Northern Territory Explanatory Statements

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REVENUE AND OTHER LEGISLATION AMENDMENT BILL 2010

(ii) a person purchasing a home (including under an off-the-plan contract) has 12 months to occupy the home as their principal place of residence from the date on which they become entitled to possession of the home; and
(iii) these schemes, as amended, apply to persons who would have been entitled but for the previous requirement to have a home built within three years;

· ensure lessees under long-term leases with indigenous land organisations are eligible for the stamp duty home incentive schemes;

· condition the landholder exclusion for financing arrangements to reduce stamp duty avoidance opportunities; and

· clarify that consideration given for the grant of a lease includes consideration given for an option to require the grant of a lease.

The Stamp Duty Act is amended, effective from 1 July 2010, to:

· exempt the establishment of and the transfer of property to a Special Disability Trust from stamp duty where no consideration is paid or payable for the transfer;

· enables a memorandum to be created where it is impractical or not possible for the original instrument to be lodged for reassessment or where the stamp duty paid in relation to the registration of a motor vehicle was not based on the dutiable value of the motor vehicle;

· clarify when an interest to be evidenced by the transfer of shares or units is acquired for landholder duty purposes;

· broaden the concept of family trust for the purposes of the substituted purchaser provisions by allowing a family trust to have a family company as a beneficiary;

· allow stamp duty to be assessed on the value of the land granted by the Territory (i.e. Crown leasehold or Crown freehold) where monetary consideration is payable but is unascertainable at the time of the grant.

The First Home Owner Grant Act is amended, effective 4 May 2010, to ensure lessees under long-term leases with indigenous land organisations are eligible for the first home owner grant.

The Mineral Royalty Act is amended to increase the mineral royalty rate from 18 to 20 per cent, effective 1 July 2010 for all royalty payers.

The Taxation Administration Act is amended to:

· clarify that despite their repeal, the former Pay-roll Tax Act and the former Stamp Duty Act continue to be a “taxation law”; and

· ensure that payments by a taxpayer can be allocated in the order of interest, penalty tax and primary tax.

The Victims of Crime Assistance Act is amended to increase the victims levy for infringement notices from $10 to $20, effective from 1 July 2010.

NOTES ON CLAUSES

PART 1 – PRELIMINARY MATTERS

Clause 1. Short title

This is a formal clause which provides for the citation of the Act. When passed, the Act may be referred to as the Revenue and Other Legislation Amendment Act 2010.

Clause 2. Commencement

This clause provides for various sections of the Bill commencing at different times.

Subclause (1) provides that Part 2 (relating to amendments to the first home owner grant) and Part 4, Divisions 1 and 2 (relating to the changes to the existing stamp duty home incentive schemes, the introduction of a new stamp duty concession for seniors, pensioners and carers, conditioning the landholder exclusion for financing arrangements and clarifying that consideration given for the grant of a lease includes consideration given for an option to require the grant of a lease) are taken to have commenced on 4 May 2010.

Subclause (2) provides that the remainder of the Act commences on 1 July 2010.

Part 2 – Amendment of First Home Owner Grant act

Clause 3. Act amended

The Act being amended by this Part is the First Home Owner Grant Act.

Clause 4. Amendment of section 3 (Definitions)

This clause makes a consequential amendment to the definition of “consideration” in section 3 of the First Home Owner Grant Act. This amendment is a result of new section 13(8A) (inserted by clause 6 of the Bill), which clarifies that the term “consideration” does not include any rent given for a lease or sublease mentioned in section 5(2) of the First Home Owner Grant Act

Clause 5. Amendment of section 5 (Ownership of land and homes)

Subclause (1) makes a consequential amendment to section 5(2)(g) of the First Home Owner Grant Act as a result of the insertion of new section 5(2)(h) by subclause (2).

Subclause (2) inserts new section 5(2)(h) into the definition of “relevant interest” in land, which provides that an interest as lessee or sublessee of land under lease or sublease granted under section 19 or 19A of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) is a relevant interest for the purposes of the First Home Owner Grant Act if the lease is registered and is for a term of 15 years or more.

This ensures that a person who purchases their first home through a lease or sublease granted under these provisions of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) is entitled to the first home owner grant where all of the other eligibility criteria of the grant are satisfied.

