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This is a Bill, not an Act. For current law, see the Acts databases.
State Revenue Legislation Amendment
Bill 2013
No , 2013
A Bill for
An Act to make miscellaneous amendments to certain State revenue legislation.
Clause 1 State Revenue Legislation Amendment Bill 2013
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the State Revenue Legislation Amendment Act 2013. 3
2 Commencement 4
(1) This Act commences on the date of assent to this Act, except as 5
provided by subsection (2). 6
(2) Schedule 1 commences on 1 July 2013, or the date of assent to this Act, 7
whichever is the later. 8
Page 2
State Revenue Legislation Amendment Bill 2013
Amendment of Duties Act 1997 No 123 Schedule 1
Schedule 1 Amendment of Duties Act 1997 No 123 1
[1] Section 8 Imposition of duty on certain transactions concerning dutiable 2
property 3
Insert at the end of section 8 (1) (c), before the notes: 4
, and 5
(d) a transfer of an option to purchase land in New South 6
Wales that is taken to occur under section 9B. 7
[2] Section 9B 8
Insert after section 9A: 9
9B Transfer of option occurring on nomination or other change 10
(1) A transfer of an option to purchase land in New South Wales is 11
taken to occur if, for valuable consideration: 12
(a) the option holder nominates another person to exercise the 13
option, or 14
(b) the option holder nominates another person as purchaser or 15
transferee of the land the subject of the option on or before 16
the exercise of the option, or 17
(c) the option holder agrees to a novation of the option, or 18
otherwise relinquishes his or her rights under the option, so 19
that another person obtains a right to purchase the land. 20
(2) For the purpose of charging duty under this Chapter on a transfer 21
referred to in subsection (1) (a) or (b): 22
(a) the option is taken to be transferred when the nomination 23
is made, and 24
(b) the person nominated is taken to be the transferee of the 25
option (and a reference in this Act to a transferee includes 26
a reference to such a person). 27
(3) For the purpose of charging duty under this Chapter on a transfer 28
referred to in subsection (1) (c): 29
(a) the option is taken to be transferred when the option holder 30
agrees to the novation or otherwise relinquishes his or her 31
rights under the option, and 32
(b) the person who obtains a right to exercise the option is 33
taken to be the transferee of the option (and a reference in 34
this Act to a transferee includes a reference to such a 35
person). 36
(4) This section applies regardless of when the option is exercisable. 37
Page 3
State Revenue Legislation Amendment Bill 2013
Schedule 1 Amendment of Duties Act 1997 No 123
(5) For the purposes of this section, anything done by a person under 1
a power of appointment or other authority granted by an option 2
holder is taken to have been done by the option holder. 3
(6) Subsection (1) (b) does not apply to a nomination made by an 4
option holder acting as purchaser of the land. 5
(7) In this section: 6
option holder, in relation to an option to purchase land in New 7
South Wales, means a person who has a right to purchase the land 8
under the option (whether or not that right has crystallised). 9
[3] Section 22 What is the consideration for the transfer of dutiable 10
property? 11
Insert after section 22 (3): 12
(4) The consideration for a transfer of land in New South Wales that 13
occurs on the exercise of an option to purchase the land is taken 14
to include the amount or value of the consideration provided by 15
the transferee for the option (whether for its grant, transfer, 16
exercise or otherwise). 17
Note. This section extends to an agreement for sale or transfer of 18
dutiable property. Under sections 8 and 9 such agreements are treated 19
as transfers of dutiable property. 20
[4] Section 23 What is the "unencumbered value" of dutiable property? 21
Insert after section 23 (2): 22
(2A) The unencumbered value of an interest in land arising because 23
of a mining tenement is to be determined having regard to any 24
information about the land, as if the information were an attribute 25
of the land. 26
[5] Section 54 Change in trustees 27
Omit "a special trustee or" from section 54 (3). 28
Insert instead "a special trustee, a trustee of a self managed superannuation 29
fund or a". 30
