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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
State Revenue Legislation Amendment
(COVID-19 Housing Response) Bill 2020
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Explanatory notes 2
Schedule 1 Amendment of Duties Act 1997 No 123 3
Schedule 2 Amendment of Land Tax Act 1956 No 27 8
Schedule 3 Amendment of Land Tax Management Act 1956 No 26 10
Schedule 4 Amendment of Payroll Tax Act 2007 No 21 13
I certify that this public bill, which originated in the Legislative Assembly, has finally passed
the Legislative Council and the Legislative Assembly of New South Wales.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2020
New South Wales
State Revenue Legislation Amendment
(COVID-19 Housing Response) Bill 2020
Act No , 2020
An Act to make miscellaneous amendments to certain State revenue legislation in connection with
stamp duty concessions under the First Home Buyers Assistance scheme, concessional land tax
treatment for certain build-to-rent properties and payroll tax exemptions for payments under the
Commonwealth's Aged Care Workforce Retention Grant Opportunity program; and for related
purposes.
I have examined this bill and find it to correspond in all respects with the bill as finally
passed by both Houses.
Assistant Speaker of the Legislative Assembly.
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
The Legislature of New South Wales enacts--
1 Name of Act
This Act is the State Revenue Legislation Amendment (COVID-19 Housing
Response) Act 2020.
2 Commencement
This Act commences on the date of assent to this Act.
3 Explanatory notes
The matter appearing under the heading "Explanatory note" in any of the Schedules
does not form part of this Act.
Page 2
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
Schedule 1 Amendment of Duties Act 1997 No 123
[1] Section 64 Conversion of land use entitlement to different form of title
Omit "section 78A (which relates" from section 64(c)(iv).
Insert instead "section 78A or 78AA (which relate".
[2] Section 74 Eligible agreements or transfers
Insert after section 74(3)--
(4) Despite subsection (3), in relation to an agreement for sale or transfer or a
transfer entered into during the period beginning on 1 August 2020 and ending
on 31 July 2021 (other than a transfer made in conformity with an agreement
for sale or transfer entered into before 1 August 2020), the dutiable value of
the dutiable property that is the subject of the agreement or transfer must be
less than--
(a) $1,000,000 if the property has a private dwelling that is a new home
built on it, or
(b) $800,000 if the property has a private dwelling that is not a new home
built on it, or
(c) $500,000 if the property comprises a vacant block of residential land.
(5) In this section, new home has the same meaning as in section 4A of the First
Home Owner Grant (New Homes) Act 2000.
[3] Section 78AA
Insert after section 78A--
78AA Duty payable on certain agreements and transfers entered into during year
commencing 1 August 2020
(1) This section applies, and section 78A does not apply, to an agreement for sale
or transfer or a transfer entered into during the period beginning on 1 August
2020 and ending on 31 July 2021 (other than a transfer made in conformity
with an agreement for sale or transfer entered into before 1 August 2020).
(2) If an application concerning an eligible agreement or transfer to which this
section applies is approved and the dutiable value of the dutiable property that
is the subject of the agreement or transfer is not more than the following
amounts, no duty is chargeable on the agreement or transfer--
(a) $800,000 if the property has a private dwelling that is a new home built
on it,
(b) $650,000 if the property has a private dwelling that is not a new home
built on it,
(c) $400,000 if the property comprises a vacant block of residential land.
(3) If an application concerning an eligible agreement or transfer to which this
section applies is approved in respect of property that has a private dwelling
that is a new home built on it and subsection (2)(a) does not apply to the
agreement or transfer, the rate of duty chargeable in respect of the agreement
or transfer is to be calculated in accordance with the following formula--
$1,000,000 - V
N - ------------------------------------- D
$200,000
where--
Page 3
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
N is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of the agreement or transfer.
V is the dutiable value of the dutiable property that is the subject of the
agreement or transfer.
D is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of an agreement or transfer relating to property
that has a private dwelling built on it and has a dutiable value of $800,000.
Note. An agreement or transfer in respect of property that has a private dwelling that
is a new home built on it is not an eligible agreement or transfer if the dutiable value of
the property is $1,000,000 or more. See section 74(4)(a).
(4) If an application concerning an eligible agreement or transfer to which this
section applies is approved in respect of property that has a private dwelling
that is not a new home built on it and subsection (2)(b) does not apply to the
agreement or transfer, the rate of duty chargeable in respect of the agreement
or transfer is to be calculated in accordance with the following formula--
$800,000 - V
N - -------------------------------- D
$150,000
where--
N is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of the agreement or transfer.
