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New South Wales
State Revenue and Other Legislation
Amendment (Budget Measures) Bill 2014
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
This Bill is cognate with the Appropriation Bill 2014.
Overview of Bill
The objects of this Bill are as follows:
(a) to amend the Duties Act 1997:
(i) to establish 1 July 2016 as the date for the abolition of the following duties:
(A) duty on transfers of marketable securities and commercial fishery shares,
(B) duty on transfers of business assets,
(C) duty on transfers of statutory licences or permissions and gaming machine
entitlements,
(D) mortgage duty, and
(ii) to limit the availability of the New Home Grant to one transaction per financial year,
and
(iii) to limit the availability of the New Home Grant to declared Australian nationals, and
(iv) to remove time limits on applying for the New Home Grant,
(b) to amend the First Home Owner Grant (New Homes) Act 2000 to increase the first home
owner grant cap from $650,000 to $750,000,
(c) to repeal the Payroll Tax Rebate Scheme (Disability Employment) Act 2011,
(d) to permit royalties under the Mining Act 1992, Offshore Minerals Act 1999, Petroleum
(Offshore) Act 1982 and Petroleum (Onshore) Act 1991 to be assessed and recovered by the
b2014-022-33.d10
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Explanatory note
Chief Commissioner of State Revenue as taxes under the Taxation Administration Act
1996,
(e) to confirm and remake the provisions of the Industrial Relations (Public Sector Conditions
of Employment) Regulation 2011.
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act.
Clause 3 provides that explanatory notes in the Schedules do not form part of the proposed Act.
Clause 4 provides for the automatic repeal of the proposed Act after its commencement.
Schedules 1-5 make the amendments outlined in the Overview and other miscellaneous
amendments. The amendments are explained in more detail in the explanatory notes set out in the
Schedules.
Page 2
First print
New South Wales
State Revenue and Other Legislation
Amendment (Budget Measures) Bill 2014
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Explanatory notes 2
4 Repeal of this Act 2
Schedule 1 Amendment of Duties Act 1997 No 123 3
Schedule 2 Amendment of First Home Owner Grant (New Homes) Act 2000 No 21 7
Schedule 3 Amendments relating to payroll tax rebate scheme 8
Schedule 4 Amendments relating to royalties 9
Schedule 5 Amendments relating to public sector employee costs 27
b2014-022-33.d10
New South Wales
State Revenue and Other Legislation
Amendment (Budget Measures) Bill 2014
No , 2014
A Bill for
An Act to make miscellaneous amendments to certain State revenue and other legislation in
connection with the Budget for the year 2014-2015; and for other purposes.
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the State Revenue and Other Legislation Amendment (Budget Measures) 3
Act 2014. 4
2 Commencement 5
(1) This Act commences, or is taken to have commenced, on 1 July 2014, except as 6
provided by subsection (2). 7
(2) Schedule 5 commences on the date of assent to this Act. 8
3 Explanatory notes 9
The matter appearing under the heading "Explanatory note" in any of the Schedules 10
does not form part of this Act. 11
4 Repeal of this Act 12
Section 30C (Automatic repeal of amending Acts that have commenced) of the 13
Interpretation Act 1987 is taken to apply to this Act as if this Act were an amending 14
Act for the purposes of that section. 15
Page 2
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
Schedule 1 Amendment of Duties Act 1997 No 123 1
[1] Section 11 What is "dutiable property"? 2
Omit "on a date or dates to be appointed by proclamation" from the note to the section. 3
Insert instead "on 1 July 2016". 4
[2] Section 11, note 5
Omit "on the abolition date appointed by the Governor". Insert instead "on 1 July 2016". 6
[3] Section 28 Apportionment--business assets in this and other jurisdictions 7
Omit section 28 (6). Insert instead: 8
(6) This section applies only to dutiable transactions that occur before 1 July 2016 9
(the date on which duty on transfers of business assets is abolished). 10
[4] Chapter 2, Part 4 11
Omit the Part. Insert instead: 12
Part 4 Abolition of various duties 13
34 Abolition of duty on transfers of marketable securities and commercial fishery 14
shares 15
(1) On and from 1 July 2016, marketable securities and commercial fishery shares 16
are not dutiable property (despite section 11). 17
(2) Subsection (1) does not apply in respect of any transfer or transaction with 18
respect to marketable securities or commercial fishery shares that occurs 19
before 1 July 2016 and, accordingly, does not affect any requirement to pay 20
duty under this Chapter in respect of the transfer or transaction. 21
(3) In this section: 22
commercial fishery share means a share in a share management fishery 23
(within the meaning of the Fisheries Management Act 1994). 24
35 Abolition of duty on transfers of business assets 25
(1) On and from 1 July 2016, a business asset is not dutiable property (despite 26
section 11). 27
(2) Subsection (1) does not apply in respect of any transfer or transaction with 28
respect to business assets that occurs before 1 July 2016 and, accordingly, does 29
not affect any requirement to pay duty under this Chapter in respect of the 30
transfer or transaction. 31
36 Abolition of duty on transfers of statutory licences or permissions and gaming 32
machine entitlements 33
(1) On and from 1 July 2016, a statutory licence or permission, or a gaming 34
machine entitlement, is not dutiable property (despite section 11). 35
(2) Subsection (1) does not apply in respect of any transfer or transaction with 36
respect to statutory licences or permissions, or gaming machine entitlements, 37
that occurs before 1 July 2016 and, accordingly, does not affect any 38
requirement to pay duty under this Chapter in respect of the transfer or 39
transaction. 40
Page 3
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
(3) In this section: 1
gaming machine entitlement means a gaming machine entitlement within the 2
meaning of the Gaming Machines Act 2001. 3
statutory licence or permission means a statutory licence or permission under 4
a New South Wales law. 5
37 Anti-avoidance measures 6
Section 35 or 36 does not apply in respect of a transfer or transaction that 7
occurs on or after 1 July 2016 if: 8
(a) the transfer or transaction replaces a transfer or transaction involving 9
the same business asset, statutory licence or permission, or gaming 10
machine entitlement, that occurred before 1 July 2016, or 11
(b) the transfer or transaction is made or entered into pursuant to an option 12
to purchase the business asset, statutory licence or permission, or 13
gaming machine entitlement, that was granted before 1 July 2016, or 14
(c) the transfer or transaction was made or entered into pursuant to another 15
arrangement, made before 1 July 2016, the only or main purpose of 16
which was to defer the transfer or transaction until 1 July 2016, or later, 17
so that duty would not be chargeable under this Chapter on the transfer 18
or transaction. 19
[5] Section 65 Exemptions from duty 20
Omit "on a date to be appointed by proclamation under section 33B" wherever occurring in 21
the notes to section 65 (6) and (7). 22
Insert instead "on 1 July 2016". 23
[6] Sections 66 and 274 (2), notes 24
Omit "on a date to be appointed by proclamation under section 33B" wherever occurring. 25
Insert instead "on 1 July 2016". 26
[7] Sections 85A and 85B 27
Insert after section 85: 28
85A Maximum of one eligible transaction per financial year 29
(1) A transaction (a new transaction) is not eligible if: 30
(a) a payment of a grant under this Division has been made to the 31
transferee, or any one of them, in respect of another transaction, and 32
(b) that other transaction occurred in the same financial year as the new 33
transaction. 34
(2) For the purposes of this section, the date on which a transaction occurs is: 35
(a) in the case of an agreement for sale or transfer or a transfer executed in 36
conformity with an agreement for sale or transfer--the date on which 37
the agreement for sale or transfer is entered into, or 38
(b) in the case of a transfer executed otherwise than in conformity with an 39
agreement for sale or transfer, the date on which the transfer occurs. 40
(3) In this section: 41
financial year means a year ending on 30 June. 42
transaction means an agreement for sale or transfer or a transfer. 43
Page 4
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
85B Grant not available to foreign nationals 1
(1) An agreement or transfer is eligible only if the transferee or, if there is more 2
than one transferee, each of the transferees is a declared Australian national. 3
(2) A transferee is a declared Australian national if the applicant has provided to 4
the Chief Commissioner, in an approved form: 5
(a) such information as the Chief Commissioner requires to identify the 6
transferee, and 7
(b) a declaration to the effect that the transferee is an Australian citizen, 8
Australian resident or Australian-owned body. 9
(3) For the purposes of this section: 10
(a) Australian citizen has the same meaning as in the Australian 11
Citizenship Act 2007 of the Commonwealth, and 12
(b) Australian resident means: 13
(i) the holder of a permanent visa within the meaning of section 30 14
of the Migration Act 1958 of the Commonwealth, or 15
(ii) a New Zealand citizen who holds a special category visa within 16
