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State Taxation Acts Amendment Act 2017
No. of 2017
TABLE OF PROVISIONS
Clause Page
Part 1--Preliminary 1
1 Purposes 1
2 Commencement 4
Part 2--Amendment of Duties Act 2000 5
Division 1--Off-the-plan purchases, principal places of residence
and first home buyers 5
3 Definitions 5
4 What is the consideration for the transfer of dutiable property? 5
5 Application of Division 5
6 Provisions for determining consideration 6
7 Heading to Division 4A of Part 5 of Chapter 2 substituted 7
8 Definitions 7
9 What is a PPR transfer? 7
10 Rates of duty for certain PPR transfers 8
11 Section 57JA substituted and new section 57JB inserted 9
12 Residence requirement 10
13 Variation of residence requirement 11
14 Liability for duty if residence requirement not complied with 12
15 Transferee to notify Commissioner of change in circumstances 12
16 Heading to Division 5 of Part 5 of Chapter 2 substituted 13
17 Election to receive eligible pensioner exemption/concession 13
Division 2--Provision of information 13
18 What is the consideration for the transfer of dutiable property? 13
19 Records to be kept 14
20 Joint and several liability for additional duty 14
21 Provisions for determining consideration 14
22 Parties required to provide information to Commissioner 15
Division 3--Sub-sale transactions 15
23 Definitions 15
24 How duty is charged on transfer 16
25 Dutiable value of transactions 17
26 Exemptions and concessions 18
27 How duty is charged on transfer 18
i
Clause Page
28 Dutiable value of transactions 19
29 Exemptions and concessions 20
30 New Division 3A of Part 4A of Chapter 2 inserted 20
31 Heading to Division 4 of Part 4A of Chapter 2 amended 28
32 Application of Division 28
33 How duty is charged on transfer 29
34 Dutiable value of transactions 30
35 Who is liable to pay the duty? 31
36 Exemptions and concessions 31
37 Provisions for determining consideration 31
Division 4--Offences 31
38 Aggregation of certain dutiable transactions 31
39 Misleading information--Tax avoidance schemes 32
40 Misleading information--Acquisition of interests in certain
landholders 32
Division 5--Marriage and domestic relationships exemption 33
41 Section 43 substituted and new sections 43A to 43D inserted 33
Division 6--Financial exchanges 37
42 Definitions 37
43 Meaning of landholder 37
44 New clause 40 of Schedule 2 inserted--transitional provision
relating to financial exchanges 38
Division 7--General insurance 38
45 What insurance is exempt from duty? 38
Division 8--Motor vehicle duty 39
46 What is the rate of duty? 39
Division 9--Transitional arrangements 40
47 New clauses 41 and 42 inserted in Schedule 2 40
Part 3--Amendment of First Home Owner Grant Act 2000 41
48 Criterion 5--Residence requirement 41
49 Amount of grant 41
Part 4--Amendment of Land Tax Act 2005 44
50 Definitions 44
51 General imposition of land tax 44
52 Taxable value of land 45
53 New Division 6 of Part 2 inserted 45
54 What is the rate of land tax? 49
55 Certain taxable land assessed separately 50
56 New section 37A inserted 50
ii
Clause Page
57 Assessment of joint owners of land 50
58 New section 38A inserted 51
59 Assessment of owner of land on which there are home units 51
60 Land tax on parts of land 51
61 Grouping of related corporations 51
62 Absence from principal place of residence 52
63 Retirement villages 52
64 Exemption of land under construction for certain exempt uses 52
65 New Division 9 of Part 4 inserted 53
66 New Schedule 2A inserted 55
67 New clause 16 inserted in Schedule 3 56
Part 5--Amendment of Payroll Tax Act 2007 57
68 Definitions 57
69 New definition inserted 57
70 New section 12A inserted 58
71 Definitions for the purposes of Schedule 1 59
72 Definitions for the purposes of Part 3 of Schedule 1 60
73 New clause 7A of Schedule 1 inserted 61
74 Clause 9 of Schedule 1 substituted and new clauses 9A and 9B
of Schedule 1 inserted 61
75 Calculation of monthly payroll tax 64
76 Rate of payroll tax 64
77 Clause 8 of Schedule 2 substituted and new clauses 8A and 8B
of Schedule 2 inserted 64
78 Consequential amendments to variable R in formulas set out in
clauses 4 and 12 of Schedule 2 69
Part 6--Amendment of Planning and Environment Act 1987 70
79 CPI adjusted amount 70
Part 7--Amendment of Taxation Administration Act 1997 71
Division 1--Meaning of taxation laws 71
80 Meaning of taxation laws 71
Division 2--Record keeping and general offences 71
81 Instruments and returns to include all relevant information 71
82 Inclusion of false or misleading information in records 72
83 Giving false or misleading information to tax officers 72
84 Deliberately omitting information 73
85 Criminal liability of officers of bodies corporate--accessorial
liability 73
86 Criminal liability of officers of bodies corporate--failure to
exercise due diligence 73
iii
Clause Page
Division 3--Reportable information 73
87 Definitions--reportable information 73
88 New Division 2B of Part 9 inserted 74
Division 4--Data matching amendments 75
89 Permitted disclosures to particular persons or for particular
purposes 75
Division 5--Consequential amendments on imposition of vacant
residential land tax 76
90 Definitions 76
91 Amount of penalty tax 76
92 Supreme Court--limitation of jurisdiction 76
Part 8--Amendment of Unclaimed Money Act 2008 77
93 Giving false or misleading information to an authorised person 77
94 Criminal liability of officers of bodies corporate--accessorial
liability 77
95 Criminal liability of officers of bodies corporate--failure to
exercise due diligence 78
96 Registrar may pay owner 78
97 New section 33A inserted 78
Part 9--Repeal of amending Act 80
98 Repeal of amending Act 80
═════════════
Endnotes 81
1 General information 81
iv
State Taxation Acts Amendment
Act 2017
No. of 2017
[Assented to ]
The Parliament of Victoria enacts:
Part 1--Preliminary
1 Purposes
The main purposes of this Act are--
(a) to amend the Duties Act 2000--
(i) in relation to off-the-plan purchases,
first home buyer exemptions and
concessions, and principal place of
residence concessions; and
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 1--Preliminary
(ii) to make further provision for
transactions that are treated as sub-sale
arrangements and the imposition of
duty on those transactions; and
(iii) in relation to the requirements for the
provision of information for certain
transactions and related offences; and
(iv) in relation to an exemption for
the transfer of a principal place of
residence between domestic partners
or spouses; and
(v) in relation to certain landholders and
financial exchanges; and
(vi) to provide for an exemption from
insurance duty for agricultural
insurance products; and
(vii) to increase the rate of motor vehicle
duty for new and near new passenger
vehicles; and
(b) to amend the First Home Owner Grant
Act 2000--
(i) to exempt members of the Australian
Defence Force from the residence
requirement; and
(ii) to increase the first home owner grant
to $20 000 for purchases of new homes
in regional Victoria; and
(c) to amend the Land Tax Act 2005 to impose
vacant residential land tax; and
(d) to amend the Payroll Tax Act 2007--
(i) to bring forward, by one year, the
annual threshold amounts and monthly
base deductible amounts which were to
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 1--Preliminary
apply on and after the 2018 financial
years; and
(ii) to provide for a lower rate of payroll
tax to be paid by certain Victorian
regional employers in respect of taxable
wages those employers pay to their
employees who perform their services
mainly in regional Victoria; and
(e) to amend the Planning and Environment
Act 1987 in relation to the calculation of the
metropolitan planning levy threshold; and
(f) to amend the Taxation Administration
Act 1997--
(i) in relation to the definition of a taxation
law for the purposes of that Act; and
(ii) in relation to offences relating to false
and misleading statements and
omissions; and
(iii) to authorise the collection and
disclosure of information about
transfers of interests in real property
for the purposes of reporting to the
Commissioner of Taxation of the
Commonwealth; and
(iv) in relation to the disclosure of
information by taxation officers for
verification purposes; and
(v) to enable the vacant residential land tax
to be administered in the same way as
other land taxes; and
(g) to amend the Unclaimed Money Act 2008
in relation to offences about the provision of
false or misleading information.
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 1--Preliminary
2 Commencement
(1) This Act (except Divisions 1 to 5 and 7 to 9 of
Part 2 and Parts 3, 4, 5, 6, 7 and 8) comes into
operation on the day on which it receives the
Royal Assent.
(2) Divisions 1, 2, 3, 4 and 9 of Part 2, Part 7
(except Division 5) and Parts 3, 5, 6 and 8 come
into operation on the day after the day on which
this Act receives the Royal Assent.
(3) Divisions 5, 7 and 8 of Part 2 come into operation
on 1 July 2017.
(4) Part 4 and Division 5 of Part 7 come into
operation on 1 January 2018.
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 2--Amendment of Duties Act 2000
Part 2--Amendment of Duties Act 2000
Division 1--Off-the-plan purchases, principal
places of residence and first home buyers
3 Definitions
In section 3(1) of the Duties Act 2000 insert the
following definition--
"PPR transfer has the meaning given by
section 57I;".
4 What is the consideration for the transfer of
dutiable property?
(1) After section 21(1) of the Duties Act 2000
insert--
"(2) The consideration for a PPR transfer is to be
adjusted under subsection (3) or (4) only for
the following purposes--
(a) calculating duty under section 57J;
(b) applying an exemption or concession
under section 57JA.".
(2) In section 21(3) of the Duties Act 2000, for
"does not include" substitute "is to be adjusted to
exclude".
(3) In section 21(4) of the Duties Act 2000, for
"taken not to include" substitute "to be adjusted
to exclude".
5 Application of Division
In the note at the foot of section 32B(6) of the
Duties Act 2000, for "consideration does not
include" substitute "in certain circumstances
consideration is to be adjusted to exclude".
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No. of 2017
Part 2--Amendment of Duties Act 2000
6 Provisions for determining consideration
(1) After section 32V(2) of the Duties Act 2000
insert--
"(2A) The consideration for a relevant transaction
of a type specified in subsection (2B) is to be
adjusted under subsection (3) or (4) only for
the following purposes--
(a) calculating duty under section 57J, if
that section applies by operation of
section 32G, 32N, 32OE or 32U;
(b) applying an exemption or a concession
under section 57JA that applies by
operation of section 32G, 32N, 32OE
or 32U.
