Page 4272 - Week 13 - Thursday, 17 November 2005
The Clerk having announced that the terms of the petition would be recorded in Hansard and a copy referred to the appropriate minister, the petition was received.
Revenue Legislation Amendment Bill 2005 (No 2)
Mr Quinlan, pursuant to notice, presented the bill, its explanatory statement and a Human Rights Act compatibility statement.
Title read by Clerk.
MR QUINLAN (Molonglo—Treasurer, Minister for Economic Development and Business, Minister for Tourism, Minister for Sport and Recreation, and Minister for Racing and Gaming) (10.32): I move:
That this bill be agreed to in principle.
It is appropriate that today I should be introducing a Revenue Legislation Amendment Bill. The Revenue Legislation Amendment Bill amends the Duties Act, the Land Tax Act, the Payroll Tax Act and the Rates Act.
There are changes to three areas of the Duties Act. The first relates to general insurance, where an error in the definition of general insurer has been corrected. Also the definition of insurer has been amended to clarify which insurers are required to register with the Commissioner for ACT Revenue under this act.
The second change to the Duties Act addresses inequities in relation to buyers of new motor vehicles. Currently duty is imposed on the registration of a motor vehicle on the greater of the purchase price or the market value at the time of purchase. Inequities are created due to the broad range of prices declared for new motor vehicles and the difficulty in determining a universally accepted market value. Further issues arise when one buyer has greater negotiating powers than another, where there are seasonal price variations and where manufacturers’ incentives to dealers to increase turnover can temporarily affect the sale price of a vehicle.
To rectify this situation, the bill introduces measures to calculate duty on the application for registration of new motor vehicles on the list price. This is the priced fixed by the manufacturer, importer or main distributor in the ACT as the retail selling price in the ACT. This ensures that similar amounts of duty are assessed on similar new vehicles, regardless of pricing variations and the bargaining power of the purchaser. This is the same basic method of calculation used in South Australia, Western Australia and Queensland. It will reduce compliance costs and create administrative efficiencies for government and will increase certainty for taxpayers. Purchasers of used motor vehicles will not be affected by this measure and duty will continue to be assessed on the greater of the purchase price or market value.
I am pleased to announce that the third change to the Duties Act introduces an exemption from duty on the cost of specific motor vehicle modifications made to accommodate the needs of people with a disability. The value of modifications made after a vehicle is purchased and registered does not currently attract duty. However, duty is payable on the