This is consistent with the existing First Home Owner Grant Act which recognises as a relevant interest, an interest as lessee or sublessee under a long-term registered lease of at least 15 years that is granted by the Commonwealth or the Territory.

Subclause (3) and (4) make consequential amendments to section 5(3)(a) and (c) of the First Home Owner Grant Act as a result of new section 5(3)(d) (inserted by subclause (4)).

Subclause (5) inserts new section 5(3)(d), which ensures that the lessor or sublessor under a lease or sublease mentioned in section 5(2) of the First Home Owner Grant Act is not an “interested person” under section 15 of the First Home Owner Grant Act and therefore not required to be a joint applicant for the grant.

Clause 6. Amendment of section 13 (Eligible transaction)

This clause inserts new section 13(8A) into the First Home Owner Grant Act, which clarifies that the term “consideration” does not include any rent given for a lease or sublease mentioned in section 5(2) of the First Home Owner Grant Act.

PART 3 – AMENDMENT OF MINERAL ROYALTY ACT

Clause 7. Act amended

The Act being amended by this Part is the Mineral Royalty Act.

Clause 8. Amendment of section 10 (Rate of royalty)

Subclause (1) replaces the existing royalty rate of 18 per cent with a new rate of 20 per cent.

Subclause (2) makes a consequential amendment to section 10(1)(b) of the Mineral Royalty Act as a result of the change in the mineral royalty rate from 18 per cent to 20 per cent by subclause (1).

Subclauses (3), (4) and (5) make minor amendments to give effect to current drafting style.

Clause 9. New Part VIII

This clause inserts new “Part VIII Transitional matters for Revenue and Other Legislation Amendment Act 2010” into the Mineral Royalty Act.

New section 54 provides definitions of terms used in new Part VIII.

New section 55(1) and (2) make it clear that the new rate of 20 per cent applies from 1 July 2010 irrespective of whether a royalty payer’s royalty year commences with the financial year, calendar year or some other date. That is, the new mineral royalty rate of 20 per cent applies to:

· all royalty years that commence on or after 1 July 2010; and

· where a royalty year has commenced before 1 July 2010 and ends after that date, the part of a royalty year from 1 July 2010.

The term “royalty year” is defined in section 4 of the Mineral Royalty Act.

New section 55(3) provides that, where a royalty year has commenced before 1 July 2010 and ends after that date the net value under section 10(2) of the Mineral Royalty Act for each transitional period is to be calculated using an apportioned amount for each element in the formula:

· as agreed with the Secretary by 31 December 2010; or

· if there is no such agreement, as determined by the Secretary.

New section 55(4) clarifies that an apportionment under new section 54(3) may mean apportioning a whole amount of any element, for example to one of the transitional periods and none to the other transitional period.

PART 4 – AMENDMENT OF STAMP DUTY ACT

Division 1 – Preliminary matter

Clause 10. Act amended

The Act being amended by this Part is the Stamp Duty Act.

Division 2 – Amendments commencing on 4 May 2010

Clause 11. Amendment of section 56C (Interpretation)

Subclause (1) makes a minor consequential amendment as a result of the removal of subparagraph 56C(1)(d)(v) of the Stamp Duty Act by subclause (2).

Subclause (2) removes subparagraph (d)(v) of the definition of “acquire” in section 56C(1) of the Stamp Duty Act so that the definition no longer excludes an acquisition that solely occurs as a result of an arrangement for the provision of finance, or the enforcement or termination of such an arrangement.

Instead a deduction from duty will be provided where the Commissioner is satisfied that the acquisition is made only for the purpose of enabling a person (other than the corporation or unit trust scheme in which the interest is held) to obtain finance, obtain an extension of time under a finance arrangement or to enforce or terminate a financing arrangement. (See section 56M(2)(c)(ix) as amended by clause 13 of the Bill).

This will ensure that a person cannot avoid duty by using a purported financing arrangement to self-assess that no statement needs to be lodged under section 56K of the Stamp Duty Act. This is done by requiring a person to lodge a statement under section 56K of the Stamp Duty Act and satisfy the Commissioner that the deduction applies.

Subclause (3) inserts new sections 56C(15) to (17) which provide that in circumstances where an acquisition of an interest is made for the sole purpose of obtaining finance or an extension of the period for which finance was obtained under an earlier arrangement and:

· the acquisition alone is not a significant interest; or

· the acquisition received a deduction under section 56M(2)(c)(ix) of the Stamp Duty Act (as amended by clause 13 of the Bill),

the person from whom the interest was acquired is taken to continue to hold the interest rather than the person who acquired the interest because of the finance arrangement.

