State Taxation Acts Further Amendment Bill 2017 Explanatory Memoranda

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State Taxation Acts Further Amendment Bill 2017

State Taxation Acts Further Amendment Bill 2017 Introduction Print Note: replacement Explanatory Memorandum lodged with a correction to Clause note 2 on page 3. In the explanation for the commencement of Part 10 of the Act, "1 July 2018" has been changed to "the day after the day on which this Act receives the Royal Assent". EXPLANATORY MEMORANDUM General The Bill amends the Congestion Levy Act 2005 in relation to exemptions for certain parking spaces. The Bill amends the Duties Act 2000 in relation to the imposition of foreign purchaser additional duty on a dutiable transaction to which a concession applies and the calculation of the first home buyer concession. The Bill amends the Fire Services Property Levy Act 2012 in relation to the service of documents. The Bill amends the Land Tax Act 2005-- • to extend the exemption for absentee owners to absentee trusts; • in relation to the absentee owner surcharge is imposed where the land ownership involves a sub trust structure; and • to make further provision for the circumstances in which certain land is exempt. The Bill amends the Payroll Tax Act 2007 to extend the exemption for wages paid to new entrants to "for profit" organisations declared to be an approved group training organisation. The Bill amends the Taxation Administration Act 1997-- • in relation to permitted disclosures of information; and • to make further provision for the service of documents. 581406 1 BILL LA INTRODUCTION 3/11/2017

The Bill amends the Unclaimed Money Act 2008 in relation to the service of documents. The Bill amends the Valuation of Land Act 1960 to provide for general valuations to be made each year and for the valuer-general to conduct all valuations under that Act unless a council nominates to cause a general valuation to be made. The Bill also makes consequential amendments to certain other Acts as a result of the amendments made to the Valuation of Land Act 1960 by this Act. The Bill amends the Victorian Civil and Administrative Tribunal Act 1998 in relation to the taxing Acts to which that Act applies. Clause Notes Part 1--Preliminary Part 1 of the Bill outlines the purposes of the Bill and contains the commencement provisions and definitions. Clause 1 outlines the purposes of the Bill. Clause 2 provides the commencement dates for the Bill. The Act (except Parts 2 to 10) comes into operation on the day on which it receives Royal Assent. Part 2, which amends the Congestion Levy Act 2005 in relation to exemptions for certain parking space, comes into operation on the day after the day on which this Act receives the Royal Assent. Section 5 of Part 3, which amends the Duties Act 2000 in relation to the imposition of foreign purchaser additional duty on a dutiable transaction to which a concession applies, is taken to have come into operation on 1 July 2015. Section 6 of Part 3, which amends the Duties Act 2000 in relation to the calculation of the first home buyer concession, comes into operation on the day after the day on which this Act receives the Royal Assent. Part 4, which amends the Fire Services Property Levy Act 2012 in relation to the service of documents, comes into operation on the day after the day on which this Act receives the Royal Assent. 2

Division 1 of Part 5, which amends the Land Tax Act 2000 to extend the exemption for absentee owners to absentee trusts and to clarify the way the absentee owner surcharge is imposed where the land ownership involves a subtrust structure, comes into operation on the day after the day on which this Act receives the Royal Assent. Division 2 of Part 5, which amends the Land Tax Act 2000 to make further provision for the circumstances in which certain land is exempt, comes into operation on the day after the day on which this Act receives the Royal Assent. Part 6, which amends the Payroll Tax Act 2007 to extend the exemption for wages paid to new entrants to "for profit" organisations declared to be an approved group training organisation, comes into operation on 1 July 2018. Part 7, which amends the Taxation Administration Act 1997 in relation to permitted disclosures of information and to make further provision for the service of documents, comes into operation on the day after the day on which this Act receives the Royal Assent. Part 8, which amends the Unclaimed Money Act 2008 in relation to the service of documents, comes into operation on the day after the day on which this Act receives the Royal Assent. Division 1 of Part 9, which amends the Valuation of Land Act 1960 to provide for general valuations to be made each year and for the Valuer-General to conduct all valuations under that Act, unless a council nominates to cause a general valuation to be made, comes into operation on the day after the day on which this Act receives the Royal Assent. Division 2 of Part 9, which makes consequential amendments to certain other Acts as a result of the amendments made to the Valuation of Land Act 1960 by this Act, comes into operation on the day after the day on which this Act receives the Royal Assent. Part 10, which amends the Victorian Civil and Administrative Tribunal Act 1998 in relation to the taxing Acts to which that Act applies, comes into operation on the day after the day on which this Act receives the Royal Assent. 3

Part 2--Amendment of the Congestion Levy Act 2005 Part 2 of the Bill amends the Congestion Levy Act 2005 in relation to the exemption for car parking spaces provided to visitors and staff of the Melbourne Zoo and car parking spaces for shift workers. Clause 3 substitutes section 20A(3) of the Congestion Levy Act 2005 with a new section 20A(3). Section 20A(3) is intended to exempt parking spaces used by visitors and staff of the Melbourne Zoo. The current provision only exempts parking spaces located on land specified in Part 1 of Schedule 1 to the Zoological Parks and Gardens Act 1995 (Zoo land) or other land managed by the Zoological Parks and Gardens Board (Zoo Board). However, the majority of the parking spaces used by Zoo visitors and staff are not located on Zoo land or on land that is managed by the Zoo Board. Rather, they are located on the outer fringe of the Zoo land. Therefore, these parking spaces are not within the current exempt zone. New section 20A(3) extends the exemption for parking spaces in relation to the Melbourne Zoo to include parking spaces on the land within 200 metres of the Zoo land. This will ensure that the exemption applies to parking spaces that were intended to be exempted. Clause 4 substitutes section 22 of the Congestion Levy Act 2005 with a new section 22. Section 22 is intended to exempt parking spaces used solely by shift workers who are employed by an enterprise that operates 24 hours a day. However, the current provision does not reflect the policy intent and allows a parking space to qualify for exemption even if it used by a "non-shift worker" of a 24 hour enterprise. New section 22 restricts the exemption to only apply for parking spaces used solely by the shift workers of a 24 hour enterprise. Part 3--Amendment of the Duties Act 2000 Part 3 of the Bill amends the Duties Act 2000 in relation to the foreign purchaser additional duty charging provision in section 28A and the provision in section 57JA(3) for calculating the concessional rate of duty payable for certain first home buyer principle place of residence transfers. 4