(2B) For the purposes of subsection (2A), the
following types of relevant transactions are
specified--
(a) a sale contract referred to in
section 32C(1)(a) or 32J(1)(a) that
would result in a PPR transfer if it were
completed by the first purchaser;
(b) an option referred to in
section 32OA(1)(a) or 32Q(1)(a) that
would result in a PPR transfer if the
transfer contemplated by the option
were completed by the first purchaser;
(c) a subsequent transaction referred
to in section 32C(1)(b), 32J(1)(b),
32OA(1)(b) or 32Q(1)(b) that results in
a PPR transfer when the property the
subject of the transaction is transferred
to the final subsequent purchaser;
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No. of 2017
Part 2--Amendment of Duties Act 2000
(d) a subsequent transaction referred
to in section 32C(1)(c), 32J(1)(c),
32OA(1)(c) or 32Q(1)(c) that would
result in a PPR transfer if the property
the subject of the transaction were
transferred to the subsequent
purchaser.".
(2) In section 32V(3) of the Duties Act 2000, for
"does not include" substitute "is to be adjusted to
exclude".
(3) In section 32V(4) of the Duties Act 2000, for
"taken not to include" substitute "to be adjusted
to exclude".
7 Heading to Division 4A of Part 5 of Chapter 2
substituted
For the heading to Division 4A of Part 5 of
Chapter 2 of the Duties Act 2000 substitute--
"Division 4A--Principal places of
residence and first home buyers".
8 Definitions
In section 57G(1) of the Duties Act 2000 insert
the following definition--
"PPR concessional rate means a rate of duty
specified in section 57J for a PPR transfer
where the dutiable value of the dutiable
property is more than $130 000 but not
more than $550 000;".
9 What is a PPR transfer?
In section 57I(1) of the Duties Act 2000--
(a) in paragraph (c), for "1 January 2007; and"
substitute "1 January 2007.";
(b) paragraph (d) is repealed.
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No. of 2017
Part 2--Amendment of Duties Act 2000
10 Rates of duty for certain PPR transfers
(1) In the heading to section 57J of the Duties
Act 2000, for "Concessional rate" substitute
"Rates".
(2) In section 57J of the Duties Act 2000 omit
"more than $130 000 but".
(3) For the table in section 57J of the Duties
Act 2000 substitute--
"
Item Dutiable value of Rate of duty
the dutiable
property
1 Not more than 1⋅4% of the dutiable
$25 000 value
2 More than $25 000 $350 plus 2⋅4% of
but not more than that part of the
$130 000 dutiable value that
exceeds $25 000
3 More than $130 000 $2870 plus 5% of that
but not more than part of the dutiable
$440 000 value that exceeds
$130 000
4 More than $440 000 $18 370 plus 6% of
but not more than that part of the
$550 000 dutiable value that
exceeds $440 000
".
(4) For the note at the foot of section 57J of the
Duties Act 2000 substitute--
"Note
A PPR transfer where the dutiable value of the dutiable
property is more than $550 000 is chargeable with duty at
the rate set out in section 28(1), subject to any exemption or
concession.".
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Part 2--Amendment of Duties Act 2000
11 Section 57JA substituted and new section 57JB
inserted
For section 57JA of the Duties Act 2000
substitute--
"57JA Exemption or concession for certain first
home buyers on PPR transfers
(1) A transferee is entitled to an exemption from
duty under this Chapter in respect of a PPR
transfer if--
(a) at the time of the transfer, the transferee
satisfies the requirements specified in
section 57JB in respect of the PPR
transfer; and
(b) the dutiable value of the dutiable
property the subject of the PPR transfer
is not more than $600 000.
(2) A transferee is entitled to a concession from
duty under this Chapter in respect of a PPR
transfer if--
(a) at the time of the transfer, the transferee
satisfies the requirements specified in
section 57JB in respect of the PPR
transfer; and
(b) the dutiable value of the dutiable
property the subject of the PPR transfer
is more than $600 000 but not more
than $750 000.
(3) The concession is an amount calculated in
accordance with the formula--
A − $600 000
× B
- $150 000
where--
A is the dutiable value of the property;
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 2--Amendment of Duties Act 2000
B is the amount of duty paid or payable
(but for this section) on the PPR
transfer.
57JB Requirements--first home buyers
For the purposes of section 57JA, the
requirements for a transferee in respect of a
PPR transfer are that a first home owner
grant--
(a) is paid or payable under section 7 of the
First Home Owner Grant Act 2000 to
the transferee in respect of the PPR
transfer; or
(b) would be payable under section 7 of the
First Home Owner Grant Act 2000
to the transferee in respect of the PPR
transfer except that any of the following
apply in relation to the PPR transfer--
(i) the home the subject of the PPR
transfer is not a new home within
the meaning of that Act;
(ii) the PPR transfer does not meet the
requirement in section 13(1A) of
that Act.".
12 Residence requirement
For section 57K(1) of the Duties Act 2000
substitute--
"(1) The following are subject to the requirement
that the transferee occupies the land as the
transferee's principal place of residence for
a continuous period of at least 12 months
commencing within the 12 month period
immediately after the transferee became
entitled to possession of the land--
(a) a PPR concessional rate;
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No. of 2017
Part 2--Amendment of Duties Act 2000
(b) an exemption or concession from duty
under section 57JA;
(c) an adjustment of consideration
under section 21(3) or (4) or 32V(3)
or (4).".
13 Variation of residence requirement
For section 57L(2) of the Duties Act 2000
substitute--
"(2) If the Commissioner determines that a
temporary absence from residence does
not break the continuity of residence,
the transferee is not entitled to a PPR
concessional rate, exemption or concession
or an adjustment specified in subsection (2A)
in respect of any other PPR transfer during
the period of temporary absence unless the
transferee pays the difference between--
(a) the duty paid on the original PPR
transfer; and
(b) the duty on the original PPR transfer
calculated--
(i) at the rate set out in section 28(1);
and
(ii) without any adjustment of
consideration under section 21(3)
or (4) or 32V(3) or (4).
(2A) For the purposes of subsection (2), the
following are specified--
(a) an exemption or concession from duty
under section 57JA;
(b) an adjustment of consideration under
section 21(3) or (4) or 32V(3) or (4).".
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 2--Amendment of Duties Act 2000
14 Liability for duty if residence requirement not
complied with
(1) For section 57M(1)(a) of the Duties Act 2000
substitute--
"(a) the PPR transfer is chargeable with duty--
(i) at the rate set out in section 28(1)
without any exemption or concession
from duty under section 57JA, subject
to any other exemption or concession;
and
(ii) without any adjustment of
consideration under section 21(3)
or (4) or 32V(3) or (4); and".
(2) For section 57M(4) of the Duties Act 2000
substitute--
"(4) If the residence requirement for a PPR
transfer is not complied with, the transferee
is not entitled to any of the following in
respect of any other PPR transfer until the
transferee has paid duty for which the
transferee is liable because of this section--
(a) a PPR concessional rate;
(b) an exemption or concession from duty
under section 57JA;
(c) an adjustment of consideration under
section 21(3) or (4) or 32V(3) or (4).".
15 Transferee to notify Commissioner of change in
circumstances
For section 57N(1) of the Duties Act 2000
substitute--
"(1) A transferee who has received any of the
following must lodge a written notice with
the Commissioner within 30 days after
becoming aware of any circumstances that
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 2--Amendment of Duties Act 2000
may result in the residence requirement not
being complied with--
(a) a PPR concessional rate;
(b) an exemption or concession from duty
under section 57JA;
(c) an adjustment of consideration under
section 21(3) or (4) or 32V(3) or (4).".
16 Heading to Division 5 of Part 5 of Chapter 2
substituted
For the heading to Division 5 of Part 5 of
Chapter 2 of the Duties Act 2000 substitute--
"Division 5--Eligible pensioner and
eligible first home owner exemptions
and concessions".
17 Election to receive eligible pensioner
exemption/concession
In section 60A(1)(b)(i), (2)(b)(i) and (3)(a) of the
Duties Act 2000, for "a reduction of his or her
liability for duty" substitute "an exemption or
concession from duty".
Division 2--Provision of information
18 What is the consideration for the transfer of
dutiable property?
(1) In section 21(4A)(c), (d) and (e) of the Duties
Act 2000, for "a statutory declaration in the
approved form" substitute "information in the
approved form given".
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No. of 2017
Part 2--Amendment of Duties Act 2000
(2) At the foot of section 21(4A) of the Duties
Act 2000 insert--
"Note
Information may be given by means of electronic
communication--see the Electronic Transactions
(Victoria) Act 2000.".
19 Records to be kept
In section 21B of the Duties Act 2000, for
"makes a statutory declaration" substitute
"gives information".
20 Joint and several liability for additional duty
In section 21E of the Duties Act 2000--
(a) in paragraph (a), for "makes a statutory
declaration" substitute "gives information";
(b) in paragraph (b), for "statutory declaration"
substitute "information".
21 Provisions for determining consideration
(1) In section 32V(4A)(c), (d) and (e) of the Duties
Act 2000, for "a statutory declaration in the
approved form" substitute "information in the
approved form given".
(2) At the foot of section 32V(4A) of the Duties
Act 2000 insert--
"Note
Information may be given by means of electronic
communication--see the Electronic Transactions
(Victoria) Act 2000.".
(3) In section 32V(4B) of the Duties Act 2000,
for "a statutory declaration made" substitute
"information given".
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No. of 2017
Part 2--Amendment of Duties Act 2000
22 Parties required to provide information to
Commissioner
(1) In section 32X(2) and (3) of the Duties Act 2000,
for "a statutory declaration" substitute
"information".
(2) At the foot of section 32X of the Duties Act 2000
insert--
"Note
Information may be given by means of electronic
communication--see the Electronic Transactions
(Victoria) Act 2000.".
Division 3--Sub-sale transactions
23 Definitions
(1) In section 32A(1) of the Duties Act 2000--
(a) after paragraph (b) of the definition of first
purchaser insert--
"(ba) for the purposes of Division 3A, has the
meaning given in section 32O(1)(a);";
(b) insert the following definition--
"specified Chapter 2 exemption means an
exemption under Chapter 2 other than
the following--
(a) an exemption under Division 1
or 2 of Part 5;
(b) an exemption under section 43;";
(c) after paragraph (b) of the definition of
subsequent purchaser insert--
"(ba) for the purposes of Division 3A, has the
meaning given in section 32O(1)(b);";
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No. of 2017
Part 2--Amendment of Duties Act 2000
(d) after paragraph (b) of the definition of
subsequent transaction insert--
"(ba) for the purposes of Division 3A, has the
meaning given in section 32O(3);";
(e) after paragraph (b) of the definition of
transfer right insert--
"(ba) for the purposes of Division 3A, has the
meaning given in section 32O(4);";
(f) in paragraph (c) of the definition of transfer
right, for "section 32P(1)(b)" substitute
"section 32P(4)".
