State Taxation Acts Further Amendment Act 2009
i
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
TABLE OF PROVISIONS
Section Page
PART 1—PRELIMINARY 1
1 Purpose 1
2 Commencement 2
PART 2—FIRST HOME OWNER GRANT ACT 2000 4
3 Eligible transaction 4
PART 3—LAND TAX ACT 2005 6
Division 1—Amendment relating to implied or constructive trusts 6
4 Definitions 6
5 New Division 2B inserted 6
Division 2B—Land held on implied or constructive trust 6
46L Land held on implied or constructive trust 6
46M Trustee's right to reimbursement under implied trust or
constructive trust 7
Division 2—General amendments 7
6 Who is the owner of land? 7
7 New section 16A 8
16A Transfer of land for no consideration 8
8 Certain long-term lessees of private land 9
9 General land tax surcharge for trusts 9
10 Land tax for PPR land if nominated PPR beneficiary 10
11 Unoccupied land subsequently used as principal residence 10
12 Crown land 10
13 New heading to Division 1 of Part 7 11
14 New section 104A 11
104A Notice of errors in notice of assessment of land tax 11
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Section Page
ii
PART 4—PAYROLL TAX ACT 2007 12
15 Definitions 12
16 Taxable wages—New sections 10 to 11C 12
10 What are taxable wages? 12
11 Wages that are taxable in this jurisdiction 13
11A Jurisdiction in which employee is based 16
11B Jurisdiction in which employer is based 17
11C Place and date of payment of wages 18
17 What are wages? 20
18 Inclusion of shares and options granted to directors as wages 20
19 Repeal of section 25 20
20 Place where wages are payable 20
21 Part 4 Exemptions 21
Division 9—Services outside Australia 21
66A Wages paid or payable for or in relation to services
performed in other countries 21
22 Transitional provisions 21
16 Application of amendments 21
PART 5—TAXATION ADMINISTRATION ACT 1997 23
Division 1—Amendments relating to recognised jurisdictions 23
23 Purpose 23
24 Definitions 23
25 Meaning of taxation laws 24
26 Relationship with other taxation laws 24
27 Searches without a warrant 24
28 New Division 2A inserted in Part 9 24
Division 2A—Investigations for the purposes of recognised
laws 24
90A Investigations by and on behalf of corresponding
Commissioner 24
90B Exercise of functions under Division 2 25
90C Transfer of documents or things seized under
investigations for recognised jurisdiction 26
90D Investigations by Commissioner in another jurisdiction 27
90E Certificate of authority 27
29 Disclosures to a recognised jurisdiction and national regulators 28
Division 2—Amendments relating to notification defaults 28
30 Definitions 28
31 Penalty tax for notification defaults 29
32 Amount of penalty tax for notification default 29
33 Reduction in penalty tax 30
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Section Page
iii
34 Increase in penalty tax for concealment 30
35 New clause inserted in Schedule 1 31
17 Penalty tax for notification defaults 31
Division 3—General amendments 31
36 Permitted disclosures to particular persons 31
37 Service of process by Commissioner 32
PART 6—REPEAL AND CONSEQUENTIAL AMENDMENTS 33
38 Repeal of Taxation (Reciprocal Powers) Act 1987 33
39 Consequential amendment to Accident Compensation
Act 1985 33
40 Consequential amendment to Business Franchise (Tobacco)
Act 1974 33
41 Consequential amendment to Unclaimed Money Act 2008 34
PART 7—REPEAL OF AMENDING ACT 35
42 Repeal of amending Act 35
═══════════════
ENDNOTES 36
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1
State Taxation Acts Further
Amendment Act 2009 †
No. 83 of 2009
[Assented to 8 December 2009]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1 Purpose
The main purposes of this Act are—
(a) to amend the First Home Owner Grant Act
2000 to impose a cap on the value of certain
transactions that will be eligible for the First
Home Owner Grant; and
Victoria
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Part 1—Preliminary
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
2
(b) to amend the Land Tax Act 2005 in relation
to—
(i) leases of Crown land; and
(ii) trusts; and
(iii) disposals of land for no consideration;
and
(iv) notification of errors in assessment
notices; and
(c) to amend the Payroll Tax Act 2007 to
clarify when wages are taxable in this
jurisdiction; and
(d) to amend the Taxation Administration Act
1997—
(i) to re-enact and modernise the law
relating to the reciprocal enforcement of
taxation laws; and
(ii) to provide for penalties for notification
defaults; and
(iii) to otherwise improve the operation of
that Act; and
(e) to repeal the Taxation (Reciprocal Powers)
Act 1987; and
(f) to make consequential amendments to other
Acts.
2 Commencement
(1) This Part and Part 7 come into operation on the
day on which this Act receives the Royal Assent.
