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Fire Services Property Levy Bill 2012 Introduction Print EXPLANATORY MEMORANDUM General The Fire Services Property Levy Bill 2012 establishes a fire services property levy to replace the insurance-based funding arrangements for Victoria's fire services. The fire services property levy is to be imposed on all land in Victoria unless specifically exempt. The Bill specifies the levy calculation methodology for each property type. Each property owner will be required to pay a levy amount equal to the sum of the fixed component applicable to their property type and the levy rate attributed to their property type multiplied by the property's capital improved value. Concessions and the power to define maximum charges address potential equity issues. The Bill extends the powers of municipal councils to collect the levy from Victorian landowners. The powers broadly reflect those in the Local Government Act 1989. The Bill also gives the Commissioner of State Revenue (the Commissioner) necessary powers to monitor the collection of the levy by municipal councils and to receive the levy from councils. The Bill ensures privacy safeguards are in place regarding the collection, use and disclosure of property data collected for the purpose of administering the levy to protect the secrecy of that information, as well as the rights of property owners. The Bill also makes consequential amendments to-- the Valuation of Land Act 1960; the Metropolitan Fire Brigades Act 1958; the Country Fire Authority Act 1958; the Essential Services Commission Act 2001; and the Victorian Managed Insurance Authority Act 1996. 571126 1 BILL LA INTRODUCTION 29/8/2012
These amendments extinguish the insurance-based funding arrangements from 30 June 2013 and introduce the property levy from 1 July 2013. However, some of the provisions relating to administrative arrangements for insurers operate until 15 September 2013. The remaining provisions relating to insurers in the Country Fire Authority Act 1958 and the Metropolitan Fire Brigades Act 1958 will be repealed when the administrative arrangements for insurers are no longer required. The Bill also empowers the Essential Services Commission to review insurance premiums to ensure that insurance companies do not continue to charge the fire services levy component after the transition. Clause Notes PART 1--PRELIMINARY Clause 1 sets out the purpose of the Bill which is to impose a fire services property levy on land in Victoria, to provide for the administration of the levy, to empower the Essential Services Commission to review the movement in the cost of insurance premiums following the enactment of the proposed Act and to consequentially amend the Country Fire Authority Act 1958, the Essential Services Commission Act 2001, the Metropolitan Fire Brigades Act 1958, the Valuation of Land Act 1960 and the Victorian Managed Insurance Authority Act 1996. Some of these consequential amendments involve repealing provisions providing for insurance statutory contributions to the fire services. The Valuation of Land Act 1960 is also amended to provide for the valuation of non-rateable property on which the levy will be imposed. Administration includes the appointment of each Council as a collection agency to enable Councils to collect the levy from property owners in their municipalities. The Minister can also appoint Councils to act as collection agencies for properties which are located outside a municipal area. The Commissioner will provide oversight and guidance for Councils in the administration of the levy. The Commissioner's role also includes receiving levy revenue from collection agencies and paying the revenue into the Consolidated Fund. 2
Clause 2 provides that the proposed Act (other than clauses 94, 95, 97, 100, 101, 102, 103, 105, 108, 109 and 110 and Parts 10 and 11) will come into operation on the day after Royal Assent. Clauses 97(3) and 105(2) come into operation on 31 December 2012. Clauses 95, 97(1), 97(2), 102, 105(1) and 108 and Part 10 come into operation on 1 July 2013 to ensure insurance contributions are paid until this date. Clauses 94, 100, 101(1), 103, 109 and 110(1) come into effect on a day or days to be proclaimed, or if any of those provisions are not proclaimed by 1 July 2014, on 1 July 2014. Clauses 101(2) and 110(2) come into effect on a day or days to be proclaimed, or if either provision is not proclaimed by 1 July 2015, on 1 July 2015. Part 11 comes into operation on 31 December 2016. It is intended that the first year of levy collection will be 1 July 2013 to 30 June 2014. Clause 3 defines terms used in the proposed Act including-- collection agency which means a Council-- appointed to collect levy in respect of leviable land in its municipal district; directed by the Minister to be the collection agency in respect of non-rateable leviable land that is not in the municipal district of a Council; leviable land which means land specified in clause 8 of the Bill in respect of which levy is assessable; levy which means the levy payable in respect of leviable land in accordance with Part 2 of the Bill and is comprised of the levy amount (calculated in accordance with clause 17 of the Bill) and any levy interest that may be payable on unpaid levy amounts by an owner of leviable land; non-rateable leviable land which means leviable land that is located inside a municipal district that is not rateable or leviable land that is located outside a municipal district. 3
