Windfall Gains Tax and State Taxation and Other Acts Further Amendment Bill 2021
Passed and Assented to
Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

i

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

TABLE OF PROVISIONS Clause Page

Part 1—Preliminary 1

1 Purposes 1 2 Commencement 3 3 Definitions 3 4 Taxation Administration Act 1997 7 5 Act binds the Crown 7

Part 2—Imposition of windfall gains tax 8

6 Imposition of windfall gains tax 8 7 When does liability for windfall gains tax arise? 8 8 Who is liable for windfall gains tax? 8

Part 3—Assessment of windfall gains tax 9

Division 1—Rate of windfall gains tax 9

9 What is the rate of windfall gains tax? 9

Division 2—Determining taxable value uplift 9

10 What is the taxable value uplift of land? 9 11 What is the value uplift of land? 9 12 CIV1 and CIV2—rateable land and non-rateable leviable land 10 13 CIV1 and CIV2—non-rateable non-leviable land 10 14 Valuation of separate occupancies 11 15 Value uplift of land not separately valued 11

Division 3—How is windfall gains tax assessed? 12

16 Windfall gains tax assessed on aggregated basis and apportioned 12

17 Assessment of joint owners of land 13 18 Assessment of trustees 13

Division 4—Grouping provisions 13

19 Assessment of windfall gains tax in relation to groups 13 20 Constitution of groups 13 21 Groups of corporations, trusts and both 14 22 What are related corporations? 14

Clause Page

ii

23 What is a controlling interest in a corporation? 15 24 Further provisions for determining whether corporations are

related corporations 16 25 What are related trusts? 17

Division 5—General 18

26 Notice of errors in notice of assessment 18

Part 4—Deferral of windfall gains tax 20

Division 1—Preliminary 20

27 Definitions 20 28 Meaning of excluded dutiable transaction 21 29 Meaning of no consideration dutiable transaction 21 30 Meaning of relevant charitable land transaction 22

Division 2—Deferral of payment 23

31 Persons other than relevant transferees may elect to defer payment of windfall gains tax 23

32 Deferred windfall gains tax and accrued interest must be paid to Commissioner by due date 24

33 Apportionment of deferred windfall gains tax and rolled over windfall gains tax where there is a registration of a plan of subdivision of WGT land 25

34 Tax default if deferred windfall gains tax or rolled over windfall gains tax, and accrued interest, not paid on time 26

Division 3—General 26

35 Interest payable on deferred windfall gains tax 26

Part 5—Exemptions and waivers 28

Division 1—Residential land exemption 28

36 What is residential land? 28 37 Exemption in relation to residential land 31

Division 2—Other exemptions 32

38 Exemptions in relation to rezoning errors 32 39 Exemptions in relation to pre-existing contracts of sale and

options 33 40 Exemptions in relation to rezonings underway before 15 May

2021 33

Division 3—Waivers 35

41 Waiver for charitable land 35

Clause Page

iii

Part 6—General 37

42 Windfall gains tax is a first charge on land 37 43 Secretary to provide rezoning information to Commissioner 38 44 Regulations 38

Part 7—Amendment of Duties Act 2000 40

45 Private vehicle used to convey incapacitated person 40 46 New section 233CA inserted 40 47 Statute law revision—Duties Act 2000 41

Part 8—Amendment of Essential Services Commission Act 2001 42

48 New Part 7D inserted 42

Part 9—Amendment of Gambling Regulation Act 2003 43

49 Heading to Part 4 of Chapter 6A amended 43 50 Division 2 of Part 4 of Chapter 6A substituted 43 51 Hospitals and Charities Fund and Mental Health Fund 43 52 New Part 4A inserted in Chapter 6A 44 53 Other permitted disclosures 53 54 New Part 38 inserted in Schedule 7 54

Part 10—Amendment of Land Tax Act 2005 56

Division 1—Build to rent development benefits 56

55 Definitions 56 56 New Division 7 of Part 2 inserted 57 57 What is the rate of land tax? 58 58 New Division 3B of Part 3 inserted 59 59 New Division 2A of Part 4 inserted 61

Division 2—Exemptions and concessions 69

60 Section 71 repealed 69 61 Charitable institutions and purposes 69

Division 3—Gender-exclusive and gender-restrictive clubs 70

62 Land owned and occupied by non-racing clubs 70 63 New section 73B inserted 70

Division 4—Statute law revision 72

64 Statute law revision—Land Tax Act 2005 72

Part 11—Amendment of State Taxation and Mental Health Acts Amendment Act 2021 74

65 Payroll of group over threshold where section 87(2) approval in force—employers covered by joint return are not all of the same type 74

Clause Page

iv

66 Amount of payroll tax to be paid each month 74 67 Monthly payroll tax payable where section 87(2) approval in

force—employers covered by joint return are all of same type 74 68 Monthly payroll tax payable where section 87(2) approval in

force—employers covered by joint return are not all of the same type 74

69 New section 67A inserted 75

Part 12—Amendment of Taxation Administration Act 1997 76

Division 1—Build to rent development amendment 76

70 Definitions 76

Division 2—Keno tax amendments 76

71 Meaning of taxation laws 76 72 Offset of refund against other liability 76 73 Criminal liability of officers of bodies corporate—failure to

exercise due diligence 77 74 Supreme Court—limitation of jurisdiction 77

Division 3—Tax offsets 77

75 Definitions—emergency tax relief 77 76 New section 95CA inserted 77

Division 4—Grounds for objection 78

77 Grounds for objection 78 78 Supreme Court—limitation of jurisdiction 78

Division 5—Administrative overpayments 79

79 Definitions 79 80 New section 129A inserted 79

Division 6—Windfall gains tax amendments 80

81 Definitions 80 82 Meaning of taxation laws 81 83 Notice of assessment or withdrawal of assessment 81 84 Notice of certain joint assessments 81 85 Application for refunds 81 86 Amount of penalty tax 82 87 Arrangements for payment of tax 82 88 Property clearance certificate 82 89 Objection 84 90 Grounds for objection 84 91 Objections lodged out of time 84 92 Objections concerning the value of property 85 93 Refund of amount 85 94 Supreme Court—limitation of jurisdiction 85

Clause Page

v

Part 13—Amendment of Valuation of Land Act 1960 86

95 Definitions 86 96 New Part IIB inserted 86 97 Notice of valuation 89 98 New section 15AA inserted 89 99 Who may object? 90 100 Time for lodging objection 90 101 Commissioner to be notified of certain objections 90

Part 14—Amendment of Water Act 1989 91

102 Application for review 91 103 Review of required payments 91 104 New Part 18 inserted 91

Part 15—Amendment of Water Industry Act 1994 93

105 Non application to Basin water charges 93 106 Application of Commonwealth provisions 93 107 New Part 11 inserted 94

Part 16—Renaming of Act and repeal of amending provisions 95

108 Renaming of this Act 95 109 Section 1 substituted 95 110 Repeal of amending provisions 95

═════════════

Endnotes 96

1 General information 96

1

Windfall Gains Tax and State Taxation

and Other Acts Further Amendment Act 2021†

No. of 2021

[Assented to ]

The Parliament of Victoria enacts:

Part 1—Preliminary 1 Purposes

The purposes of this Act are— (a) to impose a windfall gains tax on the

increase in the value of land resulting from a rezoning; and

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

2

(b) to amend the Duties Act 2000 to make further provision in relation to the exemption from duty for vehicles that are specially converted for wheelchair access; and

(c) to amend the Essential Services Commission Act 2001 in relation to the functions of the Essential Services Commission; and

(d) to amend the Gambling Regulation Act 2003 to alter the tax arrangements in relation to keno; and

(e) to amend the Land Tax Act 2005 (i) to introduce a land tax concession and

an exemption from the absentee owner land tax surcharge for land used for certain long-term rental housing developments; and

(ii) in relation to the exemption from land tax for non-racing clubs; and

(iii) to make other miscellaneous amendments to that Act; and

(f) to make statute law revision amendments to the State Taxation and Mental Health Acts Amendment Act 2021; and

(g) to amend the Taxation Administration Act 1997

(i) as a consequence of the amendments to the Gambling Regulation Act 2003; and

(ii) as a consequence of the amendments to the Land Tax Act 2005; and

(iii) to provide for tax offsets in relation to emergency tax relief measures; and

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

3

(iv) to clarify that grounds for objection do not apply to emergency tax relief measures; and

(v) to provide for the recovery of administrative overpayments; and

(vi) as a consequence of windfall gains tax; and

(h) to amend the Valuation of Land Act 1960 as a consequence of windfall gains tax; and

(i) to amend the Water Act 1989 as a consequence of amendments to the Water Industry Act 1994; and

(j) to amend the Water Industry Act 1994 in relation to the approval and determination of charges for the provision of certain water services.

