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REVENUE LAW REFORM (BUDGET INITIATIVES) BILL 2008

Serial 146
Revenue Law Reform (Budget Initiatives) Bill 2008
Ms Lawrie






A Bill for an Act to amend the Stamp Duty Act, the First Home Owner Grant Act and the Taxation Administration Act and to make miscellaneous minor amendments to other legislation













NORTHERN TERRITORY OF AUSTRALIA

REVENUE LAW REFORM (BUDGET INITIATIVES) ACT 2008

____________________

Act No. [ ] of 2008

____________________

TABLE OF PROVISIONS

97A Transitional provision (rates of duty)

97B Transitional provision (dutiable property)
42 Misleading statements and documents

43A Time for bringing prosecutions
52 Transitional provision (rates of interest on pre-existing liabilities)

bill_text00.jpg
NORTHERN TERRITORY OF AUSTRALIA

____________________

Act No. [ ] of 2008

____________________

An Act to amend the Stamp Duty Act, the First Home Owner Grant Act and the Taxation Administration Act and to make miscellaneous minor amendments to other legislation


[Assented to [ ] 2008]

[Second reading [ ] 2008]

The Legislative Assembly of the Northern Territory enacts as follows:

Part 1 Formal provisions
1 Short title

This Act may be cited as the Revenue Law Reform (Budget Initiatives) Act 2008.

2 Commencement

(1) The following provisions are taken to have commenced on 1 January 2008:

(a) this Part;

(b) section 3;

(c) section 12(1);

(d) section 18;

(e) section 19.

(2) The following provisions are taken to have commenced on
6 May 2008:

(a) section 7;

(b) section 10;

(c) section 11(1).

(3) The remaining provisions of this Act commence on 1 July 2008.

Part 2 Amendment of Stamp Duty Act
3 Act amended

This Part amends the Stamp Duty Act.

4 Amendment of section 4 (Interpretation)

(1) Section 4(1)

insert (in alphabetical order)

farm-in agreement means a written agreement under which a person is entitled to acquire an interest in (but not full ownership of) a mining tenement by carrying out exploration work, or contributing a proportionate part of the cost of exploration work to be carried out, on the area of that mining tenement after the date of the agreement.

(2) Section 4(1), definition mining tenement

omit, substitute

mining tenement means a statutory licence, lease or authorisation to explore for, recover or exploit resources (such as minerals or geothermal resources) to be found in or under the surface of the earth and includes an exploration licence or an exploration retention licence under the Mining Act.

(3) Section 4(1), definition conveyance

omit

and includes an instrument effecting or evidencing a conveyance (including a decree, judgment or order of a court)

substitute

(g) an instrument effecting or evidencing a conveyance (including a decree, judgment or order of a court);

(h) an instrument, agreement, transaction or arrangement that would operate as a conveyance but for a statutory condition requiring Ministerial approval or registration.

5 Amendment of section 4AB (Dutiable value)

After section 4AB(3)

insert

(4) If:

(a) dutiable property consists of an interest in an exploration licence or exploration retention licence under the Mining Act; and

(b) the conveyance of the interest arises out of the operation of a farm-in agreement; and

(c) the exploration work, or the contribution to the cost of exploration work, in respect of which the right to the interest arises under the farm-in agreement has actually been carried out or made;

then, for the purpose of assessing the dutiable value of the interest, its unencumbered value will be determined as at the date of the farm-in agreement and the consideration will be taken to be the amount by which the consideration given for the interest exceeds the reasonable cost of the exploration work or (where the consideration consists of a contribution to the cost of exploration work) the relevant proportion of that reasonable cost.

6 Amendment of section 9 (Time for lodgement of instrument etc.)

Section 9(3)(c)(iii)

omit

7 Amendment of section 88 (Interpretation)

Section 88(1), definition first home owner concession, paragraph (b)

omit, substitute

(b) the duty payable on a conveyance of land with a dutiable value of $385 000.

8 Amendment of section 89 (First home owner concession)

(1) Section 89(2)

omit, substitute

(2) If:

(a) there are 2 or more conveyees and not all of the conveyees will be able to occupy a home on the land as their principal place of residence within the period for occupancy, but they would, but for that fact, be entitled to the first home owner concession; and

(b) at least one of the conveyees will be able to commence to occupy a home on the land as his or her principal place of residence for the prescribed period commencing within the period for occupancy; and

(c) there are special reasons for exempting the other conveyee or conveyees from the occupancy requirements;

the Commissioner may grant an exemption accordingly and authorise the concession.

