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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment Bill 2018
Contents
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- Duties Act 2008 amended
3. Act amended 3
4. Section 3 amended 3
5. Section 3A inserted 4
3A. Term used: land 4
6. Section 6 amended 6
7. Section 11 amended 7
8. Section 13 amended 7
9. Section 14 amended 7
10. Section 16 amended 9
11. Section 17 amended 10
12. Section 18 amended 10
13. Section 18A inserted 11
18A. Things fixed to land that are to be
permanently removed 11
14. Section 28 amended 13
15. Section 36 amended 13
16. Section 36A inserted 14
36A. Determining unencumbered value: fixtures
and mining tenement fixtures 14
17. Section 39 amended 16
18. Section 42 amended 16
19. Section 43 amended 17
20. Section 57 amended 17
21. Section 61 amended 18
22. Section 66 amended 18
23. Section 67 amended 19
113--2 page i
Revenue Laws Amendment Bill 2018
Contents
24. Section 68 amended 19
25. Section 70 amended 19
26. Section 72 amended 20
27. Section 73 amended 20
28. Section 77 amended 21
29. Section 78 replaced 22
78. Dutiable value of transfer of dutiable
property to retiring partner 22
78A. Certain retained property taken to be
transferred to retiring partner 24
30. Section 79 amended 25
31. Section 80 amended 26
32. Section 81 amended 26
33. Section 87 amended 26
34. Chapter 2 Part 5 Divisions 7 and 8 inserted 27
Division 7 -- Rights relating to fixed infrastructure
91A. Terms used 27
91B. Some transactions involving fixed
infrastructure statutory licences to be
taken to be agreements for transfer 28
91C. Which transactions as to fixed
infrastructure access rights and fixed
infrastructure statutory licences are
dutiable 29
91D. Dutiable value of fixed infrastructure
statutory licences 31
Division 8 -- Derivative mining rights
91E. Agreement for transfer of mining tenement
conditional on grant of derivative mining
right to transferor 32
91F. Agreement for transfer of mining tenement
conditional on grant of derivative mining
right to current right holder 32
91G. Transfer or agreement for transfer of
mining tenement to holder of derivative
mining right 33
91H. Acquisition of derivative mining right
substantially the same as was held in
relation to previous mining tenement 34
91I. Failure to grant, or surrender of, derivative
mining right after transfer of mining
tenement 35
35. Section 96B amended 36
36. Section 99 amended 37
37. Section 100 amended 37
38. Section 101 amended 38
page ii
Revenue Laws Amendment Bill 2018
Contents
39. Section 102 amended 38
40. Section 102A inserted 40
102A. Related entities for s. 102 40
41. Section 105 amended 41
42. Section 107 amended 41
43. Section 113A inserted 42
113A. Certain incorporated association
transactions 42
44. Section 116 amended 43
45. Section 118 replaced 43
118. Transfers to and from bare trustee 43
118A. Transfers to and from bare trustee: failure
to lodge subsequent transfer 45
46. Chapter 2 Part 6 Division 2 Subdivision 1A
inserted 46
120A. Transfers to facilitate subdivision of land 46
120B. Land retained by transferee following
transfer to facilitate subdivision 47
120C. Transfers to facilitate subdivision: failure
to lodge subsequent transfer within
5 years 48
120D. Subdivisions of land excluded from
s. 120A and 120B 49
120E. References to transfer of land back to
person 49
47. Section 139 amended 50
48. Section 139A inserted 50
139A. Some transfers and vestings under orders
made under Guardianship and
Administration Act 1990 50
49. Section 141 amended 52
50. Section 142A amended 52
51. Section 142 amended 52
52. Section 146 amended 53
53. Section 147A amended 54
54. Section 147D amended 54
55. Section 147F amended 55
56. Section 148 amended 55
57. Section 149 amended 56
58. Section 149A inserted 57
149A. Determining entitlement to land assets:
fixtures and mining tenement fixtures 57
59. Section 150 amended 58
60. Section 152 amended 59
page iii
Revenue Laws Amendment Bill 2018
Contents
61. Section 153 amended 59
62. Sections 153A and 153B inserted 60
153A. References to interest in, or held by,
trustee of discretionary trust 60
153B. References to interest in, or held by,
partnership 61
63. Section 154 amended 61
64. Sections 154A and 154B inserted 62
154A. Calculating total direct or indirect interest
in entity 62
154B. Determining interest in entity:
uncompleted agreements 63
65. Section 155 amended 64
66. Section 156 amended 66
67. Section 156A inserted 67
156A. Linked entities: acquisitions forming one
arrangement 67
68. Section 157 amended 69
69. Sections 158 and 159 deleted 70
70. Section 160 amended 70
71. Section 160A inserted 70
160A. Acquisition of interest by merger of
corporations 70
72. Section 161 amended 71
73. Section 162 amended 71
74. Sections 163 and 164 replaced 73
163. Relevant acquisitions 73
75. Sections 167 and 168 replaced 74
167. Exemption or reduction of duty if nominal
duty would be chargeable on transfer 74
168. Exemption or reduction of duty if transfer
duty would not be chargeable 76
76. Section 171 amended 77
77. Section 172 amended 79
78. Section 173 amended 80
79. Section 174 amended 81
80. Section 176 amended 81
81. Section 177 amended 82
82. Section 179 amended 83
83. Section 180 amended 83
84. Section 185 amended 83
85. Section 186 amended 84
86. Section 187 amended 84
87. Section 189 amended 84
page iv
Revenue Laws Amendment Bill 2018
Contents
88. Section 193 amended 85
89. Section 195A amended 85
90. Chapter 3 Part 6 Division 6 heading replaced 86
Division 6 -- Assessment or reassessment of
liability for landholder duty if uncompleted
agreements terminated or completed
91. Sections 195B and 195C inserted 86
195B. Assessment of duty where s. 149(1) or
154B applied at acquisition time 86
195C. Assessment of duty where s. 176(2)
applied at acquisition time 88
92. Section 195 amended 88
93. Section 196 replaced 89
196. Reassessment of duty where s. 176(2)
applied 89
94. Section 197 amended 90
95. Section 197A inserted 90
197A. Expired put and call options taken to be
terminated 90
96. Section 200 amended 91
97. Section 201 amended 93
98. Section 203 amended 93
99. Section 204 amended 93
100. Chapter 3 Part 7 inserted 94
Part 7 -- Application of this Chapter to certain
acquisitions
Division 1 -- Rights relating to fixed infrastructure
204A. When fixed infrastructure access rights
are taken into account in determining
entitlement to land assets 94
204B. When fixed infrastructure statutory
licences are treated as land assets in
calculating duty 95
204C. Unencumbered value of fixed
infrastructure statutory licences treated as
land assets 97
204D. Associated entities for s. 204A and 204B 97
Division 2 -- Derivative mining rights
204E. Unencumbered value of mining tenement
subject to derivative mining right 98
Division 3 -- Acquisitions forming one arrangement
204F. Acquisitions in 2 or more entities forming
one arrangement 99
page v
Revenue Laws Amendment Bill 2018
Contents
204G. Modified application of s. 176 if entity
becomes landholder because of
acquisitions forming one arrangement 100
204H. Reassessment of landholder duty if
amount of duty chargeable changes
because of acquisitions forming one
arrangement 101
101. Section 205A amended 102
102. Section 205E amended 102
103. Section 205P amended 103
104. Section 205RA inserted 103
205RA. Foreign transfer duty on deemed
transaction under s. 120B(2) 103
105. Section 205S amended 103
106. Section 205W amended 104
107. Section 205ZB amended 104
108. Section 205ZD amended 105
109. Section 205ZE amended 106
110. Section 205ZG amended 108
111. Sections 205ZH and 205ZI replaced 108
205ZH. Foreign landholder acquisitions 108
112. Section 205ZKA inserted 110
205ZKA. Modified application of s. 176 if entity
becomes residential landholder because
of acquisitions forming one arrangement 110
113. Section 205ZM amended 111
114. Section 205ZP amended 113
115. Section 205ZS amended 114
116. Section 205ZT amended 114
117. Section 244A amended 115
118. Section 257 amended 116
119. Section 259 amended 117
120. Section 260 amended 118
121. Section 260A inserted 119
260A. Consideration provided as loan 119
122. Section 261 amended 119
123. Section 263 amended 120
124. Section 264 amended 120
125. Section 264A inserted 121
264A. Automatic revocation of exemption 121
126. Section 265 amended 123
127. Section 266 amended 123
128. Sections 266A to 266D inserted 124
page vi
Revenue Laws Amendment Bill 2018
Contents
266A. Reduction of duty following automatic
revocation or refusal of exemption 124
266B. Reduction of duty following automatic
revocation or refusal of exemption
resulting from relevant acquisition 126
266C. Property in relation to which landholder
duty taken to be chargeable for s. 266B 128
266D. Application of s. 266B and 266C to foreign
transfer duty and foreign landholder duty 129
129. Section 277 amended 130
130. Schedule 1 amended 131
131. Schedule 3 clause 1 amended 131
132. Schedule 3 Division 9 inserted 131
Division 9 -- Provisions for Revenue Laws
Amendment Act 2018
46. Terms used 131
47. Application of amendments made by
Revenue Laws Amendment Act 2018 132
48. Definition of land taken always to have
included pastoral leases 133
49. Validation of administration agreements
entered into before commencement day 134
50. Transfers of vehicle licences between
spouses between 1 July 2014 and
commencement day 134
51. Provisions relating to exemptions for
connected entities 135
52. Provisions about validated assessments 136
53. Application of s. 195B and 195 to
acquisitions before commencement day 137
Part 3 -- Land Tax Assessment
Act 2002 amended
Division 1 -- Act amended
133. Act amended 138
Division 2 -- Amendments commencing on day
after Royal Assent
134. Section 18A inserted 138
18A. Taxable value of land subject to partial
exemption 138
135. Section 26A amended 139
136. Section 29 amended 140
137. Section 46 amended 140
138. Schedule 1 Division 6 inserted 140
page vii
Revenue Laws Amendment Bill 2018
Contents
Division 6 -- Provisions for Revenue Laws
Amendment Act 2018
20. Application of section 30D to land held in
trust for assessment year 2019/20 140
Division 3 -- Amendments commencing on
1 July 2019
139. Part 3 Division 2 Subdivision 1 heading inserted 141
Subdivision 1 -- Exemptions and rebates for private
residential property
140. Part 3 Division 2 Subdivision 2 inserted: 141
Subdivision 2 -- Application of private residential
exemptions to subdivided land
28A. Terms used 141
28B. Application of certain private residential
exemptions to property subdivided during
exemption period 142
28C. Application of requirements relating to
sale or disposal of subdivided property 144
28D. Application of 2-year private residential
exemptions if property subdivided during
first year 144
28E. Ownership of land during period when
land subdivided but certificates of title not
issued 145
141. Schedule 1 amended 146
21. Application of amendments relating to
subdivision of land 146
142. Glossary clause 2 amended 146
Division 4 -- Amendment commencing when
Community Titles Act 2018 s. 219(3)
commences
143. Glossary clause 2 amended 147
Part 4 -- Pay-roll Tax Assessment
Act 2002 amended
144. Act amended 148
145. Section 9FA amended 148
page viii
Western Australia
LEGISLATIVE ASSEMBLY
(As amended during consideration in detail)
Revenue Laws Amendment Bill 2018
A Bill for
An Act to amend --
• the Duties Act 2008; and
• the Land Tax Assessment Act 2002; and
• the Pay-roll Tax Assessment Act 2002.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment Bill 2018
Part 1 Preliminary
s. 1
1 Part 1 -- Preliminary
2 1. Short title
3 This is the Revenue Laws Amendment Act 2018.
4 2. Commencement
5 This Act comes into operation as follows --
6 (a) Part 1 -- on the day on which this Act receives the
7 Royal Assent (assent day);
8 (b) Part 2 --
9 (i) if the Duties Amendment (Additional Duty for
10 Foreign Persons) Act 2018 section 3 comes into
11 operation on or before assent day -- on the day
12 after assent day; or
13 (ii) otherwise -- when that section comes into
14 operation;
15 (c) Part 3 Division 3 -- on 1 July 2019;
16 (d) Part 3 Division 4 --
17 (i) if the Community Titles Act 2018 section 219(3)
18 comes into operation on or before 1 July 2019 --
19 on 1 July 2019; or
20 (ii) otherwise -- when that section comes into
21 operation;
22 (e) the rest of the Act -- on the day after assent day.
page 2
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 3
1 Part 2 -- Duties Act 2008 amended
2 3. Act amended
3 This Part amends the Duties Act 2008.
4 4. Section 3 amended
5 (1) In section 3 delete the definition of land.
6 (2) In section 3 insert in alphabetical order:
7
8 derivative mining right means an authorisation of a
9 kind described in the Mining Act 1978 section 118A
10 (whether or not the authorisation purports to be made
11 under that section);
12 fixed infrastructure has the meaning given in
13 section 91A;
14 fixed infrastructure access right has the meaning
15 given in section 91A;
16 fixed infrastructure control right has the meaning
17 given in section 91A;
18 fixed infrastructure statutory licence has the meaning
19 given in section 91A;
20 land has a meaning affected by section 3A;
21 pastoral lease has the meaning given in the Land
22 Administration Act 1997 section 3(1);
23 pastoral lessee has the meaning given in the Land
24 Administration Act 1997 section 3(1);
25 public float has the meaning given in section 257;
26 relocatable home means a relocatable home as defined
27 in the Residential Parks (Long stay Tenants) Act 2006
28 Glossary;
page 3
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 5
1 residential park site means a site (as defined in the
2 Residential Parks (Long stay Tenants) Act 2006
3 Glossary) in a residential park (as defined in that
4 Glossary);
5
6 (3) In section 3 in the definition of chattel after paragraph (g)
7 insert:
8
9 (ga) a thing that is land to which section 3A(1)(f)
10 applies;
11
12 (4) In section 3 in the definition of discretionary trust after
13 paragraph (c) insert:
14
15 (ca) a unit trust scheme; or
16
17 5. Section 3A inserted
18 After section 3 insert:
19
20 3A. Term used: land
21 (1) In this Act, land includes the following --
22 (a) an estate or interest in land;
23 (b) a mining tenement;
24 (c) an estate or interest in a mining tenement;
25 (d) a pastoral lease;
26 (e) an interest of a pastoral lessee under a pastoral
27 lease;
28 (f) anything fixed to land (including land the
29 subject of a mining tenement or pastoral lease),
30 whether or not the thing --
31 (i) constitutes a fixture at law; or
page 4
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 5
1 (ii) is owned separately from the land; or
2 (iii) is notionally severed or considered to be
3 legally separate from the land as a result
4 of the operation of any law of the State
5 or the Commonwealth;
6 (g) an estate or interest in a thing to which
7 subsection (1)(f) applies.
8 (2) In this Act, land does not include --
9 (a) a carbon right or a carbon covenant registered
10 under the Carbon Rights Act 2003; or
11 (b) a derivative mining right.
12 (3) Without limiting subsection (1)(f), a thing is taken to
13 be fixed to land if it has a physical connection to the
14 land or is buried or partly buried under the surface of
15 the land.
16 (4) Subsection (1)(f) does not apply to the following --
17 (a) a thing that is fixed to land on a temporary
18 basis and only for the purpose of being used in
19 construction works;
20 (b) a thing that does not constitute a fixture at law
21 and that is held or used in connection with the
22 business of primary production;
23 (c) a relocatable home fixed to a residential park
24 site, or an addition or structure fixed or attached
25 to the home or site for the use or enjoyment of
26 the occupier of the home, that does not
27 constitute a fixture at law;
28 (d) a thing of a kind prescribed for the purposes of
29 this paragraph.
30 (5) A paragraph of subsection (1) is not to be taken into
31 account in determining the meaning of land when used
32 in another paragraph of subsection (1).
33
page 5
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 6
1 6. Section 6 amended
2 (1) At the beginning of section 6 insert:
3
4 (1) In this section --
5 step-child, of a person, means a child of a spouse or
6 de facto partner of the person.
7
8 (2) In section 6 delete "In determining whether" and insert:
9
10 (2) In determining whether
11
12 (3) At the end of section 6 insert:
13
14 (3) In determining for the purposes of section 43(1)(c) or
15 (ca), 87(6)(a), (c) or (h) or 100(1)(a) or (c) whether a
16 person is a child or remoter lineal descendant of
17 another person, a step-child of a person is to be treated
18 as a child.
19 (4) In determining for the purposes of section 162(1)(b)
20 whether the relationship between individuals is that of
21 parent and child, a step-child of a person is to be
22 treated as a child.
23
24 Note: The heading to amended section 6 is to read:
25 Determining family relationships
page 6
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 7
1 7. Section 11 amended
2 After section 11(2) insert:
3
4 (3) Subsection (2)(a) does not apply to a right referred to
5 in section 16(1)(h), (i) or (j) or (3)(aa).
6 (4) Subsection (2)(b) does not apply to a pastoral lease.
7
8 8. Section 13 amended
9 In section 13(1):
10 (a) in paragraph (a) delete "right to exploit" and insert:
11
12 derivative mining right in relation to
13
14 (b) in paragraph (c)(ii) delete "a right to exploit, or an
15 entitlement to a right to exploit," and insert:
16
17 a derivative mining right, or an entitlement to a
18 derivative mining right, in relation to
19
20 (c) in paragraph (d) delete "right to exploit the mining
21 tenement," and insert:
22
23 derivative mining right,
24
25 9. Section 14 amended
26 (1) In section 14(1) delete "subsection (2)," and insert:
27
28 subsections (2) and (3),
29
page 7
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 9
1 (2) After section 14(2) insert:
2
3 (3) A transaction referred to in subsection (1) is a dutiable
4 transaction if --
5 (a) there is a relevant acquisition for the purposes
6 of Chapter 3 or an agreement for the making of
7 such an acquisition; and
8 (b) the transaction and the acquisition or agreement
9 together form, evidence, give effect to or arise
10 from what is, substantially one arrangement.
11 (4) Without limiting subsection (3), unless the
12 Commissioner is satisfied to the contrary, a transaction
13 and an acquisition or agreement together form,
14 evidence, give effect to or arise from what is,
15 substantially one arrangement if --
16 (a) the transaction has taken place, and the
17 acquisition or agreement has been made, within
18 12 months; and
19 (b) in respect of both the transaction and the
20 acquisition or agreement, the person liable to
21 pay duty is the same person (whether that
22 person is the only person liable to pay duty or is
23 liable to pay duty with the same or different
24 persons).
25 (5) A reference in subsection (4) to a person liable to pay
26 duty on the transaction is a reference to a person that
27 would be liable to pay duty if the transaction were a
28 dutiable transaction.
29
30 Note: The heading to amended section 14 is to read:
31 Transactions as to chattels alone not usually dutiable
page 8
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 10
1 10. Section 16 amended
2 (1) In section 16(1):
3 (a) in paragraph (g) delete "property." and insert:
4
5 property;
6
7 (b) after paragraph (g) insert:
8
9 (h) a fixed infrastructure control right;
10 (i) a fixed infrastructure access right;
11 (j) a fixed infrastructure statutory licence.
12
13 (2) In section 16(2) after "right" insert:
14
15 referred to in subsection (1)(a) to (g)
16
17 (3) In section 16(3):
18 (a) after paragraph (a) insert:
19
20 (aa) a derivative mining right;
21
22 (b) after paragraph (b) insert:
23
24 (ba) a part of, or an interest in, a right referred to in
25 subsection (1) or this subsection;
26
27 (4) After section 16(3) insert:
28
29 (4) Subsection (1)(a) to (g) do not apply to a right to the
30 extent that the right is a fixed infrastructure control
page 9
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 11
1 right, a fixed infrastructure access right or a fixed
2 infrastructure statutory licence.
3
4 11. Section 17 amended
5 (1) After section 17(1)(b)(ii) insert:
6
7 (iia) a fixed infrastructure control right;
8 (iib) a fixed infrastructure access right;
9 (iic) a derivative mining right;
10
11 (2) In section 17(2):
12 (a) in paragraph (c) delete "a lease" and insert:
13
14 a lease (other than a pastoral lease)
15
16 (b) after paragraph (c) insert:
17
18 (ca) a pastoral lease, or an interest of a pastoral
19 lessee under a pastoral lease, if the grant of the
20 lease under the Land Administration Act 1997
21 section 101 is not subject to the payment of a
22 sale price;
23
24 (c) delete paragraph (e).
25 12. Section 18 amended
26 In section 18:
27 (a) in paragraph (c) delete "lease," and insert:
28
29 lease (other than a pastoral lease),
30
page 10
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 13
1 (b) after paragraph (g) insert:
2
3 (ga) a fixed infrastructure control right, if
4 consideration is paid, or agreed to be paid, for
5 the surrender of the right;
6 (gb) a fixed infrastructure access right, if
7 consideration is paid, or agreed to be paid, for
8 the surrender of the right;
9 (gc) a derivative mining right, if consideration is
10 paid, or agreed to be paid, for the surrender of
11 the right;
12
13 13. Section 18A inserted
14 At the end of Chapter 2 Part 3 Division 2 insert:
15
16 18A. Things fixed to land that are to be permanently
17 removed
18 (1) Despite section 3A(1)(f) and (g), a thing fixed to land,
19 or an estate or interest in such a thing, is taken not to be
20 land in relation to a particular transaction if --
21 (a) the transaction is the transfer, or an agreement
22 for the transfer, of the thing or the estate or
23 interest in the thing; and
24 (b) none of the following are transferred as part of
25 the transaction or another transaction that is
26 aggregated with the transaction under
27 section 37 --
28 (i) the land, or an estate or interest in the
29 land, to which the thing is fixed;
30 (ii) if the land to which the thing is fixed is
31 land the subject of a mining
32 tenement -- the mining tenement, or an
page 11
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 13
1 estate or interest in the mining
2 tenement;
3 and
4 (c) there is an agreement, arrangement or
5 understanding relating to the transaction under
6 which the thing is to be permanently removed
7 from the land.
8 (2) Subsection (1) applies whether or not the thing
9 constitutes a fixture at law.
10 (3) If subsection (1) applies to a thing fixed to land, or an
11 estate or interest in such a thing, the thing is taken to be
12 a chattel for the purposes of this Act.