2 Commencement (1) Section 1 and this section and Parts 7, 8, 10, 11,

12 (other than Divisions 2 and 6), 14 and 15 come into operation on the day after the day on which this Act receives the Royal Assent.

(2) Part 9 and Division 2 of Part 12 come into operation on 15 April 2022.

(3) The remaining provisions of this Act come into operation on 1 July 2023.

3 Definitions (1) In this Act—

capital improved value has the same meaning as in the Valuation of Land Act 1960;

charitable land means land that is— (a) owned by a charity; and

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

4

(b) used and occupied by a charity exclusively for charitable purposes;

charity means— (a) a charitable institution; or (b) a person who holds land on trust for

charitable purposes; CIV1—see sections 12(a) and 13(1)(a); CIV2—see sections 12(b) and 13(1)(b); controlling interest

(a) in relation to a corporation—see section 23; or

(b) in relation to a trust—see section 25(2); corporation has the same meaning as in section 9

of the Corporations Act; discretionary trust has the same meaning as in

section 3(1) of the Land Tax Act 2005; excluded rezoning means—

(a) a rezoning between schedules in the same zone; or

(b) a rezoning that causes land to be brought within the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987; or

(c) the first rezoning after 1 July 2023 of land that was in the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987 immediately before that date; or

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

5

(d) a rezoning that causes land that was not in a public land zone to be in a public land zone; or

(e) a rezoning that causes land that was in a public land zone to be in a different public land zone; or

(f) a rezoning that causes land to be in a zone declared under subsection (2)(a) to be an excluded zone; or

(g) a rezoning of land that, immediately before the rezoning, was in a zone declared under subsection (2)(b);

general valuation has the same meaning as in the Valuation of Land Act 1960;

group means a group constituted under Division 4 of Part 3;

joint owners means persons who are owners of land jointly or in common, whether as partners or otherwise;

non-rateable leviable land has the same meaning as in the Fire Services Property Levy Act 2012;

non-rateable non-leviable land has the same meaning as in the Valuation of Land Act 1960;

owner, in relation to land, means— (a) if the land is under the Transfer of

Land Act 1958—the registered proprietor of the land within the meaning of section 4(1) of that Act; or

(b) if the land is not under the Transfer of Land Act 1958—the holder of an estate in fee simple in the land;

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

6

Planning Minister means the Minister administering Part 3 of the Planning and Environment Act 1987;

planning scheme means a planning scheme in force under the Planning and Environment Act 1987;

public land zone means a public land zone under a planning scheme;

rateable land has the same meaning as in the Local Government Act 1989;

related corporation—see section 22; related trust—see section 25(1); rezoning means an amendment of a planning

scheme that causes land to be in a different zone from the zone that it was in immediately before the amendment;

taxable value uplift—see section 10; valuation authority has the same meaning as in

the Valuation of Land Act 1960; value uplift—see section 11; Victoria Planning Provisions has the same

meaning as in section 3(1) of the Planning and Environment Act 1987;

WGT event means a rezoning other than an excluded rezoning;

windfall gains tax means tax imposed by section 6;

zone means a zone under a planning scheme.

Part 1—Preliminary

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

7

(2) The Treasurer, by notice published in the Government Gazette, may declare—

(a) a zone to be an excluded zone for the purposes of paragraph (f) of the definition of excluded rezoning in subsection (1); and

(b) a zone to be a zone for the purposes of paragraph (g) of the definition of excluded rezoning in subsection (1).

4 Taxation Administration Act 1997 This Act is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Act and other taxation laws.

5 Act binds the Crown (1) This Act binds the Crown in right of Victoria and,

so far as the legislative power of the Parliament permits, the Crown in all its other capacities.

(2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.

Part 2—Imposition of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

8

Part 2—Imposition of windfall gains tax 6 Imposition of windfall gains tax

Windfall gains tax is imposed on land that is rezoned by a WGT event.

Note

Part 5 sets out exemptions and waivers from windfall gains tax.

7 When does liability for windfall gains tax arise? (1) Liability for windfall gains tax arises when the

WGT event occurs. (2) For the purposes of this Act, a WGT event occurs

when the rezoning that constitutes the WGT event takes effect under the Planning and Environment Act 1987.

Notes

1 Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice.

2 See Part 4 for deferrals of windfall gains tax.

8 Who is liable for windfall gains tax? The owner of the land when the WGT event occurs is liable to pay windfall gains tax on the land.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

9

Part 3—Assessment of windfall gains tax

Division 1—Rate of windfall gains tax 9 What is the rate of windfall gains tax?

The rate of windfall gains tax is set out in the following table.

Item Taxable value uplift Rate of windfall gains tax

1 Not more than $100 000

Nil

2 More than $100 000 but less than $500 000

62⋅5% of that part of the taxable value uplift that exceeds $100 000

3 $500 000 or more 50% of the taxable value uplift

Division 2—Determining taxable value uplift 10 What is the taxable value uplift of land?

The taxable value uplift of land is the value uplift of the land less any deductions prescribed by the regulations.

11 What is the value uplift of land? The value uplift of land is determined in accordance with the formula—

VU = CIV2 - CIV1

where— CIV1 has the meaning given in— (a) section 12(a) for rateable land and

non-rateable leviable land; and (b) section 13(1)(a) for non-rateable

non-leviable land;

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

10

CIV2 has the meaning given in— (a) section 12(b) for rateable land and

non-rateable leviable land; and (b) section 13(1)(b) for non-rateable

non-leviable land; VU is the value uplift of the land. 12 CIV1 and CIV2—rateable land and non-rateable

leviable land For rateable land or non-rateable leviable land that is rezoned by a WGT event—

(a) CIV1 is the capital improved value of the land contained in the valuation in force under Part II or IIA of the Valuation of Land Act 1960 (as the case may be) immediately before the WGT event occurs; and

(b) CIV2 is the capital improved value of the land contained in a supplementary valuation under Part IIB of the Valuation of Land Act 1960.

13 CIV1 and CIV2—non-rateable non-leviable land (1) For non-rateable non-leviable land that is rezoned

by a WGT event— (a) CIV1 is the capital improved value of the

land as at the relevant date contained in a valuation made for and on behalf of the Commissioner by the Valuer-General or a valuer nominated by the Valuer-General; and

(b) CIV2 is the capital improved value of the land as at the relevant date taking the WGT event into account contained in a valuation made for and on behalf of the Commissioner by the Valuer-General or a valuer nominated by the Valuer-General.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

11

(2) For the purposes of this section, the Commissioner may request a valuation of any non-rateable non-leviable land from the Valuer-General or a valuer nominated by the Valuer-General.

(3) In this section— relevant date means the date as at which rateable

land or non-rateable leviable land was valued for the purposes of the valuation referred to in section 12(a).

14 Valuation of separate occupancies (1) For the purposes of assessing windfall gains tax,

the Commissioner may— (a) use a valuation made under the Valuation of

Land Act 1960 that has determined the value of each separate occupancy on land; and

(b) include in a notice of assessment a description of the occupancy on land.

(2) A valuation of occupancy on land made under the Valuation of Land Act 1960 is taken to be a valuation of land for the purposes of this Act.