The Bill also uses terms such as council and municipal district which have the same meaning as in the Local Government Act 1989 and Valuation of Land Act 1960. Clause 4 provides a definition of owner in relation to land for the purposes of the Bill. An owner in relation to land in the Bill includes lease or licence holders of Crown land. Clause 5 provides that if a determination or decision in the Bill is a non- reviewable decision, that decision is not reviewable by a court or administrative review body. Clause 6 provides that the proposed Act will bind the Crown. PART 2--THE FIRE SERVICES PROPERTY LEVY Clause 7 provides for what the fire services property levy is. The levy will be payable by land owners annually in respect of each property held. Clause 8 provides that the levy is assessable against any parcel of land that is separately owned or occupied. Land described in clause 8 of the Bill is leviable land. Clause 9 provides for how the ownership or occupation of a parcel of land is to be determined for the purposes of valuation and the assessment of levy under the Bill. Subclause (2) provides for when several parcels of land are to be regarded as together forming leviable land. If the parcels of land are in the same municipal district or the same area that is not located in a municipal district and the parcels are occupied by the same person and the parcels are separated only by a road (or something similar) which makes movement across or around the parcels reasonably possible then the land may be levied as a single property and the owner will only be required to make one fixed contribution, rather than pay the fixed contribution for each parcel. Subclause (3) provides that where a property owner owns two unoccupied parcels of leviable land that are located in the same municipal district (or not within any municipal district) and the parcels of land form one continuous area, the parcels are to be levied as together forming leviable land. 4
Subclause (4) provides that if a portion of a parcel of land is capable of being occupied separately, each portion is to be levied as separate leviable land. Subclause (5) provides that where a portion of leviable land is subject to a different levy rate to the remainder of the land, the value of the land must be apportioned to show the value of each portion. The applicable levy rate will then be applied to the capital improved value of the relevant portion. Subclause (6) provides that where leviable land extends beyond a municipal boundary, the land and levy payable is to be apportioned with each collection agency collecting a fraction of the fixed charge and ad valorem component. Clause 10 provides that the levy is not payable in respect of some types of land. For example, Commonwealth land and certain lands owned by the State. Where land is owned by the Crown or a public body, it will be exempt--unless it is leased or licensed to a body that is not the Crown or a public body. The Schedule provides an exemption for some land uses based on the allocation of the land's Australian Valuation Property Classification Code (AVPCC code). In addition, land can be exempted by regulation. The levy only applies to real property and will not apply to personal property, motor vehicles and infrastructure networks such as gas pipelines. Clause 11 provides the fixed charge payable in respect of each property type. Residential land and vacant residential land will pay a fixed charge of $100 in 2013-14. All other property types, including non-residential vacant land will pay a fixed charge of $200 in 2013-14. The fixed charges will increase annually with increases in the consumer price index. In the Schedule, each type of property is allocated to one of the listed land classifications according to the land's AVPCC. Vacant residential land is allocated to the residential classification. All other vacant land will be allocated to the vacant land classification. Clause 12 provides for the determination of the levy rate by the Minister on or before 31 May each year and states the factors that the Minister must have regard to in determining the levy rate. 5
The fire services property levy is intended to recover 87·5 per cent of the statutory contribution to the MFB budget plus administration costs, and 77·5 per cent of the statutory contribution to the CFA budget, plus administration costs. The remainder of the statutory contribution will be met by the Consolidated Fund. The insurance-based brokers and owners contribution and the statutory contribution from municipal councils will be replaced by the property levy. Subclause (5) provides that the levy rate determination of the Minister is a non-reviewable decision. Clause 13 provides that a different levy rate could be determined for different land, based on the location and use of the land. It is not intended that the allocated levy rate reflect the bushfire risk of the individual property. Clause 14 states that different levy rates may be determined based on the location of the land relative to the metropolitan fire district. That is, a different levy rate may apply to properties serviced by the MFB and those serviced by the CFA. Clause 15 provides for land to be classified by land use for the purpose of determining the levy rate--residential, commercial, industrial, primary production, public benefit and vacant land (excluding vacant residential land). The classification of each property is determined by the Schedule allocation of the AVPCC to a fire services property levy land use classification. Subclause (5) provides that the land use classification of a parcel of land based on the allocation of the AVPCC code to the parcel of land is a non-reviewable decision. Clause 16 provides that the valuations used to calculate the fire services property levy are the same valuations that are made biennially under the Valuation of Land Act 1960 in respect of rateable land. The Valuation of Land Act 1960 is amended by the Bill (see Part 9 of the Bill) to ensure that land not currently valued for ratings purposes will be valued for the purposes of the fire services property levy. 6
Clause 17 provides for the calculation of the levy amount payable by an owner of leviable land. The amount payable is calculated to include a fixed charge and a variable component assessed on the capital improved value of the property. The capital improved value is determined biennially as part of the valuation process. In the first year of the levy, the capital improved value of non-rateable property will be determined by the Valuer-General. Clause 18 provides that the Minister may specify by notice published in the Government Gazette the maximum level amount payable in respect of leviable land. A different maximum may be set depending on the land use classification of the land. The maximum is set in respect of leviable land capable of separate assessment. Where an owner owns multiple properties capable of separate assessment for levy assessment purposes, the owner will be liable to pay up to the maximum levy in respect of each property. Clause 19 provides that the owner of leviable land is liable to pay the levy and clarifies which party is deemed to be the owner and liable for the levy in cases of caravan parks, Crown licenses for pasture, plantations and unused roads and water frontages. For example, a caravan park is treated as a single property and the caravan park owner will be liable to pay the levy in respect of the whole property. Individual occupiers within the caravan park will not be assessed for the levy. The clause also provides for unpaid levy and related amounts to be an equal first charge on land together with rates. Clause 20 specifies that only the fixed charge is payable in respect of some Council-owned recreation land. This is limited to property such as local football ovals, bike tracks, scout halls, gardens and playgrounds that are available for public use and are not operated for commercial purposes. This clause does not apply to Council-owned property which is commercial or business in nature such as golf courses, race- courses, sport stadiums or child care centres. 7
