State Taxation Acts Amendment Act 2011
No. 28 of 2011
TABLE OF PROVISIONS
Section
Page
PART 1—PRELIMINARY
1
2
1
Purposes
Commencement
1
3
PART 2—DUTIES ACT 2000
4
Division 1—Reduction of duty for eligible first home buyers
4
3
4
5
6
7
8
9
10
11
Amendment to Division 4A heading
Definitions
What is a PPR transfer?
Concessional rate of duty for certain PPR transfers
New section 57JA inserted
57JA Reduction of duty for eligible first home buyers on
PPR transfers
Residence requirement
Variation of residence requirement
Liability for duty if residence requirement not complied with
Transferee to notify Commissioner of change in circumstances
Division 2—Amendments to the pensioner and first home owner
exemption and concession provisions
12
13
14
15
16
Who is an eligible pensioner?
Eligible pensioner exemption or concession where dwelling
exists at the time of transfer
Eligible pensioner exemption or concession where dwelling is
constructed after transfer
Election to receive eligible pensioner exemption/concession
60A
Election to receive eligible pensioner
exemption/concession
Transitional provisions
30
State Taxation Acts Amendment Act 2011—
Division 5 of Part 5 of Chapter 2
i
4
4
4
4
5
5
6
6
6
6
6
6
7
7
9
9
11
11
Section
Page
Division 3—2010 State Budget Measures
17
18
Election to receive eligible first home owner
exemption/concession or additional first home owner grant
Transitional provision
29
State Taxation Acts Amendment Act 2011—
section 63B
Division 4—Young farmers
19
13
New Division 7 of Part 5 of Chapter 2 inserted
13
Division 7—Young farmers
13
69AA
69AB
69AC
69AD
69AE
13
15
17
19
Division 5—Statute law revision
23
24
25
26
27
28
29
12
13
13
Definitions
Disqualifying interest
Primary production requirement
Exemption or concession for young farmers
Calculation of exemption or concession on transfer of
single parcel of land or partial interest in single parcel
of land
69AF Calculation of exemption on transfer of multiple
parcels and partial interests of land
69AG Election to receive young farmer exemption/
concession or principal place of residence concession
69AH Liability for duty if primary production requirement
not complied with
69AI Farmer to notify Commissioner of change in
circumstances
20
21
22
12
20
21
22
23
24
25
Definitions in Chapter 1 of the Duties Act 2000
What is dutiable property?
Constructive ownership of land holdings and other property:
linked entities
Interpretation and application of Division
Definitions in Part 3 of Chapter 3
Application of Part
What is a corporate group?
Revocation of exemption
Definitions in Chapter 11 of the Duties Act 2000
Duties and Land Tax Acts (Amendment) Act 2005
ii
25
25
25
25
25
26
26
26
26
26
Section
Page
PART 3—FIRST HOME OWNER GRANT ACT 2000
27
Division 1—Offences under the First Home Owner Grant Act 2000
27
30
Payment in anticipation of compliance with residence
requirement
New section 47 substituted
47
False and misleading information
27
27
27
Division 2—Extension of availability of additional amounts under
the First Home Owner Grant Act 2000
28
31
32
Amount of grant
28
PART 4—PAYROLL TAX ACT 2007
33
34
35
36
37
38
39
Definitions
Inclusion of grant of shares and options as wages
Choice of relevant day
Value of shares and options
Inclusion of shares and options granted to directors as wages
Transitional provisions
17
State Taxation Acts Amendment Act 2011
Statute law revision—groups arising from tracing of interests
in corporations
PART 5—TAXATION ADMINISTRATION ACT 1997
40
41
42
43
44
Definitions in Taxation Administration Act 1997
New section 12A inserted
12A
Deemed assessment
Notice of assessment or withdrawal of assessment
Service of documents by Commissioner
When is service effective?
PART 6—REPEAL
45
29
29
29
29
31
32
33
33
35
36
36
36
36
37
37
37
38
Repeal of amending Act
═══════════════
ENDNOTES
38
39
iii
Victoria
State Taxation Acts Amendment Act
2011†
No. 28 of 2011
[Assented to 21 June 2011]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1 Purposes
The purposes of this Act are—
(a) to amend the Duties Act 2000—
(i) to provide for a reduction in the amount
of duty payable on a principal place of
residence transfer in certain
circumstances by persons to whom a
1
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 1
Part 1—Preliminary
first home owner grant is paid or
payable; and
(ii) to extend the concession available to
eligible pensioners to the holders of
Commonwealth Seniors Health Cards,
to increase the threshold of this
concession from $440 000 to $750 000
and to require eligible pensioners to
elect to receive either the concession or
the above reduction of duty (if any);
and
(iii) to provide exemptions and concessions
from duty to young farmers purchasing
their first farmland properties in certain
circumstances; and
(iv) to make other amendments
consequential on amendments to the
First Home Owner Grant Act 2000;
and
(v) to make other miscellaneous
amendments; and
(b) to amend the First Home Owner Grant Act
2000—
(i) to increase the penalties for particular
offences under that Act; and
(ii) to broaden the scope of the offence of
providing false and misleading
information in or in connection with an
application for a first home owner
grant; and
(iii) to extend the availability of additional
amounts under that Act; and
2
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 1—Preliminary
(c) to amend the Payroll Tax Act 2007—
(i) to replace outdated references to the
Income Tax Assessment Act 1936 of
the Commonwealth in relation to
employee share schemes; and
(ii) to make other miscellaneous
amendments; and
(d) to amend the Taxation Administration Act
1997 to provide for the circumstances in
which a deemed assessment is made and
when a notice of such assessment is taken to
be served if the on-line duty payment system
is used in respect of a dutiable transaction
under the Duties Act 2000.