13 (4) Subsection (1) ceases to apply to a thing fixed to land,
14 or an estate or interest in such a thing, if the thing is not
15 permanently removed from the land within --
16 (a) the period of 90 days after the day on which the
17 transfer referred to in subsection (1)(a) occurs;
18 or
19 (b) any longer period allowed, on application
20 within the period referred to in paragraph (a),
21 by the Commissioner on any conditions the
22 Commissioner thinks fit.
23 (5) If a failure to remove a thing as referred to in
24 subsection (4) occurs, the transferee must lodge a
25 notice of the failure in the approved form within
26 2 months after the last day of the period that applies
27 under subsection (4)(a) or (b).
28 Penalty for this subsection: a fine of $20 000.
29 (6) Subject to the Taxation Administration Act section 17,
30 the Commissioner must make any reassessment
31 necessary as a result of the operation of subsection (4).
32
page 12
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 14
1 14. Section 28 amended
2 (1) In section 28(4) after "grant of a lease" insert:
3
4 (other than a pastoral lease)
5
6 (2) After section 28(4) insert:
7
8 (4A) The dutiable value of a dutiable transaction that is the
9 grant of a pastoral lease is the sale price subject to the
10 payment of which the lease is granted under the Land
11 Administration Act 1997 section 101.
12
13 15. Section 36 amended
14 (1) In section 36(4):
15 (a) in paragraph (ca)(ii) delete "ascribed;" and insert:
16
17 ascribed.
18
19 (b) after paragraph (ca) delete "and";
20 (c) delete paragraph (c).
21 (2) After section 36(4) insert:
22
23 (5) When determining the unencumbered value of property
24 that is land --
25 (a) if the land is the subject of an agreement for
26 transfer, any improvement made to the land at
27 the expense of the purchaser or transferee
28 before the date liability to duty arises on the
29 agreement is to be taken not to have been made
30 to the land; and
page 13
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 16
1 (b) if the land is the subject of a transfer, any
2 improvement made to the land at the expense of
3 the transferee before the land is transferred is to
4 be taken not to have been made to the land; and
5 (c) the value is to be determined having regard to
6 the use of the land that would best enhance its
7 commercial value; and
8 (d) the value is to be determined having regard to
9 commercial advantages (such as goodwill)
10 that --
11 (i) attach to the location or other aspects of
12 the land; and
13 (ii) would affect the price that a reasonable
14 purchaser would be willing to pay for
15 the land;
16 and
17 (e) if section 36A applies, the value is to be
18 determined having regard to that section.
19
20 Note: The heading to amended section 36 is to read:
21 Determining unencumbered value of property
22 16. Section 36A inserted
23 At the end of Chapter 2 Part 4 Division 5 Subdivision 3 insert:
24
25 36A. Determining unencumbered value: fixtures and
26 mining tenement fixtures
27 (1) In this section --
28 mining tenement fixture, in relation to a mining
29 tenement, means a thing that --
30 (a) under the authority (whether direct or indirect)
31 of the mining tenement, is fixed to land that is
32 the subject of the mining tenement; and
page 14
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 16
1 (b) would be part of that land as a fixture if the
2 mining tenement were a freehold estate in the
3 land.
4 (2) In determining the unencumbered value of dutiable
5 property that is land, anything that is part of the land as
6 a fixture is to be taken into account even if the dutiable
7 transaction does not, or purports not to, apply to the
8 fixture as well as the land.
9 (3) Subsection (2) does not apply if the value of the fixture
10 would, apart from that subsection, be taken into
11 account separately in determining the dutiable value of
12 the dutiable transaction relating to the land or another
13 dutiable transaction that is aggregated with that
14 dutiable transaction under section 37.
15 (4) In determining the unencumbered value of dutiable
16 property that is a mining tenement or an estate or
17 interest in a mining tenement, anything that is a mining
18 tenement fixture in relation to the mining tenement is
19 to be taken into account even if the dutiable transaction
20 does not, or purports not to, apply to the mining
21 tenement fixture as well as the mining tenement or the
22 estate or interest in the mining tenement.
23 (5) Subsection (4) does not apply if the value of the mining
24 tenement fixture would, apart from that subsection, be
25 taken into account separately in determining the
26 dutiable value of the dutiable transaction relating to the
27 mining tenement or the estate or interest in the mining
28 tenement or another dutiable transaction that is
29 aggregated with that dutiable transaction under
30 section 37.
31 (6) In this section, a reference to land does not include
32 anything that is land under section 3A(1)(b), (c), (f) or
33 (g).
34
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 17
1 17. Section 39 amended
2 After section 39(3) insert:
3
4 (4) This section does not apply to a transaction if
5 section 78 or 78A applies to the transaction or if the
6 transaction is a subsequent transfer referred to in
7 section 120A.
8
9 18. Section 42 amended
10 (1) Delete section 42(4B) and insert:
11
12 (4B) If an agreement is for the transfer of dutiable property
13 to a purchaser acting in the purchaser's own capacity,
14 but the property is transferred to the purchaser acting in
15 a capacity as a trustee of a trust, subsection (1) does not
16 apply to the transfer of the property unless --
17 (a) the purchaser is an individual and the trust is a
18 unit trust scheme in which the purchaser is the
19 sole unit holder; or
20 (b) the trust is a unit trust scheme in which the
21 purchaser is a unit holder and each of the other
22 unit holders are related, as referred to in
23 section 43(1)(a), (b), (c), (ca), (cb), (d) or (e), to
24 the purchaser; or
25 (c) the trust is not a discretionary trust or a unit
26 trust scheme and each beneficiary of the trust is
27 related, as referred to in section 43(1)(a), (b),
28 (c), (ca), (cb), (d) or (e), to the purchaser.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 19
1 (2) In section 42(4C) delete "whose interest in the scheme or trust is
2 a beneficial interest." and insert:
3
4 acting in their own capacity and not as agent, trustee or
5 otherwise on behalf of any other person.
6
7 19. Section 43 amended
8 (1) Delete section 43(1)(c) and insert:
9
10 (c) a child or remoter lineal descendant of the
11 purchaser;
12 (ca) a spouse or de facto partner of a child, or
13 remoter lineal descendant, of the purchaser;
14 (cb) a spouse or de facto partner of a parent, or
15 remoter lineal ancestor, of the purchaser;
16
17 (2) In section 43(4)(c)(i) and (ii) after "(c)," insert:
18
19 (ca), (cb),
20
21 20. Section 57 amended
22 (1) In section 57(2) delete "Section 156 applies" and insert:
23
24 Sections 156 and 156A apply
25
26 (2) In section 57(3) delete "section 156, the trustee of the
27 discretionary trust is the main entity, despite section 152(2)."
28 and insert:
29
30 sections 156 and 156A, the trustee of the discretionary trust is
31 the main entity, despite section 152(2) and (3).
32
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 21
1 21. Section 61 amended
2 Delete section 61(b)(i) and (ii) and insert:
3
4 (i) to land assets were a reference to
5 dutiable property; and
6 (ii) to the main entity's total direct or
7 indirect interest in the linked entity
8 calculated under section 154A were a
9 reference to the total direct or indirect
10 interest that the trustee of the
11 discretionary trust has in the linked
12 entity, calculated under section 154A(2)
13 to (5) as if the trustee of the
14 discretionary trust were a higher entity
15 referred to in that section.
16
17 22. Section 66 amended
18 (1) In section 66(2) delete "Section 156 applies" and insert:
19
20 Sections 156 and 156A apply
21
22 (2) In section 66(3) delete "section 156, the corporate trustee is the
23 main entity, despite section 152(2)." and insert:
24
25 sections 156 and 156A, the corporate trustee is the main entity,
26 despite section 152(2) and (3).
27
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 23
1 23. Section 67 amended
2 In section 67(1) delete "results in a change in the beneficial
3 ownership of" and insert:
4
5 results, or will or may result, in a change in any beneficial
6 interest, whether vested or contingent, in
7
8 24. Section 68 amended
9 Delete section 68(2)(a) and (b) and insert:
10
11 (a) to land assets were a reference to dutiable
12 property; and
13 (b) to the main entity's total direct or indirect
14 interest in the linked entity calculated under
15 section 154A were a reference to the total direct
16 or indirect interest that the corporate trustee has
17 in the linked entity, calculated under
18 section 154A(2) to (5) as if the corporate
19 trustee were a higher entity referred to in that
20 section.
21
22 25. Section 70 amended
23 In section 70 in the definition of dutiable property:
24 (a) in paragraph (b) delete "Australia." and insert:
25
26 Australia;
27
28 (b) after paragraph (b) insert:
29
30 (c) a fixed infrastructure control right;
31 (d) a fixed infrastructure access right;
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 26
1 (e) a fixed infrastructure statutory licence;
2 (f) a derivative mining right.
3
4 26. Section 72 amended
5 Delete section 72(b) and insert:
6
7 (b) a fixed infrastructure control right; or
8 (c) a fixed infrastructure access right; or
9 (d) a derivative mining right; or
10 (e) an indirect interest in property referred to in
11 paragraph (a), (b), (c) or (d).
12
13 27. Section 73 amended
14 (1) Delete section 73(1) and insert:
15
16 (1) A partnership holds an indirect interest in property of a
17 kind referred to in section 72(a), (b), (c) or (d) if an
18 entity linked to the partnership is entitled to property of
19 that kind.
20
21 (2) In section 73(2) delete "Section 156 applies" and insert:
22
23 Sections 156 and 156A apply
24
25 (3) In section 73(3) delete "section 156, the partnership is the main
26 entity, despite section 152(2)." and insert:
27
28 sections 156 and 156A, the partnership is the main entity,
29 despite section 152(2) and (3).
30
31 Note: The heading to amended section 73 is to read:
32 When partnership holds indirect interest in property
page 20
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 28
1 28. Section 77 amended
2 (1) Delete section 77(1)(b)(i) and (ii) and insert:
3
4 (i) to land assets were a reference to
5 dutiable property; and
6 (ii) to the main entity's total direct or
7 indirect interest in the linked entity
8 calculated under section 154A were a
9 reference to the total direct or indirect
10 interest that the partnership has in the
11 linked entity, calculated under
12 section 154A(2) to (5) as if the
13 partnership were a higher entity referred
14 to in that section.
15
16 (2) In section 77(2) after "on its formation" insert:
17
18 (other than any joint property)
19
20 (3) After section 77(2) insert:
21
22 (2A) In determining the value of a partnership interest the
23 subject of a new partner's partnership acquisition on
24 formation of a partnership, the value determined under
25 subsections (1) and (2) is to be reduced, for each
26 interest in joint property the new partner contributed to
27 the partnership on its formation, by --
28 (a) the unencumbered value, when liability for duty
29 on the transaction arises, of that interest; or
30 (b) if the amount determined under paragraph (a) is
31 greater than the amount (the cap amount)
32 determined by applying the new partner's
33 partnership interest to the total unencumbered
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 29
1 value, when liability for duty on the transaction
2 arises, of the joint property to which that
3 interest relates -- the cap amount.
4 (2B) For the purposes of subsections (2) and (2A), joint
5 property is property held by the new partner jointly
6 with 1 or more other partners.
7
8 (4) In section 77(3) delete "subsection (2)," and insert:
9
10 subsections (2) and (2A),
11
12 29. Section 78 replaced
13 Delete section 78 and insert:
14
15 78. Dutiable value of transfer of dutiable property to
16 retiring partner
17 (1) This section applies if --
18 (a) a person (the retiring partner) ceases to be a
19 partner in a partnership because of the retiring
20 partner's retirement from the partnership or its
21 dissolution; and
22 (b) on the retirement or dissolution, dutiable
23 property (the transfer property) of the
24 partnership is transferred or agreed to be
25 transferred to the retiring partner; and
26 (c) the transfer property is, or is an interest in, a
27 particular item of dutiable property (the
28 relevant partnership property) held by the
29 partnership immediately before the retirement
30 or dissolution.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 29
1 (2) In determining the dutiable value of the dutiable
2 transaction that is the transfer or agreement referred to
3 in subsection (1)(b), the unencumbered value of the
4 transfer property is to be determined as follows --
5 (a) first, the aggregate unencumbered value of the
6 following is to be determined --
7 (i) the transfer property;
8 (ii) if the transfer property is an interest in
9 the relevant partnership property --
10 relevant retained property (if any) in
11 relation to the transfer property;
12 (b) second, the value determined in accordance
13 with paragraph (a) is to be reduced by an
14 amount calculated by applying the retiring
15 partner's partnership interest in the partnership
16 to the unencumbered value, immediately before
17 the retirement or dissolution, of the relevant
18 partnership property.
19 (3) Property is relevant retained property in relation to the
20 transfer property for the purposes of
21 subsection (2)(a)(ii) if --
22 (a) the property is also an interest in the relevant
23 partnership property; and
24 (b) immediately before the retirement or
25 dissolution, the retiring partner was the legal
26 owner of the property and held it for the
27 partnership; and
28 (c) immediately after the retirement or dissolution,
29 the retiring partner remains the legal owner of
30 the property but no longer holds it for the
31 partnership.
32 (4) This section does not apply to a transfer that is taken to
33 occur under section 78A(2).
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 29
1 78A. Certain retained property taken to be transferred to
2 retiring partner
3 (1) This section applies if --
4 (a) a person (a retiring partner) ceases to be a
5 partner in a partnership because of the retiring
6 partner's retirement from the partnership or its
7 dissolution; and
8 (b) immediately before the retirement or
9 dissolution, the retiring partner was the legal
10 owner of dutiable property (the retained
11 property) and held the property for the
12 partnership; and
13 (c) immediately after the retirement or dissolution,
14 the retiring partner remains the legal owner of
15 the retained property but no longer holds it for
16 the partnership; and
17 (d) the retained property is, or is an interest in, a
18 particular item of dutiable property (the
19 relevant partnership property) held by the
20 partnership immediately before the retirement
21 or dissolution; and
22 (e) the retained property is or includes property
23 referred to in section 72(a) to (d).
24 (2) When the retirement or dissolution occurs, there is
25 taken to be a dutiable transaction consisting of the
26 transfer of the retained property to the retiring partner.
27 (3) In determining the dutiable value of a dutiable
28 transaction under subsection (2) (a deemed
29 transaction), the unencumbered value of the retained
30 property is to be determined as follows --
31 (a) first, the unencumbered value of the retained
32 property when liability for duty on the deemed
33 transaction arises is to be determined;
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Duties Act 2008 amended Part 2
s. 30
1 (b) second, the value determined in accordance
2 with paragraph (a) is to be reduced by an
3 amount calculated by applying the retiring
4 partner's partnership interest in the partnership
5 to the unencumbered value, immediately before
6 the retirement or dissolution, of the relevant
7 partnership property.
8 (4) This section does not apply to retained property if the
9 unencumbered value of the retained property is to be
10 taken into account in determining the dutiable value of
11 a transaction to which section 78 applies.
12
13 30. Section 79 amended
14 In section 79 delete the definition of business licence and insert:
15
16 business licence --
17 (a) means a licence, permit or authority which is
18 issued, granted or given under --
19 (i) a written law and which is required by a
20 written law to be held by a person
21 carrying out an activity for gain or
22 reward; or
23 (ii) a law of the Commonwealth and which
24 is required by a law of the
25 Commonwealth to be held by a person
26 carrying out an activity in Western
27 Australia for gain or reward;
28 but
29 (b) does not include a fixed infrastructure access
30 right, a fixed infrastructure control right or a
31 fixed infrastructure statutory licence;
32
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 31
1 31. Section 80 amended
2 In section 80 delete "to transfer a Western Australian business
3 asset and is liable to duty accordingly." and insert:
4
5 for the transfer to the other person of the business licence that is
6 to be relinquished or is not to be renewed.
7
8 Note: The heading to amended section 80 is to read:
9 Some transactions involving business licences to be taken to be
10 agreements for transfer
11 32. Section 81 amended
12 In section 81(3) delete "business asset" and insert:
13
14 business asset, a fixed infrastructure control right, a fixed
15 infrastructure access right or a fixed infrastructure statutory
16 licence,
17
18 33. Section 87 amended
19 In section 87(6):
20 (a) in paragraph (c) after "brother or sister of the person or"
21 insert:
22
23 a child or
24
25 (b) in paragraph (f) delete "(a),";
26 (c) in paragraph (g) delete "(d)," and insert:
27
28 (d); or
29
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 34
1 (d) after paragraph (g) insert:
2
3 (h) a child or remoter lineal descendant of a former
4 spouse or former de facto partner of a person,
5
6 34. Chapter 2 Part 5 Divisions 7 and 8 inserted
7 At the end of Chapter 2 Part 5 insert:
8
9 Division 7 -- Rights relating to fixed infrastructure
10 91A. Terms used
11 (1) In this Division --
12 fixed infrastructure means dutiable property that is
13 land in Western Australia that is a thing to which
14 section 3A(1)(f) applies;
15 fixed infrastructure access right means a licence or
16 other right that authorises access to or use of any land
17 for --
18 (a) a purpose related to the control, operation, use,
19 construction, inspection, testing, maintenance
20 or repair of fixed infrastructure or of things
21 used in conjunction with fixed infrastructure; or
22 (b) any other purpose associated with fixed
23 infrastructure;
24 fixed infrastructure control right --
25 (a) means a lease, licence or other right that
26 enables the holder to have the day-to-day
27 control, and the operation or use, of fixed
28 infrastructure; but
29 (b) does not include --
30 (i) a security interest; or
31 (ii) a fixed infrastructure statutory licence;
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 34
1 fixed infrastructure statutory licence means a licence,
2 permit or authority that is issued, granted or given
3 under a written law or a law of the Commonwealth (the
4 issuing law) if --
5 (a) the licence, permit or authority authorises the
6 ownership, control, operation or use of a thing
7 (the relevant activity); and
8 (b) the issuing law prohibits a person that does not
9 hold such a licence, permit or authority from
10 engaging in the relevant activity; and
11 (c) the thing referred to in paragraph (a) is fixed
12 infrastructure;
13 landholder has the meaning given in section 148(1);
14 linked entity has the meaning given in section 148(1).
15 (2) In the definition of fixed infrastructure access right in
16 subsection (1), a reference to land does not include
17 anything that is land under section 3A(1)(f) or (g).
18 (3) Despite subsection (1), anything that is land is not a
19 fixed infrastructure control right, fixed infrastructure
20 access right or fixed infrastructure statutory licence.
21 (4) The regulations may prescribe classes of right that,
22 despite subsection (1), are excluded from the definition
23 of fixed infrastructure access right, fixed
24 infrastructure control right or fixed infrastructure
25 statutory licence in that subsection.
26 91B. Some transactions involving fixed infrastructure
27 statutory licences to be taken to be agreements for
28 transfer
29 When a person agrees to relinquish a fixed
30 infrastructure statutory licence held by that person, or
31 agrees not to apply for a renewal of such a fixed
32 infrastructure statutory licence, so that it, or another,
33 can be issued, granted or given to another person, that
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 34
1 agreement is taken to be an agreement for the transfer
2 to the other person of the fixed infrastructure statutory
3 licence that is to be relinquished or is not to be
4 renewed.
5 91C. Which transactions as to fixed infrastructure access
6 rights and fixed infrastructure statutory licences
7 are dutiable
8 (1) For the purposes of this section, a transaction (the fixed
9 infrastructure transaction) is not a dutiable transaction
10 to the extent that the fixed infrastructure transaction
11 relates to dutiable property that consists of a fixed
12 infrastructure access right or a fixed infrastructure
13 statutory licence unless subsection (2), (3) or (4)
14 applies.
15 (2) This subsection applies if the dutiable property to
16 which the fixed infrastructure transaction relates also
17 includes any of the following --
18 (a) fixed infrastructure (relevant fixed
19 infrastructure) to which the fixed infrastructure
20 access right or fixed infrastructure statutory
21 licence relates;
22 (b) an estate or interest in relevant fixed
23 infrastructure;
24 (c) a fixed infrastructure control right that relates to
25 relevant fixed infrastructure.
26 (3) This subsection applies if --
27 (a) there is another transaction that is a dutiable
28 transaction and that relates to any dutiable
29 property referred to in subsection (2)(a), (b) or
30 (c); and
31 (b) the fixed infrastructure transaction and the
32 other transaction together form, evidence, give
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Part 2 Duties Act 2008 amended
s. 34
1 effect to or arise from what is, substantially one
2 arrangement.
3 (4) This subsection applies if --
4 (a) there is a relevant acquisition of an interest in a
5 landholder for the purposes of Chapter 3 or an
6 agreement for the making of such an
7 acquisition; and
8 (b) the landholder, or a linked entity in respect of
9 the landholder, is entitled to any property
10 referred to in subsection (2)(a), (b) or (c); and
11 (c) the fixed infrastructure transaction and the
12 acquisition or agreement together form,
13 evidence, give effect to or arise from what is,
14 substantially one arrangement.
15 (5) Section 37(2) applies in relation to transactions referred
16 to in subsection (3)(b) as if the fixed infrastructure
17 transaction were a dutiable transaction.
18 (6) Section 14(4) and (5) apply in relation to a fixed
19 infrastructure transaction and acquisition or agreement
20 referred to in subsection (4)(c) as if they were a
21 transaction and acquisition or agreement referred to in
22 section 14(3).
23 (7) For the purposes of the application of this section to a
24 transaction that is a partnership acquisition, the
25 partnership acquisition is taken to relate to the property
26 of a kind referred to in section 72(a) to (d) held by the
27 partnership or in which the partnership has an indirect
28 interest under section 73.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 34
1 91D. Dutiable value of fixed infrastructure statutory
2 licences
3 (1) The dutiable value of a dutiable transaction for a fixed
4 infrastructure statutory licence issued, granted or given
5 under a law of the Commonwealth is the greater of --
6 (a) the value of the fixed infrastructure statutory
7 licence so far as it authorises the ownership,
8 control, operation or use of fixed infrastructure
9 (a fixed infrastructure activity); or
10 (b) the portion of the consideration for the
11 transaction that relates to the carrying out of a
12 fixed infrastructure activity under the authority
13 of the licence.