(2) Part 2 comes into operation on 1 January 2010.
(3) Division 1 of Part 3 is deemed to have come into
operation on 1 January 2006.
s. 2
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Part 1—Preliminary
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
3
(4) Division 2 of Part 3 and Divisions 2 and 3 of
Part 5 come into operation on the day after the day
on which this Act receives the Royal Assent.
(5) Part 4 is deemed to have come into operation on
1 July 2009.
(6) Subject to subsection (7), Division 1 of Part 5 and
Part 6 come into operation on a day to be
proclaimed.
(7) If a provision referred to in subsection (6) has not
come into operation before 1 October 2010, it
comes into operation on that day.
__________________
s. 2
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Part 2—First Home Owner Grant Act 2000
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
4
PART 2—FIRST HOME OWNER GRANT ACT 2000
3 Eligible transaction
(1) In section 13(1) of the First Home Owner Grant
Act 2000, for "An eligible transaction" substitute
"Subject to subsection (1A), an eligible
transaction".
(2) After section 13(1) of the First Home Owner
Grant Act 2000 insert—
"(1A) The consideration for an eligible transaction
with a commencement date that is on or after
1 January 2010 must not exceed $750 000.".
(3) After section 13(8) of the First Home Owner
Grant Act 2000 insert—
"(9) Subsection (1A) does not apply in relation to
an eligible transaction relating to a home that
is on, or to be built on, land referred to in
section 65 or 66 of the Land Tax Act 2005.
(10) Subsection (1A) does not apply in relation to
an eligible transaction relating to a home that
is on, or to be built on, land referred to in
section 67(1)(a) of the Land Tax Act 2005
if—
(a) the applicant—
(i) is, or, when the contract for the
purchase of the home or the
comprehensive building contract
is completed, will be, the owner of
the land within the meaning of
section 67(2)(a) (as affected by
that section) of the Land Tax Act
2005; or
s. 3
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 and
37/2009.
LawToday:
www.
legislation.
vic.gov.au
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Part 2—First Home Owner Grant Act 2000
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
5
(ii) holds an interest in the shares of a
proprietary company described in
section 67(2)(b) (as affected by
that section) of the Land Tax Act
2005 and—
(A) the interest entitles the
applicant to exclusive
occupation of a specified
home owned by the company
or which will be owned by
the company, when a
contract for the purchase of
the specified home or a
comprehensive building
contract for the building of
the specified home is
completed; and
(B) the value of the shares is not
less than the value of the
company's interest in the
home; and
(b) the applicant continues to comply with
subparagraph (i) or (ii) (as the case
requires) until the end of the period that
the applicant is required under
section 12 to occupy the home.".
__________________
s. 3
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Part 3—Land Tax Act 2005
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
6
PART 3—LAND TAX ACT 2005
Division 1—Amendment relating to implied or constructive
trusts
4 Definitions
In section 3(1) of the Land Tax Act 2005, for
paragraph (b) of the definition of trust
substitute—
"(b) does not include an implied or constructive
trust, except where expressly provided by
this Act;".
5 New Division 2B inserted
After Division 2A of Part 3 of the Land Tax Act
2005 insert—
"Division 2B—Land held on implied or
constructive trust
46L Land held on implied or constructive trust
(1) A person who is the owner of land as trustee
of an implied or constructive trust is liable
for land tax on the land at the general rate set
out in Part 1 of Schedule 1.
(2) The trustee is to be assessed for land tax on
the whole of the land subject to the implied
or constructive trust as if the land were the
only land owned by the trustee.
s. 4
See:
Act No.
88/2005.
Reprint No. 3
as at
20 August
2009
and
amending
Act Nos
46/2008 and
4/2009.
LawToday:
www.
legislation.
vic.gov.au
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Part 3—Land Tax Act 2005
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No. 83 of 2009
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(3) Despite subsection (2), if the trustee holds
land as trustee of more than one implied or
constructive trust for the same beneficiary or
beneficiaries, the trustee is to be assessed for
land tax on the whole of the land subject to
those implied or constructive trusts as if that
land were the only land owned by the trustee.
46M Trustee's right to reimbursement under
implied trust or constructive trust
A trustee of an implied or constructive trust
who pays any land tax assessed on land
subject to the trust is entitled to recoup the
amount of the tax from any trust property
that is subject to the trust.".
Division 2—General amendments
6 Who is the owner of land?
(1) In section 10(b) of the Land Tax Act 2005, for
"lease from the Crown" substitute "lease of
Crown land".
(2) In section 10(c) of the Land Tax Act 2005, for
"licence from the Crown" substitute "licence of
Crown land".