Clause 5 amends section 28A(2) of the Duties Act 2000 to confirm the legislative basis for charging foreign purchaser additional duty on a dutiable transaction under which a land-related interest in residential property is transferred to a foreign purchaser. The amendment is consistent with current administrative practice that foreign purchaser additional duty applies when general duty is otherwise chargeable under Chapter 2 of the Duties Act 2000, for example where a concession from general duty applies to certain principle place of residence transfers. The amendment is taken to have come into operation on 1 July 2015, being the commencement of the foreign purchaser additional duty provisions. Clause 6 amends section 57JA(3) of the Duties Act 2000 to clarify the application of the calculation formula so that it reflects the concessional amount of duty payable under section 57JA(2). These provisions relate to the concessional duty payable for certain first home buyer principle place of residence transfers where the dutiable value of the property the subject of the transfer is more than $600 000 but less than $750 000. Part 4--Amendment of the Fire Services Property Levy Act 2012 Part 4 of the Bill amends the Fire Services Property Levy Act 2012 to update the service provisions to more closely align with current postal delivery timeframes and the administrative arrangements of the State Revenue Office for accepting service of electronic documents and payments. Clause 7 repeals section 79 of the Fire Services Property Levy Act 2012 which currently provides that a document served on the Commissioner or amount paid to the Commissioner outside of business hours is taken to be received on the next business day. The effect of repealing section 79 is that the time of service of a document on the Commissioner and the time of receipt of a payment tendered to the Commissioner are taken to be the actual times of receipt. Clause 8 amends section 81 of the Fire Services Property Levy Act 2012. Subclause (1) substitutes "7 business" for "2 business" in section 81(1)(b). The effect of this amendment is that a document is deemed to be served by the Commissioner 7 business days after the day on which it is posted. 5

Subclause (2) repeals section 81(2) of the Fire Services Property Levy Act 2012 which provides that an electronic transmission received after 5.00pm is taken to be received on the next business day. The effect of repealing section 81(2) is that the time an electronic transmission is received by the Commissioner is taken to be the actual time of receipt. Clause 9 repeals the heading to Part 6 of the Fire Services Property Levy Act 2012 (Transitional arrangements). Part 5--Amendment of Land Tax Act 2005 Division 1 of Part 5 of the Bill amends the Land Tax Act 2005 to extend the exemption from the absentee owner surcharge to absentee trusts and to clarify the way the absentee owner surcharge is imposed where the land ownership involves land held under a chain of trusts structure, so that it is based on the absentee beneficiaries' proportion of interests in the land. Division 2 of Part 5 of the Bill amends the Land Tax Act 2005 to repeal section 71 of the Land Tax Act 2005 and to make further provision for the circumstances in which certain land is exempt. Division 1--Absentee owner surcharge Exemption for land held on trust under an absentee trust Currently, section 3B of the Land Tax Act 2005 provides the Treasurer with the power to exempt an absentee person who holds an absentee controlling interest in a corporation that is incorporated in Australia, from holding that controlling interest. The effect of this exemption is that the corporation that is incorporated in Australia does not constitute an absentee corporation and is therefore not subject to the absentee owner surcharge. Section 3C provides that the Treasurer may delegate this power to the Commissioner of State Revenue who may in turn delegate it to staff of the State Revenue Office. Section 3C(4) provides that while this delegation remains in force, the Treasurer cannot exercise this power of exemption. The exemption currently only applies to an absentee corporation that is incorporated in Australia. Division 1 of Part 5 of the Bill amends the Land Tax Act 2005 to also provide that an absentee beneficiary may qualify for an exemption from the surcharge. 6

Calculation of land tax for land held under a chain of trusts Currently, Division 2AB of the Land Tax Act 2005 sets out how land tax, including the absentee owner surcharge, is assessed for land held under an absentee trust. In the case of a chain of trusts, i.e. where the beneficiary of a trust (first trust) is the trustee of another trust (second trust), the provisions currently provide that the absentee owner surcharge is calculated based on the interest in the first trust held by trustee of the second trust. Example: First Trust 100% Second Trust 50% 50% Absentee person Non-absentee person Based on the above example, the absentee owner surcharge is calculated on the 100% interest in the first trust held by trustee of the second trust. Division 1 of Part 5 of the Bill amends the Land Tax Act 2005 so that the absentee owner surcharge is calculated based on the absentee beneficiary's proportion of their interests in the land subject to an absentee trust. Clause 10 inserts new definitions of chain of trusts, and ultimate trust in section 3(1) of the Land Tax Act 2005. Clause 11 repeals section 3B(3), (4), (5) and (6) of the Land Tax Act 2005. These provisions are re-enacted in new section 3BB. Clause 12 inserts new sections 3BA and 3BB. These sections parallel the existing provisions in the Land Tax Act 2005 relating to the exemption for an absentee controlling interest in an absentee corporation but are modified to reflect the exemption for absentee trusts. New section 3BA(1) provides that if an absentee beneficiary holds an exemption under subsection (2) in relation to an absentee trust, the absentee beneficiary is taken to hold its relevant interest as a beneficiary who is not an absentee beneficiary. The effect of exempting all the absentee beneficiaries of an absentee trust is that the trust will not constitute an absentee trust. 7

New section 3BA(2) provides that the Treasurer may exempt an absentee beneficiary in relation to an absentee trust, if the Treasurer is satisfied that having regard to a number of matters set out in the provision, the absentee beneficiary should not be treated as an absentee beneficiary in relation to the trust. The matters set out in the new section are similar to the matters relating to the current exemption for an absentee controlling interest in an absentee corporation but are modified to reflect the exemption for absentee trusts. New section 3BB(1) re-enacts section 3B(3), (4), (5) and (6), which are repealed by clause 11 (with necessary changes in relation to new section 3BA). It provides that the Treasurer must cause a report to be laid out before each House of Parliament and published on an appropriate government website at least once every 6 months providing data of the number of exemptions granted and the total value of the exemptions under sections 3B (relating to exemptions for absentee corporations) and 3BA (relating to exemptions for absentee trusts). New section 3BB(2), (3) and (4) provide that the Treasurer must issue guidelines for the exercise of the power of exemption under sections 3B and 3BA and cause the guidelines to be published in the Government Gazette. The guidelines are not a legislative instrument within the meaning of the Subordinate Legislation Act 1994. Clause 13 inserts new paragraph (ab) in section 3C(1) of the Land Tax Act 2005, which allows the Treasurer to delegate the power to exempt an absentee beneficiary under new section 3BA(2) to the Commissioner. Subclause (2) substitutes section 3C(4) to provide that the Treasurer cannot exercise the power to exempt an absentee beneficiary while a delegation to the Commissioner is in effect. Clause 14 inserts new sections 3D and 3E in the Land Tax Act 2005. New section 3D defines a chain of trusts as two or more trusts where at least one of the following conditions is satisfied for each of the trusts-- • the trustee of the trust has a specified interest under another of the trusts; • the trustee of another of the trusts has a specified interest under the trust. 8

Subclause (2) outlines when a person has a specified interest in a trust, being-- • in the case of a fixed trust, when the person has a beneficial interest under the trust; or • in the case of a unit trust scheme, when the person is a unitholder in the scheme; or • in the case of a discretionary trust, when the person is a specified beneficiary of the trust. New section 3E defines an ultimate trust as a trust in the chain in which no person who has a specified interest under the trust holds that interest as a trustee for another person. A definition of a specified interest that is similar to new section 3D is also included in subsection (2). Clause 15 inserts new section 46IAA in the Land Tax Act 2005, which defines the absentee proportion of interests in land subject to a chain of trusts. The new section provides that the absentee proportion of interests under land subject to a trust that is in a chain of trusts is the proportion of all interests in the land that-- • natural person absentees or absentee corporations have in that land directly or indirectly through one or more chain of trusts that they do not hold on trust for another person; or • persons have in that land directly or indirectly through one or more chains of trusts as trustee of an absentee trust that is a discretionary trust. Subsection (2) provides that in calculating the absentee proportion of interests in land subject to a trust, a unitholding in a unit trust scheme is to be regarded as an interest in the land. An examples note to the new section states that Schedule 1A sets out examples of how the absentee proportion of interests in land subject to a trust that is in a chain of trusts is calculated. Clause 16 substitutes section 46IA(1) of the Land Tax Act 2005. The current section 46IA sets out how land tax, including the absentee owner surcharge, is calculated for the owner of land as trustee of an absentee trust, where a notice under sections 46B, 46C or 46F is not in force. The current section 46IA(1) includes a formula. 9