15 Value uplift of land not separately valued (1) This section applies if— (a) it is necessary to determine CIV1 for any

land (the relevant land); and (b) the relevant land was not valued separately

as at the relevant date; and (c) the relevant land formed part of an

occupancy that was valued separately as at the relevant date.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

12

(2) CIV1 for the relevant land is determined in accordance with the formula—

CIV1= AL AO

×CIVO

where— AL is the total area of the relevant land; AO is the total area of the occupancy; CIV1 is CIV1 for the relevant land; CIVO is the capital improved value of the

occupancy as at the relevant date. (3) In this section—

relevant date means the date as at which rateable land or non-rateable leviable land was valued for the purposes of the valuation referred to in section 12(a);

total area, in relation to relevant land or an occupancy, means the area of the relevant land or occupancy plus the sum of the areas of each floor of a building on the relevant land or occupancy (whether above or below ground) other than the ground floor.

Division 3—How is windfall gains tax assessed? 16 Windfall gains tax assessed on aggregated basis and

apportioned (1) Subject to this Act, a taxpayer is to be assessed for

windfall gains tax on the aggregated taxable value uplift of all the land owned by the taxpayer that is rezoned by a WGT event.

(2) The windfall gains tax is to be apportioned to land on each title in the same proportion as the proportion the taxable value uplift of that land bears to the aggregated taxable value uplift.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

13

(3) In determining the aggregated taxable value uplift of all the land owned by the taxpayer that is rezoned by a WGT event, any negative taxable value uplifts must be ignored.

17 Assessment of joint owners of land Joint owners of land are to be jointly assessed for windfall gains tax on the land as if the land were owned by a single person, without regard to—

(a) the separate interest of each joint owner; or (b) any other land owned by any joint owner

(either alone or jointly with someone else). 18 Assessment of trustees

Subject to Division 4, if land is held on trust, the trustee is to be assessed for windfall gains tax on the aggregated taxable value uplift of all the land that is subject to the trust, without regard to any land held by the trustee for any other trust or for the trustee's own benefit.

Division 4—Grouping provisions 19 Assessment of windfall gains tax in relation to

groups (1) Members of a group are to be assessed for

windfall gains tax on the aggregated taxable value uplift of all the land owned by members of the group that is rezoned by a WGT event.

(2) Every member of the group is jointly and severally liable to pay windfall gains tax assessed in relation to the group.

20 Constitution of groups (1) A group is constituted by all the persons forming a

group that is not part of any larger group.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

14

(2) If a person is a member of 2 or more groups, the members of all the groups together constitute a group.

(3) The fact that a person is not a member of a group constituted under a provision of this Division does not prevent that person from being a member of a group constituted under another provision of this Division.

21 Groups of corporations, trusts and both (1) Corporations constitute a group if they are related

corporations. (2) If trusts are related trusts, the trustees of those

trusts constitute a group. (3) A corporation and a trustee of a trust constitute a

group if the same person has, or the same persons have together, a controlling interest in the corporation and a controlling interest in the trust.

22 What are related corporations? (1) For the purposes of this Division, corporations are

related corporations in any of the circumstances specified in this section.

(2) Corporations are related corporations if one of those corporations—

(a) controls the composition of the board of the other corporation; or

(b) is in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other corporation; or

(c) holds more than 50% of the issued share capital of the other corporation.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

15

(3) Corporations are related corporations if the same person has, or the same persons have together, a controlling interest in each of the corporations. Note

Controlling interest is defined in section 23.

(4) Corporations are related corporations if— (a) more than 50% of the issued share capital of

one of those corporations (corporation 1) is held by the other corporation (corporation 2) together with the shareholders of corporation 2; and

(b) the percentage of the issued share capital of corporation 2 held by shareholders of corporation 1 is more than the difference between 50% and the percentage of the issued share capital of corporation 1 held by corporation 2.

(5) Corporations are related corporations if one of those corporations is a related corporation of a corporation of which the other of those corporations is a related corporation (including a corporation that is a related corporation of the other of those corporations because of one or more other applications of this subsection).

23 What is a controlling interest in a corporation? For the purposes of this Division, a person has, or persons have together, a controlling interest in a corporation if—

(a) that person, or those persons acting together, can control the composition of the board of the corporation; or

(b) that person is, or those persons acting together are, in a position to cast or control the casting of more than 50% of the

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

16

maximum number of votes that might be cast at a general meeting of the corporation; or

(c) that person holds, or those persons acting together hold, more than 50% of the issued share capital of the corporation.

24 Further provisions for determining whether corporations are related corporations

(1) For the purposes of this Division— (a) corporations may be related corporations

whether or not they own land in Victoria; and

(b) a reference to the issued share capital of a corporation does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital; and

(c) subject to paragraphs (d) and (e), any shares held or power exercisable by a person or corporation as a trustee or nominee for another person or corporation are taken to be also held or exercisable by the other person or corporation; and

(d) any shares held or power exercisable by a person or corporation by virtue of the provisions of any debentures of another corporation, or of a trust deed for securing any issue of any such debentures, must be disregarded; and

(e) any shares held or power exercisable by, or by a nominee for, a person or corporation (not being held or exercisable as mentioned in paragraph (d)) are taken to be not held or exercisable by that person or corporation if—

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

17

(i) the ordinary business of that person or corporation includes the lending of money; and

(ii) the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with an associate of that person or corporation within the meaning of the Corporations Act; and

(f) the composition of a corporation's board is taken to be controlled by a person or another corporation if the person or other corporation, by the exercise of a power exercisable whether or not with the consent or concurrence of any other person, can appoint or remove all or a majority of the members of the board.

(2) Subsection (1)(f) does not limit the circumstances in which the composition of a corporation's board is to be taken to be controlled by a person or another corporation.

25 What are related trusts? (1) For the purposes of this Division, trusts are

related trusts if the same person has, or the same persons have together, a controlling interest in each of the trusts.

(2) A person has, or persons have together, a controlling interest in a trust if—

(a) that person, or those persons acting together, can control the appointment of the trustee; or

(b) that person is, or those persons together are, entitled to more than 50% of the income or capital of the trust.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

18

(3) For the purposes of subsection (2)(b), the Commissioner may determine that a person is, or persons together are, entitled to more than 50% of the income or capital of a discretionary trust even if that person or those persons have no present legal or equitable entitlement to the income or capital.

Division 5—General 26 Notice of errors in notice of assessment (1) A person who is served with a notice of

assessment of windfall gains tax in relation to a WGT event must notify the Commissioner of any error or omission in the notice relating to—

(a) any other land owned by the person when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice; and

(b) in the case of a notice of assessment for land jointly owned by 2 or more owners, any other land owned by the joint owners when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice; and

(c) if the person is a member of a group, any land owned by another member of the group when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice.

(2) Notice of the error or omission must be given to the Commissioner within 60 days from the date of issue of the notice of assessment.

Part 3—Assessment of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

19

(3) If there is more than one owner of the land specified in the notice of assessment, it is sufficient compliance with this section if one of the owners provides the required information on behalf of all of them.

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

20

Part 4—Deferral of windfall gains tax

Division 1—Preliminary 27 Definitions

In this Part— accrued interest means interest calculated under

section 35; dutiable transaction has the same meaning as in

the Duties Act 2000; excluded dutiable transaction has the meaning

given by section 28; excluded relevant acquisition means—

(a) a relevant acquisition described in section 78(1)(a) of the Duties Act 2000 that is an acquisition of an interest in a landholder solely from a pro rata increase in the interests of—

(i) all unit holders in the landholder where the landholder is a unit trust scheme; or

(ii) all shareholders of the landholder where the landholder is a company; or

(b) a relevant acquisition described in section 78(1)(b) of the Duties Act 2000;

landholder has the same meaning as in section 71 of the Duties Act 2000;

no consideration dutiable transaction has the meaning given by section 29;

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

21

relevant acquisition has the same meaning as in section 78 of the Duties Act 2000;

relevant charitable land transaction has the meaning given by section 30;

relevant transferee means a person who makes an election under section 29(2) or 30(2);

rolled over windfall gains tax means the amount of windfall gains tax a relevant transferee has elected to assume under section 29(2) or 30(2);

WGT land means the whole or part of the land on which the windfall gains tax is imposed under section 6.