V is the dutiable value of the dutiable property that is the subject of the
agreement or transfer.
D is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of an agreement or transfer relating to property
that has a private dwelling built on it and has a dutiable value of $650,000.
Note. An agreement or transfer in respect of property that has a private dwelling that
is not a new home built on it is not an eligible agreement or transfer if the dutiable value
of the property is $800,000 or more. See section 74(4)(b).
(5) If an application concerning an eligible agreement or transfer to which this
section applies is approved in respect of property that comprises a vacant
block of residential land and subsection (2)(c) does not apply to the agreement
or transfer, the rate of duty chargeable in respect of the agreement or transfer
is to be calculated in accordance with the following formula--
$500,000 - V
N - -------------------------------- D
$100,000
where--
N is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of the agreement or transfer.
V is the dutiable value of the dutiable property that is the subject of the
agreement or transfer.
D is the amount of duty (calculated in accordance with section 32) that would
otherwise be payable in respect of an agreement or transfer relating to property
that comprises a vacant block of residential land and has a dutiable value of
$400,000.
Note. An agreement or transfer in respect of property that comprises a vacant block of
residential land is not an eligible agreement or transfer if the dutiable value of the
property is $500,000 or more. See section 74(4)(c).
(6) This section does not apply in respect of an agreement or transfer that is
eligible under the scheme only for a shared equity concession.
(7) In this section, new home has the same meaning as in section 4A of the First
Home Owner Grant (New Homes) Act 2000.
Page 4
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
[4] Section 78B Special concession for shared equity arrangements
Insert "or 78AA" after "section 78A" in the definition of C in section 78B(3).
[5] Section 78B(5)
Omit "section 78A". Insert instead "sections 78A and 78AA".
[6] Section 104ZJB
Insert after section 104ZJA--
104ZJB Exemption for certain build-to-rent properties transferred to foreign persons
(1) An Australian corporation that is the transferee under a transfer of
residential-related property is entitled to a refund of surcharge purchaser duty
paid by the transferee that is chargeable on the transfer if the Chief
Commissioner is satisfied that--
(a) the transfer was entered into on or after 1 July 2020 (other than a
transfer made in conformity with an agreement for sale or transfer
entered into before 1 July 2020), and
(b) a building that is taken to be build-to-rent property under section 9E of
the Land Tax Management Act 1956 has been constructed on the land
concerned by the transferee or a related body corporate after completion
of the transfer to the transferee, and
(c) the corporation has become entitled under that section to a reduction in
the value of land.
(2) The amount of the refund to which a transferee is entitled under this section is
the amount that is determined in accordance with an order made by the
Treasurer for the purposes of this section and published in the Gazette.
(3) The amount of the refund may be the full amount of duty paid or a lesser
amount (as determined in accordance with the order).
(4) The Chief Commissioner may approve a person as an exempt transferee for a
particular transfer or class of transfers if the Chief Commissioner is of the
opinion that the person is likely to become entitled under this section to a
refund of the full amount of surcharge purchaser duty chargeable on a transfer
to which the approval applies.
(5) No surcharge purchaser duty is chargeable on a transfer of residential-related
property if the transferee under the transfer is approved as an exempt
transferee for the transfer at the time liability for duty would otherwise have
arisen.
(6) The approval of a person as an exempt transferee is subject to the following
provisions--
(a) an approval may be given subject to conditions and the approval
operates subject to any such conditions,
(b) the conditions of an approval may be varied by the Chief Commissioner
at any time by notice to the person,
(c) an approval remains in force until it is revoked and can be revoked by
the Chief Commissioner at any time by notice to the person,
(d) the revocation of an approval can be backdated to extend to a transfer in
respect of which liability for surcharge purchaser duty would (but for
the approval) have arisen before the revocation is notified (an exempted
transfer),
Page 5
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
(e) if the revocation of an approval is backdated to extend to an exempted
transfer, surcharge purchaser duty is payable and is to be assessed or
reassessed as if the approval had never applied to the transfer and as if
liability for duty arose when revocation of the approval was notified.
(7) Without limiting subsection (6), if, after an exemption under this section has
been applied in relation to a transfer, the land concerned is subdivided or the
ownership of the land is otherwise divided within 15 years of that
application--
(a) the approval of the relevant person as an exempt transferee is revoked,
and
(b) that revocation of an approval is backdated to extend to the transfer in
respect of which liability for surcharge purchaser duty would (but for
the approval) have arisen, and
(c) surcharge purchaser duty is payable and is to be assessed or reassessed
as if the approval had never applied to the transfer and as if liability for
duty arose when the land was subdivided or the ownership of the land
was otherwise divided.