PART 3--COLLECTION OF LEVY BY COLLECTION AGENCY Division 1--Appointment, functions and general powers Clause 21 appoints each Council as the collection agency in respect of land in its municipal district and allows the Minister to direct Councils to collect levy amounts from land not within a municipal district. The clause enables Councils to do all things necessary for the exercise of their powers and functions under the Bill, including day-to-day administrative tasks such as telephone and counter enquiries, collection and recovery of the levy and maintaining records of leviable land. Clause 22 provides that a collection agency may exercise certain specified powers under the Local Government Act 1989 (with any modifications as are necessary) in order to perform its functions and duties under the Bill as if the collection agency were acting in its role as Council under the Local Government Act 1989. Clause 23 provides that authorised officers appointed under the Local Government Act 1989 are authorised officers under the Bill for the purposes of the Bill. However, these authorised officers are not authorised officers under Part 4 of the Bill, which provides for the Commissioner's oversight role. Clause 24 provides for the collection and maintenance of levy records by collection agencies. Levy records for the purposes of clause 24 of the Bill are details relating to leviable land including a description of each property capable of separate assessment of levy and the names and addresses of owners of leviable land. The levy records must be recorded accurately and must be made available to a permitted person on request or at the request of a person acting on behalf of a permitted person. A permitted person is defined for the purposes of clause 24 to mean the collection agency keeping the records, the owner of leviable land, the Commissioner and any person prescribed by the regulations. 8
Division 2--Levy collection by collection agencies Clause 25 provides that a collection agency must give notice (an assessment notice) to owners of leviable land (or a person specified by an owner) setting out the levy assessed in respect of that land that is payable. Subclause (2) specifies the details that must be included in an assessment notice. The fire services property levy must be included as a line item on the Council rates notice where a notice is issued. A separate notice may only be issued for non-rateable leviable land where the council does not issue a rates notice. Councils are not required to issue an assessment notice to themselves. Councils will be required to lodge a return to the Commissioner in accordance with any direction issued by the Minister in respect to returns. Subclause (5) provides that if a collection agency receives payment in respect of a rates and levy notice that is less than the amount due and payable, the amount received is to be divided proportionally between the payment of rates and charges (as indicated by the relevant notice) owed to the council and the payment of the levy. For example, if the rates notice raises a liability for council rates and charges of $900 and fire services property levy of $100, and only $500 is paid by the property owner, the collection agency must return $50 to the Commissioner and may retain $450 to offset the council liability. Once the remaining $500 is recovered by the collection agency from the property owner, the collection agency must forward the outstanding $50 to the Commissioner. Clause 26 provides for the payment of the levy amount. The collection agency must allow a person to pay in four instalments and may allow a person to pay a levy in a lump sum. The timing of the payments are the same as the timing of rates payments. Clause 27 provides that a levy amount may be deferred or waived in the same way that rates can be deferred or waived in the Local Government Act 1989. A deferral or waiver is only permitted where the same is granted in respect of Council rates payable in respect of the same land. 9
Clause 28 provides that owners of non-rateable leviable land that is classified residential are entitled to a deferral or waiver in the same way as owners of residential leviable land that is rateable are. Owners of non-rateable leviable land that is not residential are not eligible for a deferral or waiver of the liability to pay levy. Clause 29 provides a $50 concession to pensioner concession card holders and Veterans Affairs gold card holders for the levy payable on an eligible property owner's principal place of residence. Only one $50 concession can be claimed in respect of an assessable parcel of leviable land and if an eligible owner has multiple properties, the concession only applies in respect of the property that is the owner's principal place of residence. The eligibility requirements are consistent with eligibility for a Council rates concession. Clause 30 authorises the imposition of interest on unpaid levy amounts and specifies the calculation of the levy interest. If a Council imposes interest for unpaid rates, they must also impose interest for the unpaid levy. However if a Council exempts a person from paying interest for unpaid rates, they may also exempt the person from paying interest for the unpaid levy. The collection agency has the discretion to exempt a person from paying interest if the property is classified as residential and is non-rateable leviable land. Clause 31 provides for joint liability in respect of the levy. Where one owner pays the levy, that person may recover a contribution from the other owner(s) who are also jointly liable for it. Clause 32 provides for the payment of levy where a property is purchased by a new owner. A new owner of leviable land is liable for any current amount payable and any levy amount in arrears in respect of that land. Clause 33 provides for the collection agency to recover an unpaid levy amount from rent. Where an unpaid levy amount is recovered from a tenant, the amount is to be deducted from rent, unless there was an agreement for the tenant to pay the levy. 10
