State Taxation (Reductions and Concessions) Act 2006

i State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 2 PART 2—DUTIES ACT 2000 3 3. Pensioner exemptions and concessions 3 4. First home owner exemptions and concessions 4 5. New section 63B inserted 4 63B. Election to receive eligible first home owner exemption/concession or additional first home owner grant 4 6. Transitional provision 5 23. State Taxation (Reductions and Concessions) Act 2006 5 PART 3—FIRST HOME OWNER GRANT ACT 2000 6 7. Amount of grant 6 PART 4—LAND TAX ACT 2005 7 8. New land tax rates 7 1.2 Land tax for 2007 and subsequent years 7 3.2 Land tax for trusts for 2007 and subsequent years 9 9. Capping land tax for 2007 10 5A. Land tax capping for 2007 10 PART 5—PAY-ROLL TAX ACT 1971 13 10. Reduction of pay-roll tax rates 13 ═══════════════ ENDNOTES 14 -- 1 of 15 -- 1 State Taxation (Reductions and Concessions) Act 2006 † [Assented to 20 June 2006] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purpose The purpose of this Act is to amend the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005 and the Pay-roll Tax Act 1971 to give effect to initiatives in the 2006–07 State budget. Victoria No. 38 of 2006 -- 2 of 15 -- Part 1—Preliminary State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 2 2. Commencement This Act comes into operation on the day after the day on which it receives the Royal Assent. __________________ s. 2 -- 3 of 15 -- Part 2—Duties Act 2000 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 3 PART 2—DUTIES ACT 2000 3. Pensioner exemptions and concessions In the Duties Act 2000— (a) in section 59— (i) in sub-section (1)(b), for "$250 000" substitute "$300 000"; (ii) in sub-section (2)(b), for "$250 000 but does not exceed $350 000" substitute "$300 000 but does not exceed $400 000"; (iii) in sub-section (3), for the formula substitute— ; " 5000 683P 640 "$54 − (b) in section 60— (i) in sub-section (1)(c), for "$250 000" substitute "$300 000"; (ii) in sub-section (2)(c), for "$250 000 but does not exceed $350 000" substitute "$300 000 but does not exceed $400 000"; (iii) in sub-section (3), for the formula substitute— ". 000) $217 100(3P P) 000 683($400 D " − − × See: Act No. 79/2000. Reprint No. 5 as at 10 February 2006. LawToday: www.dms. dpc.vic. gov.au s. 3 -- 4 of 15 -- Part 2—Duties Act 2000 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 4 4. First home owner exemptions and concessions In section 63A(1) of the Duties Act 2000, for "1 July 2007" substitute "1 January 2006". 5. New section 63B inserted After section 63A of the Duties Act 2000 insert— "63B. Election to receive eligible first home owner exemption/concession or additional first home owner grant (1) This section applies to an eligible first home owner who, but for this section or section 18(6) of the First Home Owner Grant Act 2000, would be entitled— (a) to an exemption or concession from duty under section 62 or 63 in respect of a transfer of an estate in fee simple in land; and (b) to receive an amount under section 18(2) of the First Home Owner Grant Act 2000 in respect of an eligible transaction (within the meaning of that Act) relating to that land. (2) The eligible first home owner, by notice in writing to the Commissioner, must elect to receive— (a) the exemption or concession under section 62 or 63 (as the case requires) in respect of the transfer; or (b) the amount under section 18(2) of the First Home Owner Grant Act 2000 in respect of the eligible transaction. s. 4 -- 5 of 15 -- Part 2—Duties Act 2000 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 5 (3) If the eligible first home owner elects to receive the amount under section 18(2) of the First Home Owner Grant Act 2000, or does not make an election under this section, he or she is not entitled to the exemption or concession under section 62 or 63 (as the case requires) in respect of the transfer.". 