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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
Bill 2006
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Acts 2
4 Repeals 2
5 Repeal of Act 2
Schedule 1 Amendment of Duties Act 1997 No 123 3
Schedule 2 Amendment of Land Tax Management Act 1956 No 26 9
Schedule 3 Amendment of Pay-roll Tax Act 1971 No 22 12
Schedule 4 Amendment of Taxation Administration Act 1996 No 97 15
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, , 2006
New South Wales
State Revenue Legislation Amendment
Bill 2006
Act No , 2006
An Act to make miscellaneous amendments to certain State revenue legislation; and
for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 State Revenue Legislation Amendment Bill 2006
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the State Revenue Legislation Amendment Act 2006.
2 Commencement
(1) This Act commences on the date of assent, except as provided by
subsection (2).
(2) The following provisions commence, or are taken to have commenced,
on the dates indicated:
Section 4--30 June 2006,
Schedule 1 [14]-[16] and [24]--15 November 2005,
Schedule 1 [19]-[22]--1 July 2006,
Schedule 2 [1], [2] and [4]-[7]--31 December 2006.
3 Amendment of Acts
The Acts specified in Schedules 1-4 are amended as set out in those
Schedules.
4 Repeals
(1) The Petroleum Products Subsidy Act 1965 is repealed.
(2) The Petroleum Products Subsidy Regulation 1998 is repealed.
5 Repeal of Act
(1) This Act is repealed on the day following the day on which all of the
provisions of this Act have commenced.
(2) The repeal of this Act does not, because of the operation of section 30
of the Interpretation Act 1987, affect any amendment made by this Act.
Page 2
State Revenue Legislation Amendment Bill 2006
Amendment of Duties Act 1997 No 123 Schedule 1
Schedule 1 Amendment of Duties Act 1997 No 123
(Section 3)
[1] Section 23 What is the "unencumbered value" of dutiable property?
Insert after section 23 (3):
(4) Subsection (3) does not apply to improvements made to the land
for or on behalf of the transferee by the transferor.
[2] Section 50A Cancelled transfers of dutiable property
Omit section 50A (1) (b) and (c). Insert instead:
(b) the transfer was not cancelled to give effect to a subsale.
[3] Section 55 Property vested in an apparent purchaser
Omit section 55 (1) (b). Insert instead:
(b) a transfer of dutiable property from an apparent purchaser
to the real purchaser if:
(i) the dutiable property is property, or part of property,
vested in the apparent purchaser upon trust for the
real purchaser, and
(ii) the real purchaser provided the money for the
purchase of the dutiable property and for any
improvements made to the dutiable property after
the purchase.
[4] Section 55 (1A) and (1B)
Insert after section 55 (1):
(1A) For the purposes of subsection (1), money provided by a person
other than the real purchaser is taken to have been provided by the
real purchaser if the Chief Commissioner is satisfied that the
money was provided as a loan and has been or will be repaid by
the real purchaser.
(1B) This section applies whether or not there has been a change in the
legal description of the dutiable property between the purchase of
the property by the apparent purchaser and the transfer to the real
purchaser.
Note. For example, if the dutiable property is land, this section continues
to apply if there is a change in the legal description of the dutiable
property as a consequence of the subdivision of the land.
Page 3
State Revenue Legislation Amendment Bill 2006
Schedule 1 Amendment of Duties Act 1997 No 123
[5] Section 71 Restrictions on eligibility--previous ownership of residential
property or first home concession
Omit section 71 (6). Insert instead:
(6) Despite the other provisions of this section, the ownership at any
time of another residential property, or a previous application
under the scheme, may be disregarded if the Chief Commissioner
is satisfied that:
(a) the other residential property owned by the purchaser or
transferee is or was vested in the purchaser or transferee on
trust, or as an executor under a will, or the application was
made by the purchaser or transferee in his or her capacity
as trustee or executor, or
(b) the purchaser or transferee who owns or owned the other
residential property, or who has previously been a party to
an application, is acquiring an interest in the property that
is the subject of the application solely for the purpose of
assisting the eligible persons under the scheme in
financing the acquisition.