(2) Section 32A(2) of the Duties Act 2000 is
repealed.
24 How duty is charged on transfer
After section 32C(4) of the Duties Act 2000
insert--
"(5) Despite subsection (1), duty is not charged
under subsection (1)(a) or (c) (as the case
requires) on an initial transaction--
(a) if a person obtains a transfer right under
a latter transaction that is greater than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the initial transaction; and
(b) if a person obtains a transfer right under
a latter transaction that is less than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the latter transaction.
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No. of 2017
Part 2--Amendment of Duties Act 2000
Examples
1 Persons A and B enter into a sale contract for
dutiable property (the initial transaction) and
each obtain a transfer right to a 50% interest in
the property. Under a subsequent transaction
immediately following the sale contract (a latter
transaction), person A obtains a transfer right
in respect of a 100% interest in the property.
Duty is not charged under subsection (1)(a) in
respect of the sale contract to the extent of the
transfer right obtained by person A under the
initial transaction (50%).
2 Persons C and D enter into a subsequent
transaction in relation to dutiable property
(the initial transaction) and each obtain a
transfer right to a 50% interest in the property.
Under a further subsequent transaction
immediately following the initial transaction
(a latter transaction), person C obtains a transfer
right in respect of a 75% interest in the property
and person D obtains a transfer right in respect
of a 25% interest in the property. Duty is not
charged under subsection (1)(c) in respect of
the initial transaction to the extent of--
• the transfer right obtained by person C
under the initial transaction (50%); and
• the transfer right obtained by person D
under the latter transaction (25%).
(6) In subsection (5)--
initial transaction means the sale contract
or a subsequent transaction;
latter transaction means a subsequent
transaction immediately following an
initial transaction.".
25 Dutiable value of transactions
(1) In section 32D(2)(a) of the Duties Act 2000
omit "excluded costs or".
(2) Section 32D(3) of the Duties Act 2000 is
repealed.
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No. of 2017
Part 2--Amendment of Duties Act 2000
26 Exemptions and concessions
In section 32G(1) and (3) of the Duties Act 2000,
for "this Chapter" substitute "a specified
Chapter 2 exemption".
27 How duty is charged on transfer
(1) In section 32J(5) of the Duties Act 2000--
(a) in paragraph (b), for "transfer right; or"
substitute "transfer right.";
(b) paragraph (c) is repealed.
(2) After section 32J(6) of the Duties Act 2000
insert--
"(7) Despite subsection (1), duty is not charged
under this Division on the dutiable value
of a subsequent transaction referred to in
subsection (1)(b) or (c) (as the case requires)
if duty is charged on the subsequent
transaction under Division 2.
(8) Despite subsection (1), duty is not charged
under subsection (1)(a) or (c) (as the case
requires) on an initial transaction--
(a) if a person obtains a transfer right under
a latter transaction that is greater than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the initial transaction; and
(b) if a person obtains a transfer right under
a latter transaction that is less than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the latter transaction.
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Part 2--Amendment of Duties Act 2000
Examples
1 Persons A and B enter into a sale contract for
dutiable property (the initial transaction) and
each obtain a transfer right to a 50% interest in
the property. Under a subsequent transaction
immediately following the sale contract (a latter
transaction), person A obtains a transfer right
in respect of a 100% interest in the property.
Duty is not charged under subsection (1)(a) in
respect of the sale contract to the extent of the
transfer right obtained by person A under the
initial transaction (50%).
2 Persons C and D enter into a subsequent
transaction in relation to dutiable property
(the initial transaction) and each obtain a
transfer right to a 50% interest in the property.
Under a further subsequent transaction
immediately following the initial transaction
(a latter transaction), person C obtains a transfer
right in respect of a 75% interest in the property
and person D obtains a transfer right in respect
of a 25% interest in the property. Duty is not
charged under subsection (1)(c) in respect of
the initial transaction to the extent of--
• the transfer right obtained by person C
under the initial transaction (50%); and
• the transfer right obtained by person D
under the latter transaction (25%).
(9) In subsection (8)--
initial transaction means the sale contract or
a subsequent transaction;
latter transaction means a subsequent
transaction immediately following an
initial transaction.".
28 Dutiable value of transactions
(1) In section 32K(2)(a) of the Duties Act 2000
omit "excluded costs or".
(2) Section 32K(3) of the Duties Act 2000 is
repealed.
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Part 2--Amendment of Duties Act 2000
29 Exemptions and concessions
In section 32N(1) and (3) of the Duties Act 2000,
for "this Chapter" substitute "a specified
Chapter 2 exemption".
30 New Division 3A of Part 4A of Chapter 2 inserted
After Division 3 of Part 4A of Chapter 2 of the
Duties Act 2000 insert--
"Division 3A--Transfers resulting from
options involving additional
consideration
32O Application of Division
(1) This Division applies to a transfer of dutiable
property referred to in section 10(1)(a) or (d)
if--
(a) the owner of the property (the vendor)
grants an option to, or is granted an
option by, another person (the first
purchaser); and
(b) any of the following persons
(a subsequent purchaser) obtains
or assumes a transfer right in relation
to the property--
(i) a person other than the first
purchaser;
(ii) the first purchaser and a person
other than the first purchaser;
(iii) if there is more than one first
purchaser, one or more of the first
purchasers in different proportions
from those specified in the option;
and
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(c) a subsequent purchaser or an associate
of a subsequent purchaser gives or
agrees to give additional consideration
in order for the subsequent purchaser to
obtain or assume the transfer right; and
(d) the vendor transfers the property or any
part of it to a subsequent purchaser.
(2) It is immaterial whether a subsequent
purchaser obtains or assumes a transfer
right--
(a) by way of an assignment, nomination,
novation, option, contract of sale or
otherwise; and
(b) from the first purchaser or from another
subsequent purchaser.
(3) Each assignment, nomination, novation,
option, contract of sale or other arrangement
by which a subsequent purchaser obtains
or assumes a transfer right is called a
subsequent transaction.
(4) In this section--
additional consideration for a transfer
right means any consideration given
or agreed to be given by a subsequent
purchaser or an associate of a
subsequent purchaser in order for the
subsequent purchaser to obtain or
assume the transfer right, other than
the following--
(a) if the subsequent purchaser
obtained or assumed the transfer
right from the first purchaser, any
consideration equal to the amount
(if any) that the first purchaser
paid to obtain the transfer right;
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(b) if the subsequent purchaser
obtained or assumed the transfer
right from another subsequent
purchaser, any consideration
equal to the amount (if any) that
the other subsequent purchaser
paid to obtain or assume the
transfer right;
(c) any reimbursement of excluded
costs;
(d) any increase in consideration that
arises because of the operation of
section 32V;
parallel arrangement means an arrangement
entered into by a subsequent purchaser
or an associate of the subsequent
purchaser before, at the time or within
12 months after the subsequent
purchaser obtains or assumes a transfer
right, under which the following
occurs--
(a) if the subsequent purchaser
obtained or assumed the transfer
right from a first purchaser--the
first purchaser or an associate of
the first purchaser is required to
construct, or to arrange for the
construction of, improvements to
the property the subject of the
transfer right for consideration;
(b) if the subsequent purchaser
obtained or assumed the transfer
right from another subsequent
purchaser--the other subsequent
purchaser or an associate of the
other subsequent purchaser is
required to construct, or to
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arrange for the construction of,
improvements to the property the
subject of the transfer right for
consideration;
transfer right means--
(a) a right to enter into a contract of
sale of a property or any part of a
property; or
(b) a right to a transfer of a property
or any part of a property; or
(c) an obligation to enter into a
contract of sale of a property or
any part of a property; or
(d) an obligation to accept a transfer
of a property or any part of a
property.
(5) For the purposes of the definition of
additional consideration in subsection (4),
a subsequent purchaser or an associate of a
subsequent purchaser who enters into a
parallel arrangement is taken to have given
or agreed to give the consideration under
that arrangement in order for the subsequent
purchaser to obtain or assume the transfer
right in addition to any other consideration
given or agreed to be given in order for the
subsequent purchaser to obtain or assume
the transfer right.
(6) For the purposes of subsection (4) and (5),
section 32V(3) does not apply in determining
the consideration under a parallel
arrangement.
Note
Section 32V(3) provides that in certain circumstances
consideration is to be adjusted to exclude any amount
paid or payable in respect of the construction of a
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building to be constructed on land on or after the date
of the relevant transaction.
32OA How duty is charged on transfer
(1) Duty on a transfer to which this Division
applies is not charged in respect of the
transfer from the vendor to the transferee,
but is charged separately and distinctly on--
(a) the dutiable value of the option; and
(b) the dutiable value of the subsequent
transaction by which the final
subsequent purchaser obtained or
assumed the transfer right; and
(c) if there were any other subsequent
transactions, the dutiable value of each
of those transactions.
(2) Duty is charged at the rate set out in Part 3
on the dutiable values referred to in
subsection (1).
(3) Despite subsection (1), duty is not charged
under this Division on the dutiable value
of a subsequent transaction referred to in
subsection (1)(b) or (c) (as the case requires)
if duty is charged on the subsequent
transaction under Division 2 or 3.
(4) Despite subsection (1), duty is not charged
under subsection (1)(a) or (c) (as the case
requires) on an initial transaction--
(a) if a person obtains a transfer right under
a latter transaction that is greater than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the initial transaction; and
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(b) if a person obtains a transfer right under
a latter transaction that is less than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the latter transaction.
Example
A vendor grants an option that entitles persons A
and B to require the vendor to enter into a contract
of sale of dutiable property (the initial transaction).
Under the option, persons A and B each obtain a
transfer right to a 50% interest in the property.
Under a subsequent transaction immediately
following the granting of the option (a latter
transaction), person A obtains a transfer right in
respect of a 100% interest in the property. Duty is
not charged under subsection (1)(a) in respect of
the option to the extent of the transfer right obtained
by person A under the initial transaction (50%).
(5) In subsection (4)--
initial transaction means the option or a
subsequent transaction;
latter transaction means a subsequent
transaction immediately following
the initial transaction.
