid.
(2) The Commissioner cannot require a lessee or
occupier—
(a) to pay an amount under this section that
is greater than the amount of rent the
lessee or occupier is required to pay the
applicant; or
(b) to pay an amount under this section
before the day on which the lessee or
occupier is required to pay rent to the
applicant.
(3) Subsection (2) does not apply to a lessee or
occupier who is a relative of the applicant.
(4) The Commissioner's requirement is to be
made by notice in writing.
(5) A copy of the notice must be served on the
applicant.
(6) The amount must be paid to the
Commissioner on receipt of the notice or by
the date specified in the notice, whichever is
the later.
-- 24 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
22
Authorised by the Chief Parliamentary Counsel
(7) In this section—
applicant includes a former applicant;
grant amount means an amount to which
section 49 applies and includes a
judgment debt and costs in respect of
that amount;
relative has the same meaning as in the
Land Tax Act 2005;
specified property means—
(a) a home in respect of which the
applicant has received a first
home owner grant; or
(b) land in which the applicant
has an interest described in
section 5(2)(a) to (h), other than
an interest that section 5(3)(a)
to (c) provides is not a relevant
interest.
49C Consequences when person pays an
amount under section 49B
(1) A person who pays an amount under
section 49B is entitled to recover that amount
from the applicant as a debt, or to set off the
amount against any money owing to the
applicant.
(2) If a lessee or occupier pays an amount under
section 49B—
(a) the amount is taken to have been paid
to the Commissioner by the applicant;
and
-- 25 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
23
Authorised by the Chief Parliamentary Counsel
(b) the lessee or occupier is taken to have
paid an equal amount of rent to the
applicant under the lease or agreement
or under any applicable tenancy law.
(3) If a mortgagee pays an amount under
section 49B, the amount is taken to be
secured by the mortgage in addition to any
other amount secured by it.
(4) In this section—
applicant includes a former applicant.
49D Recovery from other third parties
(1) Subject to subsection (2), if an applicant
is liable to pay a grant amount, the
Commissioner may require any of the
following persons instead of the applicant
to pay the grant amount or any part of the
grant amount that remains unpaid—
(a) a person by whom any money is due or
accruing or may become due to the
applicant;
(b) a person who holds or may
subsequently hold money for or on
account of the applicant;
(c) a person who holds or may
subsequently hold money on account of
some other person for payment to the
applicant;
(d) a person having authority from some
other persons to pay money to the
applicant.
-- 26 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
24
Authorised by the Chief Parliamentary Counsel
(2) The Commissioner must not recover under
this section—
(a) an amount of rent a lessee or occupier
is required to pay the applicant; or
(b) an amount a mortgagee is required to
pay the applicant under a mortgage.
Note
Under section 49B, the Commissioner may recover
from lessees and occupiers rent owed to applicants
and amounts mortgagees are required to pay
applicants.
(3) The Commissioner's requirement is to be
made by notice in writing.
(4) A copy of the notice must be served on the
applicant.
(5) The amount of money required to be paid to
the Commissioner under this section is—
(a) if the amount of money held or due or
authorised to be paid does not exceed
the grant amount, all of the money; or
(b) if the amount of the money exceeds the
grant amount, sufficient money to pay
the grant amount.
(6) The money must be paid to the
Commissioner on receipt of the notice, or
when the money is held by the person, or
after such period (if any) as may be specified
by the Commissioner, whichever is the later.
(7) If, after a person is given a notice under this
section by the Commissioner, the whole or a
part of the grant amount is paid by another
person, the Commissioner must promptly
notify the person to whom the notice is given
of the payment and the notice is taken to be
amended accordingly.
-- 27 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
25
Authorised by the Chief Parliamentary Counsel
(8) In this section—
applicant includes a former applicant;
grant amount means an amount to which
section 49 applies and includes a
judgment debt and costs in respect of
that amount.
49E Indemnification of other third party
A person who makes a payment in
accordance with section 49D is taken to be
acting under the authority of the applicant
(or former applicant) and of all other persons
concerned and is indemnified by this section
in respect of the payment.
49F Service of certain documents by the
Commissioner
(1) A document authorised or required to be
served on or given to a person by the
Commissioner in relation to the recovery of
an amount to which section 49 applies, may
be served on or given to the person—
(a) personally; or
(b) by leaving it at the last address of the
person known to the Commissioner; or
(c) by post addressed to the person at the
last address of the person known to the
Commissioner; or
(d) by a means indicated by the person as
being an available means of service
(such as by facsimile or other electronic
transmission or by delivering it,
addressed to the person, to the facilities
of a document exchange); or
(e) by any means provided for the service
of the document by another Act or law.