28 Meaning of excluded dutiable transaction For the purposes of this Part, each of the following dutiable transactions is an excluded dutiable transaction

(a) the acquisition of an economic entitlement in relation to WGT land under Part 4B of Chapter 2 of the Duties Act 2000;

(b) the transfer of an estate in fee simple in WGT land in relation to which the transferee is registered as the registered proprietor pursuant to an application under section 49 of the Transfer of Land Act 1958;

(c) a no consideration dutiable transaction; (d) a relevant charitable land transaction. 29 Meaning of no consideration dutiable transaction (1) For the purposes of this Part, a dutiable

transaction relating to land is a no consideration dutiable transaction if—

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

22

(a) the transaction is a transaction relating to WGT land for which there is no consideration; and

(b) the transferee under the transaction makes an election under subsection (2).

(2) The transferee may elect to assume the liability to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part by making the election to the Commissioner in a form approved by the Commissioner.

(3) An election under subsection (2) must be made on or before the date of completion of the dutiable transaction.

(4) On completion of the dutiable transaction and acceptance by the Commissioner of an election under subsection (2)—

(a) the transferee becomes liable to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part; and

(b) the liability of the transferor to pay the deferred windfall gains tax and any accrued interest payable under this Part is extinguished.

(5) In this section— consideration has the same meaning as in

section 32A of the Duties Act 2000. 30 Meaning of relevant charitable land transaction (1) For the purposes of this Part, a dutiable

transaction relating to charitable land is a relevant charitable land transaction if—

(a) a WGT event has occurred in respect of the charitable land before the dutiable transaction and since that WGT event the

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

23

charitable land has been such land continuously and exclusively; and

(b) the transferee under the transaction will continue to use the land as charitable land; and

(c) the transferee under the transaction makes an election under subsection (2).

(2) The transferee may elect to assume the liability to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part by making the election to the Commissioner in a form approved by the Commissioner.

(3) An election under subsection (2) must be made on or before the date of completion of the dutiable transaction.

(4) On completion of the dutiable transaction and acceptance by the Commissioner of an election under subsection (2)—

(a) the transferee becomes liable to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part; and

(b) the liability of the transferor to pay the deferred windfall gains tax and any accrued interest payable under this Part is extinguished.

Division 2—Deferral of payment 31 Persons other than relevant transferees may elect to

defer payment of windfall gains tax (1) A person (other than a relevant transferee) who is

liable to pay windfall gains tax may elect to defer the payment of up to 100% of that tax.

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

24

(2) Subject to subsection (3), an election must be made to the Commissioner—

(a) in a form approved by the Commissioner; and

(b) before the day on which the windfall gains tax is payable.

(3) The Commissioner may accept an election on or after the day on which the windfall gains tax is payable.

(4) An election to defer the payment of the whole or part of the windfall gains tax under subsection (1) (including an election accepted by the Commissioner under subsection (3)) takes effect from the date on which the liability to pay the tax arises.

(5) A person who has deferred the payment of part of the windfall gains tax under this section must pay the part of the tax that has not been deferred by the day specified in the notice of assessment of windfall gains tax given to the person.

(6) If a part of the windfall gains tax that has not been deferred under this section is not paid by the day specified in the notice of assessment of windfall gains tax, the whole of the windfall gains tax becomes immediately payable as if the election of the deferral had never been made.

32 Deferred windfall gains tax and accrued interest must be paid to Commissioner by due date

(1) A person who has deferred the payment of the whole or part of windfall gains tax under section 31 must pay to the Commissioner the deferred amount and any accrued interest payable under this Part, within 30 days after—

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

25

(a) a dutiable transaction (other than an excluded dutiable transaction) occurs in relation to the WGT land; or

(b) a relevant acquisition (other than an excluded relevant acquisition) occurs in respect of a landholder who is the owner of the WGT land; or

(c) the day that is 30 years after the WGT event—

whichever occurs first. (2) A relevant transferee must pay to the

Commissioner the rolled over windfall gains tax and any accrued interest payable under this Part, within 30 days after—

(a) a dutiable transaction (other than an excluded dutiable transaction) occurs in relation to the WGT land; or

(b) a relevant acquisition (other than an excluded relevant acquisition) occurs in respect of a landholder who is the registered proprietor of the WGT land; or

(c) the day that is 30 years after the WGT event—

whichever occurs first. 33 Apportionment of deferred windfall gains tax and

rolled over windfall gains tax where there is a registration of a plan of subdivision of WGT land

(1) This section applies if— (a) the whole or a part of windfall gains tax is

deferred under this Part; and (b) there is a registration of a plan of subdivision

of the land in respect of which that tax is imposed.

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

26

(2) On the registration of the plan of subdivision, the whole or part of windfall gains tax deferred under this Part (including rolled over windfall gains tax), and any accrued interest payable under this Part, (the deferred tax) is taken to be apportioned to each lot created under the plan of subdivision by reference to the area each lot bears to all of the lots created under the plan of subdivision.

(3) In this section— lot has the same meaning as in the Subdivision

Act 1988. 34 Tax default if deferred windfall gains tax or rolled

over windfall gains tax, and accrued interest, not paid on time

A tax default occurs for the purposes of the Taxation Administration Act 1997 if a person does not pay—

(a) any windfall gains tax deferred under section 31, and any accrued interest, when due for payment under section 32(1); or

(b) any rolled over windfall gains tax, and any accrued interest, when due for payment under section 32(2); or

(c) the windfall gains tax that has not been deferred under section 31 by the day specified in the notice of assessment of windfall gains tax.

Division 3—General 35 Interest payable on deferred windfall gains tax (1) Windfall gains tax that is deferred in whole or in

part under this Part (including rolled over windfall gains tax) is subject to the payment of interest calculated on the deferred amount of the windfall gains tax on a daily basis.

Part 4—Deferral of windfall gains tax

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

27

(2) The amount of interest referred to in subsection (1) is to be calculated at the 10-year bond rate applying from time to time.

(3) For the purposes of this section, the 10-year bond rate in respect of any day is the average of the daily yields for the 10-year Treasury Corporation of Victoria bond (published from time to time by the Treasury Corporation of Victoria established under Part 2 of the Treasury Corporation of Victoria Act 1992) for the month of May in the financial year preceding the financial year in which the day occurs.

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

28

Part 5—Exemptions and waivers

Division 1—Residential land exemption 36 What is residential land? (1) For the purposes of this Division, residential land

is land that has a building affixed to it that in the Commissioner's opinion—

(a) is designed and constructed primarily for residential purposes; and

(b) may lawfully be used as a place of residence. (2) Land is also residential land for the purposes of

this Division if the Commissioner is satisfied that—

(a) a residence is being constructed or renovated on the land; and

(b) before the commencement of the construction or renovation—

(i) the land was capable of being lawfully used as a place of residence; or

(ii) there was a residence that was uninhabitable on the land; and

(c) on the completion of the construction or renovation, the land will be capable of being lawfully used as a place of residence.

(3) The Commissioner cannot be satisfied for the purposes of subsection (2)(a) unless a building permit has been issued for the construction or renovation.

(4) Despite subsections (1) and (2), land other than land used for primary production is not residential land unless the Commissioner is satisfied that the land is used primarily for residential purposes.

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

29

(5) Despite subsections (1) and (2) but subject to subsection (6), residential land does not include land that is capable of being used and occupied solely or primarily as—

(a) commercial residential premises and that may lawfully be used and occupied in that way; or

(b) a residential care facility and that may lawfully be used and occupied in that way; or

(c) a supported residential service and that may lawfully be used and occupied in that way; or

(d) a retirement village service and that may lawfully be used and occupied in that way.

(6) Subsection (5) does not apply to land in commercial residential premises, a residential care facility, a supported residential service or a retirement village on which there is a residence that is owned separately, and held on a separate title, from other land in the commercial residential premises, residential care facility, supported residential service or retirement village.