6. Transitional provision After clause 22 of Schedule 2 to the Duties Act 2000 insert— '23. State Taxation (Reductions and Concessions) Act 2006 (1) Sections 59 and 60, as amended by section 3 of the State Taxation (Reductions and Concessions) Act 2006, apply to a transfer to an eligible pensioner of dutiable property being an estate in fee simple in land if the contract of sale of the land was entered into on or after 30 May 2006. (2) Sections 59 and 60, as in force immediately before the commencement day, continue to apply to a transfer to an eligible pensioner of dutiable property being an estate in fee simple in land if the contract of sale of the land was entered into before 30 May 2006. (3) If an eligible first home owner elects under section 63B to receive a concession under section 62 or 63 in respect of a contract for an eligible transaction entered into on or after 1 January 2006 and he or she has received an amount under section 18(2) of the First Home Owner Grant Act 2000 in respect of the eligible transaction before the commencement day, that amount must be deducted from the amount of the concession. (4) In this clause, "commencement day" means the day after the day on which the State Taxation (Reductions and Concessions) Act 2006 received the Royal Assent.'. __________________ s. 6 -- 6 of 15 -- Part 3—First Home Owner Grant Act 2000 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 6 PART 3—FIRST HOME OWNER GRANT ACT 2000 7. Amount of grant After section 18(5) of the First Home Owner Grant Act 2000 insert— "(6) If an eligible first home owner (within the meaning of the Duties Act 2000) to whom section 63B(2) of that Act applies elects under that section to receive an exemption or concession under section 62 or 63 of that Act in respect of a transfer of land, he or she is not entitled to any amount under sub- section (2) of this section in respect of the eligible transaction relating to that land.". __________________ See: Act No. 5/2000. Reprint No. 1 as at 1 January 2004 and amending Act Nos 46/2004, 71/2004 and 36/2005. LawToday: www.dms. dpc.vic. gov.au s. 7 -- 7 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 7 PART 4—LAND TAX ACT 2005 8. New land tax rates (1) For clause 1.2 of Schedule 1 to the Land Tax Act 2005 substitute— "1.2 Land tax for 2007 and subsequent years The rate of land tax for 2007 and each subsequent year is set out in Table 1.2. TABLE 1.2 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 200 000 Nil 2. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 3. 540 000 900 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 4. 900 000 1 190 000 $2680 and 0⋅8% of the taxable value that exceeds $900 000 5. 1 190 000 1 620 000 $5000 and 1⋅2% of the taxable value that exceeds $1 190 000 6. 1 620 000 2 700 000 $10 160 and 1⋅8% of the taxable value that exceeds $1 620 000 See: Act No. 88/2005. Reprint No. 1 as at 1 January 2006 and amending Act No. 23/2006. LawToday: www.dms. dpc.vic. gov.au s. 8 -- 8 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 8 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 7. 2 700 000 $29 600 and 3% of the taxable value that exceeds $2 700 000 ". (2) Clause 1.3 of Schedule 1 to the Land Tax Act 2005 is repealed. (3) For Table 2.1 in clause 2.1 of Schedule 1 to the Land Tax Act 2005 substitute— "TABLE 2.1 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 1. 0 200 000 Nil 2. 200 000 540 000 $200 and 0⋅2% of the taxable value that exceeds $200 000 3. 540 000 900 000 $880 and 0⋅5% of the taxable value that exceeds $540 000 4. 900 000 1 190 000 $2680 and 0⋅8% of the taxable value that exceeds $900 000 5. 1 190 000 1 620 000 $5000 and 1⋅2% of the taxable value that exceeds $1 190 000 6. 1 620 000 2 700 000 $10 160 and 1⋅8% of the taxable value that exceeds $1 620 000 s. 8 -- 9 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 9 Item Column 1 Taxable value not less than Column 2 Taxable value not exceeding Column 3 Rate of land tax $ $ 7. 2 700 000 $29 600 and 5% of the taxable value that exceeds $2 700 000 ". (4) For clause 3.2 of Schedule 1 to the Land Tax Act 2005 substitute— "3.2 Land tax for trusts for 2007 and subsequent years The rate of land tax for 2007 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.2. TABLE 3.2 Item Column 1 Column 2 Column 3 $ $ 1. 0 20 000 Nil 2. 20 000 200 000 $75 and 0⋅375% of the taxable value that exceeds $20 000 3. 200 000 540 000 $750 and 0⋅575% of the taxable value that exceeds $200 000 4. 540 000 900 000 $2705 and 0⋅875% of the taxable value that exceeds $540 000 5. 900 000 1 190 000 $5855 and 1⋅175% of the taxable value that exceeds $900 000 s. 8 -- 10 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 10 Item Column 1 Column 2 Column 3 $ $ 6. 1 190 000 1 620 000 $9263 and 1⋅575% of the taxable value that exceeds $1 190 000 7. 