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State Taxation Acts Amendment Act 2019
No. of 2019
TABLE OF PROVISIONS
Clause Page
Part 1--Preliminary 1
1 Purposes 1
2 Commencement 2
Part 2--Amendment of Duties Act 2000 3
Division 1--Public unit trust schemes 3
3 Definitions--public unit trust scheme 3
4 Conversion of a private unit trust scheme to a public unit trust
scheme 3
Division 2--Fixtures 3
5 Definitions--fixtures 3
6 What is dutiable property? 4
7 Aggregation of certain dutiable transactions 4
8 New sections 57FA and 57FB inserted 5
Division 3--Economic entitlements in relation to land and
landholders 7
9 Definitions--economic entitlement 7
10 New Part 4B inserted in Chapter 2 7
11 What are land holdings? 11
12 New section 72A inserted 12
13 Acquisition of economic entitlement 12
Division 4--Foreign purchasers 13
14 Foreign purchasers--duty in respect of change of use of land 13
15 Rate for additional duty chargeable for foreign purchasers--
residential property 13
Division 5--Motor vehicle duty 13
16 Definitions--motor vehicle duty 13
17 What is the rate of duty? 14
18 Licensed motor car traders--trading stock, demonstrator
vehicles and driver education 16
19 Primary producer vehicles 16
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Clause Page
20 Duty on statement of change of use 16
Division 6--Corporate reconstructions 17
21 Amendment of headings--corporate reconstructions 17
22 What is a corporate group? 18
23 What is an eligible transaction--corporate reconstructions 18
24 Concession and exemptions for certain transactions arising out
of corporate reconstruction 19
25 Sections 250C and 250D repealed 20
26 What is an eligible transaction--corporate consolidations 20
27 Concession for certain transactions arising out of corporate
consolidation 21
28 Sections 250DE and 250DF repealed 22
29 Section 250DI substituted 22
30 Sections 250DJ and 250DK repealed 22
31 Division 2 of Part 2 of Chapter 11 repealed 22
Division 7--Transfers of commercial and industrial land in
regional Victoria 23
32 New Division 5A inserted in Part 5 of Chapter 2 23
33 Duty concession--anomalous duty outcome 28
Division 8--Transitional arrangements 28
34 New clauses 45 to 55 inserted in Schedule 2 28
Part 3--Amendment of Land Tax Act 2005 36
Division 1--Principal place of residence exemption 36
35 Principal place of residence exemption 36
Division 2--Absentee owner surcharge 38
36 What is the rate of land tax? 38
37 Land tax surcharge for absentee trusts 38
38 Land tax for absentee fixed trust if beneficial interests notified
to Commissioner 38
39 Land tax for absentee unit trust scheme if unitholdings notified
to Commissioner 38
40 Land tax for beneficiary/trustees 39
41 Land tax for PPR land if nominated PPR beneficiary 39
42 Land tax surcharge for related absentee corporations 39
43 Rate of land tax on land held by absentee owners for 2017, 2018
and 2019 39
44 New clause 4.3 of Schedule 1 inserted 40
45 Rate of land tax on land held by owner subject to an absentee
trust for 2017, 2018 and 2019 41
46 New clause 5.3 of Schedule 1 inserted 41
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Clause Page
Part 4--Amendment of Payroll Tax Act 2007 43
Division 1--Regional employers 43
47 Meaning of regional employer 43
48 Repeal of section 12A 43
Division 2--Parental leave 43
49 Definitions--domestic partner and spouse 43
50 Division 4 of Part 4 substituted 44
51 Groups arising from tracing of interests in corporations 44
52 New Division 2A inserted in Part 3 of Schedule 2 45
53 New clause 20 inserted in Schedule 3 47
Division 3--Amendment of thresholds and tax rates 48
54 Thresholds 48
55 Tax rates for regional employers 49
Part 5--Amendment of Valuation of Land Act 1960 51
56 Definitions 51
57 Supplementary valuation 51
58 Determination of objection 51
59 Grounds of review or appeal 51
Part 6--Repeal of this Act 53
60 Repeal of this Act 53
═════════════
Endnotes 54
1 General information 54
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State Taxation Acts Amendment
Act 2019
No. of 2019
[Assented to ]
The Parliament of Victoria enacts:
Part 1--Preliminary
1 Purposes
The main purposes of this Act are--
(a) to amend the Duties Act 2000 in relation
to--
(i) public unit trust schemes; and
(ii) fixtures; and
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State Taxation Acts Amendment Act 2019
No. of 2019
Part 1--Preliminary
(iii) economic entitlements in relation to
land and landholders; and
(iv) foreign purchasers; and
(v) motor vehicle duty; and
(vi) corporate reconstructions; and
(vii) transfers of certain commercial and
industrial land in regional Victoria; and
(b) to amend the Land Tax Act 2005 in relation
to--
(i) the principal place of residence
exemption; and
(ii) the absentee owner surcharge; and
(c) to amend the Payroll Tax Act 2007 in
relation to--
(i) regional employers; and
(ii) parental leave; and
(iii) certain rates and thresholds; and
(d) to amend the Valuation of Land Act 1960
in relation to the valuation of heritage land.
2 Commencement
(1) This Act (except Divisions 4, 5, 6 and 7 of Part 2
and Part 4) comes into operation on the day after
the day on which it receives the Royal Assent.
(2) Divisions 4, 5, 6 and 7 of Part 2 and Part 4 come
into operation on 1 July 2019.
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No. of 2019
Part 2--Amendment of Duties Act 2000
Part 2--Amendment of Duties Act 2000
Division 1--Public unit trust schemes
3 Definitions--public unit trust scheme
In section 3(1) of the Duties Act 2000, in the
definition of public unit trust scheme, for "is, or
was at any time, a wholesale unit trust scheme or
eligible for registration as such" substitute "is a
wholesale unit trust scheme".
4 Conversion of a private unit trust scheme to a public
unit trust scheme
(1) In the heading to section 89B of the Duties
Act 2000, after "scheme" (where first occurring)
insert "or wholesale unit trust scheme".
(2) In section 89B(1) of the Duties Act 2000, after
"scheme" (where first occurring) insert
"or wholesale unit trust scheme".
(3) In section 89B(3) of the Duties Act 2000, after
"scheme" (where first occurring) insert
"or wholesale unit trust scheme".
Division 2--Fixtures
5 Definitions--fixtures
In section 3(1) of the Duties Act 2000--
(a) insert the following definition--
"tenant's fixtures has the meaning given by
section 22A(3);";
(b) for the definition of land-related interest
substitute--
"land-related interest means dutiable
property referred to in section 10(1)(a),
(ab), (ac), (ad) or (e);".
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Part 2--Amendment of Duties Act 2000
6 What is dutiable property?
(1) After section 10(1)(ac) of the Duties Act 2000
insert--
"(ad) an interest in fixtures that is created, dealt with
or held separately from an estate or interest in
the land on which the fixtures are located;".
(2) After section 10(2) of the Duties Act 2000
insert--
"(3) In this section--
fixtures means--
(a) anything that constitutes a fixture
at law; or
(b) any other items fixed to land,
including tenant's fixtures.".
7 Aggregation of certain dutiable transactions
(1) In section 24(1) of the Duties Act 2000, after
"10(1)(a)" (where twice occurring) insert ", (ad)".
(2) At the foot of section 24(1) of the Duties
Act 2000 insert--
"Notes
1 See section 57FB for the calculation of duty on an
aggregation of dutiable transactions in relation to an
interest in fixtures referred to in section 10(1)(ad) and
dutiable transactions in relation to land other than the
land on which the fixtures are located.
