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This is a Bill, not an Act. For current law, see the Acts databases.


REVENUE LEGISLATION AMENDMENT BILL 2022

2022

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

Revenue Legislation Amendment Bill 2022



Contents

Page











































Part 1.1Civil Law (Sale of Residential Property) Act 200329

Part 1.2Land Tax Act 200429

2022

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

Revenue Legislation Amendment Bill 2022

A Bill for

An Act to amend legislation about revenue collection, and for other purposes









The Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1 Preliminary

1 Name of Act

This Act is the Revenue Legislation Amendment Act 2022

.

2 Commencement

(1) Parts 1 and 3 commence on the day after its notification day.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act

, s 75 (1)).

(2) Part 2 commences on a day fixed by the Minister by written notice.

Note 1 A single day or time may be fixed, or different days or times may be fixed, for the commencement of different provisions (see Legislation Act

, s 77 (1)).

Note 2 If a provision has not commenced within 6 months beginning on the notification day, it automatically commences on the first day after that period (see Legislation Act

, s 79).

(3) Schedule 1 commences on the commencement of section 12 (New section 77A).

3 Legislation amended

This Act amends the Duties Act 1999

and the Land Tax Act 2004

.

Note This Act also amends the Civil Law (Sale of Residential Property) Act 2003

(see sch 1).

Part 2 Duties Act 1999

4 Dictionary

Section 2A, note 1

substitute

Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or other legislation.

For example, the signpost definition ‘Crown lease—see the Land Titles Act 1925

, dictionary.’ means that the term ‘Crown lease’ is defined in that dictionary and the definition applies to this Act.

5 No double duty

Section 17 (7)

omit

marketable securities that confer

substitute

an interest in a landholder conferring

6 Section 17 (9), new definition of related person

insert

related person—see section 77A (3).

7 Sections 28 and 29 (3)

omit

where:

8 Exemptions

Part 2.5 heading, new note

insert

Note The exemptions from duty provided under this part are in addition to the exemptions under ch 11 (General exemptions from duty).

9 Transfer of property from one superannuation fund to another

Section 62 (3)

omit

10 Transfers between trustee and custodians of superannuation funds or trusts

Section 63 (2), definition of complying superannuation fund

omit

11 Section 76

substitute

76 Meaning of chapter 3 transaction

In this Act:

chapter 3 transaction means—

(a) an acquisition of an interest in a landholder under part 3.2; or

(b) an acquisition of a land use entitlement under part 3.4; or

(c) a voluntary transfer of a business under part 3.6.

76A Definition—ch 3

In this chapter:

acquisition statement—see section 87 (1).

12 New section 77A

in division 3.2.1, insert

77A Meaning of associated person

(1) For this Act, an associated person means a person who is associated with another person in accordance with any of the following:

(a) people are associated people if they are related people;

(b) individuals are associated people if they are partners in a partnership to which the Partnership Act 1963

applies;

(c) private companies are associated people if—

(i) any majority shareholder, or a related person of the shareholder, is a majority shareholder of each company; or

(ii) there are minority shareholders common to each company who, if their interests in each company were aggregated, would be a majority shareholder of each company;

(d) trustees of trusts are associated people if any person is a beneficiary common to the trusts (not including a public unit trust scheme);

(e) a private company and a trustee of a trust are associated people if a related body corporate of the company is a beneficiary of the trust (not including a public unit trust scheme).

(2) Also, a person (person A) is an associated person of another person (person B) if, under subsection (1)—

(a) person A is an associated person of another person (person C); and

(b) person B is also an associated person of person C.

Example

LMN Pty Ltd is the majority shareholder of XYZ Pty Ltd. John is a director of XYZ Pty Ltd. John is a related person, and hence an associated person, of XYZ Pty Ltd under s (1) (a). Under s (2), John is also an associated person of LMN Pty Ltd.