[6] Section 64D 31
Insert after section 64C: 32
64D Transfers made on exercise of option to purchase land 33
The duty chargeable in respect of a transfer of land in New South 34
Wales that occurs on the exercise of an option to purchase the 35
Page 4
State Revenue Legislation Amendment Bill 2013
Amendment of Duties Act 1997 No 123 Schedule 1
land is to be reduced by the amount of duty (if any) paid by the 1
transferee on the transfer of the option to the transferee. 2
[7] Section 68 Exemptions--break-up of marriages and other relationships 3
Omit the definitions of matrimonial property and relationship property from 4
section 68 (5). 5
Insert in alphabetical order: 6
matrimonial property means property in relation to the parties to 7
a marriage or of either of them (within the meaning of the Family 8
Law Act 1975 of the Commonwealth), including any property 9
treated as property in relation to the parties or of either of them as 10
a result of an order made under that Act. 11
relationship property: 12
(a) in relation to a de facto relationship, means property in 13
relation to the parties to the de facto relationship or of 14
either of them (within the meaning of the Family Law Act 15
1975 of the Commonwealth), including any property 16
treated as property in relation to the parties or of either of 17
them as a result of an order made under that Act, or 18
(b) in relation to a domestic relationship, means property of 19
the parties to the relationship or of either of them. 20
[8] Section 149 What is a "relevant acquisition"? 21
Omit "transactions" from section 149 (1) (a) (iii). 22
Insert instead "acquisitions". 23
[9] Section 152 Acquisition statements 24
Insert "within 3 months after the relevant acquisition is made" after "Chief 25
Commissioner" in section 152 (1). 26
[10] Section 159 Constructive ownership of land holdings and other 27
property: discretionary trusts 28
Insert ", unless the Chief Commissioner, being satisfied that the application of 29
this subsection in a particular case would be inequitable, determines 30
otherwise" after "subject of the trust" in section 159 (2). 31
[11] Section 159 (3) 32
Insert ", unless the Chief Commissioner, being satisfied that the application of 33
this subsection in a particular case would be inequitable, determines 34
otherwise" after "beneficiary of it". 35
Page 5
State Revenue Legislation Amendment Bill 2013
Schedule 1 Amendment of Duties Act 1997 No 123
[12] Section 163B Exemption--break-up of marriages and other relationships 1
Omit the definitions of matrimonial property and relationship property from 2
section 163B (8). 3
Insert in alphabetical order: 4
matrimonial property means property in relation to the parties to 5
a marriage or of either of them (within the meaning of the Family 6
Law Act 1975 of the Commonwealth), including any property 7
treated as property in relation to the parties or of either of them as 8
a result of an order made under that Act. 9
relationship property: 10
(a) in relation to a de facto relationship, means property in 11
relation to the parties to the de facto relationship or of 12
either of them (within the meaning of the Family Law Act 13
1975 of the Commonwealth), including any property 14
treated as property in relation to the parties or of either of 15
them as a result of an order made under that Act, or 16
(b) in relation to a domestic relationship, means property of 17
the parties to the relationship or of either of them. 18
[13] Section 163C 19
Insert after section 163B: 20
163C Arrangements involving multiple acquisitions 21
An acquisition of an interest in a landholder is an exempt 22
acquisition if: 23
(a) the acquisition (the subject acquisition) is part of one 24
arrangement that involves several acquisitions of the same 25
land holding or part of the same land holding by acquirers 26
that are associated persons, and 27
(b) duty under this Chapter is paid on at least one of the other 28
acquisitions that form part of the arrangement, and 29
(c) the Chief Commissioner is satisfied that the subject 30
acquisition represents an acquisition of the same land 31
holding or part of the same land holding on which duty has 32
been paid and that to charge duty on the subject acquisition 33
would result in double duty or multiple duty. 34
[14] Section 163D Concession for primary producers--continuation of land 35
rich requirement 36