2 See section 64C for the calculation of duty on an
aggregation of dutiable transactions in relation to
eligible transfers (within the meaning of section 64A) if
duty on at least one of the transactions is subject to a
reduction of duty under section 64B and at least one of
the transactions is either not an eligible transfer or is an
eligible transfer subject to a reduction in duty
calculated on a different percentage.".
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Part 2--Amendment of Duties Act 2000
(3) After section 24(1) of the Duties Act 2000
insert--
"(1A) Subsection (1)(a) does not apply in the case
of an arrangement that comprises one or
more dutiable transactions that relate to
dutiable property referred to in section
10(1)(ad).".
8 New sections 57FA and 57FB inserted
After section 57F of the Duties Act 2000 insert--
"57FA Dealing with fixtures separately from land
(1) No duty is chargeable under this Chapter on
a dutiable transaction in relation to dutiable
property referred to in section 10(1)(ad) if
the unencumbered value of the fixtures to
which the dutiable property relates does not
exceed $2 000 000.
(2) If the unencumbered value of the fixtures to
which dutiable property referred to in
section 10(1)(ad) relates exceeds $2 000 000
but does not exceed $3 000 000, duty is
chargeable on a dutiable transaction in
relation to the dutiable property, subject to
subsection (3), in accordance with the
following formula--
A - $2 000 000
B
$1 000 000
where--
A is the unencumbered value of the
fixtures to which dutiable property
referred to in section 10(1)(ad) relates;
B is the duty that, apart from this
subsection, would be chargeable on the
dutiable transaction under this Chapter.
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Part 2--Amendment of Duties Act 2000
(3) This section does not apply if the dutiable
transaction in relation to dutiable property
referred to in section 10(1)(ad) is part of an
arrangement that includes a dutiable
transaction in relation to any estate or
interest in the land on which the fixtures are
located.
57FB Calculation of duty for aggregated
transactions involving fixtures and land
(1) This section applies to the aggregation under
section 24(1) of--
(a) one or more dutiable transactions in
relation to dutiable property referred to
in section 10(1)(ad) if the total
unencumbered value of the fixtures to
which the dutiable property relates does
not exceed $3 000 000; and
(b) one or more dutiable transactions in
relation to land other than land on
which the fixtures to which the dutiable
property referred to in section 10(1)(ad)
are located.
(2) The duty chargeable on the aggregated
dutiable transactions is the sum of--
(a) the duty (if any) that would be
chargeable on the dutiable transaction
or transactions in relation to dutiable
property referred to in section 10(1)(ad)
in accordance with section 57FA,
assuming they were the only dutiable
transactions being aggregated; and
(b) the duty that would be chargeable on
the other dutiable transactions in the
aggregation, assuming they were the
only dutiable transactions being
aggregated.".
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Part 2--Amendment of Duties Act 2000
Division 3--Economic entitlements in relation to
land and landholders
9 Definitions--economic entitlement
In section 3(1) of the Duties Act 2000, for the
definition of economic entitlement substitute--
"economic entitlement--
(a) in Part 4B of Chapter 2, has the
meaning given by section 32XC(1); and
(b) in Part 2 of Chapter 3, has the meaning
given by section 81(2);".
10 New Part 4B inserted in Chapter 2
After Part 4A of Chapter 2 of the Duties Act 2000
insert--
"Part 4B--Acquisition of economic
entitlements in relation to relevant
land
32XA Application of Part
This Part applies if a person acquires an
economic entitlement in relation to relevant
land other than by a transaction that is a
dutiable transaction apart from this Part.
32XB Definition
In this Part--
relevant land means dutiable property
referred to in section 10(1)(a), (ab), (ac)
or (ad).
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Part 2--Amendment of Duties Act 2000
32XC What is an economic entitlement?
(1) For the purposes of this Part, a person
acquires an economic entitlement if--
(a) an arrangement is made in relation to
relevant land that has an unencumbered
value that exceeds $1 000 000; and
(b) under that arrangement the person is or
will be entitled, whether directly or
through another person, to any one or
more of the following--
(i) to participate in the income, rents
or profits derived from the
relevant land;
(ii) to participate in the capital growth
of the relevant land;
(iii) to participate in the proceeds of
sale of the relevant land;
(iv) to receive any amount determined
by reference to subparagraphs (i),
(ii) or (iii);
(v) to acquire any entitlement
described in subparagraph (i), (ii),
(iii) or (iv).
(2) It is immaterial whether or not the person
who acquires the economic entitlement is a
party to the arrangement by which it is
acquired.
(3) For the avoidance of doubt, a person may
acquire an economic entitlement by any
means, including, but not limited to, the
creation of the economic entitlement or the
transfer of the economic entitlement to the
person.
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Part 2--Amendment of Duties Act 2000
32XD Economic entitlement taken to be
beneficial ownership of relevant land
(1) A person who acquires an economic
entitlement in relation to relevant land is
taken to have acquired beneficial ownership
of the relevant land and, subject to this Part,
duty is chargeable under this Chapter
accordingly.
(2) For the purposes of subsection (1), the
beneficial ownership of the relevant land that
a person is taken to have acquired is a
percentage determined under section 32XE.
32XE Calculation of percentage of beneficial
ownership taken to have been acquired
(1) Subject to subsection (2), the beneficial
ownership acquired under an economic
entitlement is the percentage of the total of
all entitlements referred to in section
32XC(1)(b)(i), (ii), (iii), (iv) or (v) (as the
case requires) that the person is or will be
entitled to receive or acquire under the
economic entitlement.
(2) The beneficial ownership acquired under an
economic entitlement is 100% if--
(a) the arrangement under which the
economic entitlement is acquired does
not specify the percentage of the
economic entitlement referred to in
subsection (1); or
(b) the arrangement under which the
economic entitlement is acquired, in
addition to specifying the percentage of
the economic entitlement referred to in
subsection (1), includes any other
entitlement of, or amount payable to,
the person or an associated person; or
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Part 2--Amendment of Duties Act 2000
(c) the arrangement under which the
economic entitlement is acquired
entitles the person or an associated
person to 2 or more of the entitlements
referred to in section 32XC(1)(b)(i),
(ii), (iii), (iv) and (v).
(3) Despite subsection (2), the Commissioner
may determine a lesser percentage than the
percentage referred to in that subsection in
any particular case if the Commissioner
considers it appropriate in the circumstances.
32XF Dutiable value of relevant land to which
an economic entitlement relates
Despite section 20, the dutiable value of
relevant land to which an economic
entitlement relates is the unencumbered
value of the relevant land at the time that the
economic entitlement is acquired.
32XG Phasing-in of duty
If the unencumbered value of relevant land
in relation to which an economic entitlement
is acquired exceeds $1 000 000 but does not
exceed $2 000 000, duty is chargeable under
this Chapter in accordance with the
following formula--
A - $1 000 000
B
$1 000 000
where--
A is the unencumbered value of the
relevant land;
B is the duty that, apart from this section,
would be chargeable under this Chapter
on the acquisition of the economic
entitlement.
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Part 2--Amendment of Duties Act 2000
32XH Aggregation of dutiable transactions
Section 24(2) does not apply in relation to
the aggregation of dutiable transactions
under section 24 if any of the dutiable
transactions subject to aggregation are
dutiable transactions because of this Part.