(3) In this section:

minority shareholder, in relation to a private company, means a shareholder of the company that is not a majority shareholder.

related body corporate—see the Corporations Act

, section 9.

related person means a person who is related to another person in accordance with any of the following:

(a) individuals are related people if—

(i) they are partners, or they have been partners and the partnership has ended (whether in Australia or elsewhere); or

(ii) the relationship between them is that of parent and child, brothers, sisters, or brother and sister;

(b) private companies are related people if they are related bodies corporate;

(c) an individual and a private company are related people if the individual is a majority shareholder or director of the company or of another private company that is a related body corporate of the company;

(d) an individual and a trustee of a trust are related people if the individual is a beneficiary of the trust (other than a public unit trust scheme);

(e) a private company and a trustee of a trust are related people if the company, or a majority shareholder or director of the company, is a beneficiary of the trust (other than a public unit trust scheme).

13 Definitions—pt 3.2

Section 78, definitions of associated person and landholder

omit

14 Section 79

substitute

79 Meaning of landholder

For this Act, a landholder is an entity that has a landholding in the ACT.

15 Meaning of landholding—pt 3.2

Section 80 (2) (b)

before

unit trust scheme

insert

private

16 New section 80 (5)

insert

(5) To remove any doubt, an agreement for the sale of land includes an agreement under which a Crown lease is granted to the purchaser.

17 Section 81

substitute

81 Constructive ownership of landholdings—linked bodies

(1) For this part, an entity is taken to hold an interest in land held by a linked body of the entity (a deemed interest) if, on the winding-up of all linked bodies of the entity—

(a) the entity would be entitled to a distribution of any of the property held by any of the linked bodies; and

(b) either or both of the following apply:

(i) any linked body would be entitled to receive at least 50% of the unencumbered value of all the property held by any other linked body;

(ii) if the unencumbered value of all the property held by each linked body were aggregated, the entity would be entitled to receive at least 50% of the aggregated unencumbered value.

(2) An entity’s deemed interest in land is in addition to any interest in land that the entity holds in its own right.

(3) In working out duty payable under this part, the value of an entity’s deemed interest in land held by a linked body is the portion of the unencumbered value of the property held by the linked body to which the entity would be entitled to receive on the winding-up of all linked bodies of the entity.

(4) In working out the value of property held by a body that an entity or linked body is entitled to receive, any liabilities of the first body must be disregarded.

(5) In this section:

body

(a) includes—

(i) an entity; and

(ii) a partnership; and

(iii) a trust; but

(b) does not include—

(i) a discretionary trust; or

(ii) an individual; or

(iii) a listed company; or

(iv) a public unit trust scheme.

entitled—an entity or linked body that is a trust or partnership is taken to be entitled to receive property if—

(a) for a trust—a trustee of the trust is entitled to receive the property as a trustee; and

(b) for a partnership—a partner in the partnership is entitled to receive the property as a partner.

linked—a body is linked to another body if, on the winding-up of the first body, the other body would be entitled to receive the first body’s property (disregarding any liabilities of the first body).

linked body, of an entity, means a body which is part of a chain of bodies—

(a) that includes the entity; and

(b) in which each body is linked to the next body in the chain.

winding-up, of a linked body, means—

(a) any process in which any property held by the body is distributed; and

(b) if the linked body is a trust—the vesting of the trust’s property in its beneficiaries.

Note For working out the entitlement of a person to participate in a distribution of the property of a landholder, see s 92 (Maximisation of entitlements on distribution of property).

18 Meaning of associated person—pt 3.2

Section 83A

omit

19 What is a relevant acquisition?—pt 3.2

Section 86 (1) and note

substitute

(1) For this part, a person makes a relevant acquisition if—

(a) the person acquires an interest in a landholder that—

(i) is of itself a significant interest in the landholder; or

(ii) when aggregated with other interests in the landholder held by the person or an associated person, results in an aggregation that amounts to a significant interest in the landholder; or

(iii) when aggregated with other interests in the landholder acquired by the person or other people in an associated transaction, results in an aggregation that amounts to a significant interest in the landholder; or

(b) the person or an associated person—

(i) has an interest in a landholder mentioned in paragraph (a); and

(ii) acquires a further interest in the landholder.