2 Commencement
(1) This Act (other than Divisions 1, 2 and 4 of Part 2,
Division 2 of Part 3, Part 4 and Part 5) comes into
operation on the day after the day on which it
receives the Royal Assent.
(2) Part 5 comes into operation on 27 June 2011.
(3) Divisions 1, 2 and 4 of Part 2, Division 2 of Part 3
and Part 4 come into operation on 1 July 2011.
__________________
3
s. 2
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
s. 3
PART 2—DUTIES ACT 2000
Division 1—Reduction of duty for eligible first home buyers
3 Amendment to Division 4A heading
See:
Act No.
77/2000.
Reprint No. 7
as at
7 July 2009
and
amending
Act Nos
84/2008,
4/2009,
69/2009,
74/2009,
1/2010, 6/2010,
11/2010,
36/2010,
67/2010 and
75/2010.
LawToday:
www.
legislation.
vic.gov.au
In the heading to Division 4A of Part 5 of
Chapter 2 of the Duties Act 2000, after
"concession" insert "and reduction of duty for
certain transfers".
4 Definitions
In section 57G(1) of the Duties Act 2000 insert
the following definition—
"eligible first home buyer means a transferee to
whom a first home owner grant is paid or
payable under section 7 of the First Home
Owner Grant Act 2000 in respect of a PPR
transfer;".
5 What is a PPR transfer?
In section 57I(1)(d) of the Duties Act 2000, for
"$550 000" substitute "$600 000".
6 Concessional rate of duty for certain PPR transfers
(1) In the heading to section 57J of the Duties Act
2000, after "for" insert "certain".
4
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(2) In section 57J of the Duties Act 2000, after "PPR
transfer" insert "where the dutiable value of the
dutiable property is more than $130 000 but not
more than $550 000".
(3) At the foot of section 57J of the Duties Act 2000
insert—
"Note
A PPR transfer where the dutiable value of the dutiable
property is more than $550 000 but not more than $600 000
is chargeable with duty at the rate set out in section 28(1),
subject to any exemption or concession other than in this
Division.".
7 New section 57JA inserted
After section 57J of the Duties Act 2000 insert—
"57JA Reduction of duty for eligible first home
buyers on PPR transfers
The duty chargeable on a PPR transfer for an
eligible first home buyer calculated under
section 28(1) or 57J is to be reduced by the
following percentages—
(a) where the dutiable transaction takes
place on or after 1 July 2011 and on or
before 31 December 2012—20%;
(b) where the dutiable transaction takes
place on or after 1 January 2013 and on
or before 31 December 2013—30%;
(c) where the dutiable transaction takes
place on or after 1 January 2014 and on
or before 31 August 2014—40%;
(d) where the dutiable transaction takes
place on or after 1 September 2014—
50%.".
5
s. 7
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 8
Part 2—Duties Act 2000
8 Residence requirement
In section 57K(1) of the Duties Act 2000, after
"section 57J" insert "(if any), and the reduction in
duty under section 57JA (if any),".
9 Variation of residence requirement
In section 57L(2) of the Duties Act 2000, after
"concessional rate of duty" insert "or a reduction
of duty".
10 Liability for duty if residence requirement not
complied with
In section 57M(1)(a) of the Duties Act 2000, after
"section 28(1)" insert "without any reduction of
duty under section 57JA".
11 Transferee to notify Commissioner of change in
circumstances
In section 57N(1) of the Duties Act 2000, after
"of duty" insert "or a reduction of duty".
Division 2—Amendments to the pensioner and first home
owner exemption and concession provisions
12 Who is an eligible pensioner?
For section 58(1)(a) of the Duties Act 2000
substitute—
"(a) is—
(i) an eligible beneficiary within the
meaning of the State Concessions Act
2004; or
(ii) the holder of a Seniors Health Card
issued under section 1061ZS of the
Social Security Act 1991 of the
Commonwealth; and".
6
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
13 Eligible pensioner exemption or concession where
dwelling exists at the time of transfer
(1) In section 59(2)(b) of the Duties Act 2000, for
"$440 000" substitute "$750 000".
(2) In section 59(3) of the Duties Act 2000, for the
formula substitute—
"
$160 875
429P
–
".
7
14 000
(3) At the foot of section 59 of the Duties Act 2000
insert—
"Note
The application of this section depends on the date the
contract of sale of the land was entered into. See clause 30
of Schedule 2.".
14 Eligible pensioner exemption or concession where
dwelling is constructed after transfer
(1) In section 60(2)(c) of the Duties Act 2000, for
"$440 000" substitute "$750 000".