14 (2) The dutiable value of a dutiable transaction for a fixed
15 infrastructure statutory licence issued, granted or given
16 under a law of Western Australia is --
17 (a) the consideration for the dutiable transaction; or
18 (b) the unencumbered value of the fixed
19 infrastructure statutory licence at the time when
20 liability for duty on the transaction arises if --
21 (i) there is no consideration for the
22 transaction; or
23 (ii) the consideration cannot be ascertained
24 when liability for duty on the
25 transaction arises; or
26 (iii) the unencumbered value is greater than
27 the consideration for the transaction.
page 31
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 34
1 Division 8 -- Derivative mining rights
2 91E. Agreement for transfer of mining tenement
3 conditional on grant of derivative mining right to
4 transferor
5 (1) This section applies if --
6 (a) there is an agreement for the transfer of a
7 mining tenement from a person (person A) to
8 another person (person B); and
9 (b) it is a condition of the agreement for the
10 transfer that after the transfer person B is to
11 grant a derivative mining right (the prospective
12 right) in relation to the mining tenement to
13 person A.
14 (2) In determining the dutiable value of the agreement
15 referred to in subsection (1)(a), the unencumbered
16 value of the mining tenement is to be determined,
17 despite section 36(1), having regard to the effect of the
18 prospective right on the value of the mining tenement,
19 as if the prospective right were in force when liability
20 for duty on the agreement arose.
21 (3) If the agreement referred to in subsection (1)(a) is duty
22 endorsed, duty is not chargeable on the acquisition of
23 the prospective right on its grant by person B.
24 91F. Agreement for transfer of mining tenement
25 conditional on grant of derivative mining right to
26 current right holder
27 (1) This section applies if --
28 (a) there is an agreement for the transfer of a
29 mining tenement to a person (person A); and
30 (b) it is a condition of the agreement for the
31 transfer that after the transfer person A is to
32 grant a derivative mining right (the prospective
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 34
1 right) in relation to the mining tenement to
2 another person (person B) who --
3 (i) when the agreement is made, holds a
4 derivative mining right (the previous
5 right) in relation to the mining tenement
6 that is substantially the same as the
7 prospective right; and
8 (ii) will hold the previous right until
9 immediately before the transfer of the
10 mining tenement.
11 (2) In determining the dutiable value of the agreement
12 referred to in subsection (1)(a), the unencumbered
13 value of the mining tenement is to be determined,
14 despite section 36(1), having regard to the effect of the
15 previous right on the value of the mining tenement
16 when liability for duty on the agreement arose.
17 (3) Duty is not chargeable on the acquisition of the
18 prospective right on its grant by person A if both of the
19 following are duty endorsed --
20 (a) the agreement referred to in subsection (1)(a);
21 (b) the acquisition, on its grant, of the previous
22 right.
23 91G. Transfer or agreement for transfer of mining
24 tenement to holder of derivative mining right
25 (1) This section applies if --
26 (a) a person (person A) holds a derivative mining
27 right (the previous right) in relation to a mining
28 tenement held by another person (person B);
29 and
30 (b) the acquisition of the previous right, on its
31 grant, is duty endorsed; and
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s. 34
1 (c) there is a transfer, or agreement for the transfer,
2 of the mining tenement from person B to
3 person A; and
4 (d) person A holds, or will hold, the previous right
5 until immediately before the transfer of the
6 mining tenement.
7 (2) In determining the dutiable value of a transfer referred
8 to in subsection (1)(c), the unencumbered value of the
9 mining tenement is to be determined, despite
10 section 36(1), having regard to the effect of the
11 previous right on the value of the mining tenement, as
12 if the previous right were in force when liability for
13 duty on the transfer arose.
14 (3) In determining the dutiable value of an agreement
15 referred to in subsection (1)(c), the unencumbered
16 value of the mining tenement is to be determined,
17 despite section 36(1), having regard to the effect of the
18 previous right on the value of the mining tenement
19 when liability for duty on the agreement arose.
20 91H. Acquisition of derivative mining right substantially
21 the same as was held in relation to previous mining
22 tenement
23 (1) Duty is not chargeable on an acquisition of a derivative
24 mining right by a person (person A) on its grant by
25 another person (person B) if --
26 (a) the derivative mining right relates to a mining
27 lease granted to person B; and
28 (b) before the grant of the mining lease, person B
29 held a prospecting licence or an exploration
30 licence in relation to land including the land the
31 subject of the mining lease; and
32 (c) person A held a derivative mining right in
33 relation to the prospecting licence or
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Duties Act 2008 amended Part 2
s. 34
1 exploration licence that was substantially the
2 same as the derivative mining right in relation
3 to the mining lease; and
4 (d) the acquisition of the derivative mining right in
5 relation to the prospecting licence or
6 exploration licence, on its grant, is duty
7 endorsed.
8 (2) A reference in this section to a mining lease,
9 prospecting licence or exploration licence is to a
10 mining lease, prospecting licence or exploration licence
11 (as the case requires) granted or continued under the
12 Mining Act 1978.
13 91I. Failure to grant, or surrender of, derivative mining
14 right after transfer of mining tenement
15 (1) In this section --
16 mining tenement valuation provision means
17 section 91E(2) or 91F(2);
18 prospective right, in relation to a mining tenement
19 valuation provision, means the prospective right
20 referred to in whichever of section 91E(1)(b) or
21 91F(1)(b) is relevant.
22 (2) A mining tenement valuation provision that applies to
23 an agreement for the transfer of a mining tenement
24 when liability for duty on the agreement arises ceases
25 to apply to the agreement if --
26 (a) the prospective right is not granted within the
27 period that applies under subsection (3); or
28 (b) the prospective right is surrendered for no
29 consideration within 12 months after the day on
30 which the mining tenement is transferred.
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s. 35
1 (3) For the purposes of subsection (2)(a), the period is --
2 (a) the period of 90 days starting on the day on
3 which the mining tenement is transferred; or
4 (b) any longer period allowed, on application
5 within the period referred to in paragraph (a),
6 by the Commissioner on any conditions the
7 Commissioner thinks fit.
8 (4) If a failure to grant the prospective right referred to in
9 subsection (2)(a) occurs, the transferee in respect of the
10 agreement for transfer referred to in subsection (2)
11 must lodge a notice of the failure in the approved form
12 within 2 months after the last day of the period that
13 applies under subsection (3).
14 Penalty for this subsection: a fine of $20 000.
15 (5) If a surrender referred to in subsection (2)(b) occurs,
16 the person who surrenders the prospective right must
17 lodge a notice of the surrender in the approved form
18 within 2 months after the day on which the surrender
19 occurs.
20 Penalty for this subsection: a fine of $20 000.
21 (6) Subject to the Taxation Administration Act section 17,
22 the Commissioner must make any reassessment
23 necessary as a result of the operation of subsection (2).
24
25 35. Section 96B amended
26 In section 96B(1)(a)(ii) delete "section 168(1)" and insert:
27
28 section 168(3)
29
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 36
1 36. Section 99 amended
2 In section 99(3) delete "acquisition, if the land referred to in
3 section 72 is farming land." and insert:
4
5 acquisition to the extent that the property of a kind referred to in
6 section 72(a) to (d) held by the partnership, or in which the
7 partnership has an indirect interest under section 73, is farming
8 property.
9
10 37. Section 100 amended
11 (1) In section 100:
12 (a) delete "A reference" and insert:
13
14 (1) A reference
15
16 (b) in paragraph (c) after "brother or sister of the person or"
17 insert:
18
19 a child or
20
21 (c) in paragraph (f) delete "(d)," and insert:
22
23 (d); or
24
25 (d) after paragraph (f) insert:
26
27 (g) a brother or sister of the person's spouse or of
28 the person's de facto partner of 2 years; or
29 (h) the spouse or de facto partner of 2 years of a
30 brother or sister to whom paragraph (g) applies,
31
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 38
1 (2) At the end of section 100 insert:
2
3 (2) A reference in this Subdivision to a family member is
4 to a family member acting in their own capacity and
5 not as agent, trustee or otherwise on behalf of any other
6 person.
7
8 38. Section 101 amended
9 In section 101:
10 (a) delete paragraph (a) and insert:
11
12 (a) a family member of the transferor; or
13
14 (b) in paragraph (b) delete "the beneficial owner of the trust
15 property under the trust" and insert:
16
17 each beneficiary of the trust
18
19 (c) delete paragraph (c)(i) and insert:
20
21 (i) each beneficiary of the trust is the
22 transferor or a family member of the
23 transferor; and
24 (ia) the transferor is not the only beneficiary
25 of the trust; and
26
27 39. Section 102 amended
28 (1) Delete section 102(3)(a) to (c) and insert:
29
30 (a) personally or with others; or
page 38
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 39
1 (b) through a trust or corporation (an entity) to
2 which the transferor or transferee, as is
3 relevant, is related under section 102A; or
4 (c) through a combination of entities to which the
5 transferor or transferee, as is relevant, is related
6 under section 102A.
7
8 (2) Delete section 102(4) and (5) and insert:
9
10 (4) The Commissioner may treat the requirement in
11 subsection (2)(a) as being satisfied, even though any of
12 the transferors was not using the farming property in
13 the business of primary production immediately before
14 the transaction took place, if the Commissioner is
15 satisfied that --
16 (a) the relevant transferor had previously used the
17 farming property in the business of primary
18 production; and
19 (b) a family member of the relevant transferor, or
20 an entity to which a family member of the
21 relevant transferor is related under
22 section 102A, was using the farming property
23 in the business of primary production
24 immediately before the transaction took place.
25
26 (3) In section 102(6) delete "subsection (2)," and insert:
27
28 this section,
29
page 39
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 40
1 40. Section 102A inserted
2 After section 102 insert:
3
4 102A. Related entities for s. 102
5 (1) For the purposes of section 102(3), a transferor is
6 related to an entity that is --
7 (a) a trust (other than a unit trust scheme) if the
8 transferor is a beneficiary of the trust and every
9 other beneficiary is a family member of the
10 transferor; or
11 (b) a unit trust scheme if the transferor holds a unit
12 in the unit trust scheme and every other person
13 who holds a unit in the unit trust scheme is a
14 family member of the transferor; or
15 (c) a corporation if the transferor is a shareholder
16 in the corporation and every other shareholder
17 is a family member of the transferor.
18 (2) For the purposes of section 102(3), a transferee is
19 related to an entity that is --
20 (a) a trust (other than a unit trust scheme or a
21 discretionary trust) if the transferee is a
22 beneficiary of the trust and every other
23 beneficiary is the transferor or a family member
24 of the transferor; or
25 (b) a discretionary trust if --
26 (i) the transferee is a beneficiary of the
27 trust; and
28 (ii) every other beneficiary is the transferor
29 or a family member of the transferor;
30 and
31 (iii) the transferor does not control the
32 discretionary trust;
33 or
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 41
1 (c) a unit trust scheme if the transferee holds a unit
2 in the unit trust scheme and every other person
3 who holds a unit in the unit trust scheme is the
4 transferor or a family member of the transferor;
5 or
6 (d) a corporation if the transferee is a shareholder
7 in the corporation and every other shareholder
8 is the transferor or a family member of the
9 transferor.
10 (3) If a transferee is a trustee of a trust to which
11 section 101(b) applies, subsection (2) applies to the
12 transferee as if the references to the transferee in
13 subsection (2)(a), (b), (c) and (d) were references to
14 each beneficiary of that trust.
15 (4) For the purposes of section 102(4)(b), subsection (2)
16 applies in determining whether a family member of a
17 relevant transferor is related to an entity as if the family
18 member were a transferee referred to in that subsection.
19
20 41. Section 105 amended
21 In section 105(1)(a) after "person that is not" insert:
22
23 the transferor or
24
25 42. Section 107 amended
26 In section 107(1) in the definition of replacement transaction
27 paragraph (c) delete "duty;" and insert:
28
29 tax;
30
page 41
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 43
1 43. Section 113A inserted
2 At the end of Chapter 2 Part 6 Division 1 Subdivision 4 insert:
3
4 113A. Certain incorporated association transactions
5 (1) In this section --
6 Commissioner has the meaning given in the
7 Associations Incorporation Act 2015 section 3;
8 prescribed body corporate has the meaning given in
9 the Associations Incorporation Act 2015 section 92;
10 surplus property has the meaning given in the
11 Associations Incorporation Act 2015 section 3;
12 surplus receiving body means a body described in the
13 Associations Incorporation Act 2015 section 24(1).
14 (2) Duty is not chargeable on the following transactions --
15 (a) a vesting of dutiable property by, or expressly
16 authorised by, statute law (as referred to in
17 section 11(1)(d)(i)) in an incorporated
18 association (that is an amalgamation of 2 or
19 more former associations) on the incorporation
20 of the association under the Associations
21 Incorporation Act 2015 Part 7;
22 (b) a transfer of, or an agreement for the transfer
23 of, dutiable property from an incorporated
24 association to a prescribed body corporate on
25 the transfer of incorporation by the association
26 under the Associations Incorporation Act 2015
27 Part 6;
28 (c) a transfer of, or an agreement for the transfer
29 of, dutiable property that is surplus property to
30 a surplus receiving body --
31 (i) from an incorporated association on the
32 winding up of the association under the
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 44
1 Associations Incorporation Act 2015
2 Part 9; or
3 (ii) from an incorporated association under
4 a distribution plan approved under the
5 Associations Incorporation Act 2015
6 Part 10 Division 1; or
7 (iii) where the property is vested in the State
8 under the Associations Incorporation
9 Act 2015 section 148(1)(a), from the
10 Commissioner, acting under
11 subsection (1)(b) of that section.
12
13 44. Section 116 amended
14 After section 116(2) insert:
15
16 (3) Subsection (1) does not apply to a subsequent transfer
17 to which section 118(1) applies.
18
19 45. Section 118 replaced
20 Delete section 118 and insert:
21
22 118. Transfers to and from bare trustee
23 (1) Nominal duty is chargeable on a transfer (the
24 subsequent transfer) if --
25 (a) there has been a dutiable transaction (the
26 original transfer) that is a transfer of dutiable
27 property from a person (the transferor) to
28 another person who is to hold the property
29 solely as a bare trustee for the transferor; and
30 (b) any of the following transactions (the endorsed
31 transaction) is duty endorsed --
32 (i) the original transfer;
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 45
1 (ii) the agreement for the original transfer;
2 (iii) the declaration of trust;
3 and
4 (c) the subsequent transfer is a transfer of the
5 dutiable property back to the transferor or to a
6 person to whom the transferor's beneficial
7 interest in the property has been transmitted by
8 death or bankruptcy; and
9 (d) the Commissioner is satisfied that, between the
10 original transfer and the subsequent transfer, no
11 person other than the transferor has held a
12 beneficial interest in the dutiable property
13 (other than the trustee's right of indemnity).
14 (2) In subsection (1) --
15 bare trustee --
16 (a) means a trustee of a trust, other than a unit trust
17 scheme or a discretionary trust, if the trustee
18 has no active duties or powers in relation to the
19 trust other than conveying the dutiable property
20 to the transferor or as directed by the transferor;
21 and
22 (b) includes a trustee appointed in substitution for a
23 trustee or a trustee appointed in addition to a
24 trustee or trustees.
25 (3) If nominal duty is chargeable on a subsequent transfer
26 under subsection (1), nominal duty is also chargeable
27 on the endorsed transaction.
28 (4) The Commissioner, on the application of the taxpayer,
29 is to reassess the liability to duty of the endorsed
30 transaction in accordance with subsection (3).
31 (5) The limitations as to time in the Taxation
32 Administration Act section 17 do not apply in respect
33 of a reassessment under subsection (4).
page 44
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 45
1 118A. Transfers to and from bare trustee: failure to lodge
2 subsequent transfer
3 (1) This section applies if --
4 (a) under section 118, nominal duty is chargeable
5 on a subsequent transfer and an endorsed
6 transaction referred to in that section; and
7 (b) the subsequent transfer is required to be lodged
8 for registration under --
9 (i) the Transfer of Land Act 1893; or
10 (ii) the Registration of Deeds Act 1856; or
11 (iii) the Mining Act 1978;
12 and
13 (c) the liability to duty of the subsequent transfer is
14 assessed in accordance with section 118(1) on
15 the basis that nominal duty is chargeable; and
16 (d) the liability to duty of the endorsed transaction
17 is reassessed in accordance with section 118(3)
18 on the basis that nominal duty is chargeable;
19 and
20 (e) the subsequent transfer is not lodged for
21 registration under the Transfer of Land
22 Act 1893, the Registration of Deeds Act 1856 or
23 the Mining Act 1978 (whichever is relevant)
24 within 60 days after it is duty endorsed.
25 (2) Despite section 118(1) and (3), nominal duty is not
26 chargeable on the subsequent transfer or the endorsed
27 transaction.
28 (3) The Commissioner must make any reassessment
29 necessary as a result of the operation of subsection (2).
30 (4) The limitations as to time in the Taxation
31 Administration Act section 17 do not apply in respect
32 of a reassessment under subsection (3).
33
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 46
1 46. Chapter 2 Part 6 Division 2 Subdivision 1A inserted
2 After Chapter 2 Part 6 Division 2 Subdivision 1 insert:
3
4 Subdivision 1A -- Transfers to facilitate subdivision of land
5 120A. Transfers to facilitate subdivision of land
6 (1) Nominal duty is chargeable on a dutiable transaction
7 (the original transfer) if --
8 (a) the transaction is a transfer, or agreement for
9 the transfer, of land in Western Australia from a
10 person (the original transferor) to another
11 person; and
12 (b) the Commissioner is satisfied that --
13 (i) the transfer is for the sole purpose of
14 facilitating a subdivision of the land;
15 and
16 (ii) after the subdivision there is to be a
17 transfer back to the original transferor of
18 the land or part of the land.
19 (2) If nominal duty is chargeable on an original transfer
20 under subsection (1), nominal duty is also chargeable
21 on a transfer (the subsequent transfer) of the land, or
22 part of the land, back to the original transferor after the
23 subdivision.
24 (3) If the land the subject of the subsequent transfer
25 includes land that was not the subject of the original
26 transfer, then despite subsection (2) nominal duty is
27 chargeable on the subsequent transfer only to the extent
28 that it relates to land that is also the subject of the
29 original transfer.
page 46
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 46
1 120B. Land retained by transferee following transfer to
2 facilitate subdivision
3 (1) This section applies if --
4 (a) nominal duty is chargeable under
5 section 120A(1) on an original transfer of land
6 from a person (the original transferor) to
7 another person (the original transferee) for the
8 purpose of facilitating a subdivision of the land;
9 and
10 (b) after the subdivision, there is a transfer (the
11 subsequent transfer) of the land, or part of the
12 land, back to the original transferor; and
13 (c) either or both of the following applies --
14 (i) the land the subject of the subsequent
15 transfer is only a part of the land the
16 subject of the original transfer and the
17 remainder of that land is retained by the
18 original transferee after the subsequent
19 transfer;
20 (ii) after the subsequent transfer, the land
21 the subject of the subsequent transfer, or
22 part of that land, is held jointly by the
23 original transferor with the original
24 transferee.
25 (2) When the subsequent transfer is made, there is taken to
26 be a dutiable transaction consisting of the transfer to
27 the original transferee of the following --
28 (a) any land the subject of the original transfer that
29 is not also the subject of the subsequent
30 transfer;
31 (b) the original transferee's interest in any land
32 held jointly with the original transferor as
33 referred to in subsection (1)(c)(ii).
page 47
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 46
1 (3) In determining the dutiable value of a dutiable
2 transaction under subsection (2) (a deemed
3 transaction), the unencumbered value of the dutiable
4 property the subject of the deemed transaction is the
5 unencumbered value of that property when liability for
6 duty arose on the original transfer.
7 (4) Subsection (1)(c)(i) does not apply if the original
8 transferee is to transfer the remainder of the land to
9 another person for the purposes of the subdivision.
10 120C. Transfers to facilitate subdivision: failure to lodge
11 subsequent transfer within 5 years
12 (1) If a subsequent transfer referred to in section 120A is
13 not lodged for registration under the Transfer of Land
14 Act 1893 within the period of 5 years after the day on
15 which the original transfer referred to in that section
16 was registered under the Transfer of Land Act 1893,
17 then, despite that section, nominal duty is not
18 chargeable on the original transfer or the subsequent
19 transfer.
20 (2) The Commissioner may on application extend the
21 period of 5 years referred to in subsection (1) and may
22 do so on any conditions the Commissioner thinks fit.
23 (3) The Commissioner must make any reassessment
24 necessary as a result of the operation of subsection (1).
25 (4) The limitations as to time in the Taxation
26 Administration Act section 17 do not apply in respect
27 of a reassessment under subsection (3).
page 48
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 46
1 120D. Subdivisions of land excluded from s. 120A and
2 120B
3 Sections 120A and 120B do not apply in relation to --
4 (a) a subdivision under --
5 (i) before the coming into operation of the
6 Strata Titles Amendment Act 2018
7 section 7 -- a strata plan registered
8 under the Strata Titles Act 1985 (other
9 than under a strata plan for a single tier
10 strata scheme as defined in the Strata
11 Titles Act 1985 section 3(1)); or
12 (ii) after the coming into operation of the
13 Strata Titles Amendment Act 2018
14 section 7 -- a strata scheme as defined
15 in the Strata Titles Act 1985 section 3(1)
16 (other than a single tier strata scheme as
17 defined in the Strata Titles Act 1985
18 Schedule 2A clause 3);
19 or
20 (b) a subdivision of land in circumstances
21 prescribed by the regulations.
22 120E. References to transfer of land back to person
23 For the purposes of sections 120A and 120B, land that
24 is transferred by a person for the purposes of a
25 subdivision of the land is to be treated as being
26 transferred back to the person after the subdivision --
27 (a) even though there will be a change in the legal
28 description of the land between the transfers;
29 and
30 (b) whether or not, after the transfer back to the
31 person, the land is to be held jointly with 1 or
32 more other persons.
33
page 49
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 47
1 47. Section 139 amended
2 In section 139(2):
3 (a) in paragraph (c)(ii) delete "1972." and insert:
4
5 1972;
6
7 (b) after paragraph (c) insert:
8
9 (d) a partnership acquisition, to the extent that --
10 (i) the partnership acquisition gives effect
11 to a distribution in the estate of a
12 deceased person; and
13 (ii) there is no consideration for the
14 partnership acquisition.
