Page 1566 - Week 06 - Thursday, 3 May 1990
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DAY OF NEXT MEETING
Motion (by Mr Collaery) agreed to:
That the Assembly, at its rising, adjourn until Tuesday, 29 May 1990, at 2.30 pm, unless the Speaker fixes an alternative day or hour of meeting on receipt of a request in writing from an absolute majority of members.
STAMP DUTIES AND TAXES (AMENDMENT) BILL 1990
MR DUBY (Minister for Finance and Urban Services) (10.41): Mr Speaker, I present the Stamp Duties and Taxes (Amendment) Bill 1990. I move:
That this Bill be agreed to in principle.
Mr Speaker, this Bill amends the Stamp Duties and Taxes Act 1987. The Stamp Duties and Taxes Act 1987 imposes stamp duty or tax in the ACT on a limited number of instruments and transactions relating to the conveyance of land, the transfer of marketable securities, the effecting of insurance and the transfer of motor vehicles. The proposed amendments, which give effect to budget proposals of the former Government, involve the introduction of both revenue raising and anti-avoidance provisions. However, one announced budget measure, namely stamp duty on the increase in the unimproved value of land following a change in lease purpose, has not been included at this time pending the Assembly's consideration of the Bills relating to lease administration in the ACT.
The revenue raising measures cover the taxing of sales of ACT businesses and altering the incidence of tax on motor vehicles sold by motor dealers from the purchaser to the dealer. These measures are expected to result in additional revenue of $1.8m in 1990-91.
Under existing legislation, duty is payable only on the real property and chattels component transferred as part of a sale of business. The proposed amendments will extend this and impose duty on the entire consideration paid for the business or on the net value of the business, whichever is the higher. Because stamp duty is already imposed on the transfer of crown and other leases, shares and motor vehicles, the effect of these provisions is to impose duty on the remaining ACT business assets such as plant and equipment, stock in trade, business licences and goodwill, less the value of ACT liabilities assumed by the acquirer. This approach is unique to the ACT because in the States duty is imposed on the full value of assets without regard for liabilities. Subject to the above concession, this
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