(3) At the end of section 10 of the Land Tax Act
2005 insert—
"(2) Subsection (1)(b) does not apply to a person
entitled to land under a sub-lease of Crown
land.".
s. 6
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Part 3—Land Tax Act 2005
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7 New section 16A
After section 16 of the Land Tax Act 2005
insert—
"16A Transfer of land for no consideration
(1) The Commissioner may determine that a
person who has disposed of land is to be
deemed to not be the owner of that land if
the Commissioner is satisfied that—
(a) the person has disposed of the land for
no valuable consideration; and
(b) the disposition of the land was made in
good faith and not for the purpose of
evading the payment of land tax; and
(c) the person to whom the land was
disposed of had taken possession of the
land on or before midnight on
31 December in the year immediately
preceding the tax year.
(2) If the Commissioner makes a determination
under subsection (1)—
(a) the person who disposed of the land is
deemed not to be the owner of the land;
and
(b) the person to whom the land was
disposed of for no valuable
consideration is deemed to be the
owner of the land.
(3) Subsection (2) applies whether or not the
person to whom the land was disposed of is
the registered proprietor of the land.
(4) In this section—
dispose of means dispose of by way of
settlement, grant, assignment, transfer
or conveyance.".
s. 7
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Part 3—Land Tax Act 2005
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
9
8 Certain long-term lessees of private land
In section 45(1) of the Land Tax Act 2005, for
"lease from the Crown" substitute "lease of
Crown land".
9 General land tax surcharge for trusts
(1) In section 46A(3) of the Land Tax Act 2005—
(a) for paragraph (a) substitute—
"(a) land subject to a unit trust scheme if an
appointment of a nominated PPR
beneficiary for the scheme is in force
and the land is—
(i) used and occupied as the principal
place of residence of the
nominated PPR beneficiary; and
(ii) not used to carry on a substantial
business activity; or".
(b) for paragraph (b)(ii) substitute—
"(ii) an appointment of a nominated PPR
beneficiary for the trust is in force and
the land is—
(A) used and occupied as the principal
place of residence of the
nominated PPR beneficiary; and
(B) not used to carry on a substantial
business activity; or".
(2) After section 46A(5) of the Land Tax Act 2005
insert—
"(6) In determining whether land is used by a
person to carry on a substantial business
activity, account must be taken of the factors
referred to in section 62(2).".
s. 8
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Part 3—Land Tax Act 2005
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No. 83 of 2009
10
10 Land tax for PPR land if nominated PPR
beneficiary
After section 46I(3) of the Land Tax Act 2005
insert—
"(4) Subsection (2) does not apply if the land for
which a nomination is in force is used to
carry on a substantial business activity.
(5) In determining whether land is used by a
person to carry on a substantial business
activity, account must be taken of the factors
referred to in section 62(2).".
11 Unoccupied land subsequently used as principal
residence
In sections 61(3)(c) and 61(4)(c) of the Land Tax
Act 2005, for "Part" (wherever occurring)
substitute "Division".
12 Crown land
In section 79(2) of the Land Tax Act 2005—
(a) for paragraph (a) substitute—
"(a) a person who is entitled to the land
under a lease of Crown land, unless the
lease is a retail premises lease within
the meaning of the Retail Leases Act
2003; or";
(b) in paragraph (b), for "1993." substitute
"1993; or";
(c) after paragraph (b) insert—
"(c) a person who is entitled to the land
under a licence of Crown land under
which the person has a right, absolute
or conditional, of acquiring the fee
simple.".
s. 10
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Part 3—Land Tax Act 2005
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
11
13 New heading to Division 1 of Part 7
For the heading to Division 1 of Part 7 of the
Land Tax Act 2005 substitute—
"Division 1—Notices and certificates".
14 New section 104A
After section 104 of the Land Tax Act 2005
insert—
"104A Notice of errors in notice of assessment of
land tax
(1) A person who is served with a notice of
assessment of land tax must notify the
Commissioner of any error or omission in
the notice relating to—
(a) any land in Victoria owned by the
person that is not specified in the
notice;
(b) in the case of a notice of assessment for
land jointly owned by two or more
owners, any land in Victoria owned by
the joint owners that is not specified in
the notice;
(c) any land specified in the notice as
exempt land.
(2) Notice of the error or omission must be
given to the Commissioner within 60 days
from the date of issue of the notice of
assessment.
(3) If there is more than one owner of the land
specified in the notice of assessment, it is
sufficient compliance with this section if one
of the owners provides the required
information on behalf of all of them.".
__________________
s. 13
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Part 4—Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
12
PART 4—PAYROLL TAX ACT 2007
15 Definitions
In section 3 of the Payroll Tax Act 2007 insert
the following definitions—
"ABN means the ABN (Australian Business
Number) for an entity within the meaning of
the A New Tax System (Australian Business
Number) Act 1999 of the Commonwealth;
Australian jurisdiction means a State or a
Territory;
instrument includes a cheque, bill of exchange,
promissory note, money order or a postal
order issued by a post office;
registered business address means an address for
service of notices under the A New Tax
System (Australian Business Number) Act
1999 of the Commonwealth on an entity that
has an ABN, as shown in the Australian
Business Register kept under that Act;".