The new section 46IA(1) uses the same formula but amends the definition of the variable "C" in the formula for the purposes of determining land tax including the absentee owner surcharge payable by a trustee of a fixed trust. Paragraph (a) defines the variable "C" for a trust that is not in a chain of trusts or is an ultimate trust in the same way that "C" is defined in the current section 46IA(1) (i.e. the value of all land subject to the trust that would be taken under section 46IB to be owned by an absentee beneficiary if a notice were in force under section 46B in respect of the beneficial interests of that absentee beneficiary in that land). Paragraph (b) defines the variable "C" where the trust is in a chain of trusts and is not an ultimate trust by the formula D x E where D is the absentee proportion of interests in all land subject to the trust and E is the taxable value of all land subject to the trust. New section 46IA(1A) relates to a unit trust scheme. Paragraph (a) defines the variable "C" for a trust that is not in a chain of trusts or is the ultimate trust in the same way that the variable "C" is defined in the current section 46IA(1) (i.e. the value of all land subject to the scheme that would be taken under section 46IC to be owned by an absentee beneficiary if a notice were in force under section 46C in respect of the unitholdings in the scheme held by that absentee beneficiary). Paragraph (b) defines the variable "C" where the trust is in a chain of trusts and is not an ultimate trust by the formula D x E where D is the absentee proportion of interests in all land subject to the trust and E is the taxable value of all land subject to the trust. New section 46IA(1B) relates to a discretionary trust. It provides that the owner of land as trustee of a discretionary trust is liable for land determined at the rate set out in Part 5 of Schedule 1, which is the same as the current section 46IA(1)(b). New section 46IA(2) is amended to make reference to new section 46IA(1), (1A) and (1B). Clause 17 substitutes sections 46IB(1)(b) and 46IB(3)(b) of the Land Tax Act 2005. The current section 46IB sets out how land tax, including the absentee owner surcharge, is calculated for the owner of land as trustee of an absentee trust that is a fixed trust, where a notice under section 46B is in force. The current section 46IB(1) sets out how the tax is calculated where all of the beneficiaries of the trust are absentee beneficiaries. 10

Paragraph (a) sets out how the absentee beneficiary is assessed and paragraph (b) sets out how the trustee is assessed. Subsection (2) provides for an amount to be deducted from the tax payable by the absentee beneficiary to avoid double taxation. Subsection (3) sets out how the tax is assessed where at least one, but not all, of the beneficiaries is not an absentee beneficiary. Paragraph (a) sets out how the absentee beneficiary is assessed and paragraph (b) sets out how the trustee is assessed. Subsection (4) provides for an amount to be deducted from the tax payable by an absentee beneficiary and subsection (5) provides for an amount to be deducted from the tax payable by a beneficiary who is not an absentee beneficiary to avoid double taxation. New section 46IB(1)(b) sets out how the trustee is to be assessed. Subparagraph (i) provides that if the trust is not in a chain of trusts or is an ultimate trust, the trustee is assessed in the same way as set out in the current section 46IB(1)(b) (i.e. at the applicable rate set out in Part 4 of Schedule 1 as if the land were the only land owned by the trustee). Subparagraph (ii) provides that if the trust is in a chain of trusts and is not an ultimate trust, the land tax is assessed according to the stated formula. The variable "C" in the formula is the absentee proportion of interests in all land subject the trust. The effect of this formula is that where the trust is in a chain of trusts but is not the ultimate trust, the absentee owner surcharge is calculated on the absentee proportion of interests in the land subject to the trust held by the absentee beneficiary. New subsection 46IB(3)(b) substitutes the meaning of the variable "C" in the formula set out in the current section 46IB(3)(b). Paragraph (a) provides if the trust is not in a chain of trusts or is an ultimate trust, the variable "C" is defined in the same way as in the current section (i.e. the taxable value of all land owned by the absentee beneficiary). Paragraph (b) provides that if the trust is in a chain of trusts and is not an ultimate trust, the variable "C" is the amount determined by the formula D x E where D is the absentee proportion of interests in all land subject to the trust and E is the taxable value of all land subject to the trust. The effect of this amendment to "C" is that where the trust is in a chain of trusts but is not the ultimate trust, the absentee owner surcharge is calculated on the absentee proportion of interests in the land subject to the trust held by the absentee beneficiary. 11

Clause 18 substitutes section 46IC(1)(b) and (3)(b) of the Land Tax Act 2005. The current section 46IC sets out how land tax, including the absentee owner surcharge, is calculated for a person who is the owner of land as trustee of an absentee trust that is a unit trust scheme, where a notice under section 46C is in force. The current section 46IC(1) sets out how the tax is calculated where all of the unitholders of the trust are absentee beneficiaries. Paragraph (a) sets out how the absentee unitholder is assessed and paragraph (b) sets out how the trustee is assessed. Subsection (2) provides for an amount to be deducted from the tax payable by the absentee unitholder to avoid double taxation. Subsection (3) sets out how the tax is assessed where at least one, but not all, of the unitholders is not an absentee beneficiary. Paragraph (a) sets out how the absentee and non-absentee unitholder is assessed and paragraph (b) sets out how the trustee is assessed by using the stated formula. Subsection (4) provides for an amount to be deducted from the tax payable by the unitholder who is an absentee beneficiary and subsection (5) provides for an amount to be deducted from the tax payable by the unitholder who is not an absentee beneficiary to avoid double taxation. New section 46IC(1)(b) sets out how the trustee is to be assessed. Subparagraph (i) provides if the trust is not in a chain of trusts or is an ultimate trust, the trustee is assessed in the same way is in the current section (i.e. at the applicable rate set out in Part 4 of Schedule 1). Subparagraph (ii) provides that if the trust is in a chain of trusts and is not an ultimate trust, the land tax is assessed according to the stated formula. The variable "C" in the formula is the absentee proportion of interests in all land subject the trust. The effect of this formula is that where the trust is in a chain of trusts but is not an ultimate trust, the absentee owner surcharge is calculated on the absentee proportion of interests in the land subject to the trust. New subsection 46IC(3)(b) substitutes the meaning of the variable "C" in the formula. Paragraph (a) provides if the unit trust scheme is not in a chain of trusts or is an ultimate trust, "C" is defined in the same way as in the current section (i.e. the value of all land owned by a unitholder who is an absentee beneficiary). Paragraph (b) provides that if the trust is in a chain of trusts and is not an ultimate trust, "C" is the amount determined by the formula D x E, where D is the 12