-- 28 of 61 --
Part 4—Amendment of the First Home Owner Grant Act 2000
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
26
Authorised by the Chief Parliamentary Counsel
(2) To avoid doubt, this section applies to the
service of any court process in proceedings
to recover any amount under this Act.
(3) If a person (the agent) has actual or apparent
authority to accept service of a document on
behalf of another, the Commissioner may,
for the purposes of this Act, serve the
document on the agent as if the agent were
that other person.
49G When is service effective?
(1) If the Commissioner serves or gives a person
a document in relation to the recovery of an
amount to which section 49 applies, the
document must be taken, unless the contrary
is proved, to have been served on or given to
the person by the Commissioner—
(a) in the case of delivery in person, at the
time the document is delivered;
(b) in the case of a facsimile or other
electronic transmission, at the time the
facsimile or transmission is received.
(2) If a facsimile or other electronic transmission
is received after 4.00 p.m. on any day, it
must be taken to have been received on the
next business day.
(3) In this section—
business day means a day other than a
Saturday, a Sunday or a public holiday
appointed under the Public Holidays
Act 1993.".
17 Protection of confidential information
After section 50(4)(ca)(vi) of the First Home
Owner Grant Act 2000 insert—
"(vii) the Ombudsman; or".
-- 29 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
27
Authorised by the Chief Parliamentary Counsel
Part 5—Amendment of the Land
Tax Act 2005
18 Definitions
In section 3(1) of the Land Tax Act 2005, for the
definition of absentee beneficiary substitute—
"absentee beneficiary means—
(a) a natural person absentee who or an
absentee corporation that (not acting in
the capacity of a trustee of a trust)—
(i) has a beneficial interest in land
subject to a fixed trust; or
(ii) is a unitholder in a unit trust
scheme; or
(iii) is a specified beneficiary of a
discretionary trust; or
(b) any person who—
(i) has a beneficial interest in land
subject to a fixed trust and holds
that interest as a trustee of an
absentee trust; or
(ii) is a unitholder in a unit trust
scheme and holds unitholdings in
that unit trust scheme as a trustee
of an absentee trust; or
(iii) is a specified beneficiary of a
discretionary trust in the capacity
as a trustee of an absentee trust;".
-- 30 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
28
Authorised by the Chief Parliamentary Counsel
19 Absentee controlling interest
(1) In section 3A(c) of the Land Tax Act 2005, for
"a corporation" substitute "the corporation".
(2) At the end of section 3A of the Land Tax
Act 2005 insert—
"(2) For the purposes of subsection (1)—
(a) a reference to the issued share capital
of a corporation does not include a
reference to any part of it that carries no
right to participate beyond a specified
amount in a distribution of either profits
or capital; and
(b) subject to paragraphs (c) and (d), any
shares held or power exercisable by a
person or nominee for an absentee
person are taken to be also held or
exercisable by the absentee person; and
(c) any shares held or power exercisable
by an absentee person by virtue of
the provisions of any debentures of
another corporation, or of a trust deed
for securing any issue of any such
debentures, must be disregarded; and
(d) any shares held or power exercisable
by, or by a nominee for, an absentee
person (not being held or exercisable as
mentioned in paragraph (c)) are taken
to be not held or exercisable by that
person if—
(i) the ordinary business of that
person includes the lending of
money; and
(ii) the shares are held or the power
is exercisable only by way of
security given for the purposes of
-- 31 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
29
Authorised by the Chief Parliamentary Counsel
a transaction entered into in the
ordinary course of business in
connection with the lending of
money, not being a transaction
entered into with an associate of
that person within the meaning of
the Corporations Act; and
(e) the composition of a corporation's
board is taken to be controlled by an
absentee person if the absentee person,
by the exercise of a power exercisable
whether or not with the consent or
concurrence of any other person, can
appoint or remove all or a majority of
the members of the board.
(3) Subsection (2)(e) does not limit the
circumstances in which the composition
of a corporation's board is to be taken to
be controlled by an absentee person.".
20 What is the rate of land tax?
In section 35(1A) of the Land Tax Act 2005,
for "5·5%" substitute "6·5%".
21 Land tax surcharge for absentee trusts
In section 46IA(1)(a) of the Land Tax
Act 2005, in the formula set out in that
paragraph, for "0·5%" substitute "1·5%".
