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Legislative Assembly for the ACT: 2017 Week 12 Hansard (Thursday, 26 October 2017) . . Page.. 4417 ..

transactions that will not be processed under the barrier free model. Currently, some dutiable transactions, including declarations of trust and grants of a commercial lease with premium, are not registrable or optionally registrable with Access Canberra.

The act currently applies a 14-day period to lodge and pay duty for these transactions, which may be less practical for customers because the period applies from the beginning of the transaction. In contrast, payment for barrier free transactions is not required until registration of the transfer of title. This bill will apply the previous lodgement and payment period of 90 days to these non-barrier free transactions, which is a more practical time frame for these types of transactions.

The bill also amends the legislation to support taxation practices and policies of government. Amendments to the Duties Act will clarify how differential rates of duty can apply when the ownership of an entity with land holdings changes. The current provisions do not allow for the application of the commercial duty rate in such circumstances, which can result in some taxpayers being treated unequally.

As the government has cut the duty rates for commercial transactions under $1.5 million, there are now just two sets of rates. This could create confusion about whether landholder acquisitions use the commercial or non-commercial rate. The amendment will make it clearer that the correct rate of duty is the commercial rate. Further, the bill will remove provisions for obsolete or ceased schemes, including the motor vehicle dealers authorisation scheme and the first home saver accounts scheme.

The bill will amend the Payroll Tax Act to align the definition of “exempt rate” for motor vehicle allowance with that of New South Wales. The amendment reflects the Commonwealth’s new measure to set the exempt rate by legislative instrument rather than by regulation and is in line with the payroll tax harmonisation initiative. The bill also makes a number of other minor and technical amendments, including inserting definitions of veteran, vintage and historic vehicles, and removing references to repealed acts.

The bill will ensure our new conveyance model is administered effectively and efficiently for the benefit of both taxpayers and administrators. The bill will also provide greater certainty to the operation of the territory’s tax laws by updating legislation to rectify minor errors and clarify processes. The government has a long-term commitment to improving the territory’s tax system through the revenue collection transformation program. This bill is a further representation of how this commitment is being fulfilled. I commend the bill to the Assembly.

Debate (on motion by Ms Lawder) adjourned to the next sitting.

Education Amendment Bill 2017

Ms Berry, pursuant to notice, presented the bill, its explanatory statement and a Human Rights Act compatibility statement.

Title read by Clerk.

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