Example—relevant acquisition—par (a) (ii) and (b)

Jason and Tom are brothers. On 1 January 2021, Jason acquires a 20% interest in a landholder. On 1 October 2021, Tom acquires a 40% interest in the landholder. Tom makes a relevant acquisition under s 86 (1) (a) (ii) as, when aggregated with Jason’s earlier interest, the total interest in the landholder is 60%.

On 1 June 2022, Jason acquires a further 20% interest in the landholder. Jason, as an associated person of Tom, makes a relevant acquisition under s 86 (1) (b).

20 Section 87

substitute

87 Acquisition statements

(1) If a person makes a relevant acquisition, the person must prepare a statement in relation to the relevant acquisition (an acquisition statement).

(2) However, subsection (1) does not apply to a relevant acquisition prescribed by regulation.

(3) The person must give the commissioner the acquisition statement not later than 90 days after the relevant acquisition is made.

(4) The acquisition statement must include the following:

(a) the name, address and any email address of the person who made the relevant acquisition;

(b) the day the person made the relevant acquisition;

(c) details of the interest in the landholder acquired by the person as part of the relevant acquisition;

(d) details of the total interest in the landholder held by the person and any associated person on the day the relevant acquisition is made;

(e) the unencumbered value of all landholdings in the ACT of the landholder on—

(i) the day the relevant acquisition is made; and

(ii) if available—the day any other interest in the landholder is acquired within the relevant period for the relevant acquisition;

(f) any valuation report or other evidence of the unencumbered value of all landholdings in the ACT of the landholder on a day mentioned in paragraph (e);

(g) details of any amount of duty paid under this Act in relation to any other acquisition mentioned in paragraph (e) (ii);

(h) the unencumbered value of the property of the landholder on the day the person made the relevant acquisition;

(i) if the person is applying for an exemption from paying duty in relation to the relevant acquisition—evidence of the person’s eligibility for the exemption;

(j) anything else required by the commissioner.

(5) In this section:

valuation report—see section 90C (4).

21 Sections 89 and 90

substitute

89 Who is liable to pay duty on relevant acquisition?

(1) Duty payable for a relevant acquisition is jointly and severally payable by—

(a) the person who made the relevant acquisition; and

(b) the landholder in which the interest is acquired by the making of the relevant acquisition; and

(c) if the relevant acquisition is made because of an aggregation of interests under section 86 (1) (a) (ii)—each person whose interest is included in the aggregation; and

(d) if the relevant acquisition is made under section 86 (1) (b)—each person who has an interest mentioned in that provision.

(2) In this section:

landholder, for a private unit trust scheme, includes a trustee of the scheme.

90 Duty payable on relevant acquisitions—single interest

(1) This section applies if—

(a) a person acquires an interest in a landholder; and

(b) the person makes a relevant acquisition under section 86 (1) (a) (i) because the interest is a significant interest in the landholder; and

(c) within the relevant period for the relevant acquisition, no other interests in the landholder were acquired by—

(i) the person; or

(ii) an associated person; or

(iii) any other person in an associated transaction.

(2) The amount of duty payable in relation to the relevant acquisition is the amount worked out in accordance with the following steps:

(a) work out the amount (the dutiable amount) as follows:

db_6695600.jpg

(b) multiply the dutiable amount by the relevant rate.

(3) In this section:

relevant interest, for a relevant acquisition, means the interest in a landholder acquired by a person through the relevant acquisition expressed as a percentage of the total interest in the landholder.

relevant rate, for a relevant acquisition, means the determined rate in force on the day the relevant acquisition is made.

UVL, for a landholder in relation to a relevant acquisition, means the unencumbered value of all landholdings in the ACT of the landholder on the day the relevant acquisition is made.

Note Other provisions may apply in working out duty payable under this section (see div 3.2.4).

