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This is a Bill, not an Act. For current law, see the Acts databases.
Serial 52
Treasury Legislation and
Consequential Amendment Bill 2006
Mr
Stirling
AN ACT
to amend
legislation administered by the Treasurer and for related purposes
NORTHERN TERRITORY OF AUSTRALIA
TREASURY LEGISLATION AND CONSEQUENTIAL
AMENDMENT
ACT 2006
____________________
Act No. [ ] of 2006
____________________
TABLE OF PROVISIONS
Section
NORTHERN TERRITORY OF
AUSTRALIA
____________________
Act No. [ ] of 2006
____________________
AN ACT
[Assented to [ ] 2006]
[Second reading [ ] 2006]
The Legislative Assembly of the Northern Territory enacts as follows:
This Act may be cited as the Treasury Legislation and Consequential Amendment Act 2006.
(1) This Part comes into operation on the day on which the Administrator's assent to this Act is declared.
(2) Part 2 is taken to have come into operation on 2 May 2006.
(3) The remaining provisions of this Act come into operation
on
1 July 2006.
PART 2 – AMENDMENTS ABOUT FIRST HOME OWNER GRANTS AND CONCESSIONS AND PRINCIPAL PLACE OF RESIDENCE REBATES
Division 1 – First Home Owner Grant Act
This Division amends the First Home Owner Grant Act.
Section 11(3)
omit
date on which the application is made, held an interest in property (other than property to which the application relates)
substitute
commencement date of the eligible transaction to which the application relates, held an interest in property
This Division amends the Stamp Duty Act.
(1) After section 8B(2)(d)
insert
(da) the conveyee does not have, or none of the conveyees has, any beneficial interest in the land the subject of the conveyance; and
(2) Section 8B(2)(a) to (d) and (e), at the end
insert
and
(3) Section 8B(4)
omit
(d),
substitute
(d), (da),
(1) After section 8C(2)(b)
insert
(ba) the conveyee does not have, or none of the conveyees has, any beneficial interest in the land the subject of the conveyance; and
(2) Section 8C(2)(a), (b) and (c), at the end
insert
and
(3) Section 8C(3)
omit
(b),
substitute
(b), (ba),
PART 3 – FURTHER AMENDMENTS ABOUT FIRST HOME OWNER GRANTS AND CONCESSIONS AND PRINCIPAL PLACE OF RESIDENCE REBATES
Division 1 – First Home Owner Grant Act
This Division amends the First Home Owner Grant Act.
(1) Section 6
omit
If
substitute
(1) If
(2) Section 6, at the end
insert
(2) In this Act, a reference to an applicant's spouse or de facto partner, in relation to an application, is a reference to the applicant's spouse or de facto partner at the commencement date of the eligible transaction to which the application relates.
Section 9(1) and (2), after "a permanent resident"
insert
at the time of making the application
After section 11(4)
insert
(5) Also, for subsection (3), the applicant or the applicant's spouse or de facto partner is taken not to have used the property as the residence of the applicant or the applicant's spouse or de facto partner if:
(a) the property was the subject of an earlier application under this Act or a corresponding law by the applicant or the applicant's spouse or de facto partner; and
(b) a first home owner grant was not paid under the earlier application because the Commissioner did not exempt the applicant or the applicant's spouse or de facto partner from the requirement in section 8(1)(b).
After section 12(1B)
insert
(1C) The Commissioner may approve a longer period under subsection (1B) only if satisfied there are special reasons to do so.
After section 40, in Part 3, Division 2
insert
40A. Self-incrimination no excuse
(1) A person is not excused from answering a question or producing relevant material for an authorised investigation on the ground that the answer or relevant material might tend to incriminate the person.
(2) However, an answer to a question or relevant material provided by the person for an authorised investigation is not admissible against the person in any criminal proceeding except a proceeding for an offence against this Act or the Taxation (Administration) Act.
Section 41(3)(a)
omit
Commissioner within 14 days after receiving the notice
substitute
Commissioner, within 30 days after the date of the notice,
(1) After section 43(3)(e)
insert
(ea) to any of the following officers:
(i) an officer of the Australian Taxation Office;
(ii) an officer of the Commonwealth services delivery agency known as Centrelink;
(iii) an officer of the Commonwealth department primarily responsible for immigration; or
(2) Section 43(3)(a) to (e) and (f), at the end
insert
or
This Division amends the Stamp Duty Act.
(1) Section 8B(1)
insert (in alphabetical order)
"period for occupancy", in relation to a conveyee, including a conveyee mentioned in subsection (4)(a), means:
(a) for a home mentioned in subsection (2)(g)(i) – the 12-month period or longer approved period applicable under that subsection; or
(b) for a home mentioned in subsection (2)(g)(ii) – the applicable period under subsection (2)(g)(ii)(B)(I) or (II);
"relevant time" means the time when the instruments effecting or evidencing a conveyance of land are executed;
(2) Section 8B(1), definition of "prescribed period", paragraph (b)
omit, substitute
(b) a shorter continuous period approved under subsection (12)(a);
(3) Section 8B(1A)
omit
time the instruments effecting a conveyance are executed
substitute
relevant time
(4) Section 8B(2)(aa)
omit
when the instruments evidencing the conveyance are executed
substitute
at the relevant time
(5) Section 8B(2)(b), after "resident"
insert
at the time of making the declaration mentioned in subsection (10)
(6) Section 8B(2)(c), after "partner"
insert
at the relevant time
(7) Section 8B(2)(c), after "partners"
insert
at the relevant time
(8) Section 8B(2)(d), after "partner"
insert
at the relevant time
(9) Section 8B(2)(d), after "partners"
insert
at the relevant time
(10) Section 8B(2)(g)(i)
omit
all the words from "within" to "conveyance"
substitute
within 12 months, or within a longer period approved by the Commissioner, after the relevant time
(11) Section 8B(2)(g)(ii)(A)
omit
execution of the instruments evidencing the conveyance
substitute
relevant time
(12) Section 8B(2)(g)(ii)(B)(I)
omit
one year
substitute
12 months
(13) Section 8B(2)(g)(ii)(B)(II)
omit
the other
substitute
the
(14) Section 8B(4)
omit (all references)
period referred to in subsection (2)(g)
substitute
period for occupancy
(15) Section 8B(4)
omit
that paragraph.
substitute
subsection (2)(g).