(7) In this section— commercial residential premises has the same

meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;

land used for primary production means land used primarily for—

(a) cultivation for the purpose of selling the produce of cultivation (whether in a natural, processed or converted state); or

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

30

(b) the maintenance of animals or poultry for the purpose of selling them or their natural increase or bodily produce; or

(c) the keeping of bees for the purpose of selling their honey; or

(d) commercial fishing, including the preparation for commercial fishing or the storage or preservation of fish or fishing gear; or

(e) the cultivation or propagation for sale of plants, seedlings, mushrooms or orchids;

residence means a building affixed to land that is designed and constructed primarily for residential purposes;

residential care facility means any premises— (a) in which— (i) a residential care service; or (ii) a multi purpose service—

within the meaning of the Aged Care Act 1997 of the Commonwealth, is operated by an approved provider within the meaning of that Act; and

(b) in respect of which an allocation of residential care places is in effect under Division 15 of that Act;

retirement village means a complex containing residential premises (whether or not including hostel units) predominantly or exclusively occupied, or available for occupation, by retired persons under—

(a) a residential tenancy agreement or any other lease or licence; or

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

31

(b) a right conferred by shares; or (c) the ownership of residential premises

subject to a right or option of repurchase on conditions restricting the subsequent disposal of the premises—

other than a complex or premises that is or are a residential care facility or supported residential service;

supported residential service has the same meaning as in the Supported Residential Services (Private Proprietors) Act 2010.

37 Exemption in relation to residential land (1) Windfall gains tax is not imposed on residential

land (whether on one or more titles) that does not exceed 2 hectares if the land is the only residential land owned by a taxpayer that is rezoned by a WGT event.

(2) If residential land (whether on one or more titles) owned by a taxpayer that is rezoned by a WGT event exceeds 2 hectares, the taxable value uplift of the land on each title for the purposes of this Act is to be adjusted in accordance with the formula—

AVU= VU ×( RL-2 RL

)

where— AVU is the adjusted taxable value uplift of the

residential land on that title; RL is the total area of all of the residential land

in hectares; VU is the taxable value uplift of the residential

land on that title calculated under Division 2 of Part 3.

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

32

Division 2—Other exemptions 38 Exemptions in relation to rezoning errors (1) Windfall gains tax is not imposed on land that is

rezoned by a WGT event if the rezoning constituting the WGT event is caused by an amendment prepared under section 20A of the Planning and Environment Act 1987 to correct an obvious or technical error in the Victoria Planning Provisions or a planning scheme.

(2) If a correcting WGT event results in a negative value uplift to land on which windfall gains tax has been assessed in respect of an original WGT event, windfall gains tax is not imposed on the land in respect of the original WGT event and—

(a) the Commissioner must reassess the windfall gains tax liability accordingly; and

(b) the taxpayer is entitled to a refund of any windfall gains tax and interest paid in respect of the original WGT event.

(3) Subsection (2) applies only if the owner of the land at the time of the correcting WGT event is the same as the owner of the land at the time of the original WGT event.

(4) If payment of windfall gains tax affected by this section is deferred under Part 4, the Commissioner may make a reassessment under section 9 of the Taxation Administration Act 1997 for the purposes of this section more than 5 years after the initial assessment.

(5) In this section— correcting WGT event means a rezoning referred

to in subsection (1); original WGT event means a rezoning that is

corrected by a correcting WGT event.

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

33

39 Exemptions in relation to pre-existing contracts of sale and options

Windfall gains tax is not imposed on land that is rezoned by a WGT event if—

(a) the land is subject to a contract of sale entered into before 15 May 2021 that has not been completed by the transfer of the land before the WGT event occurred; or

(b) the land is subject to an option to enter into a contract of sale granted before 15 May 2021 that has not been exercised before the WGT event occurred or has been exercised and the contract of sale to which the option relates has not been completed before the WGT event occurred, but only if the terms of the contract of sale were settled at the time the option was granted.

40 Exemptions in relation to rezonings underway before 15 May 2021

(1) Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that—

(a) the planning scheme amendment constituting the rezoning was prepared by a Council; and

(b) a request for the amendment was created and registered in the Amendment Tracking System by the Council before 15 May 2021; and

(c) before 15 May 2021 the owner of the land— (i) approached the Council to request the

rezoning; and (ii) paid for, was liable to pay for, or had

otherwise performed or procured relevant work in relation to the rezoning; or

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

34

(iii) paid, or was liable to pay, relevant costs to support consideration of the rezoning; and

(d) the total value of the relevant work and relevant costs referred to in paragraph (c)(ii) and (iii) was not less than the threshold amount.

(2) Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that—

(a) the planning scheme amendment constituting the rezoning was prepared by or at the request of the Planning Minister; and

(b) the Planning Minister agreed before 15 May 2021 to prepare the amendment; and

(c) before 15 May 2021 the owner of the land— (i) approached the Planning Minister to

request the rezoning; and (ii) paid for, was liable to pay for, or had

otherwise performed or procured relevant work in relation to the rezoning; or

(iii) paid, or was liable to pay, relevant costs to support consideration of the rezoning; and

(d) the total value of the relevant work and relevant costs referred to in paragraph (c)(ii) and (iii) was not less than the threshold amount.

(3) In this section— Amendment Tracking System means the system

managed by the Department of Environment, Land, Water and Planning to register, track and process planning scheme amendments;

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

35

Council has the same meaning as in the Local Government Act 1989;

relevant costs means costs payable under regulation 6, 7 or 8 of the Planning and Environment (Fees) Regulations 2016;

relevant work means professional analysis or assessment that, in the Commissioner's opinion, is necessarily performed in preparing for or seeking a rezoning of land including but not limited to—

(a) surveying analysis; and (b) engineering analysis; and (c) traffic analysis; and (d) master planning analysis; and (e) Aboriginal cultural heritage

assessment; and (f) architectural analysis; and (g) environmental analysis—

but not including works done to the land itself, such as remediation or land clearing;

threshold amount means the lesser of— (a) 1% of the capital improved value of the

land immediately before the WGT event; or

(b) $100 000.

Division 3—Waivers 41 Waiver for charitable land (1) The Commissioner must waive windfall gains tax

and any interest payable under Part 4 in respect of charitable land if the land has remained as charitable land continuously for 15 years after the

Part 5—Exemptions and waivers

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

36

occurrence of the WGT event that gave rise to the liability for the tax.

(2) If part only of land has remained as charitable land continuously for 15 years after the occurrence of the WGT event, the waiver under this section applies only to that part.

(3) The Commissioner may make a reassessment of windfall gains tax under section 9 of the Taxation Administration Act 1997 for the purposes of this section more than 5 years after the initial assessment.

Part 6—General

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

37

Part 6—General 42 Windfall gains tax is a first charge on land (1) Unpaid windfall gains tax (including any interest

and penalty tax under the Taxation Administration Act 1997 and any accrued interest on deferral under Part 4) is a first charge on the land on which the tax is payable.

(2) The charge has priority over all other encumbrances to which the land is subject.

(3) If a person— (a) is a bona fide purchaser for value of land;

and (b) obtains a certificate from the Commissioner

under section 95AA of the Taxation Administration Act 1997 in respect of the land—

the charge does not secure any amount of windfall gains tax (including any interest and penalty tax) on the land in excess of the amount set out in the certificate.

(4) If the certificate states that a WGT event has occurred that rezones the land but any windfall gains tax on the land is yet to be assessed, subsection (3) does not apply in relation to any windfall gains tax payable on the land in relation to that WGT event.

Note

Notice of a charge under this section may be lodged with the Registrar under section 106B of the Transfer of Land Act 1958.

Part 6—General

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

38

43 Secretary to provide rezoning information to Commissioner

The Secretary to the Department of Environment, Land, Water and Planning—

(a) within 10 days after the Planning Minister receives an adopted planning scheme amendment that will cause a rezoning on its approval, must give the Commissioner a written notice setting out—

(i) the zoning changes to be caused by the amendment; and

(ii) a description of any land that will be affected by those zoning changes; and

(b) within 10 days after the approval of a planning scheme amendment that causes a rezoning, must give the Commissioner a written notice setting out—

(i) the zoning changes caused by amendment; and

(ii) a description of any land that is affected by those zoning changes; and

(iii) any other information about the zoning changes that is required by the Commissioner.

44 Regulations (1) The Governor in Council may make regulations

for or with respect to any matter or thing that is required or permitted to be prescribed or necessary to be prescribed to give effect to this Act.

Part 6—General

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

39

(2) Regulations made under this Act— (a) may be of general or limited application; (b) may differ according to differences in time,

place or circumstances.

Part 7—Amendment of Duties Act 2000

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

40

Part 7—Amendment of Duties Act 2000 45 Private vehicle used to convey incapacitated person

In section 233C(1) of the Duties Act 2000, after "subsection (2)" insert "or section 233CA(1)".