the meaning of section 32 of the Migration Act 1958 of the 17
Commonwealth, and 18
(c) Australian-owned body means a corporation or body corporate that is 19
at least 50% owned or controlled by persons who are Australian citizens 20
or Australian residents. 21
(4) However, if a transferee is acquiring the land in a trustee capacity, the 22
transferee is an Australian citizen, Australian resident or Australian-owned 23
body only if at least 50% of the beneficial interest in the land is held by 24
Australian citizens, Australian residents or Australian-owned bodies. 25
(5) The Chief Commissioner may reject or revoke approval of an application if 26
satisfied the applicant has made a false declaration under this section. 27
[8] Section 87A Making of applications 28
Omit section 87A (2) and (3). 29
[9] Section 124 30
Omit the section. Insert instead: 31
124 Abolition of duty charged by this Part 32
(1) The duty charged by this Part is abolished on 1 July 2016. 33
(2) The duty charged by this Part remains chargeable on a dutiable entitlement 34
that is acquired before 1 July 2016. 35
[10] Section 137A 36
Omit the section. Insert instead: 37
137A Abolition of duty charged by this Part 38
(1) The duty charged by this Part is abolished on 1 July 2016. 39
(2) The duty charged by this Part remains chargeable on an allotment of shares 40
referred to in section 138 that occurs before 1 July 2016. 41
Page 5
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
[11] Section 203A Abolition of mortgage duty 1
Omit section 203A (1) and (1A). Insert instead: 2
(1) Mortgage duty is abolished on and from 1 July 2016 (the abolition date). 3
[12] Schedule 1 Savings, transitional and other provisions 4
Insert at the end of the Schedule with appropriate Part and clause numbering: 5
Part Provisions consequent on enactment of State 6
Revenue and Other Legislation Amendment 7
(Budget Measures) Act 2014 8
Changes to New Home Grant Scheme 9
The amendments to Division 1A of Part 8 of Chapter 2 made by the State 10
Revenue and Other Legislation Amendment (Budget Measures) Act 2014 11
apply to the following: 12
(a) agreements for sale or transfer entered into on or after 1 July 2014, 13
(b) transfers that occur on or after 1 July 2014, other than transfers made in 14
conformity with an agreement for sale or transfer entered into before 15
1 July 2014. 16
Explanatory note 17
Items [4] and [11] of the proposed amendments to the Duties Act 1997 establish 1 July 2016 as the 18
date for the abolition of the following duties: 19
(a) duty on transfers of marketable securities and commercial fishery shares, 20
(b) duty on transfers of business assets, 21
(c) duty on transfers of statutory licences or permissions and gaming machine entitlements, 22
(d) mortgage duty. 23
At present, the duties concerned are to be abolished on a date to be set by the Governor by 24
proclamation. 25
The amendments also include anti-avoidance measures, to prevent the duty from being avoided in 26
anticipation of the abolition date. 27
Items [9] and [10] establish 1 July 2016 as the date for the abolition of duty on the acquisition of a 28
dutiable entitlement arising from a capital reduction or rights alterations, and duty on an allotment of 29
shares by direction. At present, those duties are due to be abolished on a date to be set by the 30
Governor for the abolition of duty on the transfer of marketable securities and commercial fishery 31
shares. 32
Items [1]-[3], [5] and [6] are consequential amendments. 33
Item [7] restricts eligibility for a grant under the New Home Grant Scheme to one transaction per 34
financial year. If a transferee has already received a grant or part of a grant under the Scheme in 35
relation to a transaction, the transferee will cease to be eligible for a further grant in relation to another 36
transaction that occurs in the same financial year. 37
Item [7] also restricts eligibility for a grant under the New Home Grant Scheme to transferees who are 38
declared Australian nationals. A transferee is a declared Australian national if the applicant for the 39
grant has provided to the Chief Commissioner, in an approved form: 40
(a) such information as the Chief Commissioner requires to identify the transferee, and 41
(b) a declaration to the effect that the transferee is an Australian citizen, Australian resident or 42
Australian-owned body. 43
Under section 55 of the Taxation Administration Act 1996 it is an offence to give false information to 44
the Chief Commissioner. It is also an offence under section 58 of that Act to falsify the identity of a 45
person. 46
Item [8] removes the time limit (currently 3 months) for making an application under the New Home 47
Grant Scheme. 48
Item [12] provides for transitional matters. 49
Page 6
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 2 Amendment of First Home Owner Grant (New Homes) Act 2000 No 21
Schedule 2 Amendment of First Home Owner Grant (New 1
Homes) Act 2000 No 21 2
[1] Section 13A First home owner grant cap 3
Omit "1 January 2010" from section 13A (1). Insert instead "1 July 2014". 4
[2] Section 13A (2) (a) 5
Omit "$650,000". Insert instead "$750,000". 6
[3] Schedule 1 Savings, transitional and other provisions 7
Insert after Part 11: 8
Part 12 Provisions consequent on enactment of State 9
Revenue and Other Legislation Amendment 10
(Budget Measures) Act 2014 11
20 Change to first home owner grant cap 12
(1) The amendment to section 13A made by the State Revenue and Other 13
Legislation Amendment (Budget Measures) Act 2014 does not apply in respect 14
of an eligible transaction that has a commencement date that is before 15
1 July 2014. 16
(2) Section 13A, as in force immediately before the amendment, continues to 17
apply in respect of such an eligible transaction. 18
(3) Section 13A, as in force immediately before the amendment, also applies to an 19
eligible transaction with a commencement date on or after 1 July 2014 if the 20
Chief Commissioner is satisfied that: 21
(a) the contract concerned replaces a contract made before 1 July 2014, and 22
(b) the replaced contract was a contract for the purchase of the same home 23
or a comprehensive home building contract to build the same or a 24
substantially similar home. 25
Explanatory note 26
Item [2] of the proposed amendments to the First Home Owner Grant (New Homes) Act 2000 27
increases the first home owner grant cap from $650,000 to $750,000. This means that an eligible 28
transaction that has a total value of up to $750,000 will qualify for the first home owner grant for new 29
homes. 30
Items [1] and [3] apply the increase in the cap to any eligible transaction that has a commencement 31
date of on or after 1 July 2014. Item [3] also includes an anti-avoidance measure. 32
Page 7
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 3 Amendments relating to payroll tax rebate scheme
Schedule 3 Amendments relating to payroll tax rebate 1
scheme 2
3.1 Payroll Tax Rebate Scheme (Disability Employment) Act 2011 No 54 3
The Payroll Tax Rebate Scheme (Disability Employment) Act 2011 is repealed. 4
Explanatory note 5
Schedule 3.1 repeals the Payroll Tax Rebate Scheme (Disability Employment) Act 2011. The 6
repealed Act provides for the payment of rebates in respect of the employment of persons who, 7
because of a disability, are members of the target group under the Disability Services Act 1993. 8
3.2 Payroll Tax Act 2007 No 21 9
Schedule 3 Savings, transitional and other provisions 10
Insert at the end of the Schedule with appropriate Part and clause numbering: 11
Part Provision consequent on enactment of State 12
Revenue and Other Legislation Amendment 13
(Budget Measures) Act 2014 14
Repeal of Payroll Tax Rebate Scheme (Disability Employment) Act 2011 15
The Payroll Tax Rebate Scheme (Disability Employment) Act 2011, as in force 16
immediately before its repeal, continues to apply: 17
(a) in relation to the employment of a person if the employment 18
commenced before the repeal of that Act, and 19
(b) in relation to a claim for a rebate, or a rebate, in respect of such 20
employment. 21
Explanatory note 22
Schedule 3.2 provides for the continuation of the Payroll Tax Rebate Scheme (Disability Employment) 23
Act 2011 in respect of employment that commenced before the repeal of that Act. 24
Page 8
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
Schedule 4 Amendments relating to royalties 1
4.1 Mining Act 1992 No 29 2
[1] Sections 11A (2) (b), 26 (2) (a), 44 (2) (a), 192 (2), 282 (1), (1A) and (2), 284 (1) and (1A), 3
286 (1), 286B (2), 287 (1), 288 (1) and 291 (1) 4
Omit "to the Minister" wherever occurring. Insert instead "to the Crown". 5
[2] Section 26 Conditions of exploration licence 6
Omit section 26 (3). Insert instead: 7
(3) Part 14 applies: 8
(a) to royalty payable under a condition referred to in subsection (2) (a) in 9
the same way as it applies to royalty payable on a mineral recovered 10
under a mining lease, and 11
(b) to the person by whom royalty is payable as if the person were the 12
holder of a mining lease. 13
[3] Section 44 Conditions of assessment lease 14
Omit section 44 (3). Insert instead: 15
(3) Part 14 applies: 16
(a) to royalty payable under a condition referred to in subsection (2) (a) in 17
the same way as it applies to royalty payable on a mineral recovered 18
under a mining lease, and 19
(b) to the person by whom royalty is payable as if the person were the 20
holder of a mining lease. 21
[4] Section 192 Conditions of mineral claim 22
Omit section 192 (3). Insert instead: 23
(3) Part 14 applies: 24
(a) to royalty payable under such a condition in the same way as it applies 25