32XI Reduction of duty on subsequent transfer
of relevant land to person holding
economic entitlement
The amount of duty payable on a transfer of
relevant land to a person who, before the
transfer, held an economic entitlement in
relation to the relevant land is to be reduced
by the amount of duty the person paid under
this Part in respect of the acquisition of the
relevant entitlement to the extent that, after
the transfer, the beneficial ownership of the
relevant land represented by the economic
entitlement is held as a result of the transfer
rather than under the arrangement giving rise
to the economic entitlement.".
11 What are land holdings?
For section 72(1) of the Duties Act 2000
substitute--
"(1) For the purposes of this Part, a land holding
is--
(a) an interest in land other than the estate
or interest of a mortgagee, chargee, or
other secured creditor or a profit
prendre; or
(b) dutiable property referred to in
section 10(1)(ad); or
(c) an interest in relevant land taken to be
beneficially owned under
section 32XD.".
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Part 2--Amendment of Duties Act 2000
12 New section 72A inserted
After section 72 of the Duties Act 2000 insert--
"72A Land holdings of unit trust schemes where
section 32XD applies
(1) A land holding that is taken to be
beneficially owned by a trustee of a unit trust
scheme under section 32XD is taken to be a
land holding of the scheme if the trustee
holds the interest on trust in the capacity as
trustee of the scheme.
(2) A land holding that is taken to be
beneficially owned by a custodian or other
agent of a trustee of a unit trust scheme
under section 32XD is taken to be a land
holding of the scheme if the custodian or
other agent holds the interest as a custodian
or agent of the trustee of the scheme.".
13 Acquisition of economic entitlement
(1) In the heading to section 81 of the Duties
Act 2000, after "entitlement" insert "in relation
to private landholder".
(2) In section 81(2) of the Duties Act 2000--
(a) paragraphs (b), (c) and (d) are repealed;
(b) in paragraph (e) omit ", (b), (c) or (d)";
(c) in paragraph (f) omit ", (b), (c), (d)".
(3) For section 81(3) and (4) of the Duties Act 2000
substitute--
"(3) The interest acquired under an economic
entitlement is the proportion of the total
dividends or income of the private
landholder that the person is entitled to
receive or acquire under the economic
entitlement.".
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Part 2--Amendment of Duties Act 2000
Division 4--Foreign purchasers
14 Foreign purchasers--duty in respect of change of
use of land
In section 18A(3) of the Duties Act 2000--
(a) in paragraph (b)--
(i) after "2016" insert "but before
1 July 2019";
(ii) for "transferred." substitute
"transferred; or";
(b) after paragraph (b) insert--
"(c) if the foreign purchaser forms the
intention on or after 1 July 2019--8%
of the dutiable value of the interest at
the time that it was transferred.".
15 Rate for additional duty chargeable for foreign
purchasers--residential property
In section 28A(2) of the Duties Act 2000, for
"7%" substitute "8%".
Division 5--Motor vehicle duty
16 Definitions--motor vehicle duty
In section 3(1) of the Duties Act 2000 insert the
following definitions--
"green car means a passenger car that is of a
model that has combined tailpipe carbon
dioxide emissions of less than 120 grams per
kilometre;
primary producer means a person--
(a) engaged solely or substantially in
agricultural, horticultural, viticultural,
dairying, pastoral or other like
activities; or
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Part 2--Amendment of Duties Act 2000
(b) who is the holder of a licence under the
Fisheries Act 1995 to take fish for sale;
primary producer passenger car means a
passenger car that is--
(a) registered or to be registered in the
name of a person who is a primary
producer; and
(b) used or to be used primarily in the
business of the person as a primary
producer;
service demonstrator vehicle means a motor
vehicle that is--
(a) used for the purposes of the sale of
another vehicle of the same class; and
(b) made available without charge by a
licensed motor car trader to a customer
of the trader for use while the
customer's motor vehicle is being
serviced;".
17 What is the rate of duty?
For section 218(1) of the Duties Act 2000
substitute--
"(1) The rate of duty on an application for
registration or transfer of registration of a
motor vehicle that is a passenger car is as set
out in the Table.
TABLE
Rate of duty per
$200, or part, of
the dutiable value
of the motor
Item Motor vehicle vehicle
1 Green car $8.40
2 Primary producer passenger $8.40
car
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Part 2--Amendment of Duties Act 2000
Rate of duty per
$200, or part, of
the dutiable value
of the motor
Item Motor vehicle vehicle
3 Other passenger car the $8.40
dutiable value of which
does not exceed the luxury
car tax threshold
4 Other passenger car the $10.40
dutiable value of which
exceeds the luxury car tax
threshold but does not
exceed $100 000
5 Other passenger car the $14.00
dutiable value of which
exceeds $100 000 but does
not exceed $150 000
6 Other passenger car the $18.00
dutiable value of which
exceeds $150 000
(1A) The rate of duty on an application for
registration of a motor vehicle that is not a
passenger car is--
(a) if the motor vehicle has not previously
been registered in Victoria or
elsewhere--$5.40 per $200, or part, of
the dutiable value of the motor vehicle;
or
(b) if the motor vehicle has previously been
registered in Victoria or elsewhere--
$8.40 per $200, or part, of the dutiable
value of the motor vehicle.
(1B) The rate of duty on an application for
transfer of registration of a motor vehicle
that is not a passenger car is $8.40 per $200,
or part, of the dutiable value of the motor
vehicle.".
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Part 2--Amendment of Duties Act 2000
18 Licensed motor car traders--trading stock,
demonstrator vehicles and driver education
(1) Insert the following heading to section 231 of the
Duties Act 2000--
"Licensed motor car traders--trading stock,
demonstrator vehicles, service demonstrator
vehicles and driver education".
(2) In section 231(2)(a) of the Duties Act 2000--
(a) for "either or both" substitute "one or
more";
(b) in subparagraph (ii), for "vehicle; or"
substitute "vehicle;";
(c) after subparagraph (ii) insert--
"(iii) the use of the motor vehicle as a service
demonstrator vehicle; or".
19 Primary producer vehicles
In section 233(5) of the Duties Act 2000 the
definition of primary producer is repealed.
20 Duty on statement of change of use
(1) For section 238(2) of the Duties Act 2000
substitute--
"(2) Within 14 days after there is a change in the
predominant use of a motor vehicle of the
kind referred to in subsection (1), the
registered operator of the vehicle must lodge
with the Commissioner a statement of the
change in use and pay duty at the rate set out
in the Table.
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Part 2--Amendment of Duties Act 2000
TABLE
Rate of duty per
$200, or part, of
the dutiable value
of the motor
Item Motor vehicle vehicle
1 Green car $8.40
2 Primary producer passenger $8.40
car
3 Other passenger car the $8.40
dutiable value of which does
not exceed the luxury car tax
threshold
4 Other passenger car the $10.40
dutiable value of which
exceeds the luxury car tax
threshold but does not
exceed $100 000
5 Other passenger car the $14.00
dutiable value of which
exceeds $100 000 but does
not exceed $150 000
6 Other passenger car the $18.00
dutiable value of which
exceeds $150 000
7 Motor vehicle that is not a $8.40
passenger car
".
(2) In section 238(3)(a) and (4) of the Duties
Act 2000, for "subsection (2)(b)" substitute
"subsection (2)".
Division 6--Corporate reconstructions
21 Amendment of headings--corporate reconstructions
(1) In the heading to Chapter 11 of the Duties
Act 2000, after "exemptions" insert
"and concessions".