22 Land tax for absentee fixed trust if beneficial
interests notified to Commissioner
(1) In section 46IB(1)(a) of the Land Tax Act 2005,
after "this Act" insert "other than Division 1 of
Part 4".
-- 32 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
30
Authorised by the Chief Parliamentary Counsel
(2) In section 46IB(3) of the Land Tax Act 2005—
(a) in paragraph (a), after "this Act" insert
"other than Division 1 of Part 4";
(b) in paragraph (b), in the formula set
out in that paragraph, for "0·5%"
substitute "1·5%".
(3) In section 46IB(4)(a) of the Land Tax Act 2005,
in the formula set out in that paragraph, for
"0·5%" substitute "1·5%".
23 Land tax for absentee unit trust scheme if
unitholdings notified to Commissioner
In section 46IC(3)(b) and (4)(a) of the Land Tax
Act 2005, in the formula set out in each of those
paragraphs, for "0·5%" substitute "1·5%".
24 Land tax for beneficiary/trustees
(1) After section 46ID(2) of the Land Tax Act 2005
insert—
"(2A) Subsection (3) applies to—
(a) a beneficiary/trustee who holds a
beneficial interest in the land subject
to the first trust as an absentee
beneficiary and all of the beneficial
interests in the land subject to the first
trust are beneficial interests of absentee
beneficiaries; or
(b) a beneficiary/trustee who holds a
unitholding in the first scheme as an
absentee beneficiary and all of the
unitholdings in the first scheme are
held by unitholders who are absentee
beneficiaries.".
-- 33 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
31
Authorised by the Chief Parliamentary Counsel
(2) For section 46ID(3)(a) of the Land Tax Act 2005
substitute—
"(a) the amount determined by the formula—
B A ×
where—
A is—
(a) the proportion of the
beneficiary/trustee's beneficial
interest in land subject to the
first trust to the total beneficial
interests in land subject to the first
trust; or
(b) the proportion of the
beneficiary/trustee's unitholding
in the first scheme to the total
unitholdings in the first scheme;
B is the total amount of tax assessed on
the trustee of the first trust or the first
scheme on the whole of the land subject
to the first trust or first scheme; and".
(3) After section 46ID(3) of the Land Tax Act 2005
insert—
"(4) Subsection (5) applies to—
(a) a beneficiary/trustee who holds a
beneficial interest in the land subject to
the first trust as an absentee beneficiary
and at least one, but not all, of the
beneficial interests in the land subject
to the first trust is a beneficial interest
of a beneficiary who is not an absentee
beneficiary; or
-- 34 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
32
Authorised by the Chief Parliamentary Counsel
(b) a beneficiary/trustee who holds a
unitholding in the first scheme as an
absentee beneficiary and at least one,
but not all, of the unitholdings in the
first scheme is held by a unitholder who
is not an absentee beneficiary.
(5) There is to be deducted from any land tax
payable by a beneficiary/trustee on land
that is subject to the second trust an amount
(if any) necessary to avoid double taxation,
being the lesser of—
(a) the amount determined by the
formula—
( ) A B (C 1 5%) × + × ⋅
where—
A is—
(a) the proportion of the
beneficiary/trustee's
beneficial interest in land
subject to the first trust to the
total beneficial interests in
land subject to the first trust;
or
(b) the proportion of the
beneficiary/trustee's
unitholding in the first
scheme to the total
unitholdings in the first
scheme;
-- 35 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
33
Authorised by the Chief Parliamentary Counsel
B is that part of the total amount of
tax assessed on the trustee of the
first trust or the first scheme on
the whole of the land subject to
the first trust or first scheme
determined by applying the
applicable rate set out in Part 1 of
Schedule 1 on the whole of the
land subject to the first trust or
first scheme;
C is the taxable value of all taxable
land owned by the
beneficiary/trustee; and
(b) the amount determined by the
formula—
E
D
C ×
where—
C is the taxable value of the land of
which the beneficiary/trustee is
taken by subsection (1) to be the
owner;
D is the total taxable value of all
taxable land owned by the
beneficiary/trustee that is subject
to the second trust;
E is the amount of tax assessed
under this Act on the
beneficiary/trustee in respect of
all taxable land owned by the
beneficiary/trustee that is subject
to the second trust.