to royalty payable on a mineral recovered under a mining lease, and 26
(b) to the person by whom royalty is payable as if the person were the 27
holder of a mining lease. 28
[5] Section 284 Liability to pay royalty--privately owned minerals 29
Omit section 284 (2). Insert instead: 30
(2) If royalty (including any interest and penalty tax on royalty) is paid to or 31
recovered by the Chief Commissioner in respect of a privately owned mineral, 32
the Chief Commissioner is to pay to the Minister seven-eighths of the amount 33
so paid or recovered. 34
(2A) The Minister is to pay that amount to the owner of the mineral. 35
[6] Section 287 Exemption from royalty 36
Insert after section 287 (1): 37
(1A) The Chief Commissioner is to remit the interest or penalty tax on any royalty 38
that ceases to be payable because of a decision of the Minister under this 39
section. 40
Page 9
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
[7] Section 287A Waiver of payment of additional royalty for coal 1
Insert after section 287A (3): 2
(4) The Chief Commissioner is to remit the interest or penalty tax on any royalty 3
the payment of which is waived under this section. 4
[8] Section 289 5
Omit the section. Insert instead: 6
289 Returns 7
(1) The holder of a mining lease is required to lodge returns with the Chief 8
Commissioner, at such times, and in respect of such periods, as may be 9
prescribed by the regulations. 10
(2) A return is to include: 11
(a) the information prescribed by the regulations, and 12
(b) any other information the Chief Commissioner requires for the purposes 13
of the assessment and recovery of royalty under this Act. 14
(3) The Chief Commissioner is to give a copy to the Minister of each return lodged 15
with the Chief Commissioner. 16
Note. The Chief Commissioner is responsible for the assessment and recovery of 17
royalties under the Taxation Administration Act 1996. That Act requires returns to be in 18
an approved form. The Chief Commissioner can also approve special arrangements for 19
the lodging of returns under that Act. 20
[9] Section 291 Payment of royalty 21
Omit section 291 (2) and (3). Insert instead: 22
(2) A tax default occurs for the purposes of the Taxation Administration Act 1996 23
if royalty payable to the Crown: 24
(a) is not paid by the time that it becomes payable in accordance with the 25
regulations (unless paragraph (b) applies), or 26
(b) in the case of royalty payable on demand by the Minister--is not paid 27
within 28 days of the demand for its payment. 28
(3) The regulations may require the payment of any royalty to accompany a return 29
made under this Part. 30
[10] Sections 291A and 292 31
Omit section 292. Insert instead: 32
291A Assessment and recovery of royalties 33
(1) Royalty payable under this Act is a tax for the purposes of the Taxation 34
Administration Act 1996. 35
Note. The Taxation Administration Act 1996 applies to the assessment and recovery 36
of royalty. 37
(2) The royalty is payable to the Chief Commissioner in accordance with that Act. 38
(3) The Minister is to provide the Chief Commissioner with any information 39
necessary to enable the Chief Commissioner to exercise the Chief 40
Commissioner's functions with respect to royalties under this Act and the 41
Taxation Administration Act 1996. 42
(4) A certificate that is signed by the Minister and that states that, on a specified 43
date, the Minister made a determination, or did anything else, under any of the 44
Page 10
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
following provisions, is admissible in evidence in any proceedings and is 1
evidence of the fact or facts so certified: 2
(a) section 283 (3) (c) or (5), 3
(b) section 286C (1), 4
(c) section 286D, 5
(d) section 291 (1) (b), 6
(e) any other provision of this Act relating to royalties that is prescribed by 7
the regulations. 8
(5) The Chief Commissioner may request a certificate under this section and a 9
certificate is to be provided in accordance with that request. 10
292 Disclosure of royalty information 11
(1) The Minister, or any other person engaged in the administration of this Act, 12
may disclose royalty information obtained from a tax officer under this Act or 13
the Taxation Administration Act 1996 in connection with the administration or 14
execution of this Act. 15
(2) This section applies despite section 84 of the Taxation Administration 16
Act 1996 but subject to any restrictions in this Act. 17
Note. See section 365 of this Act. 18
(3) In this section: 19
royalty information means information in a return lodged with the Chief 20
Commissioner under this Act or any other information relating to the 21
assessment or recovery of royalty. 22
tax officer has the same meaning as it has in the Taxation Administration 23
Act 1996. 24
[11] Section 365 Disclosure of information 25
Insert after section 365 (2) (before the penalty): 26
(3) A reference in this section to information obtained in connection with the 27
administration or execution of this Act includes a reference to a return or other 28
information relating to royalty under this Act that is obtained by the Minister, 29
or a delegate of the Minister, from a tax officer (within the meaning of the 30
Taxation Administration Act 1996). 31
[12] Schedule 6 Savings, transitional and other provisions 32
Insert at the end of the Schedule with appropriate Part and clause numbering: 33
Part Provisions consequent on enactment of State 34
Revenue and Other Legislation Amendment 35
(Budget Measures) Act 2014 36
Definition 37
In this Part: 38
Budget Measures Act means the State Revenue and Other Legislation 39
Amendment (Budget Measures) Act 2014. 40
Page 11
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
Assessment and recovery of royalties under Taxation Administration Act 1996 1
(1) An amendment made to this Act or the regulations by the Budget Measures 2
Act applies only to royalty under this Act that is payable in respect of a period 3
that commences on or after the commencement of the amendment. 4
(2) This Act and the regulations, as in force before such an amendment, continue 5
to apply to royalty in respect of a period commencing before the 6
commencement of the amendment. 7
Requirements to pay royalty to the Minister 8
(1) A requirement imposed by or under this Act to pay royalty under this Act to 9
the Minister is taken, from the relevant commencement date, to be a 10
requirement to pay royalty under this Act to the Crown. 11
(2) A reference in any document to royalty payable to the Minister under this Act 12
is taken, from the relevant commencement date, to be a reference to royalty 13
payable to the Crown under this Act. 14
(3) In this clause, the relevant commencement date means the date of 15
commencement of section 291A, as inserted by the Budget Measures Act. 16
Continuation of special arrangements for returns 17
(1) An authority given to the holder of a mining lease under section 289 (2) that 18
would, but for the substitution of that subsection by the Budget Measures Act, 19
have effect in respect of royalty payable for a period commencing on or after 20
1 July 2014 is taken, on that substitution, to be an approval given by the Chief 21
Commissioner under section 37 of the Taxation Administration Act 1996. 22
(2) The Chief Commissioner may vary or cancel that approval in accordance with 23
that Act. 24
[13] Dictionary 25
Insert in alphabetical order: 26
Chief Commissioner means the Chief Commissioner of State Revenue. 27
Explanatory note 28
Item [10] of the proposed amendments to the Mining Act 1992 provides that royalties payable under 29
that Act are taxes for the purposes of the Taxation Administration Act 1996. Accordingly, royalties will 30
be assessed and recoverable by the Chief Commissioner of State Revenue (the Chief 31
Commissioner) under that Act. The amendment requires the Minister to provide the Chief 32
Commissioner with any information necessary to enable the Chief Commissioner to exercise his or 33
her functions with respect to royalties. The Minister is given power to certify certain decisions made 34
under the Act that are relevant to the calculation of royalty. The amendment also removes a provision 35
that makes royalty a debt recoverable in a court of competent jurisdiction. The provision is redundant 36
because the Taxation Administration Act 1996 provides that all taxes are recoverable by the Chief 37
Commissioner as a debt in a court of competent jurisdiction. 38
Item [1] is a consequential amendment. At present, royalties are payable to the Minister. The 39
amendment makes it clear that royalties are payable to the Crown. 40
Item [10] also makes it clear that the disclosure of royalty information by the Minister remains subject 41
to the Mining Act 1992, and not the Taxation Administration Act 1996. Item [11] is a consequential 42
amendment. 43
Item [5] enables the Chief Commissioner to pay part of the royalty collected in respect of privately 44
owned minerals to the Minister, so as to enable the Minister to exercise his or her functions with 45
respect to the payment of royalties to owners of privately owned minerals. 46
Item [8] requires royalty returns to be lodged with the Chief Commissioner (instead of the Minister). 47
The Taxation Administration Act 1996 provides for the form in which returns must be provided. The 48
Chief Commissioner is to provide a copy of the returns to the Minister. The amendments continue to 49
permit the regulations to prescribe mandatory information to be included in returns. The Chief 50
Commissioner may also require additional information. The amendment removes a provision that 51