absentee proportion of interests in all land subject to the trust and E is the taxable value of all land subject to the unit scheme. The effect of this amendment to the variable "C" is that where the trust is in a chain of trusts but is not the ultimate trust, the absentee owner surcharge is calculated on the absentee proportion of interests in the land subject to the trust. Clause 19 substitutes sections 46ID(3)(a) and 46ID(5)(a) of the Land Tax Act 2005. The current section 46ID deals with how land tax is calculated where there is a chain of trusts (i.e. where the beneficiary or unitholder holds its interest in the trust or scheme (first trust) as trustee of another trust (second trust)). The trustee of the second trust is referred to as a beneficiary/trustee. Subsections (2A) and (3) provide for an amount to be deducted from the tax payable by the beneficiary/trustee to avoid double taxation, where all of the beneficiaries or unitholders in the first trust are absentee beneficiaries. Subsections (4), (5), (6) and (7) provide for an amount to be deducted from the land tax payable by the absentee beneficiary/trustee and non-absentee beneficiary/trustee where at least one, but not all, of the beneficiaries or unitholders of the first trust is a beneficiary or unitholder who is not an absentee beneficiary. New sections 46ID(3)(a) and 46ID(5)(a) set out new formulas in relation to the amount to be deducted from the tax payable by the beneficiary/trustee. The new formulas are necessary because the land tax payable in relation to the first and second trust is to be calculated based on the absentee proportion of interests in the land held by the absentee persons and, as a consequence, the calculation of the amount to be deducted from the tax payable by the second trust to avoid double taxation requires the amendments. The new formula is (A x B) + (C x D x 1.5%), where-- • "A" is the proportion of the beneficiaries/trustee's interest in the first trust (which is the same as the current provisions); • "B" is that part of the total amount of tax assessed on the trustee of the first trust determined by applying the applicable rate set out in Part 1 of Schedule 1 (at the general rate of land tax); 13

• "C" is-- • 100% of interests in all land subject to a discretionary trust where the second trust is an absentee trust that is a discretionary trust; and • in all other cases, the absentee proportion of interests in all land subject to the second trust. • "D" is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner. Clause 20 amends section 46IF of the Land Tax Act 2005. The current section 46IF sets out how a trustee of a unit trust scheme or a discretionary trust that is an absentee trust is assessed for land tax on land subject to the trust if a nomination of a PPR beneficiary is in force under section 46H. Subsection (2)(a) currently provides that the trustee is to be assessed for land tax on the land that is used and occupied as the principal place of residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee at the applicable rate set out in Part 4 of Schedule 1 (i.e. on a single holding basis at the general absentee owner surcharge rates). Subsection (2)(b) provides that the trustee is to be assessed on all other land the subject of the trust, if any, at the applicable rate set out in Part 5 of Schedule 1 (i.e. the trust surcharge rates for absentee trusts). Section 46IF(2) is amended to substitute the words "the unit trust scheme" with "a unit trust scheme (other than a scheme that is in a chain of trusts)" and inserts a new section 46IF(2A), which provides that a trustee of a unit trust scheme that is in a chain of trusts is not assessed under subsection (2) but is assessed under new subsection (2A). New section 46IF(2A) sets out how the trustee of a unit trust scheme that is in a chain of trusts if a nomination of a PPR beneficiary is in force under section 46H is to be assessed. Paragraph (a) sets out how the land that is used and occupied as the principal place of residence of the nominated PPR beneficiary is assessed and paragraph (b) sets out how all other land the subject of the trust, if any, is to be assessed. Both paragraphs (a) and (b) contain formulas, which include the variable "C", which means the absentee proportion of interests in all the land the subject of the scheme. The new section is designed to ensure that 14

the absentee owner surcharge component of the land tax is calculated based on the absentee proportion of interests in the land subject to the trust. Subsections 46IF(3) and (4) are also amended to account for new subsection (2A). Clause 21 inserts new Schedule 1A to the Land Tax Act 2005, which provides five examples of how the absentee proportion of interests in land subject to a trust in a chain of trusts is calculated. Division 2--Exemptions and concessions Clause 22 repeals section 71 of the Land Tax Act 2005, which provides an exemption from land tax for land that is leased for outdoor sporting, recreational, cultural or similar activities if the proceeds from the lease are applied for charitable purposes. Currently, there are no restrictions on the type of landowner to which the exemption is intended to apply. In conjunction with the repeal of this section, a corresponding amendment (see clause 24) is also made to section 74 of the Land Tax Act 2005, which provides an exemption from land tax for land that is owned by a charitable institution and that is leased for outdoor sporting, recreational or cultural purposes. The repeal of section 71 and amendment to section 74 together restore the original policy intent by limiting the type of land owners who can benefit from this exemption to charitable institutions only. Clause 23 amends section 72 of the Land Tax Act 2005, which currently provides an exemption for land that is owned by a non-profit organisation established for the purpose of conducting sporting or outdoor recreational, cultural or similar activities, where that land is used primarily or substantially for the exempt activities. The amendment makes three changes to the current provision. The amendment in subclause (1) expressly provides for the exemption to be applied on a partial or proportionate basis to a part of land that is used exclusively for the exempt activities. The amendment in subclause (2) provides that the exemption is to be applied only to land or a part of the land that is used exclusively for the exempt activities, which avoids difficulties over characterising whether land as a whole is "primarily or substantially" used for the exempt purpose. This is consistent with the manner in which most other exemptions operate under the Land Tax Act 2005. Subclause (3) amends the definition of 15

non-profit organisation to reflect the policy intent that a body (whether incorporated or not) is not carried on for the purpose of the profit or gain of its individual members. The current wording of the definition only prohibits dividends (i.e. a share of the profits) being paid by the body to members, rather than more generally prohibiting any profit or gain to members, which the amendment now achieves. Clause 24 amends section 74 of the Land Tax Act 2005, which currently provides an exemption for land that is either used by a charitable institution exclusively for charitable purposes, or that is owned by a charitable institution and vacant, but declared to be held for future use for charitable purposes. The amendment makes three changes to the current provision. First, it imposes a time limit on when the proposed future charitable use of land must commence, while allowing this period to be extended by the Commissioner under appropriate circumstances. Second, it requires that the proposed future use of the land must be exclusively for charitable purposes, and clarifies that this exemption may be applied on a partial or proportionate basis to a part of land that is declared to be exclusively held for future charitable use. Third, as noted under clause 22, in conjunction with the repeal of section 71 of the Land Tax Act 2005, a corresponding amendment is also made to section 74 to provide an exemption from land tax for land, or a part of land, that is owned by a charitable institution and that is leased exclusively for outdoor sporting, recreational or cultural activities. Clause 25 makes a technical amendment to section 80 of the Land Tax Act 2005, so that it is clear that the class of exempt lessees specified under section 80 includes a non-profit organisation that meets the requirements under section 72 of the Land Tax Act 2005. Clause 26 makes a technical amendment to section 81 of the Land Tax Act 2005, so that it is clear that the class of exempt lessees specified under section 81 includes a non-profit organisation that meets the requirements under section 72 of the Land Tax Act 2005. 16

