16 TH ANNUAL STATES TAXATION CONFERENCE

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1 16 TH ANNUAL STATES TAXATION CONFERENCE Written by: Shaun Pearson Principal Policy Officer Northern Territory Revenue Office Presented by: Shaun Pearson Principal Policy Officer Northern Territory Revenue Office National Division July 2016 Darwin Convention Centre, Darwin State and Territory Revenue Offices 2016 Disclaimer: The material and opinions in this paper are those of the author and not those of The Tax Institute. The Tax Institute did not review the contents of this paper and does not have any view as to its accuracy. The material and opinions in the paper should not be used or treated as professional advice and readers should rely on their own enquiries in making any decisions concerning their own interests.

2 CONTENTS 1 AUSTRALIAN CAPITAL TERRITORY Amended Legislation Building (Loose-fill Asbestos Eradication) Legislation Amendment Act Rates Amendment Act Revenue (Charitable Organisations) Legislation Amendment Act First Home Owner Grant Amendment Act Revenue Legislation Amendment Act Revenue Legislation Amendment Bill Budget Announcements Taxation Reform Program Rates (Pensioner Rebate) Amendment Bill Safer Families Levy Bill Further Information NEW SOUTH WALES Amended Legislation Small Business Grants (Employment Incentive) Act 2015 Act No. 14 of Payroll Tax Rebate Scheme (Jobs Action Plan) Amendment (Extension) Act 2015 Act No.4 of State Revenue Legislation Amendment Act 2015 Act No.65 of Payroll Tax Deferral (BlueScope Steel) Act 2015 Act No.68 of Betting Tax Legislation Amendment Act 2015 Act No.66 of Regulatory Reform and Other Legislative Repeals Act 2015 Act No.48 of Home Building and Duties Amendment (Loose-fill Asbestos Insulation Affected Premises) Act 2015 Act No.47 of State Revenue Legislation Amendment Act 2016 Act No.14 of Taxation Administration Amendment (Collection and Disclosure of Information to Commonwealth) Act 2016 Act Point to Point Transport (Taxis and Hire Vehicles) Act State and Territory Revenue Offices

3 2.2 Budget Announcements Amendment of Duties Act Amendment of Land Tax Act Amendment of Payroll Tax Rebate (Jobs Action Plan) Act Other Further Information NORTHERN TERRITORY Amended Legislation Revenue and Other Legislation Amendment Act Racing and Betting Legislation Amendment Act Budget Announcements Further Information QUEENSLAND Amended Legislation Payroll Tax Rebate, Revenue and Other Legislation Amendment Act Duties Act 2001 (Duties Act) First Home Owner Grant Act Payroll Tax Act Taxation Administration Act 2001 (TAA) Revenue Legislation Amendment Regulation (No. 1) Revenue Legislation Amendment Regulation (No. 1) Revenue and Other Legislation Amendment Bill Duties Act 2001 (Duties Act) Land Tax Act 2010 (Land Tax Act) Taxation Administration Act 2001 (Taxation Administration Act) and Taxation Administration Regulation 2012 (Taxation Administration Regulation) Revenue Legislation Amendment Regulation (No. 2) Budget Announcements State and Territory Revenue Offices

4 4.2.1 Duties and Other Legislation Amendment Bill Further Information SOUTH AUSTRALIA Amended Legislation Budget Announcements Extension of the Stamp Duty Concession for Off-the-Plan Apartments and Expansion of the Boundaries Expansion of the principal place of residence land tax exemption Small Business Payroll Tax Rebate Introduction of a Job Accelerator Grant Scheme Place of Consumption Tax for Betting Companies Offering Services in SA Miscellaneous Amendments Further Information TASMANIA Amended Legislation First Home Owner Grant Amendment Act Budget Red Tape Reduction Further Information VICTORIA Amended Legislation State Taxation Acts Further Amendment Act Budget State Taxation and Other Acts Amendment Act Further Information WESTERN AUSTRALIA Amended Legislation Revenue Laws Amendment Act State and Territory Revenue Offices

5 8.1.2 Land Tax Amendment Act Revenue Laws Amendment Act First Home Owner Grant Act Duties Act Rates and Charges (Rebates and Deferments) Act Further Information State and Territory Revenue Offices