16 Taxable wages—New sections 10 to 11C
For sections 10 and 11 of the Payroll Tax Act
2007 substitute—
"10 What are taxable wages?
(1) For the purposes of this Act, taxable wages
are wages that are taxable in this jurisdiction.
(2) However, exempt wages are not taxable
wages.
s. 15
See:
Act No.
26/2007
and
amending
Act Nos
26/2007,
12/2008,
31/2008,
79/2008 and
4/2009.
LawToday:
www.
legislation.
vic.gov.au
-- 15 of 39 --
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13
11 Wages that are taxable in this jurisdiction
(1) For the purposes of this Act, wages are
taxable in this jurisdiction if—
(a) the wages are paid or payable by an
employer for or in relation to services
performed by an employee wholly in
this jurisdiction; or
(b) the wages are paid or payable by an
employer for or in relation to services
performed by an employee in 2 or more
Australian jurisdictions, or partly in one
or more Australian jurisdictions and
partly outside all Australian
jurisdictions, and—
(i) the employee is based in this
jurisdiction; or
(ii) the employer is based in this
jurisdiction (in a case where the
employee is not based in an
Australian jurisdiction); or
(iii) the wages are paid or payable in
this jurisdiction (in a case where
both the employee and the
employer are not based in an
Australian jurisdiction); or
(iv) the wages are paid or payable for
services performed mainly in this
jurisdiction (in a case where both
the employee and the employer
are not based in an Australian
jurisdiction and the wages are not
paid or payable in an Australian
jurisdiction); or
s. 16
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14
(c) the wages are paid or payable by an
employer for or in relation to services
performed by an employee wholly
outside all Australian jurisdictions and
are paid or payable in this jurisdiction.
Note
Section 66A provides an exemption for wages paid or
payable for services performed wholly in one or more other
countries for a continuous period of more than 6 months.
(2) The question of whether wages are taxable in
this jurisdiction is to be determined by
reference only to the services performed by
the employee in respect of the employer
during the month in which the wages are
paid or payable, subject to this section.
(3) Any wages paid or payable by an employer
in respect of an employee in a particular
month are taken to be paid or payable for or
in relation to the services performed by the
employee in respect of the employer during
that month.
Note
For example, if wages paid in a month are paid to an
employee for services performed over several months, the
question of whether the wages are taxable in this jurisdiction
is to be determined by reference only to services performed
by the employee in the month in which the wages are paid.
The services performed in previous months are disregarded.
(The services performed in previous months will be relevant
to the question of whether wages paid in those previous
months are taxable in this jurisdiction.)
(4) If no services are performed by an employee
in respect of an employer during the month
in which wages are paid or payable to or in
relation to the employee—
s. 16
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15
(a) the question of whether the wages are
taxable in this jurisdiction is to be
determined by reference only to the
services performed by the employee in
respect of the employer during the most
recent prior month in which the
employee performed services in respect
of the employer; and
(b) the wages are taken to be paid or
payable for or in relation to the services
performed by the employee in respect
of the employer during that most recent
prior month.
(5) If no services were performed by an
employee in respect of an employer during
the month in which wages are paid or
payable to or in relation to the employee or
in any prior month—
(a) the wages are taken to be paid or
payable for or in relation to services
performed by the employee in the
month in which the wages are paid or
payable; and
(b) the services are taken to have been
performed at a place or places where it
may be reasonably expected that the
services of the employee in respect of
the employer will be performed.
(6) All amounts of wages paid or payable in the
same month by the same employer in respect
of the same employee are to be aggregated
for the purposes of determining whether they
are taxable in this jurisdiction (as if they
were paid or payable for all services
performed by the employee in the month in
which the wages are paid or payable, or the
s. 16
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Part 4—Payroll Tax Act 2007
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16
most recent prior month, as the case
requires).
Note
For example, if one amount of wages is paid by an employer
in a particular month for services performed in this
jurisdiction, and another amount of wages is paid by the
same employer in the same month for services performed by
the same employee in another Australian jurisdiction, the
wages paid are to be aggregated (as if they were paid for all
services performed by the employee in that month).
Accordingly, subsection (1)(b) would be applied for the
purpose of determining whether the wages are taxable in this
jurisdiction.
(7) If wages are paid in a different month from
the month in which they are payable, the
question of whether the wages are taxable in
this jurisdiction is to be determined by
reference to the earlier of the relevant
months.
11A Jurisdiction in which employee is based
(1) For the purposes of this Act, the jurisdiction
in which an employee is based is the
jurisdiction in which the employee's
principal place of residence is located.