32OB Dutiable value of transactions
(1) For the purposes of this Division, the
dutiable value of the option referred to in
section 32OA(1)(a) is the greater of--
(a) the consideration that would need to be
given to complete the sale or transfer
contemplated by the option (including
any consideration already given for the
option); and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
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in the open market on the date on which
the option was granted.
(2) For the purposes of this Division, the
dutiable value of a subsequent transaction
referred to in section 32OA(1)(b) or (c) is the
greater of--
(a) the consideration given or agreed to
be given by the subsequent purchaser
or an associate of the subsequent
purchaser in order for the subsequent
purchaser to obtain or assume the
transfer right under the transaction,
other than any increase in consideration
that arises because of the operation of
section 32V; and
(b) the amount for which the property
might reasonably have been sold if it
had been sold, free from encumbrances,
in the open market on the date on which
the subsequent transaction was entered
into.
32OC When does the liability to duty arise?
A liability for duty charged by this Division
arises when the transfer occurs.
32OD Who is liable to pay the duty?
(1) Duty charged by this Division is payable--
(a) in the case of duty referred to in
section 32OA(1)(a)--by the first
purchaser;
(b) in the case of duty referred to in
section 32OA(1)(b)--by the final
subsequent purchaser;
(c) in the case of duty referred to in
section 32OA(1)(c)--by the subsequent
purchaser who obtains or assumes a
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transfer right under the relevant
subsequent transaction.
(2) A transferee who pays duty payable under
this Division by another person may recover
the amount of that duty as a debt due to the
transferee from the other person.
32OE Exemptions and concessions
(1) Duty is not chargeable under section
32OA(1)(a) if the option would be exempt
from duty under a specified Chapter 2
exemption if it were a transfer of dutiable
property to the first purchaser.
(2) If the first purchaser would be entitled to a
concession under this Chapter if the option
were a transfer to the first purchaser, the first
purchaser is entitled to that concession in
respect of duty charged under section
32OA(1)(a).
(3) Duty is not chargeable under section
32OA(1)(b) or (c) if the subsequent
transaction would be exempt from duty
under a specified Chapter 2 exemption if
it were a transfer of dutiable property to
the subsequent purchaser who obtains or
assumes the transfer right under the
subsequent transaction.
(4) If a subsequent purchaser would be entitled
to a concession under this Chapter if the
subsequent transaction were a transfer to
the subsequent purchaser, the subsequent
purchaser is entitled to that concession in
respect of duty charged under section
32OA(1)(b) or (c).".
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31 Heading to Division 4 of Part 4A of Chapter 2
amended
In the heading to Division 4 of Part 4A of
Chapter 2 of the Duties Act 2000, after
"options" insert "involving land development".
32 Application of Division
(1) In section 32P(1) of the Duties Act 2000--
(a) in paragraph (b), for "obtains the right
or assumes the obligation to enter into a
contract of sale of the property or any part of
it with the vendor or to have the property or
any part of it transferred to the subsequent
purchaser (a transfer right)" substitute
"obtains or assumes a transfer right in
relation to the property";
(b) in paragraph (b)(iii), after "those" insert
"specified".
(2) In section 32P(2) and (3) of the Duties Act 2000,
after "obtains" insert "or assumes".
(3) After section 32P(3) of the Duties Act 2000
insert--
"(4) In this section--
transfer right means--
(a) a right to enter into a contract of
sale of a property or any part of a
property; or
(b) a right to a transfer of a property
or any part of a property; or
(c) an obligation to enter into a
contract of sale of a property or
any part of a property; or
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(d) an obligation to accept a transfer
of a property or any part of a
property.".
33 How duty is charged on transfer
(1) In section 32Q(1)(b) of the Duties Act 2000,
after "obtained" insert "or assumed".
(2) In section 32Q(3) of the Duties Act 2000--
(a) in paragraph (b), for "occurred." substitute
"occurred; or";
(b) after paragraph (b) insert--
"(c) duty is charged on the option under
Division 3A.".
(3) In section 32Q(5) of the Duties Act 2000--
(a) in paragraph (a), after "obtain" insert
"or assume";
(b) in paragraph (b), for "a transfer right; or"
substitute "or assumed a transfer right.";
(c) paragraph (c) is repealed.
(4) After section 32Q(6) of the Duties Act 2000
insert--
"(7) Despite subsection (1), duty is not charged
under this Division on the dutiable value
of a subsequent transaction referred to in
subsection (1)(b) or (c) (as the case requires)
if duty is charged on the subsequent
transaction under Division 2, 3 or 3A.
(8) Despite subsection (1), duty is not charged
under subsection (1)(a) or (c) (as the case
requires) on an initial transaction--
(a) if a person obtains a transfer right under
a latter transaction that is greater than a
transfer right the person obtained under
the initial transaction--to the extent of
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the transfer right obtained by the person
under the initial transaction; and
(b) if a person obtains a transfer right under
a latter transaction that is less than a
transfer right the person obtained under
the initial transaction--to the extent of
the transfer right obtained by the person
under the latter transaction.
Example
A vendor grants an option that entitles persons A
and B to require the vendor to enter into a contract
of sale of dutiable property (the initial transaction).
Under the option, persons A and B each obtain a
transfer right to a 50% interest in the property.
Under a subsequent transaction immediately
following the granting of the option (a latter
transaction), person A obtains a transfer right in
respect of a 100% interest in the property. Duty is
not charged under subsection (1)(a) in respect of the
option to the extent of the transfer right obtained by
person A under the initial transaction (50%).
(9) In subsection (8)--
initial transaction means the option or a
subsequent transaction;
latter transaction means a subsequent
transaction immediately following an
initial transaction.".
34 Dutiable value of transactions
(1) In section 32R(2)(a) of the Duties Act 2000--
(a) after "obtain" insert "or assume";
(b) omit "excluded costs or".
(2) Section 32R(3) of the Duties Act 2000 is
repealed.
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35 Who is liable to pay the duty?
In section 32T(1)(c) of the Duties Act 2000, after
"obtains" insert "or assumes".
36 Exemptions and concessions
(1) In section 32U(1) of the Duties Act 2000, for
"this Chapter" substitute "a specified Chapter 2
exemption".
(2) In section 32U(3) of the Duties Act 2000--
(a) for "this Chapter" substitute "a specified
Chapter 2 exemption";
(b) after "obtains" insert "or assumes".
37 Provisions for determining consideration
In section 32V(1)(b) of the Duties Act 2000--
(a) after "Division" insert "3A or";
(b) in subparagraph (ii), after "obtain" insert
"or assume".
Division 4--Offences
38 Aggregation of certain dutiable transactions
(1) For the penalty at the foot of section 24(6) of the
Duties Act 2000 substitute--
"Penalty: 600 penalty units, in the case of a body
corporate;
120 penalty units, in any other case.".
(2) After section 24(6) of the Duties Act 2000
insert--
"(6A) A person does not commit an offence against
subsection (6) if the person has a reasonable
excuse for a failure to disclose details in
accordance with that subsection.".
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39 Misleading information--Tax avoidance schemes
For section 69D(2) of the Duties Act 2000
substitute--
"(2) The person must not, without reasonable
excuse, in the instrument or in any material
or data presented to the Commissioner--
(a) omit from, or fail to include, any fact or
circumstance affecting the liability of
any person for duty under this Chapter;
or
(b) give information about any fact or
circumstance affecting the liability of
any person for duty under this Chapter
that is false or misleading in a material
particular.
Penalty: 600 penalty units, in the case of a
body corporate;
120 penalty units, in any other
case.
Note
Section 130B of the Taxation Administration
Act 1997 applies to an offence against this
subsection.".
40 Misleading information--Acquisition of interests in
certain landholders
For section 89O(2) of the Duties Act 2000
substitute--
"(2) The person must not, without reasonable
excuse, in the instrument or in any material
or data presented to the Commissioner--
(a) omit from, or fail to include, any fact or
circumstance affecting the liability of
any person for duty under this Part; or
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(b) give information about any fact or
circumstance affecting the liability of
any person for duty under this Part that
is false or misleading in a material
particular.
Penalty: 600 penalty units, in the case of a
body corporate;
120 penalty units, in any other
case.
Note
Section 130B of the Taxation Administration
Act 1997 applies to an offence against this
subsection.".
Division 5--Marriage and domestic
relationships exemption
41 Section 43 substituted and new sections 43A to 43D
inserted
For section 43 of the Duties Act 2000
substitute--
"43 Marriage and domestic relationships--
transfer of principal place of residence
(1) No duty is chargeable under this Chapter
in respect of a transfer of dutiable property
from one person to another person, or from
2 persons to 1 of them, or from one person to
themselves and another person if--
(a) the persons are spouses or domestic
partners of each other; and
(b) the transaction meets the requirements
set out in subsection (2).
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Part 2--Amendment of Duties Act 2000
(2) For the purposes of subsection (1), the
requirements are--
(a) no person (other than a person referred
to in subsection (1)) takes or is entitled
to take an interest in the dutiable
property the subject of the transfer; and
(b) there is no consideration for the
transfer; and
(c) the property is residential property.
43A Residence requirement for section 43
exemption
(1) The exemption under section 43 is subject to
the requirement that a person who received
the exemption occupies the land as the
person's principal place of residence for a
continuous period of at least 12 months
commencing within the 12 month period
immediately after the transfer.
(2) The requirement under subsection (1) is
complied with if the land is occupied for the
period referred to in that subsection as the
principal place of residence of at least one
of the persons referred to in section 43(1)
(whether separately or together and whether
or not the same person occupies the land for
the whole period).
43B Variation of residence requirement for
section 43 exemption
(1) If satisfied there is a good reason for doing
so, the Commissioner may--
(a) reduce the period of residence required
by section 43A; or
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Part 2--Amendment of Duties Act 2000
(b) determine that a temporary absence
from residence does not break the
continuity of residence for the purposes
of section 43A; or
(c) extend the period in which the
residence required by section 43A
must begin.
(2) If the Commissioner determines that a
temporary absence from residence does not
break the continuity of residence, the person
who received an exemption under section 43
is not entitled to an exemption under that
section in respect of any other transfer during
the period of temporary absence unless the
person pays duty on the original transfer
calculated at the rate set out in section 28(1),
subject to any other exemption or
concession.
(3) If a person who is occupying land the subject
of a transfer to which an exemption under
section 43 applies as the person's principal
place of residence, or is temporarily absent
from the land in accordance with a
determination under subsection (1), dies,
the requirement under section 43A is taken
to have been complied with for the transfer.