6 1 AUSTRALIAN CAPITAL TERRITORY 1.1 Amended Legislation The Australian Capital Territory (ACT) has amended the following Acts: Duties Act 1999, First Home Owner Grant Act 2000, Land Rent Act 2008, Land Tax Act 2004, Payroll Tax Act 2011, Rates Act 2004 and Taxation Administration Act Building (Loose-fill Asbestos Eradication) Legislation Amendment Act 2015 The Building (Loose-fill Asbestos Eradication) Legislation Amendment Act 2015 made a number of amendments effective 13 November 2015 to facilitate the implementation of the demolition and resale components of the Loose-fill Asbestos Insulation Eradication Scheme (the Scheme). On 28 October 2014, the ACT Government announced the Scheme under which it has offered to buy all homes in the ACT affected by loose-fill asbestos (Mr Fluffy) insulation. Under the Scheme, the ACT Government will acquire, demolish and safely dispose of all affected homes, remediate affected blocks and then resell them to defray overall scheme costs. Amendments to the Land Rent Act 2008 made the Land Rent Scheme available to former homeowners who are seeking to rebuild on their former block once the affected residential premises have been demolished and the land remediated. Under the ACT s Buyback Program, homeowners who surrender the lease on which affected premises are located are able to indicate in the Deed of Surrender whether they would like to preserve a first right of refusal. Under the first right of refusal, the former owner is given the first option to purchase a new lease over the parcel of land once the affected premises have been demolished and the land deemed suitable for redevelopment. The Act made a number of technical amendments to allow the application of the Land Rent Scheme in the very specific circumstances of former homeowners seeking to return to their former block (land rent leases were previously only available in greenfield estates). The Act also made substantive amendments to the Land Rent Act 2008 to reflect the special nature of the newly available leases in established suburbs where land rent would not otherwise be available. The Land Rent Scheme allows a land rent lease to be sold to another person as a land rent lease provided the purchaser is eligible to participate in the Land Rent Scheme. The amendments to the Land Rent Act 2008 included a provision to prevent the transfer of a land rent lease that is granted under the first right of refusal. The amendments are intended to be a benefit that is only available to the specific former owner to enable them to rebuild on their land and return to their former neighbourhood. A further aspect of the Land Rent Scheme that will have a modified application to land rent leases granted to former owners of affected residential premises is the amount paid to convert the lease from a land rent lease to a nominal rent lease (i.e. a standard lease) under the Planning and Development Act The amount payable for such a lease variation is determined by the Planning and Land State and Territory Revenue Offices

7 Authority by reference to a ministerial policy direction (a disallowable instrument). The current policy direction allows the lessee the option of calculating the amount that is payable for the lease variation on either average unimproved value or market value. Consistent with the policy objective of reselling land at market value after remediation works are complete, a land rent lease to the former owners of affected residential premises may only be converted to a nominal rent lease at market value Rates Amendment Act 2015 This Act amended the Rates Act 2004 to establish a methodology for changes in the unimproved value of Canberra Airport land. The methodology will apply for a 15 year period beginning in the financial year. The Act is intended to reflect the unique nature of Canberra Airport s lease arrangements, originating from the circumstances of its privatisation in the 1990s, and the fact that airport land is rateable commercial land under the Rates Act The limitations on the purpose and use of airport lands make it difficult to determine the lands unimproved value for the purposes of calculating liability for general rates and the Fire and Emergency Services Levy. The methodology in the amendments assigns a base value to specified parcels of airport land in place of the average unimproved value normally used in calculating rates. It then indexes the base value annually, based on the amount of commercial development taking place on airport lands, as well as the aggregate change in average unimproved values of non-airport commercial land across the ACT Revenue (Charitable Organisations) Legislation Amendment Act 2015 This Act amended the Duties Act 1999, Payroll Tax Act 2011, Rates Act 2004 and Taxation Administration Act It took effect on 25 November The amendments exclude four types of organisation from charitable tax exemptions in relation to rates, duty and payroll tax: political parties; industrial organisations; organisations that promote trade, industry or commerce; and professional organisations. The Act streamlined the process of obtaining charitable tax exemptions and clarified the objection, appeal and reassessment process for relevant decisions regarding charitable status. As a safeguard against the risk of the amendments inadvertently excluding a more traditional charity, the Commissioner for ACT Revenue is now able to make a beneficial organisation determination (BOD) to re-grant tax-exempt status to some organisations. The Commissioner must be satisfied that the organisation has a predominantly charitable purpose, and that its excluded objects or activities are not significant to its overall purpose, before making a BOD. The organisation must also not have a purpose that benefits a smaller class of people rather than the general community. Only professional organisations or organisations that promote trade, industry or commerce are able to apply for a BOD. State and Territory Revenue Offices

8 Excluded organisations retain the right to seek a BOD, to lodge an objection through the regular procedures, and have an objection decision reviewed by the ACT Civil and Administrative Tribunal (ACAT) and the courts, subject to the restrictions on reassessment outlined below. The Act limited the scope of reassessments and refunds for excluded organisations to reinforce its revenue protection purpose. For ordinary charitable organisations, the usual reassessment process applies. For excluded organisations, a transitional provision prevents the Commissioner from making a reassessment under the Taxation Administration Act 1999 under the pre-amendment state of the law. For organisations where a BOD has been made in respect of the organisation, the usual reassessment process applies. This limitation applies regardless of whether the organisation made a submission to the Commissioner or ACAT (including an objection or appeal) about the matter. It is restricted to situations where the reassessment s purpose is to give effect to a decision that a now excluded organisation was or is a charitable organisation (and its tax liability was therefore nil or negligible) First Home Owner Grant Amendment Act 2015 This Act amended the First Home Owner Grant Act 2000 which was announced in the Budget as a measure to reduce spending. The Act became effective on 1 January The Act changes the maximum amount granted to a first home owner from $12,500 to an amount determined by the Minister, through the use of a disallowable instrument. This was enacted to facilitate the government reducing the grant to $10,000, effective 1 January 2016 as well as a further reduction to $7,000 from January Overall this amendment is estimated to result in a saving of $ million over four years Revenue Legislation Amendment Act 2015 This Act amended various taxation Acts to improve how the ACT tax system runs for taxpayers and administrators. The amendments simplified processes and reduced red tape, clarified processes and corrected errors, harmonised legislation with other jurisdictions and aligned legislation with the original policy intent. Significant amendments included: introduction of a pro-rata concession for transfer of deceased estates not in complete conformity with a will under the Duties Act 1999; replacement of the 95 per cent duty relief on corporate reconstruction transactions with a full exemption; amendment of the definition of new home in the First Home Owner Grant Act 2000 to exclude homes previously occupied on a short-term or intermittent basis (such as ex serviced apartments); improvements in the application processes for the ACT Land Rent Scheme under the Land Rent Act 2008 and the exemption for corporate builders under the Land Tax Act 2004; State and Territory Revenue Offices

