State Taxation Acts Further Amendment Act2017
No. 67 of 2017
table of provisions
SectionPage
SectionPage
Part 1—Preliminary
1Purposes
2Commencement
Part2—Amendment of Congestion Levy Act2005
3Specified parks and the Melbourne Zoo
4Section 22 substituted
Part3—Amendment of Duties Act2000
5Rate for additional duty chargeable for foreign purchasers—residential property
6Exemption or concession for certain first home buyers on PPR transfers
Part4—Amendment of Fire Services Property Levy Act2012
7Repeal of section 79
8Service on a person by the Commissioner
9Statute law revision
Part5—Amendment of Land Tax Act2005
Division 1—Absentee owner surcharge
10Definitions
11Exemptions from holding absentee controlling interests
12New sections 3BA and 3BB inserted
13Delegation of exemption power
14New sections3D and 3E inserted
15New section46IAA inserted
16Land tax surcharge for absentee trusts
17Land tax for absentee fixed trust if beneficial interests notified to Commissioner
18Land tax for absentee unit trust scheme if unitholdings notified to Commissioner
19Land tax for beneficiary/trustees
20Land tax for PPR land if nominated PPR beneficiary
21New Schedule1A inserted
Division 2—Exemptions and concessions
22Public statutory authorities
23Municipal and public land
24Armed services personnel
25Friendly societies
Part6—Amendment of Payroll Tax Act2007
26Amendment of Schedule 2
Part7—Amendment of Taxation Administration Act1997
27Permitted disclosures to particular persons or for particular purposes
28Repeal of section 92A
29Repeal of section 124
30Service of documents by Commissioner
31When is service effective?
Part8—Amendment of Unclaimed Money Act2008
32Repeal of section 100
33When is service effective?
Part9—Amendment of Valuation of Land Act1960 and other Acts
Division 1—Amendment of Valuation of Land Act1960
34Definitions
35Valuer-general and other employees
36Functions of valuer-general
37Valuation Best Practice Specifications Guidelines
38Valuation of transmission easements
39Participation in general valuations
40Requirement to confer with valuer-general
41Requirement to report on general valuation caused by council
42Return of amended general valuation caused by council
43Assessment by valuer-general of general valuation caused by council
44Requirements as to general valuation caused by valuer-general
45Order where general valuation caused by council reported not generally true and correct
46Declaration where general valuation certified true and correct
47Restriction on payment of valuers for general valuations
48Valuer-general to maintain valuation record
49Fees for copy of valuation
50Section9 substituted
51Section 10 substituted
52General valuation to be made each year
53Minister may direct a general valuation of land
54Valuations for the purposes of the Local Government Act1989
55Repeal of sections 13DD and 13DE
56Supplementary valuation
57Certification of supplementary valuation caused by a council
58Section 13DFB substituted
59Repeal of section 13DJ
60Application of Part
61Section 13F substituted
62Section 13G substituted
63General valuation to be made each year
64Minister may direct a general valuation of non-rateable leviable land
65Valuations for the purposes of the Fire Services Property Levy Act2012
66Supplementary valuation
67Certification of supplementary valuation caused by a collection agency
68Valuation authority to make supplementary valuation if requested by collection agency
69Repeal of section13P
70Notice of valuation
71Repeal of section 19
72Determination of objection
73Costs
74New sections 35 to 38 inserted
Division 2—Consequential amendments to otherActs
75Co-operative Housing Societies Act 1958
76Land Tax Act 2005—definition of general valuation
77Land Tax Act 2005—repeal of section 21A
78Local Government Act1989
79Water Act 1989
Part10—Amendment of Victorian Civil and Administrative Tribunal Act1998
80Amendment of Schedule 1—definition of taxing Act updated
Part11—Repeal of amending Act
81Repeal of amending Act
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Endnotes
1General information
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Victoria
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State Taxation Acts Further Amendment Act2017[†]
No. 67 of 2017
[Assented to 19 December 2017]
1
State Taxation Acts Further Amendment Act2017
No. 67 of 2017
1
State Taxation Acts Further Amendment Act2017
No. 67 of 2017
The Parliament of Victoria enacts:
1
Part11—Repeal of amending Act
State Taxation Acts Further Amendment Act2017
No. 67 of 2017
Part 1—Preliminary
1Purposes
The main purposes of this Act are—
(a)to amend the Congestion Levy Act2005 in relation to exemptions for certain parking spaces; and
(b)to amend the Duties Act2000 in relation to—
(i)the imposition of foreign purchaser additional duty on a dutiable transaction to which a concession applies; and
(ii)the calculation of the first home buyer concession; and
(c)to amend the Fire Services Property Levy Act2012 in relation to the service of documents; and
(d)to amend the Land Tax Act2005—
(i)in relation to the absentee owner surcharge; and
(ii)to make further provision for the circumstances in which certain land is exempt; and
(e)to amend the Payroll Tax Act2007 in relation to the declaration by the Treasurer of organisations to be approved group training organisations; and
(f) to amend the Taxation Administration Act1997—
(i)in relation to permitted disclosures of information; and
(ii)to make further provision for the service of documents; and
(g) to amend the Unclaimed Money Act2008 in relation to the service of documents; and
(h) to amend the Valuation of Land Act1960—
(i)to provide for general valuations to be made each year; and
(ii)to provide for the valuer-general to conduct all valuations under that Act, unless a council nominates to cause a general valuation to be made; and
(i) to amend the Victorian Civil and Administrative Tribunal Act1998 in relation to the taxing Acts to which that Act applies; and
(j) to amend certain other Acts as a consequence of the amendments made to the Valuation of Land Act 1960 by this Act.