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Part 2--Amendment of Duties Act 2000
(2) In the heading to Division 1 of Part 2 of
Chapter 11 of the Duties Act 2000, for
"exemption" substitute "concession and
exemptions".
(3) In the heading to Division 1A of Part 2 of
Chapter 11 of the Duties Act 2000, for
"exemption" substitute "concession".
22 What is a corporate group?
In section 250(1) of the Duties Act 2000--
(a) in the definition of parent corporation, in
paragraph (b), for "subsidiary;" substitute
"subsidiary.";
(b) the definition of relevant corporate group is
repealed.
23 What is an eligible transaction--corporate
reconstructions
In section 250A of the Duties Act 2000, in the
definition of eligible transaction--
(a) after paragraph (b) insert--
"(ba) the granting of a lease referred to in
section 7(1)(b)(v) by one member of a
corporate group to another member of
the group; or
(bb) the transfer or assignment of a lease
referred to in section 7(1)(b)(va) from
one member of a corporate group to
another member of the group; or";
(b) in paragraph (c), for "to register" substitute
"referred to in section 214(1) for the
registration or transfer of registration of".
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24 Concession and exemptions for certain transactions
arising out of corporate reconstruction
(1) In the heading to section 250B of the Duties
Act 2000, for "Exemption" substitute
"Concession and exemptions".
(2) For section 250B(1), (2) and (3) of the Duties
Act 2000 substitute--
"(1) Subject to this section, the duty chargeable
on an eligible transaction is 10% of the duty
that would otherwise be chargeable under
this Act on the eligible transaction.
(2) No duty is chargeable on an eligible
transaction to the extent that--
(a) duty is chargeable on an earlier eligible
transaction in relation to the same
dutiable property; and
(b) the earlier eligible transaction occurred
within 30 days of the eligible
transaction; and
(c) each of the transactions is between
members of the same corporate group.
(3) For the purposes of subsection (2), if either
or both of the eligible transactions referred to
in that subsection is a relevant acquisition, a
reference to dutiable property in relation to
the relevant acquisition is a reference to the
land holdings of the landholder in which the
relevant acquisition is made.
(3A) No duty is chargeable under this Act on an
eligible transaction that is an application for
the registration or transfer of registration of a
motor vehicle if--
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Part 2--Amendment of Duties Act 2000
(a) duty is chargeable on an earlier eligible
transaction that is an application for the
registration or transfer of registration of
the same motor vehicle; and
(b) the earlier eligible transaction occurred
within 30 days of the eligible
transaction; and
(c) each of the transactions is between
members of the same corporate group.".
(3) In section 250B(4) of the Duties Act 2000--
(a) for "exemptions granted and refunds made"
substitute "concessions and exemptions";
(b) in paragraph (a)--
(i) omit "relevant";
(ii) for "an exemption or refund" substitute
"a concession or exemption";
(c) in paragraph (b), for "exemption and the
amount of any refund" substitute
"concession or exemption".
25 Sections 250C and 250D repealed
Sections 250C and 250D of the Duties Act 2000
are repealed.
26 What is an eligible transaction--corporate
consolidations
In section 250DC(1) of the Duties Act 2000--
(a) after paragraph (b) insert--
"(ba) the granting of a lease referred to in
section 7(1)(b)(v) by one member of a
corporate group to another member of
the group; or
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(bb) the transfer or assignment of a lease
referred to in section 7(1)(b)(va) from
one member of a corporate group to
another member of the group; or";
(b) in paragraph (c), for "to register" substitute
"referred to in section 214(1) for the
registration of a motor vehicle or for the
transfer of registration of".
27 Concession for certain transactions arising out of
corporate consolidation
(1) In the heading to section 250DD of the Duties
Act 2000, for "Exemption" substitute
"Concession".
(2) For section 250DD(1) of the Duties Act 2000
substitute--
"(1) The duty chargeable on an eligible
transaction is 10% of the duty that would
otherwise be chargeable under this Act on
the eligible transaction.".
(3) Section 250DD(2), (3) and (4) of the Duties
Act 2000 are repealed.
(4) In section 250DD(5) of the Duties Act 2000--
(a) for "exemptions granted and refunds made"
substitute "concessions";
(b) in paragraph (a), for "an exemption or
refund" substitute "a concession";
(c) in paragraph (b), for "exemption and the
amount of any refund" substitute
"concession".
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28 Sections 250DE and 250DF repealed
Sections 250DE and 250DF of the Duties
Act 2000 are repealed.
29 Section 250DI substituted
For section 250DI of the Duties Act 2000
substitute--
"250DI Concession for relevant acquisitions
The duty chargeable on a relevant
acquisition to which section 83 applies made
by an exchanging member in the course of,
or as a result of, a roll-over, is 10% of the
duty that would otherwise be chargeable
under this Act on the relevant acquisition
if--
(a) the shares or units in the stapled entities
to which the roll-over relates are listed;
or
(b) the Commissioner is satisfied that the
shares or units in the stapled entities to
which the roll-over relates are intended
to be listed within 3 years from the date
of the relevant acquisition.".
30 Sections 250DJ and 250DK repealed
Sections 250DJ and 250DK of the Duties
Act 2000 are repealed.
31 Division 2 of Part 2 of Chapter 11 repealed
Division 2 of Part 2 of Chapter 11 of the Duties
Act 2000 is repealed.
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Part 2--Amendment of Duties Act 2000
Division 7--Transfers of commercial and industrial
land in regional Victoria
32 New Division 5A inserted in Part 5 of Chapter 2
After Division 5 of Part 5 of Chapter 2 of the
Duties Act 2000 insert--
"Division 5A--Commercial and
industrial land in regional Victoria
64A Definitions
In this Division--
AVPCC means an Australian Valuation
Property Classification Code based on
the Valuation Best Practice
Specifications Guidelines;
eligible transfer means a transfer of dutiable
property referred to in section 10(1)(a)
or (ad) that--
(a) is wholly in regional Victoria; and
(b) the transferee intends to use solely
or primarily for a qualifying use;
qualifying use means a land use described in
an AVPCC in the following ranges--
(a) 210 to 299;
(b) 310 to 499;
regional Victoria has the same meaning as
in section 18(8) of the First Home
Owner Grant Act 2000;
Valuation Best Practice Specifications
Guidelines has the same meaning as in
the Valuation of Land Act 1960.
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Part 2--Amendment of Duties Act 2000
64B Reduction in duty in relation to eligible
transfers
The duty chargeable under section 28(1) on
an eligible transfer the contract, arrangement
or agreement for which was entered into on a
date referred to in column 2 of the following
Table is to be reduced by the percentage set
out in column 3 opposite that date.
TABLE
Column 1 Column 2 Column 3
Date contract, arrangement or
agreement for eligible transfer
Item was entered into Percentage
1 On or after 1 July 2019 but 10%
before 1 July 2020
2 On or after 1 July 2020 but 20%
before 1 July 2021
3 On or after 1 July 2021 but 30%
before 1 July 2022
4 On or after 1 July 2022 but 40%
before 1 July 2023
5 On or after 1 July 2023 50%
64C Calculation of duty for certain aggregated
transactions
(1) The duty chargeable in the case of
transactions that are aggregated under
section 24(1) is to be calculated under this
section if--
(a) at least one of the dutiable transactions
is an eligible transfer subject to a
reduction of duty under section 64B;
and
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Part 2--Amendment of Duties Act 2000
(b) at least one of the dutiable transactions
is--
(i) a dutiable transaction that is not an
eligible transfer; or
(ii) an eligible transfer that is subject
to a reduction in duty under
section 64B calculated on a
different percentage to the eligible
transfer referred to in
paragraph (a).