(2) Section 89(3), at the end

insert

Note

This subsection does not apply to a conveyee who has an exemption from the relevant occupancy requirement.

9 Amendment of section 90 (Principal place of residence rebate)

(1) Section 90(2)

omit, substitute

(2) If:

(a) there are 2 or more conveyees and not all of the conveyees will be able to occupy a home on the land as their principal place of residence within the period for occupancy, but they would, but for that fact, be entitled to the principal place of residence rebate; and

(b) at least one of the conveyees will be able to commence to occupy a home on the land as his or her principal place of residence for the prescribed period commencing within the period for occupancy; and

(c) there are special reasons for exempting the other conveyee or conveyees from the occupancy requirements;

the Commissioner may grant an exemption accordingly and authorise the rebate.

(2) Section 90(3), at the end

insert

Note

This subsection does not apply to a conveyee who has an exemption from the relevant occupancy requirement.

10 New sections 97A and 97B

After section 97

insert

97A Transitional provision (rates of duty)

(1) Subject to subsection (2), the relevant amendments apply to a conveyance first executed on or after 6 May 2008 and, if a conveyance was first executed before that date, this Act applies as if the relevant amendments had not been made.

(2) This Act also applies to a conveyance as if the relevant amendments had not been made if:

(a) the conveyance replaces an earlier conveyance, first executed before 6 May 2008, of the same or substantially similar property; or

(b) the conveyee entered into a contract or option, before 6 May 2008, to purchase the property to which the conveyance relates, or substantially similar property; or

(c) the conveyor had an option, granted before 6 May 2008, to require the conveyee to purchase the property to which the conveyance relates or substantially similar property.

(3) In this section:

relevant amendments means:

(a) the amendment made by the Revenue Law Reform (Budget Initiatives) Act 2008 to the definition of first home owner concession in section 88; and

(b) the amendments made by the Revenue Law Reform (Budget Initiatives) Act 2008 to the rate of ad valorem conveyance duty under this Act.

97B Transitional provision (dutiable property)

(1) A conveyance of relevant property is not liable to duty if:

(a) the conveyance was first executed before the commencement of the relevant amendment; or

(b) the conveyance is made before 1 July 2009 in pursuance of an agreement to make the conveyance entered into before the commencement of the relevant amendment.

(2) In this section:

relevant amendment means the amendment made by Revenue Law Reform (Budget Initiatives) Act 2008 under which certain mining tenements that were not formerly dutiable property became dutiable property.

relevant property means property that becomes dutiable property as a result of the relevant amendment.

11 Amendment of Schedule 1

(1) Schedule 1, clause 1(2)

omit, substitute

(2) Subject to this clause, the duty payable on a conveyance of dutiable property is determined at the ad valorem rate as follows:

(a) if the dutiable value of the dutiable property subject to the conveyance does not exceed $525 000:

D = (0.06571441 x V2) + 15V

where:

D is the duty (expressed in dollars)

V is 1/1 000 of the dutiable value (expressed in dollars)

(b) if the dutiable value exceeds $525 000, the duty is 4.95% of the dutiable value.

(2) Schedule 1, clause 2(1)

omit, substitute

(1) A deed:

(a) that is not chargeable with ad valorem duty; and

(b) that:

(i) constitutes a trust; or

(ii) varies a trust in any way; or

(iii) deals with actual, potential or contingent interests or entitlements under a trust; or

(iv) extinguishes a trust;

is a dutiable instrument.

(3) Schedule 1, clause 2(3)

omit

12 Amendment of Schedule 2

(1) Schedule 2, item 6(b)

omit, substitute

(b) made by a trustee of a non-discretionary trust to a beneficiary where:

(i) the conveyance is made in accordance with the terms of the trust (but not for valuable consideration); and

(ii) the property conveyed was acquired by the trustee by virtue of an instrument that was duly stamped, was exempt from duty under this Schedule (or a corresponding previous enactment) or was for some other reason not liable to duty; or

(2) Schedule 2, item 9

omit, substitute

9. Grant of a mining tenement, or of a statutory licence or permission used in or in connection with a business undertaking, unless, in the opinion of the Commissioner, the grant forms part of a wider transaction amounting, in effect, to a transfer of the mining tenement, licence or permission.