15
16 48. Section 139A inserted
17 After section 139 insert:
18
19 139A. Some transfers and vestings under orders made
20 under Guardianship and Administration Act 1990
21 (1) In this section --
22 administration order means --
23 (a) an administration order (as defined in the
24 Guardianship and Administration Act 1990
25 section 3(1)); or
26 (b) an order or instrument referred to in
27 paragraph (b) or (c) of the definition of
28 administrator in this subsection;
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 48
1 administrator means --
2 (a) an administrator (as defined in the
3 Guardianship and Administration Act 1990
4 section 3(1)); or
5 (b) a person acting under the authority of an order
6 made under the Guardianship and
7 Administration Act 1990 section 66; or
8 (c) the Public Trustee acting under the authority of
9 an instrument referred to in the Guardianship
10 and Administration Act 1990 section 83B.
11 (2) Nominal duty applies to a dutiable transaction that
12 is --
13 (a) a transfer to an administrator of dutiable
14 property of the person to whom the
15 administration order relates (the represented
16 person) made under the authority of the
17 administration order; or
18 (b) a vesting in an administrator of dutiable
19 property of a person to whom the
20 administration order relates (the represented
21 person) by, or as a consequence of, an order of
22 the State Administrative Tribunal under the
23 Guardianship and Administration Act 1990.
24 (3) If nominal duty is chargeable on a transfer or vesting of
25 dutiable property under subsection (2), nominal duty is
26 also chargeable on --
27 (a) any transfer of the dutiable property back from
28 an administrator to the represented person; or
29 (b) any subsequent vesting in the represented
30 person of the dutiable property by, or as a
31 consequence of, an order of the State
32 Administrative Tribunal under the
33 Guardianship and Administration Act 1990.
34
page 51
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 49
1 49. Section 141 amended
2 After section 141(2) insert:
3
4 (3) For the purposes of this Division, a person is a
5 substituted transferee in relation to a dutiable
6 transaction if --
7 (a) the dutiable transaction is an agreement for the
8 transfer of dutiable property referred to in
9 section 11(1)(b); and
10 (b) due to the operation of section 42(2) or (4),
11 duty is not chargeable on the transfer to the
12 person of the dutiable property under the
13 agreement.
14
15 50. Section 142A amended
16 In section 142A(3)(b) delete "section 14AA(2)(a)(ii)" and
17 insert:
18
19 section 14AA(2)(a)
20
21 51. Section 142 amended
22 (1) Delete section 142(1) and insert:
23
24 (1) A reference in this Division to a first home owner
25 concessional transaction is to a transfer of, or an
26 agreement for the transfer of, dutiable property
27 where --
28 (a) either --
29 (i) each transferee is a concessional first
30 home owner; or
page 52
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 52
1 (ii) if the transaction is an agreement for
2 transfer in relation to which there are
3 1 or more substituted transferees --
4 each substituted transferee is a
5 concessional first home owner;
6 and
7 (b) the unencumbered value of the land, or the land
8 and home, the subject of the transaction does
9 not exceed --
10 (i) if there is no home on the land --
11 $400 000; or
12 (ii) otherwise -- $530 000.
13
14 (2) In section 142(2):
15 (a) in paragraph (c) delete "transaction," and insert:
16
17 transaction.
18
19 (b) delete the passage that begins with "and includes" and
20 ends with "subject of the transaction."
21 52. Section 146 amended
22 Delete section 146(b) and insert:
23
24 (b) the FHOG Act applies to and in relation to an
25 application under this Division, to the extent
26 that it can be applied for those purposes, as
27 if --
28 (i) a reference in the FHOG Act to an
29 application or an applicant were a
30 reference to the application or applicant
31 under this Division; and
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 53
1 (ii) the reference in the FHOG Act
2 section 37(1)(a) to functions of the
3 Commissioner were a reference to
4 functions of the Commissioner related
5 to an application under this Division;
6 and
7
8 53. Section 147A amended
9 After section 147A(2) insert:
10
11 (3) For the purposes of this Division, a person is a
12 substituted transferee in relation to an eligible
13 transaction if --
14 (a) the eligible transaction is of a kind referred to
15 in section 147B(b); and
16 (b) due to the operation of section 42(2), (4) or (5),
17 duty is not chargeable on the transfer to the
18 person of the dutiable property under the
19 agreement.
20
21 54. Section 147D amended
22 In section 147D:
23 (a) after "Land" insert:
24
25 that is the subject of an eligible transaction
26
27 (b) in paragraphs (b) to (d) delete "taxpayer" (each
28 occurrence) and insert:
29
30 taxpayer, or a substituted transferee in relation to the
31 eligible transaction,
32
page 54
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 55
1 55. Section 147F amended
2 (1) In section 147F(2) delete "taxpayer --" and insert:
3
4 taxpayer or a substituted transferee in relation to the eligible
5 transaction --
6
7 (2) In section 147F(4) delete "taxpayer --" and insert:
8
9 taxpayer, or a substituted transferee in relation to the eligible
10 transaction for the land --
11
12 56. Section 148 amended
13 (1) In section 148 delete "In this Chapter," and insert:
14
15 (1) In this Chapter,
16
17 (2) In section 148 insert in alphabetical order:
18
19 further interest means an interest in a landholder
20 acquired by a relevant acquisition to which
21 section 163(1)(c) or (d) applies;
22 land asset means any of the following --
23 (a) land;
24 (b) a fixed infrastructure control right;
25 (c) a derivative mining right;
26 (d) subject to section 204A, a fixed infrastructure
27 access right;
28
page 55
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 57
1 (3) In section 148 in the definition of relevant acquisition delete
2 "sections 163 and 164;" and insert:
3
4 section 163(1);
5
6 (4) In section 148 in the definition of unencumbered value delete
7 "section 36 as applied by section 150." and insert:
8
9 sections 36 and 36A as applied by sections 150 and 204C.
10
11 (5) At the end of section 148 insert:
12
13 (2) For the purposes of this Chapter, a land asset referred
14 to in paragraph (b), (c) or (d) of the definition of land
15 asset in subsection (1) is taken to be a land asset in
16 Western Australia.
17
18 57. Section 149 amended
19 (1) In section 149(1):
20 (a) delete "to land" and insert:
21
22 to land assets, chattels, or land assets and chattels,
23
24 (b) in paragraph (a) delete "land," and insert:
25
26 land assets, chattels, or land assets and chattels,
27
28 (c) in paragraph (b) delete "land" and insert:
29
30 land assets, chattels, or land assets and chattels,
31
page 56
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 58
1 (2) Delete section 149(2A) to (4) and insert:
2
3 (2) In determining the entitlement of an entity to land
4 assets, chattels, or land assets and chattels, for the
5 purposes of this Chapter --
6 (a) an entity that is a partnership is taken to be
7 entitled to land assets or chattels if the
8 partnership property is or includes those land
9 assets or chattels; and
10 (b) an entity that is a unit trust scheme or the
11 trustee of a discretionary trust is taken to be
12 entitled to land assets or chattels if the trust
13 property is or includes those land assets or
14 chattels.
15
16 Note: The heading to amended section 149 is to read:
17 Determining entitlement to land assets and chattels
18 58. Section 149A inserted
19 After section 149 insert:
20
21 149A. Determining entitlement to land assets: fixtures and
22 mining tenement fixtures
23 (1) In this section --
24 mining tenement fixture, in relation to a mining
25 tenement, means a thing that --
26 (a) under the authority (whether direct or indirect)
27 of the mining tenement, is fixed to land that is
28 the subject of the mining tenement; and
29 (b) would be part of that land as a fixture if the
30 mining tenement were a freehold estate in the
31 subject land.
page 57
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 59
1 (2) In determining the entitlement of an entity to a land
2 asset that is land, anything that is part of the land as a
3 fixture is to be taken into account even if the fixture is,
4 or purports to be, the subject of an entitlement separate
5 from the ownership of the rest of the land.
6 (3) In determining the entitlement of an entity to a land
7 asset that is a mining tenement or an estate or interest
8 in a mining tenement (a mining tenement land asset),
9 anything that is a mining tenement fixture in relation to
10 the mining tenement is to be taken into account even if
11 the mining tenement fixture is, or purports to be, the
12 subject of an entitlement separate from the ownership
13 of the rest of the mining tenement land asset.
14 (4) Subsection (2) or (3) (whichever is relevant) does not
15 apply for the purposes of determining the land assets to
16 which an entity is entitled in relation to an acquisition
17 if the fixture or the mining tenement fixture would,
18 apart from that subsection, be taken into account
19 separately in relation to that acquisition in determining
20 the land assets to which that entity or another entity is
21 entitled.
22 (5) In this section, a reference to land does not include
23 anything that is land under section 3A(1)(b), (c), (f) or
24 (g).
25
26 59. Section 150 amended
27 In section 150:
28 (a) delete "Section 36 applies," and insert:
29
30 Sections 36 and 36A apply,
31
page 58
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 60
1 (b) after "land" insert:
2
3 assets
4
5 Note: The heading to amended section 150 is to read:
6 Unencumbered value of land assets or chattels
7 60. Section 152 amended
8 (1) In section 152(2) delete "this extent, namely that the trustee of a
9 discretionary trust or a partnership may be a linked entity under
10 section 156," and insert:
11
12 the extent set out in subsection (3),
13
14 (2) After section 152(2) insert:
15
16 (3) The trustee of a discretionary trust or a partnership may
17 be --
18 (a) an entity in an ownership chain referred to in
19 section 154A (other than the main entity
20 referred to in that section); or
21 (b) an entity referred to in section 154B; or
22 (c) a linked entity under section 156; or
23 (d) a relevant entity referred to in
24 section 156A(1)(b)(i).
25
26 61. Section 153 amended
27 (1) In section 153(1) after "an interest" insert:
28
29 (other than a reference to an indirect interest)
30
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 62
1 (2) In section 153(3) delete "section 159." and insert:
2
3 sections 153A and 153B.
4
5 62. Sections 153A and 153B inserted
6 After section 153 insert:
7
8 153A. References to interest in, or held by, trustee of
9 discretionary trust
10 For the purposes of section 154A, if a trustee of a
11 discretionary trust is an entity in an ownership chain
12 referred to in that section --
13 (a) an entity has an interest in the trustee of the
14 discretionary trust if the entity is a potential
15 beneficiary under the trust; and
16 (b) the trustee of the discretionary trust has an
17 interest in an entity if the trust property is or
18 includes the interest; and
19 (c) the percentage of the interest that the entity
20 immediately above the trustee of the
21 discretionary trust in the ownership chain has in
22 the trustee of the discretionary trust is taken to
23 be --
24 (i) a 100% interest; or
25 (ii) if the Commissioner decides in a
26 particular case that the operation of
27 subparagraph (i) would be
28 inequitable -- an interest of some other
29 percentage, or no interest, as determined
30 by the Commissioner.
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1 153B. References to interest in, or held by, partnership
2 For the purposes of section 154A, if a partnership is an
3 entity in an ownership chain referred to in that
4 section --
5 (a) an entity has an interest in the partnership if the
6 entity is a partner in the partnership or, in the
7 case of a unit trust scheme, the trustee, as
8 trustee of the scheme, is a partner in the
9 partnership; and
10 (b) the partnership has an interest in an entity if the
11 partnership property is or includes the interest;
12 and
13 (c) the percentage of the interest that the entity
14 immediately above the partnership in the
15 ownership chain has in the partnership is taken
16 to be the greater of the following --
17 (i) the percentage of the capital of the
18 partnership that the entity has
19 contributed or is required to contribute;
20 (ii) the percentage of the losses of the
21 partnership that the entity is required to
22 bear.
23
24 63. Section 154 amended
25 (1) In section 154(3) delete "section 158 or 159" and insert:
26
27 section 153A(c) or 153B(c)
28
29 (2) In section 154(6)(d) delete "section 163 or 164," and insert:
30
31 section 163,
32
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s. 64
1 Note: The heading to amended section 154 is to read:
2 Calculating interest in entity
3 64. Sections 154A and 154B inserted
4 At the end of Chapter 3 Part 3 insert:
5
6 154A. Calculating total direct or indirect interest in entity
7 (1) This section applies where it is necessary in relation to
8 an acquisition of an interest in an entity (the main
9 entity) to calculate the total direct or indirect interest
10 that one entity (a higher entity) has in another entity (a
11 lower entity).
12 (2) A higher entity has a direct or indirect interest in a
13 lower entity if there are 1 or more ownership chains
14 between the higher entity and the lower entity.
15 (3) An ownership chain exists if --
16 (a) the higher entity has an interest as defined in
17 whichever of section 153, 153A or 153B is
18 applicable (a direct interest) in the lower entity;
19 or
20 (b) there is a series of at least 3 entities, starting
21 with the higher entity and ending with the
22 lower entity, each of which successively has a
23 direct interest in the next.
24 (4) The percentage of the interest that a higher entity has in
25 a lower entity through a particular ownership chain
26 is --
27 (a) for an ownership chain referred to in
28 subsection (3)(a) -- the percentage of the
29 higher entity's direct interest in the lower entity
30 calculated under whichever of section 153A(c),
31 153B(c) or 154 is applicable; or
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Duties Act 2008 amended Part 2
s. 64
1 (b) for an ownership chain referred to in
2 subsection (3)(b) -- the percentage calculated
3 by multiplying the percentage of the higher
4 entity's direct interest in the entity immediately
5 below it in the ownership chain by the
6 percentage of the direct interest that each entity
7 in the ownership chain between the higher
8 entity and the lower entity has in the entity
9 immediately below it in the ownership chain.
10 (5) The percentage of the total direct or indirect interest
11 that a higher entity has in a lower entity is the
12 aggregate of the percentage interests calculated under
13 subsection (4) for each ownership chain between the
14 higher entity and the lower entity.
15 154B. Determining interest in entity: uncompleted
16 agreements
17 In determining the interest that an entity has in another
18 entity for the purposes of section 154A, 156, or
19 156A --
20 (a) if the entity has entered into an agreement to
21 acquire an interest in the other entity, the
22 agreement is to be regarded as having been
23 completed even if it has not yet been
24 completed; and
25 (b) if the entity has entered into an agreement to
26 dispose of an interest in the other entity but the
27 agreement has not yet been completed, the
28 agreement is to be disregarded.
29
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 65
1 65. Section 155 amended
2 (1) In section 155(1) delete "section 163 or 164." and insert:
3
4 section 163.
5
6 (2) In section 155(2):
7 (a) delete "A corporation" and insert:
8
9 An entity
10
11 (b) in paragraph (a) delete "land in Western Australia or an
12 entity linked to the corporation" and insert:
13
14 land assets in Western Australia or an entity linked to
15 the entity
16
17 (3) Delete section 155(3) and (4) and insert:
18
19 (3) An entity to which subsection (2) does not apply is a
20 landholder if --
21 (a) immediately before the acquisition, it is entitled
22 to land assets, chattels, or land assets and
23 chattels, in Western Australia or an entity
24 linked to the entity is so entitled; and
25 (b) the acquisition is part of a relevant arrangement
26 under subsection (4).
27 (4) An acquisition of an interest in an entity (the relevant
28 entity) is part of a relevant arrangement for the
29 purposes of subsection (3)(b) if --
30 (a) there are 1 or more acquisitions of interests in
31 1 or more other entities (the other entities),
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s. 65
1 which may occur before or after the acquisition
2 of the interest in the relevant entity; and
3 (b) the acquisition of the interest in the relevant
4 entity and the acquisitions of the interests in the
5 other entities together form, evidence, give
6 effect to or arise from what is, substantially one
7 arrangement; and
8 (c) either or both of the following applies --
9 (i) at least 1 of the other entities is, at the
10 time the acquisition of the interest in
11 that entity occurs, a landholder to which
12 subsection (2) applies;
13 (ii) the total value of all of the entitlements
14 to land assets in Western Australia
15 referred to in subsection (4A) is
16 $2 000 000 or more.
17 (4A) For the purposes of subsection (4)(c)(ii), the total value
18 of the following entitlements is to be determined --
19 (a) the entitlements to land assets in Western
20 Australia, immediately before the acquisition of
21 the interest in the relevant entity, of the relevant
22 entity and each entity linked to the relevant
23 entity;
24 (b) for each of the other entities -- the entitlements
25 to land assets in Western Australia,
26 immediately before the acquisition of the
27 interest in that other entity, of that other entity
28 and each entity linked to that other entity.
29
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s. 66
1 (4) In section 155(5):
2 (a) delete paragraph (a) and insert:
3
4 (a) land assets to which an entity is entitled are to
5 be valued at their unencumbered value; and
6
7 (b) in paragraph (b) after "land" insert:
8
9 assets
10
11 (5) After section 155(5) insert:
12
13 (6) An entity that, under subsection (3), is a landholder in
14 relation to an acquisition is taken to be a landholder in
15 relation to that acquisition even if the acquisition does
16 not become part of a relevant arrangement referred to
17 in subsection (4) until after the acquisition occurs.
18
19 66. Section 156 amended
20 (1) In section 156(1) delete "section 155(2)(a) or (3)(a)." and insert:
21
22 section 155.
23
24 (2) In section 156(2) delete "an ownership chain" and insert:
25
26 a linkage chain
27
28 (3) In section 156(3) delete "An ownership chain" and insert:
29
30 A linkage chain
31
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 67
1 (4) Delete section 156(4) to (6) and insert:
2
3 (4) An entity is linked to another entity if --
4 (a) where the other entity is a listed corporation or
5 a listed unit trust scheme -- it has an interest in
6 the other entity of at least 90%; or
7 (b) in any other case -- it has a total direct or
8 indirect interest in the other entity, calculated
9 under section 154A, of at least 50%.
10
11 (5) In section 156(7) delete "subsection (4), (5) or (6)." and insert:
12
13 subsection (4).
14
15 (6) Delete section 156(8).
16 67. Section 156A inserted
17 After section 156 insert:
18
19 156A. Linked entities: acquisitions forming one
20 arrangement
21 (1) Subsection (3) applies if --
22 (a) there are acquisitions (the related acquisitions)
23 of interests in 2 or more entities (the main
24 entities) that together form, evidence, give
25 effect to or arise from what is, substantially one
26 arrangement; and
27 (b) either --
28 (i) each of the main entities has a direct or
29 indirect interest (as referred to in
30 section 154A(2)) in an entity (the
31 relevant entity) that is not a listed
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s. 67
1 corporation or listed unit trust scheme;
2 or
3 (ii) one of the main entities (the relevant
4 entity) is an entity that is not a listed
5 corporation or listed unit trust scheme
6 and each of the other main entities has a
7 direct or indirect interest (as referred to
8 in section 154A(2)) in the relevant
9 entity;
10 and
11 (c) there is at least 1 main entity that has a total
12 direct or indirect interest in the relevant entity,
13 calculated under section 154A, that is less than
14 50%; and
15 (d) the aggregated direct or indirect interest in the
16 relevant entity determined under subsection (2)
17 is at least 50%.
18 (2) The aggregated direct or indirect interest for the
19 purposes of subsection (1)(d) is --
20 (a) if subsection (1)(b)(i) applies, the aggregate of
21 the total direct or indirect interests, calculated
22 under section 154A, that each of the main
23 entities has in the relevant entity; or
24 (b) if subsection (1)(b)(ii) applies, the aggregate
25 of --
26 (i) the interests in the relevant entity
27 acquired by each related acquisition that
28 is an acquisition of an interest in the
29 relevant entity; and
30 (ii) the total direct or indirect interests,
31 calculated under section 154A, that each
32 of the main entities (other than the
33 relevant entity) has in the relevant
34 entity.
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s. 68
1 (3) The relevant entity is taken, in relation to a related
2 acquisition of an interest in a main entity to which
3 subsection (1)(c) applies, to be linked to that main
4 entity under section 156(2).
5 (4) A relevant entity that is linked to a main entity for the
6 purposes of an acquisition because of subsection (3) is
7 taken to be linked in relation to that acquisition even if
8 that subsection does not become applicable in relation
9 to the acquisition until after the acquisition occurs.
10 (5) For the purposes of this section, the direct or indirect
11 interest, or total direct or indirect interest, that a main
12 entity has in the relevant entity is to be determined
13 immediately after the related acquisition of an interest
14 in that main entity.
15
16 68. Section 157 amended
17 (1) In section 157(1) after "land" insert:
18
19 assets
20
21 (2) In section 157(2):
22 (a) after "land" insert:
23
24 assets
25
26 (b) delete "interest in the linked entity." and insert:
27
28 total direct or indirect interest in the linked entity
29 calculated under section 154A.
30
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 69
1 (3) Delete section 157(3) and (4).
2 Note: The heading to amended section 157 is to read:
3 Value of land assets of linked entity for s. 155
4 69. Sections 158 and 159 deleted
5 Delete sections 158 and 159.
6 70. Section 160 amended
7 After section 160(3) insert:
8
9 (4) This section is subject to section 160A.
10
11 Note: The heading to amended section 160 is to read:
12 How person acquires interest in entity
13 71. Section 160A inserted
14 At the end of Chapter 3 Part 5 Division 1 insert:
15
16 160A. Acquisition of interest by merger of corporations
17 (1) If a corporation (company A) has an interest in an
18 entity and there is a merger of company A with and
19 into another corporation (company B) in circumstances
20 where neither subsection (2) nor subsection (3) applies,
21 company B is taken to acquire that interest.
22 (2) If 2 or more corporations (the merging corporations)
23 merge in circumstances where another corporation
24 (company C) results as a consequence of the merger,
25 and any of the merging corporations has an interest in
26 an entity, company C is taken to acquire that interest.
27 (3) If 2 or more corporations (the merging corporations)
28 merge with and into each other in circumstances where
29 each of the merging corporations continues in
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s. 72
1 existence, and any of the merging corporations has an
2 interest in an entity, the merging corporations are taken
3 to acquire, jointly, 50% of that interest.
4
5 72. Section 161 amended
6 In section 161 delete the definition of significant interest and
7 insert:
8
9 significant interest, in a landholder, means --
10 (a) if the landholder is a listed landholder -- an
11 interest of at least 90%; or
12 (b) otherwise -- an interest of at least 50%.
13
14 73. Section 162 amended
15 (1) In section 162(1):
16 (a) delete "sections 163 and 164" and insert:
17
18 section 163
19
20 (b) in paragraph (h) delete "form or arise from substantially
21 one transaction or one series of transactions;" and insert:
22
23 form, evidence, give effect to or arise from what is,
24 substantially one arrangement;
25
26 (2) After section 162(1) insert:
27
28 (1A) Subsection (1)(h) and (i) do not apply --
29 (a) in circumstances where the acquisitions result
30 from a public float; or
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Part 2 Duties Act 2008 amended
s. 73
1 (b) in prescribed circumstances.