(2) For section 60(3) of the Duties Act 2000
substitute—
'(3) The concession or refund is an amount
calculated in accordance with the following
formulae—
(a) where the aggregate of the dutiable
value of the dutiable property and the
cost of construction of the dwelling
exceeds $330 000 but does not exceed
$440 000—
D×
429($750 000 – P)
700(P – $72 600)
where—
7
s. 13
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 14
Part 2—Duties Act 2000
"D" is the amount of duty paid or
payable (but for this Division) on
the transfer;
"P" is the aggregate amount referred
to in subsection (2)(c); or
(b) where the aggregate value of the
dutiable value of the dutiable property
and the cost of construction of the
dwelling exceeds $440 000 but does not
exceed $550 000—
D×
429($750 000 – P)
280(3P – $401 500)
where—
"D" is the amount of duty paid or
payable (but for this Division) on
the transfer;
"P" is the aggregate amount referred
to in subsection (2)(c); or
(c) where the aggregate value of the
dutiable value of the dutiable property
and the cost of construction of the
dwelling exceeds $550 000 but does not
exceed $750 000—
D×
429($750 000 – P)
280(3P – $246 500)
where—
"D" is the amount of duty paid or
payable (but for this Division) on
the transfer;
"P" is the aggregate amount referred
to in subsection (2)(c).'.
8
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(3) At the foot of section 60 of the Duties Act 2000
insert—
"Note
The application of this section depends on the date the
contract of sale of the land was entered into. See clause 30
of Schedule 2.".
15 Election to receive eligible pensioner
exemption/concession
For section 60A of the Duties Act 2000
substitute—
"60A Election to receive eligible pensioner
exemption/concession
(1) This section applies to an eligible pensioner
who, but for this section or section 18(5) of
the First Home Owner Grant Act 2000,
would be entitled to receive—
(a) an exemption or concession from duty
under section 59 or 60 in respect of a
transfer of an estate in fee simple in
land; and
(b) any one or more of the following—
(i) a reduction of his or her liability
for duty under section 57JA;
(ii) an amount in respect of an eligible
transaction (within the meaning of
the First Home Owner Grant
Act 2000) relating to that land
under—
(A) section 18(2) or 18(2A) of
that Act (or both);
(B) section 18(2AA) or 18(2B)
of that Act (or both);
(C) section 18(2AB) or 18(2C)
of that Act (or both).
9
s. 15
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 15
Part 2—Duties Act 2000
(2) The eligible pensioner, by notice in writing
to the Commissioner, must elect to receive—
(a) the exemption or concession under
section 59 or 60 (as the case requires)
in respect of the transfer; or
(b) any one or more of the following—
(i) a reduction of his or her liability
for duty under section 57JA;
(ii) an amount in respect of an eligible
transaction (within the meaning of
the First Home Owner Grant
Act 2000) relating to that land
under—
(A) section 18(2) or 18(2A) of
that Act (or both);
(B) section 18(2AA) or 18(2B)
of that Act (or both);
(C) section 18(2AB) or 18(2C)
of that Act (or both).
(3) If the eligible pensioner elects to receive any
one or more of the following—
(a) a reduction of his or her liability for
duty under section 57JA;
(b) an amount in respect of an eligible
transaction (within the meaning of the
First Home Owner Grant Act 2000)
relating to that land under—
(i) section 18(2) or 18(2A) of that
Act (or both);
(ii) section 18(2AA) or 18(2B) of that
Act (or both);
10
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(iii) section 18(2AB) or 18(2C) of that
Act (or both)—
or does not make an election under this
section, he or she is not entitled to the
exemption or concession under section 59
or 60 (as the case requires) in respect of the
transfer.
(4) Despite subsection (3), if an eligible
pensioner would, but for that subsection, be
entitled to an exemption or concession under
section 59 or 60, section 167 applies to the
home owner as if he or she were so entitled.
Note
The application of this section depends on the date the
contract of sale of the land was entered into. See clause 30
of Schedule 2.".
16 Transitional provisions
At the end of Schedule 2 to the Duties Act 2000
insert—
"30 State Taxation Acts Amendment Act
2011—Division 5 of Part 5 of Chapter 2
(1) Division 5 of Part 5 of Chapter 2, as
amended by Division 2 of Part 2 of the State
Taxation Acts Amendment Act 2011,
applies to a transfer to an eligible pensioner,
within the meaning of that Division as in
force immediately after 1 July 2011, of
dutiable property being an estate in fee
simple in land if the contract of sale of the
land was entered into on or after 1 July 2011.
(2) Division 5 of Part 5 of Chapter 2, as in force
immediately before 1 July 2011, continues to
apply to a transfer to an eligible pensioner,
within the meaning of that Division as in
force immediately before 1 July 2011, of
dutiable property being an estate in fee
11
s. 16
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 17
Part 2—Duties Act 2000
simple in land if the contract of sale of the
land was entered into on or before 30 June
2011.
(3) A taxpayer is entitled to a refund of any duty
paid on or after 1 July 2011 that is not
payable because of subclause (1) or (2).".
Division 3—2010 State Budget Measures
17 Election to receive eligible first home owner
exemption/concession or additional first home
owner grant
In section 63B of the Duties Act 2000—
(a) in subsection (1)(b)—
(i) in subparagraph (ii) for "both)."
substitute "both); or";
(ii) after subparagraph (ii) insert—
"(iii) section 18(2AB) or 18(2C) of that
Act (or both).";
(b) in subsection (2)(b)—
(i) in subparagraph (i) for "(or both, as the
case requires)" substitute "(or both)";
(ii) in subparagraph (ii) for "(or both, as the
case requires)." substitute "(or both);
or";
(iii) after subparagraph (ii) insert—
"(iii) section 18(2AB) or 18(2C) of that
Act (or both).";
(c) in subsection (3)—
(i) in paragraph (a), for "(or both, as the
case requires)" substitute "(or both)";
(ii) in paragraph (b), for "(or both, as the
case requires)—" substitute "(or both);
or";
12
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(d) after subsection (3)(b) insert—
"(c) section 18(2AB) or 18(2C)(or both)—".