-- 36 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
34
Authorised by the Chief Parliamentary Counsel
(6) Subsection (7) applies to—
(a) a beneficiary/trustee who holds a
beneficial interest in the land subject
to the first trust not as an absentee
beneficiary and at least one, but not all,
of the beneficial interests in the land
subject to the first trust is a beneficial
interest of a beneficiary who is an
absentee beneficiary; or
(b) a beneficiary/trustee who holds a
unitholding in the first scheme not as
an absentee beneficiary and at least
one, but not all, of the unitholdings in
the first scheme is held by a unitholder
who is an absentee beneficiary.
(7) There is to be deducted from any land tax
payable by a beneficiary/trustee on land
that is subject to the second trust an amount
(if any) necessary to avoid double taxation,
being the lesser of—
(a) the amount determined by the
formula—
B A ×
where—
A is—
(a) the proportion of the
beneficiary/trustee's
beneficial interest in land
subject to the first trust to the
total beneficial interests in
land subject to the first trust;
or
-- 37 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
35
Authorised by the Chief Parliamentary Counsel
(b) the proportion of the
beneficiary/trustee's
unitholding in the first
scheme to the total
unitholdings in the first
scheme;
B is that part of the total amount of
tax assessed on the trustee of the
first trust or the first scheme on
the whole of the land subject to
the first trust or first scheme
determined by applying the
applicable rate set out in Part 1 of
Schedule 1 on the whole of the
land subject to the first trust or
first scheme; and
(b) the amount determined by the
formula—
E
D
C ×
where—
C is the taxable value of the land of
which the beneficiary/trustee is
taken by subsection (1) to be the
owner;
D is the total taxable value of all
taxable land owned by the
beneficiary/trustee that is subject
to the second trust;
E is the amount of tax assessed
under this Act on the
beneficiary/trustee in respect
of all taxable land owned by the
beneficiary/trustee that is subject
to the second trust.".
-- 38 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
36
Authorised by the Chief Parliamentary Counsel
25 Land tax surcharge for related absentee
corporations
In section 50A(2) of the Land Tax Act 2005, in
the formula set out in that subsection, for "0·5%"
substitute "1·5%".
26 Exemption of primary production land in an urban
zone in greater Melbourne
(1) In section 67(2)(d)(iii)(B) of the Land Tax
Act 2005, for "land." substitute "land; or".
(2) After section 67(2)(d) of the Land Tax Act 2005
insert—
"(e) a trustee of a superannuation trust of
which—
(i) all the members or beneficiaries (as the
case requires) of the trust are relatives;
and
(ii) at least one member or beneficiary
(as the case requires) of the trust is
normally engaged in a substantially
full-time capacity in the business of
primary production of the type carried
on on the land.".
27 Rate of land tax on land held by absentee owners
for 2016
(1) In the heading to clause 4.1 of Schedule 1 to
the Land Tax Act 2005, after "owners" insert
"for 2016".
(2) In clause 4.1 of Schedule 1 to the Land
Tax Act 2005 omit "and each subsequent
year".
-- 39 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
37
Authorised by the Chief Parliamentary Counsel
28 New clause 4.2 of Schedule 1 inserted
In Part 4 of Schedule 1 to the Land Tax
Act 2005, after clause 4.1 insert—
"4.2 Rate of land tax on land held by absentee
owners for 2017 and subsequent years
The rate of land tax on land held by an
absentee owner for 2017 and each
subsequent year is set out in Table 4.2.
TABLE 4.2
Item
Column 1
Taxable
value not
less than
Column 2
Taxable
value less
than
Column 3
Rate of land tax
$ $
1 0 250 000 Nil
2 250 000 600 000 $4025 and 1⋅7% of
the taxable value that
exceeds $250 000
3 600 000 1 000 000 $9975 and 2% of the
taxable value that
exceeds $600 000
4 1 000 000 1 800 000 $17 975 and 2⋅3% of
the taxable value that
exceeds $1 000 000
5 1 800 000 3 000 000 $36 375 and 2⋅8% of
the taxable value that
exceeds $1 800 000
6 3 000 000 $69 975 and 3⋅75% of
the taxable value that
exceeds $3 000 000
".
-- 40 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
38
Authorised by the Chief Parliamentary Counsel
29 Rate of land tax on land held by owner subject to an
absentee trust for 2016
(1) In the heading to clause 5.1 of Schedule 1 to
the Land Tax Act 2005, after "trust" insert
"for 2016".
(2) In clause 5.1 of Schedule 1 to the Land Tax
Act 2005 omit "and each subsequent year".
30 New clause 5.2 of Schedule 1 inserted
In Part 5 of Schedule 1 to the Land Tax
Act 2005, after clause 5.1 insert—
"5.2 Rate of land tax on land held by owner
subject to an absentee trust for 2017 and
subsequent years
The rate of land tax for land held by an
owner subject to an absentee trust for 2017
and each subsequent year is set out in
Table 5.2.