9 removing impediments that prevented taxpayers from objecting to interest imposed on rates or land tax; amending the owner-driver exemption under the Payroll Tax Act 2011 to address the Smith s Snackfood Company Ltd v Chief Commissioner of State Revenue (NSW) case; and consolidating the sale of land in arrears process for unpaid rates and land tax into the Taxation Administration Act 1999 requiring the Commissioner for ACT Revenue to issue public notice of proposed sales, and decreasing the waiting period for a court order to sell property from one year to 90 days Revenue Legislation Amendment Bill 2016 This Bill was presented 7 June 2016 and is expected to be enacted in August for commencement on 1 September The Bill will amend various taxation Acts to improve the Territory s revenue collection system for taxpayers and administrators. Significant amendments include: changes to the Rates Act 2004 to make the timing of annual unimproved value determinations easier to understand, and to remove ambiguous terminology; clarifying the application process for division 5.2 of the Rates Act 2004 where a parcel of land will be subject to mixed residential and commercial development; allowing the Commissioner for ACT Revenue to appoint authorised valuers under the Taxation Administration Act 1999 with dedicated powers of entry and inspection, to align with the independent powers of government valuers in other jurisdictions; and removal of obsolete provisions of the Duties Act 1999 concerning recognised stock exchanges and declared affordable house and land packages. 1.2 Budget Announcements The ACT Budget, announced 7 June 2016, implements tax-related changes consistent with the ongoing tax reform begun 1 July One of the key elements of this reform is the phasing out of conveyance duty over 20 years and the abolition of insurance duties on 1 July The duty rates and concession schemes below are all administered by disallowable instrument. Related changes include: Conveyance duty rates reduced on and from 8 June 2016 as follows: Threshold % % Up to $200, State and Territory Revenue Offices

10 $200,001 to $300, $300,001 to $500, $500,001 to $750, $750,001 to $1,000, $1,000,001 to $1,454, $1,455,000 and above (flat rate) Duty on general and life insurance reduced to 0% on 1 July A technical instrument is implemented from 1 July 2016 to suspend requirements to lodge returns for general and life insurance duty. The land tax fixed charge increased to $1090 on 1 July 2016, from $945 in (marginal rates remain unchanged from ). The annual payroll tax threshold increased from $1.85 million to $2 million on 1 July 2016 (the rate remains constant at 6.85%). Over 60s Home Bonus Scheme extended for six months, to 31 December Pensioner Duty Concession Scheme extended for two years, to 30 June Disability Duty Concession Scheme introduced to encourage individuals with disabilities to purchase long-term private accommodation and reduce reliance on government housing assistance. To be eligible for the scheme an applicant must be a participant in the National Disability Insurance Scheme and in receipt of an individualised funding package. The dutiable value of the subject property must be $750,000 or less (aligning with the FHOG cap). The eligible applicant must acquire a legal and equitable interest of at least 51% of the subject property and reside in the property for 12 months. The Disability Duty Concession Scheme is exclusive of other home buyer concession schemes and can only be received once. Inclusion of new motorcycles in category B of the Vehicle Emission Reduction Scheme for motor vehicle registration duty (reducing the effective duty rate from 3% to 1%). The Budget continued the ACT s Taxation Reform Program and included a set of administrative amendments to taxation laws as well as introducing a new levy. These changes include the Rates (Pensioner Rebate) Amendment Bill 2016 and the Safer Families Levy Bill Taxation Reform Program Stage One of the ACT s Taxation Reform Program began in and the Budget marks the completion of Stage One reforms. The abolishment of general and life insurance duty as well as the continued reduction of conveyance duty detailed above has already contributed to the conveyance duty charge for most residential properties in the ACT becoming significantly lower than State and Territory Revenue Offices

