State Taxation Acts Amendment Act 2010

i State Taxation Acts Amendment Act 2010 No. 36 of 2010 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1 Purposes 1 2 Commencement 2 PART 2—DUTIES ACT 2000 4 Division 1—On-line duty payment system 4 3 Definition of on-line duty payment system 4 4 Lodging written instrument or statement with Commissioner 4 5 Interim payment of duty 5 6 Statute law revision 5 7 Stamping of instruments 5 8 New section 255A inserted 5 255A Authentication of payment of duty using on-line duty payment system 5 Division 2—Dutiable value threshold for motor vehicle duty 6 9 What is the rate of duty? 6 Division 3—Eligible pensioner exemptions or concessions affected by change to first home bonus and regional bonus 6 10 Election to receive eligible pensioner exemption/concession or additional first home owner grant 6 PART 3—FIRST HOME OWNER GRANT ACT 2000 8 11 Amendments to amount of grant 8 PART 4—LAND TAX ACT 2005 10 12 Land tax exemption 10 78A Exemption of land under construction for certain exempt uses 10 PART 5—PAYROLL TAX ACT 2007 13 13 Reduction in payroll tax rate 13 -- 1 of 21 -- Section Page ii PART 6—TAXATION ADMINISTRATION ACT 1997 14 14 Prohibition on certain disclosures of information by tax officers 14 PART 7—REPEAL OF REDUNDANT ACTS AND CONSEQUENTIAL AMENDMENTS 15 Division 1—Repeal of redundant Acts 15 15 Financial Institutions Duty Act 1982 repealed 15 16 Debits Tax Act 1990 repealed 15 17 Business Franchise (Tobacco) Act 1974 repealed 16 Division 2—Consequential amendments 16 18 Amendment of the Credit Act 1984 16 19 Amendment of the Taxation Administration Act 1997 16 20 Amendment of the Taxation (Interest on Overpayments) Act 1986 17 21 Amendment of the Victorian Civil and Administrative Tribunal Act 1998 17 PART 8—REPEAL OF AMENDING ACT 18 22 Repeal of amending Act 18 ═══════════════ ENDNOTES 19 -- 2 of 21 -- 1 State Taxation Acts Amendment Act 2010 † No. 36 of 2010 [Assented to 15 June 2010] The Parliament of Victoria enacts: PART 1—PRELIMINARY 1 Purposes The purposes of this Act are— (a) to amend the Duties Act 2000— (i) to provide for the payment of duty in respect of dutiable transactions using an on-line duty payment system; and Victoria -- 3 of 21 -- Part 1—Preliminary State Taxation Acts Amendment Act 2010 No. 36 of 2010 2 (ii) to amend the dutiable value threshold for motor vehicle duty; and (iii) to make other amendments consequential on amendments to the First Home Owner Grant Act 2000; and (b) to amend the First Home Owner Grant Act 2000 in relation to the first home bonus and the regional bonus; and (c) to amend the Land Tax Act 2005 in relation to exemptions relating to the construction of residential care facilities, supported residential services, residential services and retirement villages; and (d) to amend the Payroll Tax Act 2007 to reduce the payroll tax rate; and (e) to amend the Taxation Administration Act 1997 to remove the power to authorise by regulation recipients of information obtained under or in relation to the administration of a taxation law; and (f) to repeal— (i) the Business Franchise (Tobacco) Act 1974; and (ii) the Debits Tax Act 1990; and (iii) the Financial Institutions Duty Act 1982— and make consequential amendments to other Acts. 2 Commencement (1) This Part, Division 1 of Part 2 and Parts 6, 7 and 8 come into operation on the day after the day on which this Act receives the Royal Assent. s. 2 -- 4 of 21 -- Part 1—Preliminary State Taxation Acts Amendment Act 2010 No. 36 of 2010 3 (2) Divisions 2 and 3 of Part 2, and Parts 3 and 5 come into operation on 1 July 2010. (3) Part 4 comes into operation on 1 January 2011. __________________ s. 2 -- 5 of 21 -- Part 2—Duties Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 4 PART 2—DUTIES ACT 2000 Division 1—On-line duty payment system 3 Definition of on-line duty payment system In section 3(1) of the Duties Act 2000 insert the following definition— "on-line duty payment system means a system for the electronic payment of duty authorised by the Commissioner under a taxation law;". 