enables the Minister to approve special return arrangements, as the Chief Commissioner can do that 52
Page 12
State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
under the Taxation Administration Act 1996. Item [8] also removes a provision that makes it an 1
offence to fail to furnish a return, or to include false or misleading information in a return, as to do so 2
will be an offence under existing provisions of the Taxation Administration Act 1996 (sections 55 3
and 57). 4
Items [2]-[4] are consequential amendments to ensure that the obligation to lodge a royalty return 5
applies not only to holders of a mining lease but to other authorisation holders who are liable to pay 6
royalty under the Act. 7
Item [9] makes it clear that a tax default for the purposes of the Taxation Administration Act 1996 8
occurs if royalty is not paid when it becomes due and payable. The amendment also removes a 9
provision that enables the Minister to impose interest for late payment of royalty. The Taxation 10
Administration Act 1996 already permits the Chief Commissioner to impose interest and other 11
penalties for late payment of taxes, and those provisions will now apply to royalties. 12
Items [6] and [7] require the Chief Commissioner to remit interest and penalty tax if the Minister waives 13
payment of royalty or part of royalty. 14
Item [12] provides for transitional matters. 15
Item [13] inserts a definition of Chief Commissioner in the Dictionary. 16
4.2 Mining Regulation 2010 17
[1] Clause 13 Activities taken not to be prospecting or mining 18
Omit "to the Minister" from clause 13 (5). Insert instead "to the Crown". 19
[2] Clause 62 Rates of royalty for minerals other than coal 20
Omit "Minister" wherever occurring in clause 62 (2). Insert instead "Chief Commissioner". 21
[3] Clause 63 Rates of royalty for coal 22
Omit "Minister" from clause 63 (2). Insert instead "Chief Commissioner". 23
[4] Clause 63 (3) and (4) 24
Omit the subclauses. 25
[5] Clause 63A 26
Insert after clause 63: 27
63A Disputes 28
(1) The Chief Commissioner is to refer a dispute about any of the following 29
matters to the Minister and the Minister may make a determination with 30
respect to that matter: 31
(a) the quantity of minerals disposed of or held by the holder of a mining 32
lease, 33
(b) the quantity of coal disposed of by the holder of a mining lease, 34
(c) whether, and the extent to which, coal was recovered by open cut 35
mining, underground mining or deep underground mining. 36
(2) Any determination made by the Minister with respect to the matter is final and 37
binding. 38
(3) A certificate that is signed by the Minister and that states that, on a specified 39
date, the Minister made a determination under this clause is admissible in 40
evidence in any proceedings and is evidence of the fact or facts so certified. 41
[6] Clause 64 Returns 42
Omit "289 (1)" from clause 64 (1). Insert instead "289". 43
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Schedule 4 Amendments relating to royalties
[7] Clause 64 (1) (a) 1
Omit "be in a form that shows". Insert instead "include". 2
[8] Clause 64 (1) (a) (iii) 3
Omit "Director-General to be shown". Insert instead "Chief Commissioner to be included". 4
[9] Clause 64 (1) (b), (1A), (1B) and (1C) 5
Omit "furnished" and "furnish" wherever occurring. 6
Insert instead "lodged" and "lodge" respectively. 7
[10] Clause 65 Payment of royalty 8
Omit "to the Minister" from clause 65 (1). Insert instead "to the Crown". 9
Explanatory note 10
The proposed amendments to the Mining Regulation 2010 are consequential on the amendments to 11
the Mining Act 1992 described above. 12
The amendments include provision for the Chief Commissioner to make royalty determinations that 13
are currently made by the Minister. In the event of a dispute, the matter is to be referred to the Minister, 14
who may make a final determination with respect to the matter. 15
4.3 Offshore Minerals Act 1999 No 42 16
[1] Section 5 Interpretation 17
Insert in alphabetical order: 18
Chief Commissioner means the Chief Commissioner of State Revenue. 19
[2] Section 27 Confidential information 20
Insert after section 27 (2): 21
(3) A reference in this section to information given to the Minister by a licence 22
holder includes a reference to a return or other information relating to royalty 23
under this Act that is obtained by the Minister, or a delegate of the Minister, 24
from a tax officer (within the meaning of the Taxation Administration 25
Act 1996). 26
[3] Section 429 Royalty 27
Omit "to the Minister". Insert instead "to the State". 28
[4] Section 431 Reduction of royalty in certain cases 29
Insert after section 431 (4): 30
(5) The Chief Commissioner is to be advised of any determination made under 31
this section. 32
[5] Section 432 Fixing of landed value 33
Insert at the end of the section: 34
(2) A certificate that is signed by the Minister and that states that, on a specified 35
date, the Minister made a determination under subsection (1) (b) is admissible 36
in evidence in any proceedings and is evidence of the fact or facts so certified. 37
(3) The Chief Commissioner may request a certificate under this section and a 38
certificate is to be provided in accordance with that request. 39
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Schedule 4 Amendments relating to royalties
[6] Section 433 Fixing of quantity 1
Insert at the end of the section: 2
(2) A certificate that is signed by the Minister and that states that, on a specified 3
date, the Minister made a determination under subsection (1) (b) is admissible 4
in evidence in any proceedings and is evidence of the fact or facts so certified. 5
(3) The Chief Commissioner may request a certificate under this section and a 6
certificate is to be provided in accordance with that request. 7
[7] Section 434 Time for payment 8
Insert at the end of the section: 9
(2) A failure to pay the royalty within one month after the last day of that royalty 10
period is a tax default for the purposes of the Taxation Administration 11
Act 1996. 12
Note. If a tax default occurs, interest and penalty tax may be charged under the 13
Taxation Administration Act 1996. 14
(3) A tax default does not occur in respect of an amount of royalty payable until 15
the expiration of 7 days after: 16
(a) the landed value of the mineral has been agreed or determined under 17
section 432, where the rate of royalty is related to the landed value of 18
the mineral, or 19
(b) the quantity of the mineral has been agreed or determined under 20
section 433, where the rate of royalty is related to the quantity of the 21
mineral recovered. 22
[8] Section 435 State to pay 40% of royalties to Commonwealth 23
Omit "penalty" from the definition of royalty in section 435 (3). 24
Insert instead "interest or penalty tax". 25
[9] Sections 435A and 435B 26
Insert after section 435: 27
435A Royalty returns 28
(1) A person who is required to pay royalty under this Act is required to lodge with 29
the Chief Commissioner a return relating to each royalty period. 30
(2) The return is to be lodged with the Chief Commissioner within one month after 31
the last day of that royalty period. 32
(3) The Chief Commissioner is to give a copy to the Minister of each return lodged 33
with the Chief Commissioner. 34
(4) The Minister may give directions to the Chief Commissioner as to the 35
information that is to be included in the form of return approved under the 36
Taxation Administration Act 1996. 37
Note. The Taxation Administration Act 1996 requires a return to be in a form approved 38
by the Chief Commissioner. 39
435B Disclosure of royalty information 40
(1) The Minister, or a person engaged in the administration of this Act, may 41
disclose royalty information obtained from a tax officer under this Act or the 42
Taxation Administration Act 1996 in connection with the administration or 43
execution of this Act. 44
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Schedule 4 Amendments relating to royalties
(2) This section applies despite section 84 of the Taxation Administration 1
Act 1996 but subject to any restrictions in this Act. 2
Note. See sections 374-376 of this Act. 3
(3) In this section: 4
royalty information means information in a return lodged with the Chief 5
Commissioner under this Act or any other information relating to the 6
assessment or recovery of royalty. 7
tax officer has the same meaning as it has in the Taxation Administration 8
Act 1996. 9
[10] Section 436 Penalty if fee overdue 10
Omit "or amount of royalty" from section 436 (1). 11
[11] Section 436 (2) 12
Omit "or royalty" wherever occurring. 13
[12] Section 436 (3) 14
Omit the subsection. 15
[13] Section 437 Fees recoverable as debts 16
Omit ", royalty or penalty". 17
[14] Section 437A 18
Insert after section 437: 19
437A Assessment and recovery of royalties 20
(1) Royalty payable under this Act is a tax for the purposes of the Taxation 21
Administration Act 1996. 22
Note. The Taxation Administration Act 1996 applies to the assessment and recovery 23
of royalty. 24
(2) The royalty is payable to the Chief Commissioner in accordance with that Act. 25
(3) The Minister is to ensure that the Chief Commissioner is provided with any 26
information necessary to enable the Chief Commissioner to exercise the Chief 27
Commissioner's functions with respect to royalties under this Act and the 28
Taxation Administration Act 1996. 29
[15] Schedule 2 Savings and transitional provisions 30
Insert before clause 1: 31
Part 1 Preliminary 32
[16] Schedule 2, clause 1 33