Omit the section. 37
Page 6
State Revenue Legislation Amendment Bill 2013
Amendment of Duties Act 1997 No 123 Schedule 1
[15] Section 163H Discretion to grant exemption or concession 1
Omit the section. 2
[16] Schedule 1 Savings, transitional and other provisions 3
Insert after Part 39: 4
Part 40 Provisions consequent on enactment of 5
State Revenue Legislation Amendment Act 6
2013 7
107 Definition 8
In this Part: 9
amending Act means the State Revenue Legislation Amendment 10
Act 2013. 11
108 General application of amendments 12
(1) An amendment made to Chapter 2 by the amending Act applies 13
in respect of a dutiable transaction that occurs on or after the 14
commencement of the amendment. 15
(2) However, an amendment made to Chapter 2 by the amending Act 16
does not apply to a transfer of dutiable property made in 17
conformity with an agreement for sale or transfer of the dutiable 18
property that was entered into before the commencement of the 19
amendment. 20
(3) Any other amendment made to this Act by the amending Act 21
applies in relation to any liability for duty that arises on or after 22
the commencement of the amendment. 23
109 Amendments relating to options 24
(1) Section 9B, as inserted by the amending Act, extends to an option 25
granted before the commencement of that section. 26
(2) Section 22 (4), as inserted by the amending Act, extends to 27
consideration provided for an option before the commencement 28
of that subsection. 29
(3) Section 64D, as inserted by the amending Act, extends to options 30
granted or transferred before the commencement of that section. 31
Page 7
State Revenue Legislation Amendment Bill 2013
Schedule 1 Amendment of Duties Act 1997 No 123
110 Repeal of section 163D 1
Section 163D (4), as in force immediately before its repeal by the 2
amending Act, continues to apply in respect of an acquisition of 3
an interest in a primary producer made within 5 years before the 4
repeal of that subsection. 5
111 Application of amendments to landholder duty 6
(1) A landholder duty amendment does not apply to an acquisition in 7
a landholder that is made on or after the commencement of the 8
landholder duty amendment, if the acquisition is made in 9
conformity with an agreement for sale first executed before that 10
commencement. 11
(2) This Act applies in respect of such an acquisition as if the 12
landholder duty amendment had not been made. 13
(3) In this clause, a landholder duty amendment means an 14
amendment made by the amending Act to: 15
(a) Chapter 4, or 16
(b) clause 4 of the Dictionary. 17
[17] Dictionary 18
Insert in alphabetical order in clause 1: 19
mining tenement means a mining lease, mineral claim, 20
assessment lease, exploration licence or opal prospecting licence 21
under the Mining Act 1992. 22
[18] Dictionary, clause 1 23
Insert "or discretionary trust" after "public unit trust scheme" wherever 24
occurring in paragraphs (d) and (e) of the definition of related person. 25
[19] Dictionary, clause 2 (4) and (5) 26
Insert after clause 2 (3): 27
(4) A trustee of a complying superannuation fund and the trustee for 28
another complying superannuation fund are considered to be 29
associated persons under subclause (1) (d) only if: 30
(a) a member of the first fund who holds a significant interest 31
in that fund is also a member of the other fund and holds a 32
significant interest in that other fund, or 33
(b) a member of the first fund holds a significant interest in the 34
first fund and a related person to that member (who is a 35
member of the other fund) holds a significant interest in the 36
other fund. 37
Page 8
State Revenue Legislation Amendment Bill 2013
Amendment of Duties Act 1997 No 123 Schedule 1
(5) A member of a complying superannuation fund holds a 1
significant interest in the fund if the member has an interest in 2
the fund that (either alone or when aggregated with the interests 3
in the fund held by related persons who are members of the fund) 4
is an interest of more than 20%. 5
[20] Dictionary, clause 4 6
Omit the clause. Insert instead: 7
4 Interests in land 8
(1) For the purposes of this Act, a mining tenement is taken to give 9
the holder of the mining tenement an interest in the land to which 10
it relates. 11
(2) To avoid doubt, the land includes anything that, under the 12
authority of the mining tenement (whether direct or indirect), is 13