[6] Section 79 Determination of applications
Omit the section.
[7] Section 92 Other provisions
Omit "Sections 76 and 79 apply to this scheme in the same way as they apply"
from section 92 (1).
Insert instead "Section 76 applies to this scheme in the same way as it applies".
[8] Section 93 The nature of the scheme
Omit ", at the discretion of the Chief Commissioner,".
[9] Section 102 Determination of applications
Omit section 102 (1).
[10] Section 163H Acquisition statements
Omit "and whether it is an exempt transaction" from section 163H (2) (b).
[11] Section 163H (2) (e)-(h)
Omit the paragraphs.
Page 4
State Revenue Legislation Amendment Bill 2006
Amendment of Duties Act 1997 No 123 Schedule 1
[12] Section 163H (3)
Insert at the end of section 163H (before the note):
(3) If the acquisition is not an exempt transaction under Part 5, the
acquisition statement must also contain the following
information:
(a) the unencumbered value of all land holdings in New South
Wales of the landholder as at the date of the relevant
acquisition and as at the date of acquisition of each interest
acquired in the landholder during the 3 years prior to the
date of the relevant acquisition,
(b) the unencumbered value of the property of the landholder
at the date of the relevant acquisition,
(c) the amount of duty paid under this Act or under a law of
another Australian jurisdiction in respect of each earlier
acquisition of an interest referred to in paragraph (a),
(d) such other information as the Chief Commissioner may
require.
[13] Section 163ZY
Omit the section. Insert instead:
163ZY Reporting requirements
(1) It is a condition of registration of a wholesale unit trust scheme
under this Part that the responsible entity of the unit trust scheme
provides to the Chief Commissioner, within 1 month after 30
June in each year (commencing with 30 June 2007), a report in
an approved form containing particulars of the following in
relation to the period of 12 months ending on that 30 June:
(a) any acquisition by a person of any interest in the wholesale
unit trust scheme that would entitle the person, in the event
of an immediate distribution of all the property of the unit
trust scheme, to no less than 20% of the property
distributed,
(b) any acquisition by a person of any interest in the wholesale
unit trust scheme that, when aggregated with other
interests the person has in the unit trust scheme, would
entitle the person, in the event of an immediate distribution
of all the property of the unit trust scheme, to no less than
20% of the property distributed.
Page 5
State Revenue Legislation Amendment Bill 2006
Schedule 1 Amendment of Duties Act 1997 No 123
(2) The Chief Commissioner may, as a condition of registration,
impose other reporting requirements on the responsible entity of
a registered unit trust scheme (whether or not a wholesale unit
trust scheme).
(3) Requirements may be imposed under subsection (2) at the time of
registration or at any subsequent time by notice in writing to the
responsible entity.
[14] Section 226 Payment of duty on mortgages associated with debenture
issues
Insert "or a collateral mortgage that secures the same money as is secured by
a mortgage referred to in subsection (2)," after "subsection (2)," in section
226 (3B).
[15] Section 226 (3C) and (3CA)
Omit section 226 (3C). Insert instead:
(3C) For the purposes of the application of section 213 (2) to such a
mortgage (and the application of section 218B to any collateral
mortgage that secures the same money as the mortgage):
(a) the excess amount mentioned in section 213 (2) (c) is taken
to be limited to the amount of the advance or further
advance, and
(b) the mortgage is taken to have been duly stamped for the
total of:
(i) the disclosed debenture amount, and
(ii) any advances or further advances made on or after
the cut-off date in respect of which duty has been
paid under this Chapter.
(3CA) A mortgage executed before the cut-off date that is not liable to
duty under subsection (2) and in respect of which no further
advances have been made on or after the debenture concession
closure date is taken, for the purposes of the application of
section 218B to any collateral mortgage, to have been duly
stamped.