(16) Section 8B(5)(a) and (6)(a)
omit, substitute
(a) within the period for occupancy; or
(17) After section 8B(11)
insert
(11A) If the Commissioner has refused to exempt a conveyee under subsection (11), the conveyee is taken not to have had a relevant interest in the residential property for which the conveyee did not receive the first home owner concession.
(18) Section 8B(12)
omit, substitute
(12) The Commissioner may approve the following periods only if satisfied there are special reasons to do so:
(a) a shorter prescribed period mentioned in subsection
(2)(g)(i)
or (ii)(B);
(b) a longer period mentioned in subsection (2)(g)(i) or (ii)(B)(II).
(1) Section 8C(1), definition of "prescribed period", paragraph (b)
omit, substitute
(b) a shorter continuous period approved under subsection (10)(a);
(2) Section 8C(2)(e)(i)
omit
one year, or the other
substitute
12 months, or within a
(3) Section 8C(2)(e)(ii)(B)(I)
omit
one year
substitute
12 months
(4) Section 8C(2)(e)(ii)(B)(II)
omit
the other
substitute
the
(5) Section 8C(10)
omit, substitute
(10) The Commissioner may approve the following periods only if satisfied there are special reasons to do so:
(a) a shorter prescribed period mentioned in subsection
(2)(e)(i)
or (ii)(B);
(b) a longer period mentioned in subsection (2)(e)(i) or (ii)(B)(II).
PART 4 – AMENDMENTS ABOUT ABOLITION OF DUTY ON MARKETABLE SECURITIES
Division 1 – Taxation (Administration) Act
This Division amends the Taxation (Administration) Act.
(1) Section 4(1)
insert (in alphabetical order)
"relevant acquisition" has the meaning in section 56P;
(2) Section 4(1), definition of "trustee"
omit
includes –
substitute
includes the following:
(3) Section 4(1), definition of "trustee", paragraph (d)
omit
winding-up; and
substitute
winding-up.
(4) Section 4(1), definition of "trustee", paragraph (f)
omit
Section 19(2)
omit
is not payable on
substitute
mentioned in Division 8A is not payable in respect of a relevant acquisition if, and to the extent that, the relevant acquisition is the result of
Section 20(1)
omit, substitute
(1) Subject to subsections (2) and (4):
(a) duty is not payable on a conveyance of dutiable property, or a transfer of a motor vehicle certificate of registration, from one group corporation to another group corporation; and
(b) duty mentioned in Division 8A is not payable in respect of a relevant acquisition if, and to the extent that, the relevant acquisition is the result of a conveyance of marketable securities from one group corporation to another group corporation.
Section 22
repeal
Part III, Division 11
repeal
(1) Section 83A(1A)
omit, substitute
(1A) In subsection (1), dutiable property includes property prescribed, or of a class prescribed, for this subsection.
(2) Section 83A(1B)(a) and (b)
omit
and marketable securities
(3) Section 83A(1B)(c) and (d)
omit (all references)
or marketable securities
(1) Section 83B(1)(a)
omit
Property";
substitute
Property"; or
(2) Section 83B(1)(b)
omit
(3) Section 83B(3)(c)(i)
omit, substitute
(i) to be an instrument effecting the transaction to which it relates and is chargeable with the ad valorem duty mentioned in subsection (1) appropriate to the transaction; and
The Schedule has effect.
Division 2 – Taxation (Administration) Regulations
This Division amends the Taxation (Administration) Regulations.
(1) Regulation 11(1)
omit
(1) For the purposes of
substitute
For
(2) Regulation 11(2)
omit
This Division amends the Stamp Duty Act.
(1) Section 8H(1), definition of "scheme property"
omit
or marketable securities
(2) Section 8H(2)(a)
omit
or a marketable security
(3) Section 8H(2)(a)(i) and (ii)
omit
or marketable security
(4) Section 8H(2)(b)
omit
or a marketable security
(5) Section 8H(2)(b)(i)
omit
or marketable security
(6) Section 8H(2)(c)
omit
or a marketable security
Schedule 1, item 20
omit
Schedule 2, items 15 to 22
omit
PART 5 – AMENDMENTS ABOUT LIABILITY TO DUTY FOR LEASES
Division 1 – Taxation (Administration) Act
This Division amends the Taxation (Administration) Act.
(1) Section 4(1), definitions of "franchise", "franchisor" and "rent"
omit
(2) Section 4(1)
insert (in alphabetical order)
"rent" includes any amount of GST payable in relation to the supply of the property for which rent is paid or payable;
Section 4C
omit
all the words from "assessed –" to "under it."
substitute
assessed as if it were a conveyance of that dutiable property from the franchisee mentioned in paragraph (a) to the person who is the franchisee under it.
(1) Section 9BA(1)
omit
(1) Where,
substitute
Where,
(2) Section 9BA(2)
omit
Section 9BB(1)
omit
the purposes of section 9BA(1)
substitute
section 9BA
Sections 9BC, 53, 54, 55, 55AA and 56
repeal
Section 56B
omit
56 or
After section 136
insert
PART XI – TRANSITIONAL MATTERS FOR TREASURY LEGISLATION AND CONSEQUENTIAL AMENDMENT ACT 2006
Division 1 – Preliminary matters
In this Part:
"amendment Act" means the Treasury Legislation and Consequential Amendment Act 2006;
"former Act" means this Act as in force immediately before 1 July 2006;
"repealed", in relation to a specified provision, means the provision as in force immediately before 1 July 2006.