fixed to the land the subject of the mining tenement and that 14
would be a part of the land (as a fixture) if the mining tenement 15
were an estate in fee simple in the land. 16
(3) For the purposes of this Act, the following do not give rise to an 17
interest in land: 18
(a) a carbon sequestration right within the meaning of 19
Division 4 of Part 6 of the Conveyancing Act 1919, 20
(b) a petroleum title within the meaning of the Petroleum 21
(Onshore) Act 1991, 22
(c) a licence, permit, lease, access authority or special 23
prospecting authority under the Petroleum (Offshore) Act 24
1982. 25
Page 9
State Revenue Legislation Amendment Bill 2013
Schedule 2 Amendment of Land Tax Management Act 1956 No 26
Schedule 2 Amendment of Land Tax Management 1
Act 1956 No 26 2
[1] Section 3 Definitions 3
Insert in alphabetical order in section 3 (1): 4
unit trust means a trust in respect of which the beneficiaries of 5
the trust are owners of units in the trust and each unit holder, or 6
each unit holder of a particular class: 7
(a) is entitled, as a beneficiary of the trust, to participate in any 8
income or capital distributions (or both) of the trust, and 9
(b) the amount or proportion of any income or capital 10
distribution to which the unit holder is entitled is based on 11
the number or class of units owned by the person (or both). 12
[2] Section 3A Special trust--meaning 13
Insert after section 3A (3B) (b): 14
(c) if the trust is a unit trust: 15
(i) there must be only one class of units issued, and 16
(ii) the proportion of trust capital to which a unit holder 17
is entitled on a winding up or surrender of units must 18
be fixed and must be the same as the proportion of 19
income of the trust to which the unit holder is 20
entitled. 21
[3] Section 10 Land exempted from tax 22
Omit section 10 (1) (d). Insert instead: 23
(d) land owned by or in trust for a charitable body, 24
[4] Section 10 (1) (g) (ii) 25
Omit the subparagraph. Insert instead: 26
(ii) a school registered under the Education Act 1990, 27
[5] Section 10 (1) (g) (iv) 28
Omit the subparagraph. Insert instead: 29
(iv) a charitable body, 30
[6] Section 10 (1) (u) and (v) 31
Insert after section 10 (1) (t): 32
(u) land that is used solely for the provision of an approved 33
education and care service (within the meaning of the 34
Page 10
State Revenue Legislation Amendment Bill 2013
Amendment of Land Tax Management Act 1956 No 26 Schedule 2
Children (Education and Care Services) National Law 1
(NSW)), but only if: 2
(i) the service is provided by an approved provider 3
under that Law, and 4
(ii) the land is the place where children are educated or 5
cared for by the service, 6
(v) land that is used solely for the provision of an approved 7
education and care service (within the meaning of the 8
Children (Education and Care Services) Supplementary 9
Provisions Act 2011), but only if: 10
(i) the service is a centre based education and care 11
service within the meaning of that Act, and 12
(ii) the service is provided by an approved provider 13
under that Act, and 14
(iii) the land is the place where children are educated or 15
cared for by the service. 16
[7] Section 10 (5) 17
Insert in alphabetical order: 18
charitable body means a body corporate, society, institution or 19
other body carried on solely for charitable or educational 20
purposes and not for pecuniary profit. 21
[8] Section 10AA Exemption for land used for primary production 22
Omit section 10AA (4). Insert instead: 23
(4) For the purposes of this section, land is rural land if: 24
(a) the land is zoned rural, rural residential, non-urban or large 25
lot residential under a planning instrument, or 26
(b) the land has another zoning under a planning instrument, 27
and the zone is a type of rural zone under the standard 28
instrument prescribed under section 33A (1) of the 29
Environmental Planning and Assessment Act 1979, or 30
(c) the land is not within a zone under a planning instrument 31
but the Chief Commissioner is satisfied the land is rural 32
land. 33
Page 11
State Revenue Legislation Amendment Bill 2013
Schedule 2 Amendment of Land Tax Management Act 1956 No 26
[9] Section 20 1
Omit the section. Insert instead: 2
20 Holder of limited estate taken to be owner 3
(1) The following persons are taken to be owners of land and are to 4
be assessed for land tax accordingly: 5