TABLE 5.2
Item
Column 1
Taxable
value not
less than
Column 2
Taxable
value less
than
Column 3
Rate of land tax
$ $
1 0 25 000 Nil
2 25 000 250 000 $457 and 1⋅875% of
the taxable value that
exceeds $25 000
3 250 000 600 000 $4676 and 2⋅0575%
of the taxable value
that exceeds $250 000
4 600 000 1 000 000 $11 938 and 2⋅375%
of the taxable value
that exceeds $600 000
-- 41 of 61 --
Part 5—Amendment of the Land Tax Act 2005
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
39
Authorised by the Chief Parliamentary Counsel
Item
Column 1
Taxable
value not
less than
Column 2
Taxable
value less
than
Column 3
Rate of land tax
$ $
5 1 000 000 1 800 000 $21 438 and 2⋅675%
of the taxable value
that exceeds
$1 000 000
6 1 800 000 3 000 000 $42 838 and 2⋅2614%
of the taxable value
that exceeds
$1 800 000
7 3 000 000 $69 975 and 3⋅75% of
the taxable value that
exceeds $3 000 000
".
-- 42 of 61 --
Part 6—Amendment of the Mineral Resources (Sustainable Development)
Act 1990
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
40
Authorised by the Chief Parliamentary Counsel
Part 6—Amendment of the Mineral
Resources (Sustainable
Development) Act 1990
31 Royalties for lignite
In section 12A(5) of the Mineral Resources
(Sustainable Development) Act 1990, for the
definitions of base amount and consumer price
index substitute—
"base amount means—
(a) for the period commencing on
1 July 2016 and ending on
31 December 2016, the amount
determined in accordance with the
following formula—
A
$0 0588 B
⋅ ×
where—
A is the consumer price index
number for the reference period
ending on 30 June 2016;
B is the consumer price index
number for the financial year
ending on 30 June 2005; and
(b) for the period commencing on
1 January 2017 and ending on
30 June 2017, the amount determined
in accordance with the following
formula—
$0 0021402 C ⋅ ×
-- 43 of 61 --
Part 6—Amendment of the Mineral Resources (Sustainable Development)
Act 1990
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
41
Authorised by the Chief Parliamentary Counsel
where—
C is the consumer price index
number for the financial year
ending on 30 June 2016; and
(c) for the financial year ending on
30 June 2018 and each subsequent
financial year, the amount determined
in accordance with the following
formula—
E
D F
×
where—
D is the amount calculated under
paragraph (b);
E is the consumer price index
number for the reference period
ending on 30 June immediately
preceding the financial year for
which the determined amount is
being calculated;
F is the consumer price index
number for the financial year
ending on 30 June 2016;
consumer price index number means the
all groups consumer price index
number for Melbourne in original terms
published by the Australian Bureau of
Statistics;".
-- 44 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
42
Authorised by the Chief Parliamentary Counsel
Part 7—Amendment of the Payroll
Tax Act 2007
Division 1—Threshold amounts and
deductible amounts
32 Designated group employers
(1) In section 80(2)(a) and (3)(a) of the Payroll
Tax Act 2007, for "$550 000" substitute
"the threshold amount specified in the definition
of TA or threshold amount in clause 1 of
Schedule 1 for that financial year".
(2) In section 80(2)(b) and (3)(b) of the Payroll
Tax Act 2007, for "that amount" substitute
"the threshold amount specified in the definition
of TA or threshold amount in clause 1 of
Schedule 1 for the current financial year".
33 Registration
(1) In section 86(1) of the Payroll Tax Act 2007—
(a) for "$10 576 per week" substitute
"the weekly threshold amount";
(b) for "$9615 per week" substitute "the weekly
threshold amount".
(2) After section 86(5) of the Payroll Tax Act 2007
insert—
"(6) In this section, weekly threshold amount
means—
(a) for the financial year commencing on
1 July 2016—$11 057 per week;
(b) for the financial year commencing on
1 July 2017—$11 538 per week;
-- 45 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
43
Authorised by the Chief Parliamentary Counsel
(c) for the financial year commencing on
1 July 2018—$12 019 per week;
(d) for the financial year commencing on
1 July 2019 and each subsequent
financial year—$12 500 per week.".
34 Amendment of Schedule 1
In Schedule 1 to the Payroll Tax Act 2007, for—
"Sections 8, 29(5), 82"
substitute—
"Sections 8, 29(5), 80, 82".