(8) Surcharge purchaser duty may be refunded under this section only if an
application for the refund is made within 12 months after the owner of the land
concerned first became entitled under section 9E of the Land Tax Management
Act 1956 to a reduction in the value of the land and no later than 10 years after
completion of the transfer of the residential-related property to the Australian
corporation.
(9) If, after a refund under this section has been paid in relation to a transfer and
the land concerned is subdivided or the ownership of the land is otherwise
divided within 15 years of that payment--
(a) the entitlement to the refund is terminated, and
(b) that termination is backdated to extend to the transfer in respect of
which liability for surcharge purchaser duty would (but for this section)
have arisen, and
(c) surcharge purchaser duty is payable and is to be assessed or reassessed
as if the refund had never been paid to the transferee and as if liability
for duty arose when the land was subdivided or the ownership of the
land was otherwise divided.
(10) For the purposes of section 9(3)(c) of the Taxation Administration Act 1996,
any reassessment under this section is authorised to be made more than 5 years
after the initial assessment.
(11) This section does not apply to a transfer of residential-related property that is
a surcharge duty transaction referred to in section 104L(1)(b) except an
agreement for the sale or transfer of residential-related property.
(12) In this section--
Australian corporation means a corporation that is incorporated or taken to be
incorporated under the Corporations Act 2001 of the Commonwealth.
[7] Schedule 1 Savings, transitional and other provisions
Insert at the end of the Schedule--
Page 6
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 1 Amendment of Duties Act 1997 No 123
Part 52 Provisions consequent on enactment of State
Revenue Legislation Amendment (COVID-19
Housing Response) Act 2020
144 Replacement agreements
(1) An agreement for sale or transfer entered into on or after 1 August 2020 that
replaces an agreement made before that date (an earlier agreement) is taken,
for the purposes of sections 74(4) and 78AA of this Act, as inserted by the
State Revenue Legislation Amendment (COVID-19 Housing Response) Act
2020--
(a) to have been made on the date the earlier agreement was made, and
(b) to have a commencement date that is the date the earlier agreement was
made.
(2) An agreement replaces another agreement if the Chief Commissioner is
satisfied the agreement made at the earlier date was an agreement for the same
land or substantially similar land.
Explanatory note
Items [1]-[5] of the proposed amendments provide for an increase in duty concessions available
under the First Home Buyers Assistance scheme for certain agreements and transfers that are
entered into during the period beginning on 1 August 2020 and ending on 31 July 2021.
Item [6] provides for refunds and exemptions from surcharge purchaser duty on transfers of
residential land to a foreign transferee when the transferee is an Australian corporation and--
(a) a building taken to be a build-to-rent property has been constructed on the land concerned by
the corporation or a related body corporate, and
(b) the corporation has become entitled under proposed section 9E of the Land Tax Management
Act 1956 to a reduction in the value of land (to be inserted into that Act by Schedule 3 to this
Bill).
Item [7] is a savings and transitional provision.
Page 7
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 2 Amendment of Land Tax Act 1956 No 27
Schedule 2 Amendment of Land Tax Act 1956 No 27
Section 5CA
Insert after section 5C--
5CA Surcharge land tax--build-to-rent properties owned by foreign persons
(1) An Australian corporation is entitled to a refund of an amount of surcharge
land tax paid by the corporation in respect of residential land owned by the
corporation at midnight on 31 December in a year (the taxing date),
commencing with midnight on 31 December 2020 and ending with midnight
on 31 December 2039, if the Chief Commissioner is satisfied that--
(a) a building that is taken to be build-to-rent property under section 9E of
the Principal Act has been constructed on the land concerned by the
corporation or a related body corporate (whether before or after the
taxing date), and
(b) the corporation is entitled under that section to a reduction in the value
of land.
(2) The amount of the refund to which an Australian corporation is entitled under
this section is the amount that is determined in accordance with an order made
by the Treasurer for the purposes of this section and published in the Gazette.
(3) The amount of the refund may be the full amount of surcharge land tax paid or
a lesser amount (as determined in accordance with the order).
(4) The Chief Commissioner may approve a foreign person as an exempt person
for particular land if the Chief Commissioner is of the opinion that the person
is likely to become entitled under this section to a refund of the full amount of
surcharge land tax payable by the person in respect of the land for a land tax
year.
(5) A foreign person is exempt from liability to pay surcharge land tax in respect
of the particular land for a land tax year if the person is approved as an exempt
person for the land for that land tax year.
