State Taxation Acts (Further Tax Reform) Act 2002

i State Taxation Acts (Further Tax Reform) Act 2002 Act No. 29/2002 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 2 PART 2—DUTIES ACT 2000 3 3. Abolition of duty on unquoted marketable securities 3 4. Pensioner and first home owner exemptions and concessions 3 5. Capital reductions, rights alterations and allotment of shares by direction 5 6. Transitional provision 5 18. State Taxation Acts (Further Tax Reform) Act 2002 5 7. Consequential amendment of State Taxation Acts (Taxation Reform Implementation) Act 2001 6 PART 3—LAND TAX ACT 1958 7 8. Increase in land tax threshold 7 5. Land tax for 2003 and subsequent years 7 PART 4—PAY-ROLL TAX ACT 1971 9 9. Reduction in pay-roll tax rate 9 10. Increase in pay-roll tax threshold brought forward 9 ═══════════════ ENDNOTES 10 -- 1 of 11 -- 1 State Taxation Acts (Further Tax Reform) Act 2002 † [Assented to 12 June 2002] 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 Land Tax Act 1958 and the Pay-roll Tax Act 1971 to implement further tax reform. Victoria No. 29 of 2002 -- 2 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 2 2. Commencement (1) This Act (except section 4) comes into operation on the day after the day on which it receives the Royal Assent. (2) Section 4 comes into operation on 1 July 2002. __________________ s. 2 -- 3 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 3 PART 2—DUTIES ACT 2000 3. Abolition of duty on unquoted marketable securities In section 7(3A) of the Duties Act 2000, for "1 July 2003" substitute "1 July 2002". 4. Pensioner and first home owner exemptions and concessions (1) In the Duties Act 2000— (a) in section 59— (i) in sub-section (1)(b), for "$100 000" substitute "$150 000"; (ii) in sub-section (2)(b), for "$100 000 but does not exceed $130 000" substitute "$150 000 but does not exceed $200 000"; (iii) in sub-section (3), for the formula substitute— " 5000 466P 640 18 − "; (b) in section 60— (i) in sub-section (1)(c), for "$100 000" substitute "$150 000"; See: Act No. 79/2000. Reprint No. 1 as at 15 July 2001 and amending Act Nos 27/2001, 48/2001, 79/2001, 9/2002 and 11/2002. LawToday: www.dms. dpc.vic. gov.au s. 3 -- 4 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 4 (ii) in sub-section (2)(c), for "$100 000 but does not exceed $130 000" substitute "$150 000 but does not exceed $200 000". (2) In section 60 of the Duties Act 2000, for sub- sections (3) and (4) substitute— "(3) The concession or refund is an amount calculated in accordance with the formula— ) 000 217 P 3 ( 100 ) P 000 200 ( 466 D − − × where— D is the amount of duty paid or payable (but for this Division) on the transfer; P is the aggregate amount referred to in sub-section (2)(c).". (3) In the Duties Act 2000— (a) in section 61— (i) in sub-section (1), paragraph (d) is repealed; (ii) sub-section (3) is repealed; (b) in section 62— (i) in sub-section (1), for "$115 000" substitute "$150 000"; (ii) in sub-section (2), for "$115 000 but does not exceed $165 000" (where twice occurring) substitute "$150 000 but does not exceed $200 000"; (iii) in sub-section (3), for the formula substitute— " 5000 466P 640 18 − "; s. 4 -- 5 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 5 (iv) in sub-section (4), for the formula substitute— " ) 000 217 P 3 ( 100 ) P 000 200 ( 466 D − − × "; (c) in section 63— (i) in sub-section (1)(c), for "$115 000" substitute "$150 000"; (ii) in sub-section (2)(c), for "$115 000 but does not exceed $165 000" substitute "$150 000 but does not exceed $200 000"; (iii) in sub-section (3), for the formula substitute— " ) 000 217 P 3 ( 100 ) P 000 200 ( 466 D − − × ". 5. Capital reductions, rights alterations and allotment of shares by direction In sections 94(3) and 97(2)(c) of the Duties Act 2000, for "1 July 2003" substitute "1 July 2002". 