35 Definitions in Schedule 1
In clause 1 of Schedule 1 to the Payroll Tax
Act 2007, for the definition of TA or threshold
amount substitute—
"TA or threshold amount means—
(a) for the financial year commencing on
1 July 2015—$550 000;
(b) for the financial year commencing on
1 July 2016—$575 000;
(c) for the financial year commencing on
1 July 2017—$600 000;
(d) for the financial year commencing on
1 July 2018—$625 000;
(e) for the financial year commencing on
1 July 2019 and each subsequent
financial year—$650 000.".
-- 46 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
44
Authorised by the Chief Parliamentary Counsel
36 New Division 1AA of Part 2 of Schedule 2 inserted
After the heading to Part 2 of Schedule 2 to the
Payroll Tax Act 2007 insert—
"Division 1AA—Definition
1A Definition
In this Part—
base deductible amount means—
(a) for a month in the financial year
commencing on 1 July 2016—
$47 916;
(b) for a month in the financial year
commencing on 1 July 2017—
$50 000;
(c) for a month in the financial year
commencing on 1 July 2018—
$52 083;
(d) for a month in the financial year
commencing on 1 July 2019 and
each subsequent financial year—
$54 166.".
37 Deductible amount for employer who does not pay
interstate wages
In clause 5(1) of Schedule 2 to the Payroll Tax
Act 2007, for "$45 833" substitute "the base
deductible amount".
38 Deductible amount for employer who pays interstate
wages
In the formula in clause 6(3) of Schedule 2 to the
Payroll Tax Act 2007—
(a) for "$45 833" substitute "BDA";
-- 47 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
45
Authorised by the Chief Parliamentary Counsel
(b) for "where—" substitute—
"where—
BDA is the base deductible amount;".
39 Deductible amount for groups that do not pay
interstate wages
In clause 9(1) of Schedule 2 to the Payroll Tax
Act 2007, for "$45 833" substitute "the base
deductible amount".
40 Deductible amount for groups that pay interstate
wages
In the formula in clause 10(3) of Schedule 2 to the
Payroll Tax Act 2007—
(a) for "$45 833" substitute "BDA";
(b) for "where—" substitute—
"where—
BDA is the base deductible amount;".
Division 2—Exemption for apprentices and trainees
41 Amounts taken to be wages
In section 40(2) of the Payroll Tax Act 2007,
after "clause 16" insert "or 16A".
42 Definitions in Schedule 2
In clause 13 of Schedule 2 to the Payroll Tax
Act 2007—
(a) insert the following definitions—
"approved training scheme has the same
meaning as in section 5.5.1 of the
Education and Training Reform
Act 2006;
re-employed apprentice or trainee has the
meaning given by clause 16A(2);
-- 48 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
46
Authorised by the Chief Parliamentary Counsel
training contract has the same meaning as in
section 1.1.3(1) of the Education and
Training Reform Act 2006.";
(b) in the definition of school council,
for "2006." substitute "2006;".
43 New clause 16A inserted in Schedule 2
After clause 16 of Schedule 2 to the Payroll Tax
Act 2007 insert—
"16A Wages paid to person who continues
training under approved training scheme
(1) Wages are exempt wages if they are paid or
payable to a re-employed apprentice or
trainee.
(2) A re-employed apprentice or trainee is a
person—
(a) who is employed by an employer
(the current employer) as an apprentice
or trainee under a training contract in
accordance with the requirements of an
approved training scheme; and
(b) who commenced employment with the
current employer as an apprentice or
trainee under a training contract on or
after 1 July 2016; and
(c) who was previously employed by
another employer (the previous
employer) as an apprentice or trainee
under a training contract in accordance
with the requirements of—
(i) the approved training scheme
referred to in paragraph (a); or
-- 49 of 61 --
Part 7—Amendment of the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
47
Authorised by the Chief Parliamentary Counsel
(ii) an approved training scheme
that has been superseded by the
training scheme referred to in
paragraph (a); and
(d) whose employment with the previous
employer ceased before the person had
completed the requirements of the
approved training scheme referred to in
paragraph (c)(i) or (ii).
(3) Despite subsection (1), wages paid or
payable to a re-employed apprentice or
trainee are not exempt wages if the current
employer and the previous employer are
members of a group.".