Clause 27 makes a technical amendment to section 83 of the Land Tax Act 2005, so that it is clear that the class of exempt lessees specified under section 83 includes a non-profit organisation that meets the requirements under section 72 of the Land Tax Act 2005. Clause 28 makes a technical amendment to section 84 of the Land Tax Act 2005, so that it is clear that the class of exempt lessees specified under section 84 includes a non-profit organisation that meets the requirements under section 72 of the Land Tax Act 2005. Part 6--Amendment of Payroll Tax Act 2007 Part 6 of the Bill amends the Payroll Tax Act 2007 to extend the exemption for wages paid to new entrants to "for profit" organisations declared to be an approved group training organisation. Clause 29 amends clause 13B(1) of Schedule 2 to the Payroll Tax Act 2007 by substituting the words "a non-profit" with "an". The effect of this amendment is that the Treasurer, by notice in the Government Gazette, may declare either a non-profit organisation or for profit organisation to be an approved group training organisation. The amendment is aimed at encouraging employment of new apprentices and trainees by an approved group training organisation regardless of its status as a non-profit or for profit organisation. Part 7--Amendment of Taxation Administration Act 1997 Part 7 of the Bill amends the Taxation Administration Act 1997 to update references to departments and agencies included as authorised recipients; to remove any basis for a permitted disclosure of certain information about a dutiable transaction under Chapter 2 of the Duties Act 2000 outside the circumstances prescribed under the Taxation Administration Act 1997; to enable assessments and other documents to be served electronically by the Commissioner via a secure internet site maintained by the Commissioner; to update certain provisions governing the service of documents on the Commissioner and the receipts of payments by the Commissioner in light of changes in administrative and postal delivery practices; and to provide a regulation-making power to enable other service arrangements to be prescribed as necessary. 17

Clause 30 amends section 92(1)(e)(vf) and (vg) of the Taxation Administration Act 1997 to update references to the Department of Economic Development, Jobs, Transport and Resources, and to the Australian Criminal Intelligence Commission. Paragraph (a) substitutes "Economic Development, Jobs, Transport and Resources" for "Primary Industries". Paragraph (b) substitutes "Australian Criminal Intelligence Commission" for "Australian Crime Commission". Clause 31 repeals section 92A of the Taxation Administration Act 1997 which currently allows a tax officer to disclose information about dutiable transactions in certain circumstances. Clause 32 repeals section 124 of the Taxation Administration Act 1997 which currently provides that a document served on the Commissioner or an amount paid to the Commissioner outside of business hours is taken to be received on the next business day. The effect of repealing section 124 is that the time of service of a document on the Commissioner and the time of receipt of a payment tendered to the Commissioner are taken to be the actual times of receipt. Clause 33 amends section 125(1)(d) of the Taxation Administration Act 1997. Subclause (1) omits "by facsimile or other electronic transmission or" in section 125(1)(d). Subclause (2) inserts new paragraph (da) after section 125(1)(d) to prescribe, as a means of service of documents by the Commissioner, electronic service by means of an electronic address such as an email address, a secure internet site that the person can access to obtain a document, a facsimile number, a mobile phone number. Subclause (2) also inserts new paragraph (db) to enable other service arrangements to be prescribed. The effect of these amendments is to enable the electronic service of assessments and other documents by the Commissioner via a secure internet site maintained by the Commissioner, and to enable other service arrangements to be prescribed as necessary. 18

Clause 34 amends section 125A of the Taxation Administration Act 1997. Subclause (1) substitutes "7 business" for "2 business" in section 125A(1)(b). The effect of this amendment is that a document is deemed to be served on the Commissioner 7 business days after the day on which it is posted. Subclause (2) substitutes section 125A(1)(c) to provide that a document uploaded by the Commissioner via a secure internet site is taken to have been served at the time the Commissioner notifies the person by electronic communication that the document is available to be accessed. Subclause (2) inserts a new paragraph (d) into section 125A(1) to provide that a communication sent electronically is taken to have been served when it is received. For example, an email or facsimile is taken to be served on a person at the time the email or facsimile is received by the person. Subclause (2) inserts a new paragraph (e) into section 125A(1) to provide that service by a prescribed means is taken to have been served at the prescribed time. Subclause (3) substitutes section 125A(2) with a new section 125A(2) to provide that for the purposes of subsection (1)(c), notification is taken to have been given to a person by the Commissioner at the time the electronic communication of notification is received by the person. The existing section 125A(2) currently provides that if a facsimile or other electronic communication is received after 4:00pm on any day, it must be taken to have been received on the next business day. The effect of substituting section 125A(2) is also that the time of service of a facsimile or other electronic communication on the Commissioner is taken to be the actual time of receipt. Part 8--Amendment of the Unclaimed Money Act 2008 Part 8 of the Bill amends the Unclaimed Money Act 2008 to update the service provisions to more closely align with current postal delivery timeframes and the administrative arrangements of the State Revenue Office for accepting service of electronic documents and payments. Clause 35 repeals section 100 of the Unclaimed Money Act 2008 which currently provides that a document served on the Registrar of Unclaimed Money or an amount paid to the Registrar outside of 19

business hours is taken to be received on the next business day. The effect of repealing section 100 is that the time of service of a document on the Registrar and the time of receipt of a payment tendered to the Registrar are taken to be the actual times of receipt. Clause 36 amends section 102 of the Unclaimed Money Act 2008. Subclause (1) substitutes "7 business" for "2 business" in section 102(1)(b). The effect of this amendment is that a document is deemed to be served on the Registrar 7 business days after the day on which it is posted. Subclause (2) repeals section 102(2) of the Unclaimed Money Act 2008 which currently provides that if a facsimile or other electronic communication is received after 4:00pm on any day, it must be taken to have been received on the next business day. The effect of repealing section 102(2) is that the time of service of a facsimile or other electronic communication on the Registrar is taken to be the actual time of receipt. Part 9--Amendment of Valuation of Land Act 1960 and other Acts Part 9 of the Bill amends the Valuation of Land Act 1960 to centralise the valuation function under the management of the valuer-general, with the aim of improving the efficiency, robustness and cost effectiveness of rating authority valuations in Victoria. The amendments will give effect to the valuer-general being the sole valuation authority who will conduct annual general valuations and supplementary valuations of all lands, including transmission easements in Victoria for a rating authority. Councils will have the ability to nominate themselves as the valuation authority for their municipal districts until 1 July 2022. There are also consequential amendments to the Land Tax Act 2005, Local Government Act 1989, Co-operative Housing Societies Act 1958 and Water Act 1989 to give effect to these changes. Division 1--Amendment of Valuation of Land Act 1960 Clause 37 amends the relevant definitions in section 2 of the Valuation of Land Act 1960. Paragraph (a) repeals the definition of collection agency general valuation, which has been superseded by the new definition of general valuation. 20