138. Application of former Act to lease executed before 1 July 2006
Despite the amendments effected by Part 5 of the amendment
Act, the former Act continues to apply in relation to a lease first executed
before
1 July 2006 unless this Division specifies
otherwise.
139. Duty if rent unascertainable
(1) This section applies in relation to a lease first
executed before
1 July 2006 and mentioned in repealed
section 55(1).
(2) Repealed section 55(7)(b) applies only to the extent required to enable the Commissioner to refund to the lessee the difference between the duty paid under the lease based on an estimate of unascertainable rent and the duty that would have been payable had it been based on the rent actually paid under the lease.
(3) Repealed section 55(9) does not apply except to the extent that a lessee, when resubmitting the lease to the Commissioner, must do so together with a statement setting out the amounts mentioned in repealed section 55(9)(a) and (b).
140. Refund if early determination of lease
(1) This section applies in relation to a lease first
executed before
1 July 2006 and mentioned in repealed
section 56.
(2) Repealed section 56 does not apply in relation to the refund of duty paid in respect of the grant of the lease unless:
(a) the application made under repealed section 56 is accompanied by the following documents:
(i) the instrument evidencing the grant of the lease;
(ii) a declaration by the applicant stating that neither the lessee or any associate of the lessee has occupied the leased property after the determination of the lease and will not do so (other than as a result of the sale of the property to the lessee or associate); and
(b) the Commissioner is satisfied as to the truth of the applicant's declaration.
(3) For subsection (2)(a)(ii), an associate of a lessee has the same meaning as in section 56A(7).
(4) In subsection (2)(a)(ii), a reference to the leased property includes a reference to property substantially the same as the leased property.
This Division amends the Stamp Duty Act.
(1) Schedule 1, item 12
omit
or a franchise arrangement
(2) Schedule 1, item 12(1) and (2)
omit
(3) Schedule 1, item 12(3)
omit
all the words from "In" to "rent"
substitute
In respect of a lease where there is valuable consideration other than rent under the lease
(4) Schedule 1, item 12(3)
omit
"Schedule"
substitute
Schedule, assessed on the amount of consideration other than rent
(5) Schedule 1, item 12(4)
omit
(6) Schedule 1, item 12(5)
omit
Schedule
substitute
Schedule, assessed on the unencumbered value of the interest in land granted under the lease
(7) Schedule 1, item 12(5)(b)
omit
notwithstanding paragraphs (1) to (4) inclusive,
(8) Schedule 1, item 12(6)
omit
(9) Schedule 1, item 12(7)
omit
a contract or agreement to grant such lease
substitute
an agreement to grant the lease and the agreement has been
This Division amends the Land Title Act.
Section 66(1)(c)
omit
amount paid or
substitute
rent paid or payable and
PART 6 – AMENDMENTS ABOUT LAND-HOLDING CORPORATIONS
This Part amends the Taxation (Administration) Act.
Section 4(1)
insert (in alphabetical order)
"associated person", in relation to a corporation, has the meaning in section 4A(4);
(1) Section 4A(2)(a)
omit
of a kind specified in section 56C(2)(a)(i) to (vi) (inclusive);
substitute
specified in subsection (4); or
(2) Section 4A(2)(b)
omit
of a kind specified in section 56C(2)(c)(i) to (iv) (inclusive)
substitute
specified in subsection (6)
(3) Section 4A(3)(a)
omit
within the meaning of section 56P
(4) After section 4A(3)
insert
(4) The following persons are associated persons in relation to a corporation:
(a) a related corporation within the meaning of section 50 of the Corporations Act 2001 (a "related corporation");
(b) if the corporation is a trustee:
(i) a natural person who is a beneficiary under a trust of the corporation; or
(ii) another trustee if there is a beneficiary common to the trusts of the corporation and the other trustee;
(c) a director or secretary of the corporation or a related corporation;
(d) a person who is beneficially entitled to a shareholding in the corporation or a related corporation;
(e) a relative, specified in subsection (6), of a natural person mentioned in paragraph (b)(i), (c) or (d);
(f) another corporation in which the corporation or a person mentioned in paragraph (b)(i), (c), (d) or (e) is beneficially entitled to a shareholding;
(g) a trustee if the corporation or a person mentioned in paragraph (a), (c) or (d) is a beneficiary of a trust of the trustee.
(5) For subsection (4)(b) and (g), a person is a beneficiary whether the person has a vested share, is contingently entitled or may benefit from a discretionary trust.
(6) The following persons are relatives of a party who is a natural person:
(a) a spouse or de facto partner of the party;
(b) a child or remoter lineal descendant of the party;
(c) a parent or remoter lineal ancestor of the party;
(d) a brother or sister of the party;
(e) a spouse or de facto partner of a person mentioned in paragraphs (b) to (d).