-- 50 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
48
Authorised by the Chief Parliamentary Counsel
Part 8—Amendment of the Planning and
Environment Act 1987
Division 1—Consumer price index adjustments
44 CPI adjusted amount
In section 96R(1) of the Planning and
Environment Act 1987—
(a) in paragraph (b) of the definition of "T",
after "amount" insert "determined in
accordance with this section";
(b) for the definitions of "A" and "B"
substitute—
'A is the sum of the consumer price index
numbers for the consecutive reference
periods in the period—
(a) commencing on 1 January in the
financial year 2 years earlier than
the financial year in respect of
which the CPI adjusted amount is
being determined; and
(b) ending on the next following
31 December in the financial
year immediately preceding the
financial year in respect of which
the CPI adjusted amount is being
determined—
last published by the Australian Bureau
of Statistics as at 15 April immediately
preceding the financial year in respect
of which the CPI adjusted amount is
being determined;
-- 51 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
49
Authorised by the Chief Parliamentary Counsel
B is the sum of the consumer price index
numbers for the consecutive reference
periods in the period—
(a) commencing on 1 January in the
financial year 3 years earlier than
the financial year in respect of
which the CPI adjusted amount is
being determined; and
(b) ending on the next following
31 December in the financial year
2 years earlier than the financial
year in respect of which the CPI
adjusted amount is being
determined.
Example
In the case of a determination of the CPI adjusted
amount for the financial year beginning on
1 July 2018 the variables are as follows—
• "T" is the CPI adjusted amount for the financial
year beginning on 1 July 2017;
• "A" is the sum of the consumer price index
numbers for the consecutive reference periods in
the period commencing on 1 January 2017 and
ending on 31 December 2017;
• "B" is the sum of the consumer price index
numbers for the consecutive reference periods in
the period commencing on 1 January 2016 and
ending on 31 December 2016.'.
45 Indexation of threshold amount for excluded
building work
In clause 3(1) of Schedule 1 to the Planning and
Environment Act 1987—
(a) in the definition of "PTA", after "amount"
insert "determined in accordance with this
clause";
-- 52 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
50
Authorised by the Chief Parliamentary Counsel
(b) for the definitions of "A" and "B"
substitute—
'A is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 2 years earlier than
the financial year in respect of
which the threshold amount is
being determined; and
(b) each of the reference periods
(other than the last) in the
financial year immediately
preceding the financial year in
respect of which the threshold
amount is being determined;
B is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 3 years earlier than
the financial year in respect of
which the threshold amount is
being determined; and
(b) each of the reference periods
(other than the last) in the
financial year 2 years earlier than
the financial year in respect of
which the threshold amount is
being determined.
Example
In the case that the reference periods are the quarterly
periods of a financial year, the variables for the
determination of the threshold amount for the
2016/2017 financial year are as follows—
• "PTA" is the threshold amount that applied in the
2015/2016 financial year;
-- 53 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
51
Authorised by the Chief Parliamentary Counsel
• "A" is the sum of the consumer price index
numbers for the June quarter in the 2014/2015
financial year and the September, December and
March quarters in the 2015/2016 financial year;
• "B" is the sum of the consumer price index
numbers for the June quarter in the 2013/2014
financial year and the September, December and
March quarters in the 2014/2015 financial year.'.
46 Maximum adjusted growth areas infrastructure
contribution
In clause 4(1) of Schedule 1 to the Planning and
Environment Act 1987—
(a) in the definition of "PC", after
"section 201SG(5)" insert "determined in
accordance with this clause";
(b) for the definitions of "A" and "B"
substitute—
'A is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 2 years earlier than
the financial year in respect of
which the maximum adjusted
contribution is being determined;
and
(b) each of the reference periods
(other than the last) in the
financial year immediately
preceding the financial year in
respect of which the maximum
adjusted contribution is being
determined;
-- 54 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
52
Authorised by the Chief Parliamentary Counsel
B is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 3 years earlier than
the financial year in respect of
which the maximum adjusted
contribution is being determined;
and
(b) each of the reference periods
(other than the last) in the
financial year 2 years earlier than
the financial year in respect of
which the maximum adjusted
contribution is being determined.
Example
In the case that the reference periods are the quarterly
periods of a financial year, the variables for the
determination of the maximum adjusted contribution
for the 2016/2017 financial year are as follows—
• "PC" is the amount of the adjusted contribution
for that type of land for the 2015/2016 financial
year;
• "A" is the sum of the consumer price index
numbers for the June quarter in the 2014/2015
financial year and the September, December and
March quarters in the 2015/2016 financial year;
• "B" is the sum of the consumer price index
numbers for the June quarter in the 2013/2014
financial year and the September, December and
March quarters in the 2014/2015 financial year.'.
