2012 Further amendments
State Revenue Legislation Further Amendment Act 2012
The State Revenue Legislation Amendment Act 2012, which received assent on 29 October 2012, contains amendments to:
Partnership interests
The amendments clarify the arrangements for the charging of duty on a transfer of a partnership interest that occurs as a result of the retirement of a partner in an existing partnership or the admission of a new partner to an existing partnership.
The amendments provide that a transfer of a partnership interest is taken to occur if a new partnership is formed because of the retirement of a partner in an existing partnership or the admission of a new partner to an existing partnership.
Generally, duty is chargeable as follows:
- in the case of a new partnership formed on the retirement of a partner in an existing partnership, as if the retiring partner's partnership interest were transferred to the partners in the new partnership
- in the case of a new partnership formed on the admission to an existing partnership of a new partner, as if the new partner's partnership interest were transferred to the partners in the new partnership.
Accordingly, the partners in the new partnership are liable as transferees for the duty.
No duty is chargeable under the new provisions on the retirement of a partner from an existing partnership if the partnership is wound up on that retirement, sometimes referred to as a general dissolution of the partnership.
The amendment changes the method by which partners are given a credit on duty paid in respect of a transfer of a land-related asset that is made as result of a transfer of a partnership interest. Under the new method, the dutiable value of the partnership interest transferred is reduced by the dutiable value of the land-related asset transferred, but only if ad valorem duty has been paid, or is payable, on the transfer of the land-related asset. A minimum duty of $50 is payable in respect of the transfer of the partnership interest.
Managed investment schemes
The amendment provides for the charging of duty of $50 in respect of:
- a transfer of dutiable property from a trustee of a wholly owned sub-trust of a managed investment scheme to a custodian of the trustee of that wholly owned sub-trust
- a transfer of dutiable property from a custodian of the trustee of a wholly owned sub-trust of a managed investment scheme to that trustee.
New heavy vehicle trailers
The amendment exempts new heavy vehicle trailers from vehicle registration duty. A heavy vehicle trailer is new if it has not been previously registered in the State or another Australian jurisdiction.
Amendment of Health Insurance Levies Act 1982
The current provisions provide for the annual adjustment of the health insurance levy based in part on statistics published by the Australian Statistician. Some of those statistics are now published on a biannual basis, rather than on a quarterly basis. The amendments update the adjustment provisions accordingly.
The amendments change the annual adjustment date from 1 February to 1 April (as the relevant biannual report is published in February). Consequential changes are made to CPI adjustment provisions.
The amendments also permit the annual percentage change for a particular year to be prescribed by order of the Governor if the Minister certifies that it is necessary to prescribe the rate because the statistical information required to calculate the rate referred to in the Health Insurance Levies Act 1982 is not available, or for any other reason.
The amendment allows an application for the regional relocation grant to be made in respect of a purchase of vacant land in a regional area, that is intended to be the site of a home. The laying of the foundations of the regional home must commence within 26 weeks (or such longer period as the Chief Commissioner may approve) after the purchase is completed. The maximum value of the vacant land must not exceed $450,000.
The amendment allows the transfer of, or a grant of, a long term lease in respect of a regional home to be treated as a purchase of a regional home. Accordingly, the purchase of the lease can qualify as a regional relocation. A lease of land is a long term lease if and only if the Chief Commissioner is satisfied that the lease gives the lease holder a degree of permanency and security of tenure that is equivalent to an estate in fee simple in the land.
The amendment provides that, if an application for a regional relocation grant is made by 2 or more persons as joint owners of a regional home, only one of them has to relocate from a metropolitan area.
The amendment makes it clear that the Chief Commissioner can make a compromise assessment, with the agreement of a taxpayer, in relation to taxpayer's liability for tax for the purpose of settling a dispute about taxation and that a decision not to make a compromise assessment cannot be the subject of an objection by the taxpayer.