90A Duty payable on relevant acquisitions—aggregated interests

(1) This section applies if—

(a) a person acquires an interest in a landholder; and

(b) when the interest is aggregated with at least 1 other interest in the landholder, the person makes a relevant acquisition under section 86 (1) (a) (ii) or (iii).

(2) The amount of duty payable in relation to the relevant acquisition is the amount worked out in accordance with the following steps:

(a) work out the amount as follows:

db_6695600.jpg

(b) for each other interest in the landholder acquired within the relevant period for the relevant acquisition (another acquisition)—work out the amount as follows:

db_6695601.jpg

(c) work out the amount (the dutiable amount) by adding together the amounts worked out under paragraphs (a) and (b);

(d) multiply the dutiable amount by the relevant rate;

(e) subtract any duty paid or payable under this division in relation to each other acquisition from the amount worked out under paragraph (d).

(3) To remove any doubt, if another acquisition is made on the same day as a relevant acquisition, the other acquisition is made within the relevant period for the relevant acquisition, regardless of the time on the day at which the other acquisition is made.

(4) In working out the dutiable amount, the commissioner may decide not to include an interest of an associated person as another acquisition under subsection (2) (b) if the commissioner is satisfied that the associated person acquired their interest independently and for no common purpose.

(5) In this section:

other interest, for another acquisition, means the interest in a landholder acquired by a person in the other acquisition expressed as a percentage of the total interest in the landholder.

relevant interest, for a relevant acquisition—see section 90 (3).

relevant rate—see section 90 (3).

unencumbered value determination, in relation to another acquisition—see section 90C (2).

UVL, for a landholder, means the unencumbered value of all landholdings in the ACT of the landholder—

(a) for a relevant acquisition—on the day the relevant acquisition is made; or

(b) for another acquisition—

(i) on the day the relevant acquisition is made; or

(ii) if the commissioner makes an unencumbered value determination in relation to the other acquisition—on the day the other acquisition is made.

Note Other provisions may apply in working out duty payable under this section (see div 3.2.4).

90B Duty payable on relevant acquisitions—further interest

(1) This section applies if—

(a) a person makes a relevant acquisition under section 86 (1) (a) by acquiring an interest in a landholder (the initial acquisition); and

(b) the person or an associated person makes a relevant acquisition under section 86 (1) (b) because the person or an associated person acquires a further interest in the landholder (the further acquisition).

(2) The amount of duty payable in relation to the further acquisition is—

(a) if the initial acquisition is made within the relevant period for the further acquisition—the amount worked out in accordance with the following steps:

(i) work out the dutiable amount for the initial acquisition under—

(A) if the initial acquisition is an acquisition mentioned in section 86 (1) (a) (i)—section 90 (2) (a); or

(B) if the initial acquisition is an acquisition mentioned in section 86 (1) (a) (ii) or (iii)—section 90A (2) (a) to (c);

Note In working out the dutiable amount under s 90A, the commissioner may decide not to include an interest of an associated person if satisfied that the associated person acquired their interest independently and for no common purpose (see s 90A (4)).

(ii) work out the amount as follows:

db_6695602.jpg

(iii) add together the amounts worked out under subparagraphs (i) and (ii);

(iv) multiply the amount worked out under subparagraph (iii) by the relevant rate;

(v) subtract any duty paid or payable under this division in relation to the initial acquisition from the amount worked out under subparagraph (iv); or

(b) if the initial acquisition is not made within the relevant period for the further acquisition—the amount worked out in accordance with the following steps:

(i) work out the amount as follows:

db_6695603.jpg

(ii) multiply the amount worked out under subparagraph (i) by the relevant rate.

(3) In this section:

further interest, for a further acquisition, means the interest in a landholder acquired by a person in the further acquisition expressed as a percentage of the total interest in the landholder.

relevant rate, for a further acquisition, means the determined rate as in force on the day the further acquisition is made.

UVL, for a landholder in relation to a further acquisition, means the unencumbered value of all landholdings in the ACT of the landholder on the day the further acquisition is made.

