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1
Stamp Amendment
STAMP AMENDMENT BILL 1996
.
EXPLANATORY NOTES
GENERAL OUTLINE
Policy Objectives
The objectives of the Bill are to amend the Stamp Act 1894 to--
(a) provide an increase in the mortgage stamp duty exemption for
loans for the purchase or construction of a principal place of
residence from the first $70,000 to the first $100,000 of a loan
where a first home;
(b) provide an exemption from mortgage stamp duty on refinancing
of the first $100,000 outstanding under a mortgage secured on the
borrower's principal place of residence; and
(c) establish occupancy conditions for claiming the home finance
exemption.
Reasons for the Bill
The amendments will ensure that there is a statutory basis for the stamp
duty exemptions.
In addition, technical amendments to the current exemption are needed to
establish qualifying occupancy criteria, allow for partial claims and ensure
that the exemption can not be availed of for later loans and advances for
non-qualifying purposes.
Achievement of Objectives
The amendments are required to implement an expanded mortgage
stamp duty exemption for first home loan finance and a new exemption for
home loan refinancing.
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Stamp Amendment
Alternatives to the Bill
The policy objectives can only be achieved by statutory amendment.
Estimated Cost for Government Implementation
The measures involve an ongoing estimated annual cost of $5.5M.
Consistency with Fundamental Legislative Principles
There are some matters for which the commissioner has a
discretion--see section 69J(3) and (4) and section 69M.
Consultation
None
NOTES ON PROVISIONS
Clause 1. The short title is Stamp Amendment Bill 1996.
Clause 2. The amendments in the bill are to commence on a date to be
proclaimed.
Clause 3. The bill amends the Stamp Act 1894.
Clause 4. This clause specifies the purpose of the provisions inserted by
the Bill (new section 69C) and provides for--
(a) the definitions used in the provisions inserted by the bill (new
sections 69D to 69H), e.g. the definition of "home borrower"
which introduces new occupancy conditions for the "home
mortgage" exemption (new section 69F);
(b) the calculation of the "home mortgage" and "home refinance
mortgage" exemptions (see clause 5) to be apportioned where the
residence is not a first home or principal home for all the owners
(new section 69I);
(c) an obligation to notify the Commissioner and for duty to apply
where the occupancy conditions for the "home mortgage"
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Stamp Amendment
exemption are not met; a penalty for failure to so notify the
Commissioner of 10 penalty units; as an alternative to proceeding
for an offence, a Commissioner imposed penalty to a maximum
amount of the additional duty reassessed in disallowing the
exemption; and discretion for the Commissioner to waive or
reduce duty in appropriate cases (new section 69J);
(d) the "home mortgage" exemption not to extend to other loans and
additional advances (new section 69K);
(e) the "home refinance mortgage" exemption not to extend to other
loans and additional advances; duty to apply to amounts
borrowed on refinancing in excess of the outstanding balance or
$100,000; and a crediting of duty paid on an earlier security
instrument in certain circumstances (new section 69L);
(f) if a "home mortgage" and "home refinance mortgage" consists
of more than one instrument, the Commissioner to apply the
exemption among those instruments as he considers appropriate
(new section 69M).
Clause 5. This clause replaces the existing exemption for instruments
securing advances to a person for the purchase or construction of the
person's principal place of residence and increases the maximum exempt
amount for a "home mortgage" for a first home to $100,000 (exemption
4). The clause also inserts the new exemption for a "home refinance
mortgage" (exemption 4A).
© The State of Queensland 1996