(a) the owner of any freehold estate in land less than the 6
fee-simple (a limited estate), 7
(b) any person entitled to an estate in the land in reversion or 8
remainder. 9
(2) For that purpose: 10
(a) the owner of the limited estate is taken to be the primary 11
taxpayer, and 12
(b) the person entitled to an estate in the land in reversion or 13
remainder is taken to be the secondary taxpayer, and 14
(c) there is to be deducted from the land tax payable by the 15
secondary taxpayer in respect of the land such amount (if 16
any) as is necessary to prevent double taxation. 17
(3) If the limited estate is a life estate, the life tenant under the life 18
estate is taken to be an owner of the land to the exclusion of any 19
person entitled to an estate in the land in reversion or remainder, 20
but only if: 21
(a) the life estate was created by the express terms of a will 22
(and not by the exercise of a discretion conferred by a 23
will), and 24
(b) the duration of the life estate is based on the life of the 25
tenant and not the life of some other person. 26
(4) This section does not apply if the limited estate is a freehold 27
estate arising by virtue of a lease for life under a lease or an 28
agreement for lease. 29
[10] Schedule 1AA Family unit trusts--special provisions 30
Omit clause 1 from the Schedule. 31
[11] Schedule 1A Principal place of residence exemption 32
Omit "clause" wherever occurring in clause 2 (3) and (4). 33
Insert instead "Schedule". 34
Page 12
State Revenue Legislation Amendment Bill 2013
Amendment of Land Tax Management Act 1956 No 26 Schedule 2
[12] Schedule 1A, clause 7 Concession for change to principal place of 1
residence 2
Omit "owner, and" from clause 7 (2) (c) (ii). Insert instead "owner.". 3
[13] Schedule 1A, clause 7 (2) (d) 4
Omit the paragraph. 5
[14] Schedule 1A, clause 7 (3) and (3A) 6
Omit clause 7 (3). Insert instead: 7
(3) The principal place of residence exemption cannot be claimed for 8
both a former residence and a new residence under this clause for 9
more than one taxing date. 10
(3A) A principal place of residence exemption that applies, by 11
operation of this clause, to land not actually used and occupied by 12
a person at the relevant taxing date is revoked if the person is not 13
actually using and occupying the new residence as his or her 14
principal place of residence by the next taxing date immediately 15
following the relevant taxing date. 16
[15] Schedule 1A, clause 7 (5) 17
Omit the subclause. 18
[16] Schedule 1A, clause 8 (1) 19
Omit the subclause. Insert instead: 20
(1) A person is taken, for the purpose of the principal place of 21
residence exemption, to continue to use and occupy land 22
formerly used and occupied by the person as a principal place of 23
residence (a former residence), after the person ceases to so use 24
and occupy the former residence, if the Chief Commissioner is 25
satisfied that: 26
(a) the person used and occupied the former residence as a 27
principal place of residence for a continuous period of at 28
least 6 months, and 29
(b) the person does not own any other land used and occupied 30
by the person as a principal place of residence. 31
Page 13
State Revenue Legislation Amendment Bill 2013
Schedule 2 Amendment of Land Tax Management Act 1956 No 26
[17] Schedule 1A, clause 11 (5A) 1
Insert after clause 11 (5): 2
(5A) To avoid doubt, land that is taken to be owned by more than one 3
person under this Act is taken, for the purposes of this clause, to 4
be jointly owned by them. 5
Note. See, for example, sections 20 and 25. 6
[18] Schedule 1A, clause 11 (6), note 7
Insert "Section 20 provides for circumstances in which a life tenant is taken to 8
be the owner of land, to the exclusion of another owner (including a 9
company)." before "Section 21A". 10
[19] Schedule 2 Savings and transitional provisions 11
Insert after Part 26: 12
Part 27 Provisions consequent on enactment of 13
State Revenue Legislation Amendment Act 14
2013 15
55 General application of amendments 16
The amendments made to this Act by the State Revenue 17
Legislation Amendment Act 2013 apply to the assessment of land 18
tax liability in respect of the 2014 land tax year and subsequent 19
land tax years. 20
56 Amendments relating to child care services 21
Section 10 (1) (u) and (v), as inserted by the State Revenue 22
Legislation Amendment Act 2013, extend to the assessment of 23