Note Other provisions may apply in working out duty payable under this section (see div 3.2.4).

90C Unencumbered value determination

(1) This section applies in relation to working out the duty payable for a relevant acquisition under section 90A in relation to an interest in a landholder.

Note This section may also apply in relation to working out the amount of duty payable in relation to a further acquisition under s 90B if s 90B (2) (a) (i) (B) applies.

(2) The commissioner may determine, in writing, the unencumbered value of all landholdings in the ACT of the landholder on the day another acquisition is made (an unencumbered value determination).

(3) The commissioner may make an unencumbered value determination only if the commissioner is satisfied that the unencumbered value of all landholdings in the ACT of the landholder on the day the other acquisition is made is supported by—

(a) a valuation report prepared by an accredited valuer not more than 12 months after the day the other acquisition is made; or

(b) any other evidence.

(4) In this section:

accredited valuer—see the Planning and Development Act 2007

, dictionary.

another acquisition—see section 90A (2) (b).

valuation report, in relation to an interest in a landholder, means a document setting out the unencumbered value of landholdings in the ACT of the landholder on a stated day.

22 Valuation of property

Section 93 (1)

omit

an acquisition statement

substitute

a relevant acquisition

23 Section 93 (1)

before

value of landholdings

insert

unencumbered

24 Section 93 (2)

omit

dutiable value of dutiable landholdings

substitute

unencumbered value of landholdings

25 Section 93 (2)

omit

dutiable value of the landholdings

substitute

unencumbered value of the landholdings

26 Section 94

substitute

94 Uncompleted agreements for sale or conveyance of land

(1) This section applies if—

(a) a person acquires an interest in a landholder; and

(b) the person makes a relevant acquisition; and

(c) at the time the relevant acquisition was made, either—

(i) both of the following apply:

(A) the landholder was the vendor under an uncompleted agreement for the sale or conveyance of land;

(B) the commissioner is satisfied that the agreement is subsequently completed; or

(ii) both of the following apply:

(A) the landholder was the purchaser under an uncompleted agreement for the sale or conveyance of land;

(B) the commissioner is satisfied that the agreement is subsequently rescinded or terminated.

(2) The commissioner must assess or reassess the duty payable in relation to the relevant acquisition as though the land the subject of the agreement was not, at the time the acquisition was made, a landholding of the landholder.

(3) In this section:

landholder includes a linked body of the landholder.

linked body—see section 81 (5).

27 Duty concession—acquisitions securing financial accommodation

Section 95 (1) (a)

substitute

(a) a person—

(i) acquires an interest in a landholder; and

(ii) makes a relevant acquisition; and

(iii) tells the commissioner that the acquisition is made for the purpose of securing financial accommodation; and

28 Section 95 (2)

omit

the statement so far as it relates to the acquisition

substitute

the relevant acquisition

29 Section 95 (3)

omit

the statement

substitute

the relevant acquisition

30 When does liability for duty arise?

Section 103 (2)

substitute

(2) This subsection applies to an allotment of shares by a territory company that is a private company—

(a) at another person’s direction; and

(b) in discharge of an obligation to the other person, whether the obligation arises as consideration for the purchase of property by the company or otherwise.

31 Exemptions—ch 3 transactions

Part 3.7 heading, new note

insert

Note The exemptions from duty provided under this part are in addition to the exemptions under ch 11 (General exemptions from duty).

32 Exemption for relevant acquisitions

Section 115J (1)

omit

to which section 87 (Acquisition statements) applies

33 Exemptions

Part 9.2 heading, new note

insert

Note The exemptions from duty provided under this part are in addition to the exemptions under ch 11 (General exemptions from duty).

34 General exemptions from duty

Chapter 11 heading, new note

insert

Note The exemptions from duty provided under this chapter are in addition to the exemptions under the following provisions:

(a) pt 2.5 (Exemptions);

(b) pt 3.7 (Exemptions—ch 3 transactions);

(c) pt 9.2 (Exemptions).