Paragraph (b) repeals the definition of council general valuation, which has been superseded by the new definition of general valuation. Paragraph (c) substitutes the definition of general valuation to mean a valuation that a valuation authority is causing or has caused to be made of all rateable land under Part II and all non-rateable leviable land under Part IIA of the Valuation of Land Act 1960. Paragraph (d) amends the definition of notice of valuation to omit reference to section 15(2)(a) as it is repealed. Paragraph (e) repeals the definition of relevant municipal district as this definition is no longer required. Paragraph (f) substitutes the definition of valuation authority in relation to rateable land in a municipal district, so that it means the valuer-general or a council for a municipal district has the power to cause general valuations to be made for the municipal district, the council (i.e., a council that has successfully nominated under section 10). Paragraph (g) substitutes the definition of valuation authority in relation to non-rateable leviable land, so that it means the valuer-general or if a collection agency has the power (i.e., a collection agency that has successfully nominated under section 13G) to cause general valuations in respect of land located in its municipal district or has been directed by the Minister administering the Fire Services Property Levy Act 2012 to be the collection agency in respect of the land, the collection agency. Paragraph (h) amends the definition of valuation record to substitute the reference to "section 7C;" with "section 7C.". Paragraph (i) repeals the definition of valuer-general general valuation as this category of general valuation will no longer apply. Clause 38 amends section 3(5) of the Valuation of Land Act 1960 to allow the Chief Executive Officer of a council to request the valuer- general, the deputy valuer-general or any valuer nominated by the valuer-general to make valuations of land after payment of the relevant fees. 21

Clause 39 amends section 5(1)(ab) of the Valuation of Land Act 1960 to remove the requirement for a council or collection agency to nominate the valuer-general to cause general valuations and supplementary valuations as it is not necessary to do so. Clause 40 amends section 5AA(1) of the Valuation of Land Act 1960 to omit the word "biennial". This amendment is to give effect to the change from a biennial to an annual general valuation and to ensure that the valuer-general must prepare the Valuation Best Practice Specifications Guidelines at the commencement of every annual valuation. Clause 41 amends section 5B(2)(a) of the Valuation of Land Act 1960 to give effect to the change from a biennial to an annual general valuation so that the valuation of each transmission easement is to be made as at 1 January in each calendar year. This clause also repeals section 5B(2A) as the Minister is no longer required to direct a general valuation under that section. Clause 42 amends the heading to section 6 of the Valuation of Land Act 1960 by removing the words "made by a valuation authority". Subclause (2) substitutes section 6(1) of the Valuation of Land Act 1960 to recognise the role of the valuer-general as the sole valuation authority. This amendment further provides that if the valuation authority is going to cause a general valuation to be made, notice of the valuation must be given to each rating authority interested in the valuation of land in the area for which the valuation is being made. New subsection 6(1A) is inserted to provide that a notice under subsection (1) must be given to each rating authority at least one month before the valuation authority begins the valuation and also specify a date by which each rating authority must give notice under subsection (2). Subclause (3) amends section 6(4) of the Valuation of Land Act 1960 to substitute the words "council general valuation or a collection agency general valuation" with "general valuation caused by a council". Subclause (3) also substitutes the words "the council" in section 6(4) of the Valuation of Land Act 1960, where twice occurring with "the valuation authority". 22

Subclause (4) amends section 6(5) of the Valuation of Land Act 1960 to substitute the word "council" with "the valuation authority". Clause 43 amends section 7 of the Valuation of Land Act 1960 to substitute the words "council general valuation or collection agency valuation" with "general valuation" and also amends paragraphs (d) and (3) to substitute the words "relevant municipal district" with "municipal district of that council". Clause 44 amends section 7AA of the Valuation of Land Act 1960. Subclause (1) amends the heading to section 7AA of the Valuation of Land Act 1960 by replacing the words "council general valuation and collection agency general valuation" with "general valuation caused by council". Subclause (2) amends section 7AA(1) of the Valuation of Land Act 1960 to substitute the words "council general valuation or collection agency general valuation" with "general valuation caused by a council". Clause 45 amends section 7AB of the Valuation of Land Act 1960. Subclause (1) amends the heading to section 7AB of the Valuation of Land Act 1960 by replacing the words "council general valuation and collection agency general valuation" with "general valuation caused by council". Subclause (2) amends section 7AB(2) of the Valuation of Land Act 1960 to substitute the words "council general valuation or collection agency general valuation" with "general valuation caused by a council". Clause 46 amends section 7AC of the Valuation of Land Act 1960. Subclause (1) substitutes the heading of section 7AC of the Valuation of Land Act 1960 with "Assessment by valuer- general of general valuation caused by council". Subclause (2) amends section 7AC(1) of the Valuation of Land Act 1960 to substitute the words "council general valuation or collection agency general valuation" with "general valuation caused by a council". Clause 47 amends section 7AD of the Valuation of Land Act 1960. Subclause (1) substitutes the heading of section 7AD of the Valuation of Land Act 1960 with "Requirements as to the general valuation caused by valuer-general". 23

Subclause (2) amends section 7AD(1) of the Valuation of Land Act 1960 by omitting the words "valuer-general" where secondly occurring and for the words "he or she" substitutes "the valuer- general". Clause 48 amends section 7AE of the Valuation of Land Act 1960. Subclause (1) amends the heading to section 7AE of the Valuation of Land Act 1960 by replacing the words "council general valuation and collection agency general valuation" with "general valuation caused by council". Subclause (2) substitutes the words "council general valuation or collection agency general valuation" in section 7AE(1) of the Valuation of Land Act 1960 with the words "general valuation caused by council". Subclause (3) amends section 7AE(2)(a)(i) of the Valuation of Land Act 1960 by removing the words "in the case of a council general valuation" and amends section 7AE(2)(a)(ii) by removing the words "in the case of a collection agency general valuation". Section 7AE(2)(b) of the Valuation of Land Act 1960 is substituted with "limit the use, by a council or other rating authority, of a general valuation caused by a council as to any one or more of the bases of value assessed to such periods as is specified in the Order". Clause 49 substitutes section 7AF(1) of the Valuation of Land Act 1960 to allow the Minister to declare that a general valuation is generally true and correct, regardless who makes the general valuation. Clause 50 amends sections 7A(1) of the Valuation of Land Act 1960 by removing the words "council general valuation or a collection agency". Clause 51 substitutes section 7C(1) of Valuation of Land Act 1960. This amendment ensures that the valuer-general maintains valuation records for all general valuations and supplementary valuations. Further, the amendment is necessary to remove the references to the categories of general valuations which no longer apply. 24

Clause 52 substitutes section 8AA(1A) of Valuation of Land Act 1960 to provide that a council or collection agency that has been provided with a valuation by the valuer-general under section 11 or 13H is not required to pay a fee for the provision of that valuation. This amendment ensures that for those councils that choose to remain in the new centralised valuation system, the Victorian Government will pay the full cost of revaluations each year. Section 8AA(1) and the remaining provisions of the Valuation of Land Act 1960 will continue to operate to maintain the existing payment arrangements with those councils that choose to nominate themselves as the valuation authority for their municipal districts (ie: councils that opt-out of the new centralised valuation system). The opt-out councils will continue on current payment arrangements and will contribute half of the cost of existing biennial valuations. Section 8AA(1B) Valuation of Land Act 1960 will continue to operate so that councils that request a supplementary valuation under section 13DBF or 13N will continue to pay a fee to the valuer-general for those supplementary valuations. Clause 53 substitutes section 9 of the Valuation of Land Act 1960 to reflect that the valuer-general is to be the valuation authority in respect of rateable land of the municipal districts of all councils unless a council nominates itself as the valuation authority for its municipal district under section 10 of the Valuation of Land Act 1960. Clause 54 substitutes section 10 of the Valuation of Land Act 1960. Substituted section 10(1) provides that a council has the power to cause a valuation of all land in its municipal district for a specified year if it nominates to do so and meets the requirements of this section. Substituted section 10(2) outlines the requirements referred to in substituted section 10(1), which are that a nomination is made to the valuer-general, in writing and made on or before the relevant day for that calendar year. Substituted section 10(3) provides that a nomination made by a council for a specified year also meets the requirements if it is made after the relevant day and it is accepted by the valuer- general. 25