Insert at the end of clause 1 (1): 34
any Act that amends this Act 35
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Schedule 4 Amendments relating to royalties
[17] Schedule 2, Part 2, heading 1
Insert after clause 1: 2
Part 2 Provisions consequent on enactment of this Act 3
[18] Schedule 2, Part 3 4
Insert after clause 5: 5
Part 3 Provisions consequent on enactment of State 6
Revenue and Other Legislation Amendment 7
(Budget Measures) Act 2014 8
6 Assessment and recovery of royalties under Taxation Administration Act 1996 9
(1) An amendment made to this Act or the regulations by the State Revenue and 10
Other Legislation Amendment (Budget Measures) Act 2014 applies only to 11
royalty under this Act that is payable in respect of a royalty period that 12
commences on or after the commencement of the amendment. 13
(2) This Act and the regulations, as in force before such an amendment, continue 14
to apply to royalty under this Act that is payable in respect of a royalty period 15
that commenced before the commencement of the amendment. 16
7 Requirements to pay royalty to the Minister 17
(1) A requirement imposed by or under this Act to pay royalty under this Act to 18
the Minister is taken, from the relevant commencement date, to be a 19
requirement to pay royalty under this Act to the State. 20
(2) A reference in any document to royalty payable to the Minister under this Act 21
is taken, from the relevant commencement date, to be a reference to royalty 22
payable to the State under this Act. 23
(3) In this clause, the relevant commencement date means the date of 24
commencement of section 437A, as inserted by the State Revenue and Other 25
Legislation Amendment (Budget Measures) Act 2014. 26
Explanatory note 27
Item [14] of the proposed amendments to the Offshore Minerals Act 1999 provides that royalties 28
payable under that Act are taxes for the purposes of the Taxation Administration Act 1996. This 29
means that the royalty will be assessed and recoverable by the Chief Commissioner under that Act. 30
The amendment also requires the Minister to ensure that the Chief Commissioner is provided with 31
any information necessary to enable the Chief Commissioner to exercise his or her functions with 32
respect to royalties. 33
Item [3] is a consequential amendment. At present, royalties are payable to the Minister. The 34
amendment makes it clear that royalty is payable to the State. 35
Item [4] requires the Chief Commissioner to be advised of any determination by the Minister that 36
royalty is to be paid at a lower rate than the prescribed rate. 37
Items [5] and [6] permit the Minister to certify certain determinations made under the Act that are 38
relevant to the calculation of royalty. 39
Item [7] makes it clear that a tax default for the purposes of the Taxation Administration Act 1996 40
occurs if royalty is not paid when it becomes due and payable. Item [12] is a consequential 41
amendment. 42
Item [9] requires royalty returns to be lodged with the Chief Commissioner. The Taxation 43
Administration Act 1996 provides for the form in which returns must be provided. A copy of each return 44
is to be provided to the Minister and the Minister may give directions as to the information to be 45
included in the returns. 46
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Schedule 4 Amendments relating to royalties
Item [9] also makes it clear that the disclosure of royalty information by the Minister remains subject 1
to the Offshore Minerals Act 1999, and not the Taxation Administration Act 1996. Item [2] is a 2
consequential amendment. 3
Items [10] and [11] remove provisions that impose a penalty for late payment of royalty. The Taxation 4
Administration Act 1996 already permits the Chief Commissioner to impose interest and other 5
penalties for late payment of taxes, and those provisions will now apply to royalties. Item [8] is a 6
consequential amendment to a provision that requires 40% of royalties, including penalties for late 7
payment, to be paid to the Commonwealth. The amendment will require 40% of royalties, including 8
interest and penalty tax for late payment, to be paid to the Commonwealth. 9
Item [13] removes a provision that makes royalty a debt recoverable in a court of competent 10
jurisdiction. The provision is redundant because the Taxation Administration Act 1996 provides that 11
all taxes are recoverable by the Chief Commissioner as a debt in a court of competent jurisdiction. 12
Item [1] inserts a definition of Chief Commissioner in the Act. 13
Items [15]-[18] provide for transitional matters. 14
4.4 Offshore Minerals Regulation 2013 15
Clause 14 Returns to be made 16
Omit the clause. 17
Explanatory note 18
The proposed amendment to the Offshore Minerals Regulation 2013 removes a requirement to lodge 19
returns with the Minister. The provision is redundant because the proposed amendments to the parent 20
Act require returns to be lodged with the Chief Commissioner. 21
4.5 Petroleum (Offshore) Act 1982 No 23 22
[1] Section 5 Definitions 23
Insert in alphabetical order in section 5 (1): 24
Chief Commissioner means the Chief Commissioner of State Revenue. 25
[2] Section 119 Release of information 26
Insert after section 119 (6A): 27
(6B) A reference in this section to a return or other document furnished to the 28
Minister under this Act includes a reference to a return or other document 29
relating to royalty under this Act that is obtained by the Minister, or a delegate 30
of the Minister, from a tax officer (within the meaning of the Taxation 31
Administration Act 1996). 32
[3] Section 129 Certain payments to be made by State to Commonwealth 33
Omit "under this Act" where secondly occurring in the definition of A in section 129 (1). 34
[4] Section 143 Royalty 35
Omit "to the Minister" from section 143 (1). Insert instead "to the Crown". 36
[5] Section 144 Reduction of royalty in certain cases 37
Insert after section 144 (3): 38
(4) The Chief Commissioner is to remit the interest or penalty tax on any royalty 39
that ceases to be payable because of a determination of the Minister under this 40
section. 41
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Schedule 4 Amendments relating to royalties
[6] Section 145 Royalty not payable in certain cases 1
Insert after section 145 (2): 2
(3) The Chief Commissioner is to remit the interest or penalty tax on any royalty 3
that ceases to be payable because of a decision of the Minister under this 4
section. 5
[7] Section 149 Payment of royalty 6
Insert at the end of the section: 7
(2) A failure to pay royalty payable under this Act by the end of that next 8
succeeding royalty period is a tax default for the purposes of the Taxation 9
Administration Act 1996. 10
Note. If a tax default occurs, interest and penalty tax may be charged under the 11
Taxation Administration Act 1996. 12
(3) A tax default does not occur before the expiration of 7 days after the value of 13
the relevant petroleum is agreed or determined under section 147. 14
[8] Section 149A 15
Insert after section 149: 16
149A Royalty returns 17
(1) A person who is required to pay royalty under this Act is required to lodge with 18
the Chief Commissioner a return relating to each royalty period. 19
(2) The return is to be lodged with the Chief Commissioner no later than the last 20
day of the next succeeding royalty period. 21
(3) The Chief Commissioner is to give a copy to the Minister of each return lodged 22
with the Chief Commissioner. 23
(4) The Minister may give directions to the Chief Commissioner as to the 24
information that is to be included in the form of return approved under the 25
Taxation Administration Act 1996. 26
Note. The Taxation Administration Act 1996 requires a return to be in a form approved 27
by the Chief Commissioner. 28
[9] Section 150 Penalty for late payment of fees 29
Omit "or an amount of royalty" from section 150 (1). 30
[10] Section 150 (1) 31
Omit "or the amount of royalty". 32
[11] Section 150 (1) 33
Omit "or royalty". 34
[12] Section 150 (2) 35
Omit the subsection. 36
[13] Section 151 Fees and penalties debts due to the State 37
Omit the section. 38
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Schedule 4 Amendments relating to royalties
[14] Sections 151A and 151B 1
Insert after section 151: 2
151A Assessment and recovery of royalties 3
(1) Royalty payable under this Act is a tax for the purposes of the Taxation 4
Administration Act 1996. 5
Note. The Taxation Administration Act 1996 applies to the assessment and recovery 6
of royalty. 7
(2) The royalty is payable to the Chief Commissioner in accordance with that Act. 8
(3) The Minister is to provide the Chief Commissioner with any information 9
necessary to enable the Chief Commissioner to exercise the Chief 10
Commissioner's functions with respect to royalties under this Act and the 11
Taxation Administration Act 1996. 12
(4) A certificate that is signed by the Minister and that states that, on a specified 13
date, the Minister made a determination, or did anything else, under any of the 14
following provisions, is admissible in evidence in any proceedings and is 15
evidence of the fact or facts so certified: 16
(a) section 43 (1), 144, 145, 146, 147 or 148, or 17
(b) any other provision of this Act relating to royalties that is prescribed by 18
the regulations. 19
(5) The Chief Commissioner may request a certificate under this section and a 20
certificate is to be provided in accordance with that request. 21
151B Disclosure of royalty information 22
(1) The Minister, or a person engaged in the administration of this Act, may 23