43C Liability for duty if residence requirement
for section 43 exemption not complied
with
(1) If the period of residence required by
section 43A for an exemption under
section 43 is not complied with--
(a) the transfer is chargeable with duty at
the rate set out in section 28(1), subject
to any other exemption or concession;
and
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(b) the Commissioner may reassess duty on
the transfer accordingly.
(2) A liability for duty imposed because of
subsection (1) on the transfer arises when the
required period of residence for the transfer
is not complied with.
Note
Section 16 provides that a tax default does not occur if
the duty is paid within 30 days after the liability for
the duty arises.
(3) A reassessment referred to in subsection
(1)(b) is authorised if more than 5 years have
passed since the initial assessment was made.
Note
Section 9(3)(c) of the Taxation Administration
Act 1997 allows a reassessment to be made more than
5 years after the initial assessment if this is authorised
by a taxation law.
(4) If the period of residence required by
section 43A for an exemption under
section 43 is not complied with, the person
who received the exemption is not entitled
to an exemption under that section in respect
of any other transfer until the person has paid
duty for which the person is liable because of
this section.
43D Persons must notify Commissioner of
change in circumstance--section 43
exemption
(1) A person who has received an exemption
under section 43 must lodge a written notice
with the Commissioner within 30 days after
becoming aware of any circumstances that
may result in the residence requirement not
being complied with.
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(2) A failure of the person to comply
with subsection (1) does not affect the
Commissioner's power to exercise a
discretion under section 43B or to reassess
duty under section 43C.".
Division 6--Financial exchanges
42 Definitions
(1) In section 3(1) of the Duties Act 2000 insert the
following definitions--
"LSE means the London Stock Exchange;
NYSE means the New York Stock Exchange;".
(2) In section 3(1) of the Duties Act 2000--
(a) in the definition of listed company, in
paragraph (ab), after "on the" insert
"LSE, NYSE or";
(b) in the definition of listed trust, in
paragraph (ab), after "on the" insert
"LSE, NYSE or".
43 Meaning of landholder
After section 71(4) of the Duties Act 2000
insert--
"(5) A landholder that is a private company is
taken to be a listed company or a landholder
that is a private unit trust scheme is taken to
be a public unit trust scheme for the purposes
of this Part if--
(a) all the shares in the company or units in
the unit trust scheme are quoted on an
exchange that was previously a member
of the World Federation of Exchanges;
and
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Part 2--Amendment of Duties Act 2000
(b) all the shares in the company or units
in the unit trust scheme have been
quoted on the exchange referred to in
paragraph (a) for a period of 12 months
or more; and
(c) the Commissioner is satisfied it is
appropriate for the landholder to be
treated as a listed company or public
unit trust scheme.".
44 New clause 40 of Schedule 2 inserted--transitional
provision relating to financial exchanges
After clause 39 in Schedule 2 to the Duties
Act 2000 insert--
"40 State Taxation Acts Amendment
Act 2017--financial exchanges
A reference to an exchange of the
World Federation of Exchanges in the
definitions of listed company and listed
trust in section 3(1) is taken to have always
included a reference to the LSE and the
NYSE before the commencement of
Division 6 of Part 2 of the State Taxation
Acts Amendment Act 2017.".
Division 7--General insurance
45 What insurance is exempt from duty?
For section 196(e) of the Duties Act 2000
substitute--
"(e) crop insurance, being insurance covering
loss due to the destruction of, or physical
damage to, any crop of grain, fruit, vegetable
or other plant, where the destruction or
damage occurs while the crop is being
grown, harvested or stored;
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(ea) agricultural machinery insurance, being
insurance covering the breakdown of, or
physical damage to, a harvester, binder,
tractor, plough or other agricultural
implement or any equipment associated
with any such agricultural machinery;
(eb) livestock insurance, being insurance
covering loss due to any of the following--
(i) the death of, or physical damage to,
any animal, bee or bird, whether
domesticated or wild, or any egg
intended for hatching, including where
the death or damage occurs while the
animal, bee, bird or egg is being stored;
(ii) the death of, or physical damage to,
any genetic material of any livestock
referred to in paragraph (i), including
where the death or damage occurs
while the genetic material is being
stored;
(iii) the theft of any livestock referred to in
paragraph (i) or any genetic material
referred to in paragraph (ii);".
Division 8--Motor vehicle duty
46 What is the rate of duty?
(1) In section 218(1)(a)(ia) of the Duties Act 2000,
for "$6.40 per $200" substitute "$8.40 per $200".
(2) In section 218(1)(ab) of the Duties Act 2000, for
"$6.40 per $200" substitute "$8.40 per $200".
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Division 9--Transitional arrangements
47 New clauses 41 and 42 inserted in Schedule 2
After clause 40 of Schedule 2 to the Duties
Act 2000 insert--
"41 State Taxation Acts Amendment
Act 2017--Off-the-plan purchases and
principal place of residence
Despite clause 27, sections 21, 32B(6), 32V,
57I(1), 57J, 57JA, 57K(1), 57L(2), 57M(1)
and (4), 57N(1) and 60A, as in force
immediately before the commencement of
Division 1 of Part 2 of the State Taxation
Acts Amendment Act 2017, continue to
apply in respect of any dutiable transaction
that occurs under a contract of sale entered
into before 1 July 2017.
42 State Taxation Acts Amendment
Act 2017--Sub-sale transactions
Division 3A of Part 4A of Chapter 2 does
not apply to a transfer of dutiable property
resulting from an option that was granted
before the commencement of section 30 of
the State Taxation Acts Amendment
Act 2017.".
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Part 3--Amendment of First Home Owner Grant Act 2000
Part 3--Amendment of First Home Owner
Grant Act 2000
48 Criterion 5--Residence requirement
After section 12(3) of the First Home Owner
Grant Act 2000 insert--
"(4) An applicant is exempted from compliance
with the residence requirement if, at the time
the eligible transaction is completed--
(a) for an application made by a single
applicant, the applicant is a member of
the Defence Force and is enrolled on
the register of electors; or
(b) for an application made by joint
applicants--
(i) at least one of the applicants is a
member of the Defence Force; and
(ii) each of the applicants is enrolled
on the register of electors.
(5) In this section--
member of the Defence Force means a
member of the Permanent Forces
within the meaning of the Defence
Act 1903 of the Commonwealth;
register of electors has the same meaning as
in the Electoral Act 2002.".
49 Amount of grant
(1) After section 18(1A) of the First Home Owner
Grant Act 2000 insert--
"(1B) Despite subsection (1A), if the
commencement date of an eligible
transaction is on or after 1 July 2017 and
before 1 July 2020 and the conditions in
subsection (1C) are satisfied, the amount of
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Part 3--Amendment of First Home Owner Grant Act 2000
the first home owner grant is the lesser of the
following--
(a) the consideration for the eligible
transaction;
(b) $20 000.
(1C) For the purposes of subsection (1B), the
conditions are--
(a) the eligible transaction is a contract for
the purchase of a new home; and
(b) the land on which the new home will be
situated is wholly in regional Victoria.".
(2) For section 18(4C) of the First Home Owner
Grant Act 2000 substitute--
"(4C) Despite anything to the contrary in
subsection (1), (1A) or (1B), the amount
of a first home owner grant is--
(a) the amount referred to in subsection
(1), if the Commissioner is satisfied
that the contract that formed the basis
of the eligible transaction replaces a
contract made before 1 July 2013
(the pre-July 2013 contract) and the
pre-July 2013 contract was--
(i) a contract for the purchase of the
same home; or
(ii) a comprehensive home building
contract to build the same home or
a substantially similar home; or
(b) the amount referred to in subsection
(1A), if the Commissioner is satisfied
that the contract that formed the basis
of the eligible transaction replaces a
contract made on or after 1 July 2013
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Part 3--Amendment of First Home Owner Grant Act 2000
and before 1 July 2017 (the pre-July
2017 contract) and the pre-July 2017
contract was--
(i) a contract for the purchase of the
same home; or
(ii) a comprehensive home building
contract to build the same home or
a substantially similar home.".
43
State Taxation Acts Amendment Act 2017
No. of 2017
Part 4--Amendment of Land Tax Act 2005
Part 4--Amendment of Land Tax Act 2005
50 Definitions
In section 3(1) of the Land Tax Act 2005 insert
the following definitions--
"capital improved value has the same meaning as
in the Valuation of Land Act 1960;
commercial residential premises has the same
meaning as in the A New Tax System
(Goods and Services Tax) Act 1999 of
the Commonwealth;
residential care facility has the meaning given in
section 76(4);
retirement village has the meaning given in
section 78(3);
supported residential service has the meaning
given in section 76(4);
vacant residential land tax means land tax
imposed under Division 6 of Part 2;
VRT land means taxable land that is--
(a) residential land within the meaning
of section 34B; and
(b) vacant under section 34C; and
(c) within the specified geographic area
within the meaning of section 34D;".
51 General imposition of land tax
For the note at the foot of section 7 of the Land
Tax Act 2005 substitute--
"Note
For land tax on transition easements, see Division 4.
For special land tax, see Division 5. For vacant residential
land tax, see Division 6.".
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Part 4--Amendment of Land Tax Act 2005
52 Taxable value of land
(1) In section 19(1) of the Land Tax Act 2005,
for "The taxable value" substitute "Subject to
subsection (1A), the taxable value".
(2) After section 19(1) of the Land Tax Act 2005
insert--
"(1A) For the purposes of calculating vacant
residential land tax, the taxable value of
land for a tax year is an amount equal to the
capital improved value of the land as at the
relevant date.".
53 New Division 6 of Part 2 inserted
After Division 5 of Part 2 of the Land Tax
Act 2005 insert--
"Division 6--Vacant residential land tax
34A Imposition of vacant residential land tax
(1) Vacant residential land tax is imposed each
year on taxable land in Victoria that is--
(a) residential land which is vacant; and
(b) within the specified geographic area.
(2) Vacant residential land tax is imposed in
addition to any other land tax imposed under
this Act.
Note
Certain taxable land is exempt from vacant residential land
tax--see Division 9 of Part 4.
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34B What is residential land?
(1) For the purposes of this Division, residential
land is land that is capable of being used
solely or primarily for residential purposes.