This ensures that a person cannot use a deduction provided under section 56M(2)(c)(ix) of the Stamp Duty Act (as amended by clause 13 of the Bill) or a financing arrangement in respect of an interest that is not a significant interest to avoid landholder duty on further acquisitions.

For example, Corporation X has 100 shares and Shareholder A holds 60 of those shares. If:

· Shareholder A transfers his 60 shares in Corporation X to a financier for the sole purpose of obtaining finance and a deduction under section 56M(2)(c)(ix) (as amended by clause 13) is received in relation to that acquisition; and

· Shareholder A then purchases a further 30 shares in Corporation X from Shareholder B,

new sections 56C(15) to (17) would mean that Shareholder A would be taken to still hold the 60 shares in Corporation X rather than the finance provider. As a result, Shareholder A would be required to lodge a statement under section 56K of the Stamp Duty Act and pay duty in relation to the acquisition of the 30 shares in Corporation X from Shareholder B.

New section 56C(17) makes it clear that the period of time that a person from whom the interest was acquired is taken to continue to hold the interest is the earlier of:

· the date that the finance arrangement is enforced or terminated; or

· the date that the person who acquired the interest is required to re-lodge a statement under section 56K(7) of the Stamp Duty Act (inserted by clause 12 below).

The terms “unit” and “unit trust scheme” have not been used explicitly in new section 56C(15) as section 56T of the Stamp Duty Act provides that Part 3, Division 8A of the Stamp Duty Act applies to a unit trust scheme as if it were a corporation.

Clause 12. Amendment of section 56K (When statement to be lodged)

This clause replaces existing section 56K(6) with new sections 56K(6), (7), (8), and (9) as a result of the amendment made to section 56M(2)(c)(ix) by clause 13 of the Bill.

New section 56K(6) sets the conditions that must be met for new section 56K(7) to apply.

The conditions are that within 5 years of the relevant acquisition (or a longer period approved by the Commissioner in writing):

· the person from whom the interest was acquired reacquires the interest; or

· if the interest was acquired by way of mortgage, the interest is on sold by the mortgagee to a third person in exercise of the mortgagee’s power of sale.

These conditions prevent persons from using purported finance arrangements as a means of avoiding landholder stamp duty.

The deduction from landholder duty under section 56M(2)(c)(ix) (as amended by clause 13 of the Bill) does not apply where a mortgagee forecloses on the finance arrangement. This is consistent with the treatment of the foreclosure of a mortgagor's equity of redemption in mortgaged property for the purpose of conveyance duty. (See paragraph (d) of the definition of “conveyance” in section 4(1) of the Stamp Duty Act and item 1(10) of Schedule 1 to the Stamp Duty Act.)

New section 56K(7) provides that if it becomes apparent that neither of the events in subsection (6) will occur within 5 years after the relevant acquisition (or a longer period approved by the Commissioner in writing), the person must re-lodge the statement under section 56K and pay duty (including interest and penalty tax) on the statement as if the deduction under section 56M(2)(c)(ix) of the Stamp Duty Act (as amended by clause 13 of the Bill) did not apply.

This ensures that persons cannot use the deduction from landholder duty under section 56M(2)(c)(ix) of the Stamp Duty Act (as amended by clause 13 of the Bill) as a means to defer or avoid a duty liability.

New section 56K(8) provides that the Commissioner may reassess duty on a statement even if the time limit under the Taxation Administration Act has expired in situations where duty was assessed on the basis that a person was entitled to a deduction under section 56M(2)(c)(ix) of the Stamp Duty Act (as amended by clause 13 of the Bill) and the statement relating to the acquisition is required to be re-lodged pursuant to section 56K(7).

New section 56K(9) provides that it is an offence for a person to fail to comply with subsection 56K(1), (2), (3), (5B) or (7). This is the equivalent of existing section 56K(6), which made it an offence for a person to fail to comply with section 56K(1), (2), (3) or (5B) with the addition of subsection (7) (inserted by subclause (2) above).