Part III, Division 8A, heading
repeal, substitute
Division 8A – Relevant acquisitions in certain corporations and unit trust schemes entitled to land
(1) Section 56C(1), definition of "interest"
omit
(2) Section 56C(1)
insert (in alphabetical order)
"beneficiary", in relation to a discretionary trust, has the same meaning as in section 56BAA;
"change in control", of a beneficiary under or trustee of a discretionary trust, has the meaning in section 56CA;
"declaration of trust over shares" means a declaration (other than by a will or testamentary instrument) that identified shares vested or to be vested in the person making the declaration are or are to be held in trust for the person, or for the purpose, mentioned in the declaration even though the beneficial owner of the shares or the person entitled to appoint the shares may not have joined in or assented to the declaration;
"interest" has the meaning in section 56Q, and includes a significant interest;
"land-holding corporation" has the meaning in section 56N(2);
"linked entity", of a corporation, has the meaning in section 56NA(1);
"significant interest" has the meaning in section 56Q(4);
"statutory vesting" means the vesting of shares under a law of the Commonwealth, a State or Territory or a jurisdiction outside Australia (including the vesting of shares under a law that continues a person or body in existence or establishes a new person or body as the successor in law of a person or body in which the shares were previously vested);
(3) Section 56C(1), definition of "acquire"
omit
corporation to which this Division applies, includes acquire the interest or shareholding by virtue of –
substitute
land-holding corporation, includes acquire the interest or shareholding in any of the following ways:
(4) Section 56C(1), definition of "acquire", paragraph (a)
omit
to the person or another person
(5) Section 56C(1), definition of "acquire", paragraph (b)
omit
by the corporation or by the person or another person
(6) Section 56C(1), definition of "acquire", paragraph (cb)
omit
to which Division 8AA applies
substitute
over shares
(7) Section 56C(1), definition of "acquire", paragraphs (cc) and (cd)
omit, substitute
(cc) if shares are held subject to a discretionary trust – the addition of a beneficiary or class of beneficiaries to the existing beneficiaries under the trust;
(cd) if shares are held subject to a discretionary trust – a change in control of a beneficiary under, and a change of or in control of a trustee of, the trust, if both changes:
(i) occur within a 12-month period; and
(ii) arise from (or substantially from) one transaction or one series of transactions;
(8) Section 56C(1), definition of "acquire", paragraph (ce)
omit
to which Division 8B applies
(9) Section 56C(1), definition of "private unit trust scheme", paragraph (b)(i), (ii) and (iii)
omit, substitute
(i) fewer than 300 persons are beneficially entitled to units under the scheme;
(ii) a person, whether alone or together with related persons, is beneficially entitled to 20% or more of the issued units under the scheme;
(iii) no units in the scheme have been offered to the public under a prospectus or product disclosure statement lodged with ASIC;
(10) Section 56C(2)
omit
(11) Section 56C(3)(h)
omit
to which Division 8AA applies
substitute
over shares
(12) Section 56C(3)(i)
omit
under a discretionary trust to which Division 8AAA applies
substitute
to the existing beneficiaries under a discretionary trust
(13) Section 56C(5)
omit
the purposes of subsections (2) and
substitute
subsection
(14) Section 56C(10)
omit
to which Division 8AA applies –
substitute
over shares:
(15) Section 56C(11)
omit
under a discretionary trust to which Division 8AAA applies –
substitute
to the existing beneficiaries under a discretionary trust:
(16) After section 56C(11)
insert
(11A) For this Division, the addition of a beneficiary or class of beneficiaries to the existing beneficiaries under a discretionary trust includes any of the following:
(a) the addition of a beneficiary who is a natural person or a body corporate;
(b) the addition of a class of beneficiaries the members of which are natural persons, bodies corporate or both;
(c) the addition of a person or class of persons in whom the whole or part of the trust property vests if the trustee does not make a determination to vest that whole or part;
(d) the transfer or other disposition by a beneficiary of his or her beneficial interest under the trust.
(11B) If the effect of an amendment or variation of the terms
of a
non-discretionary trust is to create a
discretionary trust, this Division applies in
relation
to the discretionary trust as if, at the time the amendment or variation is
made:
(a) there are beneficiaries or classes of beneficiaries already existing under the discretionary trust; and
(b) the beneficiaries or classes of beneficiaries under the discretionary trust are added to the existing beneficiaries or classes of beneficiaries.
(17) Section 56C(12)
omit
to which Division 8AAA applies –
substitute
mentioned in paragraph (cd) of the definition of "acquire":
(18) Section 56C(13)
omit
vesting to which Division 8B applies –
substitute
vesting:
After section 56C
insert
56CA. Change in control of beneficiary or trustee of discretionary trust
(1) For this Division, a change in control of a beneficiary under or trustee of a discretionary trust is a change in the person or persons acting together who may (directly or indirectly) exercise, control the exercise of, or substantially influence the exercise of:
(a) the majority of voting power at meetings of the directors of the beneficiary or trustee; or
(b) more than 50% of the voting power attached to voting shares issued by the beneficiary or trustee.
(2) Also, a change of or in control of a trustee includes the following:
(a) a change of or in control of the person who has the power to appoint and revoke the appointment of the trustee;
(b) a variation in, or the transfer or other disposition of, that power;
(c) a change of or in control of a person who is in a position to influence (directly or indirectly) a determination by the trustee to vest the whole or part of the trust property;
(d) the appointment of an additional trustee.