(2) The duty chargeable on aggregated
transactions referred to in subsection (1) is
the sum of the duty for each dutiable
transaction, where the duty for each dutiable
transaction is calculated in accordance with
the following formula--
B
D=A× × 1 - R
C
where--
D is the amount of duty that is payable for
each dutiable transaction;
A is the duty that would be chargeable on
the aggregated transactions, without
taking into account any reduction in
duty under section 64B;
B is the dutiable value of the dutiable
transaction;
C is the total dutiable value of all dutiable
transactions that are aggregated;
R is--
(a) if the dutiable transaction is an
eligible transfer--the relevant
percentage in the Table set out in
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Part 2--Amendment of Duties Act 2000
section 64B, expressed as a
fraction; or
(b) if the dutiable transaction is not an
eligible transfer--0.
64D Election to receive reduction or other
concession or exemption
(1) A transferee who, but for this section, would
be entitled in respect of an eligible transfer to
a reduction in duty under section 64B and
any other exemption or concession from duty
under this Act, must, by notice in writing to
the Commissioner, elect to receive--
(a) the reduction in duty under
section 64B; or
(b) the other exemption or concession from
duty under this Act.
(2) A transferee referred to in subsection (1)
who elects to receive the other exemption or
concession under this Act or who does not
make an election under this section is not
entitled to the reduction in duty under
section 64B in respect of the eligible
transfer.
64E Use requirement
A reduction in duty under section 64B is
subject to the requirement that the land is
used solely or primarily for a qualifying use
for a continuous period of at least 12 months
commencing within the 2-year period
immediately after the transferee became
entitled to possession of the land.
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Part 2--Amendment of Duties Act 2000
64F Variation of use requirement
If satisfied that there is a good reason for
doing so, the Commissioner may--
(a) reduce the required period of qualifying
use; or
(b) determine that a temporary cessation of
qualifying use does not break the
continuity of the qualifying use; or
(c) extend the period in which qualifying
use must begin.
64G Liability for duty if use requirement not
complied with
(1) If the use requirement for an eligible transfer
is not complied with--
(a) the eligible transfer is chargeable with
duty at the rate set out in section 28(1)
as if section 64B 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.
(2) A liability for duty imposed because of
subsection (1) on an eligible transfer arises
when the use 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 30 days after the liability for
the duty arises.
(3) A reassessment referred to in subsection
(1)(b) is authorised if more than 5 years have
passed since the initial assessment was made.
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Part 2--Amendment of Duties Act 2000
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.
64H Transferee to notify Commissioner of
change in circumstances
(1) A transferee who has received a reduction of
duty under section 64B must lodge a written
notice with the Commissioner within 30 days
after becoming aware of any circumstances
that may result in the use requirement not
being complied with.
(2) A failure of a transferee to comply with
subsection (1) does not affect the
Commissioner's power to reassess duty
under section 64G or to exercise a discretion
under section 64F.".
33 Duty concession--anomalous duty outcome
After section 89E(1) of the Duties Act 2000
insert--
"(1A) For the purposes of subsection (1)(b), in
determining the duty that would have been
payable under Chapter 2, no account is to be
taken of any reduction in duty under
Division 5A of Part 5 of that Chapter.".
Division 8--Transitional arrangements
34 New clauses 45 to 55 inserted in Schedule 2
After clause 44 of Schedule 2 to the Duties
Act 2000 insert--
"45 State Taxation Acts Amendment
Act 2019--public unit trust schemes
Section 89B does not apply to a wholesale
unit trust scheme that becomes a public unit
28
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No. of 2019
Part 2--Amendment of Duties Act 2000
trust scheme if the wholesale unit trust
scheme would not have become a public unit
trust scheme had the amendments made by
Division 1 of Part 2 of the State Taxation
Acts Amendment Act 2019 not come into
operation.
46 State Taxation Acts Amendment
Act 2019--fixtures
The amendments made by Division 2 of
Part 2 of the State Taxation Acts
Amendment Act 2019 do not apply to a
dutiable transaction that occurs on or after
the commencement of that Division under an
arrangement made before that
commencement.
47 State Taxation Acts Amendment
Act 2019--economic entitlements
The amendments made by Division 3 of
Part 2 of the State Taxation Acts
Amendment Act 2019 do not apply in
relation to an arrangement made before the
commencement of that Division.
48 State Taxation Acts Amendment
Act 2019--rate for foreign purchaser duty
Section 28A, as in force immediately before
1 July 2019, continues to apply in respect of
any dutiable transaction entered into on or
after 1 July 2016 but before 1 July 2019
under which a land-related interest in
residential property is transferred to a foreign
purchaser.
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Part 2--Amendment of Duties Act 2000
49 State Taxation Acts Amendment
Act 2019--agreements and arrangements
for significant interest foreign purchaser
acquisitions
(1) This clause applies if--
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2016 but before 1 July 2019 for
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
(b) the acquisition, when made, is an
acquisition of an interest referred to in
section 78(1)(a)(i).
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(1), that duty must be calculated in
accordance with that subsection but using the
rate specified under this Act that would have
applied if the acquisition of the interest was
made on the day the agreement or
arrangement was entered into by the foreign
purchaser.
50 State Taxation Acts Amendment
Act 2019--agreements and arrangements
for aggregated significant interest foreign
purchaser acquisitions
(1) This clause applies if--
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2016 but before 1 July 2019 for
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
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Part 2--Amendment of Duties Act 2000
(b) the acquisition, when made, is an
acquisition of an interest referred to in
section 78(1)(a)(ii), or after it is made,
becomes an interest of that kind.
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(3), that duty must be calculated in
accordance with that subsection but using the
rate specified under this Act that would have
applied if the acquisition of the interest was
made on the day the agreement or
arrangement was entered into by the foreign
purchaser.
51 State Taxation Acts Amendment
Act 2019--agreements and arrangements
for foreign purchaser acquisitions of
further interests
(1) This clause applies if--
(a) a foreign purchaser entered into an
agreement or arrangement on or after
1 July 2016 but before 1 July 2019 for
the acquisition of an interest in a
landholder that holds a land-related
interest in residential property; and
(b) the acquisition, when made, is an
acquisition of a further interest in the
landholder referred to in
section 78(1)(b).
(2) Despite anything in this Act, if any duty is
chargeable under Part 2 of Chapter 3 and is
required to be calculated in accordance with
section 86(4), that duty must be calculated in
accordance with that subsection but using the
rate specified under this Act that would have
applied if the acquisition was made on the
31
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No. of 2019
Part 2--Amendment of Duties Act 2000
day the agreement or acquisition was entered
into by the foreign purchaser.
52 State Taxation Acts Amendment
Act 2019--corporate reconstructions
(1) The old provisions apply in respect of an
eligible transaction (within the meaning of
section 250A as in force immediately before
1 July 2019) if the agreement or arrangement
for the eligible transaction was entered into
before 1 July 2019.
(2) Without limiting subclause (1), the
Commissioner may--
(a) on application, grant an exemption
under the old provisions in respect of
an eligible transaction the agreement or
arrangement for which was entered into
before 1 July 2019; and
(b) revoke or deal with the exemption
under the old provisions as if they had
not been amended by the State
Taxation Acts Amendment Act 2019.