18 Transitional provision
After clause 28 of Schedule 2 to the Duties Act
2000 insert—
"29 State Taxation Acts Amendment Act
2011—section 63B
Anything done or omitted to be done under
this Act or the First Home Owner Grant
Act 2000 in respect of a dutiable transaction
occurring on or after 1 July 2010 and before
the commencement of section 18 of the State
Taxation Acts Amendment Act 2011, that
would have been validly done or omitted to
be done had section 63B as amended by
section 17 of the State Taxation Acts
Amendment Act 2011 been in force at that
time, is taken to have been validly done or
omitted.".
Division 4—Young farmers
19 New Division 7 of Part 5 of Chapter 2 inserted
After Division 6 of Part 5 of Chapter 2 of the
Duties Act 2000 insert—
"Division 7—Young farmers
69AA Definitions
In this Division—
capital beneficiary of a discretionary trust
means a person, or a member of a class
of person, in whom, by the terms of the
trust, the whole or any part of the
capital of the trust estate may be vested
or remain vested—
13
s. 18
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
(a) in the event of the exercise of a
power or discretion in favour of
the person (whether or not that
power is presently exercisable); or
(b) in the event that a discretion
conferred under the trust is not
exercised;
disqualifying interest has the meaning given
by section 69AB;
farmland means land used, or intended to be
used, primarily for the business of
primary production;
fixed trust means a trust under which the
identity of the beneficiaries and the
quantum of their interests are
ascertained;
primary production requirement means the
requirement referred to in
section 69AC;
young farmer means a natural person who is
carrying on, or intends to carry on, a
business of primary production in
relation to the dutiable property to
which section 69AD applies;
young farmer business entity means—
(a) a trustee for a young farmer; or
(b) a company (not acting in the
capacity of a trustee under a trust)
all the shares in which are owned
by a young farmer, or the young
farmer and the young farmer's
partner; or
14
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(c) a trustee under a discretionary
trust, the capital beneficiaries of
which are limited to a young
farmer, or the young farmer and
the young farmer's partner; or
(d) a trustee under a fixed trust, the
beneficiaries of which are limited
to a young farmer, or the young
farmer and the young farmer's
partner.
69AB Disqualifying interest
For the purposes of this Division,
disqualifying interest means—
(a) in respect of a young farmer or the
young farmer's partner—
(i) an estate in fee simple in farmland
held or previously held by the
young farmer or the young
farmer's partner; or
(ii) shares in a company—
(A) currently held by the young
farmer or the young farmer's
partner, if the company holds
or has previously held an
estate in fee simple in
farmland; or
(B) previously held by the young
farmer or the young farmer's
partner, if those shares were
held at the same time that the
company held an estate in
fee simple in farmland; or
15
s. 19
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
(iii) if the young farmer or the young
farmer's partner—
(A) is a beneficiary of a fixed
trust and the trust property
includes or has previously
included an estate in fee
simple in farmland; or
(B) was previously a beneficiary
of a fixed trust and, while the
young farmer or the young
farmer's partner was a
beneficiary, the trust
property included an estate
in fee simple in farmland; or
(iv) if the young farmer or the young
farmer's partner—
(A) is a capital beneficiary of a
discretionary trust and the
trust property includes or has
previously included an estate
in fee simple in farmland; or
(B) was previously a capital
beneficiary of a discretionary
trust and, while the young
farmer or young farmer's
partner was a capital
beneficiary, the trust
property included an estate
in fee simple in farmland;
(b) in respect of a young farmer business
entity that is—
(i) a trustee for a young farmer—if
the trustee holds or has previously
held an estate in fee simple in
farmland on trust for that young
farmer; or
16
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(ii) a company (not acting in the
capacity of a trustee under a
trust)—if the company holds or
has previously held an estate in
fee simple in farmland; or
(iii) a trustee under a discretionary
trust—if the trustee holds or has
previously held an estate in fee
simple in farmland on trust for
that discretionary trust; or
(iv) a trustee under a fixed trust—if
the trustee holds or has previously
held an estate in fee simple in
farmland on trust for that fixed
trust.
69AC Primary production requirement
The concession and exemption under this
Division are subject to the following
requirements—
(a) if the transferee of the dutiable property
is a young farmer—within 5 years from
the date the young farmer entered the
contract for the transfer of the
farmland, the young farmer must be
normally engaged in a substantially
full-time capacity in the business of
primary production of the type carried
on on the farmland; or
(b) if the transferee of the dutiable property
is a trustee for a young farmer—within
5 years from the date the trustee entered
the contract for the transfer of the
farmland, the young farmer in respect
of that trust must normally be engaged
in a substantially full-time capacity in
17
s. 19
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
the business of primary production of
the type carried on on the farmland; or
(c) if the transferee is a company (not
acting in the capacity of a trustee under
a trust)—within 5 years from the date
the company entered the contract for
the transfer of the farmland, the
principal business of the company must
be primary production of the type
carried on on the farmland; or
(d) if the transferee is a trustee of a
discretionary trust, within 5 years from
the date the trustee entered the contract
for the transfer of the farmland—
(i) the sole business of the trust must
be primary production of the type
carried on on the farmland; and
(ii) the young farmer in respect of that
trust must be normally engaged in
a substantially full-time capacity
in the business of primary
production of the type carried on
on the farmland; or
(e) if the transferee is a trustee under a
fixed trust, within 5 years from the date
the trustee entered the contract for the
transfer of the farmland—
(i) the sole business of the trust must
be primary production of the type
carried on on the farmland; and
(ii) the young farmer in respect of that
trust must be normally engaged in
a substantially full-time capacity
in the business of primary
production of the type carried on
on the farmland.