47 Adjusted deferred amount of growth areas
infrastructure contribution
In clause 5(1) of Schedule 1 to the Planning and
Environment Act 1987—
(a) in the definition of "PDA", after
"contribution" insert "determined in
accordance with this clause";
-- 55 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
53
Authorised by the Chief Parliamentary Counsel
(b) for the definitions of "A" and "B"
substitute—
'A is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 2 years earlier than
the financial year in respect of
which the adjusted deferred
amount is being determined; and
(b) each of the reference periods
(other than the last) in the
financial year immediately
preceding the financial year in
respect of which the adjusted
deferred amount is being
determined;
B is the sum of the consumer price index
numbers for—
(a) the last reference period in the
financial year 3 years earlier than
the financial year in respect of
which the adjusted deferred
amount is being determined; and
(b) each of the reference periods
(other than the last) in the
financial year 2 years earlier than
the financial year in respect of
which the adjusted deferred
amount is being determined.
Example
In the case that the reference periods are the quarterly
periods of a financial year, the variables for the
determination of the adjusted deferred amount for the
2016/2017 financial year are as follows—
• "PDA" is the adjusted deferred amount of the
contribution for the 2015/2016 financial year;
-- 56 of 61 --
Part 8—Amendment of the Planning and Environment Act 1987
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
54
Authorised by the Chief Parliamentary Counsel
• "A" is the sum of the consumer price index
numbers for the June quarter in the 2014/2015
financial year and the September, December and
March quarters in the 2015/2016 financial year;
• "B" is the sum of the consumer price index
numbers for the June quarter in the 2013/2014
financial year and the September, December and
March quarters in the 2014/2015 financial year.'.
Division 2—Statute law revision
48 Statute law revision
In section 201SY(a) of the Planning and
Environment Act 1987, for "the the"
substitute "the".
-- 57 of 61 --
Part 9—Amendment of the State Taxation Acts Further Amendment Act
2015
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
55
Authorised by the Chief Parliamentary Counsel
Part 9—Amendment of the State Taxation
Acts Further Amendment Act 2015
49 New clauses 13A and 13B inserted in Schedule 2
In section 5 of the State Taxation Acts Further
Amendment Act 2015, proposed clause 13A(3)
of Schedule 2 to the Payroll Tax Act 2007 is
repealed.
50 Clause 16 of Schedule 2 substituted
In section 6 of the State Taxation Acts Further
Amendment Act 2015, in proposed clause 16 of
Schedule 2 to the Payroll Tax Act 2007, omit
"under Part 5.5 of the Education and Training
Reform Act 2006.".
-- 58 of 61 --
Part 10—Amendment of the Taxation Administration Act 1997
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
56
Authorised by the Chief Parliamentary Counsel
Part 10—Amendment of the Taxation
Administration Act 1997
51 What happens if Commissioner refuses a refund?
In section 21(1)(b)(i) of the Taxation
Administration Act 1997—
(a) in sub-subparagraph (B), for
"section 20(d)(i)" substitute
"section 20A(1)";
(b) in sub-subparagraph (C), for
"section 20(d)(i)" substitute
"section 20A(4)".
52 Permitted disclosures to particular persons or for
particular purposes
After section 92(1)(e)(vf) of the Taxation
Administration Act 1997 insert—
"(vfa) a Council that has been directed by the
Minister under section 21(2) of the Fire
Services Property Levy Act 2012 to be a
collection agency in respect of non-rateable
leviable land that is not located within the
boundaries of a municipal district; or".
-- 59 of 61 --
Part 11—Repeal of amending Act
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
57
Authorised by the Chief Parliamentary Counsel
Part 11—Repeal of amending Act
53 Repeal of amending Act
This Act is repealed on 1 January 2018.
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).
═══════════════
-- 60 of 61 --
Endnotes
State Taxation and Other Acts Amendment Act 2016
No. 40 of 2016
58
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: 3 May 2016
Legislative Council: 26 May 2016
The long title for the Bill for this Act was "A Bill for an Act to amend
the Duties Act 2000, the Fire Services Property Levy Act 2012, the
First Home Owner Grant Act 2000, the Land Tax Act 2005, the
Mineral Resources (Sustainable Development) Act 1990, the Payroll
Tax Act 2007, the Planning and Environment Act 1987, the State
Taxation Acts Further Amendment Act 2015 and the Taxation
Administration Act 1997, and for other purposes."
-- 61 of 61 --