disclose royalty information obtained from a tax officer under this Act or the 24
Taxation Administration Act 1996 in connection with the administration or 25
execution of this Act. 26
(2) This section applies despite section 84 of the Taxation Administration 27
Act 1996 but subject to any restrictions in this Act. 28
Note. See section 119 of this Act. 29
(3) In this section: 30
royalty information means information in a return lodged with the Chief 31
Commissioner under this Act or any other information relating to the 32
assessment or recovery of royalty. 33
tax officer has the same meaning as it has in the Taxation Administration 34
Act 1996. 35
[15] Schedule 4 Savings, transitional and other provisions 36
Insert after Part 4: 37
Part 5 Provisions consequent on enactment of State 38
Revenue and Other Legislation Amendment 39
(Budget Measures) Act 2014 40
8 Assessment and recovery of royalties under Taxation Administration Act 1996 41
(1) An amendment made to this Act by the State Revenue and Other Legislation 42
Amendment (Budget Measures) Act 2014 applies only to royalty under this Act 43
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State Revenue and Other Legislation Amendment (Budget Measures) Bill 2014 [NSW]
Schedule 4 Amendments relating to royalties
that is payable in respect of a royalty period that commences on or after the 1
commencement of the amendment. 2
(2) This Act, as in force before such an amendment, continues to apply to royalty 3
under this Act that is payable in respect of a royalty period that commenced 4
before the commencement of the amendment. 5
9 Requirements to pay royalty to the Minister 6
(1) A requirement imposed by or under this Act to pay royalty under this Act to 7
the Minister is taken, from the relevant commencement date, to be a 8
requirement to pay royalty under this Act to the Crown. 9
(2) A reference in any document to royalty payable to the Minister under this Act 10
is taken, from the relevant commencement date, to be a reference to royalty 11
payable to the Crown under this Act. 12
(3) In this clause, the relevant commencement date means the date of 13
commencement of section 151A, as inserted by the State Revenue and Other 14
Legislation Amendment (Budget Measures) Act 2014. 15
Explanatory note 16
Item [14] of the proposed amendments to the Petroleum (Offshore) Act 1982 provides that royalties 17
payable under that Act are taxes for the purposes of the Taxation Administration Act 1996. This 18
means that the royalty will be collected and recoverable by the Chief Commissioner under that Act. 19
The amendment also requires the Minister to provide the Chief Commissioner with any information 20
necessary to enable the Chief Commissioner to exercise his or her functions with respect to royalties. 21
The Minister is given power to certify certain decisions made under the Act that are relevant to the 22
calculation of royalty. 23
Item [4] is a consequential amendment. At present, royalties are payable to the Minister. The 24
amendment makes it clear that royalty is payable to the Crown. 25
Item [14] also makes it clear that the disclosure of royalty information by the Minister remains subject 26
to the Petroleum (Offshore) Act 1982, and not the Taxation Administration Act 1996. Item [2] is a 27
consequential amendment. 28
Item [7] makes it clear that a tax default for the purposes of the Taxation Administration Act 1996 29
occurs if royalty is not paid when it becomes due and payable. 30
Item [8] requires royalty returns to be lodged with the Chief Commissioner (instead of the Minister). 31
The Taxation Administration Act 1996 provides for the form in which returns must be provided. The 32
Chief Commissioner is to provide a copy of the returns to the Minister. The amendment also permits 33
the Minister to give directions as to the information to be included in the approved form of return. 34
Items [9]-[12] remove provisions that impose a penalty for late payment of royalty. The Taxation 35
Administration Act 1996 already permits the Chief Commissioner to impose interest and other 36
penalties for late payment of taxes, and those provisions will now apply to royalties. Item [3] is a 37
consequential amendment. 38
Items [5] and [6] require the Chief Commissioner to remit interest and penalty tax if the Minister waives 39
payment of royalty or part of royalty. 40
Item [13] removes a provision that makes a fee or royalty a debt recoverable in a court of competent 41
jurisdiction. The provision is redundant because the Taxation Administration Act 1996 provides that 42
all taxes are recoverable by the Chief Commissioner as a debt in a court of competent jurisdiction. 43
The Taxation Administration Act 1996 will apply to royalties. In relation to fees, section 142 of the 44
Petroleum (Offshore) Act 1982 already provides that fees are debts due to the Crown and recoverable 45
in a court of competent jurisdiction. 46
Item [15] provides for transitional matters. 47
Item [1] inserts a definition of Chief Commissioner in the Act. 48
4.6 Petroleum (Onshore) Act 1991 No 84 49
[1] Section 3 Definitions 50
Insert in alphabetical order in section 3 (1): 51
Chief Commissioner means the Chief Commissioner of State Revenue. 52
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Schedule 4 Amendments relating to royalties
[2] Section 83 Sale of petroleum plant 1
Omit "of Unclaimed Money" from section 83 (4). 2
[3] Section 85 Royalty 3
Omit "to the Minister" from section 85 (1). Insert instead "to the Crown". 4
[4] Section 86 Reduction of royalty in certain cases 5
Insert after section 86 (3): 6
(4) The Chief Commissioner is to remit the interest or penalty tax on any royalty 7
that ceases to be payable because of a decision of the Minister under this 8
section. 9
[5] Section 87 Royalty not payable in certain cases 10
Insert after section 87 (2): 11
(3) The Chief Commissioner is to remit the interest or penalty tax on any royalty 12
that ceases to be payable because of a decision of the Minister under this 13
section. 14
[6] Section 91 Payment of royalty 15
Insert at the end of the section: 16
(2) A failure to pay royalty payable under this Act by the end of that next 17
succeeding royalty period is a tax default for the purposes of the Taxation 18
Administration Act 1996. 19
Note. If a tax default occurs, interest and penalty tax may be charged under the 20
Taxation Administration Act 1996. 21
(3) A tax default does not occur before the expiration of 7 days after the value of 22
the relevant petroleum was determined under section 89. 23
[7] Section 92 Penalty for late payment 24
Insert after section 92 (2): 25
(3) This section applies to royalty payable for a period commencing before 26
1 July 2014. The Taxation Administration Act 1996 applies to royalty payable 27
for a period commencing on or after 1 July 2014. 28
[8] Section 93 29
Insert after section 92: 30
93 Royalty returns 31
(1) A person who is required to pay royalty under this Act is required to lodge with 32
the Chief Commissioner a return relating to each royalty period. 33
(2) The return is to be lodged with the Chief Commissioner no later than the last 34
day of the next succeeding royalty period. 35
(3) The Chief Commissioner is to give a copy to the Minister of each return lodged 36
with the Chief Commissioner. 37
(4) The Minister may give directions to the Chief Commissioner as to the 38
information that is to be included in the form of return approved under the 39
Taxation Administration Act 1996. 40
Note. The Taxation Administration Act 1996 requires a return to be in a form approved 41
by the Chief Commissioner. 42
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Schedule 4 Amendments relating to royalties
[9] Sections 94 and 94AA 1
Omit section 94. Insert instead: 2
94 Assessment and recovery of royalties 3
(1) Royalty payable under this Act is a tax for the purposes of the Taxation 4
Administration Act 1996. 5
Note. The Taxation Administration Act 1996 applies to the assessment and recovery 6
of royalty. 7
(2) The royalty is payable to the Chief Commissioner in accordance with that Act. 8
(3) The Minister is to provide the Chief Commissioner with any information 9
necessary to enable the Chief Commissioner to exercise the Chief 10
Commissioner's functions with respect to royalties under this Act and the 11
Taxation Administration Act 1996. 12
(4) A certificate that is signed by the Minister and that states that, on a specified 13
date, the Minister made a determination, or did anything else, under any of the 14
following provisions, is admissible in evidence in any proceedings and is 15
evidence of the fact or facts so certified: 16
(a) section 86, 87, 88, 89 or 90, or 17
(b) any other provision of this Act relating to royalties that is prescribed by 18
the regulations. 19
(5) The Chief Commissioner may request a certificate under this section and a 20
certificate is to be provided in accordance with that request. 21
94AA Disclosure of royalty information 22
(1) The Minister, or a person engaged in the administration of this Act, may 23
disclose royalty information obtained from a tax officer under this Act or the 24
Taxation Administration Act 1996 in connection with the administration or 25
execution of this Act. 26
(2) This section applies despite section 84 of the Taxation Administration 27
Act 1996 but subject to any restrictions in this Act. 28
Note. See Part 13 of this Act. 29
(3) In this section: 30
royalty information means information in a return lodged with the Chief 31
Commissioner under this Act or any other information relating to the 32