Clause 34 provides for the recovery of a levy amount despite an objection, review or appeal of a valuation under the Valuation of Land Act 1960. Objections, reviews and appeals in relation to the fire services property levy are treated the same as objections, reviews and appeals in relation to valuations of rateable land under the Valuation of Land Act 1960. Disputes in relation to valuations of non-rateable leviable land are treated in the same way as disputes in relation to rateable land. If an objection or appeal results in the alteration of a valuation or a decision to attribute a different AVPCC to leviable land, the collection agency will adjust its records accordingly. Where an adjustment results in a refund being paid but a levy liability remains due and payable from another period, the refund must first be used to offset the outstanding liability. Clause 35 provides for the collection agency to sue for the recovery of an unpaid levy amount. If the levy is recovered from the owner and there is an agreement in place stating the occupier is to pay the levy, the owner may recover the amount from the occupier. An occupier who pays the levy under this section need not pay more than the amount of rent owed, unless there is an agreement that the occupier is to pay the levy. The owner has the burden of proof of showing that there is an agreement in place. This element differs from the Local Government Act 1989 which provides that the occupier has the burden of proof. Clause 36 provides for the refund of an overpaid levy amount in respect of leviable land. Subclause (2) provides that an application under clause 36 does not apply if a person believes an overpayment has been made because of a valuation made or adopted under the Valuation of Land Act 1960 or because of the AVPCC allocated to the leviable land. A person aggrieved by a valuation of the land or AVPCC allocation may make an objection under Part III of the Valuation of Land Act 1960. 11
Clause 37 states that a collection agency must open and maintain an account with an ADI to hold levy amounts and levy interest on behalf of the Commissioner. Under clause 41 of the Bill, the collection agency must transfer the levy amounts and levy interest to the Commissioner.. Subclause (3) provides that any interest earned on the levy amounts and levy interest, while in the dedicated account, may be retained by the collection agency provided the collection agency satisfies all obligations under the Bill. However, under subcluase (4), the Commissioner can determine that an agency has failed to perform its duties or is in breach of its obligations under the Bill, in which case the interest must be paid to the Commissioner. This is a non-reviewable decision. ADI is defined in the Interpretation of Legislation Act 1984 to mean authorised deposit taking institution within the meaning of the Banking Act 1959 of the Commonwealth.. Clause 38 provides for an assessment of a liability to be cancelled where the assessment of a person's liability to pay a levy amount was made in error and, if appropriate, for a fresh assessment to be issued. Clause 39 provides for a revised assessment to be issued where a supplementary valuation has caused a change in the levy amount owed by an owner of leviable land. Division 3--Collection agency returns and payment of levy to Commissioner Clause 40 provides that the collection agency must submit returns to the Commissioner in a form approved by the Commissioner, and in accordance with any directions made by the Minister under clause 72. This may include an annual return providing details of leviable land, and returns accompanying payments with details of the levy collected by the collection agency and the levy payable by a Council in respect of the land it owns. 12
Clause 41 provides that a collection agency must pay all levy amounts and levy interest to the Commissioner in 4 instalments. These instalments are to be paid no later than 28 days after the due date for rates and levy payments. The third instalment should also include any levy payments received when the "lump sum" rates and levy amount fell due. This instalment is due and payable 28 days after the later of the due date for the third instalment and the "lump sum" payment. Payments are to be made to the Commissioner in accordance with any directions issued by the Minister in respect to returns. PART 4--COMMISSIONER OVERSIGHT Division 1--Administration of Part Clause 42 provides for the Commissioner to have the general administration of Part 4 of the Bill and any regulations made for the purposes of that Part. Clause 43 provides that the Commissioner, and persons appointed as authorised officers under the Taxation Administration Act 1997, are authorised officers for the purposes of Part 4 of the Bill. Clause 44 provides that authorised officers must have an identity card in a form approved by the Commissioner stating that the person is an authorised officer for the purposes of Part 4 of the Bill. Clause 45 provides that the Commissioner may delegate his or her functions under the Bill to any person employed or engaged in the administration or enforcement of the Bill, other than the power of delegation. Clause 46 provides that staff may be employed under Part 3 of the Public Administration Act 2004 to assist the Commissioner in performance of his or her powers, duties or functions under the Bill. Clause 47 provides that the Commissioner may engage consultants and contractors to assist in the performance of his or her functions under the Bill. 13