(3) Despite the State Taxation Acts
Amendment Act 2019, an exemption
granted by the Commissioner under the old
provisions that is in effect immediately
before 1 July 2019--
(a) continues in effect on and after that
day; and
(b) the old provisions continue to apply to
the exemption.
(4) In this clause--
old provisions means Division 1 of Part 2 of
Chapter 11 as in force immediately
before 1 July 2019.
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53 State Taxation Acts Amendment
Act 2019--corporate consolidations
(1) The old provisions apply in respect of an
eligible transaction (within the meaning of
section 250DC as in force immediately
before 1 July 2019) if the agreement or
arrangement for the eligible transaction was
entered into before 1 July 2019.
(2) Without limiting subclause (1), the
Commissioner may--
(a) on application, grant an exemption
under the old provisions in respect of
an eligible transaction the agreement or
arrangement for which was entered into
before 1 July 2019; and
(b) revoke or deal with the exemption
under the old provisions as if they had
not been amended by the State
Taxation Acts Amendment Act 2019.
(3) Despite the State Taxation Acts
Amendment Act 2019, an exemption
granted by the Commissioner under the old
provisions that is in effect immediately
before 1 July 2019--
(a) continues in effect on and after that
day; and
(b) the old provisions continue to apply to
the exemption.
(4) In this clause--
old provisions means Division 1A of Part 2
of Chapter 11 as in force immediately
before 1 July 2019.
33
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Part 2--Amendment of Duties Act 2000
54 State Taxation Acts Amendment
Act 2019--exchange of stapled ownership
interests for ownership interests in a unit
trust scheme
(1) The old provisions apply in respect of a
relevant acquisition to which section 83
applies made in the course of, or as a result
of, a roll-over (within the meaning of
section 250DH) if the agreement or
arrangement for the relevant acquisition was
entered into before 1 July 2019.
(2) Without limiting subclause (1), the
Commissioner may--
(a) on application, grant an exemption
under the old provisions in respect of a
relevant acquisition to which section 83
applies made in the course of, or as a
result of, a roll-over (within the
meaning of section 250DH) the
agreement or arrangement for which
was entered into before 1 July 2019;
and
(b) revoke or deal with the exemption
under the old provisions as if they had
not been amended by the State
Taxation Acts Amendment Act 2019.
(3) Despite the State Taxation Acts
Amendment Act 2019, an exemption
granted by the Commissioner under the old
provisions that is in effect immediately
before 1 July 2019--
(a) continues in effect on and after that
day; and
(b) the old provisions continue to apply to
the exemption.
34
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Part 2--Amendment of Duties Act 2000
(4) In this clause--
old provisions means Division 1B of Part 2
of Chapter 11 as in force immediately
before 1 July 2019.
55 State Taxation Acts Amendment
Act 2019--penalties and interest under
Division 2 of Part 2 of Chapter 11
Despite the repeal of Division 2 of Part 2 of
Chapter 11 by the State Taxation Acts
Amendment Act 2019, that Division as in
force immediately before 1 July 2019
continues to apply in relation to any
exemption that is revoked--
(a) under Division 1, 1A or 1B of Part 2 of
Chapter 11 as in force immediately
before 1 July 2019; or
(b) under Division 1, 1A or 1B of Part 2 of
Chapter 11 as continued under
clauses 52, 53 or 54.".
35
State Taxation Acts Amendment Act 2019
No. of 2019
Part 3--Amendment of Land Tax Act 2005
Part 3--Amendment of Land Tax Act 2005
Division 1--Principal place of residence exemption
35 Principal place of residence exemption
(1) For section 54(3) of the Land Tax Act 2005
substitute--
"(3) In addition to land of an owner that is used
and occupied as a person's principal place of
residence (the PPR land), land is also
exempt land if--
(a) the land is owned by the owner of the
PPR land; and
(b) the land is contiguous with the PPR
land or separated from the PPR land
only by a road or railway or other
similar area across or around which
movement is reasonably possible; and
(c) the land enhances the PPR land; and
(d) the land is used solely for the private
benefit and enjoyment of the person
who uses and occupies the PPR land
and has been so used--
(i) since 1 July in the year preceding
the tax year; or
(ii) if the owner or trustee became the
owner of the land on or after
1 July in the year preceding the
tax year, so used and occupied
since a later date during that year;
and
(e) the land does not contain a separate
residence; and
(f) both the land and the PPR land are
wholly in regional Victoria.
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Part 3--Amendment of Land Tax Act 2005
(3A) In addition to land of an owner that is used
and occupied as a person's principal place of
residence (the PPR land), land is also
exempt land if--
(a) the land is owned by the owner of the
PPR land; and
(b) the land and the PPR land are both units
in the same strata subdivision; and
(c) the land is used primarily for one or
both of the following purposes--
(i) parking a motor vehicle;
(ii) a storage facility; and
(d) the land does not contain a separate
residence; and
(e) the land is used for the purposes
specified in paragraph (c) by the person
who uses and occupies the PPR land
and has been so used--
(i) since 1 July in the year preceding
the tax year; or
(ii) if the owner or trustee became the
owner of the land on or after
1 July in the year preceding the
tax year, so used and occupied
since a later date during that
year.".
(2) After section 54(4) of the Land Tax Act 2005
insert--
"(5) In this section--
regional Victoria has the same meaning as
in section 18(8) of the First Home
Owner Grant Act 2000;
37
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No. of 2019
Part 3--Amendment of Land Tax Act 2005
strata subdivision has the same meaning as
in the Transfer of Land Act 1958.".
Division 2--Absentee owner surcharge
36 What is the rate of land tax?
In section 35(1A) of the Land Tax Act 2005, for
"6∙5%" substitute "7%".
37 Land tax surcharge for absentee trusts
(1) In section 46IA(1) of the Land Tax Act 2005, in
the first formula set out in that subsection, for
"1∙5%" substitute "2%".
(2) In section 46IA(1A) of the Land Tax Act 2005,
in the first formula set out in that subsection, for
"1∙5%" substitute "2%".
38 Land tax for absentee fixed trust if beneficial
interests notified to Commissioner
(1) In section 46IB(1)(b)(ii) of the Land Tax
Act 2005, in the formula set out in that
subparagraph, for "1∙5%" substitute "2%".
(2) In section 46IB(3)(b) of the Land Tax Act 2005,
in the first formula set out in that paragraph, for
"1∙5%" substitute "2%".
(3) In section 46IB(4)(a) of the Land Tax Act 2005,
in the formula set out in that paragraph, for
"1∙5%" substitute "2%".
39 Land tax for absentee unit trust scheme if
unitholdings notified to Commissioner
(1) In section 46IC(1)(b)(ii) of the Land Tax
Act 2005, in the formula set out in that
subparagraph, for "1∙5%" substitute "2%".
(2) In section 46IC(3)(b) of the Land Tax Act 2005,
in the first formula set out in that paragraph, for
"1∙5%" substitute "2%".
38
State Taxation Acts Amendment Act 2019
No. of 2019
Part 3--Amendment of Land Tax Act 2005
(3) In section 46IC(4)(a) of the Land Tax Act 2005,
in the formula set out in that paragraph, for
"1∙5%" substitute "2%".
40 Land tax for beneficiary/trustees
(1) In section 46ID(3)(a) of the Land Tax Act 2005,
in the formula set out in that paragraph, for
"1∙5%" substitute "2%".
(2) In section 46ID(5)(a) of the Land Tax Act 2005,
in the formula set out in that paragraph, for
"1∙5%" substitute "2%".