4 Lodging written instrument or statement with Commissioner After section 15(2) of the Duties Act 2000 insert— "(3) A written instrument that effects a dutiable transaction or a written statement made in compliance with section 14 is taken to be lodged with the Commissioner if— (a) the on-line duty payment system is used in respect of the dutiable transaction effected or evidenced by the instrument or written statement; and (b) it is determined that— (i) duty is payable on the dutiable transaction and the duty is paid in full; or s. 3 See: Act No. 79/2000. Reprint No. 7 as at 7 July 2009 and amending Act Nos 84/2008, 4/2009, 69/2009, 1/2010, 6/2010 and 11/2010. LawToday: www. legislation. vic.gov.au -- 6 of 21 -- Part 2—Duties Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 5 (ii) no duty is payable on the dutiable transaction.". 5 Interim payment of duty After section 30(7) of the Duties Act 2000 insert— "(8) This section does not apply in respect of a dutiable transaction if duty is paid using the on-line duty payment system.". 6 Statute law revision Section 47(1)(d) of the Duties Act 2000 is repealed. 7 Stamping of instruments At the end of section 255 of the Duties Act 2000 insert— "(2) Subsection (1) does not apply to an instrument if authentication of the payment of duty is provided in a manner approved by the Commissioner under section 255A.". 8 New section 255A inserted After section 255 of the Duties Act 2000 insert— "255A Authentication of payment of duty using on-line duty payment system (1) The Commissioner may authenticate in any manner approved by the Commissioner that the on-line duty payment system has been used in respect of a dutiable transaction and— (a) the duty payable on the dutiable transaction has been paid in full; or (b) no duty has been determined to be payable on the dutiable transaction. s. 5 -- 7 of 21 -- Part 2—Duties Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 6 (2) If the Commissioner authenticates under subsection (1) that duty has been paid or that no duty has been determined to be payable, the instrument that effects or evidences the dutiable transaction is taken to be duly stamped for the purposes of this Act.". Division 2—Dutiable value threshold for motor vehicle duty 9 What is the rate of duty? (1) In section 218(1) of the Duties Act 2000 for "$57 009" (wherever occurring) substitute "the luxury car tax threshold". (2) After section 218(4) of the Duties Act 2000 insert— "(5) In this section luxury car tax threshold has the same meaning as it has in section 25-1 of the A New Tax System (Luxury Car Tax) Act 1999 of the Commonwealth as if section 25-1(4) of that Act did not apply.". Division 3—Eligible pensioner exemptions or concessions affected by change to first home bonus and regional bonus 10 Election to receive eligible pensioner exemption/concession or additional first home owner grant In section 60A of the Duties Act 2000— (a) in subsection (1)(b)— (i) in subparagraph (ii) for "both)." substitute "both); or"; (ii) after subparagraph (ii) insert— "(iii) section 18(2AB) or 18(2C) of that Act (or both)."; s. 9 -- 8 of 21 -- Part 2—Duties Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 7 (b) in subsection (2)(b)— (i) in subparagraph (ii) for "requires)." substitute "requires); or"; (ii) after subparagraph (ii) insert— "(iii) section 18(2AB) or 18(2C) of that Act (or both, as the case requires)."; (c) in subsection (3)(b) for "requires)—" substitute "requires); or"; (d) after subsection (3)(b) insert— "(c) section 18(2AB) or 18(2C) (or both, as the case