Clause 13. Amendment of section 56M (Statement chargeable with duty)

This clause removes existing section 56M(2)(c)(ix) of the Stamp Duty Act and inserts a new section 56M(2)(c)(ix).

Existing section 56M(2)(c)(ix) of the Stamp Duty Act provided a deduction from the duty chargeable on a statement lodged under section 56K of the Stamp Duty Act where an acquisition of an interest was units in a unit trust scheme and the units were acquired for the sole purpose of a financing arrangement. However, the definition of “acquire” in section 56C of the Stamp Duty Act (which is being removed by clause 11 of the Bill) made the provision redundant.

New section 56M(2)(c)(ix) will provide a deduction from the duty chargeable on a statement lodged under section 56K of the Stamp Duty Act where the Commissioner is satisfied that the acquisition is made only for the following reasons:

· to enable a person (other than the corporation or unit trust scheme) to obtain finance;

· to enable that same person to obtain an extension of time under a finance arrangement;

· to enable that same person or the person who provided finance to enforce or terminate the financing arrangement.

This will ensure that a person cannot avoid duty by using the existing subparagraph (d)(v) of the definition of “acquire” in section 56C(1) of the Stamp Duty Act (which is being removed by clause 11 of the Bill) by requiring a person to lodge a statement under section 56K of the Stamp Duty Act and satisfy the Commissioner that the deduction applies.

The terms “unit” and “unit trust scheme” have not been used explicitly in new section 56M(2)(c)(ix) as section 56T of the Stamp Duty Act provides that Part 3, Division 8A of the Stamp Duty Act applies to a unit trust scheme as if it were a corporation.

Clause 14. Amendment of section 88 (Interpretation)

Subclause (1) omits the current definitions of “period for occupancy” and “relevant time” in section 88(1) of the Stamp Duty Act. Subclause (4) inserts new definitions for these terms.

Subclause (2) replaces paragraph (b) of the definition of “first home owner concession” in section 88(1) of the Stamp Duty Act with a new paragraph (b). As a result, the stamp duty first home owner concession changes from the first $385 000 of a property’s value to the first $540 000.

This equates to a maximum first home owner concession of $26 730, which is an additional stamp duty saving of over $11 000.

The increased stamp duty first home owner concession applies to conveyances entered into from 4 May 2010. It does not apply to arrangements to convey property that are made prior to 4 May 2010. Refer to new section 102 inserted into the Stamp Duty Act by clause 18 of this Bill for further information on how the increased first home owner concession will be applied.

Subclause (3) replaces paragraph (b) of the definition of “principal place of residence rebate” in section 88(1) of the Stamp Duty Act with a new paragraph (b). As a result, the stamp duty principal place of residence rebate increases from $2500 to $3500.

Similarly, the increased stamp duty principal place of residence rebate applies to conveyances entered into from 4 May 2010. It does not apply to arrangements to convey property that are made prior to 4 May 2010. Refer to new section 102 inserted into the Stamp Duty Act by clause 18 of this Bill for further information on how the increased principal place of residence rebate will be applied.

Subclause (4) inserts definitions for the terms “comprehensive home building contract” and “owner builder” into section 88(1) of the Stamp Duty Act which ‘signpost’ the location of those definitions as section 3 of the First Home Owner Grant Act.

Subclause (4) also inserts a new definition of the term “period for occupancy” into section 88(1) of the Stamp Duty Act. The new definition of “period for occupancy” better aligns the period for occupancy under the stamp duty home incentives with that applying with respect to the first home owner grant. The amended definition results in the period for occupancy for the stamp duty home incentives being:

· 12 months after the date the conveyees become entitled to possession of the land under the conveyance for situations where there is a home built on the land at the time when the instruments effecting or evidencing a conveyance of land are executed;

· the earlier of 5 years after the date the conveyees became entitled to possession of the land or 12 months from the completion of the building of the home for situations where no home is built on the land at the time when the instruments effecting or evidencing a conveyance of land are executed and the conveyees are owner builders or have entered into a comprehensive home building contract;

· 12 months after the date the conveyees become entitled to possession of the land under the conveyance for situations where there is no home built on the land at the time when the instruments effecting or evidencing a conveyance of land are executed and the conveyees have entered an off-the-plan contract; or

· in any case, a longer period approved by the Commissioner under sections 89(11) or 90(8) of the Stamp Duty Act or new section 89A(10) (inserted by clause 16 of the Bill).

