duties and land tax acts (amendment) act 2005 of victoria 551367b.i1-25/10/2005 bill la introduction...

PARLIAMENT OF VICTORIA

551367B.I1-25/10/2005 BILL LA INTRODUCTION 25/10/2005 i

Duties and Land Tax Acts (Amendment) Act 2005 Act No.

TABLE OF PROVISIONS

Clause Page

PART 1—PRELIMINARY 1

1. Purpose 1 2. Commencement 2

PART 2—DUTIES ACT 2000 3

3. Definitions 3 4. New section 55 inserted 6

55. Equity release programs 6 5. Land-rich provisions—landholders 9 6. Land-rich provisions—acquisitions of interests in landholders 10 7. Land-rich provisions—agreements for sale, transfer or

purchase of land and other property 11 8. Disqualifying circumstances for certain unit trust schemes 12 9. Sale of private unit trust scheme through conversion to public

unit trust scheme 13 10. Registration of unit trust schemes 13 11. New section 217 substituted 15

217. When does duty become payable? 15 12. Motor vehicle duty—consequential amendments 16 13. New section 233 substituted and sections 233A to 233H

inserted 17 233. Primary producer vehicles 17 233A. Transport for disabled, handicapped or injured 20 233B. Incapacitated person's vehicle 20 233C. Private vehicle used to convey incapacitated person 21 233D. Government or charitable vehicle used to convey

incapacitated person 21 233E. Incapacitated war veteran's vehicle 22 233F. Fire fighting and emergency response vehicle 23 233G. Consular vehicle 23 233H. Repossessions and restorations 24

14. Motor vehicle duty—further consequential amendments 25

Clause Page

ii 551367B.I1-25/10/2005 BILL LA INTRODUCTION 25/10/2005

15. Valuation of property 25 16. Transitional 26

22. Duties and Land Tax Acts (Amendment) Act 2005 26 17. Statute law revision 26

PART 3—LAND TAX ACT 1958 27

18. Definitions 27 19. Assessment and liability of joint owners 33 20. New sections 51 and 52 substituted and sections 52A to 52J

inserted 34 51. General land tax surcharge for trusts 34 52. Land tax for fixed trust if beneficial interests notified

to Commissioner 35 52A. Land tax for unit trust scheme if unitholdings notified

to Commissioner 38 52B. Land tax for beneficiary/trustees 41 52C. Land tax for excluded trusts 43 52D. Nomination of beneficiary of pre-2006 discretionary

trust for land tax purposes 43 52E. Land tax for discretionary trust with nominated

beneficiary 46 52F. Nomination of PPR beneficiary of unit trust scheme

or discretionary trust for land tax purposes 48 52G. Land tax for PPR land if nominated PPR beneficiary 49 52H. Trustee's right of reimbursement 50 52I. All trustees to notify Commissioner by 31 December

2005 50 52J. Ongoing requirements for trustees to notify

Commissioner 50 21. Land tax rates for trusts 52

10. Land tax for trusts for 2006 52 11. Land tax for trusts for 2007 53 12. Land tax for trusts for 2008 and subsequent years 54

PART 4—LAND TAX ACT 2005 56

22. Definitions 56 23. New section 18 substituted 62

18. Holders of beneficial interests 62 24. Rate of land tax 62 25. Assessment and liability of joint owners 62 26. Assessment of trustees 62

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iii 551367B.I1-25/10/2005 BILL LA INTRODUCTION 25/10/2005

27. New Division 2A inserted in Part 3 63 Division 2A—Land Held on Trust 63 46A. General land tax surcharge for trusts 63 46B. Land tax for fixed trust if beneficial interests notified

to Commissioner 64 46C. Land tax for unit trust scheme if unitholdings notified

to Commissioner 67 46D. Land tax for beneficiary/trustees 70 46E. Land tax for excluded trusts 72 46F. Nomination of beneficiary of pre-2006 discretionary

trust for land tax purposes 72 46G. Land tax for discretionary trust with nominated

beneficiary 75 46H. Nomination of PPR beneficiary of unit trust scheme

or discretionary trust for land tax purposes 76 46I. Land tax for PPR land if nominated PPR beneficiary 78 46J. Trustee's right of reimbursement 78 46K. Requirements for trustees to notify Commissioner 79

28. Consequential amendments 80 29. Public statutory authority and municipal and public land

exemptions 81 30. Land tax surcharge rates for trusts 82 31. Transitional provisions 85

8. Trusts 85 9. Amnesty for failing to lodge certain documents 85 10. Continuation of Orders 85

═══════════════

ENDNOTES 87

PARLIAMENT OF VICTORIA

551367B.I1-25/10/2005 BILL LA INTRODUCTION 25/10/2005 1

to amend the Duties Act 2000, the Land Tax Act 1958 and the Land Tax Act 2005 and for other purposes.

Duties and Land Tax Acts

(Amendment) Act 2005

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose The purpose of this Act is—

(a) to amend the Duties Act 2000 to—

(i) provide a duty exemption for equity 5 release programs;

(ii) amend the land rich duty provisions;

A BILL

Part 1—Preliminary


2 551367B.I1-25/10/2005 BILL LA INTRODUCTION 25/10/2005

(iii) amend the motor vehicle duty provisions;

(b) to amend the Land Tax Act 1958 and the Land Tax Act 2005 to introduce a new regime for imposing land tax on land held on 5 trust;

(c) to make minor technical amendments to the Land Tax Act 2005.

2. Commencement (1) This Act (except section 4 and Part 4) comes into 10

operation on the day after the day on which it receives the Royal Assent.

(2) Section 4 is deemed to have come into operation on 15 June 2005.

(3) Part 4 comes into operation on 1 January 2006. 15

__________________

s. 2

Part 2—Duties Act 2000



PART 2—DUTIES ACT 2000

3. Definitions (1) In section 3(1) of the Duties Act 2000—

(a) insert the following definition—

' "National Schedule" means the Schedule 5 to the Road Transport Charges (Australian Capital Territory) Act 1993 of the Commonwealth;';

(b) for the definition of "listed trust" substitute— 10

' "listed trust" means—

(a) a unit trust scheme all the units in which are quoted on the Australian Stock Exchange; or

(b) a unit trust scheme— 15

(i) all the units in which are quoted on any exchange of the World Federation of Exchanges (other than the Australian Stock Exchange); 20 and

(ii) that is declared by the Commissioner under sub-section (4)(a) to be a listed trust;'; 25

(c) for the definition of "MRC" substitute—

' "MRC" (Mass Rating for Charging) has the same meaning as in the National Schedule;';

See: Act No. 79/2000. Reprint No. 4 as at 1 March 2005 and amending Act No. 36/2005. LawToday: www.dms. dpc.vic. gov.au

s. 3




(d) for the definition of "private company" substitute—

' "private company" means—

(a) a corporation that is not limited by shares; or 5

(b) a corporation that is not listed and whose shares are not quoted on the Australian Stock Exchange or any exchange of the World Federation of Exchanges; or 10

(c) a corporation declared by the Commissioner under sub-section (4)(b) to be a private company;';

(e) in the definition of "widely held trust", for paragraphs (b) and (c) substitute— 15

"(b) that has not less than 300 registered unitholders; and

(c) in which units have been offered to the public under a prospectus or product disclosure statement lodged with the 20 Australian Securities and Investments Commission; and

(d) none of the registered unitholders in which, either individually or together with associated persons, holds or is 25 entitled to more than 20% of the units in the scheme.".

s. 3




(2) After section 3(3) of the Duties Act 2000 insert—

'(4) The Commissioner, by instrument, may—

(a) declare that a unit trust scheme all the units in which are quoted on any 5 exchange of the World Federation of Exchanges (other than the Australian Stock Exchange) is a listed trust for the purposes of this Act if the Commissioner is satisfied that the 10 listing of the unit trust scheme was not for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under Part 2 of 15 Chapter 3;

(b) declare that a corporation is a private company for the purposes of this Act if the Commissioner is satisfied that the listing of the corporation was for the 20 purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under Part 2 of Chapter 3.

(5) For the purposes of the definition of "widely 25 held trust" in sub-section (1), if a registered unitholder holds units as a trustee of a number of different trusts, the unitholder is taken to be a separate registered unitholder in relation to each trust and the units held are 30 taken to be separate unitholdings, except where the beneficiaries of the trusts are the same or associated persons.'.

s. 3




4. New section 55 inserted After section 54 of the Duties Act 2000 insert—

'55. Equity release programs (1) No duty is chargeable under this Chapter in

respect of a transaction if, on application, the 5 Commissioner is satisfied that it is a transaction taking place on or after 15 June 2005 under an equity release program that results in a change in beneficial ownership of dutiable property, being— 10

(a) the acquisition of a beneficial interest in the property by the financial institution as a result of the execution of the sale contract and payment of the amount payable by the financial institution to 15 the homeowner on the day the sale contract is executed or within 5 business days afterwards; or

(b) the extinction of the beneficial interest, or part of the beneficial interest, in the 20 property referred to in paragraph (a).

(2) An application for an exemption under this section—

(a) must be in the approved form; and

(b) must be accompanied by a copy of the 25 sale contract.