Section 56D(1)
omit
corporation to which this Division applies
substitute
land-holding corporation
(1) Section 56F(1)(a)
omit
lodged;
substitute
lodged; and
(2) Section 56F(1)
omit
subsidiary as defined in section 56N(5)
substitute
linked entity of the corporation
(3) Section 56F(7), (8) and (9)
omit (all references)
subsidiary
substitute
linked entity
(1) Section 56K(1)
omit
corporation to which this Division applies
substitute
land-holding corporation
(2) Section 56K(1A)(a)
omit, substitute
(a) has shares quoted on a recognised financial market and the quotation is not a tax avoidance scheme or part of a tax avoidance scheme; or
(3) Section 56K(3)
omit
shall be lodged within 3 months
substitute
must be lodged within 60 days
(1) Section 56M(2)(a), after "Act"
insert
as in force before 1 July 2006
(2) Section 56M(2)(c)(i), after "market"
insert
and the quotation was not a tax avoidance scheme or part of a tax avoidance scheme
(3) Section 56M(2)(c)(v)
omit
to which Division 8AA applies
substitute
over shares
(4) Section 56M(2)(c)(vi)
omit
under a discretionary trust to which Division 8AAA applies
substitute
to the existing beneficiaries under a discretionary trust
(5) Section 56M(2)(c)(vii)
omit
to which Division 8AAA applies
substitute
mentioned in paragraph (cd) of the definition of "acquire" in
section 56C(1)
(6) Section 56M(2)(c)(viii)
omit, substitute
(viii) if the corporation is a unit trust scheme and the interest is acquired before 1 July 2006, but within the relevant period, and the aggregate of the interests held by the person and related persons in the scheme after the acquisition is less than 50%;
(7) Section 56M(2)(c)(x), after "section 22"
insert
as in force before 1 July 2006 or by virtue of section 19 or 20 as in force on or after 1 July 2006
(8) After section 56M(2)
insert
(2A) Subject to subsection (2B), there is to be deducted from the duty chargeable on a statement lodged under section 56K the amount payable by a person under this Division in respect of the proportion of the dutiable value of the acquisition of an interest in the corporation in respect of land to which the corporation is entitled if the interest is acquired within the relevant period by the person or any related persons and a direct conveyance of the land from the person who held the interest to the person who acquired the interest:
(a) would not be liable to ad valorem duty under Schedule 1, item 5 to the Stamp Duty Act because of a law of the Territory, other than:
(i) by virtue of Division 2; or
(ii) if the acquisition of the interest is the result of:
(A) a declaration of a trust over shares; or
(B) the addition of a beneficiary or class of beneficiaries to the existing beneficiaries under a discretionary trust; or
(C) a change in control of a beneficiary under, and a change of or in control of a trustee of, a discretionary trust mentioned in paragraph (cd) of the definition of "acquire" in section 56C(1); or
(b) would be exempt from duty because of an order under the Family Law Act 1975 (Cth):
(i) relating to the marriage or former marriage (including a void marriage) of the person who held the interest and the person who acquired the interest; and
(ii) the person who acquired the interest is not an agent or trustee of another person.
(2B) Subsection (2A) applies only if an amount payable in respect of the acquisition of the interest in the corporation has not been deducted under subsection (2)(c).
(9) Section 56M(3)(b)
omit
30 days after the date on which the person is informed of the assessment
insert
within 60 days after the occurrence of the relevant acquisition
Section 56N
repeal, substitute
56N. Corporation to which Division applies
(1) This Division applies to a land-holding corporation in which a person acquires a relevant acquisition.
(2) A land-holding corporation is a corporation entitled to land that has an unencumbered value of at least $500 000.
(1) A linked entity of a corporation is a person who is part of a chain of persons:
(a) that includes the corporation; and
(b) that is comprised of one or more links; and
(c) in which a link exists if a person, whether alone or together with other linked entities, would be entitled to receive at least 20% of the unencumbered value of the property of another person in the chain (the "property-holder").
(2) For subsection (1)(c), a person's entitlement at a particular time is determined in the following way:
(a) if the property-holder is a corporation – as an entitlement to participate as a shareholder in the distribution of the property on a winding-up of the corporation, at that time, calculated in accordance with section 56C(6);
(b) if the property-holder is a trustee of a trust – as an entitlement on the distribution of the trust, at that time, determined in accordance with section 56C(7).
56NB. Unencumbered value of land of corporation
(1) The unencumbered value of land to which a corporation is entitled at a particular time is the aggregate of the following amounts:
(a) the unencumbered value, at that time, of land to which the corporation is entitled in its own right;
(b) the portion of the unencumbered value, at that time, of land to which the corporation would be entitled if each linked entity were to be wound up.
(2) For subsection (1)(b), the portion of the unencumbered value to which the corporation would be entitled is the value determined without regard to any liabilities of a linked entity.
(3) For this section:
(a) a person is taken to be entitled to land that is subject to an agreement for the sale or purchase of the land by the person; and
(b) a person who is entitled to land as a co-owner of the land is taken to be entitled to the whole of the land unless the Commissioner is satisfied the reason for the person being a co-owner is not to defeat the object of this Division.
(1) Section 56P
omit (all references)
majority
substitute
significant
(2) Section 56P(a), at the end
insert
or
(1) Section 56Q(2)
omit
(2) After section 56Q(3)
insert
(4) A person has a significant interest in a corporation if the person's entitlement, mentioned in subsection (3), is:
(a) 50% or more of all the corporation's property; or
(b) for an interest in a unit trust scheme – 20% or more of all the scheme's property.
(1) Section 56R(2)
omit
entitled, as provided by subsection (4),
substitute
entitled
(2) Section 56R(4)
omit
(1) Section 56S(3)(a) and (b)
omit (all references)
subsidiary
substitute
linked entity
(2) Section 56S(3)
omit
land-holder
substitute
land-holding corporation
Section 56T
repeal, substitute
Unless the context indicates or requires otherwise, this Division applies to a unit trust scheme as if:
(a) the unit trust scheme were a corporation; and
(b) a unit in the unit trust scheme were a share in a corporation; and
(c) the acquisition of units in the unit trust scheme were the acquisition of shares in a corporation; and
(d) a reference to the constitution or rules of a corporation were a reference to the constituent documents of a unit trust scheme; and
(e) a reference to a winding-up of a corporation were a reference to a termination of a unit trust scheme.
Section 123A, after "48,"
insert
56K(6),
After section 140
insert
141. Application of Act after 1 July 2006 to duty chargeable for acquisition of interest in land-holding corporation
(1) This section applies to a land-holding corporation (including a land-holding unit trust scheme) to which Part III, Division 8A applies.
(2) Despite the amendments effected by Part 6 of the amendment Act, the former Act continues to apply in relation to duty chargeable for the following:
(a) an interest acquired in a land-holding corporation if the acquisition occurred before 1 July 2006;
(b) subject to subsection (3), an interest acquired in a
land-holding corporation if the acquisition occurred between 1 July 2006 and
31 December 2006 pursuant to an agreement entered into
before
2 May 2006.
(3) Subsection (2)(b) does not apply in relation to a land-holding corporation whose shares are quoted on a recognised financial market and the quotation is a tax avoidance scheme or part of a tax avoidance scheme.