46 New section 233CA inserted After section 233C of the Duties Act 2000 insert

"233CA Private vehicle to be converted and used to convey incapacitated person

(1) Section 233C(1) applies to a vehicle that the Commissioner is satisfied will meet the requirements in section 233C(2) within 12 months from the application for registration or transfer of registration or a longer period approved by the Commissioner.

(2) A person who has received an exemption from the payment of duty under section 233C(1) for a vehicle referred to in subsection (1) must—

(a) within 30 days of the vehicle meeting the requirements in section 233C(2), provide the Commissioner with evidence of the meeting of those requirements; or

(b) lodge a written notice with the Commissioner within 30 days of becoming aware of any circumstances that may result in a requirement in section 233C(2) not being complied with.

Part 7—Amendment of Duties Act 2000

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

41

(3) A failure of a person to comply with subsection (2)(b) does not affect the Commissioner's power to exercise a discretion under subsection (1) or to reassess duty under subsection (4).

(4) If a requirement in section 233C(2) is not complied with as required under subsection (1)—

(a) the registration or transfer of registration of the vehicle is chargeable with duty; and

(b) the Commissioner may reassess duty on the registration or transfer of registration accordingly.".

47 Statute law revision—Duties Act 2000 (1) In the note at the foot of section 217(1) of the

Duties Act 2000, for "Road Safety (Vehicles) Regulations 2009" substitute "Road Safety (Vehicles) Regulations 2021".

(2) In section 250(1) of the Duties Act 2000, the definition of corporate group is repealed.

(3) In section 250(1) of the Duties Act 2000 insert the following definition— "corporate group means a parent corporation and

the subsidiaries of that parent corporation;".

Part 8—Amendment of Essential Services Commission Act 2001

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

42

Part 8—Amendment of Essential Services Commission Act 2001

48 New Part 7D inserted After section 66 of the Essential Services Commission Act 2001 insert

'Part 7D—Amendments consequential to repeal of Part 1B

of the Water Industry Act 1994 66A Commencement of Part

This Part comes into operation on 1 July 2024.

66B Functions of Commission—Essential Services Commission Act 2001 In section 10 of the Essential Services Commission Act 2001

(a) in paragraph (l), for "2007;" substitute "2007.";

(b) paragraph (m) is repealed. 66C Repeal of section 10A

Section 10A of the Essential Services Commission Act 2001 is repealed.

66D Repeal of Part This Part is repealed on 1 July 2025.'.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

43

Part 9—Amendment of Gambling Regulation Act 2003

49 Heading to Part 4 of Chapter 6A amended In the heading to Part 4 of Chapter 6A of the Gambling Regulation Act 2003, for "taxes" substitute "commission, supervision charge".

50 Division 2 of Part 4 of Chapter 6A substituted For Division 2 of Part 4 of Chapter 6A of the Gambling Regulation Act 2003 substitute

"Division 2—Commission 6A.4.2 Commission payable to sales agent (1) Any commission to a sales agent of a keno

licensee may be paid by the licensee only out of the licensee's share of keno revenue.

(2) For the purposes of subsection (1), a keno licensee's share of keno revenue is the keno licensee's keno revenue less the tax payable by the licensee under Part 4A on that keno revenue.".

51 Hospitals and Charities Fund and Mental Health Fund

(1) In section 6A.4.4(1) of the Gambling Regulation Act 2003, for "amount paid into the Consolidated Fund under section 6A.4.2(2)(a)" substitute "amount of keno tax paid into the Consolidated Fund".

(2) After section 6A.4.4(3) of the Gambling Regulation Act 2003 insert

"(4) In this section— keno tax has the meaning given by

section 6A.4A.1.".

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

44

52 New Part 4A inserted in Chapter 6A After Part 4 of Chapter 6A of the Gambling Regulation Act 2003 insert

"Part 4A—Tax

Division 1—Introduction 6A.4A.1 Definitions

In this Part— free keno game means a keno game played

by a person without paying, wholly or in part, a monetary amount to play the game;

keno entity means any of the following— (a) a keno licensee; (b) a person authorised or permitted

to conduct a keno game, in Victoria or elsewhere, under the law of another State or a Territory;

(c) a person, or person of a class, prescribed by the regulations;

keno tax means tax imposed by this Part; multi-jurisdictional agreement has the

meaning given in section 6A.4A.11(1); net keno revenue—see section 6A.4A.2; net prizes, in relation to a free keno game,

means the prizes payable on the keno game minus the face value of the keno game;

participating jurisdiction means Victoria and another State or a Territory that enters into a multi-jurisdictional agreement;

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

45

registered keno entity means a keno entity that is registered under section 6A.4A.7.

6A.4A.2 Net keno revenue (1) For the purposes of this Part, the net keno

revenue of a keno entity in respect of a month is the amount calculated in accordance with the following formula—

NKR=TA-TP where—

NKR is the net keno revenue of the keno entity in respect of a month;

TA is the sum of— (a) the total amount received by the

keno entity in the month for keno games played by persons who were located in Victoria at the time of playing the keno games, including any amounts in respect of the face value of any free keno games played by those persons; and

(b) the total of any other amounts of a kind prescribed by the regulations to be TA;

TP is the sum of— (a) the total amount of all prizes paid

or payable in the month directly to persons who were located in Victoria at the time of playing the keno games, including net prizes paid in relation to free keno games, other than prizes paid into or out of a prize pool; and

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

46

(b) the total of all amounts received by the keno entity in the month for keno games played by persons who were located in Victoria at the time of playing the keno games—

(i) that are paid into a prize pool; and

(ii) that are required to be paid or payable as prizes to players of keno games (whether located in Victoria or elsewhere); and

(c) the total of any other amounts of a kind prescribed by the regulations to be TP.

(2) In determining the net keno revenue of a keno entity, any amounts in respect of GST payable by the entity in respect of supplies to which the revenue relates are to be included.

6A.4A.3 Foreign currency transactions For the purposes of this Part, if a payment to play a keno game is made in a currency other than Australian currency, the amount of the payment is to be converted to Australian currency at the exchange rate published by the Reserve Bank of Australia—

(a) on the day on which the payment is made; or

(b) if the rate is not published on that day, on the last day on which the rate was published before that day.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

47

6A.4A.4 Taxation Administration Act 1997 This Part is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Part and other taxation laws.

Note

This Part and regulations made under this Act for the purposes of this Part are a taxation law under the Taxation Administration Act 1997.

Division 2—Imposition and rate of tax 6A.4A.5 Imposition and rate of tax (1) Subject to section 6A.4A.6, tax is imposed

on the net keno revenue of a keno entity in respect of a month at the rate of 24·24%.

(2) The keno entity is liable to pay keno tax on the entity's net keno revenue.

Note

Under section 44 of the Taxation Administration Act 1997, tax is payable to the Commissioner of State Revenue referred to in section 62 of that Act, who also has the general administration of this Part (see section 63 of that Act).

6A.4A.6 Rollover of negative net keno revenue to subsequent month If the net keno revenue of a keno entity in respect of a month is a negative amount, that amount may be applied to reduce the net keno revenue of the keno entity in respect of the next or a subsequent month for the purposes of determining the keno entity's keno tax in respect of that next or subsequent month.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

48

Division 3—Registration and returns 6A.4A.7 Registration of keno entities (1) Subject to subsection (3), a keno entity must

apply to the Commissioner of State Revenue, in the form approved by that Commissioner, for registration under this Division before the relevant time. Penalty: 500 penalty units in the case of a

body corporate; 100 penalty units in any other case.

Note

Section 130B of the Taxation Administration Act 1997 applies to an offence against this subsection.

(2) For the purposes of subsection (1), the relevant time is—

(a) for a keno entity in existence at the commencement of this section that conducts keno games that may be played by a person located in Victoria, 1 May 2022; or

(b) for any other keno entity, the end of the first month in which the entity becomes liable to pay keno tax.

(3) A keno entity does not commit an offence against subsection (1) if the entity has a reasonable excuse for not applying for registration.

(4) The Commissioner of State Revenue must register a keno entity that applies under subsection (1).