11 the national average, and the lowest of all jurisdictions except Queensland s rate for owner occupier properties. Stage Two of the reform program will commence in The initiatives incorporated in Stage Two will build on the progress made in Stage One but take a more targeted approach. A key aspect of the Stage Two reforms is the separation of residential and commercial conveyance duty rates from onwards. This will allow taxation to be adjusted to better reflect the differences in each sector. It will also rebalance the general rates system; through a change in methodology for calculating general rates paid by units will make payments more equitable between units and houses. As a result of the separation, general rates will increase by an average of 4.5 per cent for residential properties and by an average of 7 per cent for commercial properties in The annual average rates increases for the next five years of Stage Two tax reform for residential properties will be 7 per cent and commercial properties by 6 per cent. Under Stage Two reforms the ACT will also change the general rates calculation for multi-unit dwellings. Under existing arrangements, the Average Unimproved Value (AUV) for a unit is allocated on the basis of unit entitlement. The AUV allocated for each unit is multiplied by the rating factors to determine the variable component of general rates payable on that unit. All units also pay the general rates fixed charge, which is the same for all residential properties. From 1 July 2017 general rates will be calculated on the total AUV of the multi-unit dwelling rather than the individual AUV of each unit. Under the new arrangements the rating factors will apply to the AUV of the property as a whole to determine total rates payable. The variable component of general rates payable by each unit will depend on each unit s unit entitlement. This will make the increase in general rates for units higher than houses in and as the transition takes effect. For units only, this change in the rates methodology will add around $150 on average in and $115 on average in Rates (Pensioner Rebate) Amendment Bill 2016 This Bill was presented 7 June 2016 and is expected to be enacted in August. In order to ensure clarity an interim disallowable instrument was made to deliver these amendments on 1 July 2016, under the Treasurer s existing powers in the Taxation Administration Act The Bill will amend the Rates Act 2004 to implement two initiatives in the Budget. The first initiative was to freeze the uncapped general rates rebate at levels. Property owners who receive a Commonwealth Government or Department of Veterans' Affairs pension with entitlement to a Pensioner Concession Card or a War Veteran's pension, are entitled to a rebate of rates on their principal place of residence. The uncapped scheme was a grandfathered scheme for eligible pensioners who became eligible for the rebate prior to 1 July The uncapped scheme provided a flat 50 per cent discount on general rates regardless of property value. State and Territory Revenue Offices

12 Most other recipients instead receive the capped rates rebate, providing a 50 per cent discount up to a maximum cap of $700. Two properties with the same value could therefore receive very different rebates depending on whether the owners were uncapped or capped rebate recipients. In and future years, the rebate for these recipients will be fixed at the lesser of the rebate received in the previous year or 50 per cent of their rates liability. Grandfathered recipients will automatically transfer to the capped scheme if they would receive a higher rebate as a result. The second initiative was to freeze the rebate for the Fire and Emergency Services Levy (FESL) at $98, and to allow future FESL rebates to be set by the Treasurer by disallowable instrument rather than be determined by a legislative formula (50 per cent of the determined FESL charge) Safer Families Levy Bill 2016 This Bill was presented 7 June 2016 and is expected to be enacted in August. In order to ensure clarity an interim disallowable instrument was made to impose the Levy from 1 July 2016, under the Treasurer s existing powers in the Taxation Administration Act This Bill amends the Rates Act 2004 to establish a new Safer Families Levy payable by residential and rural properties. The Safer Families Levy (the Levy) is an important part of a funding package for family violence prevention measures across the ACT, driving the next phase of reform in government and community backed responses to family violence. The Safer Families Levy will support initiatives to prevent violence against women and their children, and support delivery of the ACT Prevention of Violence against Women and Children Strategy The Levy will support an integrated case management and coordination of family violence services, training for frontline staff, improvements to the child protection system, and many other important initiatives. The Levy will be imposed on all rural and residential properties in the ACT and will be administered in line with the Fire and Emergency Services Levy imposed under schedule 1 of the Rates Act. For example, it will be an itemised charge on general rates assessments in the same way as the Fire and Emergency Services Levy. The Levy will be determined as $30 for the financial year and will be set by disallowable instrument. 1.3 Further Information Legislation available at: ACT Revenue Office website available at: Treasury website available at: apps.treasury.act.gov.au Parliamentary website available at: State and Territory Revenue Offices

13 2 NEW SOUTH WALES 2.1 Amended Legislation Small Business Grants (Employment Incentive) Act 2015 Act No. 14 of 2015 The Small Business Grants (Employment Incentive) Act 2015 received assent on 29 June 2015, with the amendments commencing on assent. The object of this Act is to assist in the creation of new jobs by establishing a grant scheme that gives small business employers an incentive to increase the number of their full time equivalent employees for a period of at least a year. The grant scheme is for small business employers who employ people in new jobs on or after 1 July 2015, and before 1 July 2019, for services performed wholly or mainly in New South Wales. The grant payable for each full time employee is $2,000, with a proportional amount payable for a part time employee. An employer is an eligible small business for the purposes of the grant if that employer has an ABN, carries on a business for the whole of the grant period and is not liable to pay payroll tax. The grant period is the period commencing on the date the eligible employment is claimed to commence and ending on the first anniversary of that date Payroll Tax Rebate Scheme (Jobs Action Plan) Amendment (Extension) Act 2015 Act No.4 of 2015 The Payroll Tax Rebate Scheme (Jobs Action Scheme) Amendment (Extension) Act 2015 received assent on 2 June The Act extends the closure date for the Jobs Action Plan rebate for four years. The rebate was due to close on 30 June 2015, and this has now been extended to 30 June The amount of the rebate remains unchanged, with $2,000 payable on the first anniversary of the hire of additional staff, and $3,000 payable on the second anniversary. In addition, the Act closes applications for the JAP Fresh Start Support (FSS) on 30 June 2015, except those workers at the Electrolux factory in Orange who are made redundant. For these workers, the FSS scheme will close on 30 June State Revenue Legislation Amendment Act 2015 Act No.65 of 2015 The State Revenue Legislation Amendment Act 2015 received assent on 24 November 2015, with amendments commencing on assent unless otherwise stated. State and Territory Revenue Offices