35 Objections

Section 252 (f)

substitute

(f) under section 90A (4) including an interest of an associated person as another acquisition under section 90A (2) (b) in working out the dutiable amount; or

36 Dictionary, definitions of acquisition statement and associated person

substitute

acquisition statement, for chapter 3 (Certain transactions treated as transfers)—see section 87 (1).

associated person—see section 77A.

37 Dictionary, definition of Australian Stock Exchange

omit

38 Dictionary, new definition of Australian Securities Exchange

insert

Australian Securities Exchange means ASX Limited ACN 008 624 691.

39 Dictionary, definitions of chapter 3 transaction and complying superannuation fund

substitute

chapter 3 transaction—see section 76.

complying superannuation fund

(a) means an entity that is—

(i) a complying superannuation fund under the Superannuation Industry (Supervision) Act 1993

(Cwlth), section 42 or section 42A; or

(ii) an exempt public sector superannuation scheme under the Superannuation Industry (Supervision) Act 1993

(Cwlth), section 10 (1); and

(b) includes—

(i) a complying approved deposit fund; and

(ii) an eligible rollover fund.

40 Dictionary, definition of landholder

substitute

landholder—see section 79.

41 Dictionary, new definition of listed company

insert

listed company means a company whose shares are quoted on any of the following exchanges:

(a) the Australian Securities Exchange;

(b) the London Stock Exchange;

(c) the New York Stock Exchange;

(d) the New Zealand Exchange;

(e) an exchange that is a member of the World Federation of Exchanges;

(f) an exchange prescribed by regulation.

42 Dictionary, definition of listed trust

substitute

listed trust means a unit trust scheme whose units are quoted on any of the following exchanges:

(a) the Australian Securities Exchange;

(b) the London Stock Exchange;

(c) the New York Stock Exchange;

(d) the New Zealand Exchange;

(e) a stock exchange that is a member of the World Federation of Exchanges;

(f) an exchange prescribed by regulation.

43 Dictionary, definition of private company

substitute

private company means a company that is not a listed company.

44 Dictionary, definitions of related body corporate and related person

omit

45 Dictionary, definition of trustee, paragraphs (e) and (f)

omit

a marketable security

substitute

an interest in a landholder

Part 3 Land Tax Act 2004

46 Land partly owned by corporation or trustee

Section 16 (1) (b) (i)

substitute

(i) section 10 (Land exempted from s 9 generally), other than section 10 (1) (a) (viii); or

47 Section 16 (4)

omit

In subsection (2)

substitute

In this section

48 Payment of land tax

Section 17 (3)

omit

section 56H (7) (Tax payable is charge on land)

substitute

section 56H (8)

49 Imposition of foreign ownership surcharge

Section 17E (2) (a)

substitute

(a) section 10 (Land exempted from s 9 generally), other than section 10 (1) (a) (vii); or

50 Unit subdivisions—land tax

Section 27 (5) (b) (i)

substitute

(i) section 10 (Land exempted from s 9 generally), other than section 10 (1) (a) (viii); or

Schedule 1 Consequential amendments

Part 1.1 Civil Law (Sale of Residential Property) Act 2003

(see s 3)

[1.1] Section 3, note 1

substitute

Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere.

For example, the signpost definition ‘units plan—see the Unit Titles Act 2001

, section 7.’ means that the term ‘units plan’ is defined in that section and the definition applies to this Act.

[1.2] Section 6 (4), new definition of related person

insert

related person—see the Duties Act 1999

, section 77A (3).

[1.3] Dictionary, definition of related person

omit

Part 1.2 Land Tax Act 2004

[1.4] Dictionary, definition of associated person

substitute

associated person—see the Duties Act 1999

, section 77A.

Endnotes

1 Presentation speech

Presentation speech made in the Legislative Assembly on 1 December 2022.

2 Notification

Notified under the Legislation Act

on 2022.

3 Republications of amended laws

For the latest republication of amended laws, see www.legislation.act.gov.au

.













































© Australian Capital Territory 2022

 


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