Transitional matters in relation to the increase in the “period for occupancy” are provided for in new section 103, which is inserted by clause 18 of the Bill.

The new definition of “relevant time” makes it clear that where more than one instrument effects or evidences a conveyance, the relevant time is the time that the first of those instruments is executed.

Subclause (5) inserts definitions for the terms “conveyance”, “conveyee” and “senior, pensioner and carer concession” into section 88(1) of the Stamp Duty Act.

The new definitions of “conveyance” and “conveyee” ensure that an interest in land that may entitle a person to the first home owner grant (if the other criteria of the grant are met) may also entitle a person to the stamp duty home incentive schemes (if the other criteria of the stamp duty home incentive schemes are satisfied).

The new definition of “senior, pensioner and carer concession” defines the new stamp duty concession inserted by clause 16 of the Bill.

Clause 15. Amendment of section 89 (First home owner concession)

Subclause (1) makes a minor consequential amendment to section 89(1)(i) of the Stamp Duty Act as a result of the new definition of “period for occupancy” (inserted by clause 14 of the Bill).

The changes to section 89(1)(i) of the Stamp Duty Act ensure that the Commissioner’s ability to approve an extension of the period for occupancy under section 89(11) of the Stamp Duty Act includes the ability to extend the time in which a conveyee has to build a home.

Subclause (2) makes a minor consequential amendment to section 89(1)(j) of the Stamp Duty Act as a result of the insertion of new section 89(1)(k) by subclause (3).

Subclause (3) inserts new section 89(1)(k) which ensures that, consistent with the first home owner grant, a person is not entitled to the stamp duty first home owner concession where a home is purchased subject to a lease that will not expire within 12 months after settlement of the conveyance.

New section 89(1)(k) is also a consequence of the amendment made by clause 14 of the Bill to the definition of “period for occupancy” in section 88(1) of the Stamp Duty Act.

Subclause (4) inserts new section 89(3A) which provides the Commissioner with the ability to reassess duty where a person would receive the stamp duty first home owner concession but for the expiry of the 5 year reassessment period under section 21 of the Taxation Administration Act.

This ensures that the changes to the definition of “period for occupancy” in section 88(1) of the Stamp Duty Act (made by clause 14 of the Bill) do not result in the time of an application for the concession (e.g. the time construction of a home commences or the time a home is completed) determining whether a person is eligible.

Subsection (5) makes a minor consequential amendment to section 89(11)(b) as a result of subclause (6).

Subclause (6) inserts new section 89(11)(c) which provides the Commissioner with the ability to extend the period in which the conveyees need to become entitled to possession of the land to be eligible for the stamp duty first home owner concession.

Clause 16. New section 89A

This clause inserts new section 89A into the Stamp Duty Act.

New section 89A sets out the eligibility criteria and other conditions for the new stamp duty senior, pensioner and carer concession. This concession will be available where at least one of the conveyees is either:

· 60 years of age or older at the time that the instruments effecting or evidencing a conveyance of land are executed; or

· a holder of an NT Pensioner and Carer Concession Card at the time that the instruments effecting or evidencing a conveyance of land are executed.

Other eligibility criteria and conditions for the senior, pensioner and carer concession are similar to those existing for the first home owner concession and principal place of residence rebate.

The use of the term “conveyees” rather than the term “conveyee or conveyees” as in existing sections 89 and 90 of the Stamp Duty Act is a result of changes in drafting style. Section 24(2)(b) of the Interpretation Act provides that words in the plural include the singular.

Clause 17. Amendment of section 90 (Principal place of residence rebate)

Subclause (1) makes it clear that a person cannot be entitled to both the principal place of residence rebate as well as the new senior, pensioner and carer concession.

Subclause (2) makes a minor consequential amendment to section 90(1)(f) of the Stamp Duty Act as a result of the new definition of “period for occupancy” (inserted by clause 14 of the Bill) and inserts new section 90(1)(g).

The changes to section 90(1)(f) of the Stamp Duty Act ensure that the Commissioner’s ability to approve an extension of the period for occupancy under section 90(8) of the Stamp Duty Act includes the ability to extend the time in which a conveyee has to build a home.