2Commencement
(1)This Act (except Parts 2 to 10) comes into operation on the day on which it receives the Royal Assent.
(2)Section5is taken to have come into operation on 1July2015.
(3) Part6comesinto operation on 1July2018.
(4) The remaining provisions of this Act come into operation on the day after the day on which this Act receives the Royal Assent.
Part2—Amendment of Congestion Levy Act2005
3Specified parks and the Melbourne Zoo
For section 20A(3) of the Congestion Levy Act2005 substitute—
"(3)A parking space is an exempt parking space if—
(a)it is provided on—
(i)land specified in Part1 of Schedule1 to the Zoological Parks and Gardens Act 1995; or
(ii)land within 200metres of the land specified in Part1 of Schedule1 to the Zoological Parks and Gardens Act 1995; or
(iii)other land in the levy area that is owned or managed by the Board within meaning of the Zoological Parks and Gardens Act 1995; and
(b)it is set aside for—
(i)visitors to the zoological park existing on the land referred to in paragraph (a)(i); and
(ii)staff of the Board within meaning of the Zoological Parks and Gardens Act 1995.
(4)A parking space is an exempt parking space if—
(a)it is provided on land described in Vol.10894 Fol.151; and
(b)Abbotsford Convent Foundation (A.C.N. 098 462 474) is the registered proprietor of the land within the meaning of the Transfer of Land Act1958.".
4Section 22 substituted
For section 22 of the Congestion Levy Act 2005substitute—
"22 Parking for employees of 24/7 enterprises working shifts
(1)A parking space is an exempt parking space if it is used only for the parking of motor vehicles by employees of a 24/7 enterprise who are regularly rostered on to work shifts at the 24/7 enterprise while the employees work such shifts.
(2) In this section—
24/7 enterprise means an enterprise in whichshifts are continuously rostered 24 hours a day for 7 days a week.".
Part3—Amendment of Duties Act2000
5Rate for additional duty chargeable for foreign purchasers—residential property
In section 28A(2) of the Duties Act 2000, for "chargeable under section28" substitute "otherwise chargeable under this Chapter".
6Exemption or concession for certain first home buyers on PPR transfers
In section57JA(3) of the Duties Act 2000, for "The concession" substitute "For the purposes of subsection(2), the concessional amount of duty payable".
Part4—Amendment of Fire Services Property Levy Act2012
7Repeal of section 79
Section79 of the Fire Services Property Levy Act2012 is repealed.
8Service on a person by the Commissioner
(1)In section 81(1)(b) of the Fire Services Property Levy Act2012, for "2business" substitute "7business".
(2) Section81(2) of the Fire Services Property Levy Act2012 is repealed.
9Statute law revision
The heading to Part6 of the Fire Services Property Levy Act2012 is repealed.
Part5—Amendment of Land Tax Act2005
Division 1—Absentee owner surcharge
10Definitions
In section3(1) of the Land Tax Act2005 insert the following definitions—
"chain of trusts has the meaning given in section3D;
ultimate trust, in a chain of trusts, has the meaning given in section3E;".
11Exemptions from holding absentee controlling interests
Section 3B(3), (4), (5) and (6) of the Land Tax Act2005 are repealed.
12New sections 3BA and 3BB inserted
After section3B of the Land Tax Act2005 insert—
"3BA Exemption—land held on trust under absentee trusts
(1)For the purposes of Part3, if an absentee beneficiary holds an exemption under subsection(2) in relation to an absentee trust that is—
(a)a fixed trust, the absentee beneficiary is taken to hold their beneficial interest in the trust as a beneficiary who is not an absentee beneficiary; or
(b)a unit trust scheme, the absentee beneficiary is taken to be a unitholder in the scheme who is not an absentee beneficiary; or
(c)a discretionary trust, the absentee beneficiary is taken to be a specified beneficiary of the trust who is not an absentee beneficiary.