2
3 (3) In section 162(2):
4 (a) delete "persons, other than related corporations," and
5 insert:
6
7 persons
8
9 (b) delete "sections 163 and 164." and insert:
10
11 section 163.
12
13 (4) Delete section 162(3) and insert:
14
15 (2A) The Commissioner cannot make a determination under
16 subsection (2) in relation to persons or entities that are
17 related persons under subsection (1)(c), (h) or (i).
18 (3) This subsection applies to persons if their interests in
19 the entity --
20 (a) were acquired independently and are, and will
21 be, employed independently; and
22 (b) were not acquired for a common purpose and
23 are not, and will not be, employed for a
24 common purpose.
25
26 Note: The heading to amended 162 is to read:
27 Related persons for s. 163
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 74
1 74. Sections 163 and 164 replaced
2 Delete sections 163 and 164 and insert:
3
4 163. Relevant acquisitions
5 (1) An acquisition by a person (the acquirer) of an interest
6 in an entity that is a landholder in relation to the
7 acquisition is a relevant acquisition in any of the
8 following circumstances --
9 (a) if --
10 (i) immediately before the acquisition, the
11 acquirer does not have a significant
12 interest in the landholder; and
13 (ii) immediately after the acquisition, the
14 acquirer has a significant interest in the
15 landholder;
16 (b) if --
17 (i) immediately before the acquisition, the
18 aggregated group interest in the
19 landholder does not amount to a
20 significant interest; and
21 (ii) immediately after the acquisition, the
22 aggregated group interest in the
23 landholder amounts to a significant
24 interest;
25 (c) if --
26 (i) immediately before the acquisition, the
27 acquirer has a significant interest in the
28 landholder; and
29 (ii) as a result of the acquisition, the
30 acquirer's interest in the landholder
31 increases;
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 75
1 (d) if --
2 (i) immediately before the acquisition, the
3 aggregated group interest in the
4 landholder amounts to a significant
5 interest; and
6 (ii) as a result of the acquisition, the
7 aggregated group interest in the
8 landholder increases.
9 (2) In subsection (1) --
10 aggregated group interest means the aggregate of --
11 (a) the interest (if any) that the acquirer has in the
12 landholder; and
13 (b) if 1 or more related persons have an interest in
14 the landholder -- all of those interests.
15
16 75. Sections 167 and 168 replaced
17 Delete sections 167 and 168 and insert:
18
19 167. Exemption or reduction of duty if nominal duty
20 would be chargeable on transfer
21 (1) In this section --
22 acquiring person, in relation to an acquisition, means
23 the person making the acquisition;
24 notional transfer, in relation to an acquisition, means a
25 notional transaction consisting of the transfer, at the
26 time of the acquisition, by the relinquishing person to
27 the acquiring person of the relevant land assets, as if
28 the relevant land assets were those of the relinquishing
29 person;
30 relevant land assets, in relation to an acquisition of an
31 interest in a landholder, means the land assets to which
page 74
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 75
1 the landholder, and each linked entity in respect of the
2 landholder, are entitled;
3 relinquishing person, in relation to an acquisition,
4 means the person from whom the interest in the
5 landholder was acquired.
6 (2) This section applies to an acquisition of an interest in a
7 landholder if nominal duty would be chargeable, to any
8 extent, on the notional transfer in relation to the
9 acquisition.
10 (3) If only nominal duty would be chargeable on the
11 notional transfer, the acquisition is exempt.
12 (4) If nominal duty would be chargeable on the notional
13 transfer only to a particular extent, then despite Part 6
14 Division 5, the amount of duty chargeable in respect of
15 the acquisition is the amount of duty calculated under
16 that Division in respect of the acquisition reduced by
17 the same proportion as the proportion of the notional
18 transfer on which nominal duty would be chargeable.
19 (5) If the acquiring person did not acquire the interest in
20 the landholder from another person, the reference to the
21 relinquishing person in the definition of notional
22 transfer in subsection (1) is to be read (according to
23 what is relevant) as a reference to the or a person --
24 (a) whose interest in the landholder is decreased
25 because of the acquisition; or
26 (b) whose interest in the landholder decreased
27 resulting in the acquisition.
28 Note for this subsection:
29 An acquiring person may acquire an interest in a company
30 by the company issuing shares to the person, or buying
31 back shares of another person.
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 75
1 168. Exemption or reduction of duty if transfer duty
2 would not be chargeable
3 (1) In this section --
4 acquiring person, in relation to an acquisition, means
5 the person making the acquisition;
6 notional transfer, in relation to an acquisition, means a
7 notional transaction consisting of the transfer, at the
8 time of the acquisition, by the relinquishing person to
9 the acquiring person of the relevant land assets, as if
10 the relevant land assets were those of the relinquishing
11 person;
12 relevant land assets, in relation to an acquisition of an
13 interest in a landholder, means the land assets to which
14 the landholder, and each linked entity in respect of the
15 landholder, are entitled;
16 relinquishing person, in relation to an acquisition,
17 means the person from whom the interest in the
18 landholder was acquired.
19 (2) This section applies to an acquisition of an interest in a
20 landholder if no transfer duty would be chargeable, or
21 transfer duty would be chargeable only to a particular
22 extent, on the notional transfer in relation to the
23 acquisition.
24 (3) If no transfer duty would be chargeable on the notional
25 transfer, the acquisition is exempt.
26 (4) If transfer duty would be chargeable on the notional
27 transfer only to a particular extent, then despite Part 6
28 Division 5, the amount of duty chargeable in respect of
29 the acquisition is the amount of duty calculated under
30 that Division in respect of the acquisition reduced by
31 the same proportion as the proportion of the notional
32 transfer on which no transfer duty would be
33 chargeable.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 76
1 (5) If the acquiring person did not acquire the interest in
2 the landholder from another person, the reference to the
3 relinquishing person in the definition of notional
4 transfer in subsection (1) is to be read (according to
5 what is relevant) as a reference to the or a person --
6 (a) whose interest in the landholder is decreased
7 because of the acquisition; or
8 (b) whose interest in the landholder decreased
9 resulting in the acquisition.
10 Note for this subsection:
11 An acquiring person may acquire an interest in a company
12 by the company issuing shares to the person, or buying
13 back shares of another person.
14 (6) This section does not apply if --
15 (a) no transfer duty would be chargeable, or
16 transfer duty would be chargeable only to a
17 particular extent, on the notional transfer
18 because of an exemption or reduction under
19 Chapter 6; or
20 (b) section 171 or 194 applies to the acquisition.
21
22 76. Section 171 amended
23 (1) Delete section 171(1).
24 (2) In section 171(2):
25 (a) delete "in a corporation" and insert:
26
27 in a landholder
28
29 (b) after "uses land" insert:
30
31 assets
32
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 76
1 (c) in paragraph (a)(i) delete "land to which the corporation
2 or a linked entity in respect of the corporation" and
3 insert:
4
5 land assets to which the landholder or a linked entity in
6 respect of the landholder
7
8 (d) in paragraph (a)(ii) delete "section 102(2), (3), (5)
9 and (6)" and insert:
10
11 section 102(2)
12
13 (e) in paragraph (b) delete "corporation, or a linked entity in
14 respect of the corporation, intends to continue to use the
15 land" and insert:
16
17 landholder, or a linked entity in respect of the
18 landholder, intends to continue to use the land assets
19
20 (3) After section 171(2) insert:
21
22 (2A) If the acquirer did not acquire the interest in the
23 landholder from another person, the reference in
24 subsection (2) to the person from whom the interest in
25 the landholder was acquired is to be read (according to
26 what is relevant) as a reference to the or a person --
27 (a) whose interest in the landholder is decreased
28 because of the acquisition; or
29 (b) whose interest in the landholder decreased
30 resulting in the acquisition.
31 Note for this subsection:
32 An acquirer may acquire an interest in a company by the
33 company issuing shares to the person, or buying back
34 shares of another person.
35
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 77
1 (4) In section 171(3) after "subsection (2)," insert:
2
3 a land asset that is
4
5 Note: The heading to amended section 171 is to read:
6 Exemption of acquisition by family member of interest in
7 landholder engaged in primary production
8 77. Section 172 amended
9 (1) In section 172(1):
10 (a) delete "the corporation concerned, or a linked entity in
11 respect of the corporation," and insert:
12
13 the landholder concerned, or a linked entity in respect of
14 the landholder,
15
16 (b) in paragraphs (a) and (b) delete "land in Western
17 Australia that is" and insert:
18
19 land assets in Western Australia that are
20
21 (2) In section 172(2)(b) delete "land referred to in subsection (1)(b)
22 bears to the value of the corporation" and insert:
23
24 land assets referred to in subsection (1)(b) bears to the value of
25 the landholder
26
27 Note: The heading to amended 172 is to read:
28 Calculation of duty where some land assets of landholder not
29 used for primary production
page 79
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 78
1 78. Section 173 amended
2 (1) In section 173(1):
3 (a) in paragraph (a) delete "a corporation" and insert:
4
5 an entity that is a landholder
6
7 (b) in paragraph (c)(i) delete "corporation" and insert:
8
9 entity
10
11 (c) in paragraph (c)(ii) delete "corporation or a linked entity
12 in respect of the corporation, is using solely or
13 dominantly in the business of primary production any of
14 the land" and insert:
15
16 entity, or a linked entity in respect of the entity, is using
17 solely or dominantly in the business of primary
18 production any of the land assets
19
20 (2) In section 173(2)(a) after "that is not" insert:
21
22 the transferor or
23
24 (3) In section 173(4)(a) delete "corporation" and insert:
25
26 entity
27
page 80
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 79
1 79. Section 174 amended
2 In section 174(1):
3 (a) in paragraphs (a) and (b) delete "corporation" and insert:
4
5 landholder
6
7 (b) in paragraph (c) delete "corporation, or a linked entity in
8 respect of the corporation, is using solely or dominantly
9 in the business of primary production any of the land"
10 and insert:
11
12 landholder, or a linked entity in respect of the
13 landholder, is using solely or dominantly in the business
14 of primary production any of the land assets
15
16 (c) in paragraph (d) delete "corporation" and insert:
17
18 landholder
19
20 80. Section 176 amended
21 (1) Delete section 176(1) and (2) and insert:
22
23 (1) In making an assessment of duty in relation to an
24 acquisition of an interest in an entity, the time when
25 that acquisition occurs is, for the purposes of this
26 Chapter but subject to section 173(4)(c) and 204G, to
27 be determined under this section.
28 (2) If an agreement is made for the making of the
29 acquisition, whether conditional or not, and
30 subsection (3) does not apply to the agreement --
31 (a) the acquisition is taken to occur when the
32 agreement is made; and
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 81
1 (b) until the agreement is completed, the interests
2 of persons in the entity are to be determined for
3 the purposes of this Chapter as if the agreement
4 had been completed.
5 Notes for this subsection:
6 1. Section 195C provides for the assessment of duty if an
7 agreement referred to in this subsection is terminated
8 before the assessment is made.
9 2. Section 196 provides for the reassessment of duty if an
10 agreement referred to in this subsection is terminated after
11 an assessment of duty is made.
12
13 (2) After section 176(3) insert:
14
15 (3A) If the acquisition results from a merger of corporations
16 in accordance with section 160A, the acquisition
17 occurs when the merger is completed.
18
19 (3) In section 176(4) delete "subsections (2) and (3)" and insert:
20
21 subsections (2), (3) and (3A)
22
23 81. Section 177 amended
24 In section 177(2) delete "section 176," and insert:
25
26 sections 154B and 176,
27
28 Note: The notes at the end of section 177 are to read:
29 1. Sections 195B and 195C provide for the assessment of
30 duty if a deemed agreement is not completed.
31 2. Sections 195 and 196 provide for the reassessment of duty
32 if a deemed agreement is not completed.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 82
1 82. Section 179 amended
2 In section 179(2)(d) delete "any person taken into account under
3 section 163 or 164 as being related to the acquirer for the
4 purposes of the acquisition," and insert:
5
6 any person that is a related person in respect of the acquirer and
7 has an interest in the landholder immediately after the relevant
8 acquisition,
9
10 83. Section 180 amended
11 Delete section 180(2)(b) and insert:
12
13 (b) any person that is a related person in respect of
14 a person referred to in paragraph (a) and has an
15 interest in the entity immediately after the
16 acquisition; or
17
18 84. Section 185 amended
19 In section 185:
20 (a) delete "interests" and insert:
21
22 interests, immediately after the relevant acquisition,
23
24 (b) delete paragraph (b) and insert:
25
26 (b) each person that is a related person in respect of
27 the acquirer and has an interest in the
28 landholder.
29
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 85
1 85. Section 186 amended
2 (1) Delete section 186(1)(a) and (b) and insert:
3
4 (a) the unencumbered value of the land assets,
5 chattels, or land assets and chattels, in Western
6 Australia (whichever is relevant) to which the
7 landholder is entitled; and
8 (b) the same percentage of the unencumbered value
9 of the land assets, chattels, or land assets and
10 chattels, in Western Australia (whichever is
11 relevant) to which any linked entity in respect
12 of the landholder is entitled as the percentage of
13 the landholder's total direct or indirect interest
14 in the linked entity calculated under
15 section 154A.
16
17 (2) Delete section 186(2A).
18 86. Section 187 amended
19 In section 187(1)(a) after "a landholder" insert:
20
21 after a relevant acquisition
22
23 87. Section 189 amended
24 (1) In section 189(2):
25 (a) after "landholder concerned" insert:
26
27 after the relevant acquisition referred to in section 188,
28 other than the interest acquired by that relevant
29 acquisition,
30
31 (b) in paragraph (b) delete "acquisition, but only to the
32 extent to which the interest is held immediately before
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Duties Act 2008 amended Part 2
s. 88
1 the relevant acquisition referred to in section 188; or"
2 and insert:
3
4 acquisition; or
5
6 (c) in paragraph (c) after "land" insert:
7
8 assets
9
10 (2) In section 189(4)(a) delete "section 163; and" and insert:
11
12 section 163(1)(a) or (b); and
13
14 88. Section 193 amended
15 In section 193(1) delete "section 164" and insert:
16
17 section 163(1)(c) or (d)
18
19 89. Section 195A amended
20 (1) In section 195A(1) and (2) after "statement" (each occurrence)
21 insert:
22
23 or agreement
24
25 (2) In section 195A(5)(a) and (b) after "land" insert:
26
27 assets
28
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 90
1 90. Chapter 3 Part 6 Division 6 heading replaced
2 Delete the heading to Chapter 3 Part 6 Division 6 and insert:
3
4 Division 6 -- Assessment or reassessment of liability for
5 landholder duty if uncompleted agreements terminated
6 or completed
7
8 91. Sections 195B and 195C inserted
9 At the beginning of Chapter 3 Part 6 Division 6 insert:
10
11 195B. Assessment of duty where s. 149(1) or 154B applied
12 at acquisition time
13 (1) Subsection (2) applies if --
14 (a) at the time an acquisition (the main
15 acquisition) of an interest in an entity (the
16 main entity) occurs --
17 (i) there is an agreement to which
18 section 149(1)(a) applies in determining
19 the entitlement to land assets, chattels,
20 or land assets and chattels, of the main
21 entity or a linked entity in respect of the
22 main entity; or
23 (ii) there is an agreement to which
24 section 154B(a) applies in determining
25 the interest that the main entity, or a
26 linked entity in respect of the main
27 entity, has in another entity;
28 and
29 (b) after the main acquisition occurs but before an
30 assessment is made in relation to the main
31 acquisition, the agreement has been rescinded,
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s. 91
1 annulled or otherwise terminated without being
2 completed.
3 (2) Section 149(1)(a) or 154B(a) (whichever is relevant)
4 applies to the agreement for the purposes of making an
5 assessment in relation to the main acquisition despite
6 the rescission, annulment or other termination of the
7 agreement, unless the Commissioner is satisfied that
8 the rescission, annulment or other termination of the
9 agreement was not part of a scheme or arrangement
10 under which the object of the agreement has been or
11 may be achieved in another way.
12 (3) Subsection (4) applies if --
13 (a) at the time an acquisition (the main
14 acquisition) of an interest in an entity (the
15 main entity) occurs --
16 (i) there is an agreement to which
17 section 149(1)(b) applies in determining
18 the entitlement to land assets, chattels,
19 or land assets and chattels, of the main
20 entity or a linked entity in respect of the
21 main entity; or
22 (ii) there is an agreement to which
23 section 154B(b) applies in determining
24 the interest that the main entity, or a
25 linked entity in respect of the main
26 entity, has in another entity;
27 and
28 (b) after the main acquisition occurs but before an
29 assessment is made in relation to the main
30 acquisition, the agreement is completed.
31 (4) Despite section 149(1)(b) or 154B(b) (whichever is
32 relevant), the agreement is not to be disregarded for the
33 purposes of making an assessment in relation to the
34 main acquisition.
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s. 92
1 195C. Assessment of duty where s. 176(2) applied at
2 acquisition time
3 (1) This section applies if --
4 (a) under section 176(2), an acquisition is taken to
5 occur when the agreement for the acquisition is
6 made; and
7 (b) after the agreement is made but before an
8 assessment is made in relation to the
9 acquisition, the agreement has been rescinded,
10 annulled or otherwise terminated without being
11 completed.
12 (2) Section 176(2) applies to the terminated agreement,
13 despite the rescission, annulment or other termination
14 of the agreement, unless the Commissioner is satisfied
15 that the rescission, annulment or other termination of
16 the agreement was not part of a scheme or arrangement
17 under which the object of the agreement has been or
18 may be achieved in another way.
19 (3) If the Commissioner is satisfied as described in
20 subsection (2), section 176(2) ceases to apply to the
21 terminated agreement.
22
23 92. Section 195 amended
24 (1) In section 195(1):
25 (a) in paragraph (a)(i) delete "land" and insert:
26
27 land assets, chattels, or land assets and chattels
28
29 (b) in paragraph (a)(ii) delete "section 156(8)(a)," and
30 insert:
31
32 section 154B(a),
33
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Duties Act 2008 amended Part 2
s. 93
1 (2) In section 195(2):
2 (a) in paragraph (a)(i) delete "land" and insert:
3
4 land assets, chattels, or land assets and chattels
5
6 (b) in paragraph (a)(ii) delete "section 156(8)(b)," and
7 insert:
8
9 section 154B(b),
10
11 Note: The heading to amended section 195 is to read:
12 Reassessment of duty where s. 149(1) or 154B applied
13 93. Section 196 replaced
14 Delete section 196 and insert:
15
16 196. Reassessment of duty where s. 176(2) applied
17 (1) A reassessment of duty in respect of a relevant
18 acquisition is required if --
19 (a) an assessment of duty is made on an acquisition
20 that, under section 176(2), is taken to have
21 occurred when the agreement for the
22 acquisition was made; and
23 (b) since that assessment, the agreement has been
24 rescinded, annulled or otherwise terminated
25 without being completed; and
26 (c) had the acquisition not been taken to have
27 occurred when the agreement for the
28 acquisition was made as mentioned in
29 paragraph (a), the liability for duty in respect of
30 the relevant acquisition would not have arisen.
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s. 94
1 (2) On application made by a person that has paid or is
2 liable to pay the duty, if subsection (1) applies, the
3 Commissioner is to make a reassessment of the duty
4 disregarding that terminated agreement.
5 (3) Section 176(2) does not apply to a terminated
6 agreement for the purposes of a reassessment required
7 under subsection (1).
8
9 94. Section 197 amended
10 In section 197 delete "196(3)," and insert:
11
12 196(2),
13
14 95. Section 197A inserted
15 After section 197 insert:
16
17 197A. Expired put and call options taken to be terminated
18 (1) In this section --
19 call option means the call option of a simultaneous put
20 and call option referred to in section 177(2) or (3);
21 put option means the put option of a simultaneous put
22 and call option referred to in section 177(2) or (3).
23 (2) For the purposes of this Division and section 200, an
24 agreement that is taken to exist under section 177(2)
25 or (3) is taken to be terminated without being
26 completed if --
27 (a) the call option and the put option both expire
28 without being exercised; or
29 (b) the call option and the put option are both
30 rescinded or cancelled by agreement; or
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s. 96
1 (c) either the call option or the put option is
2 rescinded or cancelled by agreement and the
3 other expires without being exercised.
4 (3) Subsection (2) does not apply if the call option has
5 been assigned or further assigned as referred to in
6 section 177(3).
7 (4) If a reassessment is required under section 195 or 196
8 as a result of an agreement that was taken to exist
9 under section 177(2) or (3) being taken to be
10 terminated under subsection (2) of this section, the
11 Taxation Administration Act section 17 applies as if
12 the original assessment had been made as soon as
13 subsection (2) of this section became applicable.
14
15 96. Section 200 amended
16 (1) In section 200(2):
17 (a) in paragraph (b) delete "section 201." and insert:
18
19 section 201; or
20
21 (b) after paragraph (b) insert:
22
23 (c) the agreement for the making of the acquisition
24 has been lodged in accordance with
25 subsection (2A).
26
27 (2) After section 200(2) insert:
28
29 (2A) If there is an agreement for the making of the
30 acquisition, the agreement may be lodged instead of an
31 acquisition statement.
32
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Part 2 Duties Act 2008 amended
s. 96
1 (3) In section 200(3) after "subsection (2)" insert:
2
3 or agreement under subsection (2A)
4
5 (4) In section 200(4) after "acquisition statement" insert:
6
7 or agreement
8
9 (5) In section 200(5):
10 (a) after "acquisition statement" insert:
11
12 or agreement
13
14 (b) in paragraph (a) delete "statement; and" and insert:
15
16 statement or agreement; and
17
18 (6) After section 200(5) insert:
19
20 (6) The obligation to lodge an acquisition statement under
21 subsection (2) or agreement under subsection (2A)
22 applies in relation to an acquisition even if the
23 agreement for the making of the acquisition has been
24 rescinded, annulled or otherwise terminated without
25 being completed, whether that rescission, annulment or
26 termination occurs before or after the expiry of the
27 allowed time applicable to the statement or agreement.
28
29 Note: The heading to amended section 200 is to read:
30 Acquisition statement or agreement to be lodged
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Duties Act 2008 amended Part 2
s. 97
1 97. Section 201 amended
2 In section 201(1)(a) delete "section 164" and insert:
3
4 section 163(1)(c) or (d)
5
6 98. Section 203 amended
7 Delete section 203(1) and insert:
8
9 (1) An acquisition statement must be in the approved form.
