State Taxation and Other Acts Amendment Act 2012

State Taxation and Other Acts Amendment Act 2012

No. 76 of 2012

table of provisions

SectionPage

Part 1—Preliminary

1Purpose

2Commencement

Part 2—Land Tax Act 2005

3Definitions—Section 3

4Definitions—Section 52

5Principal place of residence exemption

6Deferral of tax on certain residential land for 6 months

7New section 55A inserted

55ADeferral of tax for residential land to be used during taxyear

8Absence from principal place of residence

9Exemption continues if land becomes unfit for occupation

10Purchase of new principal residence

11Sale of old principal residence

12Unoccupied land subsequently used as principal residence

13Partial exemption if land used for business activities

14New section 62A inserted

62APartial exemption if separate residence is leased for residential purposes

15Section 63 substituted

63Partial exemption or refund for trustees

16Recovery from lessee, mortgagee or occupier

17Land held on trust

18Transitional provision

14State Taxation and Other Acts Amendment
Act 2012

Part 3—Road Safety Act 1986

19Definitions

20Effecting registration, renewal or transfer

Part 4—Taxation Administration Act 1997

21Permitted disclosures to particular persons

22Objections concerning the value of property

23Suspension of determination

24Transitional provision

Part 5—Trustee Companies Act 1984

25New Division headings inserted in Part V

26New section 26AA inserted

26AADefinitions

27Transfer determinations

28Consequential amendment of State Trustees (State Owned Company) Act 1994

Part 6—Repeal

29Repeal of amending Act

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Endnotes

SectionPage

Victoria

SectionPage

State Taxation and Other Acts Amendment Act 2012[†]

No. 76 of 2012

[Assented to 4 December 2012]

State Taxation and Other Acts Amendment Act 2012
No. 76 of 2012

The Parliament of Victoriaenacts:

Part 6—Repeal

State Taxation and Other Acts Amendment Act 2012
No. 76 of 2012

Part 1—Preliminary

1Purpose

The purpose of this Act is—

(a)to amend the Land Tax Act 2005—

(i) tomodify the requirements for the principal place of residence exemption; and

(ii)to restrict the amount of unpaid tax the Commissioner can recover from a lessee or occupier of land; and

(iii)to make other minor amendments in relation to trusts;

(b)to amend the Road Safety Act 1986 to set out the base registration fee for vehicle registration in that Act;

(i) to permit the disclosure of taxation information to the Registrar of Titles; and

(ii)to give the Commissioner a discretion to refer a matter for valuation if an objection relates to the valuation of property; and

(iii)to require an objector to pay the cost of a valuation where the objector has not provided information about the value of property to the Commissioner; and

s. 1

(iv) to change the time from which the Commissioner may suspend the determination of an objection;

(d)to amend the Trustee Companies Act 1984to provide for the transfer of estate assets and liabilities on all compulsory and voluntary transfer determinations made under the Corporations Act in respect of trustee companies registered in Victoria and to make a consequential amendment to the State Trustees (State Owned Company) Act 1994.

2Commencement

s. 2

(1)This Act (except Part 3) comes into operation on the day after the day on which it receives the Royal Assent.

(2)Subject to subsection (3), Part 3 comes into operation on a day to be proclaimed.

(3)If Part 3 does not come into operation before 30March 2013, it comes into operation on that day.

______

Part 2—Land Tax Act 2005

See:
Act No.
88/2005.
Reprint No. 4
as at
13 October 2011
and amending
Act Nos
49/2010, 35/2011 and 69/2011.
LawToday:
www.
legislation.
vic.gov.au

3Definitions—Section 3

s. 3

In section 3(1) of the Land Tax Act 2005, in the definition of discretionary trustomit ", a fixed trust or a trust to which a unit trust scheme relates".

4Definitions—Section 52

In section 52(1) of the Land Tax Act 2005 insert the following definitions—

"separate residence means a building affixed to land that is capable of separate occupation as a residence;

vested beneficiary, in relation to land held on trust, means a beneficiary of the trust who—

(a)isa natural person; and

(b)has a vested beneficial interest in possession in the land.".

5Principal place of residence exemption

(1)In section 54(1)(b) of the Land Tax Act 2005, for "natural person who is a beneficiary of the trust" substitute "vested beneficiary in relation to the land".