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

49

6A.4A.8 Cancellation of registration by Commissioner of State Revenue

(1) The Commissioner of State Revenue, by written notice to a registered keno entity, may cancel the entity's registration under this Division for any reason the Commissioner of State Revenue thinks sufficient.

(2) A cancellation of registration has effect from the date specified for the purpose by the Commissioner of State Revenue in the notice of cancellation.

6A.4A.9 Cancellation of registration by registered keno entity

(1) A registered keno entity that ceases to incur any liability to pay keno tax and does not expect to incur any such liability in the future must, within 14 days after so ceasing—

(a) give written notice of that fact to the Commissioner of State Revenue; and

(b) unless previously lodged— (i) lodge a return for the final

month in respect of which they are liable to pay keno tax under section 6A.4A.5; and

(ii) pay any keno tax to which the return relates.

(2) The notice cancels the registered keno entity's registration under this Division on the day on which it is received by the Commissioner of State Revenue.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

50

6A.4A.10 Returns and payment of tax (1) Every keno entity that is registered or

required to apply for registration under this Division must, within 30 days after the end of each month—

(a) lodge with the Commissioner of State Revenue a return in respect of the month; and

(b) pay to the Commissioner of State Revenue any keno tax payable under section 6A.4A.5 on net keno revenue in respect of the month.

(2) A keno entity must lodge a return under subsection (1) even if no keno tax is payable in respect of the month.

(3) A return is to be in the form, and contain the information, determined by the Commissioner of State Revenue.

Division 4—General 6A.4A.11 Multi-jurisdictional agreements (1) The Treasurer may enter into an agreement

(a multi-jurisdictional agreement) with one or more other States or one or more Territories, or both, to establish and implement processes for achieving improvements in the assessment and collection of taxes, interest and penalties imposed by the participating jurisdictions on keno operations that are carried on in multiple jurisdictions.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

51

(2) A multi-jurisdictional agreement may— (a) provide for collection of taxes,

interest and penalties by a participating jurisdiction on behalf of other participating jurisdictions and for the distribution of amounts so collected; and

(b) provide for each participating jurisdiction to collect, on behalf of all participating jurisdictions, taxes, interest and penalties payable to those jurisdictions by keno entities whose businesses are based in the collecting jurisdiction; and

(c) provide for participating jurisdictions to undertake audits or investigations in respect of taxes, interest and penalties payable by a keno entity under the law of another participating jurisdiction; and

(d) authorise the performance of functions under this Act or the Taxation Administration Act 1997 by a specified authority of a participating jurisdiction, subject to subsection (4) and any other limitations specified in the agreement; and

(e) authorise the performance of functions under a specified law of another participating jurisdiction by the Commissioner of State Revenue, subject to any law of that jurisdiction and any other limitations specified in the agreement; and

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

52

(f) provide for participating jurisdictions to assist each other in making timely and accurate determinations of taxes, interest and penalties payable by sharing information available to them, including the results of audits and investigations and any other information of a kind specified in the agreement; and

(g) provide for any other measures or matters that the participating jurisdictions consider necessary or expedient for achieving improvements in the assessment or collection of taxes, interest and penalties or for implementing processes established by the agreement for that purpose.

(3) A multi-jurisdictional agreement operates for the period, and may be varied or terminated in such a manner, as the participating jurisdictions agree.

(4) A multi-jurisdictional agreement— (a) must be consistent with this Act and the

Taxation Administration Act 1997; and

(b) cannot authorise a participating jurisdiction—

(i) to make a binding determination of the amount of tax, interest or penalties payable by a keno entity under the laws of another participating jurisdiction; or

(ii) to take enforcement action in respect of tax, interest or penalties payable by a keno entity under the

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

53

laws of another participating jurisdiction.

6A.4A.12 Guidelines for determining location (1) The Commissioner of State Revenue may

from time to time publish guidelines, not inconsistent with this Act or the regulations, for determining the location of a person who plays a keno game conducted by a keno entity.

(2) Guidelines published under subsection (1) are not legislative instruments within the meaning of the Subordinate Legislation Act 1994.

6A.4A.13 Extraterritorial operation This Part applies in relation to a keno entity that is located outside Victoria.

6A.4A.14 Regulations The regulations may prescribe—

(a) methods for determining the location of persons playing keno games conducted by a keno entity; and

(b) persons or classes of persons that are keno entities; and

(c) amounts to be TA or TP for the purpose of net keno revenue.".

53 Other permitted disclosures In section 10.1.32(1)(ca) of the Gambling Regulation Act 2003

(a) after "Chapter 4" insert "or Part 4A of Chapter 6A";

(b) for "that Part" substitute "those Parts".

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

54

54 New Part 38 inserted in Schedule 7 After Part 37 of Schedule 7 to the Gambling Regulation Act 2003 insert

"Part 38—Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

38.1 Payment of taxes and commission (1) Section 6A.4.2, as in force immediately

before 15 April 2022, continues to apply in relation to the keno revenue received by a keno licensee before that date.

(2) For the purposes of the period beginning on Sunday 10 April 2022, a reference to a week in section 6A.4.2, as in force immediately before 15 April 2022, is taken to be a reference to the period of 5 days ending on Thursday 14 April 2022. Note

15 April 2022 is the date on which the keno tax provisions in Part 4A of Chapter 6A come into operation—see section 2(2) of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021.

(3) Any prizes payable but not yet paid by a keno licensee before 15 April 2022 that are deducted from the keno licensee's keno revenue for the purposes of determining an amount payable under section 6A.4.2 cannot be taken into account in determining the keno licensee's net keno revenue in respect of any period on or after that date.

(4) Section 6A.4A.6 does not apply in relation to any negative amount of keno revenue of a keno licensee arising at any time before 15 April 2022.

Part 9—Amendment of Gambling Regulation Act 2003

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

55

(5) This clause is in addition to, and does not take away from, section 14(2) of the Interpretation of Legislation Act 1984.

38.2 Hospitals and Charities Fund and Mental Health Fund A reference in section 6A.4.4(1) to the amount of keno tax paid into the Consolidated Fund includes, in relation to the 2021–22 financial year, amounts paid into the Consolidated Fund in respect of that financial year under section 6A.4.2(2)(a) as in force immediately before 15 April 2022 and as continued under clause 38.1.

38.3 Keno tax for 15–30 April 2022 Part 4A of Chapter 6A applies in relation to the period beginning on 15 April 2022 and ending on 30 April 2022 as if that period were a month.".

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

56

Part 10—Amendment of Land Tax Act 2005

Division 1—Build to rent development benefits 55 Definitions

In section 3(1) of the Land Tax Act 2005 insert the following definitions— "absentee owner land tax surcharge means the

surcharge rate of land tax for absentee owners;

affordable housing has the same meaning as in section 3AA of the Planning and Environment Act 1987;

BTR benefit means any of the following— (a) a concession from land tax under

section 70J; (b) an exemption from the absentee owner

land tax surcharge under section 70K; BTR development has the meaning given in

section 70A; BTR special land tax means land tax imposed

under Division 7 of Part 2; common area has the same meaning as in

section 3(1) of the Residential Tenancies Act 1997;

eligible BTR development has the meaning given in section 70B;

fifteen year eligibility requirement means the eligibility requirement specified in section 70B(2);

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

57

occupancy date, for an eligible BTR development, means the date on which an occupancy permit has been issued in respect of each of the dwellings that comprise the BTR development; Note

An eligible BTR development may have more than one occupancy date because of the application of section 70G.

renter has the same meaning as in section 3(1) of the Residential Tenancies Act 1997;

residential rental agreement has the same meaning as in section 3(1) of the Residential Tenancies Act 1997;

social housing has the same meaning as in section 4(1) of the Housing Act 1983;

suitable for occupancy has the meaning given in section 70E;".

56 New Division 7 of Part 2 inserted After Division 6 of Part 2 of the Land Tax Act 2005 insert

"Division 7—BTR special land tax 34H Imposition of BTR special land tax (1) BTR special land tax is imposed on land or

part of land in Victoria if— (a) a BTR benefit has been applied to the

land or part of land in anticipation of compliance with the fifteen year eligibility requirement; and

(b) due to a change in circumstances, the fifteen year eligibility requirement is not complied with.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

58

(2) The liability for BTR special land tax arises at the time of the change in circumstances.