(2) Land is also residential land for the
purposes of this Division if--
(a) a residence is being constructed or
renovated on the land; and
(b) the land was capable of being used
solely or primarily for residential
purposes before the commencement of
the construction or renovation; and
(c) on the completion of the construction
or renovation, the land will be capable
of being used solely or primarily for
residential purposes.
(3) Despite subsections (1) and (2), residential
land does not include land that is capable of
being used and occupied solely or primarily
as--
(a) commercial residential premises and
that may lawfully be used and occupied
in that way; or
(b) a residential care facility and that may
lawfully be used and occupied in that
way; or
(c) a supported residential service and that
may lawfully be used and occupied in
that way; or
(d) a retirement village service and that
may lawfully be used and occupied in
that way.
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34C When is residential land vacant?
(1) For the purposes of this Division, residential
land referred to in section 34B(1) is vacant
in a tax year if it has not been used and
occupied for a period (whether continuous or
aggregate) of greater than 6 months in the
year preceding the tax year by--
(a) the owner of the residential land as
the principal place of residence of the
owner; or
(b) the owner's permitted occupant as
the principal place of residence of the
occupant; or
(c) a natural person under a lease or
short-term letting arrangement made
in good faith and not for the purpose
of avoiding the payment of vacant
residential land tax.
(2) For the purposes of this Division, residential
land referred to in section 34B(2) is vacant in
a tax year if, at the end of the year preceding
the tax year--
(a) the construction or renovation referred
to in section 34B(2)(a) was not
completed; and
(b) more than 2 years have elapsed since
that construction or renovation
commenced.
(3) Despite subsection (2), residential land
referred to in section 34B(2) is not vacant in
a tax year if the Commissioner is satisfied
there is an acceptable reason for the
construction or renovation not being
completed by the end of the year preceding
the tax year.
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(4) For the purposes of subsection (2), the
date on which construction or renovation
commences is the date of issue of the
building permit for the construction or
renovation.
(5) In this section--
permitted occupant means a person
(other than a tenant) who uses and
occupies land with the permission of
the owner.
34D What is the specified geographic area?
For the purposes of this Division, the
specified geographic area is the area
comprising all of the areas of the municipal
districts of the Councils listed in
Schedule 2A.
34E Who is liable for vacant residential land
tax?
(1) Subject to this section, the owner of VRT
land is liable to pay vacant residential land
tax on the land.
(2) A mortgagee in possession who is deemed
by section 17 to be an owner of VRT land is
not liable to pay vacant residential land tax
on the land.
(3) The holder of a beneficial interest in a trust
who is deemed by Division 2A or 2AB of
Part 3 to be the owner of VRT land is not
liable to pay vacant residential land tax on
the land.
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34F When must vacant residential land tax be
paid?
The day specified in a notice of assessment
of vacant residential land tax must not be
less than 14 days after the day the notice is
served on the taxpayer.
Note
Section 14 of the Taxation Administration Act 1997
provides for notices of assessment and provides that
tax is payable on or before the day specified in the
notice.
34G Owner of land subject to vacant
residential land tax must notify
Commissioner
(1) An owner of VRT land (other than an
owner referred to in section 34E(2) or (3))
must lodge a written notice with the
Commissioner before 15 January in each
year.
(2) A notice under this section must--
(a) be in the form and contain the
information determined by the
Commissioner; and
(b) be accompanied by any documents
or other evidence determined by the
Commissioner.".
54 What is the rate of land tax?
(1) In section 35(1) of the Land Tax Act 2005, after
"special land tax" insert "and vacant residential
land tax".
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Part 4--Amendment of Land Tax Act 2005
(2) After section 35(2) of the Land Tax Act 2005
insert--
"(3) The rate of vacant residential land tax is 1%
of the taxable value of the land.
Note
For the purposes of the vacant residential land tax,
the taxable value of the land is the capital improved
value of the land as at the relevant date--see
section 19(1A).".
55 Certain taxable land assessed separately
In section 37(1) of the Land Tax Act 2005, after
"land tax" insert "(other than vacant residential
land tax)".
56 New section 37A inserted
After section 37 of the Land Tax Act 2005
insert--
"37A Certain taxable land assessed separately--
vacant residential land tax
Subject to this Act, a taxpayer is to be
assessed for vacant residential land tax for
a tax year on the taxable value of VRT land
of which the taxpayer was the owner on
31 December immediately preceding that tax
year as if that land were the only land owned
by the taxpayer.".
57 Assessment of joint owners of land
In section 38(1) of the Land Tax Act 2005, after
"land tax" insert "(other than vacant residential
land tax)".
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58 New section 38A inserted
After section 38 of the Land Tax Act 2005
insert--
"38A Assessment of joint owners--vacant
residential land tax
Joint owners of land are to be jointly
assessed for vacant residential land tax on
the land as if it were owned by a single
person.".
59 Assessment of owner of land on which there are
home units
In section 42(1) of the Land Tax Act 2005,
after "land tax" insert "(other than vacant
residential land tax)".
60 Land tax on parts of land
(1) In section 46 of the Land Tax Act 2005,
after "land tax" (where first occurring) insert
"(other than vacant residential land tax)".
(2) At the end of section 46 of the Land Tax
Act 20005 insert--
"(2) If it is necessary to assess vacant
residential land tax on part of land, the
vacant residential land tax applicable to
that part is the proportion of the vacant
residential land tax, assessed on the taxable
value of the whole of the land, that the
taxable value of the part bears to the total
taxable value of the whole land.".
61 Grouping of related corporations
(1) In section 50(1) of the Land Tax Act 2005,
for "The Commissioner" substitute "Subject to
subsection (3), the Commissioner".
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Part 4--Amendment of Land Tax Act 2005
(2) In section 50(2) of the Land Tax Act 2005,
after "land tax" (where twice occurring) insert
"(other than vacant residential land tax)".
(3) After section 50(2) of the Land Tax Act 2005
insert--
"(3) The Commissioner must not treat related
corporations as a single corporation for the
purposes of assessing vacant residential land
tax.".
62 Absence from principal place of residence
In section 56(1A)(b)(ii) of the Land Tax
Act 2005 omit "within the meaning of
section 76(4)".
63 Retirement villages
In section 78(3) of the Land Tax Act 2005,
in the definition of retirement village omit
"within the meaning of section 76".
64 Exemption of land under construction for certain
exempt uses
In section 78A(8) of the Land Tax Act 2005--
(a) in the definition of residential service, for
"section 76A;" substitute "section 76A.";
(b) the definitions of residential care facility,
retirement village and supported residential
service are repealed.
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65 New Division 9 of Part 4 inserted
After Division 8 of Part 4 of the Land Tax
Act 2005 insert--
"Division 9--Exemptions from
vacant residential land tax
88A Holiday home exemption
(1) Land is exempt from vacant residential land
tax if--
(a) in the year preceding the tax year, the
owner of the land--
(i) used and occupied other land in
Australia as a principal place of
residence; and
(ii) used and occupied the land as a
holiday home for a period of at
least 4 weeks (whether continuous
or aggregate); and
(b) the Commissioner is satisfied that
the land was used and occupied as a
holiday home in that year.
(2) In considering whether or not the
Commissioner is satisfied for the purposes
of subsection (1)(b), the Commissioner
must have regard to--
(a) the location of the land; and
(b) the distance between the location of the
land and the owner's principal place of
residence; and
(c) the nature and frequency of the use of
the land.
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(3) An owner who is entitled to an exemption
from vacant residential land tax under this
section in a tax year is not entitled to an
exemption under this section in respect of
any other land in that tax year.
88B Exemption for land occupied for purposes
of attending place of business or
employment
Land is exempt from vacant residential land
tax if, in the year preceding the tax year, the
owner of the land--
(a) used and occupied other land in
Australia as a principal place of
residence; and
(b) used and occupied the land as a
residence for the purposes of attending
the owner's place of business or
employment and that place is in the
specified geographic area (within the
meaning of section 34D); and
(c) used and occupied the land as a
residence for the purposes referred to in
paragraph (b) for an aggregate period of
at least 140 days.
88C Residential land transferred during tax
year
Land that has changed in ownership in the
year preceding the tax year is exempt from
vacant residential land tax.
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88D Land becomes residential land during tax
year
Land is exempt from vacant residential land
tax for a tax year if--
(a) at the commencement of the year
preceding the tax year the land was not
residential land within the meaning of
section 34B(1); and
(b) during the year preceding the tax
year the land becomes residential land
within the meaning of that subsection.".
66 New Schedule 2A inserted
After Schedule 2 to the Land Tax Act 2005
insert--
"Schedule 2A--Specified
geographic area
Section 34D
Banyule City Council
Bayside City Council
Boroondara City Council
Darebin City Council
Glen Eira City Council
Hobsons Bay City Council
Manningham City Council
Maribyrnong City Council
Melbourne City Council
Monash City Council
Moonee Valley City Council
Moreland City Council
55
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No. of 2017
Part 4--Amendment of Land Tax Act 2005
Port Phillip City Council
Stonnington City Council
Whitehorse City Council
Yarra City Council".
67 New clause 16 inserted in Schedule 3
After clause 15 of Schedule 3 to the Land Tax
Act 2005 insert--
"16 State Taxation Acts Amendment Act 2017
(1) For the purposes of section 34C(1), for the
2018 tax year residential land referred to in
section 34B(1) is taken to be not vacant for
the period beginning on 1 January 2017 and
ending on 30 April 2017.
(2) Subclause (3) applies to land that, on
1 January 2018, is residential land referred
to in section 34B(2) because a residence is
being constructed or renovated on it.
(3) For the purposes of section 34C(2), the
construction or renovation of a residence
on land is taken to have commenced on
31 December 2017 if a building permit for
that construction or renovation was issued
on or before 31 December 2017.".
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State Taxation Acts Amendment Act 2017
No. of 2017
Part 5--Amendment of Payroll Tax Act 2007
Part 5--Amendment of Payroll Tax Act 2007
68 Definitions
In section 3 of the Payroll Tax Act 2007 insert
the following definitions--
"regional employee means an employee of a
regional employer who, in a month, performs
services for the employer mainly in regional
Victoria;
regional employer has the meaning given in
section 3A;
regional Victoria has the same meaning as it has
in section 18(8) of the First Home Owner
Grant Act 2000;".
69 New definition inserted
After section 3 of the Payroll Tax Act 2007
insert--
"3A Meaning of regional employer
(1) A regional employer is an employer--
(a) who has an ABN and a registered
business address located in regional
Victoria or whose principal place of
business is located in regional Victoria
(if that employer does not have an
ABN); and
(b) who meets the specified requirements.