[16] Section 226 (4A)
Insert "on or after 1 January 1975 and" after "executed".
Page 6
State Revenue Legislation Amendment Bill 2006
Amendment of Duties Act 1997 No 123 Schedule 1
[17] Section 236 Circumstances in which duty is payable by the insured
person
Omit "an insurer (not being a registered insurer) or insurance intermediary"
from section 236 (2).
Insert instead "the person who is not a registered insurer".
[18] Section 236 (5)
Insert after section 236 (4) (before the note):
(5) In this section:
premium means any amount paid in connection with insurance to
a person who is not a registered insurer that would be a premium
under this Part if the person to whom it was paid was a registered
insurer.
[19] Section 243 What duty is payable?
Insert ", other than a group term insurance policy," after "term insurance
policy" in section 243 (2).
[20] Section 243 (2A)
Insert after section 243 (2):
(2A) Group term insurance policies
The amount of duty chargeable on a group term insurance policy
is:
(a) 5% of the first year's premium on the policy, and
(b) 5% of the amount of the premium (if any) payable in any
succeeding year in respect of each additional life covered
by the insurance policy (that is, each life that was not
covered during the previous year).
[21] Section 243 (5)
Insert after section 243 (4):
(5) In this section:
group term insurance policy means a term insurance policy that
applies in respect of the lives of a specified group of persons,
being a group the membership of which may change during the
term of the policy.
Page 7
State Revenue Legislation Amendment Bill 2006
Schedule 1 Amendment of Duties Act 1997 No 123
[22] Section 253 Monthly returns and payment of duty
Omit section 253 (a) (v). Insert instead:
(v) the total amount of all first year's premiums for temporary
or term life insurance received by or on behalf of the
registered insurer in the preceding month, and all
additional premiums referred to in section 243 (2A) (b)
(other than premiums for insurance that is exempt from
duty by Part 5), and
[23] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Amendment Act 2006
[24] Schedule 1, clause 57
Insert "Accordingly, section 226, as in force immediately before the debenture
concession closure date, continues to have effect in relation to those advances
or further advances." after "closure date." in clause 57 (1).
Page 8
State Revenue Legislation Amendment Bill 2006
Amendment of Land Tax Management Act 1956 No 26 Schedule 2
Schedule 2 Amendment of Land Tax Management
Act 1956 No 26
(Section 3)
[1] Section 10S Tax liability in respect of certain housing schemes
Omit the definition of eligible owner from section 10S (1).
[2] Section 10S (2) and (3)
Omit section 10S (2)-(4). Insert instead:
(2) Land is exempt from taxation under this Act if the land is eligible
land.
(3) This section applies in respect of the year commencing 1 January
2006 and any succeeding year.
[3] Schedule 1A Principal place of residence exemption
Insert after clause 2 (4):
(5) The principal place of residence exemption is subject to the
restrictions set out in Part 4.
[4] Schedule 1A, clause 8
Insert after clause 8 (3):
(4) Any period during which a person is in full time care is not to be
counted toward the maximum period referred to in subclause (2).
Accordingly, a person who is in full time care may continue to be
taken to use and occupy his or her former residence as his or her
principal place of residence during any period in which he or she
is in full time care.
(5) For the purposes of this clause, a person is in full time care during
any period in which the person:
(a) resides at a hospital or mental hospital as a patient of the
hospital, or
(b) resides at an aged care establishment (within the meaning
of section 10R) while being provided with residential care,
or respite care, or
(c) resides with another person (a carer) who is eligible for a
carer payment under the Social Security Act 1991 of the
Commonwealth because the carer provides care to the
person.
