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This is a Bill, not an Act. For current law, see the Acts databases.


DUTIES AMENDMENT (ABOLITION OF VENDOR DUTY) BILL 2005





                        New South Wales




Duties Amendment (Abolition of
Vendor Duty) Bill 2005


Contents

                                                                 Page
           1   Name of Act                                         2
           2   Commencement                                        2
           3   Amendment of Duties Act 1997 No 123                 2
  Schedule 1   Amendments                                          3
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.


                                                Clerk of the Legislative Assembly.
                                                Legislative Assembly,
                                                Sydney,                     , 2005




                             New South Wales




Duties Amendment (Abolition of
Vendor Duty) Bill 2005
Act No      , 2005




An Act to amend the Duties Act 1997 to abolish vendor duty, and duty on the disposal
of interests in land rich landholders, on and from 2 August 2005.




I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.


                           Chairman of Committees of the Legislative Assembly.
Clause 1      Duties Amendment (Abolition of Vendor Duty) Bill 2005




The Legislature of New South Wales enacts:
 1    Name of Act
           This Act is the Duties Amendment (Abolition of Vendor Duty) Act 2005.
 2    Commencement
           This Act is taken to have commenced on 2 August 2005.
 3    Amendment of Duties Act 1997 No 123
           The Duties Act 1997 is amended as set out in Schedule 1.




Page 2
Duties Amendment (Abolition of Vendor Duty) Bill 2005

Amendments                                                                  Schedule 1




Schedule 1              Amendments
                                                                                (Section 3)
[1]   Chapter 4, note
      Insert after the heading to Chapter 4:
                    Note. This Chapter charges duty (known as vendor duty) on certain
                    transactions. Vendor duty was introduced in 2004 and applied to certain
                    transactions occurring on or after 1 June 2004 (see clause 40 of
                    Schedule 1). Vendor duty was abolished on and from 2 August 2005.
                    Accordingly, vendor duty remains chargeable only on certain
                    transactions that occurred before that abolition date.

[2]   Section 145 Introduction
      Insert after section 145 (1):
            (1A)    The duty charged by this Chapter is abolished on and from
                    2 August 2005. However, the duty remains chargeable on certain
                    dutiable transactions that occurred before 2 August 2005.
[3]   Section 146 Transactions on which vendor duty is charged
      Insert "that occurs before 2 August 2005" after "a transfer of land-related
      property" in section 146 (1) (a).
[4]   Section 146 (1) (b)
      Insert ", but only if the transaction occurs before 2 August 2005" after "the
      following transactions".
[5]   Section 161
      Omit the section. Insert instead:
      161    Cancelled agreements
              (1)   An agreement for sale or transfer is not liable to vendor duty
                    under this Chapter if the Chief Commissioner is satisfied that:
                    (a) the agreement has been cancelled, and
                    (b) the agreement was not cancelled to avoid liability for
                          vendor duty by means of a subsequent agreement to
                          transfer (or by means of a transfer of) the same land-related
                          property to the transferee or to any associated person of the
                          transferee on or after 2 August 2005.
              (2)   If vendor duty has been paid on an agreement that is not liable to
                    vendor duty under this Chapter because of this section, the Chief
                    Commissioner must reassess and refund the duty if an application
                    for a refund is made within:


                                                                                  Page 3
                    Duties Amendment (Abolition of Vendor Duty) Bill 2005

Schedule 1          Amendments




                       (a) 5 years after the initial assessment, or
                       (b) 12 months after the agreement is cancelled,
                       whichever is the later.
              (3)      In this section:
                       cancelled means rescinded, annulled or otherwise terminated
                       without completion.
[6]   Section 162 Cancelled transfers
      Omit section 162 (1). Insert instead:
              (1)      A transfer of land-related property that is effected by a written
                       instrument is not liable to vendor duty under this Chapter if the
                       Chief Commissioner is satisfied that:
                        (a) the transfer instrument has been cancelled or abandoned,
                             and
                       (b) the transfer instrument was not cancelled or abandoned to
                             avoid liability for vendor duty by means of a subsequent
                             transfer of the same land-related property to the transferee
                             or to any associated person of the transferee on or after
                             2 August 2005.
[7]   Section 163 Overview
      Insert after "Chapter 4." in the note to section 163:
                       As vendor duty was abolished on and from 2 August 2005, duty is
                       chargeable under Part 3 only on a disposal by a person of an interest in
                       a land rich landholder that was made before that date.

[8]   Section 163N What is a "relevant disposal"?
      Insert after section 163N (1):
             (1A)      However, the disposal is a relevant disposal only if it was made
                       before 2 August 2005.




Page 4
Duties Amendment (Abolition of Vendor Duty) Bill 2005

Amendments                                                         Schedule 1




[9]   Schedule 1 Savings, transitional and other provisions
      Insert at the end of clause 1 (1):
                    Duties Amendment (Abolition of Vendor Duty) Act 2005




                                                                           Page 5


 


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