land tax liability in respect of the 2013 land tax year. 24
57 Fixed trusts 25
A unit trust that satisfies the relevant criteria referred to in 26
section 3A, as amended by the State Revenue Legislation 27
Amendment Act 2013, by the end of 30 June 2013 is taken to be a 28
fixed trust under section 3A (3) in relation to the 2013 land tax 29
year. 30
Page 14
State Revenue Legislation Amendment Bill 2013
Amendment of Taxation Administration Act 1996 No 97 Schedule 3
Schedule 3 Amendment of Taxation Administration 1
Act 1996 No 97 2
[1] Section 47A Definitions 3
Omit the definition of assessment amount. Insert instead: 4
corporate tax liability means: 5
(a) the amount of tax that a corporation has been assessed as 6
being liable to pay, as set out in a notice of assessment 7
issued to the corporation, and 8
(b) any interest or penalty tax payable in respect of an amount 9
referred to in paragraph (a). 10
[2] Section 47A, definition of "special arrangement" 11
Omit "an assessment amount". Insert instead "a corporate tax liability". 12
[3] Section 47B Liability of directors and former directors of corporation for 13
failure to pay corporate tax liability 14
Omit "an assessment amount" and "the assessment amount" wherever 15
occurring in section 47B (1) and (3)-(5). 16
Insert instead "a corporate tax liability" and "the corporate tax liability" 17
respectively. 18
[4] Section 47B (2) and (2A) 19
Omit section 47B (2). Insert instead: 20
(2) A compliance notice is a notice that advises a director or former 21
director of a corporation that he or she will be liable to pay a 22
corporate tax liability of the corporation if the failure to pay the 23
corporate tax liability is not rectified before the end of a period 24
specified in the notice (the compliance period). 25
(2A) The compliance period is to be a period of not less than 21 days 26
from the date the notice is served on the director or former 27
director. 28
[5] Section 47B (3) 29
Insert "before the end of the compliance period" after "if". 30
[6] Section 47B (4) 31
Omit "within the period specified in the compliance notice". 32
Insert instead "before the end of the compliance period". 33
Page 15
State Revenue Legislation Amendment Bill 2013
Schedule 3 Amendment of Taxation Administration Act 1996 No 97
[7] Section 47B (4A) 1
Insert after section 47B (4): 2
(4A) The Chief Commissioner is to issue to the director or former 3
director a notice of assessment of the tax liability of the director 4
or former director under this Division. 5
[8] Sections 47C and 47D 6
Omit "an assessment amount" and "the assessment amount" wherever 7
occurring. 8
Insert instead "a corporate tax liability" and "the corporate tax liability" 9
respectively. 10
[9] Section 47E 11
Omit the section. Insert instead: 12
47E Defences 13
In proceedings for the recovery of a corporate tax liability from a 14
director or former director of a corporation under this Division, it 15
is a defence to the recovery of the corporate tax liability from the 16
director or former director if the director or former director 17
establishes that: 18
(a) the director or former director took all reasonable steps 19
that were possible in the circumstances to ensure that the 20
corporation rectified the failure to pay the corporate tax 21
liability before the end of the compliance period for the 22
compliance notice served on the director or former 23
director, or 24
(b) the director or former director was unable, because of 25
illness or for some other similar good reason, to take steps 26
to ensure that the corporation rectified the failure to pay the 27
corporate tax liability before the end of the compliance 28
period for the compliance notice served on the director or 29
former director. 30
Page 16
State Revenue Legislation Amendment Bill 2013
Amendment of Taxation Administration Act 1996 No 97 Schedule 3
[10] Schedule 1 Savings, transitional and other provisions 1
Insert after Part 9: 2
Part 10 Provisions arising from enactment of State 3
Revenue Legislation Amendment Act 2013 4
39 Director's liabilities 5
Division 2 of Part 7, as in force immediately before the 6
commencement of the amendments made by the State Revenue 7
Legislation Amendment Act 2013, continues to apply to a 8
compliance notice issued before that commencement. 9
Page 17
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