PART 7 – MISCELLANEOUS AMENDMENTS ABOUT DUTIABLE PROPERTY, ASSESSMENTS AND RECOVERY OF DUTY AND PENALTIES
Division 1 – Taxation (Administration) Act
This Division amends the Taxation (Administration) Act.
(1) Section 4(1)
insert (in alphabetical order)
"surrender of dutiable property" has the meaning in section 4D;
(2) Section 4(1), definition of "conveyance"
omit
settlement, foreclosure,
substitute
settlement, surrender, foreclosure,
(3) Section 4(1), definition of "dutiable property", paragraphs (g) and (ga)
omit
surrendered or relinquished or
After section 4A
insert
4AB. Assessing value of share of dutiable property
The unencumbered value of an undivided share of dutiable property, whether held jointly or in common, is assessed by multiplying the total unencumbered value of the property by the share expressed as a fraction.
After section 4C
insert
4D. Surrender and constructive surrender of dutiable property
(1) A surrender of dutiable property, includes surrender of the property by any of the following methods:
(a) abandonment;
(b) abrogation;
(c) cancellation;
(d) extinguishment;
(e) forfeiture;
(f) redemption;
(g) relinquishment.
(2) If dutiable property is surrendered by a person but is not transferred or assigned to or does not vest in or accrue to another person but, in the opinion of the Commissioner, the surrender amounts to or has the same effect as a conveyance of the property to another person (the "receiver"), the surrender is taken to be a conveyance of the property.
(3) If subsection (2) applies:
(a) the dutiable property surrendered is taken to be the property conveyed; and
(b) the receiver is taken to be the conveyee; and
(c) the conveyance is taken to have occurred at the earlier of the following:
(i) when the property is surrendered;
(ii) if an instrument effects, or when recorded in a register will effect, the surrender – when the instrument is executed by the parties to the transaction.
(4) If a surrender of dutiable property is taken to be a conveyance of the property, the unencumbered value of the property is determined immediately before the surrender.
(5) Without limiting this section, a surrender of dutiable property has the same effect as a conveyance of the property if the surrender:
(a) removes a restriction on the right of the receiver to use the property; or
(b) enables all or part of the same, or substantially similar, dutiable property to be conveyed from the receiver to another person (including under a franchise arrangement).
Section 10(3) to (5)
omit
(1) After section 56A(1)
insert
(1A) Subsection (1) does not apply in relation to the grant of a lease if the lessee or an associate of the lessee has occupied the leased property (or property substantially the same as the leased property), except as a result of the sale of the property to the lessee or associate, after the date when the grant did not proceed.
(2) After section 56A(4)
insert
(5) If duty has been remitted or refunded under subsection (1) for a transaction, and the Commissioner subsequently forms the opinion there has been a subsequent sale or other disposition of the dutiable property the subject of the transaction of a type mentioned in subsection (4)(a) or (b), the instruments evidencing the transaction remain liable to duty.
(6) The Commissioner may assess duty for subsection (5) even if the limitation period under section 97(1) has expired.
(7) For subsection (1A), an associate of the lessee includes the following:
(a) a person related to the lessee as mentioned in section 56C(3)(a) to (f);
(b) if the lessee is a corporation – an associated person of the lessee;
(c) if the lessee is a natural person – any of the following persons:
(i) a family member of the lessee within the meaning of section 8E(1) of the Stamp Duty Act;
(ii) a parent or remoter lineal ancestor of the lessee;
(iii) a spouse, de facto partner or sibling of a person mentioned in subparagraph (ii).
(1) Section 83A(1B)(d)
omit
section 56BC(3).
substitute
section 56BC(3); and
(2) After section 83A(1B)(d)
insert
(e) the surrender of dutiable property is taken to cause or
result in a change in the beneficial ownership of the property and, for
section 83B, the change in beneficial ownership is
taken to occur when the property is surrendered.
(3) Section 83A(1B)(a) and (b), at the end
insert
and
(4) Section 83A(2)
omit
of –
substitute
of any of the following:
(5) Section 83A(2)(c)(i)
omit
them;
substitute
them; and
(6) Section 83A(2)(e)
omit
(7) Section 83A(2)(f)
omit
property; or
substitute
property;
Section 87(6)
omit
Section 88(3)
omit
Section 89(3)
omit
Section 91
repeal
Section 97(5)
omit
all the words from "shall" to "section."
substitute
must amend the assessment of duty if the period mentioned in subsection (1) has not expired.
(1) Section 108(1)
omit
(1) An
substitute
An
(2) Section 108(2)
omit
After section 141
insert
142. Application of Act to conveyance of marketable securities executed before 1 July 2006
Despite the amendments effected by Part 4 of the amendment Act, the former Act continues to apply in relation to a conveyance of marketable securities first executed, or taken to have occurred, before 1 July 2006.
(1) If, on or after 1 July 2006, a court finds a person guilty of an offence against section 10, 87, 88 or 89, the court must not order the person to pay an amount to the Commissioner even if the person was charged with the offence, or the prosecution for the offence was instituted, before 1 July 2006.
(2) Section 108 applies in relation to an additional amount payable by way of penalty even if:
(a) the assessment of duty in respect of which the amount is recoverable was issued before 1 July 2006; or
(b) a prosecution for an offence against this Act is instituted in respect of the same subject matter for which the amount is payable.
This Division amends the Stamp Duty Act.
Schedule 2, after item 37(m)
insert
(n) a motor vehicle certificate of registration issued to a person solely to correct an error on another motor vehicle certificate of registration on which stamp duty has been paid.
PART 8 – AMENDMENTS ABOUT ABOLITION OF ADHESIVE STAMPS
Division 1 – Taxation (Administration) Act
This Division amends the Taxation (Administration) Act.