6. Transitional provision At the end of Schedule 2 to the Duties Act 2000 insert— "18. State Taxation Acts (Further Tax Reform) Act 2002 Sections 59, 60, 61, 62 and 63, as in force immediately before the commencement of section 4 of the State Taxation Acts (Further Tax Reform) Act 2002, continue to apply to a transfer that takes place on or after that commencement if the contract of sale giving rise to the transfer was entered into before that commencement.". s. 5 -- 6 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 6 7. Consequential amendment of State Taxation Acts (Taxation Reform Implementation) Act 2001 In section 2(4) of the State Taxation Acts (Taxation Reform Implementation) Act 2001, for "1 July 2003" substitute "1 July 2002". __________________ s. 7 See: Act No. 48/2001. Statute Book: www.dms. dpc.vic. gov.au -- 7 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 7 PART 3—LAND TAX ACT 1958 8. Increase in land tax threshold (1) In section 7A of the Land Tax Act 1958— (a) for "2001" substitute "2002"; (b) for "$125" substitute "$150". (2) In the Second Schedule to the Land Tax Act 1958— (a) in the heading to clause 4, omit "and subsequent years"; (b) in clause 4, omit "or a subsequent year". (3) In the Second Schedule to the Land Tax Act 1958, after clause 4 insert— "5. Land tax for 2003 and subsequent years If the total unimproved value of land of an owner as assessed under this Act for 2003 or a subsequent year is not less than the amount shown in column 1 of an item in Table E and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item. TABLE E Item Column 1 Column 2 Column 3 $ $ 1. 0 150 000 Nil 2. 150 000 200 000 $150 and 0⋅1 cents for each $1 of the value that exceeds $150 000 3. 200 000 540 000 $200 and 0⋅2 cents for each $1 of the value that exceeds $200 000 4. 540 000 675 000 $880 and 0⋅5 cents for each $1 of the value that exceeds $540 000 See: Act No. 6289/1958. Reprint No. 11 as at 18 October 2001 and amending Act No. 79/2001. LawToday: www.dms. dpc.vic. gov.au s. 8 -- 8 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 8 Item Column 1 Column 2 Column 3 $ $ 5. 675 000 810 000 $1555 and 1 cent for each $1 of the value that exceeds $675 000 6. 810 000 1 080 000 $2905 and 1⋅75 cents for each $1 of the value that exceeds $810 000 7. 1 080 000 1 620 000 $7630 and 2⋅75 cents for each $1 of the value that exceeds $1 080 000 8. 1 620 000 2 700 000 $22 480 and 3 cents for each $1 of the value that exceeds $1 620 000 9. 2 700 000 $54 880 and 5 cents for each $1 of the value that exceeds $2 700 000". __________________ s. 8 -- 9 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 9 PART 4—PAY-ROLL TAX ACT 1971 9. Reduction in pay-roll tax rate In section 7(1) of the Pay-roll Tax Act 1971— (a) in paragraph (i), for "2003" substitute "2002"; (b) in paragraph (j)— (i) for "2003" substitute "2002 and before the month of July 2003"; (ii) for "or (i)." substitute "or (i); and"; (c) after paragraph (j) insert— "(k) at the rate of 5⋅25% in respect of such of those wages as are paid or payable after the month of June 2003 and are not liable to pay-roll tax at the rate prescribed in paragraph (c), (d), (e), (f), (g), (h), (i) or (j).". 10. Increase in pay-roll tax threshold brought forward In the Pay-roll Tax Act 1971— (a) in section 9A(3A)(ga), in paragraphs (h) and (i), for "2003" substitute "2002"; (b) in section 9B(1), in the definition of "prescribed amount", in paragraph (a)(iv) and (v) and paragraph (b)(vii), (viii) and (ix), for "2003" substitute "2002"; (c) in section 11A(2), in paragraphs (h) and (i), for "2003" substitute "2002"; (d) in Schedule Two, in Parts O, P, Q and R, for "2003" substitute "2002". ═══════════════ See: Act No. 8154/1971. Reprint No. 8 as at 15 July 2001 and amending Act Nos 82/2001 and 11/2002. LawToday: www.dms. dpc.vic. gov.au s. 9 -- 10 of 11 -- Act No. 29/2002 State Taxation Acts (Further Tax Reform) Act 2002 10 ENDNOTES † Minister's second reading speech— Legislative Assembly: 9 May 2002 Legislative Council: 30 May 2002 The long title for the Bill for this Act was "to amend the Duties Act 2000, the Land Tax Act 1958 and the Pay-roll Tax Act 1971 to implement further tax reform and for other purposes." Endnotes -- 11 of 11 --