(2) The jurisdiction in which an employee 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.
(3) If more than one jurisdiction would qualify
as the jurisdiction in which an employee is
based during a month, the jurisdiction in
which the employee is based is to be
determined by reference to the state of affairs
existing on the last day of that month.
s. 16
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17
(4) An employee who does not have a principal
place of residence is taken, for the purposes
of this Act, to be an employee who is not
based in an Australian jurisdiction.
(5) In the case of wages paid or payable to a
corporate employee, the jurisdiction in which
the employee is based is to be determined in
accordance with section 11B instead of this
section (as if a reference in section 11B to an
employer were a reference to an employee).
(6) In this section, a corporate employee is a
company that is taken to be an employee
under section 34 or 39 or a company to
whom a payment is made that is taken to be
wages payable to an employee under
section 42 or 47.
11B Jurisdiction in which employer is based
(1) For the purposes of this Act, the jurisdiction
in which an employer is based is—
(a) the jurisdiction in which the employer's
registered business address is located
(if the employer has an ABN); or
(b) the jurisdiction in which the employer's
principal place of business is located
(in any other case).
(2) If wages are paid or payable in connection
with a business carried on by an employer
under a trust, the employer's registered
business address is the registered business
address of the trust or, if the trust does not
have an ABN, the registered business
address of the trustee of the trust.
s. 16
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18
(3) If an employer has registered business
addresses located in different jurisdictions at
the same point in time, the jurisdiction in
which the employer is based at that point in
time is the jurisdiction in which the
employer's principal place of business is
located.
(4) The jurisdiction in which an 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.
(5) If more than one jurisdiction would qualify
as the jurisdiction in which an employer is
based during a month, the jurisdiction in
which the employer is based is to be
determined by reference to the state of affairs
existing on the last day of that month.
(6) An employer who has neither a registered
business address nor a principal place of
business is taken, for the purposes of this
Act, to be an employer who is not based in
an Australian jurisdiction.
11C Place and date of payment of wages
(1) For the purposes of this Act, wages are taken
to have been paid at a place if, for the
purpose of the payment of those wages—
(a) an instrument is sent or given or an
amount is transferred by an employer to
a person or a person's agent at that
place; or
(b) an instruction is given by an employer
for the crediting of an amount to the
account of a person or a person's agent
at that place.
s. 16
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No. 83 of 2009
19
(2) The wages are taken to have been paid on the
date that the instrument was sent or given,
the amount was transferred or the account
credited in accordance with the instruction
(as the case requires).
(3) Wages are taken to be payable at the place at
which they are paid, subject to this section.
(4) Wages that are not paid by the end of the
month in which they are payable are taken to
be payable at—
(a) the place where wages were last paid
by the employer to the employee; or
(b) if wages have not previously been paid
by the employer to the employee—the
place where the employee last
performed services in respect of the
employer before the wages became
payable.
(5) If wages paid or payable in the same month
by the same employer in respect of the same
employee are paid or payable in more than
one Australian jurisdiction, the wages paid or
payable in that month are taken to be paid or
payable in the Australian jurisdiction in
which the highest proportion of the wages
are paid or payable.
Note
Section 11 requires all wages paid or payable in the same
month by the same employer in respect of the same
employee to be aggregated for the purpose of determining
whether the wages are taxable in this jurisdiction.
The above provision ensures only one Australian
jurisdiction can be considered to be the jurisdiction in which
the wages are paid or payable.".
s. 16
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20
17 What are wages?
After section 13(2) of the Payroll Tax Act 2007
insert—
"(3) This Act applies in respect of wages referred
to in subsections (1)(a) to (e) that are paid or
payable to or in relation to a person who is
not an employee in the same way as it
applies to wages paid or payable to an
employee (as if a reference in this Act to an
employee included a reference to any such
person).".
18 Inclusion of shares and options granted to directors
as wages
(1) Section 24(4) of the Payroll Tax Act 2007 is
repealed.
(2) At the foot of section 24 of the Payroll Tax Act
2007 insert—
"Note
Section 13 provides that a reference to an employee in this
Act includes a reference to any person to whom any amount
that is treated as wages under this Act is payable. See also
section 11, which deems the wages to be paid or payable for
services performed.".
19 Repeal of section 25
Section 25 of the Payroll Tax Act 2007 is
repealed.
20 Place where wages are payable
For the note at the foot of section 26(2) of the
Payroll Tax Act 2007 substitute—
"Note
The place where wages are paid or payable is sometimes
relevant to determining whether the wages are liable to
payroll tax under this Act. See section 11.".
s. 17
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21
21 Part 4 Exemptions
After Division 8 of Part 4 of the Payroll Tax Act
2007 insert—
"Division 9—Services outside Australia
66A Wages paid or payable for or in relation
to services performed in other countries
Wages are exempt wages if they are paid or
payable for or in relation to services
performed by an employee wholly in one or
more other countries for a continuous period
of more than 6 months beginning on the day
on which wages were first paid or payable to
that employee for the services so
performed.".