(3) The Commissioner may require further information for the purposes of this section.

s. 4




(4) In this section—

"equity release program" means an arrangement between a financial institution and a homeowner in accordance with which the financial 5 institution and the homeowner enter into a contract of sale of land occupied as the homeowner's principal place of residence ("the sale contract"), under which— 10

(a) the financial institution purchases a part interest in the land; and

(b) the financial institution pays the homeowner an amount for that interest on the day that the sale 15 contract is executed or within 5 business days afterwards; and

(c) subject to paragraph (d), the homeowner retains legal title to the whole of the land and the land 20 is not mortgaged after the sale contract has come into existence; and

(d) the sale contract may be terminated only in one of the 25 following ways—

(i) by the homeowner paying an amount to the financial institution; or

(ii) if the homeowner vacates the 30 land, by the financial institution requiring the homeowner to pay an amount to the financial institution and the 35

s. 4




homeowner paying that amount; or

(iii) by the homeowner selling the property to a third party and paying an amount to the 5 financial institution on the completion of that sale; or

(iv) if the homeowner (or, if there is more than one, the surviving homeowner) dies, 10 by the land being sold to a third party and an amount being paid to the financial institution on the completion of that sale; and 15

(e) the homeowner is not required to make any payments to the financial institution during the life of the sale contract in any form that in substance reflects interest; 20

"financial institution" means—

(a) a financial institution within the meaning of section 3(1); or

(b) a friendly society;

"homeowner" means a person of or over 25 pension age who, immediately before entering into the sale contract, holds an estate in fee simple in the whole of the land that is occupied by the person as his or her principal place of residence 30 and whose estate is not subject to any mortgage;

s. 4




"pension age" has the same meaning as in paragraph (b) of the definition of "pension age" in section 23(1) of the Social Security Act 1991 of the Commonwealth. 5

(5) Two or more persons together are homeowners if each of them satisfies the definition of "homeowner" in sub-section (4).'.

5. Land-rich provisions—landholders 10

(1) In section 71(3) of the Duties Act 2000—

(a) in paragraph (g), after "74(5))" insert ", including any debt existing between the landholder and a linked entity to the extent of the percentage of the interest the 15 landholder holds in the linked entity";

(b) in paragraph (i), for "prescribed property" substitute "any property of a kind prescribed by the regulations".

(2) For section 73(1) of the Duties Act 2000 20 substitute—

"(1) For the purposes of this Part, the vendor and purchaser under an uncompleted agreement for the sale of land are taken to be separately entitled to the whole of the land.". 25


"(3) For the purposes of this Part—

(a) a reference to a vendor includes a reference to a person who, at the time 30 of a relevant acquisition, was the grantee of a put option or grantor of a call option;

s. 5




(b) a reference to a purchaser includes a reference to a person who, at the time of a relevant acquisition—

(i) held a transfer right (within the meaning of Part 4A of Chapter 2); 5 or

(ii) was the grantor of a put option or grantee of a call option;

(c) a reference to an uncompleted agreement includes a reference to an 10 arrangement that includes both a put option and a call option.".

6. Land-rich provisions—acquisitions of interests in landholders

(1) In section 76(1) of the Duties Act 2000 omit 15 "or otherwise".


"(2A) In addition to sub-section (1), a person who holds an interest in a land rich landholder 20 acquires an interest in the landholder if the capacity in which the person holds the interest changes.

(2B) Without limiting sub-section (2A), a person who has a beneficial interest in a land rich 25 landholder and who declares a trust over that interest is taken, by that declaration of trust, to have acquired an interest in the landholder.

s. 6




(2C) For the purposes of section 79, an acquisition of an interest referred to in sub-section (2A) or (2B) is to be treated as a separate acquisition from existing interests held by the acquirer or any other acquisition of an 5 interest in a land rich landholder unless those acquisitions are made on behalf of the same person or associated persons.".

(3) In section 79(1)(a)(iii) of the Duties Act 2000, after "acquired by the person" insert "as set out in 10 sub-paragraph (ii)".


"(3A) For the purposes of this Part, persons in their capacity as qualifying investors of a 15 wholesale unit trust scheme are taken not to be associated persons of other qualifying investors in relation to the scheme.".

(5) in section 79(6) of the Duties Act 2000, for "outcome or decisions" substitute "outcome of 20 decisions".

(6) In section 83(2)(a) of the Duties Act 2000, after "section 79(1)(a)" insert "and (b)".

7. Land-rich provisions—agreements for sale, transfer or purchase of land and other property 25

After section 88(5) of the Duties Act 2000 insert—

"(6) For the purposes of this section—

(a) a reference to a vendor includes a reference to a person who, at the time 30 of a relevant acquisition, was the grantee of a put option or grantor of a call option;

s. 7




(b) a reference to a purchaser includes a reference to a person who, at the time of a relevant acquisition—

(i) held a transfer right (within the meaning of Part 4A of Chapter 2); 5 or

(ii) was the grantor of a put option or grantee of a call option;

(c) a reference to an uncompleted agreement includes a reference to an 10 arrangement that includes both a put option and a call option.".

8. Disqualifying circumstances for certain unit trust schemes

For section 89B(1) of the Duties Act 2000 15 substitute—

'(1) In this section, "disqualifying circumstance" means—

(a) a circumstance that causes a unit trust scheme that is registered under 20 Division 7 to cease to meet the relevant criteria for registration; or

(b) subject to sub-section (1A), the failure by a unit trust scheme that is registered under Division 7 to meet a condition of 25 registration, or the contravention of a condition of registration by a unit trust scheme or the trustee of the scheme.

(1A) A failure or contravention referred to in sub-section (1)(b) is not a disqualifying 30 circumstance if the Commissioner so determines, being satisfied that the application of this section to the unit trust scheme in the particular case would not be just or reasonable.'. 35

s. 8




9. Sale of private unit trust scheme through conversion to public unit trust scheme

For section 89C(1)(b)(i) of the Duties Act 2000 substitute—

"(i) a payment is made to or on behalf of a 5 person who, or persons who together, held units representing an interest of at least 20% in the private unit trust scheme immediately before the agreement or arrangement was made; or". 10

10. Registration of unit trust schemes (1) In section 89K(1) of the Duties Act 2000—

(a) in the definition of "qualified investor", after paragraph (g) insert—

"(ga) as custodian or trustee for an investor 15 directed portfolio service, within the meaning of the relevant ASIC policy statement, if the custodian or trustee holds its interest in the unit trust scheme for not less than 300 clients as 20 investors through the service, none of whom (individually or together with any associated person) is beneficially entitled to more than 20% of the units held by the custodian or trustee in the 25 unit trust scheme;";

(b) in the definition of "qualified investor", in paragraph (h), for "sub-section (3)." substitute "sub-section (3);";

s. 9




(c) after the definition of "qualified investor" insert—

' "relevant ASIC policy statement" means the policy statement "PS 148: Investor Directed Portfolio Services" published 5 by the Australian Securities and Investments Commission, or any other policy statement published by that Commission that the Commissioner from time to time approves for the 10 purposes of this Division.'.

(2) For section 89K(3) of the Duties Act 2000 substitute—

'(3) The Commissioner may approve a capacity to be a capacity for the purposes of 15 paragraph (h) of the definition of "qualified investor" in sub-section (1) if satisfied that—

(a) the capacity corresponds to a capacity referred to in paragraph (a), (b), (c), (d), (e) or (f) of that definition under the 20 law of an external Territory or of a country outside Australia; or

(b) the capacity is as a wholly owned subsidiary (within the meaning of the Corporations Act) of a person in a 25 capacity referred to in paragraph (a).'.

(3) After section 89N(2) of the Duties Act 2000 insert—

"(3) The Commissioner may impose any conditions he or she considers appropriate on 30 the registration of a unit trust scheme as a declared public unit trust scheme.".

s. 10




(4) After section 89PA(2) of the Duties Act 2000 insert—

"(3) The Commissioner may impose any conditions he or she considers appropriate on the registration of a unit trust scheme as a 5 declared wholesale unit trust scheme.".

11. New section 217 substituted For section 217 of the Duties Act 2000 substitute—

"217. When does duty become payable? 10

(1) Duty becomes payable on the lodging of the application for registration or transfer of registration of the motor vehicle.

Note: Currently regulations 212 and 230 of the Road Safety (Vehicles) Regulations 1999 contain the 15 requirements for lodgement of applications for registration or transfer of registration of a motor vehicle.

(2) If an application for transfer of registration of a motor vehicle is not lodged within the 20 time required by law, penalty tax and interest are payable under the Taxation Administration Act 1997 on any duty payable on the application as if the duty had been payable at the time the application was 25 required to be lodged.

(3) In addition to sub-section (2), if an application for transfer of registration of a motor vehicle is not lodged within the time required by law, the person required to lodge 30 the application is liable to a further penalty of—

s. 11




(a) an amount equal to the amount of duty payable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was required to be lodged; 5 or

(b) $25—

whichever is the greater.

(4) If an application for transfer of registration of a motor vehicle is lodged within the time 10 required by law but duty on the application is not paid on or before the lodging of the application, the person required to lodge the application is liable to a penalty of—

(a) an amount equal to the amount of duty 15 payable on the application and interest on that amount at the rate of 20% per annum from the day on which the application was lodged; or

(b) $25— 20

whichever is the greater.

(5) The penalty imposed by sub-section (4) is in addition to any penalty tax and interest payable under the Taxation Administration Act 1997. 25

(6) The Commissioner, in such circumstances as the Commissioner considers appropriate, may remit the penalty imposed by sub-section (3) or (4) by any amount.".