(2) The Treasurer, for the purposes of subsection(1), may, in writing, exempt an absentee beneficiary in relation to an absentee trust if the Treasurer is satisfied that, having regard to any one or more of the following matters, the absentee beneficiary should not be treated as an absentee beneficiary in relation to the trust—
(a)the nature and degree of the absentee beneficiary's interest in the trust;
(b)the practical influence the absentee beneficiary exerts or any rights the absentee beneficiary enforces to determine or influence, directly or indirectly, the outcome of decisions about the administration and conduct of the trust;
(c)any practice or behaviour of the absentee beneficiary affecting the trustee's administration and conduct of the trust;
(d)any other relevant circumstances.
3BBAbsentee exemption requirements
(1)At least once every 6 months the Treasurer must cause to be laid before each House of Parliament, and publish on an appropriate government website, a report setting out—
(a)in respect of the exemptions (if any) granted by the Treasurer under sections3B and 3BA during the period covered by the report—
(i)the number of exemptions; and
(ii)the name of each corporation or trust in relation to which an exemption was granted; and
(iii)the value of each exemption, being the amount of land tax foregone, or likely to be foregone, by the State because of the exemption; and
(b)in respect of the exemptions (if any) granted by the Commissioner or a member of staff of the State Revenue Office during the period covered by thereport under a delegation under section 3C—
(i)the number of exemptions; and
(ii)the total value of the exemptions, being the total amount of land tax foregone, or likely to be foregone, by the State because of the exemptions.
(2) The Treasurer must issue guidelines for the exercise of the power of exemption under sections3B and 3BA.
(3)The Treasurer must cause guidelines issued under subsection(2) to be published in the Government Gazette.
(4)Guidelines issued under subsection(2) are not a legislative instrument within the meaning of the Subordinate Legislation Act 1994.".
13Delegation of exemption power
(1)In section3C(1) of the Land Tax Act2005—
(a)after paragraph (a) insert—
"(ab)the power of the Treasurer to exempt an absentee beneficiary under section3BA(2);";
(b)in paragraph(b), after "paragraph (a)" insert "or (ab)".
(2)For section3C(4) of the Land Tax Act2005 substitute—
"(4)Despite section42A(1)(a) of the Interpretation of Legislation Act1984, the Treasurer cannot exercise the power to—
(a)exempt an absentee person under section3B(2) while a delegation under subsection(1)(a) is in effect; or
(b)exempt an absentee beneficiary under section3BA(2) while a delegation under subsection(1)(ab) is in effect.".
14New sections3D and 3E inserted
After section3C of the Land Tax Act2005 insert—
"3D Meaning of chain of trusts
(1)For the purposes of this Act, a chain of trustsis 2 or more trusts where at least one of the following conditions is satisfied for each of the trusts—
(a)the trustee of the trust has a specified interest under another of the trusts;
(b)the trustee of another of the trusts has a specified interest under the trust.
(2)For the purposes of this section, a person has a specified interestunder a trust if—
(a)in the case of a trust that is a fixed trust, the person has a beneficial interest under the trust; or
(b)in the case of a trust that is a unit trust scheme, the person is a unitholder in the scheme; or
(c)in the case of a trust that is a discretionary trust, the person is a specified beneficiary of the trust.
3EMeaning of ultimate trust
(1)For the purposes of this Act, an ultimate trust is a trust—
(a)in a chain of trusts; and
(b)under which no person who has a specified interest holds that interest as a trustee of a trust for another person.
(2)For the purposes of this section, a person has a specified interestunder an ultimate trust if—
(a)in the case of a trust that is a fixed trust, the person has a beneficial interest under the trust; or
(b)in the case of a trust that is a unit trust scheme, the person is a unitholder in the scheme; or
(c)in the case of a trust that is a discretionary trust, the person is a specified beneficiary of the trust.".
15New section46IAA inserted
Before section46IA of the Land Tax Act2005 insert—
"46IAA Absentee proportion of interests in land subject to a trust in a chain of trusts
(1)The absentee proportion of interests in land subject to a trust to the total interests in the land is the proportion of all the interests in that land that—
(a)natural person absentees or absentee corporations have in that land directly or indirectly through one or more chains of trusts that they do not hold on trust for another person; or
(b)persons have in that land directly or indirectly through one or more chains of trusts as trustee of an absentee trust that is a discretionary trust.
(2)Without limiting subsection(1), in calculating the absentee proportion of interests in land subject to a trust, a unitholding in a unit trust scheme is to be treated as an interest in the land.
Examples
Schedule1A sets out examples of how the absentee proportion of interests in land subject to a trust that is in a chain of trusts is calculated.".