22 Transitional provisions
After clause 15 of Schedule 3 to the Payroll Tax
Act 2007 insert—
"16 Application of amendments
(1) The amendments made to this Act by the
State Taxation Acts Further Amendment
Act 2009 apply in respect of taxable wages
that are paid or payable on or after 1 July
2009.
(2) The amendments made to this Act by the
State Taxation Acts Further Amendment
Act 2009 are to be applied for the purpose of
determining the correct amount of payroll
tax (within the meaning of section 82)
payable by an employer in respect of the
financial year commencing on 1 July 2009
(including in respect of expired months).
s. 21
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Part 4—Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
22
(3) However, section 9 continues to apply in
respect of an expired month as if the
amendments made to this Act by the State
Taxation Acts Further Amendment Act
2009 had not been made.
(4) In this clause, an expired month is a month
occurring after June 2009 that ended before
the date on which the State Taxation Acts
Further Amendment Act 2009 received the
Royal Assent.".
__________________
s. 22
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
23
PART 5—TAXATION ADMINISTRATION ACT 1997
Division 1—Amendments relating to recognised jurisdictions
23 Purpose
In section 1 of the Taxation Administration Act
1997, after "laws" insert "and the reciprocal
enforcement of recognised laws".
24 Definitions
(1) In section 3 of the Taxation Administration Act
1997 insert the following definitions—
"corresponding Commissioner, in relation to a
recognised jurisdiction, means the person
who is responsible for the general
administration of the law that corresponds
with this Act;
recognised jurisdiction means the
Commonwealth, another State or a Territory;
recognised law means a law administered by a
corresponding Commissioner that is—
(a) a law relating to the imposition of a tax,
duty or levy; or
(b) a law declared by the Governor in
Council under subsection (2) to be a
recognised law;".
s. 23
See:
Act No.
40/1997.
Reprint No. 4
as at
29 February
2008
and
amending
Act No.
84/2008.
LawToday:
www.
legislation.
vic.gov.au
-- 26 of 39 --
Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
24
(2) At the end of section 3 of the Taxation
Administration Act 1997 insert—
"(2) The Governor in Council may, by Order
published in the Government Gazette,
declare a law of the Commonwealth, another
State or a Territory to be a recognised law
for the purposes of this Act.".
25 Meaning of taxation laws
In section 4 of the Taxation Administration Act
1997—
(a) in paragraph (d), for "Act;" substitute
"Act.";
(b) paragraph (e) is repealed.
26 Relationship with other taxation laws
After section 7(1)(e) of the Taxation
Administration Act 1997 insert—
"(ea) reciprocal enforcement of recognised laws;".
27 Searches without a warrant
Insert the following the heading to section 76 of
the Taxation Administration Act 1997—
"Powers of entry".
28 New Division 2A inserted in Part 9
After Division 2 of Part 9 of the Taxation
Administration Act 1997 insert—
"Division 2A—Investigations for the purposes
of recognised laws
90A Investigations by and on behalf of
corresponding Commissioner
(1) The Commissioner may, by agreement with
a corresponding Commissioner of a
recognised jurisdiction—
s. 25
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
25
(a) authorise the corresponding
Commissioner to exercise a function
under Division 2 for the purposes of a
recognised law in force in that
jurisdiction; or
(b) exercise on behalf of the corresponding
Commissioner a function under
Division 2 for the purposes of a
recognised law in force in that
jurisdiction.
(2) An agreement under subsection (1) may be
subject to any conditions imposed at the time
the agreement is entered into or at a later
time by—
(a) the Commissioner; or
(b) the corresponding Commissioner.
90B Exercise of functions under Division 2
(1) For the purposes of exercising a function
under Division 2 in respect of a recognised
law—
(a) a reference in this Part to tax is to be
read as a reference to tax under the
recognised law; and
(b) a reference in this Part to a tax liability
is to be read as a reference to a tax
liability under the recognised law; and
(c) a reference in this Part to a taxation law
is to be read as a reference to the
recognised law; and
(d) a reference in this Part to an offence
against a taxation law is to be read as a
reference to an offence against, or
contravention of, the recognised law.
s. 28
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
26
(2) If the Commissioner authorises a
corresponding Commissioner of a recognised
jurisdiction to exercise a function under
Division 2 in respect of a recognised law—
(a) a reference in this Part to the
Commissioner is to be read as a
reference to the corresponding
Commissioner; and
(b) a reference in this Part to an authorised
officer is to be read as a reference to a
person authorised to exercise the same
function, or an equivalent function,
under the recognised law; and
(c) a reference in this Part to an authorised
officer's identity card, in relation to a
person authorised to exercise the same
function, or an equivalent function,
under the recognised law, is to be read
as a reference to an identification card
issued to that person under the
recognised law.