Substituted section 10(4) provides that the valuer-general can accept a nomination from a council after the relevant day if the valuer-general considers appropriate to do so. Substituted section 10(5) provides that a nomination by a council to be the valuation authority for its municipal district continues in force until it is revoked or 30 June 2022, whichever is the earlier. Substituted section 10(6) provides that councils can revoke a nomination by giving notice, in writing, to the valuer-general by 30 June of the calendar year that immediately precedes the next calendar year in which a general valuation is to be made. Substituted section 10(7) defines the relevant day, which for the purposes of meeting the requirements of nomination, is to mean 30 June of the year that immediately precedes the next calendar year in which a general valuation is to be made, except for the calendar year 2019, where a nomination is to be made by 30 January 2018. The final relevant day is 30 June 2021 and relates to the 2022 calendar year. The section also defines specified year, for which a council can nominate to cause a valuation for its municipal district to mean the 2019, 2020, 2021 and 2022 calendar years. Clause 55 amends section 11 of the Valuation of Land Act 1960 to provide that a general valuation is to be made every year and returned to the valuer-general at a specified date. The general valuation is to be provided to the council of the municipal district to which the area for which the valuation of land relates. Clause 56 amends section 12 of the Valuation of Land Act 1960 by inserting after the word "direct" the words "a council that is". The effect of this amendment is that section 12 of the Valuation of Land Act 1960 provides the Minister the ability to direct a council that is a valuation authority to cause a valuation of rateable land within the relevant municipal district consistent with and to the extent of the specified years in section 10 Valuation of Land Act 1960. Clause 57 substitutes the heading in section 13DA of the Valuation of Land Act 1960 with "Valuations for the purposes of the Local Government Act 1989" as the reference to "council valuations" in the heading is no longer relevant. 26

Clause 58 repeals sections 13DD and 13DE of the Valuation of Land Act 1960 as they no longer apply. Clause 59 amends section 13DF(3A) of the Valuation of Land Act 1960 by inserting the words "or requested" after the word "caused". Where a council has caused or requested a supplementary valuation to be made, the council may use the valuation for the purposes of levying or adjusting a municipal rate or fire services property levy before it is certified by the valuer-general. Subclause (2) amends section 13DF(9) to remove the reference to subsection (3A). Clause 60 amends the heading to section 13DFA of the Valuation of Land Act 1960 by inserting the words "caused by a council" after the word "valuation". Subclause (2) amends section 13DFA(1) of the Valuation of Land Act 1960 by substituting the word "Within" with "If a council is a valuation authority, within". Clause 61 substitutes section 13DFB of the Valuation of Land Act 1960. New substituted section 13DFB(1) provides that the valuer- general must cause a supplementary valuation to be made if so requested by a council to do so for its municipal district. New substituted section 13DFB(2) provides that a request by a council under subsection (1) must be made to the valuer-general in writing and be accompanied by a report of the valuation data in the form prescribed by the Valuation Best Practice Specifications Guidelines. Clause 62 repeals sections 13DJ of the Valuation of Land Act 1960. This section allows a person to apply to a council for a copy of the most recent valuation of any rateable land in the council's municipal district. This section no longer applies as the valuer- general is the valuation authority and maintains the valuation records. Clause 63 amends section 13E of the of the Valuation of Land Act 1960 to remove the reference to "by a collection agency" as the collection agency will no longer conduct a general valuation of non-rateable leviable land unless it has made a nomination. 27

Clause 64 substitutes section 13F of the Valuation of Land Act 1960 to reflect that the valuer-general is to be the valuation authority in respect of non-rateable leviable land unless a collection agency nominates itself as the valuation authority under section 13G of the Valuation of Land Act 1960 for non-rateable leviable land in the municipal district of which the collection agency is the council (see clause 65). Clause 65 substitutes section 13G of the Valuation of Land Act 1960. Substituted section 13G(1) provides that a collection agency has the power to cause a valuation of all land specified in subsection (2) for a specified year if it nominates to do so and meets the requirements of this section. Substituted section 13G(2) provides that for the purposes of subsection (1) the land is non-rateable leviable land in the municipal district of which the collection agency is the council and non-rateable leviable land not located in the municipal district, of which the collection agency is the council, if the Minister administering the Fire Services Property Levy Act 2012 has directed that the council will be a collection agency in respect of the land. Substituted section 13G(3) outlines the requirements, which are that a nomination is made to the valuer-general, in writing and made on or before the relevant day for that calendar year. Substituted section 13G(4) provides that a nomination made by a collection agency for a specified year also meets the requirements if it is made after the relevant day and it is accepted by the valuer-general. Substituted section 13G(5) provides that the valuer-general can accept a nomination from a collection agency after the relevant day if the valuer-general considers appropriate to do so. Substituted section 13G(6) provides that a nomination by a collection agency to be the valuation authority for specified land continues in force until it is revoked or 30 June 2022, whichever is the earlier. Substituted section 13G(7) provides that collection agencies can revoke a nomination by giving notice, in writing, to the valuer-general by 30 June of the calendar year that immediately precedes the next calendar year in which a general valuation is to be made. 28

Substituted section 13G(8) defines the relevant day, which for the purposes of meeting the requirements of nomination, is to mean 30 June of the year that immediately precedes the next calendar year in which a valuation is to be made, except for the calendar year 2019, where a nomination is to be made by 30 January 2018. The final relevant day is 30 June 2021 and relates to the 2022 calendar year. The section also defines specified year, for which a collection agency can nominate to cause a valuation for specified land to mean the 2019, 2020, 2021 and 2022 calendar years. Clause 66 amends the heading in section 13H of the Valuation of Land Act 1960 to substitute the words "two years" with "each year" to give effect to the change to an annual general valuation of non-rateable leviable land. This amendment also clarifies that a general valuation of non-rateable leviable land is to be made every year and returned to the valuer-general at a specified date. The general valuation is to be provided to the relevant collection agency. Clause 67 amends section 13I of the Valuation of Land Act 1960 by inserting after the word "direct" the words "a collection agency that is". The effect of this amendment is that section 13I of the Valuation of Land Act 1960 provides the Minister the ability to direct a collection agency that is a valuation authority to cause a valuation of non-rateable leviable land to be made consistent with and to the extent of the specified years in section 13G Valuation of Land Act 1960. Clause 68 substitutes the heading in section 13J of the Valuation of Land Act 1960 with "Valuations for the purposes of the Fire Services Property Levy Act 2012" as the reference to "council valuations" in the current heading is not relevant. Clause 69 amends section 13L(4) of the Valuation of Land Act 1960 by inserting the words "or requested" after the word "caused". Where a collection agency has caused or requested a supplementary valuation to be made, the collection agency may use the supplementary valuation before it is certified by the valuer-general. Clause 70 amends the heading to section 13M of the Valuation of Land Act 1960 by inserting the words "caused by a collection agency" after the word "valuation". 29