12. Motor vehicle duty—consequential amendments 30

In the Duties Act 2000—

(a) in section 217A(1) omit "making or";

(b) in sections 229 and 232, for "made" (wherever occurring) substitute "lodged".

s. 12




13. New section 233 substituted and sections 233A to 233H inserted

For section 233 of the Duties Act 2000 substitute—

'233. Primary producer vehicles 5

(1) No duty is chargeable under this Chapter on an application for registration or transfer of registration of a heavy trailer—

(a) registered or to be registered in the name of a primary producer; and 10

(b) used or to be used solely in the business of the registered operator as a primary producer.

(2) No duty is chargeable under this Chapter on an application for registration or transfer of 15 registration of a vehicle registered or to be registered in the name of a primary producer used or to be used solely in the business of the applicant for registration or the registered operator as a primary producer, being— 20

(a) a motor vehicle—

(i) so constructed that its engine is used to drive or operate an agricultural implement forming an integral part of the vehicle; and 25

(ii) the primary purpose of which is not to carry a load; or

(b) a tractor with an MRC of 4⋅5 tonnes or less; or

(c) a primary producer special vehicle. 30

s. 13




(3) No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle registered or to be registered in the name of a primary producer used or to be used for travelling within a 5 radius of 25 kilometres from the registered operator's residence or residential address for the purpose of working the land of another primary producer, being—

(a) a motor vehicle— 10

(i) so constructed that its engine is used to drive or operate an agricultural implement forming an integral part of the vehicle; and

(ii) the primary purpose of which is 15 not to carry a load; or

(b) a tractor with an MRC of 4⋅5 tonnes or less; or

(c) a primary producer special vehicle.

(4) No duty is chargeable under this Chapter on 20 an application for registration or transfer of registration of a Special Purpose Vehicle (type 2) as defined in Part 2 of the National Schedule that is—

(a) conditionally registered or to be 25 registered in the name of a primary producer to operate on a highway at any distance from the registered operator's residence or residential address; and 30

(b) used or to be used solely in the business of the registered operator as a primary producer.

s. 13





"agricultural implement" means a vehicle without its own motive power, built to perform agricultural tasks;

"load", in relation to a vehicle, includes 5 anything that is normally removed from the vehicle when not in use;

"primary producer" means a person—

(a) engaged solely or substantially in agricultural, horticultural, 10 viticultural, dairying, pastoral or other like pursuits; or

(b) who is a commercial fisherman the holder of a licence to take fish for sale; 15

"primary producer special vehicle" means a vehicle that—

(a) is steered by means of a handle bar; and

(b) is designed for the carriage of not 20 more than 1 person; and

(c) has 3 or 4 wheels; and

(d) has a width not exceeding 1⋅15 metres; and

(e) has a tare mass not exceeding 25 210 kilograms;

"residential address", in relation to a company or other body corporate, means its registered office or any place recorded in the register as its residential 30 address or business address.

s. 13




233A. Transport for disabled, handicapped or injured No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle that— 5

(a) is registered or to be registered in the name of St John's Ambulance Australia (Victoria) Inc and is used for the transport of the disabled, handicapped or injured; or 10

(b) is registered or to be registered in, and marked with, the name of a corporate or unincorporated body established for a public purpose and not for private gain and is only used for the conveyance of 15 disabled or handicapped people for training, education or employment.

233B. Incapacitated person's vehicle No duty is chargeable under this Chapter on an application for registration or transfer of 20 registration of a vehicle registered or to be registered in the name of an incapacitated person if—

(a) the vehicle is designed solely for the conveyance of one incapacitated 25 person; and

(b) the person's mobility is seriously impaired; and

(c) the vehicle will not be used to convey any other person. 30

s. 13




233C. Private vehicle used to convey incapacitated person

(1) No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle referred to in sub-5 section (2) that is registered or to be registered in the name of—

(a) an incapacitated person; or

(b) the parent or legal guardian of an incapacitated person who is a minor. 10

(2) Sub-section (1) applies to a vehicle that—

(a) is specially converted to provide wheelchair access to and egress from the vehicle; and

(b) is capable of carrying at least one 15 occupied wheelchair; and

(c) is or is to be used for conveying an incapacitated person whose mobility is seriously impaired; and

(d) is not a taxi-cab within the meaning of 20 the Transport Act 1983.

233D. Government or charitable vehicle used to convey incapacitated person

(1) No duty is chargeable under this Chapter on an application for registration or transfer of 25 registration of a vehicle referred to in sub-section (2) that is registered or to be registered in the name of—

(a) a charitable, benevolent or religious institution; or 30

(b) the Crown; or

(c) a public statutory authority; or

(d) a municipal council.

s. 13




(2) Sub-section (1) applies to a vehicle that—

(a) is specially converted to provide wheelchair access to and egress from the vehicle; and

(b) is capable of carrying at least one 5 occupied wheelchair; and

(c) is or is to be used for conveying an incapacitated person whose mobility is seriously impaired; and

(d) is marked with the name of the 10 registered operator or, in the case of the Crown, with the name of the relevant department or agency; and

(e) is not a taxi-cab within the meaning of the Transport Act 1983. 15

233E. Incapacitated war veteran's vehicle No duty is chargeable under this Chapter on an application for registration or transfer of registration of a motor vehicle not used except for social, domestic or pleasure 20 purposes registered or to be registered in the name of a person who—

(a) is assessed pursuant to the Veterans' Entitlement Act 1986 of the Commonwealth— 25

(i) as a veteran to whom section 22 of that Act applies at the 100% or higher rate; or

(ii) as a veteran to whom section 23, 24, 25 or 104 of that Act applies; 30 and

s. 13




(b) operates no other vehicle currently registered without fee as an incapacitated war veteran's vehicle in accordance with regulations made under the Road Safety Act 1986. 5

233F. Fire fighting and emergency response vehicle No duty is chargeable under this Chapter on an application for registration or transfer of registration of a vehicle that— 10

(a) is owned by a State Emergency Service volunteer unit, a Country Fire Authority brigade or a municipal council; and

(b) is registered or to be registered in the name of a nominee on behalf of the unit 15 or brigade or in the name of a municipal council; and

(c) is certified by the State Emergency Service or the Country Fire Authority as a vehicle that is specifically 20 equipped for and exclusively used for combating outbreaks of fire or for emergency response.

233G. Consular vehicle

No duty is chargeable under this Chapter on 25 an application for registration or transfer of registration of a vehicle that is registered or to be registered in the name of a person who—

(a) holds a diplomatic post of the rank of 30 Consul-General, Consul or Vice Consul; or

s. 13




(b) is an Honorary Head of Post or a person employed in the administrative or technical service of a consulate-general, consulate, vice-consulate or consular agency who— 5

(i) is not an Australian citizen; and

(ii) is not holding the post of Trade Commissioner.

233H. Repossessions and restorations (1) No duty is chargeable under this Chapter on 10

an application for transfer of registration of a motor vehicle lodged by—

(a) a person who has taken or is taking possession of a motor vehicle from the registered operator under a security 15 interest held by the person; or

(b) a person who was formerly the registered operator of a motor vehicle and who has taken or is taking possession of the vehicle from another 20 person who holds or held a security interest in the vehicle.


"security interest", in relation to a motor vehicle, means an interest in, or a 25 power over, the vehicle that secures payment of a debt or other pecuniary obligation or the performance of any other obligation but does not include a possessory lien or pledge.'. 30

s. 13




14. Motor vehicle duty—further consequential amendments

In the Duties Act 2000—

(a) in sections 234A(1), 234B and 235(1) omit "made"; 5

(b) in section 235(2) for "made" (where first and secondly occurring) substitute "lodged";

(c) in sections 236 and 238(1), for "made" (wherever occurring) substitute "lodged";

(d) section 239 is repealed. 10

15. Valuation of property After section 273(3) of the Duties Act 2000 insert—

"(4) If a valuation of property covers more than one parcel of land, sub-section (3) applies in 15 relation to the valuation of each single parcel of land.

(5) Sub-section (4) does not apply if the valuation under sub-section (2) does not lead to an increase in the tax liability of the 20 taxpayer. Example

A taxpayer is liable to duty on the aggregate value of 3 parcels of land. The taxpayer provides a valuation of each parcel and a valuation is also obtained under 25 sub-section (2). If the valuation of any one of those parcels under sub-section (2) exceeds the valuation of that parcel provided by the taxpayer by 15% or more and the taxpayer does not object, or the valuation of that parcel as determined on objection, appeal or 30 review exceeds the taxpayer's valuation by 15% or more, the taxpayer must pay the cost of the valuation of that parcel, unless the valuation under sub-section (2) does not lead to an increase in the taxpayer's total liability for duty.". 35

s. 14




16. Transitional In Schedule 2 to the Duties Act 2000, after clause 21 insert—

'22. Duties and Land Tax Acts (Amendment) Act 2005

(1) This clause has effect for the purposes of the 5 definition of "listed trust" in section 3(1) of this Act.

(2) Despite the substitution of the definition by section 3(1)(b) of the Duties and Land Tax Acts (Amendment) Act 2005, a unit trust scheme that, immediately before the commencement of that 10 section 3(1)(b), was a listed trust for the purposes of this Act continues, on and after that commencement, to be a listed trust for the purposes of this Act while all its units continue to be quoted on the Australian Stock Exchange or any exchange of the World 15 Federation of Exchanges.'.

