Page 5066 - Week 14 - Tuesday, 17 November 2009
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MS GALLAGHER (Molonglo—Deputy Chief Minister, Treasurer, Minister for Health and Minister for Industrial Relations) (10:42), in reply: The Duties Amendment Bill makes four amendments to the Duties Act. The first is technical in nature and other amendments will ensure equitable treatment for taxpayers.
The first change made by these amendments simply repeals the section in the Duties Act that relates to the liability of territory entities to pay duty. These sections have been removed from the act as they are no longer required. Under the Taxation (Government Business Enterprises) Act 2003, territory entities that are subject to territory taxes and charges are prescribed by regulation. Those entities prescribed by regulation will continue to be liable to duty.
The second amendment will remove the duty liability where an agreement for sale or transfer of dutiable property has been cancelled, terminated or abandoned. Currently, an agreement for sale and transfer of dutiable property is liable to duty when the agreement for sale and transfer has been cancelled, terminated or abandoned, and only in situations when an agreement is rescinded does the liability to duty cease.
This amendment will remove the liability to duty when an agreement for sale and transfer is cancelled, terminated or abandoned before the transfer has been completed. Where duty has already been paid in accordance with the Duties Act, taxpayers will be able to apply for a refund of the duty. This ensures equitable treatment for all taxpayers who find themselves in the situation where a transfer cannot be completed and they either cancel or rescind the agreement for sale or transfer.
The Australian government recently made changes to the Family Law Act to allow de facto couples access to the family law system. Under the Duties Act, the transfer of property made pursuant to a financial agreement under the Family Law Act on the dissolution, annulment or irretrievable breakdown of a marriage is exempt from duty. In line with the changes made by the Australian government, the third amendment to the Duties Act extends the exemption to de facto couples where dutiable property is transferred pursuant to a financial agreement under the Family Law Act.
The final amendment made by this bill revises some of the terminology in the motor vehicle provision in order to clarify the intention of the original legislation. Due to the changing nature of the motor vehicle industry, some confusion has arisen as to which type of vehicles are liable for the higher rate of duty.
Under the current provisions, passenger motor vehicles with a dutiable value over $45,000 are required to pay duty at a higher rate. However, some confusion as to which vehicles are passenger vehicles has arisen due to commonwealth vehicle classifications. Some vehicles with a commercial compliance plate were not charged the higher rate of duty as they were not regarded as passenger vehicles. Under the Duties Act, it was always conceivable that motor vehicles with a commercial compliance plate could also be passenger carrying vehicles. These amendments seek to clarify the original intention of the legislation in relation to which vehicles with a value of $45,000 or more are subject to the higher rate of duty.
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