16Land tax surcharge for absentee trusts
(1)For section 46IA(1) of the Land Tax Act2005 substitute—
"(1) A person who is the owner of land as a trustee of an absentee trust that is a fixed trust is liable for land tax determined using the formula—
where—
Ais the amount of assessed land tax that is payable;
Bis the amount determined by applying the applicable rate set out in Part3 of Schedule1;
Cis—
(a)if the absentee trust is not in a chain of trusts or is an ultimate trust, the value of all land subject to the trust that would be taken under section46IB to be owned by an absentee beneficiary if a notice were in force under section46B in respect of the beneficial interests of that absentee beneficiary in that land; or
(b)if the absentee trust is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—
where—
Dis the absentee proportion of interests in all land subject to the trust;
Eis the taxable value of all land subject to the trust.
(1A)A person who is the owner of land as a trustee of an absentee trust that is a unit trust scheme is liable for land tax determined using the formula—
where—
Ais the amount of assessed land tax that is payable;
Bis the amount determined by applying the applicable rate set out in Part3 of Schedule1;
Cis—
(a)if the unit trust scheme is not in a chain of trusts or is an ultimate trust, the value of all land subject to the scheme that would be taken under section46IC to be owned by an absentee beneficiary if a notice were in force under section46C in respect of the unitholdings in the scheme held by that absentee beneficiary; or
(b)if the unit trust scheme is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—
where—
Dis the absentee proportion of interests in all land subject to the scheme;
Eis the taxable value of all land subject to the scheme.
(1B) A person who is the owner of land as trustee of an absentee trust that is a discretionary trust is liable for land tax determined at the applicable rate set out in Part5 of Schedule1.".
(2)In section46IA(2) of the Land Tax Act2005—
(a)in paragraph(a), for "subsection(1)(a)" substitute "subsections(1) and (1A)";
(b)for paragraph(b) substitute—
"(b)subsection(1B).".
17Land tax for absentee fixed trust if beneficial interests notified to Commissioner
(1)For section46IB(1)(b) of the Land Tax Act2005 substitute—
"(b)the trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust—
(i)if the trust is not in a chain of trusts or is an ultimate trust, at the applicable rate set out in Part4 of Schedule1, as if the land were the only land owned by the trustee; or
(ii)if the trust is in a chain of trusts and is not an ultimate trust, using the formula—
where—
Ais the amount of assessed land tax that is payable;
Bis the amount determined by applying the applicable rate set out in Part1 of Schedule1 on the whole of the land subject to the trust (as if that land were the only land owned by the trustee);
Cis the absentee proportion of interests in all land subject to the trust;
Dis the taxable value of all land subject to the trust.".
(2)In the formula in section46IB(3)(b) of the Land Tax Act2005, for the variable "C" substitute—
"Cis—
(a)if the trust is not in a chain of trusts or is an ultimate trust, the taxable value of all land owned by an absentee beneficiary; or
(b)if the trust is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—
where—
Dis the absentee proportion of interests in all land subject to the trust;
Eis the taxable value of all land subject to the trust.".
18Land tax for absentee unit trust scheme if unitholdings notified to Commissioner
(1)For section 46IC(1)(b) of the Land Tax Act2005 substitute—
"(b)the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme—
(i)if the scheme is not in a chain of trusts or is an ultimate trust, at the applicable rate set out in Part4 of Schedule1, as if the land were the only land owned by the trustee; or
(ii)if the scheme is in a chain of trusts and is not an ultimate trust, an amount determined using the formula—
where—
Ais the amount of assessed land tax that is payable;
Bis the amount determined by applying the applicable rate set out in Part1 of Schedule1 on the whole of the land subject to the scheme (as if that land were the only land owned by the trustee);
Cis the absentee proportion of interests in all land subject to the scheme;
Dis the taxable value of all land subject to the scheme.".
(2)In the formula in section46IC(3)(b) of the Land Tax Act2005, for the variable "C" substitute—
"Cis—
(a)if the unit trust scheme is not in a chainof trusts or is an ultimate trust, the taxable value of all land subject to the scheme owned by a unitholder who is an absentee beneficiary; or
(b)if the unit trust scheme is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—
where—
Dis the absentee proportion of interests in all land subject to the scheme;
Eis the taxable value of all land subject to the scheme.".
19Land tax for beneficiary/trustees
(1)For section 46ID(3)(a) of the Land Tax Act2005 substitute—
"(a)the amount determined by the formula—
where—
Ais—
(a)the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or
(b)the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme;
Bis that part of the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme determined by applying the applicable rate set out in Part1 of Schedule1 on the whole of the land subject to the first trust or first scheme;