requires)—". __________________ s. 10 -- 9 of 21 -- Part 3—First Home Owner Grant Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 8 PART 3—FIRST HOME OWNER GRANT ACT 2000 11 Amendments to amount of grant (1) In sections 18(2AA) and 18(2B) of the First Home Owner Grant Act 2000 for "(4)" substitute "(4A)". (2) After section 18(2AA) of the First Home Owner Grant Act 2000 insert— "(2AB) Subject to subsections (3) and (4B), if the consideration for the eligible transaction does not exceed $600 000 an additional amount of $13 000 is payable if— (a) the commencement date of the eligible transaction is on or after 1 July 2010 and before 1 July 2011; and (b) the eligible transaction is a contract for the purchase of a new residential premises or an eligible transaction referred to in section 13(1)(b) or 13(1)(c).". (3) After section 18(2B) of the First Home Owner Grant Act 2000 insert— "(2C) Subject to subsections (3) and (4B), an additional amount of $6500 is payable (in addition to any amount payable under subsection (1) or (2AB)) if— (a) the consideration for the eligible transaction does not exceed $600 000; and (b) the commencement date of the eligible transaction is on or after 1 July 2010 and before 1 July 2011; and s. 11 See: Act No. 5/2000. Reprint No. 2 as at 26 September 2007 and amending Act Nos 12/2008, 31/2008, 84/2008, 4/2009, 37/2009 and 83/2009. LawToday: www. legislation. vic.gov.au -- 10 of 21 -- Part 3—First Home Owner Grant Act 2000 State Taxation Acts Amendment Act 2010 No. 36 of 2010 9 (c) the eligible transaction is a contract for the purchase of new residential premises or an eligible transaction referred to in section 13(1)(b) or 13(1)(c); and (d) the land on which the premises or home is or will be situated is wholly in regional Victoria.". (4) In section 18(3) of the First Home Owner Grant Act 2000 for "(2A) or (2B)" substitute "(2AB), (2A), (2B) or (2C)". (5) After section 18(4A) of the First Home Owner Grant Act 2000 insert— "(4B) Subsection (2AB) or (2C) also does not apply if the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made before 1 July 2010 (the earlier contract), and the earlier contract was— (a) a contract for the purchase of the same home; or (b) a comprehensive home building contract to build the same or a substantially similar home.". (6) In section 18(5) and (6) of the First Home Owner Grant Act 2000 for "(2AA), (2A) or (2B)" substitute "(2AA), (2AB), (2A), (2B) or (2C)". __________________ s. 11 -- 11 of 21 -- Part 4—Land Tax Act 2005 State Taxation Acts Amendment Act 2010 No. 36 of 2010 10 PART 4—LAND TAX ACT 2005 12 Land tax exemption After section 78 of the Land Tax Act 2005 insert— "78A Exemption of land under construction for certain exempt uses (1) Land is exempt land if the Commissioner is satisfied that any of the following is being constructed on that land— (a) a residential care facility; or (b) a supported residential service; or (c) a residential service; or (d) a retirement village. (2) An exemption under this section will apply in respect of the land until the earlier of— (a) the date of completion of construction of the residential care facility, supported residential service, residential service or retirement village on the land; or (b) the expiry of 2 tax years following the date of commencement of construction. (3) For the purposes of this section, the date of commencement of construction is— (a) if a building permit for the construction of a residential care facility, supported residential service, residential service or retirement village on the land was issued on or before 31 December 2010 and construction is not completed at that date—31 December 2010; or s. 12 See: Act No. 88/2005. Reprint No. 3 as at 20 August 2009 and amending Act Nos 46/2008, 4/2009, 83/2009 and 94/2009. LawToday: www. legislation. vic.gov.au -- 12 of 21 -- Part 4—Land Tax Act 2005 State Taxation Acts Amendment Act 2010 No. 36 of 2010 11 (b) in any other case—the date of issue of the building permit for the construction of the residential care facility, supported residential service, residential service or retirement village on the land. (4) For the purposes of this section, the date of completion of construction is— (a) if the building permit for the construction states that an occupancy permit is required—the date of issue of the occupancy permit under the Building Act 1993; or (b) in any other case—the date of issue of the certificate of final inspection under that Act. (5) If a building permit for the construction of a residential care facility, supported residential service, residential service or retirement village lapses before the applicable date under subsection (2) and a subsequent building permit is issued in respect of that construction, the date of issue of the building permit referred to in subsection (3) is the date of issue of the first building permit. (6) To obtain an exemption from land tax under this section, the owner of the land must— (a) apply to the Commissioner for the exemption; and (b) give to the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is exempt under this section. s. 12 -- 13 of 21 -- Part 4—Land Tax Act 2005 State Taxation Acts Amendment Act 2010 No. 36 of 2010 12 (7) If the Commissioner is satisfied that only a part of land is being used for the construction of a residential care facility, supported residential service, residential service or retirement village— (a) land tax is assessable on the remaining part of the land, unless another exemption applies to that part; and (b) section 22 applies, if necessary, to the land. (8) In this section— residential care facility has the same meaning as in section 76; residential service has the same meaning as in section 76A; retirement village has the same meaning as in section 78; supported residential service has the same meaning as in section 76.". __________________ s. 12 -- 14 of 21 -- Part 5—Payroll Tax Act 2007 State Taxation Acts Amendment Act 2010 No. 36 of 2010 13 PART 5—PAYROLL TAX ACT 2007 13 Reduction in payroll tax rate (1) In clause 1 of Schedule 1 to the Payroll Tax Act 2007 in the definition of R— (a) in paragraph (b), for "in any subsequent year" substitute "2009"; (b) after paragraph (b) insert— "(c) for the financial year commencing on 1 July 2010 or 1 July in any subsequent year—4·90%;". (2) In clause 2 of Schedule 2 to the Payroll Tax Act 2007— (a) in paragraph (b), for "—4·95%." substitute "and before 1 July 2010—4·95%;"; (b) after paragraph (b) insert— "(c) for wages paid or payable on or after 1 July 2010—4·90%.". __________________ s. 13 See: Act No. 26/2007 and amending Act Nos 26/2007, 12/2008, 31/2008, 79/2008, 4/2009 and 83/2009. LawToday: www. legislation. vic.gov.au -- 15 of 21 -- Part 6—Taxation Administration Act 1997 State Taxation Acts Amendment Act 2010 No. 36 of 2010 14 PART 6—TAXATION ADMINISTRATION ACT 1997 14 Prohibition on certain disclosures of information by tax officers (1) In section 92(1)(e)(vi) of the Taxation Administration Act 1997, for "Authority; or" substitute "Authority.". (2) Section 92(1)(e)(vii) of the Taxation Administration Act 1997 is repealed. __________________ s. 14 See: Act No. 40/1997. Reprint No. 4 as at 29 February 2008 and amending Act Nos 84/2008, 83/2009, 86/2009 and 6/2010. LawToday: www. legislation. vic.gov.au -- 16 of 21 -- Part 7—Repeal of Redundant Acts and Consequential Amendments State Taxation Acts Amendment Act 2010 No. 36 of 2010 15 PART 7—REPEAL OF REDUNDANT ACTS AND CONSEQUENTIAL AMENDMENTS Division 1—Repeal of redundant Acts 15 Financial Institutions Duty Act 1982 repealed The Financial Institutions Duty Act 1982 is repealed. 