17. Statute law revision Section 285 of and Schedule 1 to the Duties Act 2000 are repealed.

__________________

s. 16

Part 3—Land Tax Act 1958



PART 3—LAND TAX ACT 1958

18. Definitions (1) In section 3(1) of the Land Tax Act 1958—

(a) insert the following definitions—

' "beneficiary" of a discretionary trust, 5 means a person, or a member of a class of persons, in whom, by the terms of the trust, the whole or any part of the trust property may be vested—

(a) in the event of the exercise of a 10 power or discretion in favour of the person (whether or not that power is presently exercisable); or

(b) in the event that a discretion conferred under the trust is not 15 exercised;

"child maintenance land" means land held on trust that was transferred to the trustee for the benefit of a beneficiary as the result of a family breakdown 20 within the meaning of section 102AGA of the Income Tax Assessment Act 1936 of the Commonwealth;

"Commonwealth Superannuation Act" means the Superannuation Industry 25 (Supervision) Act 1993 of the Commonwealth;

See: Act No. 6289. Reprint No. 13 as at 11 August 2005. LawToday: www.dms. dpc.vic. gov.au

s. 18




"concessional trust" means—

(a) a trust of which each beneficiary is—

(i) a person in respect of whom a guardianship order or an 5 administration order is in force under the Guardianship and Administration Act 1986; or 10

(ii) a person with a disability within the meaning of the Disability Services Act 1991; or

(b) a trust created under an order of 15 the Supreme Court for the benefit of a person under disability;

"discretionary trust" means a trust under which the vesting of the whole or any part of the trust property— 20

(a) is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or 25

(b) will occur in the event that a discretion conferred under the trust is not exercised—

but does not include an excluded trust, a fixed trust or a trust to which a unit 30 trust scheme relates;

s. 18




"excluded trust" means—

(a) a charitable trust;

(b) a concessional trust;

(c) a public unit trust scheme;

(d) a wholesale unit trust scheme; 5

(e) a trust the sole beneficiary or beneficiaries of which is or are—

(i) a club referred to in section 13; or

(ii) the members of such a club; 10

(f) a trust established by a will, but only during the period ending on the later of—

(i) the 3rd anniversary of the testator's death or the further 15 period approved by the Commissioner under sub-section (6); or

(ii) if, at the testator's death, all the potential beneficiaries are 20 minors—the 18th birthday of the first beneficiary to turn 18;

(g) a trust, for any tax year in relation to which it is a superannuation 25 trust;

"fixed trust" means a trust that is not an excluded trust, a discretionary trust or a trust to which a unit trust scheme relates; 30

"listed trust" has the same meaning as in the Duties Act 2000;

s. 18




"nominated beneficiary" of a discretionary trust, means a person nominated under section 52D;

"nominated PPR beneficiary" means a person nominated under section 52F; 5

"pre-2006 land", in relation to a trust, means land that was subject to that trust at midnight on 31 December 2005;

"post-2006 land", in relation to a trust, means land that became subject to that 10 trust on or after 1 January 2006;

"public unit trust scheme" means—

(a) a listed trust; or

(b) a widely held trust; or

(c) a registered imminent public unit 15 trust scheme or registered declared public unit trust scheme (within the meaning of the Duties Act 2000);

"superannuation trust" means, in relation 20 to a tax year—

(a) a trust established on or before 30 June in the year preceding the tax year that, in relation to the year of income ending in that 25 year, is—

(i) a complying superannuation fund (within the meaning of section 42 or 42A of the Commonwealth 30 Superannuation Act); or

s. 18




(ii) a complying approved deposit fund (within the meaning of section 43 of the Commonwealth Superannuation Act); or 5

(iii) a pooled superannuation trust (within the meaning of section 44 of the Commonwealth Superannuation Act); or 10

(b) a trust established after 30 June in the year preceding the tax year that, as at midnight on 31 December in that year, is—

(i) a regulated superannuation 15 fund (within the meaning of the Commonwealth Superannuation Act) or is taken to be a regulated superannuation fund under 20 that Act; or

(ii) an approved deposit fund (within the meaning of the Commonwealth Superannuation Act); or 25

(iii) a pooled superannuation trust (within the meaning of the Commonwealth Superannuation Act);

"trust" does not include an implied or a 30 constructive trust;

s. 18




"unit" in a unit trust scheme, means—

(a) a right or interest (whether described as a unit or a sub-unit or otherwise) of a beneficiary under the scheme; or 5

(b) a right to any such right or interest—

that entitles the beneficiary to participate proportionately with other unitholders in a distribution of the 10 property of the trust on its vesting;

"unit trust scheme" means an arrangement made for the purpose, or having the effect, of providing facilities for participation by a person, as a 15 beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust, but does not include an excluded trust; 20

"wholesale unit trust scheme" means a unit trust scheme that is registered under Division 7 of Part 2 of Chapter 3 of the Duties Act 2000 as a wholesale unit trust scheme, an imminent wholesale 25 unit trust scheme or a declared wholesale unit trust scheme;

"widely held trust" has the same meaning as that term would have in the Duties Act 2000 if a reference in paragraph (b) 30 of the definition of "widely held trust" in section 3(1) of that Act to "300 registered unitholders" were a reference to "50 registered unitholders";'; 35

s. 18




(b) the definition of "special trust" is repealed;

(c) in the definition of "trustee" omit "express or implied".

(2) After section 3(5A) of the Land Tax Act 1958 insert— 5

'(6) For the purposes of paragraph (f)(i) of the definition of "excluded trust" in sub-section (1), the Commissioner may approve a further period in any particular case.'.

(3) In section 13AA of the Land Tax Act 1958— 10

(a) in sub-section (1), the definitions of "discretionary trust" and "unit trust scheme" are repealed;

(b) sub-section (2) is repealed.

(4) After section 9(1C) of the Land Tax Act 1958 15 insert—

"(1CA) A reference to an owner of land in sub-section (1)(ha) does not include a reference to a beneficiary of a trust or a unitholder in a unit trust scheme to which the land is 20 subject.".

19. Assessment and liability of joint owners

After section 45(5) of the Land Tax Act 1958 insert—

"(5A) If a joint owner of land is a trustee of a trust 25 to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment and liability of the joint owners of the land as referred to in sub-section (2), but regard is to be had to the 30 existence of the trust in relation to the separate assessment and liability of the joint owners as referred to in sub-section (3).".

s. 19




20. New sections 51 and 52 substituted and sections 52A to 52J inserted

For sections 51 and 52 of the Land Tax Act 1958 substitute—

'51. General land tax surcharge for trusts 5

(1) A person who is the owner of land as trustee of a trust is liable for land tax on the land—

(a) for 2006, as determined under clause 10 of the Second Schedule;

(b) for 2007, as determined under clause 11 10 of the Second Schedule;

(c) for 2008 and each subsequent year, as determined under clause 12 of the Second Schedule.

(2) The trustee is to be assessed for land tax on 15 the whole of the land subject to the trust as if the land were the only land owned by the trustee.

(3) This section does not apply to—

(a) land subject to a unit trust scheme if an 20 appointment of a nominated PPR beneficiary for the scheme is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or 25

(b) land subject to a discretionary trust if—

(i) an appointment of a nominated beneficiary for the trust is in force; or

s. 20




(ii) an appointment of a nominated PPR beneficiary for the trust is in force and the land is used and occupied as the principal place of residence of the nominated PPR 5 beneficiary; or

(c) land subject to an excluded trust.

(4) This section is subject to sections 52 and 52A.

(5) A trustee of child maintenance land who 10 would be liable to land tax in accordance with sub-section (1) but for this sub-section is liable for land tax as determined under clause 7, 8 or 9 of the Second Schedule (as the case may be), and is to be assessed 15 for that tax as if the child maintenance land were the only land owned by the trustee.

52. Land tax for fixed trust if beneficial interests notified to Commissioner

(1) A trustee of a fixed trust to which land is 20 subject may lodge with the Commissioner a written notice of the beneficial interests in the land.

(2) A notice must—

(a) be in the form, and contain the 25 information, determined by the Commissioner; and

(b) be lodged with the Commissioner on or before—

(i) if any of the land subject to the 30 trust is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or

s. 20




(ii) if the only land subject to the trust is post-2006 land—in the year in which the land first became subject to the trust.

(3) A notice takes effect— 5

(a) for the 2006 tax year if it is lodged on or before 30 June 2006 in respect of pre-2006 land; or

(b) in any other case, for the tax year after the year in which the notice is lodged— 10

and remains in force until it is withdrawn by the trustee.

(4) If a notice is in force under this section for a fixed trust—

(a) a beneficiary of the trust is deemed to 15 be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust as the beneficiary's beneficial interest in 20 land subject to the trust bears to the total beneficial interests in land subject to the trust, and is to be assessed for land tax on that land accordingly, together with any other land owned by 25 the beneficiary, in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be); and

(b) the trustee of the trust is to be assessed for land tax on the whole of the land 30 subject to the trust in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be) as if the land were the only land owned by the trustee.

s. 20




(5) There is to be deducted from the land tax payable by a beneficiary under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—

(a) the amount determined by the formula: 5

B A × where—

A is the proportion of the beneficiary's beneficial interest in land subject to the trust to the total 10 beneficial interests in land subject to the trust;

B is the total amount of tax assessed on the trustee under sub-section (4)(b); and 15

(b) the amount determined by the formula:

E DC

×

where—

C is the taxable value of the land of which the beneficiary is deemed 20 by sub-section (4)(a) to be the owner;

D is the total taxable value of all land owned by the beneficiary;

E is the amount of tax assessed on 25 the beneficiary under sub-section (4)(a).

s. 20




(6) For the purposes of this section, the trustee's right of indemnity from the trust property is taken not to be a beneficial interest in the land subject to the trust.