(6) The approval of a foreign person as an exempt person under this section is
subject to the following provisions--
(a) an approval may be given for one or more land tax years and can be
given for a land tax year before or after the end of the land tax year,
(b) an approval may be given subject to conditions and the approval
operates subject to any such conditions,
(c) the conditions of an approval may be varied by the Chief Commissioner
at any time by notice to the person,
(d) an approval can be revoked by the Chief Commissioner at any time by
notice to the person,
(e) the revocation of an approval can be backdated to extend to a tax year
in respect of which the exemption conferred by the approval has already
been applied, in which case surcharge land tax is payable and is to be
assessed or reassessed as if the approval had never applied in respect of
that tax year.
(7) Without limiting subsection (6), if, within the period of 15 years after this
section first applied in relation to surcharge land tax, the land concerned is
subdivided or the ownership of the land is otherwise divided--
Page 8
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 2 Amendment of Land Tax Act 1956 No 27
(a) the person whose surcharge land tax has been refunded or liability to
pay the surcharge land tax has been exempted in accordance with this
section must, within 1 month, inform the Chief Commissioner of the
date on which the land was subdivided or the ownership of the land was
otherwise divided, and
(b) liability for surcharge land tax in respect of the following years is to be
reassessed as if this section had not applied to the person--
(i) the year in which the land is subdivided or the ownership of the
land is otherwise divided,
(ii) each preceding year in which a person's liability to pay surcharge
land tax was assessed in accordance with this section, but not
more than 15 preceding years, and
(c) the subdivision or division is taken to be a tax default for the purposes
of Part 5 of the Taxation Administration Act 1996.
(8) Surcharge land tax for a land tax year may be refunded under this section only
if an application for the refund is made--
(a) within 12 months after the owner of the land concerned became entitled
to the refund, and
(b) not later than 10 years after the land tax year concerned.
(9) For the purposes of section 9(3)(c) of the Taxation Administration Act 1996,
any reassessment under this section is authorised to be made more than 5 years
after the initial assessment.
(10) In this section--
Australian corporation means a corporation that is incorporated or taken to be
incorporated under the Corporations Act 2001 of the Commonwealth.
related body corporate has the same meaning as in the Corporations Act 2001
of the Commonwealth.
Explanatory note
The proposed amendment provides for refunds and exemptions from surcharge land tax payable on
residential land owned by a foreign person that is an Australian corporation if--
(a) a building taken to be a build-to-rent property has been constructed on the land concerned by
the corporation or a related body corporate, and
(b) the corporation has become entitled under proposed section 9E of the Land Tax Management
Act 1956 to a reduction in the value of land (to be inserted into that Act by Schedule 3 to this
Bill).
Page 9
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
Schedule 3 Amendment of Land Tax Management Act 1956
No 26
[1] Section 9AA Average value of land
Insert "9E," after "9D," in the note to section 9AA(4).
[2] Section 9E
Insert after section 9D--
9E Reduction in land value for certain build-to-rent properties
(1) This section applies in respect of land owned by a person at midnight on 31
December in any year (ending with midnight at the end of 31 December 2039).
Note. Under section 3AL of the Land Tax Act 1956, land tax is charged, levied,
collected and paid for the period of 12 months commencing on 1 January in the next
succeeding year for land owned at midnight on 31 December in any year. So this
reduction provision applies until the end of the 2040 land tax year.
(2) For the purpose of assessing land tax, the land value of a parcel of land is to be
reduced by 50% if--
(a) a building is situated on the land, and
(b) construction of the building commenced on or after 1 July 2020, and
(c) the Chief Commissioner is satisfied that a significant proportion of the
labour force hours spent on the construction of the building involves or
involved work performed by persons whom the Chief Commissioner
considers belong to any one or more of the following classes of
worker--
(i) apprentices or trainees,
(ii) long-term unemployed workers,
(iii) workers requiring upskilling,
(iv) workers with barriers to employment (such as persons with
disability),
(v) Aboriginal jobseekers,
(vi) graduates, and
(d) the Chief Commissioner is satisfied that the building is being used and
occupied for a build-to-rent property in accordance with guidelines
approved by the Treasurer for the purposes of this section, and
(e) an application for the reduction is made in accordance with this section.