18
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
69AD Exemption or concession for young
farmers
(1) A transferee who is a young farmer or a
young farmer business entity is entitled to an
exemption or concession from duty under
this Chapter in respect of one or more
transfers of dutiable property, if—
(a) the dutiable property the subject of each
transfer is an estate in fee simple in
farmland; and
(b) at the time that the contract or contracts
for the transfer or transfers of the
dutiable property is or are entered
into—
(i) if the transferee is a young
farmer—the young farmer is
under the age of 35; or
(ii) if the transferee is a young farmer
business entity—the young farmer
in respect of that entity is under
the age of 35; and
(c) the transferee is—
(i) a young farmer—
(A) who does not have a
disqualifying interest; and
(B) whose partner does not have
a disqualifying interest; or
(ii) a young farmer business entity—
(A) that does not have a
disqualifying interest; and
(B) where the young farmer or
the young farmer's partner in
respect of that young farmer
19
s. 19
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
business entity does not have
a disqualifying interest; and
(d) the dutiable value of the dutiable
property—
(i) in the case of one transfer of
dutiable property—does not
exceed $400 000; or
(ii) in the case of two or more
transfers of dutiable property—for
one of those transfers, does not
exceed $300 000; and
(e) the transferee is a young farmer or
young farmer business entity who
meets the primary production
requirement in relation to the dutiable
property.
(2) An exemption or concession from duty under
subsection (1) will apply in respect of two or
more transfers of dutiable property only if
those transfers arise from—
(a) a single contract of sale; or
(b) two or more contracts of sale entered
into at the same time.
69AE Calculation of exemption or concession on
transfer of single parcel of land or partial
interest in single parcel of land
(1) For the purposes of section 69AD, in the
case of one transfer of dutiable property—
(a) if the dutiable value of the dutiable
property does not exceed $300 000, the
young farmer or young farmer business
entity (as the case requires) is entitled
to an exemption from duty on the
dutiable transaction;
20
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(b) if the dutiable value of the dutiable
property exceeds $300 000 but does not
exceed $400 000, the young farmer or
young farmer business entity (as the
case requires) is entitled to a concession
from duty on the dutiable transaction.
(2) The concession under subsection (1)(b) is an
amount calculated in accordance with the
following formula—
$52 280 –
1307P
10 000
where "P" is the dutiable value of the
dutiable property.
69AF Calculation of exemption on transfer of
multiple parcels and partial interests of
land
(1) For the purposes of section 69AD, in the
case of two or more transfers of dutiable
property—
(a) the exemption from duty on the
dutiable transactions is calculated as if
section 24 applies to aggregate the
dutiable transactions (whether or not
section 24 applies to aggregate the
dutiable transactions); and
(b) the young farmer or young farmer
business entity (as the case requires) is
entitled to an exemption from duty in
respect of $300 000 of the aggregated
dutiable value of the dutiable
transactions; and
(c) once paragraph (b) has applied, the
duty payable on the dutiable
transactions is calculated—
21
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State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
(i) in accordance with section 24; and
(ii) as if the dutiable values of the
dutiable transactions do not
include any amount in respect of
which an exemption has been
applied under paragraph (b).
(2) The exemption from duty under
subsection (1)(c) is applied against the
dutiable values of the dutiable transactions in
the order of ascending dutiable values of the
dutiable transactions.
Example
A young farmer enters into 3 dutiable transactions
with dutiable values of $200 000 (Transaction A),
$300 000 (Transaction B) and $500 000
(Transaction C). An exemption in respect of $300 000
of the aggregated dutiable value of the dutiable
transactions is first applied to the dutiable transaction
with the lowest dutiable value, and then to the
dutiable transaction with the next lowest dutiable
value. This means that a full exemption from duty
applies to Transaction A and a partial exemption
applies to Transaction B, being an exemption in
respect of $100 000 of the dutiable value of
Transaction B. For the purposes of assessing the
young farmer's duty liability under subsection (1)(c),
Transaction B is taken to have a dutiable value of
$200 000.
69AG Election to receive young farmer
exemption/concession or principal place of
residence concession
(1) This section applies to a young farmer who,
but for this section, in respect of a transfer of
an estate in fee simple in farmland, would be
entitled—
22
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
(a) to an exemption or concession from
duty under section 69AD; and
(b) to a concession from duty under
section 57J.
(2) The young farmer, by notice in writing to the
Commissioner, must elect to receive—
(a) the exemption or concession under
section 69AD; or
(b) the concession from duty under
section 57J.
(3) If the young farmer elects to receive a
concession under section 57J, or does not
make an election under this section, he or she
is not entitled to the exemption under
section 69AD in respect of the transfer.