14 The Act makes amendments to the Duties Act 1997, the Fines Act 1996, the Road Transport Act 2013 and the Taxation Administration Act 1996: to extend existing exemptions from duty for transactions relating to amalgamations of registered clubs to de-amalgamations of registered clubs and related transfers of club premises and car parks, to update references to stock exchanges so that concessions applicable to other stock exchanges will apply in the case of entities or securities listed or quoted on the London Stock Exchange (including AIM) and the New York Stock Exchange, to modernise procedures for nomination of persons in charge of vehicles or vessels who have committed offences by persons who would otherwise be responsible for the offences and to make other amendments relating to nominations, to enable refunds, in cases of hardship, of payments under garnishee orders issued against fine defaulters, to clarify the status of calculations of self-assessed tax liability by the Chief Commissioner of State Revenue. Amendment of Duties Act 1997 Registered Clubs The amendment exempts from duty a transfer, or agreement for the sale or transfer, of dutiable property to give effect to an amalgamation or de-amalgamation, or both, of a registered club. Prior to the amendment, the exemption applied only to amalgamations. An exemption is also conferred for the transfer, or an agreement for the sale or transfer, of the premises or car park of a club for the purposes of an amalgamation or de-amalgamation, or both. The amendment is taken to have commenced on the date of the commencement of the de-amalgamation provisions authorising the transactions, that is, on 20 January Recognised Stock Exchanges The amendments include separate references to the London Stock Exchange (including AIM) and the New York Stock Exchange in the definitions of listed company, listed trust, private company and recognised stock exchange. Previously, references to those bodies were captured by references in those definitions to the World Federation of Exchanges, a body to which the London Stock Exchange and the New York Stock Exchange no longer belong. The amendments will have the effect of re-applying concessional and other provisions of the Duties Act 1997 that previously applied to things listed or quoted on those exchanges. The amendment provides that the definitions are taken to have always referred to those exchanges, that is, the amendment has retrospective effect. The amendments also insert definitions of London Exchange and New York Exchange. State and Territory Revenue Offices

15 Amendment of Taxation Administration Act 1996 The amendment confirms that a calculation by the Chief Commissioner of State Revenue of the tax liability of a person on the basis of a payroll tax return is an assessment of tax. One consequence of this is that the time limits for objections to assessments, and for reassessments, will apply to those matters from the date of the calculation. The effect of the provision may be extended by regulation to other kinds of tax liabilities. The amendment preserves the operation of the court decision in Freelance Global Ltd v Chief Commissioner of State Revenue [2014] NSWSC 127 insofar as it is inconsistent with this amendment. Except for this transitional provision, the amendment applies retrospectively Payroll Tax Deferral (BlueScope Steel) Act 2015 Act No.68 of 2015 The Payroll Tax Deferral (BlueScope Steel) Act 2015 received assent on 24 November 2015, and commenced on assent. This Act authorises the Treasurer to enter into and give effect to a deed with BlueScope Steel Limited providing for the deferral of payroll tax payments for which BlueScope and certain BlueScope Taxpayer Entities are liable to pay in the period commencing 1 January 2016 and ending 31 December It also provides for payment by instalments of the total amount deferred in accordance with a structured payment plan set out in the deed. The Act also provides for a copy of the text of the proposed deed to be tabled in Parliament on the date of the introduction of the Bill. The definition of taxation laws in section 47 of the Taxation Administration Act 1996 is also amended to enable administration and enforcement of the provisions relating to the deferral and payment of payroll tax by BlueScope and certain BlueScope Taxpayer Entities described in the deed Betting Tax Legislation Amendment Act 2015 Act No.66 of 2015 The Betting Tax Legislation Amendment Act 2015 received assent on 24 November The Act is taken to have commenced on 1 July 2015 and amends the Betting Tax Act 2001 and the Totalizator Act The amendments: 1. provide for the staged reduction of the following rates of tax payable by a totalisator licensee: a. the rate of tax payable on the commission deducted under the Totalizator Act in connection with totalizator betting, b. the rate of tax payable on roundings arising in connection with totalizator betting, c. the rate of tax payable on net earnings in connection with certain betting activities conducted otherwise than by means of a totalizator, 2. provide for the quarterly payment of a tax reduction amount as a consequence of the reduction: d. to Racing New South Wales and Harness Racing New South Wales, and State and Territory Revenue Offices

