Page 166 - Week 01 - Wednesday, 17 February 1993
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between individuals, stamp duty is payable by the new owner on the registration of the vehicle in his or her name for the first time. Subsequent registrations in an owner's name are exempt.
Prior to 1 July 1990, the responsibility for paying duty in respect of new and used vehicles sold by licensed motor vehicle dealers rested with the purchaser of the vehicle. This changed from 1 July 1990, when motor vehicle dealers were made liable to pay the stamp duty and required to lodge with the Commissioner for ACT Revenue monthly returns providing details of sales of both new and used vehicles. Following the recent High Court decision I referred to in relation to the Business Franchise ("X" Videos) (Amendment) Bill 1993, the Government proposes to amend the liability provisions so that liability of dealers for duty applies only to trading in used vehicles.
Purchasers of new vehicles will become primarily responsible for the stamp duty on first registration. Dealers may, of course, continue to register new vehicles and pay the duty as a service to their customers, but they will no longer be liable under the Act to collect the duty. The amendment is a precautionary measure to respond to comments made by the High Court. The imposition of stamp duty on the transfer of used vehicles has already been challenged in the High Court, which has ruled that such duty is not an excise and therefore is not subject to section 90 of the Constitution. No such decision has been made in relation to new vehicles, and therefore it is considered prudent to exclude the trading of such vehicles from the scheme.
The Bill also provides a definition of the term "trading stock" and thereby clarifies the exemption provisions of the Stamp Duties and Taxes Act which have caused some confusion in the industry. The definition will have the effect of limiting a dealer's exemption from the payment of stamp duty to vehicles that are offered or exposed for sale. Vehicles used personally by the dealer or a member of the dealer's staff or for the general purpose of the dealer's business will not be exempt from stamp duty. These amendments will take effect from 1 April 1993. I now present the explanatory memorandum for the Bill.
Debate (on motion by Mr De Domenico) adjourned.
BUSINESS FRANCHISE (LIQUOR) BILL 1993
MS FOLLETT (Chief Minister and Treasurer) (3.26): Madam Speaker, I present the Business Franchise (Liquor) Bill 1993.
Title read by Clerk.
MS FOLLETT: I move:
That this Bill be agreed to in principle.
The Liquor Tax Act 1991 together with the Liquor Act 1975 provide the legislative framework for licensing persons selling liquor in the ACT. Prior to 1 January 1992, liquor fees were assessed annually on purchases by licensees during the previous financial year. This, together with deferred payment arrangements, in effect allowed liquor licensees to trade for up to 23 months before the fees passed on to consumers became payable to the Territory. The Territory was therefore exposed to losses through bankruptcies and bad debts in the liquor industry.
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