69AH Liability for duty if primary production
requirement not complied with
(1) If a young farmer or young farmer business
entity has received an exemption or
concession from duty under this Division
and the primary production requirement is
not complied with—
(a) the transfer is chargeable with duty at
the rate set out in section 28(1) as if
section 69AD does not apply, subject to
any exemption or concession other than
in this Division; and
(b) the Commissioner may reassess duty on
the transfer accordingly (giving an
allowance for any duty already paid on
the transfer).
23
s. 19
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 19
Part 2—Duties Act 2000
(2) A liability for duty imposed because of
subsection (1) on a transfer arises when the
primary production requirement for that
transfer is not complied with.
Note
Section 16 provides that a tax default does not occur if
the duty is paid within 3 months 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.
69AI Farmer to notify Commissioner of change
in circumstances
(1) A young farmer or a young farmer business
entity who has received an exemption or
concession under this Division must lodge a
written notice with the Commissioner within
30 days of becoming aware of any
circumstances that may result in the primary
production requirement not being complied
with.
(2) A failure of a young farmer or young farmer
business entity to comply with subsection (1)
does not affect the Commissioner's power to
reassess duty under section 69AH.".
24
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 2—Duties Act 2000
Division 5—Statute law revision
20 Definitions in Chapter 1 of the Duties Act 2000
(1) In section 3(1) of the Duties Act 2000—
(a) insert the following definition—
"ASX means ASX Limited
(A.C.N. 008 624 691);";
(b) the definition of Australian Stock Exchange
is repealed;
(c) in the definition of listed trust for
"Australian Stock Exchange" (where twice
occurring) substitute "ASX";
(d) in paragraph (b) of the definition of private
company for "Australian Stock Exchange"
substitute "ASX".
(2) In section 3(4)(a) of the Duties Act 2000 for
"Australian Stock Exchange" substitute "ASX".
21 What is dutiable property?
In section 10(2) of the Duties Act 2000 for
"Australian Stock Exchange" (where twice
occurring) substitute "ASX".
22 Constructive ownership of land holdings and other
property: linked entities
In section 74(7) of the Duties Act 2000, in
paragraph (b) of the definition of linked entity, for
"Australian Stock Exchange" substitute "ASX".
23 Interpretation and application of Division
In section 89D(3) of the Duties Act 2000 for
"Australian Stock Exchange" substitute "ASX".
24 Definitions in Part 3 of Chapter 3
In section 90(1) of the Duties Act 2000, in
paragraph (b) of the definition of company, for
"Australian Stock Exchange" substitute "ASX".
25
s. 20
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 25
Part 2—Duties Act 2000
25 Application of Part
In section 97(2)(a) of the Duties Act 2000 for
"Australian Stock Exchange" substitute "ASX".
26 What is a corporate group?
In section 250(2)(b) of the Duties Act 2000 for
"Australian Stock Exchange" substitute "ASX".
27 Revocation of exemption
In section 250D(3) of the Duties Act 2000, in
paragraph (a) of the definition of public float, for
"Australian Stock Exchange" substitute "ASX".
28 Definitions in Chapter 11 of the Duties Act 2000
In section 250DH of the Duties Act 2000—
(a) in the definition of listed, for "Australian
Stock Exchange" substitute "ASX".
(b) in paragraph (a) of the definition of public
float, for "Australian Stock Exchange"
substitute "ASX".
29 Duties and Land Tax Acts (Amendment) Act 2005
In clause 22(2) of Schedule 2 to the Duties Act
2000 for "Australian Stock Exchange" substitute
"ASX".
__________________
26
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 3—First Home Owner Grant Act 2000
s. 30
PART 3—FIRST HOME OWNER GRANT ACT 2000
Division 1—Offences under the First Home Owner Grant
Act 2000
30 Payment in anticipation of compliance with
residence requirement
For the penalty at the foot of section 20(3) of the
First Home Owner Grant Act 2000
substitute—
"Penalty: 120 penalty units.".
31 New section 47 substituted
For section 47 of the First Home Owner Grant
Act 2000 substitute—
"47 False and misleading information
(1) A person must not, in or in connection with
an application for a first home owner grant—
(a) give information that is false or
misleading; or
(b) make a statement that is false or
misleading; or
(c) produce a document that is false or
misleading.
Penalty: Level 8 imprisonment (1 year
maximum) or a level 8 fine
(120 penalty units maximum) or
both.
27
See:
Act No.
5/2000.
Reprint No. 3
as at
6 May 2010
and
amending
Act No.
36/2010.
LawToday:
www.
legislation.
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State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 32
Part 3—First Home Owner Grant Act 2000
(2) A person is not guilty of an offence against
subsection (1) if the court hearing the charge
is satisfied that the person did not know that
the information, statement or document was
false or misleading.
(3) A person must not, in or in connection with
an application for a first home owner grant—
(a) omit information about any matter or
thing, without which the application is,
to the person's knowledge, false or
misleading in a material particular; or
(b) omit from a statement any matter or
thing, without which the statement is, to
the person's knowledge, false or
misleading in a material particular; or
(c) fail to produce a document, without
which the application is, to the person's
knowledge, false or misleading in a
material particular.
Penalty: Level 8 imprisonment (1 year
maximum) or a level 8 fine
(120 penalty units maximum) or
both.".