90C Transfer of documents or things seized
under investigations for recognised
jurisdiction
An authorised officer who seizes any
document or thing under section 77(2)(b) for
the purpose of a recognised law in force in a
recognised jurisdiction may, for the purposes
of the recognised law, transfer the document
or thing to—
(a) the corresponding Commissioner of the
recognised jurisdiction; or
(b) an authorised person acting on behalf of
the corresponding Commissioner of the
recognised jurisdiction.
s. 28
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
27
90D Investigations by Commissioner in
another jurisdiction
(1) The Commissioner may enter into an
agreement with a corresponding
Commissioner of a recognised jurisdiction
under which—
(a) the Commissioner is authorised to
exercise the investigative functions
conferred or imposed by a recognised
law in force in the recognised
jurisdiction for the purposes of a
taxation law; or
(b) the corresponding Commissioner is to
exercise on behalf of the Commissioner
the investigative functions conferred or
imposed by a recognised law in force in
the recognised jurisdiction for the
purposes of a taxation law.
(2) The Commissioner may authorise any person
who is authorised to exercise a function
under Division 2 for the purposes of a
taxation law to exercise on behalf of the
Commissioner the investigative functions
that are conferred or imposed under
section 90D(1)(a).
(3) In this section, investigative function
includes any function that corresponds to a
function conferred or imposed under
Division 2.
90E Certificate of authority
(1) The Commissioner must issue a certificate of
authority to any person authorised by a
corresponding Commissioner to carry out a
function under Division 2 for the purposes of
a recognised law.
s. 28
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
28
(2) Any person who exercises or purports to
exercise a function under Division 2 on
behalf of a corresponding Commissioner for
the purposes of a recognised law must
produce a certificate of authority.".
29 Disclosures to a recognised jurisdiction and national
regulators
(1) For section 92(1)(c) of the Taxation
Administration Act 1997 substitute—
"(c) in connection with the administration or
execution of a recognised law (including for
the purpose of any legal proceedings arising
out of a recognised law or a report of those
proceedings); or".
(2) After section 92(1)(e)(vf) of the Taxation
Administration Act 1997 insert—
"(vg) the Australian Crime Commission; or
(vh) the Australian Securities and Investments
Commission; or
(vha) the Australian Taxation Office; or".
Division 2—Amendments relating to notification defaults
30 Definitions
In section 3 of the Taxation Administration Act
1997, insert the following definition—
"notification default means—
(a) a failure to lodge a notice under
section 46K of the Land Tax Act
2005; or
(b) a failure to notify the Commissioner of
an error or omission in accordance with
section 104A of the Land Tax Act
2005;".
s. 29
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
29
31 Penalty tax for notification defaults
(1) Insert the following heading to section 29 of the
Taxation Administration Act 1997—
"Penalty tax in respect of certain defaults".
(2) In section 29(1) of the Taxation Administration
Act 1997 omit "in addition to the amount of tax
unpaid".
(3) After section 29(1) of the Taxation
Administration Act 1997 insert—
"(1A) If a notification default occurs, the taxpayer
is liable to pay penalty tax.".
(4) In section 29(2) of the Taxation Administration
Act 1997 after "interest" insert "and any amount
of tax unpaid".
32 Amount of penalty tax for notification default
(1) After section 30(1) of the Taxation
Administration Act 1997 insert—
"(1A) The amount of penalty tax payable in respect
of a notification default is 25% of the
additional amount of tax that the taxpayer
would have been assessed as liable to pay
had the notification default not occurred,
subject to this Division.".
(2) After section 30(2) of the Taxation
Administration Act 1997 insert—
"(2A) The Commissioner may increase the amount
of penalty tax payable in respect of a
notification default to 75% of the additional
amount of tax that the taxpayer would have
been assessed as liable to pay had the
notification default not occurred if the
Commissioner is satisfied that the
notification default was caused wholly or
partly by the intentional disregard by the
s. 31
-- 32 of 39 --
Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
30
taxpayer (or a person acting on behalf of the
taxpayer) of section 46K or 104A of the
Land Tax Act 2005 (as the case requires).".
(3) In section 30(3) of the Taxation Administration
Act 1997—
(a) after "tax default" (where first occurring)
insert "or notification default";
(b) in paragraph (b) for "tax default" substitute
"default".
33 Reduction in penalty tax
(1) In section 31(1) of the Taxation Administration
Act 1997—
(a) after "tax default" (where first occurring)
insert "or notification default";
(b) for "tax default" (where secondly occurring)
substitute "default".