Division 2--Role of, and functions and powers of, Commissioner Clause 48 provides the Commissioner with the authority to monitor the performance of collection agencies, receive levy amounts and levy interest from collection agencies and to pay these amounts into the Consolidated Fund. The Commissioner also has any other function conferred on the Commissioner under this Bill. Clause 49 states that the Commissioner is required to keep proper accounts of amounts received from collection agencies. Clause 50 provides for the payment of levy amounts and levy interest collected by collection agencies and received by the Commissioner into the Consolidated Fund. Clause 51 provides that the Minister may require the Commissioner to review the costs incurred by collection agencies for collection of levy under the Bill. Any review conducted by the Commissioner is to assist in the Minister's determination of the fees to be paid to collection agencies. Clause 52 provides that the Commissioner is to arrange for the payment of fees to collection agencies for the performance of their functions if the Minister makes a determination in accordance with clause 70. Clause 53 provides that, without limiting the powers of the Commissioner under the Taxation Administration Act 1997, the Commissioner has the power to do all things necessary or convenient for the performance of his or her functions in Part 4 of the Bill. Division 3--Investigative powers Clause 54 provides that the Commissioner may conduct an investigation for the purposes of exercising his or her functions under Part 4 of the Bill. The Commissioner can require a person to give written information, answer questions or produce a document to assist with the investigation. The information may be required to be given under oath (if given orally) or verified by statutory declaration. 14
Failure to comply with a notice is an offence. The maximum statutory penalty for this offence is of 40 penalty units for a natural person and 200 penalty units for a body corporate. Clause 55 provides that an authorised officer may inspect premises, require a person to produce a document and answer questions, retain a document, and require a person give any other assistance that may be reasonable to carry out the investigation. An authorised officer may enter premises with the consent of the occupier or with the authority of a warrant. On request, an authorised officer must produce his or her identity card. Obstructing an authorised officer or person assisting an authorised officer, failing to comply (without a reasonable excuse) with a requirement made by an authorised officer, or providing a false or misleading answer to a question are offences under the Bill. The maximum statutory penalty for these offences is 100 penalty units for a natural person and 500 penalty units for a body corporate. Clause 56 provides that an authorised officer may apply to a magistrate for the issue of a search warrant, if the authorised officer believes on reasonable grounds that there may be a particular thing on the premises relevant to the administration of Part 4 of the Bill. A magistrate may issue a search warrant, stating all specified information, to permit an authorised officer to enter the premises, search for and seize a thing described in the warrant, and if reasonably necessary, break open a receptacle in the premises. Clause 57 states that unless it would risk the safety of any person or prevent the effective execution of the warrant, the authorised officer must announce that he or she is authorised by the warrant to enter the premises and give any person the opportunity to allow entry. Clause 58 provides that an authorised officer must identify himself or herself by producing an identity card and give the occupier (or person representing the occupier) a copy of the execution of the warrant. 15
Clause 59 provides that a person may refuse to give information, produce documents or answer questions under Division 3 of Part 4 of the Bill on the grounds that it would incriminate the person, in respect of an offence other than an offence under the Bill. Information given, documents produced, or questions answered by a person as required by Division 3 of Part 4 are not admissible in evidence against the person in any proceeding in respect of an offence against the Bill. Clause 60 provides that the Commissioner is entitled to inspect or take copies of any public records relevant to administration or collection of the levy without payment of any fee. Division 4--Miscellaneous provisions Clause 61 provides that levy amounts may be paid to the Commissioner by EFT or as directed by the Commissioner. Clause 62 provides that any amount paid by the Commissioner under the Bill is to be paid from the Consolidated Fund. Clause 63 permits legal proceedings to be taken by or against the Commissioner in the name "Commissioner of State Revenue". PART 5--SECRECY AND GENERAL PROVISIONS Division 1--Secrecy Clause 64 prohibits an authorised person disclosing any information obtained under or in relation to the Bill, except as permitted by Part 5 of the Bill. Failure to comply with this provision is an offence with a maximum statutory penalty of 60 penalty units. An authorised person is defined in clause 3 of the Bill to mean-- an authorised officer within the meaning of clause 23 of the Bill; an authorised officer within the meaning of clause 43 of the Bill; any other person engaged in the administration of the Bill. 16
Clause 65 permits an authorised person to disclose information obtained under or in relation to the administration of the Bill with the consent of the person to whom the information relates, or in connection with the administration or enforcement of the Bill, or in accordance with a requirement under an Act or to a specified authorised recipient. Authorised recipients are specified in subclause (1)(d) and include the valuer-general and the Essential Services Commission. Clause 66 permits the Commissioner and a CEO of a Council to disclose information obtained under or in relation to the administration of the Bill which is not likely to identify a particular person. Clause 67 permits the Commissioner and the Chief Executive Officer of a Council to disclose information likely to identify a person if the disclosure is permitted by the Bill or necessary for the administration of the Bill. Clause 68 prohibits a person disclosing information obtained from an authorised person unless the disclosure is made to enable the person to exercise a function conferred by law for the purpose of enforcement or administration of the law or protecting the public revenue, or the disclosure is authorised by the Commissioner or a CEO of a Council. Failure to comply with this provision is an offence. The maximum statutory penalty is 60 penalty units for a natural person and 300 penalty units for a body corporate. Clause 69 provides that a person is not required to disclose in Court, any information obtained in relation to the Bill, unless it is necessary for the administration of the Bill or it is for the purposes of enabling a person who is specified for the time being to be an authorised recipient to exercise a function conferred or imposed on the person by law. Division 2--General Clause 70 provides for the Minister to determine a fee payable to collection agencies for functions performed in accordance with the Bill. The fee received by each collection agency may be different to reflect the costs of levy collection. The Minister may consult with persons or organisations, such as the Revenue Management Association and the Municipal Association of Victoria, in determining the appropriate fee. 17