(7) Sub-section (4)(a) does not apply to a 5 beneficiary who holds a beneficial interest as trustee of another trust.

Note: Section 52B(1)(a) deems such a person to be the owner of land.

52A. Land tax for unit trust scheme if 10 unitholdings notified to Commissioner

(1) A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme. 15


(a) be in the form, and contain the information, determined by the Commissioner; and

(b) be lodged with the Commissioner on or 20 before—

(i) if any of the land subject to the scheme is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability 25 first arises for land tax on the land; or

(ii) if the only land subject to the scheme is post-2006 land—in the year in which the land first 30 became subject to the scheme.

s. 20




(3) A notice takes effect—


(b) in any other case, for the tax year after 5 the year in which the notice is lodged—


(4) If a notice is in force under this section for a unit trust scheme— 10

(a) a unitholder in the scheme is deemed, for the purposes of this Act other than Part IIA, to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same 15 proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is to be assessed for land tax on that land 20 accordingly, together with any other land owned by the unitholder, in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be); and 25

(b) the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be) 30 as if the land were the only land owned by the trustee.

(5) There is to be deducted from the land tax payable by a unitholder under sub-section (4)(a) an amount (if any) necessary to 35 avoid double taxation, being the lesser of—

s. 20




(a) the amount determined by the formula:

B A × where—

A is the proportion of the unitholder's unitholding in the 5 scheme to the total unitholdings in the scheme;



E DC

×

where—

C is the taxable value of the land of which the unitholder is deemed by 15 sub-section (4)(a) to be the owner;

D is the total taxable value of all land owned by the unitholder;

E is the amount of tax assessed on the unitholder under sub-20 section (4)(a).

(6) Sub-section (4)(a) does not apply to a unitholder who holds units as trustee of another trust.

Note: Section 52B(1)(b) deems such a person to be 25 the owner of land.

s. 20




52B. Land tax for beneficiary/trustees (1) For the purposes of this Act—

(a) a person who holds a beneficial interest in land subject to a fixed trust ("the first trust") as trustee of another trust 5 ("the second trust") is deemed to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest 10 in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust;

(b) a person who holds units in a unit trust scheme ("the first scheme") as trustee 15 of another trust ("the second trust") is deemed, for the purposes of this Act other than Part IIA, to be the owner of land subject to the first scheme that bears the same proportion to the whole 20 of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.

(2) For the purposes of this section, a person 25 referred to in sub-section (1) is called a "beneficiary/trustee".

(3) There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if 30 any) necessary to avoid double taxation, being the lesser of—


B A × where— 35

s. 20




A is—

(a) the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the 5 total beneficial interests in land subject to the first trust; or

(b) the proportion of the beneficiary/trustee's 10 unitholding in the first scheme to the total unitholdings in the first scheme;

B is the total amount of tax assessed 15 on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme; and

(b) the amount determined by the formula: 20

E DC

×

where—

C is the taxable value of the land of which the beneficiary/trustee is deemed by sub-section (1) to be 25 the owner;

D is the total taxable value of all land owned by the beneficiary/trustee that is subject to the second trust; 30

s. 20




E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all land owned by the beneficiary/trustee that is subject 5 to the second trust.

52C. Land tax for excluded trusts A trustee of an excluded trust is to be

assessed for land tax on the whole of the land subject to the trust as if the land were the 10 only land owned by the trustee.

Note: The land tax is to be assessed in accordance with clause 7, 8 or 9 of the Second Schedule (as the case may be).

52D. Nomination of beneficiary of pre-2006 15 discretionary trust for land tax purposes

(1) This section applies to a discretionary trust if the trust property includes any pre-2006 land.

(2) The trustee of the trust may nominate a 20 person to be the nominated beneficiary of the trust for the purposes of this Act.

(3) The person nominated must be—

(a) a natural person who—

(i) is a beneficiary of the trust; and 25

(ii) is of or over the age of 18 years on 31 December 2005; and

(iii) signifies in writing his or her acceptance of the nomination; or

(b) the trustee, if all beneficiaries of the 30 trust are under the age of 18 years on 31 December 2005.

s. 20




(4) A nomination under sub-section (2) must—


(b) be lodged with the Commissioner on or 5 before the later of—

(i) 30 June 2006; or

(ii) 3 months after the day on which a liability first arises for land tax on land subject to the trust. 10

(5) A nomination lodged in accordance with sub-section (4)—

(a) takes effect—

(i) for the 2006 tax year if made on or before 30 June 2006; or 15

(ii) in any other case, for the tax year after the year in which the nomination is lodged; and

(b) remains in force until—

(i) revoked by the nominated 20 beneficiary in writing given to the Commissioner; or

(ii) the nominated beneficiary dies.

(6) If the nominated beneficiary revokes the nomination, the trustee of the trust may 25 nominate as the nominated beneficiary—


(i) is a beneficiary of the trust; and

(ii) is of or over the age of 18 years on the date of the nomination; and 30


s. 20




(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination—

if the Commissioner considers that the nomination of a beneficiary under this sub-5 section is just and reasonable in the particular case.

(7) If the nominated beneficiary dies, the trustee of the trust may nominate as the nominated beneficiary— 10



(ii) is of or over the age of 18 years on the date of the nomination; and

(iii) signifies in writing his or her 15 acceptance of the nomination; or

(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination.

(8) A nomination lodged under sub-section (6) 20 or (7)—

(a) must be in the form, and contain the information, determined by the Commissioner; and

(b) takes effect for the tax year after the 25 year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to 30 so determine; and

s. 20




(c) remains in force until—

(i) revoked by the nominated beneficiary in writing given to the Commissioner; or

(ii) the nominated beneficiary dies. 5

(9) A nomination may be lodged under sub-section (6) or (7) (as the case requires) on more than one occasion.

52E. Land tax for discretionary trust with nominated beneficiary 10

(1) This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 52D.

(2) The nominated beneficiary is deemed, for the purposes of this Act (other than Part IIA) but 15 for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other land 20 owned by the nominated beneficiary.


(3) The trustee of the trust is to be assessed for 25 land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—

(a) in respect of any pre-2006 land—in accordance with clause 7, 8 or 9 of the 30 Second Schedule (as the case may be); and

s. 20




(b) in respect of any post-2006 land—in accordance with clause 10, 11 or 12 of the Second Schedule (as the case may be).

(4) For the purposes of sub-section (3), if the 5 trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula—

( ) ( )

××+

××=

TBTR

TATRL 21 10

where—

L is the land tax assessed for the trustee;

R1 is the rate of land tax set out in clause 7, 8 or 9 of the Second Schedule (as the case may be); 15

R2 is the rate of land tax set out in clause 10, 11 or 12 of the Second Schedule (as the case may be);

T is the total taxable value of all land subject to the trust; 20

A is the total taxable value of the pre-2006 land subject to the trust;

B is the total taxable value of the post-2006 land subject to the trust.

(5) There is to be deducted from any land tax 25 payable by the nominated beneficiary under sub-section (2) any land tax payable by the trustee under sub-section (3) in respect of pre-2006 land.

(6) Sub-section (2) does not apply if the 30 nominated beneficiary is the trustee.

s. 20




52F. Nomination of PPR beneficiary of unit trust scheme or discretionary trust for land tax purposes

(1) The trustee of a unit trust scheme or discretionary trust may nominate a person to 5 be the nominated PPR beneficiary of the scheme or trust for the purposes of this Act.

(2) The person nominated must be a natural person who is a unitholder in the scheme or a beneficiary of the trust. 10

(3) A nomination under sub-section (1) must be lodged with the Commissioner in the form, and containing the information, determined by the Commissioner.

(4) A nomination lodged in accordance with 15 sub-section (3)—

(a) takes effect—

(i) for the 2006 tax year if it is lodged on or before 30 June 2006; or

(ii) in any other case, for the tax year 20 after the year in which the nomination is lodged; and

(b) remains in force until the nominated PPR beneficiary dies.

(5) If the nominated PPR beneficiary dies, the 25 trustee of the scheme or trust may nominate a natural person who is a unitholder in the scheme or a beneficiary of the trust as the nominated PPR beneficiary.

(6) A nomination lodged under sub-30 section (5)—


s. 20




(b) takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just 5 and reasonable in the particular case to so determine; and

(c) remains in force until the nominated PPR beneficiary dies.

(7) A nomination may be lodged under sub-10 section (5) on more than one occasion.


(a) a unit trust scheme if a notice is in force for the scheme under section 52A; or

(b) a discretionary trust if the nomination 15 of a nominated beneficiary is in force for the trust under section 52D.

52G. Land tax for PPR land if nominated PPR beneficiary

(1) This section applies if the nomination of a 20 nominated PPR beneficiary for a unit trust scheme or discretionary trust is in force under section 52F.

(2) The trustee of the unit trust scheme or discretionary trust is to be assessed for land 25 tax on land subject to the scheme or trust that is used or occupied as the principal place of residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee. 30


s. 20




52H. Trustee's right of reimbursement A trustee of a trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust 5 or any like trust.

