The new Act made a number of amendments to the legislation listed on this page.
Amendment of Duties Act 1997
Exemption from Duty if exempt under section 274
The amendment provides for an exemption from duty for a declaration of a bare trust over dutiable property if the transfer of dutiable property to the bare trust is exempt under section 274 of the Duties Act 1997.
Exemptions – break-up of marriages and other relationships
The amendment provides that the exemption from duty when there has been a break-up of a marriage or other relationship in certain circumstances carries over to a person’s legal representative if the person dies.
Qualified Investors
The amendment provides that a qualified investor in a unit trust scheme includes a person who holds units in the scheme:
- as a statutory body established under a law of the Commonwealth or a State or Territory and prescribed by the regulations, or
- in a way approved by the Chief Commissioner if the Chief Commissioner is satisfied the units are held by a wholly owned subsidiary or wholly owned trust of a person otherwise meeting the definition of a Qualified Investor.
This amendment is taken to have commenced on 1 February 2024.
Amendment of Land Tax Management Act 1956
Reduction in land value for flats on mixed development land or mixed-use land
The amendment makes it clear that the reduction in land value for flats on mixed development land or mixed-use land, the land must not be owned or jointly owned by a person in the person’s capacity as a trustee of a special trust.
Amendment of Payroll Tax Act 2007
Groups arising from former entities
The amendment extends the anti-phoenix provisions by including a corporation that has executed a deed of company arrangement under the Corporations Act 2001 (Cth) to the definition of former entity.
Joint and several liability
The amendment replaces references to a “former corporation” with references to “former entity”.
General Practitioner Services
The amendment expands the rebate by counting general practitioners’ services covered by the Department of Veterans' Affairs towards the bulk-billing threshold. These services are similar to bulk billed Medicare services in that no gap or out of pocket fee is charged to the patient. This is done by replacing references to “a bulk billing arrangement” with references to “prescribed billing arrangements” which is newly defined to include “a bulk billing arrangement” and “veterans arrangement” for general practitioner services for which a rebate of payroll tax applies.
Amendment of Taxation Administration Act 1996
Additional penalties for tax avoidance schemes
The amendment introduces a penalty on a taxpayer if the Chief Commissioner issues a notice of assessment or reassessment of a tax liability on the basis that a scheme is a tax avoidance scheme. The amount of penalty will depend on the amount of tax avoided, the length of the period during which the person was involved in the tax avoidance scheme, the deterrent effect the penalty may have and another matter that the Chief Commissioner considers relevant.
Valuation of foreign currency
The amendment sets out how an amount may be converted if the amount involved in the calculation of tax is not in Australian currency to include the use of another rate of exchange as determined by the Chief Commissioner.
Amendment of Fines Act 1996
Penalty notices and penalty reminder notices sent to recently reported postal address and returned to sender
The amendment includes certain definitions, including “recently reported postal address” for when a penalty notice and penalty reminder notice has been sent to an address and has been returned to the sender.
Amendment of State Debt Recovery Act 2018
Referable Debt
The amendment clarifies that a referable debt includes a fee, charge or other amount that is declared to be a referable debt by order by the Chief Commissioner or by another Act.
Corporate Collective Investment Vehicle (CCIV): Duties, Land Tax & Payroll Tax
The amendment clarifies the tax treatment of CCIVs and makes it clear that each sub-fund of a CCIV established under the Corporations Act 2001 is taken to be a unit trust scheme of which:
- the CCIV is the trustee, and
- the business, assets and liabilities of the sub-fund are the trust property, and
- the members of the sub-fund are beneficiaries.
Duties Act 1997
For a sub-fund that is taken to be a unit trust:
- a share in the CCIV that is referable to the sub-fund is taken to be a unit in the unit trust, and
- a shareholder of the share, as a member of the sub-fund is taken to be a unit holder of the unit in the unit trust, and
- the rights, entitlements, obligations and other characteristics attaching to the share are taken to be the same rights, entitlements, obligations and other characteristics attaching to the unit, and
- a winding up of the sub-fund is taken to be a winding up of the unit trust scheme, and
- a person who has an entitlement to a distribution of property in the event of the distribution of all the property of the sub-fund is taken to have the same entitlement to a distribution of property in the event of the distribution of all the property of the unit trust scheme.
A CCIV is taken to be a separate person in relation to each unit trust scheme of which the trustee is the trustee.
The amendment clarifies that duty chargeable for the transfer of dutiable property or a declaration of trust involving a custodian or agent, or sub-custodian of a CCIV is taken to be a trustee.
The amendment makes it clear that anything done by or held by a unit trust scheme includes a reference to anything done by of held by a custodian of a CCIV that is taken to be a unit trust scheme.
The amendment provides that a resolution to be passed by a sub-fund of a CCIV must be disregarded when assessing whether a sub-fund has voting control over another sub-fund of the CCIV.
The amendment states that when assessing whether a sub-fund of a CCIV is a foreign person, the Foreign Acquisitions and Takeover Act 1975 (Cth) must be read subject to section 5A of the Duties Act 1997.
The amendment provides that for a corporate reconstruction transaction between a trustee of a corporation and another corporation that is a member of the same corporate group, a trustee includes a reference to a custodian of a CCIV.
Land Tax Management Act 1956
For a sub-fund that is taken to be a unit trust:
- a share in the CCIV that is referable to the sub-fund is taken to be a unit in the unit trust, and
- a shareholder of the share, as a member of the sub-fund is taken to be a unit holder of the unit in the unit trust, and
- the rights, entitlements, obligations and other characteristics attaching to the share are taken to be the same rights, entitlements, obligations and other characteristics attaching to the unit.
A sub-fund of a CCIV is taken to be a special trust.
Payroll Tax Act 2007
The amendment clarifies that wages do not include amounts paid or payable by a CCIV to its corporate director. Corporate director of a CCIV means the public company that is the director of the CCIV.