assessment or recovery of royalty. 33
tax officer has the same meaning as it has in the Taxation Administration 34
Act 1996. 35
[10] Section 117 Definitions 36
Insert after section 117 (2): 37
(3) A reference to information furnished to the Minister under this Act includes a 38
reference to a return or other information relating to royalty under this Act that 39
is obtained by the Minister, or a delegate of the Minister, from a tax officer 40
(within the meaning of the Taxation Administration Act 1996). 41
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Schedule 4 Amendments relating to royalties
[11] Schedule 1 Savings and transitional provisions 1
Insert at the end of the Schedule with appropriate Part and clause numbering: 2
Part Provisions consequent on enactment of State 3
Revenue and Other Legislation Amendment 4
(Budget Measures) Act 2014 5
Assessment and recovery of royalties under Taxation Administration Act 1996 6
(1) An amendment made to this Act by the State Revenue and Other Legislation 7
Amendment (Budget Measures) Act 2014 applies only to royalty under this Act 8
that is payable in respect of a royalty period that commences on or after the 9
commencement of the amendment. 10
(2) This Act, as in force before such an amendment, continues to apply to royalty 11
under this Act that is payable in respect of a royalty period that commenced 12
before the commencement of the amendment. 13
Requirements to pay royalty to the Minister 14
(1) A requirement imposed by or under this Act to pay royalty under this Act to 15
the Minister is taken, from the relevant commencement date, to be a 16
requirement to pay royalty under this Act to the Crown. 17
(2) A reference in any document to royalty payable to the Minister under this Act 18
is taken, from the relevant commencement date, to be a reference to royalty 19
payable to the Crown under this Act. 20
(3) In this clause, the relevant commencement date means the date of 21
commencement of section 93, as inserted by the State Revenue and Other 22
Legislation Amendment (Budget Measures) Act 2014. 23
Explanatory note 24
Item [9] of the proposed amendments to the Petroleum (Onshore) Act 1991 provides that royalties 25
payable under that Act are taxes for the purposes of the Taxation Administration Act 1996. This 26
means that the royalty will be assessed and recoverable by the Chief Commissioner under that Act. 27
The amendment requires the Minister to provide the Chief Commissioner with any information 28
necessary to enable the Chief Commissioner to exercise his or her functions with respect to royalties. 29
The Minister is given power to certify certain decisions made under the Act that are relevant to the 30
calculation of royalty. The amendment also removes a provision that makes royalty a debt 31
recoverable in a court of competent jurisdiction.The provision is redundant because the Taxation 32
Administration Act 1996 provides that all taxes are recoverable by the Chief Commissioner as a debt 33
in a court of competent jurisdiction. 34
Item [3] is a consequential amendment. At present, royalties are payable to the Minister. The 35
amendment makes it clear that royalty is payable to the Crown. 36
Item [9] also makes it clear that the disclosure of royalty information by the Minister remains subject 37
to the Petroleum (Onshore) Act 1991, and not the Taxation Administration Act 1996. Item [10] is a 38
consequential amendment. 39
Item [6] makes it clear that a tax default for the purposes of the Taxation Administration Act 1996 40
occurs if royalty is not paid when it becomes due and payable. 41
Item [7] limits a provision that imposes a penalty for late payment of royalty. As a consequence of the 42
amendments, the Taxation Administration Act 1996 will permit the Chief Commissioner to impose 43
interest and other penalties for late payment of royalties. 44
Item [8] requires royalty returns to be lodged with the Chief Commissioner (instead of the Minister). 45
The Taxation Administration Act 1996 provides for the form in which returns must be provided. The 46
Chief Commissioner is to provide a copy of the returns to the Minister. The amendments also permit 47
the Minister to give directions as to the information to be included in the approved form of return. 48
Items [4] and [5] require the Chief Commissioner to remit interest and penalty tax if the Minister waives 49
payment of royalty or part of royalty. 50
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Schedule 4 Amendments relating to royalties
Item [11] provides for transitional matters. 1
Item [1] inserts a definition of Chief Commissioner in the Act. 2
Item [2] updates an obsolete reference to the Chief Commissioner. 3
4.7 Taxation Administration Act 1996 No 97 4
[1] Section 5B 5
Insert after section 5A: 6
5B Application of Act to royalties 7
(1) For the purpose of the administration and enforcement of legislative schemes 8
for the payment of royalties to the Crown, the following provisions are taken 9
to be taxation laws: 10
(a) Part 14 of the Mining Act 1992, 11
(b) Divisions 2 and 3 of Part 4.4 of the Offshore Minerals Act 1999, 12
(c) the provisions of Division 7 of Part 4 of the Petroleum (Offshore) 13
Act 1982 to the extent that those provisions relate to royalties under that 14
Act, 15
(d) Part 7 of the Petroleum (Onshore) Act 1991, 16
(e) any other provisions of the Acts referred to in paragraphs (a)-(d), or of 17
the regulations under those Acts, to the extent that they relate to 18
royalties. 19
(2) Royalty is taken to be a tax for the purposes of this Act. 20
(3) In this section: 21
royalty means royalty payable under: 22
(a) the Mining Act 1992, or 23
(b) the Offshore Minerals Act 1999, or 24
(c) the Petroleum (Offshore) Act 1982, or 25
(d) the Petroleum (Onshore) Act 1991. 26
[2] Section 111 Appropriation of Consolidated Fund 27
Insert "or any taxation law" after "this Act". 28
[3] Schedule 1 Savings, transitional and other provisions 29
Insert at the end of the Schedule with appropriate Part and clause numbering: 30
Part Provisions arising from enactment of State 31
Revenue and Other Legislation Amendment 32
(Budget Measures) Act 2014 33
Application of Act to royalties 34
Section 5B, as inserted by the State Revenue and Other Legislation 35
Amendment (Budget Measures) Act 2014, applies in respect of royalty payable 36
for a period that commences on or after the commencement of that section. 37
Explanatory note 38
Item [1] of the proposed amendments to the Taxation Administration Act 1996 provides that 39
provisions relating to royalties in the Mining Act 1992, the Offshore Minerals Act 1999, the Petroleum 40
(Offshore) Act 1982 and the Petroleum (Onshore) Act 1991, and the regulations under those Acts, 41
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Schedule 4 Amendments relating to royalties
are taxation laws for the purposes of the Taxation Administration Act 1996. This means the Taxation 1
Administration Act 1996 will apply to the assessment and recovery of royalties as taxes under that Act. 2
Item [2] is consequential to an amendment to the Mining Act 1992 which requires the Chief 3
Commissioner to pay part of the royalty collected in respect of privately owned minerals to the Minister 4
administering that Act (for payment to the owner of the privately owned mineral). The amendment 5
requires the Consolidated Fund to be appropriated for the purpose of payments made by the Chief 6
Commissioner under taxation laws. 7
Item [3] is a transitional provision. 8
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Schedule 5 Amendments relating to public sector employee costs
Schedule 5 Amendments relating to public sector employee 1
costs 2
5.1 Industrial Relations Act 1996 No 17 3
Schedule 4 Savings, transitional and other provisions 4
Insert at the end of the Schedule with appropriate Part and clause numbering: 5
Part Provisions relating to Industrial Relations (Public 6
Sector Conditions of Employment) Regulation 2014 7
Re-making of regulation 8
(1) Subschedule 5.2 to the State Revenue and Other Legislation Amendment 9
(Budget Measures) Act 2014 sets out the terms of the Industrial Relations 10
(Public Sector Conditions of Employment) Regulation 2014. 11
(2) On and from the commencement of Subschedule 5.2 to that Act: 12
(a) the regulation set out in the subschedule is taken to be and has effect as 13
a regulation validly made under section 146C of the Industrial Relations 14
Act 1996, 15
(b) Part 2 of the Subordinate Legislation Act 1989 does not apply to the 16
regulation set out in the subschedule (but applies to any amendment or 17
repeal of the regulation), 18
(c) the regulation set out in the subschedule is taken, for the purposes of 19
section 10 of the Subordinate Legislation Act 1989, to have been 20
published on the commencement of the subschedule, 21
(d) sections 39, 40 and 41 of the Interpretation Act 1987 do not apply to the 22
regulation set out in the subschedule (but apply to any amendment or 23
repeal of the regulation), 24
(e) section 146C (6) of the Industrial Relations Act 1996 applies to the 25
regulation set out in the subschedule, and accordingly the regulation 26
applies to proceedings that are pending in the Commission on the 27
commencement of the subschedule (except as otherwise provided in the 28
regulation). 29
5.2 Industrial Relations (Public Sector Conditions of Employment) 30
Regulation 2014 31
1 Name of Regulation 32
This Regulation is the Industrial Relations (Public Sector Conditions of 33
Employment) Regulation 2014. 34
2 Commencement 35
This Regulation commences on the day on which Schedule 5.2 to the State 36