The Minister may also require, under clause 51 of the Bill, that the Commissioner review the costs incurred by collection agencies in performing their functions and that the Commissioner provide this information to the Minister. Once the Minister has determined the fee payable to any collection agency, the Commissioner will pay the amount in accordance with any directions set out in the determination. Clause 71 provides that a property owner may apply for a levy record to be altered where the record contains incorrect information. Clause 72 provides for the Minister to issue directions in relation to the performance of functions under the Bill. Clause 73 gives the Minister the power to delegate any power, duty or function of the Minister to a person or body under the Bill other than the power of delegation. Clause 74 provides that the Minister administering the Bill can request the Minister administering the Local Government Act 1989 to exercise his or her functions under section 219 of the Local Government Act 1989 if the Minister administering the Bill is satisfied that there has been a serious failure by a Council to perform its functions as a collection agency under the Bill. There may be a serious failure whether or not an offence has been committed under the Bill. Division 3--Service Division 3 of Part 5 of the Bill provides different service regimes for service on and by different parties. This is due to differences in the service provisions in the Local Government Act 1989 which are used by Councils and the service provisions in the Taxation Administration Act 1997 which are used by the Commissioner. Both service regimes have been included in the Bill to allow existing processes to be used whenever possible to ensure the efficient administration of the Bill. Subdivision 1--Service on or by a collection agency Clause 75 provides that a document may be served on a collection agency by delivering the document to a member of staff of the collection agency or by sending the document by post. 18
Clause 76 provides that a document may be served by a collection agency on a person by delivering the document to the person, leaving the document at a last known place of residence or business with a person not less than 16 years of age, or by sending the document by post to the person's last known residential or business address. The document may be addressed to "the owner" or "the occupier" and put on a conspicuous position on the property if the name and/or address are not known and the document is required to be served or given to the owner or occupier of any land. Clause 77 provides that a statutory declaration by a person who has served a document on a collection agency or on behalf of a collection agency is evidence of the document having been served. Subdivision 2--Service on or by the Commissioner Clause 78 provides that a document may be served on the Commissioner by delivering the document to an office of the Commissioner, leaving the document with a person authorised to accept documents on the Commissioner's behalf, by sending the document by post to an office of the Commissioner or by means approved by the Commissioner (such as facsimile). Clause 79 provides that a document served on the Commissioner or amount paid to the Commissioner outside of business hours, is taken to be received on the next business day. Clause 80 provides that a document may be served by the Commissioner on a person by delivering the document to the person, leaving the document at the person's last known address, by sending the document by post to the person's last known address, by other means approved by the person (such as facsimile) or by any means provided by law. The Commissioner may also serve the document on the person's agent. Clause 81 provides that a document is taken to be served on a person by the Commissioner-- if served personally, at the time the document is delivered; or 19
if the document is posted, 2 days after the document is posted; or in the case of an electronic transmission when the electronic transmission is received. Where the electronic transmission is received after 5:00 pm it is taken to be received on the next business day. Division 4--Miscellaneous Clause 82 provides that a person must not obstruct a collection agency or a member of staff of Council in performing any of the functions the collection agency is empowered to do under the Bill or regulations made under the Bill. Failure to comply with this provision is an offence with a maximum statutory penalty of 60 penalty units. Clause 83 gives the Governor in Council the power to make regulations with respect to exemptions or any other matter required for the purposes of the Bill. Clause 84 provides that it is the intention of clauses 5, 12, 15 and 37 to alter section 85 of the Constitution Act 1975. Specified decisions in these clauses cannot be reviewed by a Court or Tribunal. PART 6--TRANSITIONAL ARRANGEMENTS Division 1--Review of the insurance industry Clause 85 provides for the definition of terms used in Part 6 of the Bill. Clause 86 provides that, if requested by the Minister, the Essential Services Commission is to undertake a review of the movement in insurance premiums. The Essential Services Commission must report to the Minister on a date determined by the Minister, but no later than 31 December 2016. Clause 87 provides that, subject to Part 6 of the Bill, the Essential Services Commission may conduct the review in any manner the Essential Services Commission deems appropriate and is not bound by the rules of evidence. 20