16 e. to a Tax Reduction Trust Fund from which payments may be made to Greyhound Racing New South Wales at the direction of the Minister for Racing, 3. provide for the establishment, management and control of the Tax Reduction Trust Fund. 4. The Bill makes a consequential amendment to the Totalizator Regulation 2012 to prescribe the rates at which the tax reduction amount is to be apportioned to each racing controlling body. The Act also makes a consequential amendment to the Totalizator Regulation 2012 to prescribe the rates at which the tax reduction amount is to be apportioned to each racing controlling body. Amendment of Betting Tax Act 2001 The amendments provide for the staged reduction, over a 5-year period, of the rates of betting tax payable by a totalizator licensee under the Betting Tax Act and the reduction of the rate of betting tax payable by the licensee on commissions deducted under the Totalizator Act in connection with totalizator betting. The amendments provide for the reduction of the rate of betting tax payable by the licensee on roundings arising in connection with totalizator betting. The amendments also provide for the reduction of the rate of betting tax payable by the licensee in connection with betting activities (other than computer simulated racing event betting activities) that the licensee is approved under the Totalizator Act to conduct otherwise than by means of a totalizator. Amendment of Totalizator Act 1997 The amendment inserts the following proposed provisions: Section 70 provides for the payment of a quarterly tax reduction amount, apportioned at the rates prescribed by the Totalizator Regulation The amount is to be paid by TAB Limited to Racing New South Wales and Harness Racing New South Wales, and to the Tax Reduction Trust Fund on behalf of Greyhound Racing New South Wales. The tax reduction amount is the difference between the total amount of tax payable under the Betting Tax Act, as amended by this amending Act, and the total amount of tax that would have been payable under the Betting Tax Act had it not been amended. The operation of the Racing Distribution Agreement (between the Totalizator Agency Board, NSW Racing Pty Limited, NSW Thoroughbred Racing Board, Harness Racing New South Wales and the Greyhound Racing Authority (NSW)) is modified as a consequence of this section and the amendments made by this amending Act Section 70A establishes the Tax Reduction Trust Fund and provides for the payments that may be made to and from the Fund. The tax reduction amount in respect of Greyhound Racing New South Wales is required to be paid into the Fund, and is to be paid from the Fund to Greyhound Racing New South Wales at the direction of the Minister for Racing. Section 70B provides for the management and control of the Tax Reduction Trust Fund and the functions of the Secretary of the Department of Justice as trustee of the Fund. State and Territory Revenue Offices

17 Amendment of Totalizator Regulation 2012 The Totalizator Regulation 2012 is amended to prescribe the rates at which the tax reduction amount is to be apportioned to each racing controlling body Regulatory Reform and Other Legislative Repeals Act 2015 Act No.48 of 2015 The Regulatory Reform and Other Legislative Repeals Act 2015 received assent on 5 November The Act commenced on the date of assent, except for the repeal of several of the Acts, including the Valuers Act Amongst other regulatory reforms, this Act abolishes the requirement for persons practising as property valuers in NSW to be registered, by repealing the Valuers Act 2003 with effect from 1 March This repeal abolishes the requirement for persons practising as property valuers in NSW to be registered, giving effect to Recommendation 13 of the Independent Pricing and Regulatory Tribunal s Reforming licensing in NSW: Review of licence rationale and design (September 2014). As a consequence of this repeal, the Act makes amendment to the Duties Act 1997; the Fines Act 1996; the First Home Owner Grant (New Homes) Act 2000; and the Regional Relocation Grants (Skills Incentive) Act The amendments in each of these Acts replaces references to the valuers registered under the Valuers Act 2003 (registered valuers) with references to qualified valuers. Qualified valuer is generally defined, for the purposes of the relevant provisions of those Acts, as persons having certain categories of membership with the Australian Valuers Institute, the Australian Property Institute or the Royal Institution of Chartered Surveyors. Health Insurance Levies Act 1982 The State Revenue and Other Legislation Amendment (Budget Measures) Act 2013 contained uncommenced amendments to the Health Insurance Levies Act 1982 that provided for an increase in the rate used to calculate the monthly levy payable under that Act by private health insurers. The amendments were intended to offset increased costs to the State caused by private health insurers reducing their rates for the treatment of privately insured patients in public hospitals. The insurers reversed their rate cuts and, therefore, it was not necessary to commence the amendments and hence the State Revenue and Other Legislation Amendment (Budget Measures) Act 2013 has been repealed. Insurance Protection Act 2001 Various provisions of the Insurance Protection Tax Act 2001 are repealed because they relate to a tax that was abolished on 1 July Part 4 provided for the registration of certain insurers liable to pay the tax and had ongoing effect but, as a result of the abolition of the tax, is no longer required. State and Territory Revenue Offices