Page 9
State Revenue Legislation Amendment Bill 2006
Schedule 2 Amendment of Land Tax Management Act 1956 No 26
[5] Schedule 1A, clause 8 (9)
Insert after clause 8 (8):
(9) In this clause:
hospital means an institution at which relief is given to sick or
injured people through the provision of care or treatment.
mental hospital means an institution conducted principally for
the treatment of mentally ill persons, and includes a hospital
within the meaning of the Mental Health Act 1990.
[6] Schedule 1A, clause 9
Omit clause 9 (2) and (3). Insert instead:
(2) Subclause (1) operates only until whichever of the following
happens first:
(a) a period of 12 months expires after the date of the deceased
person's death,
(b) the land is transferred to any person (other than the
deceased person's personal representative, or a beneficiary
of the deceased person's estate).
(3) The Chief Commissioner may extend (and further extend) the
period of 12 months referred to in subclause (2) (a) if:
(a) the land has not been leased to any person since the date of
the deceased person's death, and
(b) the land has not been transferred to any person (other than
the deceased person's personal representative), and
(c) the Chief Commissioner is satisfied that:
(i) a person is using and occupying the land as his or
her principal place of residence, and
(ii) that person is likely to be a person in whom the
deceased's interest in the land vests pursuant to the
administration of the deceased's estate.
[7] Schedule 1A, clause 10
Insert "or with the permission of any other person to whom the land is
transferred following that death" after "conferred by the will of that owner" in
paragraph (b).
Page 10
State Revenue Legislation Amendment Bill 2006
Amendment of Land Tax Management Act 1956 No 26 Schedule 2
[8] Schedule 1A, clause 11
Omit "the land is owned by a company, unless the land is owned" from clause
11 (1) (a).
Insert instead "the land is owned, or jointly owned, by a company, unless the
land is owned or jointly owned".
[9] Schedule 1A, clause 11 (6)
Insert after clause 11 (5):
(6) This clause does not prevent the principal place of residence
exemption applying to land owned by a company if a provision
of this Act deems a natural person to be the owner of the land, to
the exclusion of the company.
Note. Section 21A provides that a company title unit is not to be
regarded as being owned by the company in which the relevant shares
are held. Section 26 provides for circumstances in which a purchaser or
vendor of land (including a company purchaser or vendor) is to be
regarded as the owner of the land when the purchase is not complete.
[10] Schedule 2 Savings and transitional provisions
Insert at the end of clause 1A (1):
State Revenue Legislation Amendment Act 2006
[11] Schedule 2, Part 18
Insert at after Part 17:
Part 18 Provisions consequent on enactment of
State Revenue Legislation Amendment Act
2006
39 Application of amendments
(1) Section 10S, as in force immediately before the amendments
made by the State Revenue Legislation Amendment Act 2006,
continues to apply in respect of the land tax payable in the year
commencing 1 January 1991 or any subsequent year before the
year commencing 1 January 2006.
(2) The amendments made to clauses 9 and 10 of Schedule 1A by the
State Revenue Legislation Amendment Act 2006 apply to the
assessment of liability for land tax payable in the year
commencing 1 January 2007 or any subsequent year, even if the
owner of the land died before the commencement of the
amendments.
Page 11
State Revenue Legislation Amendment Bill 2006
Schedule 3 Amendment of Pay-roll Tax Act 1971 No 22
Schedule 3 Amendment of Pay-roll Tax Act 1971
No 22
(Section 3)
[1] Section 3AD Inclusion of grant of shares and options as wages
Omit section 3AD (3) and (4). Insert instead:
(3) For the purposes of this section, the relevant day is the date on
which the share or option is granted to the employee, or the
vesting date, whichever date the employer elects to treat as the
date on which the wages are paid or payable.
(4) A share or option is granted to a person in the following
circumstances:
(a) in the case of a share--if the person acquires the share
(within the meaning of section 139G of the Income Tax
Assessment Act 1936 of the Commonwealth) or in the
circumstances prescribed by the regulations,
(b) in the case of an option--if the person acquires a right
(within the meaning of section 139G of the Income Tax
Assessment Act 1936 of the Commonwealth) to the share
to which the option relates or in the circumstances
prescribed by the regulations.