10
11 Note: The heading to amended section 203 is to read:
12 Form of acquisition statements
13 99. Section 204 amended
14 In section 204:
15 (a) delete "If an acquisition statement is not lodged in
16 accordance with section 200(2), 201(6) or 202(2), the
17 following persons commit an offence --" and insert:
18
19 The following persons commit an offence if there is a
20 contravention of section 200(2), 201(6) or 202(2) in
21 relation to an acquisition --
22
23 (b) in paragraph (d) delete "taken into account under
24 section 163 or 164 as being related to the acquirer for
25 the purposes of the acquisition," and insert:
26
27 that is a related person in respect of the acquirer and has
28 an interest in the landholder concerned immediately
29 after the acquisition,
30
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 100
1 100. Chapter 3 Part 7 inserted
2 At the end of Chapter 3 insert:
3
4 Part 7 -- Application of this Chapter to certain
5 acquisitions
6 Division 1 -- Rights relating to fixed infrastructure
7 204A. When fixed infrastructure access rights are taken
8 into account in determining entitlement to land
9 assets
10 (1) In determining, in relation to an acquisition of an
11 interest in an entity (the main entity), the entitlement to
12 land assets of the main entity, or a linked entity in
13 respect of the main entity, the value of any fixed
14 infrastructure access right to which the main entity or
15 linked entity is entitled is not to be taken into account
16 unless subsection (2) applies to the fixed infrastructure
17 access right.
18 (2) This subsection applies to the fixed infrastructure
19 access right if the main entity, or an entity that is
20 associated with the main entity under section 204D, is
21 entitled to any of the following --
22 (a) fixed infrastructure (relevant fixed
23 infrastructure) to which the fixed infrastructure
24 access right relates;
25 (b) an estate or interest in relevant fixed
26 infrastructure;
27 (c) a fixed infrastructure control right that relates to
28 relevant fixed infrastructure.
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s. 100
1 (3) The entitlement referred to in subsection (2) is to be
2 determined --
3 (a) for the main entity or an associated entity
4 referred to in section 204D(2)(a), (b) or (c) --
5 when the acquisition referred to in
6 subsection (1) of this section occurs; or
7 (b) for an associated entity referred to in
8 section 204D(2)(d) or (e) -- when the
9 acquisition referred to in section 204D(2)(d)(i)
10 occurs.
11 (4) The value of a fixed infrastructure access right that is
12 to be taken into account for the purposes of an
13 acquisition because subsection (2) applies is to be
14 taken into account in relation to that acquisition even if
15 that subsection does not become applicable until after
16 the acquisition occurs.
17 204B. When fixed infrastructure statutory licences are
18 treated as land assets in calculating duty
19 (1) A fixed infrastructure statutory licence is to be treated
20 as if it were a land asset for the purposes of calculating
21 duty in respect of a relevant acquisition under
22 section 186 if --
23 (a) the landholder, or a linked entity in respect of
24 the landholder, is entitled to the fixed
25 infrastructure statutory licence; and
26 (b) the landholder, or an entity that is associated
27 with the landholder under section 204D, is
28 entitled to any of the following --
29 (i) fixed infrastructure (relevant fixed
30 infrastructure) to which the fixed
31 infrastructure statutory licence relates;
32 (ii) an estate or interest in relevant fixed
33 infrastructure;
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s. 100
1 (iii) a fixed infrastructure control right that
2 relates to relevant fixed infrastructure.
3 (2) For the purposes of subsection (1)(a), a landholder or
4 linked entity is taken to be entitled to the fixed
5 infrastructure statutory licence if --
6 (a) the landholder or linked entity held the fixed
7 infrastructure statutory licence immediately
8 before the relevant acquisition; and
9 (b) as a result of the relevant acquisition, the fixed
10 infrastructure statutory licence is cancelled or
11 surrendered by operation of law; and
12 (c) there is an agreement, arrangement or
13 understanding relating to the acquisition under
14 which, after the acquisition, the fixed
15 infrastructure statutory licence, or another fixed
16 infrastructure statutory licence of that kind, will
17 be issued, granted or given to the landholder or
18 an entity that is associated with the landholder
19 under section 204D.
20 (3) The entitlement referred to in subsection (1)(b) is to be
21 determined --
22 (a) for the landholder or an associated entity
23 referred to in section 204D(2)(a), (b) or (c) --
24 when the relevant acquisition referred to in
25 subsection (1) of this section occurs; or
26 (b) for an associated entity referred to in
27 section 204D(2)(d) or (e) -- when the
28 acquisition referred to in section 204D(2)(d)(i)
29 occurs.
30 (4) A fixed infrastructure statutory licence that under
31 subsection (1) is to be treated as a land asset for the
32 purposes of section 186 in relation to an acquisition is
33 to be so treated even if subsection (1) does not become
34 applicable until after the acquisition occurs.
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s. 100
1 (5) A fixed infrastructure statutory licence to which
2 subsection (1) applies is also to be treated as a land
3 asset in relation to the relevant acquisition referred to
4 in that subsection for the purposes of sections 167, 168,
5 195A(5), 266B and 266C.
6 204C. Unencumbered value of fixed infrastructure
7 statutory licences treated as land assets
8 (1) Section 36 applies, with any appropriate modifications,
9 where it is necessary to determine the unencumbered
10 value of a fixed infrastructure statutory licence that
11 under section 204B(1) is to be treated as if it were a
12 land asset for the purposes of calculating duty in
13 respect of a relevant acquisition under section 186.
14 (2) The unencumbered value to be determined under
15 section 36 (as applied by subsection (1)) for a fixed
16 infrastructure statutory licence issued, granted or given
17 under a law of the Commonwealth is the
18 unencumbered value of that licence so far as it
19 authorises the ownership, control, operation or use of
20 fixed infrastructure.
21 204D. Associated entities for s. 204A and 204B
22 (1) This section applies where it is necessary to determine
23 for the purposes of section 204A(2) or 204B(1) or (2),
24 in relation to an acquisition, which entities are
25 associated with the main entity referred to in
26 section 204A(2), or the landholder referred to in
27 section 204B(1) or (2), as the case requires.
28 (2) The associated entities are as follows --
29 (a) a linked entity in respect of the main entity or
30 landholder;
31 (b) an entity (a higher entity) in respect of which
32 the main entity or landholder is a linked entity;
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s. 100
1 (c) another linked entity in respect of a higher
2 entity to which paragraph (b) applies;
3 (d) another entity if --
4 (i) there is an acquisition of an interest in
5 the entity, which may occur before or
6 after the acquisition referred to in
7 subsection (1); and
8 (ii) the acquisition referred to in
9 subsection (1) and the acquisition
10 referred to in subparagraph (i) together
11 form, evidence, give effect to, or arise
12 from what is, substantially one
13 arrangement;
14 (e) an entity that is a linked entity in respect of an
15 entity to which paragraph (d) applies in relation
16 to the acquisition referred to in paragraph (d)(i).
17 (3) A reference in subsection (2)(b) or (c) to a linked entity
18 is a reference to an entity that would be a linked entity
19 if, at the time of the acquisition referred to in
20 subsection (1), the higher entity referred to in
21 subsection (2)(b) or (c) were a main entity referred to
22 in section 156(1).
23 Division 2 -- Derivative mining rights
24 204E. Unencumbered value of mining tenement subject to
25 derivative mining right
26 (1) This section applies where it is necessary to determine,
27 in relation to an acquisition of an interest in an entity,
28 the unencumbered value of a land asset that is a mining
29 tenement in relation to which a derivative mining right
30 is in force.
31 (2) If the acquisition of the derivative mining right, on its
32 grant, is duty endorsed, the unencumbered value of the
33 mining tenement is to be determined, despite
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Duties Act 2008 amended Part 2
s. 100
1 section 36(1) as applied by section 150, having regard
2 to the effect of the derivative mining right on the value
3 of the mining tenement.
4 (3) Subsection (2) ceases to apply in relation to an
5 acquisition of an interest in an entity if, within
6 12 months after the acquisition, the derivative mining
7 right is surrendered for no consideration.
8 (4) If a surrender referred to in subsection (3) occurs, each
9 of the following persons must lodge a notice of the
10 surrender in the approved form within 2 months after
11 the day on which the surrender occurs --
12 (a) the entity referred to in subsection (1);
13 (b) the person that acquired the interest referred to
14 in subsection (1).
15 Penalty for this subsection: a fine of $20 000.
16 (5) Subject to the Taxation Administration Act section 17,
17 the Commissioner must make any reassessment
18 necessary as a result of the operation of subsection (3).
19 Division 3 -- Acquisitions forming one arrangement
20 204F. Acquisitions in 2 or more entities forming one
21 arrangement
22 (1) For the purposes of sections 155(4)(b), 156A(1)(a) and
23 204D(2)(d), unless the Commissioner is satisfied to the
24 contrary, acquisitions of interests in 2 or more entities
25 together form, evidence, give effect to or arise from
26 what is, substantially one arrangement if --
27 (a) the acquisitions have occurred within
28 12 months; and
29 (b) in respect of each of the acquisitions, the person
30 that acquires the interest is the same person
31 (whether the person is the only person that
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s. 100
1 acquires the interest or acquires the interest
2 with the same or different persons).
3 (2) Subsection (1) does not limit section 155(4)(b),
4 156A(1)(a) or 204D(2)(d).
5 204G. Modified application of s. 176 if entity becomes
6 landholder because of acquisitions forming one
7 arrangement
8 (1) This section modifies the application of section 176 in
9 relation to an acquisition (the main acquisition) of an
10 interest in an entity (the main entity) if --
11 (a) at the time the agreement for the main
12 acquisition is made, the main entity is not a
13 landholder in relation to the main acquisition;
14 and
15 (b) after the agreement is made and either before or
16 after it is completed, 1 or more other
17 acquisitions of interests in entities occur; and
18 (c) as a result of the occurrence of the acquisition
19 or acquisitions referred to in paragraph (b), the
20 main entity becomes a landholder in relation to
21 the main acquisition because any of the
22 following occurs --
23 (i) section 155(3) becomes applicable to
24 the main entity in relation to the main
25 acquisition;
26 (ii) an entity becomes a linked entity in
27 respect of the main entity in relation to
28 the main acquisition under
29 section 156A(3);
30 (iii) section 204A(2) becomes applicable, in
31 relation to the main acquisition, to a
32 fixed infrastructure access right to
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s. 100
1 which the main entity or a linked entity
2 in respect of the main entity is entitled.
3 (2) From the time at which section 155(3), 156A(3) or
4 204A(2) (whichever is relevant) becomes applicable,
5 the application of section 176 in relation to the main
6 acquisition is modified as follows --
7 (a) section 176(2) applies in relation to the
8 acquisition subject to subsection (3) of this
9 section;
10 (b) section 176(3) does not apply in relation to the
11 acquisition.
12 (3) For the purposes of the following provisions, the main
13 acquisition is taken to occur at the time at which
14 section 155(3), 156A(3) or 204A(2) (whichever is
15 relevant) becomes applicable --
16 (a) section 180(1);
17 (b) section 183;
18 (c) section 200(3);
19 (d) section 201(5).
20 204H. Reassessment of landholder duty if amount of duty
21 chargeable changes because of acquisitions forming
22 one arrangement
23 (1) This section applies if --
24 (a) an assessment of duty is made in relation to a
25 relevant acquisition (the main acquisition) of
26 an interest in a landholder; and
27 (b) after the assessment is made, 1 or more other
28 acquisitions of interests in entities occur; and
29 (c) as a result of the occurrence of the acquisition
30 or acquisitions referred to in paragraph (b),
31 there is a change in the amount of duty
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s. 101
1 chargeable in relation to the main acquisition
2 because any of the following occurs --
3 (i) an entity becomes a linked entity in
4 respect of the landholder in relation to
5 the main acquisition under
6 section 156A(3);
7 (ii) section 204A(2) becomes applicable, in
8 relation to the main acquisition, to a
9 fixed infrastructure access right to
10 which the landholder or a linked entity
11 in respect of the landholder is entitled;
12 (iii) section 204B(1) becomes applicable, in
13 relation to the main acquisition, to a
14 fixed infrastructure statutory licence to
15 which the landholder or a linked entity
16 in respect of the landholder is entitled.
17 (2) Subject to the Taxation Administration Act section 17,
18 the Commissioner must make any reassessment
19 necessary as a result of the change in amount of duty
20 chargeable referred to in subsection (1)(c).
21
22 101. Section 205A amended
23 In section 205A(3) delete "section 148" and insert:
24
25 section 148(1)
26
27 102. Section 205E amended
28 (1) Delete section 205E(1)(c)(ii) and insert:
29
30 (ii) anything to which section 3A(1)(f)
31 applies that is fixed to the land or an
32 estate or interest in such a thing.
33
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Duties Act 2008 amended Part 2
s. 103
1 (2) After section 205E(3)(f) insert:
2
3 (fa) anything to which section 18A(1) applies;
4 (fb) a mining tenement or an estate or interest in a
5 mining tenement;
6 (fc) a pastoral lease or an interest of a pastoral
7 lessee under a pastoral lease;
8 (fd) a derivative mining right;
9
10 103. Section 205P amended
11 In section 205P(1) delete "sections 31(5)," and insert:
12
13 sections 28(4A), 31(5), 36A(1), (4) and (5),
14
15 104. Section 205RA inserted
16 At the end of Chapter 3A Part 2 Division 4 insert:
17
18 205RA. Foreign transfer duty on deemed transaction under
19 s. 120B(2)
20 Foreign transfer duty is chargeable on a transaction that
21 is taken to occur under section 120B(2) if the
22 transaction is a foreign dutiable transaction.
23
24 105. Section 205S amended
25 (1) In section 205S(1) delete "Divisions 5 and 6" and insert:
26
27 Divisions 5 to 8
28
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s. 106
1 (2) In section 205S(2):
2 (a) in paragraph (h) delete "a reference in section 73 to land
3 in Western Australia" and insert:
4
5 the reference in section 73 to property of a kind referred
6 to in section 72(a), (b), (c) or (d)
7
8 (b) after paragraph (i) insert:
9
10 (ia) a reference in section 78(1)(a) or 78A(1)(a) to a
11 person ceasing to be a partner in a partnership
12 were a reference to a foreign person ceasing to
13 be a partner in a partnership; and
14
15 106. Section 205W amended
16 In section 205W(1):
17 (a) in paragraph (b) delete "results" and insert:
18
19 results, or will or may result,
20
21 (b) in paragraph (b)(i) and (ii) delete "interest" and insert:
22
23 interest, whether vested or contingent,
24
25 107. Section 205ZB amended
26 In section 205ZB(2)(b) delete "parcel of" (second occurrence).
27
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 108
1 108. Section 205ZD amended
2 (1) In section 205ZD(1) delete the definition of foreign acquirer
3 and insert:
4
5 foreign acquirer means --
6 (a) in relation to a foreign landholder acquisition to
7 which section 205ZH(1)(a)(i) applies --
8 (i) a foreign person that acquires an interest
9 in a residential landholder by the
10 acquisition; and
11 (ii) if there is more than 1 person referred to
12 in subparagraph (i), each of them;
13 or
14 (b) in relation to a foreign landholder acquisition to
15 which section 205ZH(1)(a)(ii) applies --
16 (i) a foreign person that is a related person
17 in respect of the acquirer of the interest
18 in the residential landholder and has an
19 interest in the residential landholder
20 immediately after the acquisition; and
21 (ii) if there is more than 1 person referred to
22 in subparagraph (i), each of them.
23
24 (2) In section 205ZD(1) in the definition of foreign landholder
25 acquisition delete "sections 205ZH and 205ZI;" and insert:
26
27 section 205ZH;
28
29 (3) In section 205ZD(2) delete "A reference" and insert:
30
31 Unless the contrary intention appears, a reference
32
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 109
1 109. Section 205ZE amended
2 (1) In section 205ZE(1) delete the Table and insert:
3
4 Table
s. 148(2) s. 149A(1) and (3)
Part 2 s. 155
s. 157 Part 5 Division 2
Subdivision 2
s. 167 s. 168
s. 171 Part 5 Division 2
Subdivision 4
s. 175 Part 6 Division 4
s. 193 Part 6 Division 6A
Part 6 Division 7 Part 7 Divisions 1 and 2
s. 204G
5
6 (2) In section 205ZE(2):
7 (a) in paragraph (b) after "an acquirer" insert:
8
9 (other than in section 179)
10
11 (b) in paragraph (e) delete "land, land in Western Australia"
12 and insert:
13
14 land assets, land assets in Western Australia
15
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 109
1 (c) delete paragraph (g) and insert:
2
3 (g) the definition of land asset in section 148(1)
4 were deleted;
5
6 (d) delete paragraph (j) and insert:
7
8 (j) the reference in section 179(2)(a) to the
9 acquirer were a reference to a foreign acquirer,
10 other than a person whose interest in the
11 residential landholder is, for the purpose of
12 calculating the duty, an excluded interest under
13 section 189; and
14 (ja) the reference in section 179(2)(d) or 185(b) to a
15 related person in respect of the acquirer were a
16 reference to a foreign person that is a related
17 person in respect of a foreign acquirer (as
18 defined in paragraph (a) of the definition of
19 foreign acquirer in section 205ZD(1)); and
20 (jb) a reference in section 189(2)(a) or (6) --
21 (i) to the person were a reference to the
22 foreign acquirer; and
23 (ii) to a related person were a reference to a
24 foreign person that is a related person in
25 respect of a foreign acquirer (as defined
26 in paragraph (a) of the definition of
27 foreign acquirer in section 205ZD(1));
28 and
29
30 (e) in paragraph (m) in the Table delete the row relating to
31 section 164;
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Part 2 Duties Act 2008 amended
s. 110
1 (f) in paragraph (m) in the Table after the row relating to
2 section 200 insert:
3
s. 204G s. 205ZKA
4
5 110. Section 205ZG amended
6 (1) In section 205ZG(1) delete "section 205ZH or 205ZI." and
7 insert:
8
9 section 205ZH.
10
11 (2) Delete section 205ZG(2) to (4) and insert:
12
13 (2) An entity is a residential landholder if --
14 (a) immediately before the acquisition, it is entitled
15 to residential property or an entity linked to the
16 entity is so entitled; and
17 (b) it is a landholder in relation to the acquisition.
18
19 111. Sections 205ZH and 205ZI replaced
20 Delete sections 205ZH and 205ZI and insert:
21
22 205ZH. Foreign landholder acquisitions
23 (1) An acquisition by a person (the acquirer) of an interest
24 in an entity that is a residential landholder in relation to
25 the acquisition is a foreign landholder acquisition
26 if --
27 (a) either --
28 (i) the acquirer is a foreign person; or
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Duties Act 2008 amended Part 2
s. 111
1 (ii) the acquirer is not a foreign person but,
2 immediately after the acquisition, there
3 is at least 1 related person in respect of
4 the acquirer that is a foreign person and
5 has an interest in the residential
6 landholder;
7 and
8 (b) subsection (2) applies to the acquisition.
9 (2) This subsection applies to an acquisition in any of the
10 following circumstances --
11 (a) if --
12 (i) immediately before the acquisition, the
13 acquirer does not have a significant
14 interest in the residential landholder;
15 and
16 (ii) immediately after the acquisition, the
17 acquirer has a significant interest in the
18 residential landholder;
19 (b) if --
20 (i) immediately before the acquisition, the
21 aggregated group interest in the
22 residential landholder does not amount
23 to a significant interest; and
24 (ii) immediately after the acquisition, the
25 aggregated group interest in the
26 residential landholder amounts to a
27 significant interest;
28 (c) if --
29 (i) immediately before the acquisition, the
30 acquirer has a significant interest in the
31 residential landholder; and
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 112
1 (ii) as a result of the acquisition, the
2 acquirer's interest in the residential
3 landholder increases;
4 (d) if --
5 (i) immediately before the acquisition, the
6 aggregated group interest in the
7 residential landholder amounts to a
8 significant interest; and
9 (ii) as a result of the acquisition, the
10 aggregated group interest in the
11 residential landholder increases.
12 (3) In subsection (2) --
13 aggregated group interest means the aggregate of --
14 (a) the interest (if any) that the acquirer has in the
15 residential landholder; and
16 (b) if 1 or more related persons have an interest in
17 the residential landholder -- all of those
18 interests.
19
20 112. Section 205ZKA inserted
21 At the end of Chapter 3A Part 3 Division 6 insert:
22
23 205ZKA. Modified application of s. 176 if entity becomes
24 residential landholder because of acquisitions
25 forming one arrangement
26 (1) This section modifies the application of section 176 in
27 relation to an acquisition (the main acquisition) of an
28 interest in an entity (the main entity) if --
29 (a) at the time the agreement for the main
30 acquisition is made, the main entity is not a
31 residential landholder in relation to the main
32 acquisition; and
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 113
1 (b) after the agreement is made and either before or
2 after it is completed, 1 or more other
3 acquisitions of interests in entities occur; and
4 (c) as a result of the occurrence of the acquisition
5 or acquisitions referred to in paragraph (b) --
6 (i) the main entity becomes a landholder in
7 relation to the main acquisition because
8 section 155(3) or 156A(3) becomes
9 applicable; and
10 (ii) the main entity becomes a residential
11 landholder in relation to the main
12 acquisition because
13 section 205ZG(2)(b) becomes
14 applicable.
15 (2) From the time at which section 205ZG(2)(b) becomes
16 applicable, the application of section 176 in relation to
17 the main acquisition is modified as follows --
18 (a) section 176(2) applies in relation to the main
19 acquisition subject to subsection (3) of this
20 section;
21 (b) section 176(3) does not apply in relation to the
22 main acquisition.
23 (3) For the purposes of sections 180(1) and 183, the main
24 acquisition is taken to occur at the time at which
25 section 205ZG(2)(b) becomes applicable.