(2)In section 54(1A)(b)(i) and (ii) of the Land Tax Act 2005, for "Part" substitute "Division".

(3)In section 54(2) of the Land Tax Act 2005, for "beneficiary", substitute "vested beneficiary".

(4)In section 54(3) of the Land Tax Act 2005—

(a)in paragraph (c)(ii), for "that year." substitute "that year; and";

(b)after paragraph (c) insert—

"(d) does not contain a separate residence.".

6Deferral of tax on certain residential land for 6months

s. 6

In section 55(1)(b) of the Land Tax Act 2005, for "beneficiary" substitute "vested beneficiary in relation to the land".

7New section 55A inserted

After section 55 of the Land Tax Act 2005 insert—

"55A Deferral of taxfor residential landto be used during tax year

(1)The Commissioner may determine that land tax in respect of land for a year is not payable until the expiry of a 6 month periodthat begins and ends in that year if—

(a)a person becomes the owner of the land on or after 1July in the precedingyear; and

(b)as at 31December in thepreceding year, the person does not use or occupythe land as his or her principal place of residence; and

(c)the Commissioner is satisfied that the person intends to continuously use and occupy the land as his or her principal place of residence for the 6 month period.

(2)The Commissioner may determine that land tax in respect of land for a year is not payable until the expiry of a 6 month period that begins and ends in that year if—

(a)a trustee becomes the owner of the land on or after 1 July in the preceding year; and

(b)as at 31 December in the preceding year, there is no vested beneficiary in relation to that land using and occupying it as his or her principal place of residence; and

(c)the Commissioner is satisfied that a vested beneficiary in relation to that land intends to continuously use and occupy it as his or her principal place of residence for the 6 month period.

(3) If land referred to in subsection (1) or (2) that would have been exempt land in respect of a year but for section 54(2) has been continuously used and occupied as the person's principal place of residence for the period of 6 months, the land becomes exempt land in respect of that year at the end of that period.".

8Absence from principal place of residence

s. 8

(1)In the heading to section 56 of the Land Tax Act 2005, for "Temporary absence"substitute"Absence".

(2) For section 56(1)(c)and (d) of the Land Tax Act 2005substitute—

"(c) that, in respect of the period of absence, no other land is exempt land under this Division or under a law of another jurisdiction (whether in or outside Australia) as the principal place of residence of the owner or, in the case of a trustee, as the principal place of residence of a vested beneficiary in relation to the land.".

(3) After section 56(1) of the Land Tax Act 2005 insert—

"(1A) For the purposes of this Division, land is taken to be used and occupied as the principal place of residence of a person despite the person's absence from the land if—

(a)the person has lost the ability to live independently; and

(b) the person resides—

(i) at a hospital as a patient of the hospital; or

s. 8

(ii) at a residential care facility or supported residential service within the meaning of section76(4), or a residential service within the meaning of the Disability Act 2006,and receives residential or respite care at the facility or service; or

(iii) with another personwho provides personal support to the person on a daily basis.".

(4) In section 56(2) of the Land Tax Act 2005, after "subsection (1)" insert "or (1A)".

(5) For section 56(3) of the Land Tax Act 2005 substitute—

"(3)Land will not be taken to be used and occupied as the principal place of residence of a person under this section unless the conditions set out in subsections (4) and (5) are both satisfied.

(4)The condition in this subsection is that the land—

(a) was exempt land under section 54 immediately before the person's absence; or

(b) was used and occupied—

(i) in the case of an owner—by the owner as his or her principal place of residencefor a period of at least 6consecutive months immediately before the owner's absence; or

(ii)in the case of a trustee—by a vested beneficiary in relation to the land as his or her principal place of residencefor a period of at least 6 consecutive months immediately before the vested beneficiary's absence.

s. 8

(5) The condition in this subsection is that the owner or trustee has notrented out the land for a period which is 6 months or more, or for periods which total 6 months or more, in the year preceding the tax year.

(6) The maximum period for which land can be taken to be used and occupied as the principal place of residence of a person despite the person's absence from the land under this section is 6 years from the date of the person's absence.