(2) In section 31(2) of the Taxation Administration
Act 1997—
(a) after "tax default" (where first occurring)
insert "or notification default";
(b) for "tax default" (where secondly occurring)
substitute "default".
34 Increase in penalty tax for concealment
In section 32(1) of the Taxation Administration
Act 1997—
(a) after "tax default" (where first occurring)
insert "or notification default";
(b) for "tax default" (where secondly occurring)
substitute "default".
s. 33
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
31
35 New clause inserted in Schedule 1
In Schedule 1 to the Taxation Administration
Act 1997, after clause 16 insert—
"17 Penalty tax for notification defaults
(1) Division 2 of Part 5 does not apply to permit
the imposition of penalty tax for a trust
notification default if the event requiring the
lodging of notice with the Commissioner
occurred before 1 January 2010.
(2) Division 2 of Part 5 does not apply to an
error notification default that occurred in
relation to a notice of assessment that was
served on the taxpayer before 1 January
2010.
(3) In this clause—
error notification default means a failure to
notify the Commissioner of an error or
omission in accordance with section
104A of the Land Tax Act 2005;
trust notification default means a failure to
lodge a notice under section 46K of the
Land Tax Act 2005.".
Division 3—General amendments
36 Permitted disclosures to particular persons
In section 92(1) of the Taxation Administration
Act 1997—
(a) for paragraph (b) substitute—
"(b) in connection with the administration or
execution of—
(i) a taxation law; or
(ii) the First Home Owner Grant
Act 2000; or
s. 35
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Part 5—Taxation Administration Act 1997
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
32
(iii) the Unclaimed Money Act
2008—
including for the purpose of any legal
proceeding arising out of that taxation
law or Act or a report of those
proceedings; or";
(b) in paragraph (e)(iii), for "the Archives
Authority" substitute "the Public Record
Office Victoria".
37 Service of process by Commissioner
After section 125(1) of the Taxation
Administration Act 1997 insert—
"(1A) To avoid doubt, this section applies to the
service of any court process in proceedings
to recover any amount under this Act.".
__________________
s. 37
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Part 6—Repeal and Consequential Amendments
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
33
PART 6—REPEAL AND CONSEQUENTIAL AMENDMENTS
38 Repeal of Taxation (Reciprocal Powers) Act 1987
The Taxation (Reciprocal Powers) Act 1987 is
repealed.
39 Consequential amendment to Accident
Compensation Act 1985
Section 244 of the Accident Compensation Act
1985 is repealed.
40 Consequential amendment to Business Franchise
(Tobacco) Act 1974
In section 2(1) of the Business Franchise
(Tobacco) Act 1974, the definition of
corresponding law is repealed.
See:
Act No.
37/1987.
Reprint No. 3
as at
16 February
2006
and
amending
Act No.
26/2007.
LawToday:
www.
legislation.
vic.gov.au
s. 38
See:
Act No.
10191.
Reprint No. 15
as at
17 April 2008
and
amending
Act Nos
107/1997,
12/2008,
24/2008,
65/2008,
77/2008,
66/2008,
69/2008 and
4/2009.
LawToday:
www.
legislation.
vic.gov.au
See:
Act No.
8597.
Reprint No. 5
as at
19 March
1998 and
amending
Act Nos
46/1998 and
52/1998.
LawToday:
www.
legislation.
vic.gov.au
-- 36 of 39 --
Part 6—Repeal and Consequential Amendments
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
34
41 Consequential amendment to Unclaimed Money
Act 2008
(1) For section 77(1)(c) of the Unclaimed Money
Act 2008 substitute—
"(c) in connection with the administration of a
taxation law or a recognised law that is in
force in a recognised jurisdiction; or".
(2) For section 77(2) of the Unclaimed Money Act
2008 substitute—
"(2) In this section, recognised jurisdiction,
recognised law and taxation law have the
same meanings as they have in the Taxation
Administration Act 1997.".
__________________
See:
Act No.
44/2008.
LawToday:
www.
legislation.
vic.gov.au
s. 41
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Part 7—Repeal of Amending Act
State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
35
PART 7—REPEAL OF AMENDING ACT
42 Repeal of amending Act
This Act is repealed on 1 October 2011.
Note
The repeal of this Act does not affect the continuing operation of
the amendments and repeal made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
═══════════════
s. 42
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State Taxation Acts Further Amendment Act 2009
No. 83 of 2009
36
ENDNOTES
† Minister's second reading speech—
Legislative Assembly: 15 October 2009
Legislative Council: 12 November 2009
The long title for the Bill for this Act was "A Bill for an Act to amend 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 make consequential amendments to other Acts, to repeal the Taxation
(Reciprocal Powers) Act 1987 and for other purposes."
Endnotes
-- 39 of 39 --