Revenue and Other Legislation Amendment (Budget Measures) Act 2014 37
commences. 38
3 Definition 39
In this Regulation: 40
the Act means the Industrial Relations Act 1996. 41
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Schedule 5 Amendments relating to public sector employee costs
4 Declarations under section 146C 1
The matters set out in this Regulation are declared, for the purposes of 2
section 146C of the Act, to be aspects of government policy that are to be 3
given effect to by the Industrial Relations Commission when making or 4
varying awards or orders. 5
5 Paramount policies 6
The following paramount policies are declared: 7
(a) Public sector employees are entitled to the guaranteed minimum 8
conditions of employment (being the conditions set out in clause 7). 9
(b) Equal remuneration for men and women doing work of equal or 10
comparable value. 11
Note. Clause 6 (1) (c) provides that existing conditions of employment in excess of the 12
guaranteed minimum conditions may only be reduced for the purposes of achieving 13
employee-related cost savings with the agreement of the relevant parties. 14
Clause 9 (1) (e) provides that conditions of employment cannot be reduced below the 15
guaranteed minimum conditions of employment for the purposes of achieving 16
employee-related cost savings. 17
6 Other policies 18
(1) The following policies are also declared, but are subject to compliance with 19
the declared paramount policies: 20
(a) Public sector employees may be awarded increases in remuneration or 21
other conditions of employment, but only if employee-related costs in 22
respect of those employees are not increased by more than 2.5% per 23
annum as a result of the increases awarded together with any new or 24
increased superannuation employment benefits provided (or to be 25
provided) to or in respect of the employees since their remuneration or 26
other conditions of employment were last determined. 27
(b) Increases in remuneration or other conditions of employment can be 28
awarded even if employee-related costs are increased by more than 29
2.5% per annum, but only if sufficient employee-related cost savings 30
have been achieved to fully offset the increased employee-related costs 31
beyond 2.5% per annum. For this purpose: 32
(i) whether relevant savings have been achieved is to be determined 33
by agreement of the relevant parties or, in the absence of 34
agreement, by the Commission, and 35
(ii) increases may be awarded before the relevant savings have been 36
achieved, but are not payable until they are achieved, and 37
(iii) the full savings are not required to be awarded as increases in 38
remuneration or other conditions of employment. 39
(c) For the purposes of achieving employee-related cost savings, existing 40
conditions of employment of the kind but in excess of the guaranteed 41
minimum conditions of employment may only be reduced with the 42
agreement of the relevant parties in the proceedings. 43
(d) Awards and orders are to resolve all issues the subject of the 44
proceedings (and not reserve leave for a matter to be dealt with at a later 45
time or allow extra claims to be made during the term of the award or 46
order). However, this does not prevent variations made with the 47
agreement of the relevant parties. 48
(e) Changes to remuneration or other conditions of employment may only 49
operate on or after the date the relevant parties finally agreed to the 50
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Schedule 5 Amendments relating to public sector employee costs
change (if the award or order is made or varied by consent) or the date 1
of the Commission's decision (if the award or order is made or varied 2
in arbitration proceedings). 3
(f) Policies regarding the management of excess public sector employees 4
are not to be incorporated into industrial instruments. 5
(2) Subclause (1) (e) does not apply if the relevant parties otherwise agree or there 6
are exceptional circumstances. 7
(3) The relevant parties in relation to a matter requiring agreement under this 8
clause are the employer and any other party to the proceedings that is an 9
industrial organisation of employees with one or more members whose 10
interests are directly affected by the matter. 11
(4) In subclause (1) (a), new or increased superannuation employment benefits
means any new or increased payments by an employer to a superannuation 12
13
scheme or fund of an employee as a consequence of amendments to the 14
Superannuation Guarantee (Administration) Act 1992 of the Commonwealth 15
or the State Authorities Non-contributory Superannuation Act 1987. 16
7 The guaranteed minimum conditions of employment 17
(1) For the purposes of this Regulation, the guaranteed minimum conditions of 18
employment are as follows: 19
(a) Unpaid parental leave that is the same as that provided by the National 20
Employment Standards. 21
(b) Paid parental leave that applies to the relevant group of public sector 22
employees on the commencement of this clause. 23
(c) Employer payments to employee superannuation schemes or funds 24
(being the minimum amount prescribed under the relevant law of the 25
Commonwealth). 26
(2) The guaranteed minimum conditions of employment also include the 27
following: 28
(a) Long service or extended leave (being the minimum leave prescribed 29
under the Government Sector Employment Act 2013 or the Long Service 30
Leave Act 1955, whichever Act is applicable to the employment 31
concerned). 32
(b) Annual leave (being the minimum leave prescribed under the Annual 33
Holidays Act 1944). 34
(c) Sick leave entitlements under section 26 of the Act. 35
(d) Public holiday entitlements under the Public Holidays Act 2010. 36
(e) Part-time work entitlements under Part 5 of Chapter 2 of the Act. 37
8 Meaning of employee-related costs 38
(1) For the purposes of this Regulation, employee-related costs are the costs to the 39
employer of the employment of public sector employees, being costs related 40
to the salary, wages, allowances and other remuneration payable to the 41
employees and the superannuation and other personal employment benefits 42
payable to or in respect of the employees. 43
(2) In subclause (1), superannuation benefits include any payments by the 44
employer to a superannuation scheme or fund of an employee as a 45
consequence of the enactment of or amendments to the Superannuation 46
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Schedule 5 Amendments relating to public sector employee costs
Guarantee (Administration) Act 1992 of the Commonwealth or the State 1
Authorities Non-contributory Superannuation Act 1987. 2
9 Meaning of employee-related cost savings 3
(1) For the purposes of this Regulation, employee-related cost savings are 4
savings: 5
(a) that are identified in the award or order of the Commission that relies on 6
those savings, and 7
(b) that involve a significant contribution from public sector employees and 8
generally involve direct changes to a relevant industrial instrument, 9
work practices or other conditions of employment, and 10
(c) that are not existing savings (as defined in subclause (2)), and 11
(d) that are additional to whole of Government savings measures (such as 12
efficiency dividends), and 13
(e) that are not achieved by a reduction in guaranteed minimum conditions 14
of employment below the minimum level. 15
(2) Savings are existing savings if they are identified in a relevant industrial 16
instrument made before the commencement of this Regulation (or in an 17
agreement contemplated by such an industrial instrument) and are relied on by 18
that industrial instrument, whether or not the savings have been achieved and 19
whether or not they were or are achieved during the term of that industrial 20
instrument. 21
10 Exception for pending proceedings concerning police officers 22
This Regulation does not apply to the following proceedings: 23
(a) proceedings pending before the Commission in respect of police 24
officers and designated IRC 325/2011 (limited to those proceedings as 25
in force on the commencement of this Regulation), 26
(b) proceedings on a cross-claim or counter application made in connection 27
with those pending proceedings. 28
5.3 Industrial Relations (Public Sector Conditions of Employment) 29
Regulation 2011 30
The Industrial Relations (Public Sector Conditions of Employment) Regulation 2011 is 31
repealed. 32
Explanatory note 33
Schedule 5.1 amends the Industrial Relations Act 1996 to give effect to the Industrial Relations (Public 34
Sector Conditions of Employment) Regulation 2014 as a regulation validly made under that Act. 35
Schedule 5.2 sets out the Industrial Relations (Public Sector Conditions of Employment) 36
Regulation 2014. The Regulation remakes, with some changes for clarification, the Industrial 37
Relations (Public Sector Conditions of Employment) Regulation 2011.The remaking of the Regulation 38
confirms the validity of the Government policies that are required to be given effect to by the Industrial 39
Relations Commission. In particular, it confirms the Government's policies regarding the management 40
of excess public sector employees and the 2.5% cap on increases in remuneration or other conditions 41
of employment (including superannuation). 42
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Schedule 5 Amendments relating to public sector employee costs
Schedule 5.3 repeals the Industrial Relations (Public Sector Conditions of Employment) 43
Regulation 2011. 44
Page 31
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