Clause 88 provides that the objectives of the Essential Services Commission under the Essential Services Commission Act 2001 do not apply to the Commission under Part 6 of the Bill unless the Minister otherwise determines. Clause 89 provides that the Essential Services Commission may serve a notice requiring a person to provide evidence or produce documents. It is an offence not to comply with a notice or summons of the Commission or to provide false or misleading information. Clause 90 provides that a person may refuse or fail to provide written or verbal evidence or produce specified documents under Division 1 of Part 6 on the grounds that it would incriminate the person, in respect of an offence other than an offence under the Bill. Written or verbal evidence provided or specified documents produced by a person as required by Division 1 of Part 6 are not admissible in evidence against the person in any proceeding in respect of an offence against the Bill. Clause 91 provides that the Essential Services Commission must provide the report to the Minister, and may provide the report to a third party. The Commission must divide any report into a document containing confidential information (if any) and another document containing the rest of the report. Division 2--Amendment of Essential Services Commission Act 2001 Clause 92 amends section 10 of the Essential Services Commission Act 2001 to refer to functions conferred on the Essential Services Commission by the Bill. Clause 93 amends section 38 of the Essential Services Commission Act 2001 to provide for the restriction on the disclosure of confidential information when such information is given to the Essential Services Commission under clause 89 of the Bill. 21
PART 7--AMENDMENT OF COUNTRY FIRE AUTHORITY ACT 1958 Clause 94 repeals definitions in section 3(1) of the Country Fire Authority Act 1958 specifically related to the insurance-based funding model. Clause 95 amends section 7(1) of the Country Fire Authority Act 1958 to remove the insurance industry representatives from the CFA board. Subclause (2) amends section 10(1) of the Country Fire Authority Act 1958 to provide that a quorum of the Authority will now consist of not less than 6 members (this reduces the number from 7). Clause 96 amends section 75(1) of the Country Fire Authority Act 1958 to require the CFA to provide the Minister with an estimate of revenue and expenditure which may be incurred in the next financial year to enable the levy rates to be determined. Clause 97 amends section 76(1)(b) of the Country Fire Authority Act 1958 to provide that 77.5 per cent of the CFA budget will be funded by the property levy. This replaces the insurance statutory contribution. A new subsection (3) is temporarily inserted into section 76 of the Country Fire Authority Act 1958 requiring insurance companies to submit quarterly reports stating the gross written premium received or due to the insurance company. Clause 98 amends section 77(1) of the Country Fire Authority Act 1958 to extend the date for the lodgement of the final return showing the portion of the total amount of the gross premiums from 15 August 2013 to 15 September 2013. Clause 99 amends section 78 of the Country Fire Authority Act 1958 to extend the date from which penalties are imposed for late lodgement from 15 August 2013 to 15 September 2013. The date of payment is extended from 1 October to 1 November. This clause also inserts "2013" after "1 November" to provide for the last ever return. Clause 100 repeals section 103A of the Country Fire Authority Act 1958 which relates to the Australian Fire Brigades Charges Scheme. 22
Clause 101 repeals sections of the Country Fire Authority Act 1958 specifically related to the insurance-based funding model. Clause 102 confirms that the CFA is the same body despite the changes to its Board brought about by clause 95 of the Bill. PART 8--AMENDMENT OF METROPOLITAN FIRE BRIGADES ACT 1958 Clause 103 repeals definitions in section 3(1) of the Metropolitan Fire Brigades Act 1958 specifically related to the insurance-based funding model. Clause 104 amends section 36 of the Metropolitan Fire Brigades Act 1958 to require the MFB to provide the Minister with an estimate of revenue and expenditure which may be incurred in the next financial year to enable the levy rates to be determined. Clause 105 amends section 37 of the Metropolitan Fire Brigades Act 1958 to provide that 87·5 per cent of the MFB budget will be funded by the property levy. This replaces both the insurance statutory contribution and the statutory contribution made by Councils. A new subsection (3) is temporarily inserted into section 37 of the Metropolitan Fire Brigades Act 1958 requiring insurance companies to submit a quarterly report stating the gross written premium received or due to the insurance company. This provision will be repealed by clause 110(1) once the insurance contributions have ceased and all administrative matters associated with the insurance statutory contributions have been finalised. Clause 106 amends section 40 of the Metropolitan Fire Brigades Act 1958 to extend the date for the lodgement of the final return showing the portion of the total amount of the gross premiums from 15 August 2013 to 15 September 2013. Clause 107 amends section 41 of the Metropolitan Fire Brigades Act 1958 to extend the date from which penalties are imposed for late lodgement from 15 August 2013 to 15 September 2013. The date of payment is extended from 1 October to 1 November. This clause also inserts "2013" after "1 November" to provide for the last ever return. 23