Subclause (2) amends section 13M(1) of the Valuation of Land Act 1960 by substituting the word "Within" with "If a collection agency is a valuation authority, within. Clause 71 substitutes the words "on behalf of" with "if requested by" in the heading in section 13N of the Valuation of Land Act 1960. Subclause (2) amends section 13N(1) to refer to the valuer- general as the valuation authority for the purposes of a supplementary valuation made under section 13L. Subclause (3) repeals section 13N(3) of the Valuation of Land Act 1960 as it is no longer necessary. Clause 72 repeals section 13P of the Valuation of Land Act 1960 as it is no longer necessary. Clause 73 amends section 15(1) of the Valuation of Land Act 1960 to remove the words "that is not also a rating authority" to reflect that the valuer-general is not a rating authority for the purposes of the Valuation of Land Act 1960. Subclause (2) repeals section 15(2) of the Valuation of Land Act 1960 as a council that is a rating authority can no longer cause a general valuation or supplementary valuation to be made. Subclause (3) amends section 15(8) to remove the reference to section 15(2)(b) as section 15(2) is repealed. Clause 74 repeals section 19 of the Valuation of Land Act 1960. As the general valuation of land is to be made each year, the valuations will be used for each rating or taxing year. If a person is aggrieved by that valuation, they may object to that valuation used in that year. Consequently, section 19 no longer applies to prevent a further objection by that person to the same valuation within 12 months. Clause 75 amends section 21(5) to substitute the words "the valuation authority and any other" with the words "and any". This amendment is necessary because the valuer-general as a valuation authority decides on the objection and there is no requirement for the valuer-general to give a written notice of his or her decision to himself or herself. 30

Clause 76 substitutes the words ", valuer or valuer-general (as the case requires) with "or valuer (as the case requires)" in section 26(2)(g) of the Valuation of Land Act 1960. Section 26(2) sets out the factors that the Victorian Civil and Administrative Tribunal or Court must take into consideration in determining any questions concerning costs orders made on a review or appeal. One of these factors is stated in section 26(2)(g) which relates to an excessively high value contended by the valuation authority, valuer or valuer-general. As the valuer-general will be the sole valuation authority, this provision is amended to remove the reference to the valuer-general to avoid duplication. Clause 77 inserts new sections 35 to 38 into the Valuation of Land Act 1960 to provide for savings provisions. New section 35 is a saving provision in relation to 2018 valuations. Accordingly, it provides that despite the amendments made to the Valuation of Land Act 1960 upon the commencement of Part 9 of the State Taxation Acts Further Amendment Act 2017, a council or collection agency may make a valuation for the 2018 calendar year as if the Valuation of Land Act 1960 had not been amended. New section 36 is a savings provision in relation to objections. Accordingly, it provides that this section applies if an objection has been made under section 16 before the commencement of Part 9 of the State Taxation Acts Further Amendment Act 2017 to a general valuation or supplementary valuation returned before the commencement and that objection was not finally determined before that commencement. New section 36(2) then provides for the continued application of Division 3 of Part III of the Valuation of Land Act 1960, as in force immediately before that commencement, to those objections. New section 37 is a savings provision in relation to reviews. Accordingly, it provides that this section applies if an application for review of a decision on an objection has been made under section 22 before the commencement of Part 9 of the State Taxation Acts Further Amendment Act 2017 and the general valuation or supplementary valuation to which the application relates was returned before that commencement 31

and that application was not finally determined before that commencement. Section 37(2) then provides for the continued application of Division 4 of Part III of the Valuation of Land Act 1960, as in force immediately before that commencement, to those applications. New section 38 inserts a savings provision in relation to appeals to the Supreme Court. Accordingly, this section applies if an appeal to the Supreme Court made under section 23 was on foot before the commencement of Part 9 of the State Taxation Acts Further Amendment Act 2017 in respect of a general valuation or supplementary valuation and the general valuation or supplementary valuation to which the appeal relates was retuned before that commencement and that appeal was not finally determined before that commencement. New section 38(2) then provides for the continuation of Division 4 of Part III of the Valuation of Land Act 1960, as in force immediately before that commencement, to those appeals. Division 2--Consequential amendments to other Acts Clause 78 amends the Co-operative Housing Societies Act 1958. Subclause (1) inserts a definition of valuer in the Co-operative Housing Societies Act 1958. The term "valuer" is defined to mean a person who holds the qualifications or experience specified under section 13DA(2) of the Valuation of Land Act 1960. Subclause (2) repeals the definition of valuator as it no longer applies. Subclause (3)(a) substitutes "valuator" with "valuer" in subsection (2) to align with terminology used in the Valuation of Land Act 1960. Subclause (3)(b) substitutes "valuator's" with "valuer's" in subsection (3) for consistency of wording in section 58. Subclause (3)(c) substitutes "valuators" with "valuer's" in subsection (4) for consistency of wording in section 58. Subclause (3)(d) substitutes "valuator" (wherever occurring) with "valuer" in subsection (5) and "valuator's" with "valuer's" in paragraph (b) and (c) of that section. 32

Subclause (3)(e) substitutes "valuator" with "valuer" in subsection (6). Clause 79 substitutes the definition of general valuation in section 3(1) of the Land Tax Act 2005. The new definition refers to the definition of general valuation in the Valuation of Land Act 1960. Clause 80 repeals section 21A of the Land Tax Act 2005. A general valuation is conducted annually and the site value valuation will be used for assessing land tax for each tax year. This section is no longer required to prevent a retrospective application to the previous tax year assessment of a site value that has been reduced by a successful objection to the current tax year assessment. Clause 81 amends the Local Government Act 1989 by inserting a new section 157(3) to make it a requirement for councils to use the current valuation as returned by the valuation authority for the purpose of calculating the site value, net annual value and capital improved value of rateable land. Clause 82 amends the Water Act 1989. Subclause (1) substitutes "municipal valuation" with "general valuation" in section 262(1)(a) to align with the terminology used in the Valuation of Land Act 1960. Subclause (2) inserts a new definition of general valuation in section 262(4) which has the same meaning as in the Valuation of Land Act 1960. Part 10--Amendment of Victorian Civil and Administrative Tribunal Act 1998 Part 10 of the Bill amends the Victorian Civil and Administrative Tribunal Act 1998 to update the definition of taxing Act contained in clause 2 of Schedule 1 to that Act. Clause 83 amends clause 2 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998 to ensure that the definition of taxing Act includes a taxation law within the meaning of the Taxation Administration Act 1997 and other Acts currently in force and under the general administration of the Commissioner. 33

Part 11--Repeal of amending Act Clause 84 repeals this Act as of 1 July 2019, but does not affect the continuing operation of the amendments made by it. 34

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