41 Land tax for PPR land if nominated PPR
beneficiary
In section 46IF(2A)(a)(ii) and (b) of the Land
Tax Act 2005, in the formulas set out in those
paragraphs, for "1∙5%" substitute "2%".
42 Land tax surcharge for related absentee
corporations
In section 50A(2) of the Land Tax Act 2005, in
the formula set out in that subsection, for "1∙5%"
substitute "2%".
43 Rate of land tax on land held by absentee owners for
2017, 2018 and 2019
(1) In the heading to clause 4.2 of Schedule 1 to the
Land Tax Act 2005, for "2017 and subsequent
years" substitute "2017, 2018 and 2019".
(2) In clause 4.2 of Schedule 1 to the Land Tax
Act 2005, for "2017 and each subsequent year"
substitute "2017, 2018 and 2019".
39
State Taxation Acts Amendment Act 2019
No. of 2019
Part 3--Amendment of Land Tax Act 2005
44 New clause 4.3 of Schedule 1 inserted
In Part 4 of Schedule 1 to the Land Tax
Act 2005, after clause 4.2 insert--
"4.3 Rate of land tax on land held by absentee
owners for 2020 and subsequent years
The rate of land tax on land held by an
absentee owner for 2020 and each
subsequent year is set out in Table 4.3.
TABLE 4.3
Column 1 Column 2 Column 3
Taxable Taxable
value not value less
Item less than than Rate of land tax
$ $
1 0 250 000 Nil
2 250 000 600 000 $5275 and 22% of
the taxable value that
exceeds $250 000
3 600 000 1 000 000 $12 975 and 25% of
the taxable value that
exceeds $600 000
4 1 000 000 1 800 000 $22 975 and 28% of
the taxable value that
exceeds $1 000 000
5 1 800 000 3 000 000 $45 375 and 33% of
the taxable value that
exceeds $1 800 000
6 3 000 000 $84 975 and 425% of
the taxable value that
exceeds $3 000 000
".
40
State Taxation Acts Amendment Act 2019
No. of 2019
Part 3--Amendment of Land Tax Act 2005
45 Rate of land tax on land held by owner subject to an
absentee trust for 2017, 2018 and 2019
(1) In the heading to clause 5.2 of Schedule 1 to the
Land Tax Act 2005, for "2017 and subsequent
years" substitute "2017, 2018 and 2019".
(2) In clause 5.2 of Schedule 1 to the Land Tax
Act 2005, for "2017 and each subsequent year"
substitute "2017, 2018 and 2019".
46 New clause 5.3 of Schedule 1 inserted
In Part 5 of Schedule 1 to the Land Tax
Act 2005, after clause 5.2 insert--
"5.3 Rate of land tax on land held by owner
subject to an absentee trust for 2020 and
subsequent years
The rate of land tax for land held by an
owner subject to an absentee trust for 2020
and each subsequent year is set out in
Table 5.3.
TABLE 5.3
Column 1 Column 2 Column 3
Taxable Taxable
value not value less
Item less than than Rate of land tax
$ $
1 0 25 000 Nil
2 25 000 250 000 $582 and 2375% of
the taxable value that
exceeds $25 000
3 250 000 600 000 $5926 and 2575% of
the taxable value that
exceeds $250 000
4 600 000 1 000 000 $14 938 and 2875%
of the taxable value
that exceeds $600 000
41
State Taxation Acts Amendment Act 2019
No. of 2019
Part 3--Amendment of Land Tax Act 2005
Column 1 Column 2 Column 3
Taxable Taxable
value not value less
Item less than than Rate of land tax
$ $
5 1 000 000 1 800 000 $26 438 and 3175%
of the taxable value
that exceeds
$1 000 000
6 1 800 000 3 000 000 $51 838 and 27614%
of the taxable value
that exceeds
$1 800 000
7 3 000 000 $84 975 and 425% of
the taxable value that
exceeds $3 000 000
".
42
State Taxation Acts Amendment Act 2019
No. of 2019
Part 4--Amendment of Payroll Tax Act 2007
Part 4--Amendment of Payroll Tax Act 2007
Division 1--Regional employers
47 Meaning of regional employer
(1) For section 3A(1) of the Payroll Tax Act 2007
substitute--
"(1) A regional employer is an employer who
meets the requirements specified in
subsection (2).".
(2) The note at the foot of section 3A of the Payroll
Tax Act 2007 is repealed.
48 Repeal of section 12A
Section 12A of the Payroll Tax Act 2007 is
repealed.
Division 2--Parental leave
49 Definitions--domestic partner and spouse
(1) In section 3 of the Payroll Tax Act 2007 insert
the following definitions--
"domestic partner of a person means--
(a) a person who is in a registered domestic
relationship with the person; or
(b) a person to whom the person is not
married but with whom the person is
living as a couple on a genuine
domestic basis (irrespective of gender);
spouse of a person means a person to whom the
person is married;".
43
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Part 4--Amendment of Payroll Tax Act 2007
(2) At the end of section 3 of the Payroll Tax
Act 2007 insert--
"(2) For the purposes of the definition of
domestic partner in subsection (1)--
(a) registered domestic relationship has
the same meaning as in the
Relationships Act 2008; and
(b) in determining whether persons who
are not in a registered domestic
relationship are domestic partners of
each other, all the circumstances of
their relationship are to be taken into
account, including any one or more of
the matters referred to in section 35(2)
of the Relationships Act 2008 as may
be relevant in a particular case.".
50 Division 4 of Part 4 substituted
For Division 4 of Part 4 of the Payroll Tax
Act 2007 substitute--
"Division 4--Parental leave
53 Parental leave
Wages are exempt wages as provided for in
Division 2A of Part 3 of Schedule 2.".
51 Groups arising from tracing of interests in
corporations
(1) In section 73(4) of the Payroll Tax Act 2007, the
definition of domestic partner is repealed.
(2) Section 73(5) of the Payroll Tax Act 2007 is
repealed.
44
State Taxation Acts Amendment Act 2019
No. of 2019
Part 4--Amendment of Payroll Tax Act 2007
52 New Division 2A inserted in Part 3 of Schedule 2
After Division 2 of Part 3 of Schedule 2 to the
Payroll Tax Act 2007 insert--
"Division 2A--Parental leave
17A Meaning of primary caregiver and
secondary caregiver
(1) For the purposes of this Division--
(a) the primary caregiver for a child is--
(i) in the case of a child yet to be
born, the person who is pregnant
with the child; or
(ii) otherwise, the parent of the child
who has the principal role of
providing care and attention to the
child; and
(b) the secondary caregiver for a child is a
spouse, or domestic partner, of a
primary caregiver for the child.
(2) For the purposes of this Division there can
only be one primary caregiver for a child at
any one time.
17B Parental leave
(1) Wages are exempt wages if they are paid or
payable to an employee in respect of leave
for the employee's role as primary caregiver
or secondary caregiver for a child (other than
sick leave, recreation leave, annual leave or
any similar leave).
(2) It is immaterial whether the leave is taken
before or after the child is born or, in the
case of adoption, before or after the child is
adopted.
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Part 4--Amendment of Payroll Tax Act 2007
(3) The exemption is limited to wages paid or
payable in respect of a maximum of
14 weeks leave in relation to any one child.
(4) In subclause (3)--
(a) a reference to 14 weeks leave includes
a reference to an equivalent period of
leave at a reduced rate of pay; and
(b) a reference to wages paid or payable in
respect of a period of leave is a
reference to the total wages that would
normally have been paid or payable for
that period of leave.
