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2013
THE LEGISLATIVE ASSEMBLY FOR
THE
AUSTRALIAN CAPITAL
TERRITORY
REVENUE LEGISLATION (TAX REFORM)
AMENDMENT BILL 2013
EXPLANATORY
STATEMENT
Revenue Legislation (Tax Reform) Amendment Bill 2013
Summary
The Revenue Legislation (Tax Reform) Amendment
Bill 2013 amends
the Land Tax Act 2004 and the Rates Act 2004 to enact the
Government’s taxation reform agenda outlined in the 2012-13
Budget.
Overview
The Government announced the ACT Taxation
Reform Package A fairer, simpler and more efficient taxation system in
the 2012-13 Budget to create a tax system that is sustainable for the Territory
over the long term. The reform package outlined a five year reform plan for the
Territory.
As part of the reforms, and more specifically in this Bill,
commercial land tax was abolished. Changes were made to the calculation of
general rates and non pensioners were provided with access to the Rates Deferral
Scheme.
Commercial Land Tax is being abolished to simplify the taxation
system and reduce red tape incurred by businesses. This Bill outlines changes
made to remove references to commercial land tax in the Land Tax Act
2004.
General Rates is used as the base on which to replace revenue
lost as a result of abolishing inefficient taxes. This Bill outlines changes
made to remove reference to the tax free threshold in the calculation of general
rates and Fire and Emergency Service Levy in the Rates Act
2004.
As a result of this Bill, the Rates Deferral Scheme will allow
non pensioners who satisfy the age, asset, income and equity tests, to defer
payments of their general rates.
Commencement Date
The
amendments will be effective from the day after the Bill’s
notification.
Details of the Revenue Legislation (Tax Reform) Amendment Bill 2013
Clause Notes
Clause 1 – Name of
Act
This is a technical clause that provides the title of the Act. The
name of the Act is
Revenue Legislation (Tax Reform) Amendment Act 2013.
Clause
2 – Commencement
This Act commences on the day after its
notification day.
Clause 3 – Legislation amended
This is
a technical clause stating that the legislation being amended are the
Land Tax Act 2004 and the Rates Act
2004.
Schedule 1 Legislation amended
Part 1.1 Land
Tax Act
Clause 1.1 – Omit section 9 (1) (c)
Commercial land
has been omitted from the types of land subject to land tax.
Clause 1.2
– Omit section 9 (4),
The definition of commercial land has been
omitted.
Clause 1.3 – Division 4.1 heading
This clause omits
the heading for Division 4.1.
Clause 1.4 –Division 4.2
Division
4.2 has been omitted as it contains references to land for commercial purposes,
which has been abolished.
Clause 1.5 – Dictionary, definition of
“qualifying parcel of land”
The definition of “qualifying
parcel of land” is in reference to Division 4.2, which has now been
omitted.
Part 1.2 Rates Act 2004
Clause 1.6 –
Section 14 (1)
This clause omits the part of section 14 (1) that contains
reference to the tax free threshold which has been removed in the calculation of
general rates.
Clause 1.7 – Section 14 (2)
This clause omits
the part of section 14 (2) that contain reference to the tax free threshold.
Clause 1.8 – Section 14 (2), formula
The formula for the
calculation of general rates is amended to the remove tax free
threshold.
Clause 1.9 – Section 14 (3), definition of
“threshold amount”
The definition of “threshold
amount” has been deleted.
Clause 1.10 – Amend Section 34
(1)
This clause substitutes the old Section 34 (1) which contained a
subsection (b) that referenced the threshold amount.
Clause 1.11
– Section 34 (3), formula
This clause removes the threshold amount (TA)
from the formula for calculating general rates.
Clause 1.12 –
Section 34 (4), definition of “threshold amount”
The definition
of “threshold amount” (TA) has been omitted.
Clause 1.13
– New section 46 (2) (f)
This clause expands the eligibility criteria
for rates deferral to include non pensioners who satisfy age, income, asset and
equity tests.
Clause 1.14 – New section 46 (9) and
(10)
Subsection 9 clarifies that the income threshold determination made by
the Minister under Section 46 (2) (f) is a disallowable instrument.
Clause 1.15 – New section 52 (1) (g)
This clause provides that
the Commissioner may revoke a rates deferral determination if the lessee does
not meet the criteria as set out in Section 46 (2) (f).
Clause 1.16
– Section 52 (3), new definitions
This clause inserts new definitions
for the “determined percentage”, the “determined value”,
“income” and the “income threshold amount”.
Clause 1.17 – Schedule 1, section 1.1 (2)
The reference to the
threshold amount (TA) has been omitted.
Clause 1.18 – Schedule 1,
section 1.1 (2), formula
The tax free threshold amount (TA) has been removed
from the formula for the calculation of the Fire and Emergency Service
Levy.
Clause 1.19 – Schedule 1, section 1.1 (3), definition of TA
(threshold amount)
The definition of the threshold amount has been
omitted.
Clause 1.20 – Schedule 1, section 3.1 (3), formula
The
threshold amount has been omitted from the formula of the calculation of the
Fire and Emergency Service Levy.
Clause 1.21 – Schedule 1, section
3.1 (4), definition of TA (or threshold amount)
The reference to the
threshold amount has been deleted from the definitions for the formula of the
calculation of the Fire and Emergency Service Levy.