Division 2—Extension of availability of additional amounts
under the First Home Owner Grant Act 2000
32 Amount of grant
(1) In section 18(2AB)(a) of the First Home Owner
Grant Act 2000 for "1 July 2011" substitute
"1 July 2012".
(2) In section 18(2C)(b) of the First Home Owner
Grant Act 2000 for "1 July 2011" substitute
"1 July 2012".
__________________
28
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 4—Payroll Tax Act 2007
s. 33
PART 4—PAYROLL TAX ACT 2007
33 Definitions
In section 3 of the Payroll Tax Act 2007, in the
definition of share, omit "within the meaning of
section 139GCD of the Income Tax Assessment
Act 1936 of the Commonwealth".
34 Inclusion of grant of shares and options as wages
For section 18(1) of the Payroll Tax Act 2007
substitute—
"(1) For the purposes of this Act, wages include
the grant of a share or an option to an
employee by an employer in respect of
services performed by the employee if the
share or option is an ESS interest (within the
meaning of section 83A-10 of the ITAA) and
is granted to the employee under an
employee share scheme (within the meaning
of that section).
Note
A grant of a share or an option to an employee by an
employer that is not an ESS interest will be taxable as
a fringe benefit under Division 2 of this Part.".
35 Choice of relevant day
(1) For section 19(2) of the Payroll Tax Act 2007
substitute—
"(2) A share or option is granted to a person if—
(a) another person transfers the share or
option to that person (other than, in the
case of a share, by issuing the share to
that person); or
29
See:
Act No.
26/2007.
Reprint No. 1
as at
20 May 2010
and
amending
Act No.
36/2010.
LawToday:
www.
legislation.
vic.gov.au
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 35
Part 4—Payroll Tax Act 2007
(b) in the case of a share—another person
allots the share to that person; or
(c) in the case of an option—another
person confers the option on, or
otherwise creates the option in, that
person; or
(d) the person otherwise acquires a legal
interest in the share or option from
another person; or
(e) the person acquires a beneficial interest
in the share or option from another
person.
(2A) To avoid doubt, if an employee acquires a
right to be granted a share or an option, or
some other material benefit, at the election of
the employer, the share or option is not
granted until the employer elects to grant the
share or option.".
(2) For section 19(3) and (4) of the Payroll Tax Act
2007 substitute—
"(3) The vesting date in respect of a share is one
of the following dates (whichever happens
first)—
(a) the date on which the share vests in the
employee (that is, when any conditions
applying to the grant of the share have
been met and the employee's legal or
beneficial interest in the share cannot
be rescinded);
(b) the date at the end of the period of
7 years from the date on which the
share is granted to the employee.
(4) The vesting date in respect of an option is
one of the following dates (whichever
happens first)—
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State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 4—Payroll Tax Act 2007
(a) the date on which the share to which
the option relates is granted to the
employee;
(b) the date on which the employee
exercises a right under the option to
have the share the subject of the option
transferred to, allotted to or vested in
him or her;
(c) the date at the end of the period of
7 years from the date on which the
option is granted to the employee.".
36 Value of shares and options
(1) In section 23(1) of the Payroll Tax Act 2007
omit "market".
(2) For section 23(2) to (5) of the Payroll Tax Act
2007 substitute—
"(2) The value of a share or an option is—
(a) the market value; or
(b) the amount determined as provided for
by the Commonwealth income tax
provisions.
(3) The employer may elect the method by
which the value of a share or an option is
determined in any return lodged under this
Act.
(4) However, the Commissioner may determine
the method by which the value of a share or
option is determined if the grant of the share
or option is not included as wages in a return
lodged by an employer as required by this
Act.
31
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State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 37
Part 4—Payroll Tax Act 2007
(5) In determining the market value of a share or
an option, anything that would prevent or
restrict conversion of the share or option to
money is to be disregarded.
(6) The Commonwealth income tax provisions
apply with the following modifications, and
any other necessary modifications—
(a) the value of an option is to be
determined as if it were a right to
acquire a beneficial interest in a share;
(b) a reference to the acquisition of a
beneficial interest in a share or right is
to be read as a reference to the grant of
a share or an option.
(7) In this section—
Commonwealth income tax provisions
means section 83A-315 of the ITAA
and the regulations made for the
purposes of that section.
Note
See Division 83A of the Income Tax Assessment
Regulations 1997 of the Commonwealth for the
relevant regulations.".
37 Inclusion of shares and options granted to directors
as wages
(1) For section 24(1) of the Payroll Tax Act 2007
substitute—
"(1) For the purposes of this Act, wages include
the grant of a share or an option by a
company to a director of the company who is
not an employee of the company by way of
remuneration for the appointment or services
of the director.".
32
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 4—Payroll Tax Act 2007
(2) After section 24(3) of the Payroll Tax Act 2007
insert—
"(4) However, if wages referred to in this section
are fringe benefits, the value of the wages is
to be determined in accordance with
Division 2 of this Part (and not this
Division).".
38 Transitional provisions
After clause 16 of Schedule 3 to the Payroll Tax
Act 2007 insert—
"17 State Taxation Acts Amendment
Act 2011
(1) Anything done or omitted to be done by an
employer in connection with the assessment
and payment of payroll tax, in respect of a
month occurring after June 2009 and before
July 2011, that would have been validly done
or omitted to be done had the amendments
made to this Act by the State Taxation Acts
Amendment Act 2011 been in force, is
taken to have been validly done or omitted.