Note

If a person has been absent for more than 6 years and land ceases to be taken to be used and occupied as the principal place of residence of the person, the land will no longer be exempt land under this Division unless another exemption applies.

(7) In this section—

personal supportmeans the provision of one or more of the following—

(a)assistance with personal hygiene, toileting or dressing;

(b)assistance to achieve and maintain mobility;

(c)support to seek out and maintain contact with health professionals, social networks, family, friends and the community;

(d)emotional wellbeing support;

(e)assistance with or supervision in administering medication;

(f)assistance with eating and maintaining adequate nutrition.".

9Exemption continues if land becomes unfit for occupation

s. 9

In section 58(4) of the Land Tax Act 2005, for "beneficiary" substitute "vested beneficiary in relation to the land".

10Purchase of new principal residence

(1)For section 59(1) and (2) of the Land Tax Act 2005 substitute—

"(1)Land is exempt land in respect of a year if—

(a)a person becomes the owner of the land in the preceding year for use and occupation as his or her principal place of residence; and

(b)as at 31 December in the preceding year, the person is the owner of other land that he or she uses and occupies as his or her principal place of residence.

Note

In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(a).

(2)Land is exempt land in respect of a year if—

(a)a trustee becomes the owner of the land in the preceding year for use and occupation of a vested beneficiary in relation to the land as his or her principal place of residence; and

s. 10

(b)as at 31 December in the preceding year, the trustee is the owner of other land that the vested beneficiary uses and occupies as his or her principal place of residence.

Note

In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(b).".

(2) In section 59(3) of the Land Tax Act 2005, for "An exemption under subsection (1) or (2) is revoked if the owner or beneficiary" substitute "The Commissioner may revoke an exemption under subsection (1) or (2) if the owner or vested beneficiary in relation to the land".

(3) Forsection 59(4) of the Land Tax Act 2005substitute—

"(4)Subsection (1) does not apply to land in respect of a year if the owner derivedany income from the land at any time when it was not occupied as the principal place of residence of the owner.

(5)Subsection (2) does not apply to land in respect of a year if the trustee derivedany income from the land at any time when it was not occupied as the principal place of residence of a vested beneficiary in relation to the land.".

11Sale of old principal residence

s. 11

(1)For section 60(1) and (2) of the Land Tax Act 2005 substitute—

"(1)Land owned by a person is exempt land in respect of a year if—

(a)either—

(i) theland was exempt land under section 54(1) for the preceding year; or

(ii)the person used and occupied the land as his or her principal place of residence for a period of at least 6months during the preceding year; and

(b) as at 31 December in the preceding year, the person was the owner of other land that he or she usedand occupied as his or her principal place of residence.

Note

In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(a).

(2)Land owned by a trustee is exempt land in respect of a year if—

(a) either—

(i) the land was exempt land under section 54(1) for the preceding year; or

(ii)a vested beneficiary in relation to the land used and occupied it as his or her principal place of residence for a period of at least 6months during the preceding year; and

(b) as at 31 December in the preceding year, the trustee was the owner of other land that a vested beneficiary referred to in paragraph (a) used and occupied as his or her principal place of residence.

Note

In this situation, the land referred to in paragraph (b) will be exempt land in the circumstances set out in section 54(1)(b).".

s. 11

(2) In section 60(3) of the Land Tax Act 2005, for "An exemption under subsection (1) or (2) is revoked if the owner or trustee" substitute "TheCommissioner may revoke an exemption under subsection (1) or (2) if the owner or trustee".

(3) For section 60(4) of the Land Tax Act 2005substitute—

"(4)Subsection (1) does not apply to land in respect of a year if the owner derived income from the land at any time when it was not occupied as the principal place of residence of the owner.

(5)Subsection (2) does not apply to land in respect of a year if the trustee derived any income from the land at any time when it was not occupied as the principal place of residence of a vested beneficiary in relation to the land.".

12Unoccupied land subsequently used as principal residence

s. 12

(1)For section 61(1)(a) of the Land Tax Act 2005 substitute—

"(a)the owner was unable to occupy that land as his or her principal place of residence as at 31 December in the preceding year because a residence was being constructed or renovated on it; and

(ab) once construction or renovation of that residence has been completed, the owner continuously uses and occupies the land as his or her principal place of residence for at least 6 months commencing in that year; and".