(3) Schedule 2, item 12, paragraph (b)

omit

given.

insert

given; or

(4) Schedule 2, item 12, after paragraph (b)

insert

(c) a grant of a mining tenement.

(5) Schedule 2, items 24 to 28

omit

Part 3 Amendment of First Home Owner Grant Act
13 Act amended

This Part amends the First Home Owner Grant Act.

14 Amendment of section 3 (Definitions)

Section 3

insert (in alphabetical order)

statutory interest rate, see section 35 of the Taxation Administration Act.

15 Amendment of section 41 (Power to recover amount paid in error etc.)

Section 41(12)

omit, substitute

(12) Interest accrues under this section at the statutory interest rate as in force from time to time.

16 Repeal and substitution of sections 42 and 43A

Sections 42 and 43A

repeal, substitute

42 Misleading statements and documents

(1) A person must not make a statement to a person who is carrying out functions for, or related to, the administration of this Act (an official) that is misleading in a material particular.

Fault element: Awareness that the statement is or may be misleading or reckless indifference to whether the statement is or may be misleading.

Maximum penalty: Imprisonment for 2 years.

(2) A person must not give an official a document that is misleading in a material particular.

Fault element: Awareness that the document is or may be misleading or reckless indifference to whether the document is or may be misleading.

Maximum penalty: Imprisonment for 2 years.

(3) This section extends to a statement or document that is misleading because of the omission of relevant information as well as to one that is misleading because it consists of, or includes, misinformation.

(4) However, no offence is committed against subsection (2) if the person, when giving the document to the official:

(a) draws the misleading aspect of the document to the official's attention; and

(b) to the extent the person can reasonably do so, gives the official the information necessary to correct the document.

43A Time for bringing prosecutions

A proceeding for an offence against this Act must be commenced:

(a) if alleged to have been committed before 1 July 2008 – within 3 years after the offence is alleged to have been committed; or

(b) if alleged to have been committed on or after 1 July 2008 – within 5 years after the offence is alleged to have been committed.

17 New section 52

After section 51

insert

52 Transitional provision (rates of interest on pre-existing liabilities)

(1) Interest accrues under section 41(3) on a liability arising before the commencement of the relevant amendment:

(a) up to the commencement of the relevant amendment – at the rate applicable before the commencement of the relevant amendment; and

(b) after the commencement of the relevant amendment – at the rate prescribed by the relevant amendment.

(2) In this section:

relevant amendment means the amendment made by Revenue Law Reform (Budget Initiatives) Act 2008 to section 41(12).

Part 4 Amendment of Taxation Administration Act
18 Act amended

This Part amends the Taxation Administration Act.

19 Amendment of section 59 (Recovery from partnership and other groups)

Section 59(2)

omit

taxpayers

substitute

persons

20 Amendment of section 101 (Definitions)

Section 101, definition law enforcement agency

omit, substitute

law enforcement agency means any of the following:

(a) a member of the police force of the Territory;

(b) the Director of Public Prosecutions;

(c) any other authority or person responsible for the enforcement of laws of the Territory;

(d) the Australian Crime Commission;

(e) ASIC;

(f) the Australian Federal Police;

(g) Centrelink;

(h) the Commonwealth department or agency primarily responsible for regulating immigration;

(i) a member of the police force of a State or another Territory;

(j) any other authority or person responsible for enforcement of the laws of the Commonwealth, a State or another Territory.

Part 5 Consequential amendments
21 Amendment of other laws

The Schedule amends the laws mentioned in it.

Schedule Amendment of other laws

section 21

Provision
Amendment

omit
substitute
Agents Licensing Regulations


Schedule 1, Forms 1, 2 and 3, Schedules 4B and 5
Taxation (Administration) Act
(all references)
Taxation Administration Act
Associations Act


section 6(3)(c)(v)
Commissioner of Taxes
Commissioner of Territory Revenue
Co-operatives Act


section 447(4)(c)
Commissioner of Taxes
Commissioner of Territory Revenue
Debits Tax Act