1 620 000 2 700 000 $16 035 and 1⋅256% of the taxable value that exceeds $1 620 000 8. 2 700 000 $29 600 and 3% of the taxable value that exceeds $2 700 000 ". (5) Clause 3.3 of Schedule 1 to the Land Tax Act 2005 is repealed. 9. Capping land tax for 2007 After clause 5 of Schedule 3 to the Land Tax Act 2005 insert— '5A. Land tax capping for 2007 (1) The amount of land tax payable for 2007 on the land of an owner is— (a) the amount determined in accordance with Table 1.2 or Table 3.2 in Schedule 1 (as applicable); or (b) if that amount is more than 150% of the 2006 tax amount, 150% of the 2006 tax amount. (2) For the purposes of this clause— (a) the "2006 tax amount", in relation to land of an owner, means the amount determined by applying the rates of tax set out in Table 1.1 or Table 3.1 in Schedule 1 (as applicable) to the sum of— s. 9 -- 11 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 11 (i) in respect of any land that was valued separately as at the relevant date (within the meaning of section 19) for the purpose of assessing land tax for 2006, the taxable value of that land determined for the purpose of assessing land tax for 2006; and (ii) in respect of any land that was not valued separately as at the relevant date for the purpose of assessing land tax for 2006 but was rated separately as at the relevant date for the purpose of assessing land tax for 2007, the taxable value of that land determined for the purpose of assessing land tax for 2007; and (iii) in respect of all other land, the taxable value of the land as assessed under this Act for 2006; (b) if, for the 2006 tax year— (i) the capping provisions in clause 5 applied to land of an owner; and (ii) no tax was payable by the owner at the rates of tax set out in Table 3.1 in Schedule 1— the "2006 tax amount" is the amount referred to in paragraph (a) as capped in accordance with clause 5; (c) if, for the 2006 tax year— (i) the capping provisions in clause 5 applied to land of an owner; and (ii) tax was also payable by the owner at the rates of tax set out in Table 3.1 in Schedule 1— the "2006 tax amount" is that part of the amount referred to in paragraph (a) as capped in accordance with clause 5 plus that part of the amount referred to in paragraph (a) determined by applying the rates of tax set out in Table 3.1 in Schedule 1; s. 9 -- 12 of 15 -- Part 4—Land Tax Act 2005 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 12 (d) if the 2006 tax amount is zero, the amount of land tax payable for 2007 is the amount determined in accordance with Table 1.2 or Table 3.2 in Schedule 1 (as applicable).'. __________________ s. 9 -- 13 of 15 -- Part 5—Pay-roll Tax Act 1971 State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 13 PART 5—PAY-ROLL TAX ACT 1971 10. Reduction of pay-roll tax rates In section 7(1) of the Pay-roll Tax Act 1971— (a) in paragraph (k)— (i) after "June 2003" insert "and before the month of July 2006"; (ii) for "or (j)." substitute "or (j); and"; (b) after paragraph (k) insert— "(l) at the rate of 5⋅15% in respect of such of those wages as are paid or payable after the month of June 2006 and before the month of July 2007 and are not liable to pay-roll tax at the rate prescribed in paragraph (c), (d), (e), (f), (g), (h), (i), (j) or (k); and (m) at the rate of 5⋅05% in respect of such of those wages as are paid or payable after the month of June 2007 and before the month of July 2008 and are not liable to pay-roll tax at the rate prescribed in paragraph (c), (d), (e), (f), (g), (h), (i), (j), (k) or (l); and (n) at the rate of 5% in respect of such of those wages as are paid or payable after the month of June 2008 and are not liable to pay-roll tax at the rate prescribed in paragraph (c), (d), (e), (f), (g), (h), (i), (j), (k), (l) or (m).". ═══════════════ See: Act No. 8154. Reprint No. 10 as at 1 January 2004 and amending Act Nos 46/2004, 71/2004, 36/2005 and 24/2006. LawToday: www.dms. dpc.vic. gov.au s. 10 -- 14 of 15 -- State Taxation (Reductions and Concessions) Act 2006 Act No. 38/2006 14 ENDNOTES † Minister's second reading speech— Legislative Assembly: 31 May 2006 Legislative Council: 8 June 2006 The long title for the Bill for this Act was "to amend the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005 and the Pay-roll Tax Act 1971 to give effect to initiatives in the 2006–07 State budget and for other purposes." Endnotes -- 15 of 15 --