Example
For a part-time employee, the exemption may apply
to wages paid or payable for leave that extends to
28 weeks at half of the part-time rate of pay that
would normally apply to the employee.
(5) The exemption does not apply to any part of
wages paid or payable in respect of leave for
the employee's role as primary caregiver or
secondary caregiver that comprises a fringe
benefit.
17C Administrative requirements for
exemption
(1) An employer wishing to claim an exemption
under this Division for an employee in
respect of leave for the employee's role as a
primary caregiver must obtain and keep a
statutory declaration by the employee
stating--
(a) that the employee is a primary
caregiver for a child; and
(b) that the employee--
(i) is pregnant with the child; or
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State Taxation Acts Amendment Act 2019
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Part 4--Amendment of Payroll Tax Act 2007
(ii) was pregnant with the child and
the date of birth of the child; or
(iii) is the parent of the child who has
the principal role of providing
care and attention to the child.
(2) An employer wishing to claim an exemption
under this Division for an employee in
respect of leave for the employee's role as a
secondary caregiver must obtain and keep a
statutory declaration by the employee
stating--
(a) that the employee is a secondary
caregiver for a child; and
(b) that the employee is a spouse, or
domestic partner, of the person who is
the primary caregiver for the child.
Note
Section 55 of the Taxation Administration Act 1997
requires these records to be kept for at least 5 years
unless the Commissioner of State Revenue authorises
earlier destruction.".
53 New clause 20 inserted in Schedule 3
After clause 19 of Schedule 3 to the Payroll Tax
Act 2007 insert--
"20 State Taxation Acts Amendment Act 2019
(1) The exemption under Division 2A of Part 3
of Schedule 2 does not apply to wages paid
to an employee on or after 1 July 2019 in
respect of any period of leave taken by the
employee before that date.
(2) The exemption under Division 4 of Part 4
continues to apply despite its repeal to wages
paid to an employee on or after 1 July 2019
in respect of any period of leave taken by the
employee before that date.".
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State Taxation Acts Amendment Act 2019
No. of 2019
Part 4--Amendment of Payroll Tax Act 2007
Division 3--Amendment of thresholds and tax rates
54 Thresholds
(1) For section 86(6)(c) of the Payroll Tax Act 2007
substitute--
"(c) for the financial year commencing on 1 July
2018, 2019 or 2020--$12 500 per week;
(d) for the financial year commencing on 1 July
2021--$12 980 per week;
(e) for the financial year commencing on 1 July
2022 and each subsequent financial year--
$13 461 per week.".
(2) In clause 1 of Schedule 1 to the Payroll Tax
Act 2007, in the definition of TA or threshold
amount, for paragraph (d) substitute--
"(d) for the financial year commencing on 1 July
2018, 2019 or 2020--$650 000;
(e) for the financial year commencing on 1 July
2021--$675 000;
(f) for the financial year commencing on 1 July
2022 and each subsequent financial year--
$700 000.".
(3) In clause 1A of Schedule 2 to the Payroll Tax
Act 2007, in the definition of base deductible
amount, for paragraph (c) substitute--
"(c) for a month in the financial year
commencing on 1 July 2018, 2019 or 2020--
$54 166;
(d) for a month in the financial year
commencing on 1 July 2021--$56 250;
(e) for a month in the financial year
commencing on 1 July 2022 and each
subsequent financial year--$58 333.".
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Part 4--Amendment of Payroll Tax Act 2007
55 Tax rates for regional employers
(1) In clause 1 of Schedule 1 to the Payroll Tax
Act 2007, in the definition of R, for paragraph (f)
substitute--
"(f) for the financial year commencing on 1 July
2018 or 1 July 2019--
(i) 2*425% in the case of a regional
employer; and
(ii) 4*85% in any other case;
(g) for the financial year commencing on 1 July
2020--
(i) 2*02% in the case of a regional
employer; and
(ii) 4*85% in any other case;
(h) for the financial year commencing on 1 July
2021--
(i) 1*62% in the case of a regional
employer; and
(ii) 4*85% in any other case;
(i) for the financial year commencing on 1 July
2022 or any subsequent financial year--
(i) 1*2125% in the case of a regional
employer; and
(ii) 4*85% in any other case.".
(2) In clause 2 of Schedule 2 to the Payroll Tax
Act 2007--
(a) in paragraph (f)--
(i) after "2018" insert "and before 1 July
2020";
(ii) in subparagraph (ii), for "case."
substitute "case;";
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Part 4--Amendment of Payroll Tax Act 2007
(b) after paragraph (f) insert--
"(g) for wages paid or payable on or after
1 July 2020 and before 1 July 2021--
(i) 2*02% in the case of a regional
employer; and
(ii) 4*85% in any other case;
(h) for wages paid or payable on or after
1 July 2021 and before 1 July 2022--
(i) 1*62% in the case of a regional
employer; and
(ii) 4*85% in any other case;
(i) for wages paid or payable on or after
1 July 2022--
(i) 1*2125% in the case of a regional
employer; and
(ii) 4*85% in any other case.".
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State Taxation Acts Amendment Act 2019
No. of 2019
Part 5--Amendment of Valuation of Land Act 1960
Part 5--Amendment of Valuation of Land
Act 1960
56 Definitions
Section 2(8) and (9) of the Valuation of Land
Act 1960 are repealed.
57 Supplementary valuation
Sections 13DF(2)(g) and 13L(2)(f) of the
Valuation of Land Act 1960 are repealed.
58 Determination of objection
After section 21(7) of the Valuation of Land
Act 1960 insert--
"(8) Despite section 14(2) of the Interpretation
of Legislation Act 1984, on an objection to
the site value of any land contained in a
general valuation or supplementary valuation
as at 1 January 2018 or any later date,
including an objection on foot at the
commencement of this subsection, no
account is to be taken of section 2(8) or (9)
(as in force at the date of the valuation)--
(a) by the valuer to whom the objection is
referred in determining whether an
adjustment in the site value is justified;
or
(b) by the valuer-general in determining
whether a recommended adjustment in
the site value is correct.".
59 Grounds of review or appeal
After section 24(2) of the Valuation of Land
Act 1960 insert--
"(3) Despite section 14(2) of the Interpretation
of Legislation Act 1984, on a review or
appeal in relation to the site value of any
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State Taxation Acts Amendment Act 2019
No. of 2019
Part 5--Amendment of Valuation of Land Act 1960
land contained in a general valuation or
supplementary valuation as at 1 January
2018 or any later date, including a review or
appeal on foot at the commencement of this
subsection, no account is to be taken by
VCAT or the Court (as the case requires) of
section 2(8) or (9) (as in force at the date of
the valuation) in determining the correct site
value of the land.".
52
State Taxation Acts Amendment Act 2019
No. of 2019
Part 6--Repeal of this Act
Part 6--Repeal of this Act
60 Repeal of this Act
This Act is repealed on 1 July 2020.
Note
The repeal of this Act does not affect the continuing operation of
the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
═════════════
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State Taxation Acts Amendment Act 2019
No. of 2019
Endnotes
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
Minister's second reading speech--
Legislative Assembly:
Legislative Council:
The long title for the Bill for this Act was "A Bill for an Act to amend the
Duties Act 2000, the Land Tax Act 2005, the Payroll Tax Act 2007 and
the Valuation of Land Act 1960 and for other purposes."
By Authority. Government Printer for the State of Victoria.
54
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