52I. All trustees to notify Commissioner by 31 December 2005

(1) A person who holds land in Victoria on trust on the relevant day must lodge a written 10 notice with the Commissioner on or before 31 December 2005.

(2) The notice must be in the form, and contain the information, determined by the Commissioner. 15


"relevant day" means the day on which the Duties and Land Tax Acts (Amendment) Act 2005 receives the Royal Assent. 20

52J. Ongoing requirements for trustees to notify Commissioner

(1) A person who becomes trustee of land in Victoria, including a person who is already a trustee of land and acquires further land as 25 trustee, must lodge a written notice with the Commissioner within one month after becoming trustee.

(2) A trustee who disposes of any land that is subject to the trust must lodge a written 30 notice with the Commissioner within one month after disposing of the land.

s. 20




(3) If—

(a) a person is trustee of land in Victoria; and

(b) anything happens that results in the trust to which the land is subject 5 becoming a different category of trust—

the person must lodge a written notice with the Commissioner within one month after the thing happens. 10 Example

If a trust deed is varied so that a discretionary trust becomes an excluded trust, the trustee must notify the Commissioner within one month. Under sub-section (6) the Commissioner could, for example, 15 require the trustee to include information about the variation of the trust deed (including a copy of the deed and variation) and any other information necessary to prove that the trust has become an excluded trust. 20

(4) A trustee of a fixed trust in respect of which a notice is in force under section 52 must lodge a written notice with the Commissioner within one month after any change to the beneficial interests in land 25 subject to the trust.

(5) A trustee of a unit trust scheme in respect of which a notice is in force under section 52A must lodge a written notice with the Commissioner within one month after any 30 change to the unitholdings in the scheme.

(6) A notice under this section must be in the form, contain the information and be accompanied by any documents or other evidence determined by the Commissioner. 35

s. 20




(7) A notice under this section is in addition to any notice that the person is required to give under section 15(2).


"category of trust" means— 5

(a) a fixed trust;

(b) a unit trust scheme;

(c) a discretionary trust;

(d) an excluded trust.'.

21. Land tax rates for trusts 10

In the Second Schedule to the Land Tax Act 1958, after clause 9 insert—

"10. Land tax for trusts for 2006

If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 15 2006 is not less than the amount shown in column 1 of an item in Table J and, if an amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with 20 column 3 of that item.

TABLE J

Item Column 1 Column 2 Column 3

$ $

1. 0 20 000 Nil

2. 20 000 200 000 $75 and 0⋅375 cents for each $1 of the value that exceeds $20 000



s. 21





$ $

5. 900 000 1 190 000 $5855 and 1⋅375 cents for each $1 of the value that exceeds $900 000

6. 1 190 000 1 620 000 $9843 and 1⋅875 cents for each $1 of the value that exceeds $1 190 000

7. 1 620 000 2 700 000 $17 905 and 1⋅706 cents for each $1 of the value that exceeds $1 620 000

8. 2 700 000 $36 330 and 3⋅5 cents for each $1 of the value that exceeds $2 700 000

11. Land tax for trusts for 2007

If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 2007 is not less than the amount shown in column 1 of an item in Table K and, if an amount is shown in 5 column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.

TABLE K


$ $

1. 0 20 000 Nil




s. 21





$ $




8. 2 700 000 $36 330 and 3⋅25 cents for each $1 of the value that exceeds $2 700 000

12. Land tax for trusts for 2008 and subsequent years

If the total unimproved value of land held by an owner subject to a trust as assessed under this Act for 2008 or a subsequent year is not less than the amount shown in column 1 of an item in Table L and, if an 5 amount is shown in column 2 of that item, less than the amount shown in column 2 of that item, the duty of land tax payable on the land is the amount determined in accordance with column 3 of that item.

TABLE L


$ $

1. 0 20 000 Nil




s. 21





$ $




8. 2 700 000 $36 330 and 3 cents for each $1 of the value that exceeds $2 700 000".

__________________

s. 21




PART 4—LAND TAX ACT 2005

22. Definitions (1) in section 3(1) of the Land Tax Act 2005—

(a) insert the following definitions—

' "beneficiary" of a discretionary trust, 5 means a person, or a member of a class of persons, in whom, by the terms of the trust, the whole or any part of the trust property may be vested—

(a) in the event of the exercise of a 10 power or discretion in favour of the person (whether or not that power is presently exercisable); or

(b) in the event that a discretion conferred under the trust is not 15 exercised;

"child maintenance land" means land held on trust that was transferred to the trustee for the benefit of a beneficiary as the result of a family breakdown 20 within the meaning of section 102AGA of the Income Tax Assessment Act 1936 of the Commonwealth;

"Commonwealth Superannuation Act" means the Superannuation Industry 25 (Supervision) Act 1993 of the Commonwealth;

s. 22




"concessional trust" means—

(a) a trust of which each beneficiary is—

(i) a person in respect of whom a guardianship order or an 5 administration order is in force under the Guardianship and Administration Act 1986; or 10

(ii) a person with a disability within the meaning of the Disability Services Act 1991; or

(b) a trust created under an order of 15 the Supreme Court for the benefit of a person under disability;

"discretionary trust" means a trust under which the vesting of the whole or any part of the trust property— 20

(a) is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or 25

(b) will occur in the event that a discretion conferred under the trust is not exercised—

but does not include an excluded trust, a fixed trust or a trust to which a unit 30 trust scheme relates;

"excluded trust" means—

(a) a charitable trust;

(b) a concessional trust;

s. 22




(c) a public unit trust scheme;

(d) a wholesale unit trust scheme;

(e) a trust the sole beneficiary or beneficiaries of which is or are—

(i) a club referred to in 5 section 73; or

(ii) the members of such a club;

(f) a trust established by a will, but only during the period ending on the later of— 10

(i) the 3rd anniversary of the testator's death or the further period approved by the Commissioner under sub-section (3); or 15

(ii) if, at the testator's death, all the potential beneficiaries are minors—the 18th birthday of the first beneficiary to turn 18; 20

(g) a trust, for any tax year in relation to which it is a superannuation trust;

"fixed trust" means a trust that is not an excluded trust, a discretionary trust or a 25 trust to which a unit trust scheme relates;

"listed trust" has the same meaning as in the Duties Act 2000;

"nominated beneficiary" of a discretionary 30 trust, means a person nominated under section 46F;

s. 22




"nominated PPR beneficiary" means a person nominated under section 46H;

"pre-2006 land", in relation to a trust, means land that was subject to that trust at midnight on 31 December 2005; 5

"post-2006 land", in relation to a trust, means land that became subject to that trust on or after 1 January 2006;

"public unit trust scheme" means—

(a) a listed trust; or 10

(b) a widely held trust; or

(c) a registered imminent public unit trust scheme or registered declared public unit trust scheme (within the meaning of the Duties Act 15 2000);

"superannuation trust" means, in relation to a tax year—

(a) a trust established on or before 30 June in the year preceding the 20 tax year that, in relation to the year of income ending in that year, is—

(i) a complying superannuation fund (within the meaning of 25 section 42 or 42A of the Commonwealth Superannuation Act); or

(ii) a complying approved deposit fund (within the 30 meaning of section 43 of the Commonwealth Superannuation Act); or

s. 22




(iii) a pooled superannuation trust (within the meaning of section 44 of the Commonwealth Superannuation Act); or 5

(b) a trust established after 30 June in the year preceding the tax year that, as at midnight on 31 December in that year, is—

(i) a regulated superannuation 10 fund (within the meaning of the Commonwealth Superannuation Act) or is taken to be a regulated superannuation fund under 15 that Act; or

(ii) an approved deposit fund (within the meaning of the Commonwealth Superannuation Act); or 20

(iii) a pooled superannuation trust (within the meaning of the Commonwealth Superannuation Act);

"trust" does not include an implied or a 25 constructive trust;

"unit" in a unit trust scheme, means—

(a) a right or interest (whether described as a unit or a sub-unit or otherwise) of a beneficiary under 30 the scheme; or

(b) a right to any such right or interest—

that entitles the beneficiary to participate proportionately with other 35

s. 22




unitholders in a distribution of the property of the trust on its vesting;

"unit trust scheme" means an arrangement made for the purpose, or having the effect, of providing facilities for 5 participation by a person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust, but does not 10 include an excluded trust;

"wholesale unit trust scheme" means a unit trust scheme that is registered under Division 7 of Part 2 of Chapter 3 of the Duties Act 2000 as a wholesale unit 15 trust scheme, an imminent wholesale unit trust scheme or a declared wholesale unit trust scheme;

"widely held trust" has the same meaning as that term would have in the Duties 20 Act 2000 if a reference in paragraph (b) of the definition of "widely held trust" in section 3(1) of that Act to "300 registered unitholders" were a reference to "50 registered 25 unitholders";';

(b) in the definition of "trustee" omit "express or implied".

(2) After section 3(2) of the Land Tax Act 2005 insert— 30

"(3) For the purposes of paragraph (f)(i) of the definition of "excluded trust" in sub-section (1), the Commissioner may approve a further period in any particular case.".

s. 22




23. New section 18 substituted For section 18 of the Land Tax Act 2005 substitute—

"18. Holders of beneficial interests The holders of beneficial interests in certain 5 trusts are deemed to be the owners of land by Division 2A of Part 3.".