(1) Section 4(1), definition of "cancel"
omit
(2) Section 4(1)
insert (in alphabetical order)
"cancellation", of an adhesive stamp, means the cancellation of the stamp, effected immediately after it is affixed to an instrument:
(a) by writing in ink on or across the stamp the name or initials, or by impressing on or across the stamp the seal, of a party by or for whom the instrument was executed; and
(b) by writing in ink on or across the stamp the date of cancellation;
(3) Section 4(1), definition of "adhesive stamp"
omit
made in pursuance of section 8(1)
substitute
required or permitted to be used under this Act as in force
before
1 July 2006
(4) Section 4(3)(a)
omit
Act to
substitute
Act, as in force before 1 July 2006, to
(5) Section 4(3)(a)
omit
in accordance with this Act
Section 8(1)
omit, substitute
(1) The Commissioner must direct:
(a) the making of dies or other devices for making impressed stamps to be used under this Act; and
(b) the use of the devices under this Act.
Section 9(1A)
omit, substitute
(1A) Unless there is an express provision to the contrary in this or any other Act, a person who is liable for an instrument chargeable with duty must lodge the instrument with the Commissioner for assessment within 60 days after it is first executed, regardless of:
(a) whether it is first executed in the Territory or elsewhere; and
(b) when it is first received in the Territory.
Section 11(1)
omit, substitute
(1) Subject to this Act, payment of duty or tax is denoted by impressed stamp.
(1) After section 12(1)(a)
insert
(aa) remove from an adhesive stamp affixed to an instrument any writing or seal on the stamp to effect its cancellation; or
(2) Section 12(1)(a) and (b), at the end
insert
or
Section 13
repeal, substitute
13. Refund for adhesive stamps
(1) On application by a person, the Commissioner may refund the value of and destroy adhesive stamps if satisfied the stamps:
(a) are spoilt or unused; or
(b) have been affixed to an instrument in error.
(2) The application must be:
(a) made before 1 July 2007; and
(b) in the approved form; and
(c) accompanied by the adhesive stamps or instrument the subject of the application.
(3) The Commissioner must not refund the value of adhesive stamps the subject of an application made on or after 1 July 2007.
(4) For this section, the value of adhesive stamps is the amount of duty denoted by the stamps.
Section 14
repeal
This Division amends the Stamp Duty Act.
Section 8(2)
omit, substitute
(2) If payment of an amount is waived, the instrument on which the amount would otherwise have been payable:
(a) must be marked as duly stamped; and
(b) is taken to be duly stamped.
PART 9 – AMENDMENTS ABOUT OBJECTIONS, APPEALS AND OTHER PROCEEDINGS
Division 1 – First Home Owner Grant Act
This Division amends the First Home Owner Grant Act.
(1) Section 24(3)
omit
30
substitute
60
(2) Section 24(4)
omit
30-day
substitute
60-day
Sections 26 and 27
repeal, substitute
(1) If the objector is dissatisfied with the Commissioner's decision on the objection, the objector may appeal against the decision.
(2) The appeal must be to the Tribunal, within the meaning of
section 100 of the Taxation (Administration)
Act, under Part V, Division 3 of that Act.
(3) The appeal is an appeal de novo.
Note for section 26
Section 105B(3) of the Taxation (Administration) Act requires the appeal to be commenced within 60 days after the date of the notice of the decision on the objection.
After section 50
insert
PART 5 – TRANSITIONAL MATTERS FOR TREASURY LEGISLATION AND CONSEQUENTIAL AMENDMENT ACT 2006
51. Decisions dated earlier than 1 July 2006 – objections and appeals
Despite the amendments effected by the Treasury Legislation and Consequential Amendment Act 2006, Part 2, Division 6 as in force immediately before 1 July 2006 continues to apply in relation to the following:
(a) an objection under section 24 to a decision notified under
section 23 if the date of the notice of the decision
is earlier than
1 July 2006;
(b) an appeal under section 26 against a decision on the objection notified under section 25 if the date of the notice of the decision is earlier than 1 July 2006.
Division 2 – Taxation (Administration) Act
This Division amends the Taxation (Administration) Act.
(1) Section 100, definition of "decision maker"
omit
(2) Section 100
insert (in alphabetical order)
"decision" means a taxation decision or first home owner grant decision;
"decision maker" means:
(a) for a taxation decision:
(i) if the decision is made under this Act or the PTA – the Commissioner; or
(ii) if the decision is made under the MRA – the Secretary; or
(b) for a first home owner grant decision – the Commissioner;
"first home owner grant decision" means a decision made and notified under section 25 of the First Home Owner Grant Act;
"objector" means a person who appeals to the Tribunal against a first home owner grant decision;
After section 105B(2)
insert
(3) An objector may commence an appeal to the Tribunal under
section 26 of the First Home Owner Grant Act by
lodging a notice of appeal with the Registrar within 60 days after the date of
the notice of the first home owner grant decision.
Section 105C(2)
omit
taxpayer
substitute
appellant
Section 105D
omit
taxpayer
substitute
appellant
Section 105E(1)
omit
taxpayer
substitute
appellant
Section 105G(1)
omit
taxpayer
insert
appellant
After section 105H(2)
insert
(3) If the appellant is an objector, Division 4 applies to the appeal as if a reference in Division 4 to the taxpayer were a reference to the objector.
(1) Section 105S(1)(c)
omit
under a discretionary trust to which Part III, Division 8AAA applies
substitute
to the existing beneficiaries under a discretionary trust
(2) Section 105S(1)(d)
omit
to which Part III, Division 8AAA applies
substitute
mentioned in paragraph (cd) of the definition of "acquire" in
section 56C(1)
After section 105T(2)
insert
(3) The Tribunal also has jurisdiction to determine appeals under section 26 of the First Home Owner Grant Act.