Schedule 2, definition Commissioner, column 3
Taxation (Administration) Act
Taxation Administration Act
Debits Tax Regulations


regulation 4(b)
section 17A of the Taxation (Administration) Act
section 17A of the Taxation (Administration) Act as in force before 1 January 2008
De Facto Relationships Act


section 50
Commissioner of Taxes
Commissioner of Territory Revenue
Energy Resource Consumption Levy Act


section 3(1), definition Commissioner
Commissioner of Taxes under the Taxation (Administration) Act
Commissioner of Territory Revenue under the Taxation Administration Act
section 15, heading
Taxation (Administration) Act
Taxation Administration Act
section 15(2)
Taxation (Administration) Act
Taxation Administration Act
section 15(2)(a)
that Act;
a taxation law; and
section 15(2)(b)
that Act; and
a taxation law; and
section 15(2)(c)
that Act.
a taxation law.
Financial Institutions Duty Act


sections 4, 21 and 22(5), (6), (8) and (9)
Taxation (Administration) Act
(all references)
Taxation Administration Act
section 23
whole section
The Administrator may make regulations under this Act.
Financial Institutions Duty Regulations


regulation 2(1)
section 126(1) of the Taxation (Administration) Act
section 126(1) of the Taxation (Administration) Act as in force before 1 January 2008
regulation 4(d)
whole paragraph

regulation 4(e)(ii)
section 17A of the Taxation (Administration) Act
section 17A of the Taxation (Administration) Act as in force before 1 January 2008
Fuel Subsidies Act


section 3(1), definition Commissioner
whole definition
Commissioner means the Commissioner of Territory Revenue appointed under section 6 of the Taxation Administration Act and includes any person performing the functions and exercising the powers of the Commissioner under that Act.
section 14(3)
Division 8A of Part III of the Taxation (Administration) Act
Part 3, Division 8A of the Stamp Duty Act
Gaming Control Act


sections 25(2), 46N(2) and 47N(2)
Part 6 of the Taxation (Administration) Act
(all references)
Part 7 of the Taxation Administration Act
section 71(2)(b)(iv)
Taxation (Administration) Act
(all references)
Taxation Administration Act
Gaming Control (Gaming Machines) Regulations


regulation 2, definition Commissioner
whole definition
Commissioner means the Commissioner of Territory Revenue as defined in section 3(1) the Taxation Administration Act.
regulation 8
Taxation (Administration) Act
Taxation Administration Act
regulation 8(a) and (b)
that Act;
a taxation law; and
regulation 8(c)
that Act; and
a taxation law; and
Gaming Machine Act


section 22(2)(b)(iv)
Taxation (Administration) Act
(all references)
Taxation Administration Act
Information Act


Schedule 1, entries for Debits Tax Act, First Home Owner Grant Act and Pay-roll Tax Act
whole entry

Schedule 1, entry for Taxation (Administration) Act
whole entry
Taxation Administration Act section 102
Mineral Royalty Act


Part II, Note and section 42A(3)
Part V of the Taxation (Administration) Act
Part 11 of the Taxation Administration Act
section 50(2)(c)
Commissioner of Taxes
Commissioner of Territory Revenue
Powers of Attorney Regulations


regulation 5(1A)(b)(iv)
whole subparagraph

Schedule 2, Form 1
Commissioner of Taxes Use only


The original must show the imprint of the Commissioner of Taxes as being stamped (Stamp Duty)

Schedule 2, Form 2
Commissioner of Taxes Use only (where revoked by deed)


A revocation by way of deed must bear the imprint of the Commissioner of Taxes (Stamp Duty)

Racing and Betting Act


section 79(c)
Commissioner of Taxes
Commissioner of Territory Revenue
Registration of Interests in Motor Vehicles and Other Goods Act


section 7
Taxation (Administration) Act
Taxation Administration Act
Totalisator Licensing and Regulation Act


section 32, definition Commissioner of Taxes
whole definition
Commissioner of Territory Revenue means the Commissioner as defined in section 3(1) of the Taxation Administration Act.
section 33, heading
Taxation (Administration) Act
Taxation Administration Act
section 33(1)
whole subsection
(1) Subject to this Division, the Taxation Administration Act applies, with the necessary changes, to the payment and recovery of wagering tax as if:


(a) wagering tax were a tax payable under a taxation law; and
(b) a return under this Division were a return required to be lodged under a taxation law; and
(c) a licensee were a person liable to pay tax under a taxation law.
section 33(2)
Taxation (Administration) Act
Taxation Administration Act
sections 34(1), 35(2) and 36(1) and (2)(c) and (d)
Commissioner of Taxes
Commissioner of Territory Revenue
Totalisator Licensing and Regulation Regulations


regulation 5(b)
Commissioner of Taxes within the meaning of section 4(1) of the Taxation (Administration) Act
Commissioner of Territory Revenue as defined in section 3(1) of the Taxation Administration Act


 


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