(2)For section 61(2) of the Land Tax Act 2005 substitute—

"(2)A trustee who was assessed for and paid land tax in respect of a year in respect of land that is not occupied as the principal place of residence of a vested beneficiary in relation to the land is entitled to a refund of that land tax if—

(a)the vested beneficiary was unable to occupy the land as his or her principal place of residence as at 31 December the preceding year because a residence was being constructed or renovated on it; and

(b)once construction or renovation of that residence has been completed, the vested beneficiary continuously uses and occupies the land as his or her principal place of residence for at least 6 months commencing in that year; and

(c)an application for a refund is made before the end of the next following year.".

(3)The note at the foot of section 61(4) of the Land Tax Act 2005 is repealed.

(4)In section 61(5) of the Land Tax Act 2005, for"beneficiary under the trust" substitute "vested beneficiary in relation to land".

13Partial exemption if land used for business activities

s. 13

(1)In section 62(1) of the Land Tax Act 2005—

(a)for "this Part" substitute "this Division";

(b)after "residential purposes" insert "by the owner, a vested beneficiary in relation to the land or a natural person who has a right to reside on the land (as the case requires)".

(2)For section 62(2)(e) of the Land Tax Act 2005 substitute—

"(e)any other matters the Commissioner considers relevant.".

14New section 62A inserted

After section 62 of the Land Tax Act 2005 insert—

"62A Partial exemption ifseparate residence is leased for residential purposes

If land that would be exempt under this Division contains a separate residence that is leased for residential purposes—

(a)land tax is assessable on the part of the land that is leased for residential purposes; and

(b)section 22 applies, if necessary, for that purpose.".

15Section 63 substituted

s. 15

For section 63 of the Land Tax Act 2005 substitute—

"63 Partial exemption or refund for trustees

(1)This section applies if—

(a)a trustee would be entitled to an exemption from or refund of land tax under this Division in respect of land because a vested beneficiary in relation to the land has used and occupied it as his or her principal place of residence; and

(b)there are other vested beneficiaries in relation to the land who have not used and occupied it as their principal place of residence.

(2)Despite anything to the contrary in this Division, the amount of the exemption or refund is determined as ifthe value of the land were the proportion of the value of the land that is equal to the proportion that the interest in the land held by the vested beneficiary in relation to the land referred to in subsection (1)(a) bears to the total interests of all vested beneficiaries in relation to that land.

(3)Nothing in this section applies in the case of a person entitled to a life estate in possession.".

16Recovery from lessee, mortgagee or occupier

s. 16

(1)After section 98(1) of the Land Tax Act 2005 insert—

"(1A) The Commissioner cannot require a lessee or occupier—

(a)to pay an amount of land tax under this section that is greater than the amount of rent the lessee or occupier is required to pay the taxpayer; or

(b)to pay an amount of land tax under this section before the day on which the lessee or occupier is required to pay rent to the taxpayer.

(1B) Subsection (1A) does not apply to a lessee or occupier that is a related corporation or relative of the taxpayer.".

(2)After section 98(6) of the Land Tax Act 2005 insert—

"(6A) If a lessee or occupier pays an amount of tax under this section—

(a)the amount is deemed to have been paid to the Commissioner by the taxpayer; and

(b)the lessee or occupier is deemed to have paid an equal amount of rent to the taxpayer under the lease or agreement or under any applicable tenancy law.".

17Land held on trust

In sections46B(4)(a) and 46D(1)(a) of the Land Tax Act 2005, after "deemed" insert ", for the purposes of this Act other than Division 1 of Part4,".

18Transitional provision

s. 18

After clause 13 of Schedule 3 to the Land Tax Act 2005insert—

"14 State Taxation and Other Acts AmendmentAct 2012

(1)Section 61, as in force immediately before the commencement day, continues to apply in relation to land tax paid in respect of the 2012 tax year.

(2)Section 98, as amended by section 16 of the State Taxation and Other Acts Amendment Act 2012, applies on and after the commencement day irrespective of whether the lease or other arrangement under which the lessee or occupier occupies the land was entered into or made before, on or after that day.

(3)In this clause—

commencement day means the day on which Part 2 of the State Taxation and Other Acts Amendment Act 2012comes into operation.".