New section 90(1)(g) is a consequential amendment as a result of the amendment made by clause 14 of the Bill to the definition of “period for occupancy” in section 88(1) of the Stamp Duty Act. This ensures that, consistent with the first home owner grant, a person is not entitled to the stamp duty principal place of residence rebate where a home is purchased subject to a lease that will not expire within 12 months after settlement of the conveyance.

Subclause (3) inserts new section 90(3A) which provides the Commissioner with the ability to reassess duty where a person would receive to the stamp duty principal place of residence rebate but for the expiry of the 5 year reassessment period under section 21 of the Taxation Administration Act.

This ensures that the changes to the definition of “period for occupancy” in section 88(1) of the Stamp Duty Act (made by clause 14 of the Bill) do not result in the time of an application for the concession (e.g. at the time construction of a home commences or the time the home is completed) determining whether a person is eligible.
Subsection (4) makes a minor consequential amendment to section 90(8)(b) of the Stamp Duty Act as a result of subclause (5).

Subclause (5) inserts new paragraph 90(8)(c) which provides the Commissioner with the ability to extend the period in which the conveyees need to become entitled to possession of the land to be eligible for the stamp duty first home owner concession.

Clause 18. New Part 8

This clause inserts a new Part 8 into the Stamp Duty Act. Part 8 contains the transitional provisions for the Revenue and Other Legislation Amendment Act 2010.

New section 100 defines the term “2010 amending Act” for the purpose of new Part 8.

New section 101 provides that the previous definition of “acquire” in section 56C(1) of the Stamp Duty Act continues to apply to financing arrangements entered into before 4 May 2010 irrespective of when they are completed.

New section 102 provides that the increased first home owner concession and principal place of residence rebate apply in relation to a conveyance of land executed on or after 4 May 2010, except where:

· the instrument effecting the conveyance replaces an instrument executed before 4 May 2010 to effect the conveyance of the same or substantially similar land; or

· the conveyee or conveyees had an option, granted before 4 May 2010, to purchase the land; or

· the conveyor had an option, granted before 4 May 2010, to require the conveyee to purchase the land.

New section 103 provides that the Commissioner has the ability to determine that a person is entitled to the first home owner concession or the principal place of residence rebate where a person would have been entitled but for the former requirement to have a home built within three years.

This addresses an inequity that may have arisen as a result of the former three-year to build requirement. Where a conveyee applies for a reassessment, the duty is to be determined on the basis of the new timeframe for the “period for occupancy”, as amended by the Bill.

Clause 19. Amendment of Schedule 1 (Dutiable instruments and rates of duty)

Notwithstanding the broad meaning of consideration in the stamp duty context in terms of what passes that moves the grant of a lease, this clause clarifies that consideration given for the grant of a lease includes consideration given for an option to require the grant of a lease.

Division 3 – Amendments commencing on 1 July 2010

Clause 20. Amendment of section 4 (Interpretation)

This clause extends the definition of “family trust” in section 4(1) of the Stamp Duty Act so that a “family trust” is a trust whose beneficiaries are and may only be members of the family or family companies of the family. A “family company” is defined in section 4(1) to be a company where all shareholders are members of the same family.

Clause 21. Amendment of section 17A (Stamp duty on related instruments)

This clause amends section 17A(2B)(c) of the Stamp Duty Act by removing the words “an individual who is”.

This will enable the concessional stamp duty treatment under section 17A(2A) of the Stamp Duty Act to apply in situations where the purchaser and transferee are a family company that is a beneficiary of a family trust and a trustee of the family trust provided the other conditions of 17A(2A) of the Stamp Duty Act are satisfied.

Clause 22. Amendment of section 56C (Interpretation)

This clause removes section 56C(8) of the Stamp Duty Act as a consequence of the insertion of new section 56CAA by clause 23 of the Bill.

Former section 56C(8) provided that where an interest in a corporation or unit trust was to be evidenced by a transfer of shares or units, the acquisition was deemed to have occurred on the date that the “transfer is made”. Subject to the terms of a particular corporation’s constitution or unit trust’s deed, this is regarded as being the earlier of:

· the date that the person became beneficially entitled to the shares or units (i.e. the date on which the consideration for the shares or units was paid and that the documents evidencing the transfer of, or the title to, the shares or units are delivered to the person acquiring the shares or units or someone else on that person's behalf); and

· the date that the person became legally entitled to the shares or units (i.e. the date that the name of the person acquiring the shares or units is registered on the register of the members of the corporation or unit trust scheme).