(4A) The vesting date in respect of a share is the date on which the
share vests in the employee (that is, when any conditions
applying to the grant of the share have been met and the
employee's legal or beneficial interest in the share cannot be
rescinded).
[2] Section 3AD (5) (b)
Omit the paragraph. Insert instead:
(b) the date on which the employee exercises a right under the
option to have the share the subject of the option
transferred to, allotted to or vest in him or her.
[3] Section 3AD (6)
Omit "an option", "the option" and "that option" wherever occurring.
Insert instead "a share or an option", "the share or option" and "that share or
option" respectively.
Page 12
State Revenue Legislation Amendment Bill 2006
Amendment of Pay-roll Tax Act 1971 No 22 Schedule 3
[4] Section 3AD (6A)
Insert after section 3AD (6):
(6A) If the grant of a share or option is withdrawn, cancelled or
exchanged before the vesting date for any valuable consideration
(other than the grant of other shares or options), the following
provisions apply:
(a) the date of withdrawal, cancellation or exchange is taken
to be the vesting date of the share or option,
(b) the market value of the share or option, on the vesting date,
is taken to be the amount of the valuable consideration
(and, accordingly, that amount is the amount paid or
payable as wages on that date).
[5] Section 3AD (7)
Omit the subsection. Insert instead:
(7) If an employer grants a share or an option to an employee and the
value of the grant of the share or option is nil or, if the employer
were to elect to treat the date of grant as the relevant day, the
wages constituted by the grant would not be liable to pay-roll tax,
the employer is taken to have elected to treat the wages
constituted by the grant of that share or option as being paid or
payable on the date on which the share or option was granted.
[6] Section 3AD (8)
Omit "by the employer".
[7] Section 3AE Value of shares and options
Omit "for the grant of" from section 3AE (1).
Insert instead "in respect of".
[8] Section 3AE (3A)
Insert after section 3AE (3):
(3A) Section 9 does not apply to the grant of a share or option that
constitutes wages, even if it constitutes a fringe benefit.
[9] Schedule 6 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
State Revenue Legislation Amendment Act 2006
Page 13
State Revenue Legislation Amendment Bill 2006
Schedule 3 Amendment of Pay-roll Tax Act 1971 No 22
[10] Schedule 6, Part 12
Insert after Part 11:
Part 12 Provisions consequent on enactment of
State Revenue Legislation Amendment Act
2006
21 Amendments relating to employee share schemes
(1) The employee share scheme amendments have effect as if those
amendments had commenced on 1 July 2005, subject to this
clause.
(2) An employer who included the grant of a share in the taxable
wages for the employer for the financial year commencing 1 July
2005 is taken to have elected to treat the grant date of the share as
the date on which the wages constituted by the grant of that share
are paid or payable.
(3) Liability for pay-roll tax in respect of any shares or options
granted by an employer on or after 1 July 2003, but before 1 July
2005, is to be determined in accordance with this Act as amended
by the employee share scheme amendments, if the employer so
elects.
(4) Anything done or omitted to be done on or after 1 July 2003 and
before the date of assent to the State Revenue Legislation
Amendment Act 2006, that would have been validly done or
omitted if the employee share scheme amendments had been in
force at the time that it was done or omitted, is taken to have been
validly done or omitted.
(5) In this clause:
employee share scheme amendments means the amendments
made to sections 3AD and 3AE by the State Revenue Legislation
Amendment Act 2006.
Page 14
State Revenue Legislation Amendment Bill 2006
Amendment of Taxation Administration Act 1996 No 97 Schedule 4
Schedule 4 Amendment of Taxation Administration
Act 1996 No 97
(Section 3)
Section 82 Permitted disclosures--to particular persons
Insert after section 82 (k) (xi):
(xia) the Director-General of the Department of State and
Regional Development,
Page 15
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