16 Debits Tax Act 1990 repealed The Debits Tax Act 1990 is repealed. See: Act No. 9850. Reprint No. 4 as at 9 December 1999 and amending Act Nos 34/1999, 6/2000 and 24/2006. LawToday: www. legislation. vic.gov.au s. 15 See: Act No. 78/1990. Reprint No. 2 as at 18 March 1999 and amending Act Nos 34/1999, 47/1999, 36/2005 and 24/2006. LawToday: www. legislation. vic.gov.au -- 17 of 21 -- Part 7—Repeal of Redundant Acts and Consequential Amendments State Taxation Acts Amendment Act 2010 No. 36 of 2010 16 17 Business Franchise (Tobacco) Act 1974 repealed The Business Franchise (Tobacco) Act 1974 is repealed. Division 2—Consequential amendments 18 Amendment of the Credit Act 1984 Section 166 of the Credit Act 1984 is repealed. 19 Amendment of the Taxation Administration Act 1997 (1) Section 4(b) and (c) of the Taxation Administration Act 1997 are repealed. (2) Section 96(1)(b) and (c) of the Taxation Administration Act 1997 are repealed. (3) Section 96(3) and (4) of the Taxation Administration Act 1997 are repealed. See: Act No. 8597. Reprint No. 5 as at 19 March 1998 and amending Act Nos 46/1998, 52/1998, 68/2009 and 83/2009. LawToday: www. legislation. vic.gov.au s. 17 See: Act No. 10097. Reprint No. 4 as at 23 February 2007 and amending Act Nos 69/2006, 2/2008, 68/2009 and 11/2010. LawToday: www. legislation. vic.gov.au -- 18 of 21 -- Part 7—Repeal of Redundant Acts and Consequential Amendments State Taxation Acts Amendment Act 2010 No. 36 of 2010 17 20 Amendment of the Taxation (Interest on Overpayments) Act 1986 (1) In section 3(1) of the Taxation (Interest on Overpayments) Act 1986, for the definition of objection substitute— "objection means an objection under section 24A of the Land Tax Act 1958;". (2) In section 5(2) of the Taxation (Interest on Overpayments) Act 1986, for paragraph (a) of the definition of relevant Act substitute— "(a) the Business Franchise (Petroleum Products) Act 1979;". (3) In section 5(2) of the Taxation (Interest on Overpayments) Act 1986, paragraph (a) of the definition of secrecy provisions is repealed. 21 Amendment of the Victorian Civil and Administrative Tribunal Act 1998 (1) In clause 2 of Part 1 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998, for paragraph (a) of the definition of taxing Act substitute— "(a) Business Franchise (Petroleum Products) Act 1979;". (2) In clause 2 of Part 1 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998, paragraphs (b) and (c) of the definition of taxing Act are repealed. __________________ See: Act No. 35/1986. Reprint No. 1 as at 19 March 1998 and amending Act Nos 47/1999, 79/2000 and 36/2005. LawToday: www. legislation. vic.gov.au s. 20 See: Act No. 53/1998. Reprint No. 6 as at 1 January 2009 and amending Act Nos 46/2008, 76/2008, 78/2008, 6/2009, 14/2009, 21/2009, 68/2009, 69/2009, 6/2010, 11/2010, 13/2010 and 16/2010. LawToday: www. legislation. vic.gov.au -- 19 of 21 -- Part 8—Repeal of Amending Act State Taxation Acts Amendment Act 2010 No. 36 of 2010 18 PART 8—REPEAL OF AMENDING ACT 22 Repeal of amending Act This Act is repealed on 1 January 2012. Note The repeal of this Act does not affect the continuing operation of the amendments or repeals made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═══════════════ s. 22 -- 20 of 21 -- State Taxation Acts Amendment Act 2010 No. 36 of 2010 19 ENDNOTES † Minister's second reading speech— Legislative Assembly: 6 May 2010 Legislative Council: 27 May 2010 The long title for the Bill for this Act was "A Bill for an Act to amend the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005, the Payroll Tax Act 2007 and the Taxation Administration Act 1997 and to repeal the Business Franchise (Tobacco) Act 1974, the Debits Tax Act 1990 and the Financial Institutions Duty Act 1982 and for other purposes." Endnotes -- 21 of 21 --