26
27 113. Section 205ZM amended
28 (1) In section 205ZM(1) insert in alphabetical order:
29
30 notional transfer, in relation to an acquisition, means a
31 notional transaction consisting of the transfer, at the
32 time of the acquisition, by the relinquishing person to
33 the acquiring person of the relevant residential
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 113
1 property, as if the relevant residential property were
2 property of the relinquishing person;
3 relevant residential property, in relation to an
4 acquisition of an interest in a residential landholder,
5 means the residential property in Western Australia to
6 which the landholder, and each linked entity in respect
7 of the landholder, is entitled;
8
9 (2) In section 205ZM(1) in the definition of relinquishing person
10 after "in the" insert:
11
12 residential
13
14 (3) Delete section 205ZM(2) and insert:
15
16 (2) This section applies to an acquisition of an interest in a
17 residential landholder if no foreign transfer duty would
18 be chargeable, or foreign transfer duty would be
19 chargeable only to a particular extent, on the notional
20 transfer in relation to the acquisition.
21 (2A) If no foreign transfer duty would be chargeable on the
22 notional transfer, the acquisition is exempt.
23 (2B) If foreign transfer duty would be chargeable on the
24 notional transfer only to a particular extent, then
25 despite Chapter 3 Part 6 Division 5, the amount of
26 foreign landholder duty chargeable in respect of the
27 acquisition is the amount of foreign landholder duty
28 calculated under that Division in respect of the
29 acquisition reduced by the same proportion as the
30 proportion of the notional transfer on which no foreign
31 transfer duty would be chargeable.
32
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 114
1 (4) In section 205ZM(3):
2 (a) delete "subsection (2)," and insert:
3
4 this section,
5
6 (b) delete "described in section 205ZH(2) or 205ZI(2)" and
7 insert:
8
9 to which section 205ZH(1)(a)(ii) applies
10
11 (5) In section 205ZM(4) after "relinquishing person" insert:
12
13 in the definition of notional transfer in subsection (1)
14
15 (6) After section 205ZM(4) insert:
16
17 (5) This section does not apply if --
18 (a) no foreign transfer duty would be chargeable,
19 or foreign transfer duty would be chargeable
20 only to a particular extent, on the notional
21 transfer because of an exemption or reduction
22 under Chapter 6; or
23 (b) section 194 applies to the acquisition.
24
25 Note: The heading to amended section 205ZM is to read:
26 Exemption or reduction of foreign landholder duty if foreign
27 transfer duty would not be chargeable
28 114. Section 205ZP amended
29 In section 205ZP(1)(b) delete "parcel of" (second occurrence).
page 113
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 115
1 115. Section 205ZS amended
2 In section 205ZS(2) delete "the acquisition statement is required
3 to be lodged under section 200(3)," and insert:
4
5 an acquisition statement or agreement is required to be lodged
6 under section 200,
7
8 116. Section 205ZT amended
9 In section 205ZT:
10 (a) in paragraph (a) delete "acquirer;" and insert:
11
12 acquirer, other than a person whose interest in the
13 residential landholder is, for the purposes of calculating
14 the duty, an excluded interest under section 189;
15
16 (b) in paragraphs (b) and (c) before "landholder" insert:
17
18 residential
19
20 (c) in paragraph (d) delete "any person taken into account
21 under section 205ZH or 205ZI as being related to the
22 foreign acquirer for the purposes of the acquisition," and
23 insert:
24
25 a foreign person that is a related person in respect of a
26 foreign acquirer (as defined in paragraph (a) of the
27 definition of foreign acquirer in section 205ZD(1)) and
28 has an interest in the residential landholder immediately
29 after the foreign landholder acquisition,
30
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 117
1 117. Section 244A amended
2 (1) Delete section 244A(1) and insert:
3
4 (1) In this section --
5 car or bus means a motor vehicle, other than a motor
6 cycle, or a motorised wheelchair, built mainly to carry
7 people and includes the type of vehicle known as a
8 utility;
9 de facto partners of 2 years has the meaning given in
10 section 9;
11 goods vehicle means a motor vehicle built or modified
12 to be used primarily to carry goods or materials used in
13 any trade, business or industry;
14 motor cycle means a motor vehicle, other than a
15 motorised wheelchair or a goods vehicle, that is not
16 equipped with a permanent cab and cab roof and
17 that --
18 (a) is designed to travel on 2 wheels or, with a
19 sidecar attached, 3 wheels; or
20 (b) has 3 wheels arranged so that the axis of
21 rotation of 2 wheels lies on the same straight
22 line and each of those 2 wheels is equidistant
23 from the third;
24 motorised wheelchair means a chair-type vehicle
25 that --
26 (a) is fitted with 3 or more wheels; and
27 (b) is fitted and designed only for the use of
28 persons with a physical disability.
29
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 118
1 (2) Delete section 244A(5) and insert:
2
3 (5) This subsection applies if the vehicle is a car or bus or
4 a goods vehicle --
5 (a) with an unloaded mass that does not exceed
6 3 000 kg; and
7 (b) that is not a heavy vehicle; and
8 (c) that is to be used exclusively for social,
9 domestic or pleasure purposes and is not to be
10 used in any trade, business or industry or for
11 the carrying of passengers, or goods, for hire or
12 reward.
13
14 118. Section 257 amended
15 (1) In section 257(1) delete the definition of security.
16 (2) In section 257(1) insert in alphabetical order:
17
18 notifiable event has the meaning given by
19 section 264(2) and (3);
20 public float means --
21 (a) the securities of an entity being offered for sale
22 or issue to the public for the purpose of listing
23 the entity on a prescribed financial market; or
24 (b) the securities of an entity being listed on a
25 prescribed financial market within 12 months
26 after being offered to the public as referred to in
27 paragraph (a);
28 security --
29 (a) in relation to an entity that is a corporation --
30 (i) means an issued share of the
31 corporation; and
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 119
1 (ii) if the corporation is a hybrid
2 company -- includes an interest that the
3 Commissioner considers is analogous to
4 an issued share of the corporation;
5 or
6 (b) in relation to an entity that is a unit trust
7 scheme -- means a unit issued under the
8 scheme;
9
10 (3) After section 257(2) insert:
11
12 (3) A reference in section 260 or 264A to residential
13 property includes a reference to a chattel in Western
14 Australia to which section 205E(2) applies.
15
16 119. Section 259 amended
17 After section 259(4) insert:
18
19 (5) An acquisition is not a relevant consolidation
20 transaction if any part of the consideration for the
21 acquisition, or an associated acquisition, has been or is
22 to be provided by a person that is not a member of the
23 family formed by the corporate consolidation referred
24 to in subsection (2).
25 (6) For the purposes of subsection (5) --
26 (a) if the acquisition concerned is an acquisition of
27 securities of the affected entity by the head
28 entity as referred to in subsection (2)(a) -- an
29 acquisition of securities of the head entity by a
30 holder of securities of the affected entity that is
31 made for the purposes of the same corporate
32 consolidation is an associated acquisition; or
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 120
1 (b) if the acquisition concerned is an acquisition of
2 securities of the head entity by a holder of
3 securities of the affected entity as referred to in
4 subsection (2)(b) -- an acquisition of securities
5 of the affected entity by the head entity that is
6 made for the purposes of the same corporate
7 consolidation is an associated acquisition.
8 (7) Subsection (5) does not apply in relation to
9 consideration provided for an acquisition or an
10 associated acquisition if --
11 (a) the acquisition or associated acquisition is of a
12 kind referred to in subsection (2)(b); and
13 (b) the consideration is the transfer of securities of
14 the affected entity by the holder of those
15 securities to the head entity.
16
17 120. Section 260 amended
18 (1) After section 260(1) insert:
19
20 (1A) For the purposes of subsection (1)(a)(v), a surrender of
21 a mining tenement, in whole or in part, by one member
22 of a family is taken to be a surrender to another
23 member of the family if the surrender is made in
24 contemplation of, or as part of an agreement that, the
25 tenement, or the part of the tenement, be granted to or
26 acquired by the other member of the family.
27 (1B) For the purposes of subsection (1)(d), an acquisition of
28 an interest in an entity by one member of a family is
29 taken to be an acquisition from another member of the
30 family if --
31 (a) the interest of the other member of the family in
32 the entity is decreased because of the
33 acquisition; or
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 121
1 (b) the interest of the other member of the family in
2 the entity decreased resulting in the acquisition.
3
4 (2) After section 260(4) insert:
5
6 (5) A transaction, transfer or acquisition referred to in
7 subsection (1) is not a relevant reconstruction
8 transaction if any part of the consideration for the
9 transaction, transfer or acquisition has been or is to be
10 provided by a person that is not a member of the family
11 referred to in that subsection.
12
13 121. Section 260A inserted
14 After section 260 insert:
15
16 260A. Consideration provided as loan
17 For the purposes of sections 259(5) and 260(5),
18 consideration provided by a person other than a
19 member of the family is taken to have been provided
20 by a member of the family if the Commissioner is
21 satisfied that the consideration was provided as a loan
22 and has been or will be repaid by a member of the
23 family.
24
25 122. Section 261 amended
26 (1) In section 261(1) in the definition of pre-transaction decision
27 request delete "subsection (2), (3)" and insert:
28
29 subsection (2)
30
31 (2) Delete section 261(3).
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Revenue Laws Amendment Bill 2018
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s. 123
1 (3) Delete section 261(7)(a).
2 (4) After section 261(7) insert:
3
4 (7A) The Commissioner must refuse a pre-transaction
5 decision request if the transaction to which the request
6 relates has been entered into.
7
8 123. Section 263 amended
9 Delete section 263(4) and insert:
10
11 (4) An exemption cannot be granted in relation to a
12 relevant transaction if --
13 (a) the Commissioner is satisfied that the
14 transaction is part of a scheme or arrangement
15 that has been, or is to be, entered into or carried
16 out by a person --
17 (i) for a purpose of avoiding or reducing
18 any liability of a person for duty; or
19 (ii) for the sole or dominant purpose of
20 avoiding or reducing any liability of a
21 person for tax other than duty;
22 or
23 (b) the Commissioner is satisfied that the
24 exemption would be revoked under
25 section 264A because of the occurrence of a
26 notifiable event referred to in that section; or
27 (c) any member of the family has an outstanding
28 tax liability.
29
30 124. Section 264 amended
31 (1) In section 264(1) delete the definition of notifiable event.
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 125
1 (2) Delete section 264(3)(c) and insert:
2
3 (c) an acquisition by one member of a family from
4 another member of the family of an interest in
5 an entity, if landholder duty is not chargeable
6 on the acquisition; or
7
8 125. Section 264A inserted
9 After section 264 insert:
10
11 264A. Automatic revocation of exemption
12 (1) The exemption for an exempt relevant reconstruction
13 transaction is revoked by this subsection if --
14 (a) a notifiable event to which section 264(2)(b)
15 applies occurs in relation to the relevant
16 reconstruction transaction within 3 years after
17 the date of the transaction; and
18 (b) the member of the transaction group referred to
19 in whichever of section 264(2)(b)(i) or (ii)
20 applies (the relevant entity) is --
21 (i) for a relevant reconstruction transaction
22 referred to in section 260(1)(a)(iii) or
23 (aa)(iii) -- the entity for which the
24 dutiable property or residential property
25 is held on trust; or
26 (ii) for a relevant reconstruction transaction
27 referred to in section 260(1)(d) -- the
28 acquirer of the interest referred to in that
29 section; or
30 (iii) otherwise -- the entity who would, but
31 for the exemption, be liable to pay the
32 transfer duty, foreign transfer duty or
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 125
1 vehicle licence duty chargeable on the
2 transaction;
3 and
4 (c) when the notifiable event occurs, the property
5 referred to in subsection (2), or a part of that
6 property, is held by, or on trust for, the relevant
7 entity.
8 (2) For the purposes of subsection (1)(c), the property is --
9 (a) for a relevant reconstruction transaction
10 referred to in section 260(1)(a) -- the dutiable
11 property to which the transaction relates; or
12 (b) for a relevant reconstruction transaction
13 referred to in section 260(1)(aa) -- the
14 residential property to which the transaction
15 relates; or
16 (c) for a relevant reconstruction transaction
17 referred to in section 260(1)(b) -- the licence
18 for a vehicle to which the transaction relates; or
19 (d) for a relevant reconstruction transaction
20 referred to in section 260(1)(d) -- the interest
21 in an entity to which the transaction relates.
22 (3) This section does not apply --
23 (a) to a notifiable event that results from a public
24 float; or
25 (b) in prescribed circumstances.
26 (4) This section applies whether or not there has been a
27 change in the legal description of the property referred
28 to in subsection (2) between the relevant reconstruction
29 transaction and the notifiable event.
30 Note for this subsection:
31 For example, a change in the legal description of property
32 when a new certificate of title is registered following a
33 subdivision of land.
34
page 122
Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 126
1 126. Section 265 amended
2 In section 265:
3 (a) in paragraph (a) delete "duty on a transaction, transfer of
4 licence or acquisition; or" and insert:
5
6 any liability of a person for duty; or
7
8 (b) in paragraph (b) after "reducing" insert:
9
10 any liability of a person for
11
12 Note: The heading to amended section 265 is to read:
13 Revocation of exemption by Commissioner
14 127. Section 266 amended
15 (1) In section 266(1) delete "On revoking an exemption for a
16 relevant transaction" and insert:
17
18 If the exemption for a relevant transaction is revoked under
19 section 264A or 265,
20
21 (2) After section 266(1) insert:
22
23 (1A) If the exemption is revoked under section 264A, the
24 official assessment --
25 (a) must determine the amount of duty payable on
26 the relevant transaction as at the date of the
27 transaction (subject to any reduction that
28 applies under section 266A or 266B); and
29 (b) may include penalty tax equal to the amount of
30 that duty.
31
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Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 128
1 (3) In section 266(2) delete "The" and insert:
2
3 If the exemption is revoked under section 265, the
4
5 (4) After section 266(5) insert:
6
7 (6) Despite the Taxation Administration Act section 17, if
8 an exemption for a relevant transaction is revoked
9 under section 264A on the occurrence of a notifiable
10 event, the Commissioner may make a reassessment in
11 relation to the transaction at any time before the later
12 of --
13 (a) the day that is 5 years after the day on which
14 the Commissioner made a reassessment under
15 section 263(2), or issued a certificate or made
16 an assessment under section 263(3), in relation
17 to the transaction (whichever is relevant); or
18 (b) the day that is 12 months after the day on which
19 notice of the notifiable event was lodged under
20 section 264(4).
21
22 128. Sections 266A to 266D inserted
23 At the end of Chapter 6 insert:
24
25 266A. Reduction of duty following automatic revocation
26 or refusal of exemption
27 (1) The duty to be assessed on a relevant reconstruction
28 transaction is to be reduced in accordance with
29 subsection (2) if --
30 (a) either of the following occurs --
31 (i) an exemption is granted for a relevant
32 reconstruction transaction but the
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Revenue Laws Amendment Bill 2018
Duties Act 2008 amended Part 2
s. 128
1 exemption is revoked under
2 section 264A on the occurrence of a
3 notifiable event;
4 (ii) an exemption application is made in
5 accordance with section 262 for a
6 relevant reconstruction transaction and
7 the exemption would have been granted
8 but for the application of
9 section 263(4)(b) because of the
10 occurrence of a notifiable event;
11 and
12 (b) at the time of the notifiable event, only part of
13 the property referred to in section 264A(2) to
14 which the relevant reconstruction transaction
15 relates is held by, or on trust for, the member of
16 the transaction group referred to in whichever
17 of section 264(2)(b)(i) or (ii) applies (the
18 relevant entity).
19 (2) Duty is chargeable on the relevant reconstruction
20 transaction only to the extent that the transaction
21 relates to the part of the property referred to in
22 section 264A(2) that is held by, or on trust for, the
23 relevant entity at the time of the notifiable event.
24 (3) This section applies whether or not there has been a
25 change in the legal description of the property referred
26 to in section 264A(2) between the relevant
27 reconstruction transaction and the notifiable event.
28 Note for this subsection:
29 For example, a change in the legal description of property
30 when a new certificate of title is registered following a
31 subdivision of land.
page 125
Revenue Laws Amendment Bill 2018
Part 2 Duties Act 2008 amended
s. 128
1 266B. Reduction of duty following automatic revocation
2 or refusal of exemption resulting from relevant
3 acquisition
4 (1) In this section --
5 property means land assets (as defined in
6 section 148(1)), or chattels, or both;
7 relevant acquisition has the meaning given in
8 section 148(1).
9 (2) The duty assessed on a relevant reconstruction
10 transaction is to be reduced in accordance with
11 subsection (3) if --
12 (a) either of the following occurs --
13 (i) an exemption is granted for the relevant
14 reconstruction transaction but the
15 exemption is revoked under
16 section 264A on the occurrence of a
17 notifiable event;
18 (ii) an exemption application is made in
19 accordance with section 262 for the
20 relevant reconstruction transaction and
21 the exemption would have been granted
22 but for the application of
23 section 263(4)(b) because of the
24 occurrence of a notifiable event;
25 and
26 (b) the notifiable event results from a relevant
27 acquisition (the triggering acquisition) on
28 which landholder duty is chargeable; and
29 (c) transfer duty or landholder duty is chargeable
30 on the relevant reconstruction transaction in
31 relation to particular property (the relevant
32 reconstruction transaction property); and
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s. 128
1 (d) landholder duty is chargeable on the triggering
2 acquisition in relation to particular property
3 (the triggering acquisition property); and
4 (e) the triggering acquisition property is or
5 includes the relevant reconstruction transaction
6 property or part of the relevant reconstruction
7 transaction property.
8 Note for this subsection:
9 Section 266C provides for the property in relation to which
10 landholder duty is taken to be chargeable for the purposes
11 of this section.
12 (3) The duty assessed in respect of the relevant
13 reconstruction transaction is to be reduced by the lesser
14 of --
15 (a) the amount of transfer duty or landholder duty
16 that is chargeable on the relevant reconstruction
17 transaction, to the extent that the duty is
18 chargeable in relation to relevant property; or
19 (b) the amount of landholder duty that is
20 chargeable on the triggering acquisition, to the
21 extent that the duty is chargeable in relation to
22 relevant property.
23 (4) For the purposes of subsection (3), relevant property is
24 property that is both triggering acquisition property and
25 relevant reconstruction transaction property, whether or
26 not there has been a change in the legal description of
27 the property between the relevant reconstruction
28 transaction and the triggering acquisition.
29 Note for this subsection:
30 For example, a change in the legal description of property
31 when a new certificate of title is registered following a
32 subdivision of land.
33 (5) If the relevant reconstruction transaction property is or
34 includes an interest in particular property, and the
35 triggering acquisition property is or includes a different
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s. 128
1 interest in the same property, property is relevant
2 property for the purposes of subsection (3) only to the
3 extent of the lesser of the 2 interests.
4 266C. Property in relation to which landholder duty taken
5 to be chargeable for s. 266B
6 (1) In this section --
7 property means land assets (as defined in
8 section 148(1)), or chattels, or both;
9 relevant acquisition has the meaning given in
10 section 148(1).
11 (2) For the purposes of section 266B, landholder duty that
12 is chargeable on a relevant acquisition of an interest in
13 an entity is taken to be chargeable in relation to --
14 (a) for property of which 100% of the value is
15 taken into account for the purposes of
16 calculating that landholder duty -- that
17 property; and
18 (b) for property of which a lower percentage of the
19 value is taken into account for the purposes of
20 calculating that landholder duty -- a percentage
21 interest in that property that is equal to the
22 percentage taken into account for the purposes
23 of calculating that landholder duty.
24 (3) For the purposes of subsection (2), the percentage of
25 the value of property that is taken into account for the
26 purposes of calculating landholder duty is to be
27 determined in accordance with the following
28 formula --
29 P × (I − E)
30 where --
31 P is the percentage (expressed as a decimal) of the
32 unencumbered value of that property taken into
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s. 128
1 account under section 186 in determining the value
2 of the landholder;
3 I is the percentage (expressed as a decimal) of the
4 interest of the acquirer in the landholder after the
5 relevant acquisition referred to in section 188(3);
6 E is the aggregate percentage (expressed as a
7 decimal) of each excluded interest in relation to the
8 relevant acquisition referred to in section 189.
9 266D. Application of s. 266B and 266C to foreign transfer
10 duty and foreign landholder duty
11 If foreign transfer duty or foreign landholder duty is
12 chargeable on a relevant reconstruction transaction,
13 sections 266B and 266C apply in relation to the foreign
14 transfer duty or foreign landholder duty chargeable on
15 the relevant reconstruction transaction as if --
16 (a) a reference to transfer duty were a reference to
17 foreign transfer duty; and
18 (b) a reference to landholder duty were a reference
19 to foreign landholder duty; and
20 (c) a reference to a landholder were a reference to a
21 residential landholder (as defined in
22 section 205ZD(1)); and
23 (d) a reference to a relevant acquisition were a
24 reference to a foreign landholder acquisition (as
25 defined in section 205ZD(1)); and
26 (e) a reference to land assets (as defined in
27 section 148(1)) were a reference to residential
28 property; and
29 (f) a reference to an acquirer were a reference to a
30 foreign acquirer (as defined in
31 section 205ZD(1)); and
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s. 129
1 (g) a reference to a provision of Chapter 3 were a
2 reference to that provision as applied by
3 section 205ZE(1).
4
5 129. Section 277 amended
6 (1) Delete section 277(1) and insert:
7
8 (1) In this section --
9 relevant licence means --
10 (a) a business licence (as defined in section 79)
11 that is issued, granted or given under a law of
12 Western Australia; or
13 (b) a fixed infrastructure statutory licence that is
14 issued, granted or given under a law of Western
15 Australia.
16
17 (2) In section 277(2):
18 (a) delete "business licence" and insert:
19
20 relevant licence
21
22 (b) in paragraph (b) delete "business licences," and insert:
23
24 relevant licences,
25
26 (3) In section 277(3)(a) delete "business licence" and insert:
27
28 relevant licence
29
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Revenue Laws Amendment Bill 2018
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s. 130
1 130. Schedule 1 amended
2 In Schedule 1 in the item for section 11(1)(g) in column 4 after
3 "18(g)," insert:
4
5 (ga), (gb) or (gc),
6
7 131. Schedule 3 clause 1 amended
8 In Schedule 3 clause 1 in the definition of relevant acquisition
9 delete "sections 163 and 164." and insert:
10
11 section 148.