Clause 23. New section 56CAA

This clause inserts new section 56CAA into the Stamp Duty Act, which replaces existing section 56C(8) of the Stamp Duty Act.

New section 56CAA(1) states that new section 56CAA applies to an acquisition of an interest in a corporation or unit trust scheme that is, or is to be, evidenced by a transfer of shares or units.

New section 56CAA(2) provides that the acquisition is taken to occur on the earliest date of certain specified events, being:

· the date that the documents evidencing the transfer of, or the title to, the shares or units are delivered to the person acquiring the shares or units or someone else on that person's behalf;

· the date that all or any part of the consideration for the shares or units is given to the person from whom the shares or units are acquired or someone else on that person's behalf;

· the date that the name of the person acquiring the shares or units is registered on the register of the members of the corporation or unit trust scheme. This is the date that appears as the registration date in the register.

New sections 56CAA(3) and (4) provide the Commissioner with the ability to determine that an acquisition did not occur and assess or reassess a persons liability to landholder duty where the acquisition is taken to have occurred on the date that all or any part of the consideration is given and the transaction for the transfer of shares or units is subsequently rescinded, annulled or otherwise terminated. This is provided neither of the following apply:

· the documents evidencing the transfer of, or the title to, the shares or units have been delivered to the person acquiring the shares or someone else on that person's behalf; or

· the name of the person acquiring the shares or units has been registered on the register of the members of the corporation or unit trust scheme.

New section 56CAA(5) makes it clear that the person who is taken to have made an acquisition on a particular date is also taken to be the shareholder in relation to those shares from that date and the person from whom the shares are taken to have been acquired ceases to be a shareholder in relation to those shares from that date.

New section 56CAA(6) ensures that where the Commissioner determines under section 56CAA(4) that an acquisition did not occur and assesses or reassesses a person’s liability to landholder duty on that basis:

· the person taken to be a shareholder in relation to those shares under section 56CAA(5)(a) is taken to have not been the shareholder of those shares; and

· the person taken to have ceased to be a shareholder in relation to those shares under section 56CAA(5)(b) is taken to have not ceased being the shareholder of those shares.

The terms “unit” and “unit trust scheme” have not been used explicitly in new section 56CAA as section 56T of the Stamp Duty Act provides that Part 3, Division 8A of the Stamp Duty Act applies to a unit trust scheme as if it were a corporation.

Clause 24. Amendment of section 86 (Creation of memorandum for the purpose of assessment)

Subclause (1) omits and substitutes section 86(1)(b) of the Stamp Duty Act so that the Commissioner can create a memorandum in circumstances where the Commissioner has reason to suspect or knows that a dutiable transaction has occurred and it is impractical or impossible for the original, or a copy of the original, instrument to be lodged for assessment or reassessment.

Subclause (2) omits and substitutes section 86(3)(b) of the Stamp Duty Act to ensure that the Commissioner can create a memorandum where a motor vehicle registered under the Motor Vehicles Act is sold or disposed of and the duty paid by the new owner was not based on the correct dutiable value of the vehicle.

Clause 25. New section 104

This clause inserts new section 104 into new Part 8 of the Stamp Duty Act. New Part 8 of the Stamp Duty Act is inserted by clause 18 of the Bill.

New section 104 provides that where a transfer is not “made” before 1 July 2010 (as contemplated by section 56C(8) of the Stamp Duty Act as in force prior to 1 July 2010), but one or more of the following occurs on or after 1 July 2010:

· the documents evidencing the transfer of, or the title to, the shares or units are delivered to the person acquiring the shares or units or someone else on that person's behalf; or

· all or any part of the consideration for the shares or units is given to the person from whom the shares or units are acquired or someone else on that person's behalf; or

· the name of the person acquiring the shares or units is registered on the register of the members of the corporation or unit trust scheme,

the acquisition is taken to occur on the earliest of these events that occurs on or after 1 July 2010, notwithstanding that for example consideration for the shares was provided before 1 July 2010.

Clause 26. Amendment of Schedule 1 (Dutiable instruments and rates of duty)

Subclause (1) replaces item 1(9) of Schedule 1 to the Stamp Duty Act.