Note
This provision validates a decision by an employer to
treat the grant of a share or an option to an employee
that is not an ESS interest as a fringe benefit under
Division 2 of Part 3 of this Act and to determine the
value of those fringe benefits in accordance with those
provisions, rather than by reference to Division 4 of
Part 3 of this Act.
(2) Division 4 of Part 3 of this Act continues to
apply in respect of a share or an option
granted before 1 July 2011 that constituted
wages under old section 18, whether or not
the grant of the share or option would
constitute wages under new section 18, if the
relevant day in relation to the grant of the
33
s. 38
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 38
Part 4—Payroll Tax Act 2007
share or option is not a day occurring before
1 July 2011.
Example
A share granted before 1 July 2011 that is not an ESS
interest continues to be treated as wages under
Division 4 of Part 3 of this Act if the vesting date for
the share did not occur before 1 July 2011 and the
employer did not elect to treat the date of the grant as
the relevant day.
(3) The assessment amendments apply in respect
of any such share or option.
(4) Accordingly, the vesting date and the value
of the share or option are to be determined in
accordance with the assessment
amendments.
(5) This clause does not apply in respect of a
share or an option granted before 1 July 2011
if the liability for payroll tax in respect of the
grant is determined in accordance with
Division 2 of Part 3 (as permitted by
subclause (1)).
(6) In this clause—
assessment amendments means the
amendments made by the State
Taxation Acts Amendment Act 2011;
new section 18 means section 18 as amended
by the State Taxation Acts
Amendment Act 2011;
old section 18 means section 18 as in force
immediately before 1 July 2011;
relevant day has the same meaning as it has
in section 18(3).".
34
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 4—Payroll Tax Act 2007
39 Statute law revision—groups arising from tracing of
interests in corporations
In section 73(4) of the Payroll Tax Act 2007, in
the definition of private company, for "Australian
Securities Exchange" substitute "ASX".
__________________
35
s. 39
State Taxation Acts Amendment Act 2011
No. 28 of 2011
s. 40
Part 5—Taxation Administration Act 1997
PART 5—TAXATION ADMINISTRATION ACT 1997
See:
Act No.
40/1997.
Reprint No. 4
as at
29 February
2008
and
amending
Act Nos
84/2008,
83/2009,
86/2009,
6/2010,
23/2010 and
36/2010.
LawToday:
www.
legislation.
vic.gov.au
40 Definitions in Taxation Administration Act 1997
In section 3(1) of the Taxation Administration
Act 1997—
(a) in the definition of assessment, for
"reassessment and a compromise
assessment" substitute "reassessment, a
compromise assessment and a deemed
assessment";
(b) insert the following definitions—
"deemed assessment means a deemed
assessment under section 12A;
on-line duty payment system has the same
meaning as in section 3(1) of the
Duties Act 2000;".
41 New section 12A inserted
After section 12 of the Taxation Administration
Act 1997 insert—
"12A Deemed assessment
(1) If the on-line duty payment system is used in
respect of a dutiable transaction under the
Duties Act 2000, the Commissioner is taken
to have made an assessment of the duty
liability of a taxpayer if the Commissioner
validates the information submitted in
relation to the dutiable transaction by the
user of the on-line duty payment system for
the purpose of payment (including a nil
payment) of the duty calculated by the online duty payment system.
(2) A deemed assessment of a tax liability under
subsection (1) may consist of or include a
determination that there is not a particular
tax liability.".
36
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 5—Taxation Administration Act 1997
42 Notice of assessment or withdrawal of assessment
After section 14(1) of the Taxation
Administration Act 1997 insert—
"(1A) In the case of a deemed assessment, the
Commissioner is deemed to have served a
notice of assessment for the purposes of
subsection (1).".
43 Service of documents by Commissioner
After section 125(1A) of the Taxation
Administration Act 1997 insert—
"(1B) If the on-line duty payment system is used in
respect of a dutiable transaction under the
Duties Act 2000, deemed service of a
deemed assessment under section 14(1A) is
service of a notice of assessment for the
purposes of subsection (1).".
44 When is service effective?
After section 125A(2) of the Taxation
Administration Act 1997 insert—
"(3) If the on-line duty payment system is used in
respect of a dutiable transaction under the
Duties Act 2000, the Commissioner is taken
to have served a deemed assessment on a
taxpayer at the time the Commissioner
validates the information submitted in
relation to the dutiable transaction by the
user of the on-line duty payment system for
the purpose of payment (including a nil
payment) of the duty calculated by the online duty payment system.".
__________________
37
s. 42
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Part 6—Repeal
s. 45
PART 6—REPEAL
45 Repeal of amending Act
This Act is repealed on 1 January 2012.
Note
The repeal of this Act does not affect the continuing operation of
the amendments or repeals made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
═══════════════
38
State Taxation Acts Amendment Act 2011
No. 28 of 2011
Endnotes
ENDNOTES
†
Minister's second reading speech—
Legislative Assembly: 5 May 2011
Legislative Council: 2 June 2011
The long title for the Bill for this Act was "A Bill for an Act to amend the
Duties Act 2000, the First Home Owner Grant Act 2000, the Payroll
Tax Act 2007 and the Taxation Administration Act 1997 and for other
purposes."
39