18 2.1.7 Home Building and Duties Amendment (Loose-fill Asbestos Insulation Affected Premises) Act 2015 Act No.47 of 2015 The Home Building and Duties Amendment (Loose-fill Asbestos Insulation Affected Premises) Act 2015 received assent on 5 November The objects of this Act are to: a. amend the Home Building Act 1989 to provide a register of residential premises containing loosefill asbestos insulation (LFAI) and require warning signs to be displayed at premises that are included on the register; and b. amend the Duties Act 1997 to provide a duty concession on a purchase of replacement residential property by owners of residential premises that are acquired by an authority of the State because they contain LFAI. Amendment of Duties Act 1997 This Act inserts a new concession into Part 8 of Chapter 2 of the Duties Act 1997, by inserting sections 104E and 104F. Section 104E provides for a duty concession to a purchaser or transferee of residential property if the Chief Commissioner is satisfied that the purchaser or transferee is the owner of LFAI-affected residential property acquired by an authority of the State. Section 104E provides that any ad valorem duty chargeable to the purchaser or transferee in connection with the replacement residential property is to be reduced by the amount of ad valorem duty that (but for section 308 of that Act) would have been chargeable to the authority of the State in connection with the acquisition of the LFAI-affected property by the authority. Section 308 of the Duties Act 1997 exempts the Crown in right of the State from liability to pay duty under that Act State Revenue Legislation Amendment Act 2016 Act No.14 of 2016 The State Revenue Legislation Amendment Act 2016 received assent on 11 May Unless otherwise stated, the amendments commence on the date of assent. The Act makes amendments to the Duties Act 1997, the First Home Owner Grant (New Homes) Act 2000, the Land Tax Management Act 1956, the Payroll Tax Act 2007, the Taxation Administration Act 1996, and the Unclaimed Money Act The amendments: a. make further provision relating to exemptions from duty for corporate reconstruction transactions, b. provide for a reduction in duty on agreements for the sale or transfer of securities where a transfer to which the agreement applies is a corporate consolidation transaction, State and Territory Revenue Offices

19 c. extend the availability of the first home owner grant in cases where the new home being purchased or built is a substantially renovated home or a home built to replace demolished premises, d. further provide for the application of the land tax principal place of residence exemption to unoccupied land intended to be the owner s principal place of residence, e. extend an exemption from payroll tax applying to wages paid by a wholly-owned subsidiary of a local council to wages paid by a body corporate wholly owned by two or more local councils, f. amend the Taxation Administration Act 1996 to extend a requirement for the Chief Commissioner of State Revenue (the Chief Commissioner) to pay interest on a refund made to a taxpayer (following a successful objection or review) to members of a group to which the taxpayer belongs under the Land Tax Management Act 1956 or the Payroll Tax Act 2007, g. enable the Chief Commissioner to accept payment of amounts that are not unclaimed money for the purposes of that Act (because they are $100 or less) and to enable owners to recover those amounts, and h. enable the owner of unclaimed money that has been paid to the Chief Commissioner to apply for that money to be repaid even though the right to the money has been extinguished. Amendment of Duties Act 1997 Corporate consolidation Prior to the amendments, the exemption for transactions consolidating corporate groups under a new head corporation was limited to transfers. The amendments extend the exemption to antecedent agreements. Agreements are often entered into for Commonwealth tax purposes. This amendment commenced on the day the Bill was introduced into Parliament, that is, on 22 May Corporate reconstruction The amendments extend the corporate reconstruction exemption to transfers directly between a custodian of a responsible entity of a managed fund and another member of the corporate group. This will eliminate the need for two transfers for some managed funds. Two transfers were required in order to achieve the intended commercial outcome within existing exemptions and concessions prior to this amendment. This amendment commenced on the day the Bill was introduced into Parliament, that is, on 22 May First Home New Home The amendment changes the definition of a substantially renovated home in the Duties Act 1997 to have the same meaning as that used in the First Home Owner Grant (New Homes) Act This amendment commenced 1 July State and Territory Revenue Offices

20 Amendment of First Home Owner Grant (New Homes) Act 2000 Substantially renovated homes The first home owner grant (FHOG) is payable on the purchase or building of a new home. A new home includes a substantially renovated home and a home built to replace demolished premises if the sale of the home is a taxable supply for GST purposes. This was a requirement of the original Commonwealth FHOG scheme. It has the effect of denying the grant to a purchaser who would otherwise be eligible but is purchasing from a vendor who is not an enterprise for GST purposes. The vendor s GST status should not affect a first home buyer s eligibility for the grant. The amendment removes the requirement for the sale to be a taxable supply. This is consistent with the First Home New Home duties scheme, and the FHOG scheme in Victoria. This amendment commenced 1 July Amendment of Land Tax Management Act 1956 Intended principal place of residence A landowner may claim a land tax exemption for up to four years for a parcel of land acquired for the purpose of building a principal place of residence. If the land is occupied by tenants, the four year period of exemption did not commence until the tenants vacate the land and building work physically commences. It was often difficult for owners to provide evidence of the precise date building work commenced. The amendments remove the requirement that building work must physically commence, so that the exemption will apply as soon as the property is vacated by the former tenants. This amendment applies from the 2017 tax year. The amendments also authorise any reassessments required to revoke this concession if a taxpayer does not use and occupy the intended principal place of residence within four tax years to be made more than five years after the initial assessment under s.9(3)(c) of the Taxation Administration Act Amendment of Payroll Tax Act 2007 Exemption for subsidiaries of councils A wholly owned subsidiary of a local government body is exempt from payroll tax provided the subsidiary s activities are conducted under a written arrangement requiring the subsidiary to pay the council an amount equivalent to payroll tax. This ensures a level playing field with private sector competitors. The amendments extend this exemption to companies that are wholly owned by two or more councils. There are a small number of these arrangements between neighbouring councils, used to achieve efficiencies in carrying out council functions. References to other legislation State and Territory Revenue Offices