24. Rate of land tax At the foot of section 35(1) of the Land Tax Act 2005 insert— 10

"Note: Schedule 1 sets out 3 different rates of land tax. Part 1 sets out the general rates of land tax, Part 2 sets out the rate of land tax on transmission easements and Part 3 sets out the land tax surcharge rates for trusts—see also Division 2A of this Part.". 15

25. Assessment and liability of joint owners After section 38(5) of the Land Tax Act 2005 insert—

"(6) If a joint owner of land is a trustee of a trust to which the land is subject, no regard is to 20 be had to the existence of the trust in relation to the joint assessment of the joint owners of the land as referred to in sub-section (2), but regard is to be had to the existence of the trust in relation to the separate assessment of 25 the joint owners as referred to in sub-section (3).".

26. Assessment of trustees Section 44 of the Land Tax Act 2005 is repealed. 30

s. 23




27. New Division 2A inserted in Part 3 After Division 2 of Part 3 of the Land Tax Act 2005 insert—

'Division 2A—Land Held on Trust

46A. General land tax surcharge for trusts 5

(1) A person who is the owner of land as trustee of a trust is liable for land tax on the land at the applicable rate set out in Part 3 of Schedule 1.

(2) The trustee is to be assessed for land tax on 10 the whole of the land subject to the trust as if the land were the only land owned by the trustee.


(a) land subject to a unit trust scheme if an 15 appointment of a nominated PPR beneficiary for the scheme is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or 20

(b) land subject to a discretionary trust if—

(i) an appointment of a nominated beneficiary for the trust is in force; or

(ii) an appointment of a nominated 25 PPR beneficiary for the trust is in force and the land is used and occupied as the principal place of residence of the nominated PPR beneficiary; or 30

(c) land subject to an excluded trust.

(4) This section is subject to sections 46B and 46C.

s. 27




(5) A trustee of child maintenance land who would be liable to land tax in accordance with sub-section (1) but for this sub-section is liable for land tax at the applicable rate set out in Part 1 of Schedule 1, and is to be 5 assessed for that tax as if the child maintenance land were the only land owned by the trustee.

46B. Land tax for fixed trust if beneficial interests notified to Commissioner 10

(1) A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.

(2) A notice must— 15


(b) be lodged with the Commissioner on or before— 20

(i) if any of the land subject to the trust is pre-2006 land—the later of 30 June 2006 or 3 months after the day on which a liability first arises for land tax on the land; or 25

(ii) if the only land subject to the trust is post-2006 land—in the year in which the land first became subject to the trust.

s. 27








(4) If a notice is in force under this section for a fixed trust— 10

(a) a beneficiary of the trust is deemed to be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust 15 as the beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is to be assessed for land tax on that land accordingly, 20 together with any other taxable land owned by the beneficiary, at the applicable rate set out in Part 1 of Schedule 1; and

(b) the trustee of the trust is to be assessed 25 for land tax on the whole of the land subject to the trust at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee. 30

(5) There is to be deducted from the land tax payable by a beneficiary under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—

s. 27





B A × where—

A is the proportion of the beneficiary's beneficial interest in 5 land subject to the trust to the total beneficial interests in land subject to the trust;

B is the total amount of tax assessed on the trustee under sub-section 10 (4)(b); and


E DC

×

where—

C is the taxable value of the land of 15 which the beneficiary is deemed by sub-section (4)(a) to be the owner;

D is the total taxable value of all taxable land owned by the 20 beneficiary;

E is the amount of tax assessed on the beneficiary under sub-section (4)(a).

(6) For the purposes of this section, the trustee's 25 right of indemnity from the trust property is taken not to be a beneficial interest in the land subject to the trust.

s. 27




(7) Sub-section (4)(a) does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.

Note: Section 46D(1)(a) deems such a person to be the owner of land. 5

46C. Land tax for unit trust scheme if unitholdings notified to Commissioner

(1) A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the 10 scheme.


(a) be in the form, and contain the information, determined by the Commissioner; and 15

(b) be lodged with the Commissioner on or before—

(i) if any of the land subject to the scheme is pre-2006 land—the later of 30 June 2006 or 3 months 20 after the day on which a liability first arises for land tax on the land; or

(ii) if the only land subject to the scheme is post-2006 land—in the 25 year in which the land first became subject to the scheme.

s. 27








(4) If a notice is in force under this section for a unit trust scheme— 10

(a) a unitholder in the scheme is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears 15 the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is to be assessed for land 20 tax on that land accordingly, together with any other taxable land owned by the unitholder, at the applicable rate set out in Part 1 of Schedule 1; and

(b) the trustee of the scheme is to be 25 assessed for land tax on the whole of the land subject to the scheme at the applicable rate set out in Part 1 of Schedule 1, as if the land were the only land owned by the trustee. 30

(5) There is to be deducted from the land tax payable by a unitholder under sub-section (4)(a) an amount (if any) necessary to avoid double taxation, being the lesser of—

s. 27





B A × where—

A is the proportion of the unitholder's unitholding in the 5 scheme to the total unitholdings in the scheme;



E DC

×

where—

C is the taxable value of the land of which the unitholder is deemed by 15 sub-section (4)(a) to be the owner;

D is the total taxable value of all taxable land owned by the unitholder;

E is the amount of tax assessed on 20 the unitholder under sub-section (4)(a).

(6) Sub-section (4)(a) does not apply to a unitholder who holds units as trustee of another trust. 25

Note: Section 46D(1)(b) deems such a person to be the owner of land.

s. 27




46D. Land tax for beneficiary/trustees (1) For the purposes of this Act—

(a) a person who holds a beneficial interest in land subject to a fixed trust ("the first trust") as trustee of another trust 5 ("the second trust") is deemed to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest 10 in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust;

(b) a person who holds units in a unit trust scheme ("the first scheme") as trustee 15 of another trust ("the second trust") is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner of land subject to the first scheme that bears the same proportion 20 to the whole of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.

(2) For the purposes of this section, a person 25 referred to in sub-section (1) is called a "beneficiary/trustee".

(3) There is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if 30 any) necessary to avoid double taxation, being the lesser of—

s. 27





B A × where—

A is—

(a) the proportion of the 5 beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; 10 or

(b) the proportion of the beneficiary/trustee's unitholding in the first scheme to the total 15 unitholdings in the first scheme;

B is the total amount of tax assessed on the trustee of the first trust or the first scheme on the whole of 20 the land subject to the first trust or first scheme; and


E DC

×

where— 25

C is the taxable value of the land of which the beneficiary/trustee is deemed by sub-section (1) to be the owner;

D is the total taxable value of all 30 taxable land owned by the beneficiary/trustee that is subject to the second trust;

s. 27




E is the amount of tax assessed under this Act on the beneficiary/trustee in respect of all taxable land owned by the beneficiary/trustee that is subject 5 to the second trust.

46E. Land tax for excluded trusts A trustee of an excluded trust is to be

assessed for land tax on the whole of the land subject to the trust as if the land were the 10 only land owned by the trustee.

Note: The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.

46F. Nomination of beneficiary of pre-2006 discretionary trust for land tax purposes 15

(1) This section applies to a discretionary trust if the trust property includes any pre-2006 land.

(2) The trustee of the trust may nominate a person to be the nominated beneficiary of the 20 trust for the purposes of this Act.

(3) The person nominated must be—



(ii) is of or over the age of 18 years on 25 31 December 2005; and


(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on 30 31 December 2005.

s. 27




(4) A nomination under sub-section (2) must—


(b) be lodged with the Commissioner on or 5 before the later of—

(i) 30 June 2006; or

(ii) 3 months after the day on which a liability first arises for land tax on land subject to the trust. 10


(a) takes effect—

(i) for the 2006 tax year if made on or before 30 June 2006; or 15

(ii) in any other case, for the tax year after the year in which the nomination is lodged; and

(b) remains in force until—

(i) revoked by the nominated 20 beneficiary in writing given to the Commissioner; or

(ii) the nominated beneficiary dies.

(6) If the nominated beneficiary revokes the nomination, the trustee of the trust may 25 nominate as the nominated beneficiary—



(ii) is of or over the age of 18 years on the date of the nomination; and 30


s. 27




(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination—

if the Commissioner considers that the nomination of a beneficiary under this sub-5 section is just and reasonable in the particular case.

(7) If the nominated beneficiary dies, the trustee of the trust may nominate as the nominated beneficiary— 10



(ii) is of or over the age of 18 years on the date of the nomination; and

(iii) signifies in writing his or her 15 acceptance of the nomination; or

(b) the trustee, if all beneficiaries of the trust are under the age of 18 years on the date of the nomination.

(8) A nomination lodged under sub-section (6) 20 or (7)—


(b) takes effect for the tax year after the 25 year in which the nomination is lodged, unless the Commissioner determines that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to 30 so determine; and

s. 27




(c) remains in force until—

(i) revoked by the nominated beneficiary in writing given to the Commissioner; or

(ii) the nominated beneficiary dies. 5

(9) A nomination may be lodged under sub-section (6) or (7) (as the case requires) on more than one occasion.

46G. Land tax for discretionary trust with nominated beneficiary 10

(1) This section applies if the nomination of a nominated beneficiary for a discretionary trust is in force under section 46F.

(2) The nominated beneficiary is deemed, for the purposes of this Act (other than Division 1 of 15 Part 4) but for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other taxable 20 land owned by the nominated beneficiary.

Note: The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1.