Clause 108 amends section 47 of the Metropolitan Fire Brigades Act 1958 to remove references to insurance companies and municipalities as bodies from which the Minister can recover money in the case of default of the Board. Clause 109 repeals section 69A of the Metropolitan Fire Brigades Act 1958 which relates to the Australian Fire Brigades Charges Scheme. Clause 110 repeals sections of the Metropolitan Fire Brigades Act 1958 specifically related to the insurance-based funding model. PART 9--AMENDMENT OF VALUATION OF LAND ACT 1960 Clause 111 inserts definitions in section 2(1) of the Valuation of Land Act 1960 that are required as a consequence of the Bill and updates section 2 of the Valuation of Land Act 1960 generally to include non-rateable leviable land. From the date of commencement, the Valuation of Land Act 1960 will provide for the valuation of both rateable and non-rateable leviable land. Clause 112 expands section 5(1)(ab) of the Valuation of Land Act 1960 to include collection agencies under the Fire Services Property Levy Act 2012. Clause 113 expands section 6(1)(b) of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district (for example French Island). Clause 114 expands section 7 of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district. Clause 115 expands section 7AA of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district. Clause 116 expands section 7AB of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district and provides that the Council may adjust the fire services property levy payable retrospectively, as it does for rates, in the case of an amended valuation. 24
Clause 117 expands section 7AC of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district. Clause 118 expands section 7AE of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district. Subclause (3) amends section 7AE(2)(a) to permit the Minister to request that the Governor in Council to make an Order for a new valuation to be made in respect of all rateable and non- rateable leviable land where a council general valuation or collection agency general valuation is not generally true and correct. Clause 119 expands section 7AF of the Valuation of Land Act 1960 to include valuations of non-rateable leviable land that are not within a municipal district and provides for the new Part IIA (being inserted by clause 126 of the Bill) which requires the valuation of non-rateable leviable land. Clause 120 Subclause (1) amends section 7AG(1) of the Valuation of Land Act 1960 to include a reference to a collection agency. Subclause (2) of the Valuation of Land Act 1960 expands section 7A to include valuations of non-rateable leviable land that are not within a municipal district. Clause 121 expands section 7B of the Valuation of Land Act 1960 to include the return of valuations of non-rateable leviable land made outside the collection agencies municipal district and provides for the new section 13M (as inserted by clause 126 of the Bill). Clause 122 amends section 7C of the Valuation of Land Act 1960 to provides that the Valuer-General must maintain valuation records for valuations of non-rateable leviable land. Clause 123 amends section 8AA of the Valuation of Land Act 1960 to provide that copies of valuations of non-rateable leviable land are eligible for the same fees as copies valuations of rateable land. 25
Clause 124 amends section 13DC of the Valuation of Land Act 1960 to provide that as part of the valuation process, each separately valued property must be allocated an AVPCC based on the Valuation Best Practice Specifications Guidelines. AVPCC are already used but are currently only required by the Valuation Best Practice Specifications Guidelines. Clause 125 amends section 13DF(2) of the Valuation of Land Act to insert a new paragraph (l) to provide that a supplementary valuation may be made where the discovery of an error made in allocating the AVPCC gives rise to a change in the land use classification of the land. Clause 126 inserts a new Part IIA into the Valuation of Land Act 1960. Part IIA requires that non-rateable leviable land be valued for the purposes of the fire services property levy. As far as possible, new Part IIA replicates the existing valuation provisions for rateable land in Part II of the Valuation of Land Act 1960 to cover non-rateable leviable land. This new Part deals with the valuation of non-rateable leviable land located both inside and outside a municipal district. Clause 127 expands section 15 of the Valuation of Land Act 1960 to require a notice of valuation to be given where a council values a property which is located outside a municipal district. Section 15 of the Valuation of Land Act 1960 is also expanded to include the fire services property levy as a rate or tax and to reflect the new Part IIA. Clause 128 amends section 16 of the Valuation of Land Act 1960 to confer a right of objection on the owners of a property that is not valued for ratings purposes but is valued for the purposes of administering the Bill. The owners of property that valued under the Valuation of Land Act 1960 for ratings purposes already have objection rights under section 16 of that Act. Clause 129 amends section 17 of the Valuation of Land Act 1960 to insert the AVPCC allocated to the land as a ground for objection. 26
Clause 130 expands section 19 of the Valuation of Land Act 1960, which places a limitation on lodging objections where a previous objection has been lodged to include all leviable land. PART 10--CONSEQUENTIAL AMENDMENT TO VICTORIAN MANAGED INSURANCE AUTHORITY ACT 1996 AND REPEAL Division 1--Consequential amendment Clause 131 repeals section 7(4) of the Victorian Managed Insurance Authority Act 1996 which relates to the insurance contributions to the funding of the Metropolitan Fire and Emergency Services Board and the Country Fire Authority. Division 2--Repeal Clause 132 repeals the following Parts of the Bill on 1 July 2014-- Division 2 of Part 6; and Part 9; and Division 1 of Part 10. Subclause (2) repeals the following Parts of the Bill on 1 July 2016-- Part 7; and Part 8. This provision is intended to simplify the Act in future years and does not affect the amendments to other Acts (the amendments stand despite the repeal). PART 11--FURTHER AMENDMENT OF ESSENTIAL SERVICES COMMISSION ACT 2001 AND RELATED REPEAL Clause 133 repeals Division 1 of Part 6 of the Bill. Clause 134 repeals section 10(la) of the Essential Services Commission Act 2001 to undo amendments made by the Bill to the Essential Services Commission Act 2001 once the role of the Essential Services Commission is completed under the Bill. 27
Clause 135 amends section 38 of the Essential Services Commission Act 2001 to remove amendments previously made to section 38 of that Act by the Bill. Clause 136 repeals Parts 11 of the Bill on 1 December 2017. This provision is intended to simplify the Act in future years. SCHEDULE Allocates each AVPCC to a fire services property levy land use classifications. Where an AVPCC has more than 3 digits, the code is taken to be the 3 digit code. For example, if a code was 101.9999, the code is taken to be 101 for the purposes of the fire services property levy land use classifications. 28