21 Prior to the amendment, grouping of Governments departments and authorities was based in part on classifications under the former Public Sector Employment and Management Act 2002 (PSEMA). The amendment updates the reference to the Government Sector Employment Act 2013, following the repeal of the PSEMA on 24 February Amendment of Taxation Administration Act 1996 The amendments authorise the payment of interest when a member of a group becomes entitled to a refund of tax as a direct result of a successful objection by another member of the group. This will result in the same interest treatment for all refunds to members of a group which arise as a result of an objection lodged by one member of the group. Amendment of Unclaimed Money Act 1995 Small amounts Businesses holding unclaimed money of $100 or more are required to lodge a return and pay the money to the Office of State Revenue (OSR). However, most businesses voluntarily include smaller amounts in their returns, but OSR did not have authority to accept this money. The amendment allows amounts of less than $100 voluntarily paid to OSR as unclaimed money will be treated as unclaimed money for the purposes of claims for refunds by the owners of the money. Refunds after 6 years Owners of unclaimed money lodged with OSR had six years from the receipt of money by OSR to claim it. Beyond this time, OSR still processed the claim, but as an act of grace under Ministerial delegation, adding red tape and delay. The amendment makes unclaimed money claimed more than six years after receipt by OSR to be eligible for statutory refund Taxation Administration Amendment (Collection and Disclosure of Information to Commonwealth) Act 2016 Act The Taxation Administration Amendment (Collection and Disclosure of Information to Commonwealth) Act 2016 commenced on 1 July The object of this Act is to amend the Taxation Administration Act 1996 to enable the Chief Commissioner of State Revenue (the Chief Commissioner) to collect, and disclose to the Commissioner of Taxation of the Commonwealth (the Taxation Commissioner), information about the transfer of freehold and leasehold interests in real property situated in New South Wales. The information will be used by the Australian Taxation Office for the purposes of data-matching and ensuring compliance with the taxation laws of the Commonwealth. In addition, the information (which will include information about the nationality and residency of vendors and purchasers) will be used for the purposes of a National Register of Foreign Ownership of Land Titles to be administered by the Australian Taxation Office. The creation of a National Register was agreed to at the Council on Federal Financial Relations held on 16 October State and Territory Revenue Offices

22 The Act also provides for related amendments to the Conveyancing (Sale of Land) Regulation Amendment of Taxation Administration Act 1996 Division 2B (containing new sections 80C 80H) has been inserted into Part 9 of the Taxation Administration Act New Section 80C contains definitions for the purposes of the Division, including a definition of reportable information, which is information that is reportable by the State to the Taxation Commissioner under the provisions of the Taxation Administration Act 1953 (Cth) relating to the reporting by third parties of certain transactions. Under those provisions, information about transfers of freehold and leasehold interests in real property is reportable by a State or Territory to the Taxation Commissioner if the real property is situated in the State or Territory. The reportable information will include information relating to the nationality and residency of vendors and purchasers. New Section 80D overrides any restrictions on the collection and disclosure of reportable information in accordance with the Division that are imposed by any Act or law, including the Privacy and Personal Information Protection Act The section also makes it clear that information may be collected and disclosed in accordance with the new Division even if: a. the information is collected only for the purposes of disclosure to the Taxation Commissioner and is not collected under or in relation to the administration of any law of the State (except for the new Division), and b. the information is not disclosed in connection with the administration or execution of any law of the State (except for the new Division). New Section 80E enables the Chief Commissioner to collect reportable information and disclose it to the Taxation Commissioner, and enables the head of a Public Service agency to collect reportable information and disclose it to the Chief Commissioner. New Section 80F enables the Treasurer to direct the head of a Public Service agency to collect reportable information and disclose it to the Chief Commissioner. New Section 80G authorises the Chief Commissioner or the head of a Public Service agency to collect reportable information by requiring a person providing information for the purposes of a function carried out under a taxation law, or a law administered by the Minister to whom the Public Service agency is responsible, to provide the reportable information. For example, a person may be required by the Chief Commissioner or the head to provide the reportable information in connection with the lodgement of an instrument, or the making of an application, under such a law. New Section 80H extends various offences provided for in the Taxation Administration Act 1996 to persons required by the Chief Commissioner or the head of a Public Service agency to provide reportable information under proposed section 80G. Amendment of Conveyancing (Sale of Land) Regulation 2010 The Act also provides for related amendments to the Conveyancing (Sale of Land) Regulation 2010 to prescribe an implied term of a contract for the sale of land that requires a vendor to serve on the State and Territory Revenue Offices