After section 111
insert
PART VII – PROCEEDINGS AND PROSECUTIONS
(1) Section 112(1)
omit
proceedings for the recovery of duty or tax –
substitute
a proceeding:
(2) Section 112(1)(a)
omit, substitute
(a) the production of an instrument under the hand of the Commissioner purporting to be a copy or record of a notice of assessment:
(i) is conclusive evidence of the due making of the assessment; and
(ii) except in a proceeding under Part V, is conclusive evidence that the amount and particulars of the assessment are correct; and
Part VII, heading (as in force immediately before the commencement of section 104)
repeal
Division 3 – Taxation and Royalty Appeals Tribunal Rules
This Division amends the Taxation and Royalty Appeals Tribunal Rules.
Rule 2, definition of "appellant"
omit
taxpayer
substitute
taxpayer or objector
(1) Form 1, heading
omit, substitute
NOTICE OF APPEAL
SECTION 105B OF TAXATION (ADMINISTRATION) ACT
(2) Form 1
omit
TAXPAYER]
substitute
TAXPAYER OR OBJECTOR]
PART 10 – AMENDMENT OF PAY-ROLL TAX ACT
This Part amends the Pay-roll Tax Act.
(1) Section 3(1), definition of "wages", after paragraph (b)
insert
(baa) a payment by way of remuneration to a director or member of the governing body of a company made by a person acting for or in concert or under an arrangement or understanding, whether formal or informal and whether expressed or implied, with the company; and
(2) Section 3(1), definition of "wages", paragraphs (a) and (b) and (ba) to (d), at the end
insert
and
(3) After section 3(2)
insert
(2A) For this Act, a payment by way of remuneration mentioned in paragraph (baa) of the definition of "wages" in subsection (1) is taken to be made by the company.
Section 8(1), definition of "prescribed amount", paragraphs (a) and (b)
omit
$83 333.33
substitute
$104 166.66
Section 10A(1), definition of "prescribed amount"
omit
1 000 000C
substitute
1 250 000C
Section 11(1), definition of "prescribed amount"
omit
1 000 000C
substitute
1 250 000C
Section 12(1) and (1B)
omit
$19 230
substitute
$24 030
Section 17K(2), definition of "prescribed amount"
omit
1 000 000C
substitute
1 250 000C
Section 17L(2), definition of "prescribed amount"
omit
1 000 000C
substitute
1 250 000C
Section 33(1)
omit, substitute
(1) The production of an instrument under the hand of the Commissioner purporting to be a copy or record of a notice of a decision, determination or assessment:
(a) is conclusive evidence of the due making of the decision, determination or assessment; and
(b) except in a proceeding under Part V of the Taxation (Administration) Act, is conclusive evidence that the amount and particulars of the decision, determination or assessment are correct.
After section 33, in Part V
insert
The validity of a decision, determination or assessment is not affected merely because a provision of this Act has not been complied with.
PART 11 – AMENDMENT OF MINERAL ROYALTY ACT
This Part amends the Mineral Royalty Act.
(1) Section 4, definition of "Secretary"
omit
(2) Section 4
insert (in alphabetical order)
"Secretary" means the person holding or occupying the office of Secretary mentioned in section 49AA(1).
Before section 49A, in Part VI
insert
(1) The Minister may in writing appoint a public sector employee to the office of Secretary.
(2) The appointment may be of:
(a) a person by name; or
(b) a person by reference to the office, position or designation held or occupied by the person; or
(c) a person from time to time holding, acting in or performing the duties of a named office, designation or position.
(3) The Secretary has the functions given to the Secretary under this or any other Act.
(4) The Secretary may do all things necessary or convenient to be done for or in relation to the performance of the Secretary's functions.
After section 52
insert
PART VII – TRANSITIONAL MATTERS FOR TREASURY LEGISLATION AND CONSEQUENTIAL AMENDMENT ACT 2006
The Chief Executive Officer continues as the Secretary on the commencement of the Treasury Legislation and Consequential Amendment Act 2006 until the Minister appoints a person to the office of Secretary under section 49AA.
____________________________
Section 27
FURTHER AMENDMENTS OF TAXATION (ADMINISTRATION) ACT FOR PART 4, DIVISION 1
|
Provision
|
Amendment
|
|
|
|
omit
|
substitute
|
|
Section 4B(2)(c)
|
or marketable securities
|
|
|
Section 17(5B)
|
or a marketable security
|
|
|
Section 17(5B)(b)
|
or the marketable security
|
|
|
Section 23(1) and (2)(b)
|
20 or 22
(all references) |
19 or 20
|
|
Section 23(4)(a)
|
section 23(1)(b)
|
subsection (1)(b)
|
|
Section 23(4)(b)(ii)
|
1 year
|
12 months
|
|
Sections 25(1) and 26(1) and (3)(a) and (b)
|
19, 20 or 22
|
19 or 20
|
|
Section 56A(1)(a)
and (b), (3) and (4) |
or marketable securities
|
|
|
Section 56BA
|
or marketable securities
(all references) or securities
(all references) |
|
|
Sections 56BAB(1)(a) and 56BAC(1)(c)
|
or marketable securities
|
|
|
Part III, Division 8AB heading
|
or marketable securities
|
|
|
Section 56BB
definition of "option property"
|
or marketable securities
|
|
|
Sections 56BC(1)(a)
and (b) and (4)(b) and 56BD(2) |
or marketable securities
|
|
|
Section 56V
|
or marketable securities
(all references) or securities were
|
was |
|
Section 56W(1)
|
or marketable securities
|
|
|
Section 56W(2)(a)
|
or marketable securities that vest
or are taken to be the property or securities that is or
are
|
taken to be the property that is |
|
Section 56W(2)(b)
and (c) |
or marketable securities vest
|
|
|
Section 97A(1) and (4)(b)
|
or marketable securities
|
|
____________________________
__________________
ALTERATION TO SECTION HEADING
On the day on which the Taxation (Administration) Act
is amended by Part 4, Division 1 of this Act, in addition to any alteration to
section headings indicated in the text of this Act, the heading to section 23 of
the Taxation (Administration) Act is altered by omitting "20 or
22" and substituting "19 or 20".
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