(3) The trustee of the trust is to be assessed for land tax on the whole of the land subject to 25 the trust as if the land were the only land owned by the trustee—

(a) in respect of any pre-2006 land—at the applicable rate set out in Part 1 of Schedule 1; and 30

(b) in respect of any post-2006 land—at the applicable rate set out in Part 3 of Schedule 1.

s. 27




(4) For the purposes of sub-section (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula— 5

( ) ( )

××+

××=

TBTR

TATRL 21

where—

L is the land tax assessed for the trustee;

R1 is the applicable rate of land tax set out in Part 1 of Schedule 1; 10

R2 is the applicable rate of land tax set out in Part 3 of Schedule 1;

T is the total taxable value of all taxable land subject to the trust;

A is the total taxable value of the 15 pre-2006 land subject to the trust;

B is the total taxable value of the post-2006 land subject to the trust.

(5) There is to be deducted from any land tax payable by the nominated beneficiary under 20 sub-section (2) any land tax payable by the trustee under sub-section (3) in respect of pre-2006 land.

(6) Sub-section (2) does not apply if the nominated beneficiary is the trustee. 25

46H. Nomination of PPR beneficiary of unit trust scheme or discretionary trust for land tax purposes

(1) The trustee of a unit trust scheme or discretionary trust may nominate a person to 30 be the nominated PPR beneficiary of the scheme or trust for the purposes of this Act.

s. 27




(2) The person nominated must be a natural person who is a unitholder in the scheme or a beneficiary of the trust.

(3) A nomination under sub-section (1) must be lodged with the Commissioner in the form, 5 and containing the information, determined by the Commissioner.


(a) takes effect— 10

(i) for the 2006 tax year if it is lodged on or before 30 June 2006; or

(ii) in any other case, for the tax year after the year in which the nomination is lodged; and 15

(b) remains in force until the nominated PPR beneficiary dies.

(5) If the nominated PPR beneficiary dies, the trustee of the scheme or trust may nominate a natural person who is a unitholder in the 20 scheme or a beneficiary of the trust as the nominated PPR beneficiary.

(6) A nomination lodged under sub-section (5)—

(a) must be in the form, and contain the 25 information, determined by the Commissioner; and

(b) takes effect for the tax year after the year in which the nomination is lodged, unless the Commissioner determines 30 that it should take effect for the current tax year, being satisfied that it is just and reasonable in the particular case to so determine; and

s. 27




(c) remains in force until the nominated PPR beneficiary dies.

(7) A nomination may be lodged under sub-section (5) on more than one occasion.

(8) This section does not apply to— 5

(a) a unit trust scheme if a notice is in force for the scheme under section 46C; or

(b) a discretionary trust if the nomination of a nominated beneficiary is in force for the trust under section 46F. 10

46I. Land tax for PPR land if nominated PPR beneficiary

(1) This section applies if the nomination of a nominated PPR beneficiary for a unit trust scheme or discretionary trust is in force 15 under section 46H.

(2) The trustee of the unit trust scheme or discretionary trust is to be assessed for land tax on land subject to the scheme or trust that is used or occupied as the principal place of 20 residence of the nominated PPR beneficiary as if the land were the only land owned by the trustee.

Note: The rate of land tax for this assessment is the applicable rate set out in Part 1 of Schedule 1. 25

46J. Trustee's right of reimbursement A trustee of a trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust 30 or any like trust.

s. 27




46K. Requirements for trustees to notify Commissioner

(1) A person who becomes trustee of land in Victoria, including a person who is already a trustee of land and acquires further land as 5 trustee, must lodge a written notice with the Commissioner within one month after becoming trustee.

(2) A trustee who disposes of any land that is subject to the trust must lodge a written 10 notice with the Commissioner within one month after disposing of the land.

(3) If—

(a) a person is trustee of land in Victoria; and 15

(b) anything happens that results in the trust to which the land is subject becoming a different category of trust—

the person must lodge a written notice with 20 the Commissioner within one month after the thing happens. Example

If a trust deed is varied so that a discretionary trust becomes an excluded trust, the trustee must notify the 25 Commissioner within one month. Under sub-section (6) the Commissioner could, for example, require the trustee to include information about the variation of the trust deed (including a copy of the deed and variation) and any other information 30 necessary to prove that the trust has become an excluded trust.

s. 27




(4) A trustee of a fixed trust in respect of which a notice is in force under section 46B must lodge a written notice with the Commissioner within one month after any change to the beneficial interests in land 5 subject to the trust.

(5) A trustee of a unit trust scheme in respect of which a notice is in force under section 46C must lodge a written notice with the Commissioner within one month after any 10 change to the unitholdings in the scheme.

(6) A notice under this section must be in the form, contain the information and be accompanied by any documents or other evidence determined by the Commissioner. 15

(7) A notice under this section is in addition to any notice that the person is required to give under section 103.


"category of trust" means— 20

(a) a fixed trust;

(b) a unit trust scheme;

(c) a discretionary trust;

(d) an excluded trust.'.

28. Consequential amendments 25

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

(a) in sub-section (1), the definitions of "discretionary trust" and "unit trust scheme" are repealed;

(b) sub-section (2) is repealed. 30

s. 28




(2) For section 67(6) of the Land Tax Act 2005 substitute—

"(6) For the purposes of this section—

(a) a reference to the issued share capital of a company does not include a reference 5 to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital;

(b) a reference to an owner of land does not 10 include a reference to a beneficiary of a trust or a unitholder in a unit trust scheme to which the land is subject.".

29. Public statutory authority and municipal and public land exemptions 15


"(3) Sub-section (2)(a) does not apply to land or part of land—

(a) that is leased or occupied under or in 20 accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry; or

(b) that is used or occupied by persons 25 carrying on business in movable stalls in a market during some but not all of the ordinary business hours in a week.".

s. 29





"(3) Sub-section (2) does not apply to land or part of land—

(a) that is leased or occupied under or in 5 accordance with an arrangement made with a municipal council for the purpose of promoting or assisting a decentralised industry; or

(b) that is used or occupied by persons 10 carrying on business in movable stalls in a market during some but not all of the ordinary business hours in a week; or

(c) that is used exclusively for or in 15 connection with a business the primary purpose of which is to provide outdoor sporting or recreational facilities.".

30. Land tax surcharge rates for trusts In Schedule 1 to the Land Tax Act 2005, after 20 Part 2 insert—

"PART 3—SURCHARGE RATES OF LAND TAX FOR TRUSTS

3.1 Land tax for trusts for 2006

The rate of land tax for 2006 for land held by an owner 25 subject to a trust is set out in Table 3.1.

TABLE 3.1


$ $

1. 0 20 000 Nil

2. 20 000 200 000 $75 and 0⋅375% of the taxable value that exceeds $20 000


s. 30





$ $


5. 900 000 1 190 000 $5855 and 1⋅375% of the taxable value that exceeds $900 000

6. 1 190 000 1 620 000 $9843 and 1⋅875% of the taxable value that exceeds $1 190 000

7. 1 620 000 2 700 000 $17 905 and 1⋅706% of the taxable value that exceeds $1 620 000

8. 2 700 000 $36 330 and 3⋅5% of the taxable value that exceeds $2 700 000

3.2 Land tax for trusts for 2007

The rate of land tax for 2007 for land held by an owner subject to a trust is set out in Table 3.2.

TABLE 3.2


$ $

1. 0 20 000 Nil






s. 30





$ $


8. 2 700 000 $36 330 and 3⋅25% of the taxable value that exceeds $2 700 000

3.3 Land tax for trusts for 2008 and subsequent years

The rate of land tax for 2008 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.3.

TABLE 3.3


$ $

1. 0 20 000 Nil







8. 2 700 000 $36 330 and 3% of the taxable value that exceeds $2 700 000".

s. 30




31. Transitional provisions In Schedule 3 to the Land Tax Act 2005, after clause 7 insert—

"8. Trusts

(1) A notice given under section 52 of the old Act that 5 was in force immediately before the commencement day continues in force on and after that day as if it were a notice given under section 46B of this Act.

(2) A notice given under section 52A of the old Act that was in force immediately before the commencement 10 day continues in force on and after that day as if it were a notice given under section 46C of this Act.

(3) A nomination of a beneficiary under section 52D of the old Act that was in force immediately before the commencement day continues in force on and after 15 that day as if it were a nomination of a beneficiary under section 46F of this Act.

(4) A nomination of a PPR beneficiary under section 52F of the old Act that was in force immediately before the commencement day continues in force on and 20 after that day as if it were a nomination of a PPR beneficiary under section 46H of this Act.

9. Amnesty for failing to lodge certain documents

(1) Section 59 of the Taxation Administration Act 1997 does not apply to a failure or refusal to lodge a notice 25 with the Commissioner under section 46K.

(2) This clause ceases to have effect on 31 December 2007.

10. Continuation of Orders

(1) An Order under section 9(1AD) of the old Act that 30 was in force immediately before the commencement day continues in force on and after that day as if it were an order made under section 80(4) of this Act.

(2) An Order under section 9(1B) of the old Act that was in force immediately before the commencement day 35 continues in force on and after that day as if it were an order made under section 64(2) of this Act.

s. 31




(3) An Order under section 13P(1) of the old Act that was in force immediately before the commencement day continues in force on and after that day as if it were an order made under section 87(1) of this Act.".

═══════════════

s. 31



ENDNOTES

By Authority. Government Printer for the State of Victoria.

Endnotes

duties and land tax acts (amendment) act 2005 of victoria 551367b.i1-25/10/2005 bill la introduction...

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