(3) The guidelines may include provisions with respect to the following--
(a) the circumstances in which a building is taken to be a build-to-rent
property, including in relation to the following--
(i) the planning or development standards that must be complied
with,
(ii) the minimum lease conditions that must be offered to tenants of
the build-to-rent property,
(iii) the minimum scale of a building to qualify as a build-to-rent
property,
(iv) the nature of the ownership and management of the building and
the land on which the building is situated,
Page 10
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
(b) the circumstances in which the applicant is required to give an
undertaking to not subdivide the land or otherwise divide the ownership
of the land,
(c) other matters relating to build-to-rent properties and the land on which
build-to-rent properties are situated as the Treasurer determines
appropriate.
(4) The guidelines must include policies to promote the development of new
affordable housing and social housing in build-to-rent properties.
(5) Without limiting the other ways in which this section may cease to apply to a
person, it ceases to apply to a person if the person breaches an undertaking
given as referred to in subsection (3)(b).
(6) A guideline may--
(a) apply generally or be limited in its application by reference to specified
exceptions or factors, or
(b) apply differently according to different factors of a specified kind,
or both.
(7) If the Chief Commissioner is satisfied that only part of a parcel of land is being
used and occupied for a build-to-rent property, the reduction in land value
under subsection (2) is to be proportionately decreased in accordance with
guidelines approved by the Treasurer for the purposes of this section.
(8) This section does not apply to an owner of land in respect of a tax year
unless--
(a) the owner applies to the Chief Commissioner for the reduction, in the
form approved by the Chief Commissioner, and
(b) the owner furnishes the Chief Commissioner with the evidence that the
Chief Commissioner requests for the purpose of enabling the Chief
Commissioner to determine whether there is an entitlement to the
reduction.
(9) However, if, within the period of 15 years after subsection (2) first applied to
reduce the land value of a parcel of land, the land is subdivided or the
ownership of the land is otherwise divided--
(a) a person whose liability to pay land tax in respect of the land has been
assessed in accordance with this section must, within 1 month, inform
the Chief Commissioner of the date on which the land was subdivided
or the ownership of the land was otherwise divided, and
(b) liability for land tax in respect of the following years is to be reassessed
as if subsection (2) had not applied to the person--
(i) the year in which the land is subdivided or the ownership of the
land is otherwise divided,
(ii) each preceding year in which a person's liability to pay land tax
was assessed in accordance with this section, but not more than
15 preceding years, and
(c) the subdivision or division is taken to be a tax default for the purposes
of Part 5 of the Taxation Administration Act 1996.
(10) For the purposes of section 9(3)(c) of the Taxation Administration Act 1996,
any such reassessment is authorised to be made more than 5 years after the
initial assessment.
Page 11
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 3 Amendment of Land Tax Management Act 1956 No 26
(11) Any reassessment is not a relevant land tax assessment for the purposes of
section 35(1)(b) of the Valuation of Land Act 1916 if it is based on the same
land value or average value on which the original land tax assessment was
based (before the reduction was made under subsection (2) of this section).
(12) In this section--
affordable housing has the same meaning as in the Environmental Planning
and Assessment Act 1979.
social housing means residential accommodation provided by a social
housing provider within the meaning of the Residential Tenancies Act 2010.
Explanatory note
The proposed amendments provide that, for the purpose of assessing land tax, the land value of a
parcel of land is to be reduced by 50% if a building is situated on the land that constructed after 1 July
2020 as a build-to-rent property as determined in accordance with guidelines approved by the
Treasurer.
The proposed amendments also provide that if, within the period of 15 years after the first reduction
of land value under the proposed section, the land is subdivided or the ownership of the land is
otherwise divided, liability for land tax in respect of that year, and in each of the preceding 15 years
in which a person's liability to pay land tax was reduced, is to be reassessed as if the reduction in land
value had not applied to the land.
Page 12
State Revenue Legislation Amendment (COVID-19 Housing Response) Bill 2020 [NSW]
Schedule 4 Amendment of Payroll Tax Act 2007 No 21
Schedule 4 Amendment of Payroll Tax Act 2007 No 21
Section 66E
Insert after section 66D--
66E Wages funded by Commonwealth Aged Care Workforce Retention Grant
Opportunity
(1) Wages paid or payable on or after 1 June 2020 (but before 1 January 2021) are
exempt wages to the extent that they are funded by any payment (an Aged
Care Workforce payment) made under the program established by the
Commonwealth and known as the Aged Care Workforce Retention Grant
Opportunity.
(2) Any overpayment of Aged Care Workforce payments is to be disregarded in
calculating the amount of Aged Care Workforce payments for the purposes of
subsection (1).
Explanatory note
The proposed amendment provides for certain wages paid to employees that are funded by the
Commonwealth Aged Care Workforce Retention Grant Opportunity to be exempt from payroll tax.
Page 13
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