(2) For the purposes of subsection (1), the
specified requirements are--
(a) at least 85% of the total taxable wages
that the employer pays, or are payable
by the employer, to the employer's
employees during a month, are paid
or payable to the employer's regional
employees; and
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(b) for a financial year, at least 85% of the
total taxable wages that the employer
pays, or are payable by the employer,
to the employer's employees, are paid
or payable to the employer's regional
employees during that year (the annual
rate reduction threshold).
(3) For the purposes of determining the annual
rate reduction threshold, it is not necessary
for the employer to meet the specified
requirement under subsection (2)(a) in any
month during the financial year.
Note
See also section 12A.".
70 New section 12A inserted
After section 12 of the Payroll Tax Act 2007
insert--
"12A Additional matters for determining
whether employer is a regional employer
(1) This section does not limit Division 2.
(2) For the purposes of this Act--
(a) if wages are paid or payable in
connection with a business carried on
by an employer in regional Victoria or
elsewhere in Victoria under a trust, the
employer's registered business address
is--
(i) the registered business address of
the trust; or
(ii) if the trust does not have an
ABN--the registered business
address of the trustee of the trust
(if the trustee has an ABN); and
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(b) if an employer based in this jurisdiction
has registered business addresses
located in and outside regional Victoria
at the same point in time, the location
where the employer is based in this
jurisdiction at that point in time is the
location of the employer's principal
place of business.
(3) In addition, for the purposes of determining
whether an employer is a regional employer
for the purposes of this Act--
(a) the location in this jurisdiction at
which the 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; and
(b) if more than one location in this
jurisdiction would qualify as the
location in regional Victoria at which
the employer is based during a month,
the location at which the employer is
based is to be determined by reference
to the state of affairs existing on the last
day of the month.".
71 Definitions for the purposes of Schedule 1
(1) In clause 1 of Schedule 1 to the Payroll Tax
Act 2007, in the definition of R--
(a) in paragraph (d), for "2014 or any
subsequent financial year" substitute
"2014, 2015 or 2016";
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(b) after paragraph (d) insert--
"(e) for the financial year commencing on
1 July 2017 or any subsequent financial
year--
(i) 3*65% in the case of a regional
employer; and
(ii) 4*85% in any other case.".
(2) In clause 1 of Schedule 1 to the Payroll Tax
Act 2007, for paragraphs (c), (d) and (e) of the
definition of TA or threshold amount
substitute--
"(c) for the financial year commencing on
1 July 2017--$625 000;
(d) for the financial year commencing on
1 July 2018 and each subsequent financial
year--$650 000.".
72 Definitions for the purposes of Part 3 of Schedule 1
In clause 7 of Schedule 1 to the Payroll Tax
Act 2007 insert the following definitions--
"D is the deductible amount determined in
accordance with clause 7A;
JTW, for clauses 9 and 9A, represents the total
taxable wages paid or payable during the
relevant financial year by the employers
covered by the return (as members of a
group);
Pe is that part of JTW that is attributable to all
employers who are not regional employers;
Pre is that part of JTW that is attributable to all
regional employers;
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Re is the percentage specified in paragraph (e)(ii)
of the definition R;
Rre is the percentage specified in paragraph (e)(i)
of the definition R;".
73 New clause 7A of Schedule 1 inserted
After clause 7 of Schedule 1 to the Payroll Tax
Act 2007 insert--
"7A Deductible amount for the purposes of
this Part
For the purposes of this Part, the deductible
amount is the amount calculated in
accordance with the following formula--
GTW C
GTW + GIW × TA × FY
".
74 Clause 9 of Schedule 1 substituted and new
clauses 9A and 9B of Schedule 1 inserted
For clause 9 of Schedule 1 to the Payroll Tax
Act 2007 substitute--
"9 Payroll of group over threshold where
section 87(2) approval in force--
employers covered by joint return are
either all regional employers or not
(1) This clause applies if--
(a) an approval is in force under section
87(2) for a designated group employer
to lodge a joint return; and
(b) the members of the group covered by
the return are--
(i) all regional employers; or
(ii) all employers who are not regional
employers.
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(2) If the total taxable wages and interstate
wages paid or payable by the group during
the financial year is more than the group
threshold amount, payroll tax is payable as
provided by subclauses (3) and (4).
(3) The designated group employer for the group
is liable to pay as payroll tax for the financial
year the amount of dollars calculated in
accordance with the following formula--
(JTW − D ) × R
(4) Each member of the group who is not
covered by the return is liable to pay as
payroll tax for the financial year the amount
of dollars calculated in accordance with the
following formula--
TW × R
9A Payroll of group over threshold where
section 87(2) approval in force--at least
one but not all are regional employers
(1) This clause applies if--
(a) an approval is in force under section
87(2) for a designated group employer
to lodge a joint return; and
(b) at least one but not all of the members
of the group covered by the return is a
regional employer.
(2) If the total taxable wages and interstate
wages paid or payable by the group during
the financial year is more than the group
threshold amount, payroll tax is payable as
provided by subclauses (3) and (4).
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(3) The designated group employer for the group
is liable to pay as payroll tax for the financial
year the amount of dollars calculated in
accordance with the following formula--
Pre Pe
[ JTW − D ] × JTW × Rre + [ JTW − D ] × JTW × Re
(4) Each member of the group who is not
covered by the return is liable to pay as
payroll tax for the financial year the amount
of dollars calculated in accordance with the
following formula--
TW × R
9B Payroll of group over threshold--where
no section 87(2) approval in force
(1) This clause applies if an approval under
section 87(2) is not in force for a designated
group employer.
(2) If the total taxable wages and interstate
wages paid or payable by a group during
the financial year is more than the group
threshold amount, payroll tax is payable as
provided by subclauses (3) and (4).
(3) The designated group employer for the group
is liable to pay as payroll tax for the financial
year the amount of dollars calculated in
accordance with the following formula--
( TW − D ) × R
(4) Each member of the group (other than
that designated group employer) is liable to
pay as payroll tax for the financial year the
amount of dollars calculated in accordance
with the following formula--
TW × R ".
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75 Calculation of monthly payroll tax
In clause 1A of Schedule 2 to the Payroll Tax
Act 2007, for paragraphs (b), (c) and (d) of the
definition of base deductible amount
substitute--
"(b) for a month in the financial year
commencing on 1 July 2017--$52 083;
(c) for a month in the financial year
commencing on 1 July 2018 and each
subsequent financial year--$54 166.".
76 Rate of payroll tax
For clause 2(d) of Schedule 2 to the Payroll Tax
Act 2007 substitute--
"(d) for wages paid or payable on or after
1 July 2014 and before 1 July 2017--4.85%;
(e) for wages paid or payable on or after
1 July 2017--
(i) 3*65% in the case of a regional
employer; and
(ii) 4*85% in any other case.".
77 Clause 8 of Schedule 2 substituted and new
clauses 8A and 8B of Schedule 2 inserted
For clause 8 of Schedule 2 to the Payroll Tax
Act 2007 substitute--
"8 Monthly payroll tax payable where
section 87(2) approval in force--
employers covered by joint return are
either all regional employers or not
(1) This clause applies if--
(a) an approval is in force under section
87(2) for a designated group employer
to lodge a joint return; and
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(b) the members of the group covered by
the return are--
(i) all regional employers; or
(ii) all employers who are not regional
employers.
(2) The designated group employer must pay an
amount (in dollars) of payroll tax, calculated
in accordance with the following formula, on
taxable wages paid or payable in a month by
the employers covered by the return--
( JTW − D ) × R
where--
JTW represents the total taxable wages
paid or payable during the month by
the employers covered by the return
(as members of the group);
D is the deductible amount referred to in
clause 9 or 10 (as the case requires);
R is the applicable rate of tax referred to
in clause 2.
(3) In addition, each employer who is a member
of the group but is not covered by the return
must pay an amount (in dollars) of payroll
tax, calculated in accordance with the
following formula, on taxable wages paid or
payable by the employer in a month--
TW × R
where--
TW represents the total taxable wages paid
or payable by the employer concerned
(as a member of the group) during the
relevant month;
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R is the applicable rate of tax referred to
in clause 2.
(4) For the purposes of subclause (2), if D is
equal to or more than JTW in respect of a
month, the designated group employer is not
required to pay payroll tax in respect of that
month.
8A Monthly payroll tax payable where
section 87(2) approval in force--
employers covered by joint return where
at least one but not all are regional
employers
(1) This clause applies if--
(a) an approval is in force under section
87(2) for a designated group employer
to lodge a joint return; and
(b) at least one but not all of the members
of the group covered by the return is a
regional employer.
(2) The designated group employer must pay an
amount (in dollars) of payroll tax, calculated
in accordance with the following formula, on
taxable wages paid or payable in a month by
the employers covered by the return--
Pre Pe
[ JTW − D ] × JTW × Rre + [ JTW − D ] × JTW × Re
where--
JTW represents the total taxable wages paid
or payable during the month by the
employers covered by the return
(as members of the group);
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D is the deductible amount referred to in
clause 9 or 10 (as the case requires);
Pe is that part of JTW that is attributable
to all employers who are not regional
employers;
Pre is that part of JTW that is attributable
to all regional employers;
Re is the rate of tax referred to in clause 2
that applies to an employer who is not a
regional employer;
Rre is the rate of tax referred to in clause 2
that applies to a regional employer.
(3) In addition, each employer who is a member
of the group but is not covered by the return
must pay an amount (in dollars) of payroll
tax, calculated in accordance with the
following formula, on taxable wages paid
or payable by the employer in a month--
TW × R
where--
TW represents the total taxable wages paid
or payable by the employer concerned
(as a member of the group) during the
relevant month;
R is the applicable rate of tax referred to
in clause 2.
(4) For the purposes of subclause (2), if D is
equal to or more than JTW in respect of a
month, the designated group employer is not
required to pay payroll tax in respect of that
month.
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Part 5--Amendment of Payroll Tax Act 2007
8B Monthly payroll tax payable where no
section 87(2) approval in force
(1) This clause applies if an approval under
section 87(2) is not in force for a designated
group employer.
(2) The designated group employer must pay an
amount (in dollars) of payroll tax, calculated
in accordance with the following formula, on
taxable wages paid or payable in a month--
(TW − D ) × R
where--
TW represents the total taxable wages paid
or payable by the designated group
employer (as a member of a group)
during the month;
D is the deductible amount referred to in
clause 9 or 10 (as the case requires);
R is the applicable rate of tax referred to
in clause 2.