12
13 132. Schedule 3 Division 9 inserted
14 At the end of Schedule 3 insert:
15
16 Division 9 -- Provisions for Revenue Laws Amendment
17 Act 2018
18 46. Terms used
19 (1) In this Division --
20 commencement day means the day on which the Revenue
21 Laws Amendment Act 2018 Part 2 comes into operation;
22 transaction means any transaction, transfer, acquisition or
23 other matter of a kind on which duty is or may be
24 chargeable under this Act and includes the following --
25 (a) a transaction of a kind referred to in section 11
26 (including a transaction that would be a dutiable
27 transaction if it related to dutiable property, new
28 dutiable property or special dutiable property);
29 (b) an acquisition of an interest in an entity for the
30 purposes of Chapter 3 or Chapter 3A Part 3;
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s. 132
1 (c) a transaction of a kind referred to in section 205H
2 (including a transaction that would be a foreign
3 dutiable transaction if it related to residential
4 property, special residential property or new
5 residential property);
6 (d) the grant or transfer of a licence for a vehicle for the
7 purposes of Chapter 5.
8 (2) In this Division a reference to doing anything includes
9 omitting to do anything.
10 (3) For the purposes of this Division --
11 (a) when an acquisition of an interest in an entity for
12 the purposes of Chapter 3 occurs is to be
13 determined under section 176; and
14 (b) when an acquisition of an interest in an entity for
15 the purposes of Chapter 3A Part 3 occurs is to be
16 determined under section 176 as applied by
17 section 205ZE(1).
18 47. Application of amendments made by Revenue Laws
19 Amendment Act 2018
20 (1) The amendments made by the Revenue Laws Amendment
21 Act 2018 apply in relation to the imposition of duty on
22 transactions that occur on or after commencement day.
23 (2) Sections 155(4), 156A, 204D(2)(d) and 204F (including
24 sections 156A and 204F as applied by section 205ZE(1)) do
25 not apply in relation to acquisitions that together form,
26 evidence, give effect to or arise from what is, substantially
27 one arrangement unless each of those acquisitions occurs on
28 or after commencement day.
29 (3) Section 91C(3) does not apply in relation to transactions that
30 together form, evidence, give effect to, or arise from what is,
31 substantially one arrangement unless each of those
32 transactions occurs on or after commencement day.
33 (4) Sections 14(3) and 91C(4) do not apply in relation to a
34 transaction and an acquisition or agreement that together
35 form, evidence, give effect to, or arise from what is,
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s. 132
1 substantially one arrangement unless each of the transaction
2 and the acquisition or agreement occurs on or after
3 commencement day.
4 (5) This clause has effect subject to the other provisions of this
5 Division.
6 48. Definition of land taken always to have included pastoral
7 leases
8 (1) In this clause --
9 pre-commencement period means the period beginning on
10 1 July 2008 and ending immediately before commencement
11 day.
12 (2) This Act is taken, for all purposes, to have applied during
13 the pre-commencement period as if the definition of land in
14 force for the purposes of this Act had, at all times during the
15 pre-commencement period, included an express statement
16 that land includes a pastoral lease and an interest of a
17 pastoral lessee under a pastoral lease.
18 (3) Without limiting subclause (2), an assessment of duty
19 chargeable under this Act made, or purported to be made, in
20 the pre-commencement period is, and is taken to have
21 always been, as valid and effective as it would have been if,
22 when the liability for duty arose, the definition of land in
23 force for the purposes of this Act had included the statement
24 referred to in subclause (2).
25 (4) Without limiting subclause (2), if a transaction occurred
26 during the pre-commencement period, but an assessment of
27 duty in relation to the transaction was not made before
28 commencement day, an assessment of duty made on or after
29 commencement day in relation to the transaction is to be
30 made as if, when the transaction occurred, the definition of
31 land in force for the purposes of this Act had included the
32 statement referred to in subclause (2).
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s. 132
1 49. Validation of administration agreements entered into
2 before commencement day
3 (1) In this clause --
4 previous administration agreement means an
5 administration agreement entered into under the First Home
6 Owner Grant Act 2000 section 37 on or after
7 3 October 2015 and before commencement day.
8 (2) A previous administration agreement entered into, or
9 purported to be entered into, is, and is taken to have always
10 been, as valid and effective as it would have been if the
11 amendment made by the Revenue Laws Amendment
12 Act 2018 section 52 had been in force when the agreement
13 was entered into.
14 50. Transfers of vehicle licences between spouses between
15 1 July 2014 and commencement day
16 (1) In this clause --
17 amended section 244A means section 244A as in force
18 immediately after the coming into operation of the Revenue
19 Laws Amendment Act 2018 section 117;
20 relevant vehicle licence transfer means the transfer of a
21 licence for a vehicle if --
22 (a) the transfer occurred during the period beginning on
23 1 July 2014 and ending immediately before
24 commencement day; and
25 (b) the person from whom, and the person to whom, the
26 licence was transferred were married to each other
27 or de facto partners of 2 years when the transfer
28 occurred.
29 (2) When this clause uses a term that is used in Chapter 5, the
30 term has the same meaning in this clause as it has in that
31 Chapter.
32 (3) An assessment made, or purported to be made, before
33 commencement day that no duty was chargeable on a
34 relevant vehicle licence transfer is, and is taken to have
35 always been, as valid and effective as it would have been if
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Revenue Laws Amendment Bill 2018
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s. 132
1 amended section 244A had been in force when the transfer
2 occurred.
3 (4) If no assessment of vehicle licence duty on a relevant
4 vehicle licence transfer was made before commencement
5 day, an assessment of vehicle licence duty on the transfer
6 made after commencement day must be made as if amended
7 section 244A had been in force when the transfer occurred.
8 (5) If an assessment that vehicle licence duty was chargeable on
9 a relevant vehicle licence transfer was made before
10 commencement day, and vehicle licence duty would not
11 have been chargeable on the transfer if amended
12 section 244A had been in force when the transfer occurred,
13 the Commissioner must, on application by the transferee,
14 make a reassessment of the liability for vehicle licence duty
15 as if amended section 244A had been in force at that time.
16 (6) The limitations as to time in the Taxation Administration
17 Act section 17 do not apply in respect of a reassessment
18 under subclause (5), but an application for reassessment
19 under that subclause must be made on or before the later
20 of --
21 (a) the day that is 5 years after the day on which the
22 original assessment was made; or
23 (b) the day that is 12 months after commencement day.
24 51. Provisions relating to exemptions for connected entities
25 (1) The amendments to Chapter 6 made by the Revenue Laws
26 Amendment Act 2018 sections 118 to 128 apply in relation
27 to an exemption if the application for the exemption is made
28 on or after commencement day, whether the transaction
29 occurred before or after commencement day.
30 (2) Despite subclause (1), section 263(4)(a) and (b) (as in force
31 on commencement day), section 264A and sections 266A to
32 266D do not apply in relation to a relevant transaction that
33 occurred before commencement day.
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s. 132
1 (3) Subclause (4) applies if --
2 (a) before commencement day, the Commissioner
3 makes a decision under section 261 on a
4 pre-transaction decision request made under
5 section 261(2) or (3) (as in force immediately
6 before commencement day) in relation to a
7 proposed relevant transaction; and
8 (b) the decision is --
9 (i) in relation to a request made under
10 section 261(2) -- that if the transaction
11 were entered into it would be exempted; or
12 (ii) in relation to a request made under
13 section 261(3) -- that if the transaction
14 were entered into and exempted, the
15 exemption would not be revoked under
16 section 265;
17 and
18 (c) the transaction is not entered into before
19 commencement day.
20 (4) Despite section 261(10), the Commissioner is not bound by
21 the pre-transaction decision request if the Commissioner
22 would have made a different decision on the request if the
23 amendments made by the Revenue Laws Amendment
24 Act 2018 sections 123 to 126 had been in force when the
25 decision was made.
26 (5) Section 261(7)(b) does not apply to a pre-transaction
27 decision request if the pre-transaction decision request that
28 was made previously referred to in that section was made
29 before commencement day.
30 52. Provisions about validated assessments
31 (1) In this clause --
32 previous assessment means an assessment to which
33 clause 48(3) or 50(3) applies.
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Duties Act 2008 amended Part 2
s. 132
1 (2) The rights, obligations and liabilities of all persons are taken
2 to be, and to have always been, the same as if a previous
3 assessment had been validly made.
4 (3) Anything done, or purportedly done, before commencement
5 day is as valid and effective, and is to be taken to have
6 always been as valid and effective, as it would have been if
7 a previous assessment had been validly made.
8 53. Application of s. 195B and 195 to acquisitions before
9 commencement day
10 Section 195B applies in relation to a main acquisition
11 referred to in section 195B(1) or (3) that occurred before
12 commencement day, and section 195 applies in relation to a
13 relevant acquisition referred to in section 195(1) or (3) that
14 occurred before commencement day, as if --
15 (a) a reference to section 154B(a) included a reference
16 to section 156(8)(a) as in force immediately before
17 commencement day; and
18 (b) a reference to section 154B(b) included a reference
19 to section 156(8)(b) as in force immediately before
20 commencement day.
21
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Revenue Laws Amendment Bill 2018
Part 3 Land Tax Assessment Act 2002 amended
Division 1 Act amended
s. 133
1 Part 3 -- Land Tax Assessment Act 2002 amended
2 Division 1 -- Act amended
3 133. Act amended
4 This Part amends the Land Tax Assessment Act 2002.
5 Division 2 -- Amendments commencing on day after Royal
6 Assent
7 134. Section 18A inserted
8 After section 18 insert:
9
10 18A. Taxable value of land subject to partial exemption
11 (1) In this section --
12 exemption provision means a provision of this part
13 referred to in section 17(1)(b);
14 relevant requirements, in relation to an exemption
15 provision, has the meaning given in section 18(1).
16 (2) This section applies if, under section 18, an exemption
17 for an assessment year applies to a lot or parcel of land
18 only to a particular extent because --
19 (a) the relevant requirements of the exemption
20 provision do not apply to any extent in respect
21 of a part of the area of the lot or parcel; and
22 (b) the relevant requirements of the exemption
23 apply, or apply to some extent, in respect of the
24 remainder of the area of the lot or parcel (the
25 exempt area).
26 (3) For the purposes of determining the taxable value of
27 the lot or parcel for the assessment year, the
28 unimproved value of the lot or parcel for the
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Revenue Laws Amendment Bill 2018
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Amendments commencing on day after Royal Assent Division 2
s. 135
1 assessment year is the unimproved value of the whole
2 of the lot or parcel reduced by the unimproved value of
3 the exempt area, but only to the extent to which the
4 relevant requirements of the exemption provision apply
5 in respect of the exempt area.
6 (4) The unimproved value of the exempt area for the
7 purposes of subsection (3) is the amount that bears the
8 same proportion to the unimproved value, as
9 determined by the Valuer-General, of the whole of the
10 lot or parcel as the exempt area bears to the whole area
11 of the lot or parcel.
12 (5) If there is a multi-storey building on the lot or parcel,
13 the Commissioner may determine --
14 (a) an area that is to be treated as the exempt area
15 for the purposes of this section; and
16 (b) an area that is to be treated as the whole area of
17 the lot or parcel for the purposes of
18 subsection (4).
19 (6) A determination under subsection (5) --
20 (a) may be made on any basis that the
21 Commissioner decides is appropriate, taking
22 into account the areas of the lot or parcel and
23 parts of the building to which the relevant
24 requirements apply or apply to some extent;
25 and
26 (b) has effect according to its terms.
27
28 135. Section 26A amended
29 After section 26A(3)(a)(ii) insert:
30
31 (iii) a child of the disabled person;
32
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Revenue Laws Amendment Bill 2018
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Division 2 Amendments commencing on day after Royal Assent
s. 136
1 136. Section 29 amended
2 In section 29 in the definition of beneficiary delete "an
3 individual" and insert:
4
5 a person
6
7 137. Section 46 amended
8 After section 46(3) insert:
9
10 (4) Regulations may be expressed to apply to or in relation
11 to an assessment year that began before the day on
12 which the regulations came into operation if the
13 application of the regulations to or in relation to that
14 assessment year would not adversely affect a person
15 who is or may become liable to pay land tax for the
16 assessment year.
17
18 138. Schedule 1 Division 6 inserted
19 At the end of Schedule 1 insert:
20
21 Division 6 -- Provisions for Revenue Laws Amendment
22 Act 2018
23 20. Application of section 30D to land held in trust for
24 assessment year 2019/20
25 (1) In this clause --
26 compliant trustee, in relation to land, means a trustee of a
27 discretionary or other trust (other than a unit trust scheme)
28 that is --
29 (a) a family owner of the land under section 30H(c); or
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Amendments commencing on 1 July 2019 Division 3
s. 139
1 (b) a person related to a family owner of the land
2 described in section 30I(1)(d), 30J(d), 30K(d) or
3 30(d).
4 (2) Land is exempt under section 30D for the assessment year
5 ending 30 June 2020 if --
6 (a) it would not be so exempt, but for this clause, solely
7 because a trustee was not a compliant trustee at
8 midnight on 30 June 2019; and
9 (b) the trustee would have been a compliant trustee at
10 midnight on 30 June 2019 but for the amendment to
11 the definition of beneficiary in section 29 made by
12 the Revenue Laws Amendment Act 2018
13 section 136; and
14 (c) on or before midnight on 30 June 2020 the trustee is
15 a compliant trustee.
16
17 Division 3 -- Amendments commencing on 1 July 2019
18 139. Part 3 Division 2 Subdivision 1 heading inserted
19 At the beginning of Part 3 Division 2 insert:
20
21 Subdivision 1 -- Exemptions and rebates for private
22 residential property
23
24 140. Part 3 Division 2 Subdivision 2 inserted:
25 At the end of Part 3 Division 2 insert:
26
27 Subdivision 2 -- Application of private residential
28 exemptions to subdivided land
29 28A. Terms used
30 In this Subdivision --
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Revenue Laws Amendment Bill 2018
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Division 3 Amendments commencing on 1 July 2019
s. 140
1 exemption period means --
2 (a) in relation to section 24, 25 or 27 -- an
3 assessment year;
4 (b) in relation to section 24A, 25A or 27A -- a
5 period of 2 consecutive assessment years;
6 exemption provision means section 24, 24A, 25, 25A,
7 27 or 27A;
8 new lot, in relation to a subdivision of land, means a lot
9 that comes into existence as a result of the subdivision;
10 parent lot, in relation to a subdivision of land, means a
11 lot that ceases to be a lot for the purposes of this Act
12 under the Glossary clause 2(2) as a result of the
13 subdivision.
14 28B. Application of certain private residential
15 exemptions to property subdivided during
16 exemption period
17 (1) This section applies if --
18 (a) land is subdivided during an exemption period
19 for an exemption provision; and
20 (b) because of the subdivision, there are 1 or more
21 requirements (the unsatisfied requirements) of
22 the exemption provision that --
23 (i) are not satisfied in relation to private
24 residential property that is a parent lot in
25 relation to the subdivision; but
26 (ii) would be satisfied if the private
27 residential property the subject of the
28 exemption provision were 1 or more of
29 the new lots in relation to the
30 subdivision.
31 (2) For the purposes of the application of the exemption
32 provision to private residential property that is a parent
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Revenue Laws Amendment Bill 2018
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Amendments commencing on 1 July 2019 Division 3
s. 140
1 lot referred to in subsection (1)(b)(i) for the exemption
2 period --
3 (a) the unsatisfied requirements are taken to be
4 satisfied; and
5 (b) if an exemption applies to the parent lot
6 because of paragraph (a), the exemption applies
7 only to the part or parts of the parent lot that,
8 after the subdivision, constitute the new lot or
9 lots referred to in subsection (1)(b)(ii); and
10 (c) if there is any area of the parent lot to which the
11 exemption does not apply because of
12 paragraph (b), the taxable value of the parent
13 lot is to be determined under section 18A as if
14 the area of each new lot referred to in
15 subsection (1)(b)(ii) were an exempt area
16 referred to in section 18A(2).
17 (3) For the purposes of determining under
18 subsection (1)(b)(ii) whether a relevant requirement
19 would be satisfied in relation to a new lot --
20 (a) a requirement that relates to the ownership of
21 the private residential property at midnight on
22 30 June immediately before the exemption
23 period is taken to be satisfied in relation to a
24 new lot if each person who is an owner of that
25 new lot after the subdivision (a new lot owner)
26 was also an owner of the parent lot at that time;
27 and
28 (b) if, at that time, the new lot owners owned the
29 parent lot jointly with 1 or more other
30 persons -- the new lot is taken to have been
31 owned at that time by the new lot owners only.
32 (4) A reference in subsection (3) to an owner of a new lot
33 after a subdivision is to a person who is an owner of
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Revenue Laws Amendment Bill 2018
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Division 3 Amendments commencing on 1 July 2019
s. 140
1 the new lot after the certificate of title for the new lot is
2 registered under the Transfer of Land Act 1893.
3 28C. Application of requirements relating to sale or
4 disposal of subdivided property
5 (1) For the purposes of the application of section 27 or
6 27A to private residential property, a requirement in
7 section 27(1)(f) or 27A(1)(j) that relates to the property
8 acquired first referred to in that section is taken to be
9 satisfied if --
10 (a) the property acquired first is subdivided during
11 the exemption period for section 27 or 27A
12 (whichever is relevant); and
13 (b) the requirement is satisfied in relation to each
14 of the new lots in relation to the subdivision.
15 (2) Subsection (1) applies in relation to the requirement in
16 section 27(1)(f) whether the property acquired first is
17 property A or property B referred to in section 27.
18 (3) Despite section 28B(2)(a), a requirement in
19 section 27(1)(f) or 27A(1)(j) is not taken to be satisfied
20 under that section unless subsection (1)(b) of this
21 section applies.
22 28D. Application of 2-year private residential exemptions
23 if property subdivided during first year
24 If private residential property that is a parent lot is
25 exempt under section 24A, 25A or 27A (the relevant
26 2-year exemption provision) because of the application
27 of section 28B(2), and the subdivision occurs in the
28 first assessment year of the exemption period for the
29 relevant 2-year exemption provision, the exemption
30 applies for the second year of the exemption period to
31 the private residential property that is each new lot
32 referred to in section 28B(2)(b) rather than to the
33 parent lot.
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Revenue Laws Amendment Bill 2018
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Amendments commencing on 1 July 2019 Division 3
s. 140
1 28E. Ownership of land during period when land
2 subdivided but certificates of title not issued
3 (1) This section applies if --
4 (a) a parent lot that is owned jointly by 2 or more
5 persons (the joint owners) is subdivided; and
6 (b) there is a period of time (the relevant period)
7 between the subdivision occurring and a
8 certificate of title for any new lot being
9 registered under the Transfer of Land Act 1893;
10 and
11 (c) either --
12 (i) after the certificate of title is registered,
13 each new lot is owned by some, but not
14 all, of the joint owners (the relevant
15 owners); or
16 (ii) the Commissioner is satisfied that after
17 the certificate of title is registered, each
18 new lot will be owned by some, but not
19 all, of the joint owners (the relevant
20 owners).
21 (2) For the purposes of this Division, the Commissioner
22 may treat each new lot as being owned during the
23 relevant period by the relevant owners only rather than
24 by all of the joint owners.
25
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Revenue Laws Amendment Bill 2018
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Division 3 Amendments commencing on 1 July 2019
s. 141
1 141. Schedule 1 amended
2 At the end of Schedule 1 Division 6 insert:
3
4 21. Application of amendments relating to subdivision of
5 land
6 (1) Part 3 Division 2 Subdivision 2 (other than section 28E)
7 applies in relation to exemption periods (as defined in
8 section 28A) that begin on or after 1 July 2019.
9 (2) Section 28E and the Glossary clause 2(2) apply in relation to
10 assessment years that begin on or after 1 July 2019, whether
11 the subdivision referred to in whichever of those provisions
12 is relevant occurs before or after 1 July 2019.
13 (3) Despite subclauses (1) and (2), Part 3 Division 2
14 Subdivision 2 and the Glossary clause 2(2) do not apply for
15 the purposes of determining whether private residential
16 property is exempt under section 24, 24A, 25, 25A or 27A
17 (the relevant exemption provision) if the commencement
18 date for the construction or refurbishment referred to in the
19 relevant exemption provision is before 1 July 2019.
20
21 142. Glossary clause 2 amended
22 After the Glossary clause 2(1) insert:
23
24 (2) Despite subclause (1), if --
25 (a) land that constitutes a lot (the parent lot) is
26 subdivided resulting in 2 or more new lots referred
27 to in paragraph (a)(vii) or (c) of the definition of lot
28 in subclause (1) coming into existence, the parent
29 lot ceases to be a lot for the purposes of this Act
30 when the new lots come into existence; or
31 (b) land that constitutes 2 or more lots (the parent lots)
32 is subdivided resulting in a single new lot referred
33 to in paragraph (a)(vii) or (c) of the definition of lot
34 in subclause (1) coming into existence, the parent
page 146
Revenue Laws Amendment Bill 2018
Land Tax Assessment Act 2002 amended Part 3
Amendment commencing when Community Titles Act 2018 s. Division 4
219(3) commences
s. 143
1 lots cease to be lots for the purposes of this Act
2 when the new lot comes into existence.
3 (2A) Subclause (2) does not prevent land tax from being payable
4 on a parent lot, or an exemption, concession or rebate from
5 applying in relation to the parent lot, for the financial year in
6 which the land is subdivided or any earlier financial year.
7 (2B) Subclause (2) does not apply to a subdivision of land in
8 circumstances prescribed by the regulations.
9
10 Division 4 -- Amendment commencing when Community Titles
11 Act 2018 s. 219(3) commences
12 143. Glossary clause 2 amended
13 In the Glossary clause 2(2)(a) and (b) delete "paragraph (a)(vii)"
14 and insert:
15
16 paragraph (a)(via), (vii)
17
page 147
Revenue Laws Amendment Bill 2018
Part 4 Pay-roll Tax Assessment Act 2002 amended
s. 144
1 Part 4 -- Pay-roll Tax Assessment Act 2002 amended
2 144. Act amended
3 This Part amends the Pay-roll Tax Assessment Act 2002.
4 145. Section 9FA amended
5 Delete section 9FA(3)(a) and (b) and insert:
6
7 (a) the rate determined by the Commissioner of
8 Taxation of the Commonwealth under the ITA
9 Act section 28-25(4) as the rate of cents per
10 kilometre for cars for the income year
11 corresponding to the financial year immediately
12 preceding the financial year in which the
13 allowance is paid or payable; or
14 (b) if no determination referred to in paragraph (a)
15 is in force -- the rate prescribed in the
16 regulations.
17
18
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