New item 1(9) provides that where a conveyance is a grant by the Northern Territory of an estate in fee simple in land, or of a convertible Crown lease, for monetary consideration:

· stamp duty is calculated at the ad valorem rate on the amount of the consideration; or

· if all or part of that consideration is not ascertainable at the time of the grant, stamp duty is calculated on the amount of the ascertainable consideration or the unencumbered value of the land at the time of the grant (whichever is the greater).

Subclause (2) makes it clear that $20 deed duty does not apply to deeds relating to a Special Disability Trust as defined in the Social Security Act 1991 (Cth) or Veterans Entitlement Act 1986 (Cth).

Clause 27. Amendment of Schedule 2 (Exemptions from duty)

Subclause (1) makes a minor consequential amendment to item 6(d) of Schedule 2 to the Stamp Duty Act as a result of new item 6(e) inserted by subclause (2).

Subclause (2) inserts new item 6(e) into Schedule 2 to the Stamp Duty Act so that conveyances made to Special Disability Trusts are exempt from duty where no consideration is provided for the conveyance.

Subclause (3) makes a minor consequential amendment to item 12(b) of Schedule 2 to the Stamp Duty Act as a result of the changes made to item 1(9) of Schedule 1 to the Stamp Duty Act by clause 26 of the Bill.

PART 5 – AMENDMENT OF TAXATION ADMINISTRATION ACT

Clause 28. Act amended

The Act being amended by this Part is the Taxation Administration Act.

Clause 29. Amendment of section 3 (Interpretation)

This clause removes the definition of “taxation law” from section 3(1) of the Taxation Administration Act as a consequence of new section 3A being inserted by clause 30 of the Bill.

Clause 30. New section 3A

This clause inserts new section 3A which replaces the current definition of “taxation law” in section 3(1) Taxation Administration Act.

New section 3A makes it clear that the repealed Pay-roll Tax Act (and its regulations) and the former Stamp Duty Act (and its regulations), and the Taxation (Administration) Act (and its regulations) continue to be “taxation law” under the Taxation Administration Act.

Clause 31. New section 56A

This clause inserts new section 56A into the Taxation Administration Act

New section 56A(1) ensures that payments by a taxpayer can be allocated in the order of interest, penalty tax and lastly any other tax (the latter includes primary tax in particular).

New section 56A(2) allows the Commissioner to decide to allocate payments in a manner other than that outline in new section 56A(1).

New section 56A(3) makes it clear that the operation of section 56 of the Taxation Administration Act, which allows the Commissioner to approve an arrangement for payment of tax by instalments with conditions, is not affected by new section 56A.

Clause 32. Amendment of Part 15 heading

This clause makes a minor consequential amendment to the heading of Part 15 of the Taxation Administration Act as a result of new Part 16 inserted by clause 33 of the Bill.

Clause 33. New Part 16

This clause inserts new Part 16 into the Taxation Administration Act.

New section 166 ensures that the amendments made by clause 29 and 30 of the Bill to the definition of “taxation law” have effect in relation to a tax liability accrued at any time other than as provided for by Part 15 “transitional provisions” of the Taxation Administration Act.

PART 6 – VICTIMS OF CRIME ASSISTANCE ACT

Clause 34. Act amended

The Act being amended by this Part is the Victims of Crime Assistance Act.

Clause 35. Amendment of section 61 (Imposition of levy)

Section 61(6)(a) of the Victims of Crime Assistance Act is amended to increase the victims levy for infringement notices and enforcement orders from $10 to $20. This levy provides a source of revenue for the Victims Assistance Fund contributing to funding for the administration of, and payments to, victims of crime.

Clause 36. New Part 9

This clause inserts a new Part 9 “Transitional matters for Revenue and Other Legislation Amendment Act 2010” and new section 76 after section 75 of the Victims of Crime Assistance Act. New section 76 will provide that the increase in the levy only applies in relation to offences committed on or after the commencement date of 1 July 2010.

Part 7 – other matters

Clause 37. Further amendments of Acts

This clause provides that the Schedule to the Bill has effect. The Schedule provides for minor consequential amendments to the First Home Owner Grant Act, Mineral Royalty Act and Stamp Duty Act.

Clause 38. Expiry

This clause provides that the Revenue and Other Legislation Amendment Act 2010 will expire on the day after which it commences. As a result of section 6B of the Interpretation Act, the day after which this Act commences is the day after which the last provision of this Act commences.

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