(3) In addition, each employer who is a member
of the group must pay amount (in dollars) of
payroll tax, calculated in accordance with the
following formula, on taxable wages paid or
payable by the employer in a month--
TW × R
where--
TW represents the total taxable wages paid
or payable by the employer concerned
(as a member of the group) during the
relevant month;
R is the applicable rate of tax referred to
in clause 2.
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(4) For the purposes of subclause (2), if D is
equal to or more than TW in respect of a
month, the designated group employer is not
required to pay payroll tax in respect of that
month.".
78 Consequential amendments to variable R in
formulas set out in clauses 4 and 12 of Schedule 2
(1) In clause 4(1) of Schedule 2 to the Payroll Tax
Act 2007, for the variable R in the formula set
out in that subclause, before "rate" insert
"applicable".
(2) In clause 12 of Schedule 2 to the Payroll Tax
Act 2007, for the variable R in the formula set out
in that clause, before "rate" insert "applicable".
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Part 6--Amendment of Planning and Environment Act 1987
Part 6--Amendment of Planning and
Environment Act 1987
79 CPI adjusted amount
After section 96R(1) of the Planning and
Environment Act 1987 insert--
"(1A) The CPI adjusted amount determined under
subsection (1) is to be rounded up or down
to the nearest $1000 (and, if the amount by
which the amount to be rounded is $500, is
to be rounded up).".
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Part 7--Amendment of Taxation Administration Act 1997
Part 7--Amendment of Taxation
Administration Act 1997
Division 1--Meaning of taxation laws
80 Meaning of taxation laws
(1) After section 4(1)(ca) of the Taxation
Administration Act 1997 insert--
"(cab) Part 6 of the Livestock Disease Control
Act 1994 and any regulations made under
that Act for the purposes of that Part;".
(2) Section 4(2) of the Taxation Administration
Act 1997 is repealed.
Division 2--Record keeping and general offences
81 Instruments and returns to include all relevant
information
(1) For the penalty at the foot of section 10(1) of the
Taxation Administration Act 1997 substitute--
"Penalty: 600 penalty units in the case of a body
corporate;
120 penalty units in any other case.".
(2) After section 10(1) of the Taxation
Administration Act 1997 insert--
"(1A) A person does not commit an offence against
subsection (1) if the person has a reasonable
excuse for failing to ensure the information
required by that subsection was included
in--
(a) the instrument; or
(b) a statement produced together with
the instrument prior to the payment of
tax.".
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(3) For the penalty at the foot of section 10(2) of the
Taxation Administration Act 1997 substitute--
"Penalty: 600 penalty units in the case of a body
corporate;
120 penalty units in any other case.".
(4) After section 10(2) of the Taxation
Administration Act 1997 insert--
"(2A) A person does not commit an offence against
subsection (2) if the person has a reasonable
excuse for failing to ensure the information
required by that subsection was included in
the return.".
82 Inclusion of false or misleading information in
records
For the penalty at the foot of section 52(1) of the
Taxation Administration Act 1997 substitute--
"Penalty: 1200 penalty units in the case of a body
corporate;
240 penalty units in any other case.".
83 Giving false or misleading information to tax
officers
(1) In section 57(1) of the Taxation Administration
Act 1997, after "person must not" insert
", without reasonable excuse".
(2) For the penalty at the foot of section 57(1) of the
Taxation Administration Act 1997 substitute--
"Penalty: 600 penalty units in the case of a body
corporate;
120 penalty units in any other case.".
(3) Section 57(2) of the Taxation Administration
Act 1997 is repealed.
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Part 7--Amendment of Taxation Administration Act 1997
84 Deliberately omitting information
For the penalty at the foot of section 58 of the
Taxation Administration Act 1997 substitute--
"Penalty: 1200 penalty units in the case of a body
corporate;
240 penalty units in any other case.".
85 Criminal liability of officers of bodies corporate--
accessorial liability
Section 130A(2)(c)(i) of the Taxation
Administration Act 1997 is repealed.
86 Criminal liability of officers of bodies corporate--
failure to exercise due diligence
After section 130B(2)(b)(iv) of the Taxation
Administration Act 1997 insert--
"(iva) section 69D(2);".
Division 3--Reportable information
87 Definitions--reportable information
In section 3(1) of the Taxation Administration
Act 1997 insert the following definition--
"reportable information means information
about the transfer of a freehold interest
in real property situated in Victoria
that is reportable by the State to the
Commissioner of Taxation of the
Commonwealth under item 3 of the
table at the foot of section 396-55 of
Schedule 1 to the Taxation Administration
Act 1953 of the Commonwealth;".
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Part 7--Amendment of Taxation Administration Act 1997
88 New Division 2B of Part 9 inserted
After Division 2A of Part 9 of the Taxation
Administration Act 1997 insert--
"Division 2B--Collection of information
for disclosure to the Commonwealth and
for taxation law purposes
90F Relationship with other laws
(1) Nothing in this Act or any other Act or
law prevents the collection or disclosure of
reportable information in accordance with
this Division.
(2) Nothing in this Division prevents the
collection or disclosure of reportable
information in accordance with any other
provisions of this Act or any other Act or
law.
90G Collection and disclosure of reportable
information
(1) The Commissioner may collect reportable
information for the following purposes--
(a) the purposes of disclosing it to the
Commissioner of Taxation of the
Commonwealth;
(b) without limiting Division 2, for the
purposes of the administration or
execution of a taxation law.
(2) The Commissioner may disclose reportable
information to the Commissioner of Taxation
of the Commonwealth.
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Part 7--Amendment of Taxation Administration Act 1997
90H How reportable information may be
collected
(1) The Commissioner may collect reportable
information by requiring a person providing
information for the purposes of a function
carried out under a taxation law to provide
the reportable information.
(2) Without limiting subsection (1), the
Commissioner may require reportable
information to be provided in connection
with the lodgment of an instrument, return
or form, or the making of an application
under a taxation law.
(3) Nothing in this section limits the
circumstances in which the Commissioner
may collect reportable information.".
Division 4--Data matching amendments
89 Permitted disclosures to particular persons or for
particular purposes
(1) After section 92(1)(b) of the Taxation
Administration Act 1997 insert--
"(ba) to a public service body for the purposes
of verifying information obtained by
the Commissioner by comparing that
information with information held by the
public service body; or".
(2) In section 92(2) of the Taxation Administration
Act 1997--
(a) insert the following definition--
"public service body has the same meaning
as in the Public Administration
Act 2004.";
(b) in the definition of Landata, for "use."
substitute "use;".
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Part 7--Amendment of Taxation Administration Act 1997
Division 5--Consequential amendments on
imposition of vacant residential land tax
90 Definitions
In section 3(1) of the Taxation Administration
Act 1997, in the definition of notification default,
before paragraph (a) insert--
"(aa) a failure to lodge a notice under section 34G
of the Land Tax Act 2005; or".
91 Amount of penalty tax
In section 30(2A) of the Taxation
Administration Act 1997, after "section" insert
"34G,".
92 Supreme Court--limitation of jurisdiction
At the end of section 135 of the Taxation
Administration Act 1997 insert--
"(7) It is the intention of sections 5, 12(4), 18(1),
96(2) and 100(4), as they apply on and after
the commencement of section 92 of the State
Taxation Acts Amendment Act 2017, to
alter or vary section 85 of the Constitution
Act 1975.".
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No. of 2017
Part 8--Amendment of Unclaimed Money Act 2008
Part 8--Amendment of Unclaimed Money
Act 2008
93 Giving false or misleading information to an
authorised person
(1) In section 25 of the Unclaimed Money
Act 2008--
(a) for "intentionally or negligently" substitute
", without reasonable excuse";
(b) for paragraph (c) substitute--
"(c) omit from a declaration or statement
made or from information given, orally
or in writing, to an authorised person
any matter or thing without which the
declaration, statement or information is
false or misleading in a material
particular.".
(2) For the penalty at the foot of section 25 of the
Unclaimed Money Act 2008 substitute--
"Penalty: In the case of a natural person,
120 penalty units;
In the case of a body corporate,
600 penalty units.".
(3) In the note at the foot of section 25 of the
Unclaimed Money Act 2008, for "Section 26A"
substitute "Section 26B".
94 Criminal liability of officers of bodies corporate--
accessorial liability
Section 26A(2)(g) of the Unclaimed Money
Act 2008 is repealed.
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Part 8--Amendment of Unclaimed Money Act 2008
95 Criminal liability of officers of bodies corporate--
failure to exercise due diligence
After section 26B(2)(b) of the Unclaimed
Money Act 2008 insert--
"(ba) section 25;
(bb) section 33A;".
96 Registrar may pay owner
After section 33(1) of the Unclaimed Money
Act 2008 insert--
"(1A) An application under this section must--
(a) be in writing in the form approved by
the Registrar; and
(b) contain the information required by the
Registrar; and
(c) be accompanied by any document
required by the Registrar.".
97 New section 33A inserted
After section 33 of the Unclaimed Money
Act 2008 insert--
"33A Giving false or misleading information to
the Registrar
A person who makes an application under
section 33(1) must not, without reasonable
excuse, in respect of that application--
(a) make a declaration or statement, orally
or in writing, to the Registrar that is
false or misleading in a material
particular; or
(b) give information, orally or in writing, to
the Registrar that is false or misleading
in a material particular; or
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Part 8--Amendment of Unclaimed Money Act 2008
(c) omit from a declaration or statement
made or from information given to
the Registrar, orally or in writing,
any matter or thing without which the
declaration, statement or information
is false or misleading in a material
particular.
Penalty: In the case of a natural person,
120 penalty units;
In the case of a body corporate,
600 penalty units.
Note
Section 26B applies to an offence against this section.".
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Part 9--Repeal of amending Act
Part 9--Repeal of amending Act
98 Repeal of amending Act
This Act is repealed on 1 July 2019.
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).
═════════════
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No. of 2017
Endnotes
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:
Legislative Council:
The long title for the Bill for this Act was "A Bill for an Act to make
miscellaneous amendments to the Duties Act 2000, the First Home
Owner Grant Act 2000, the Land Tax Act 2005, the Payroll Tax
Act 2007, the Planning and Environment Act 1987, the Taxation
Administration Act 1997 and the Unclaimed Money Act 2008 and
for other purposes."
By Authority. Government Printer for the State of Victoria.
81
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