(3) BTR special land tax is imposed on the land or part of land in addition to any other land tax imposed on the land or part of land under this Act.

34I Who is liable for BTR special land tax? The owner of land at the time of the change in circumstances referred to in section 34H(1)(b) is liable to pay BTR special land tax on the land or part of land.

34J When must BTR special land tax be paid? The day specified in a notice of assessment of BTR special land tax must not be less than 14 days after the day the notice is served on the taxpayer.

Note

Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice.

34K Division applies to land despite change in legal description This Division applies to land or part of land whether or not there has been a change in the legal description of the land or part of land.

Example

An example of a change in the legal description of land is the issuing of new certificates of title of land following a subdivision of the land.".

57 What is the rate of land tax? (1) In section 35(1) of the Land Tax Act 2005, after

"residential land tax" insert "or BTR special land tax".

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

59

(2) After section 35(3) of the Land Tax Act 2005 insert

"(4) BTR special land tax is determined in accordance with Division 3B.".

58 New Division 3B of Part 3 inserted After Division 3A of Part 3 of the Land Tax Act 2005 insert

"Division 3B—BTR special land tax 50B BTR special land tax—owner of land (1) The amount of BTR special land tax payable

by the owner of land is the sum of the amounts of BTR special land tax determined under subsection (2) in respect of each relevant year.

(2) The amount of BTR special land tax payable by the owner of land in respect of a relevant year is the amount determined using the formula—

SL=(Tt×BR)×(1+IRt)yd+1−t where—

SL is the BTR special land tax assessed for the owner of the land in respect of the relevant year;

T is the taxable value of the relevant land in the relevant year;

t is the number of the tax year in respect of which the BTR special land tax is being determined, calculated from the first year of benefit until the relevant year;

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

60

BR is the benefit rate of— (a) if the owner of land is an absentee

owner—3⋅275%; or (b) in any other case—1⋅275%; IR is the applicable interest rate for the

relevant year; yd is the year of default. (3) In this section—

applicable interest rate means the sum of— (a) the bond yield for the month of

January in the relevant year; and (b) the corporate bond spread as

at 31 December in the year preceding the relevant year;

bond yield means the 10-year Australian government bond yield, as published by the Reserve Bank of Australia;

corporate bond spread means the non-financial corporate BBB-rated bonds—spread to Australian Government Securities—10 year target tenor, as published by the Reserve Bank of Australia;

first year of benefit means the first tax year in which a BTR benefit was applied to the relevant land;

relevant land means the land or part of land which is no longer eligible for the BTR benefits due to a change in circumstances;

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

61

relevant year means a tax year that a BTR benefit applied to the relevant land;

year of default means the number of the tax year in which the relevant land ceased to be eligible for the BTR benefits, calculated from the first year of benefit until the year in which there was a change in circumstances.

Example

The BTR benefits are first applied to land in the 2027 tax year. The land ceases to be eligible for the BTR benefits in the 2035 tax year. The year of default is year 9.

50C Division applies to land despite change in legal description This Division applies to land or part of land whether or not there has been a change in the legal description of the land or part of land.

Example

An example of a change in the legal description of land is the issuing of new certificates of title of land following a subdivision of the land.".

59 New Division 2A of Part 4 inserted After Division 2 of Part 4 of the Land Tax Act 2005 insert

"Division 2A—Build to rent developments

70A What is a BTR development? A build to rent development (BTR development) is one or more buildings that are constructed or substantially renovated for the purpose of providing multiple dwellings for lease under residential rental agreements.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

62

70B What is an eligible BTR development? (1) An eligible build to rent development

(eligible BTR development) is a BTR development that provides at least 50 self-contained dwellings that are—

(a) fixed on the same parcel of land; and (b) owned by one owner or owned

collectively; and (c) subject to section 70D(2), managed by

a single management entity; and (d) suitable for occupancy on a date that is

on or after 1 January 2021 and before 1 January 2032; and

(e) rented or available for rent under a residential rental agreement in accordance with section 70F.

(2) An eligible BTR development must satisfy the requirements in subsection (1) for a continuous period of at least 15 years from the occupancy date of the eligible BTR development. Example

To be eligible for the BTR benefits, a BTR development that has dwellings suitable for occupancy on 1 December 2021 must satisfy the requirements specified in subsection (1) for a continuous period until 30 November 2036.

(3) An eligible BTR development includes the construction or substantial renovation of common areas provided for the use of residents of the dwellings in the eligible BTR development if the common areas and dwellings together satisfy the requirements in paragraphs (a), (b) and (c) of subsection (1).

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

63

70C When is a BTR dwelling owned collectively? For the purposes of section 70B(1)(b), a BTR development is owned collectively if—

(a) the owners of the land are co-owners; and

(b) no owner of the land, either individually or with another owner, is entitled to a specific part of the land that one or more other co-owners are not entitled to.

Examples

1 Persons A, B and C own land that is used and occupied by a BTR development. Person A holds a 40% interest, Person B holds a 40% interest and Person C owns a 20% interest in the land as tenants in common. Persons A, B and C are taken to own the BTR development collectively.

2 Persons A, B and C develop 50 dwellings on land for the purposes of offering those dwellings for rent under long-term rental agreements. Person A owns dwellings 1 to 15, Person B owns dwellings 16 to 30 and Person C owns dwellings 31 to 50. Persons A, B and C do not own the dwellings collectively and the BTR development is not an eligible BTR development for the purposes of this Division.

70D What is a single management entity? (1) For the purposes of section 70B(1)(c), a

BTR development is managed by a single management entity if a single entity is responsible for the provision of management services for the BTR development.

(2) However, the eligibility requirement specified in section 70B(1)(c) does not apply to those dwellings that are used to provide affordable housing or social housing.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

64

70E When is a dwelling suitable for occupancy? A dwelling in a BTR development is suitable for occupancy on the date that an occupancy permit is issued in respect of the dwelling.

70F What are the required rental terms? (1) For the purposes of section 70B(1)(e), a

dwelling in a BTR development must be rented or available for rent under a residential rental agreement for a fixed term of not less than 3 years.

(2) Despite subsection (1), a renter may elect to enter into a residential rental agreement of a dwelling in a BTR development for any other period as agreed between the owner of the dwelling and the renter.

(3) The residential rental agreement must not be subject to any restrictions except for those required to—

(a) ensure public health and safety; or (b) provide social or affordable housing. 70G Expansion of eligible BTR development (1) An eligible BTR development includes one

or more additional self-contained dwellings constructed after the occupancy date for the eligible BTR development if the additional dwellings, together with the existing dwellings, satisfy the requirements specified in paragraphs (a) to (e) of section 70B(1).

(2) The occupancy date for any additional dwellings that form part of an eligible BTR development is the date on which those dwellings are suitable for occupancy.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

65

(3) The fifteen year eligibility requirement applies to any additional dwellings that form part of an eligible BTR development from the occupancy date of those dwellings.

Note

An eligible BTR development may have more than one occupancy date because of the application of this section.

70H Application for BTR benefits To obtain a concession from land tax or an exemption from the absentee owner land tax surcharge (or both) under this Division, the owner of the land must—

(a) apply to the Commissioner for the BTR benefits; and

(b) give the Commissioner any information the Commissioner requests for the purpose of enabling the Commissioner to determine whether the land is eligible for the BTR benefits.

70I Eligibility for BTR benefits (1) Subject to subsections (2) and (3), land or

part of land is eligible for the BTR benefits in a tax year if the land or part of land is used and occupied solely for an eligible BTR development on 31 December in the year immediately preceding the tax year.

(2) Land or part of land is eligible for the BTR benefits—

(a) for one continuous period; and (b) for no more than 30 years from the date

that a BTR benefit first applies to the land.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

66

(3) Land or part of land is not eligible for the BTR benefits in a tax year if a BTR benefit has applied to the land or part of land in a previous tax year and those tax years do not fall within one continuous period of eligibility for the BTR benefits.

(4) For avoidance of doubt, if an eligible BTR development has more than one occupancy date because of the expansion of the eligible BTR development, the requirements in this section apply to each part of the eligible BTR development as if they were separate eligible BTR developments.

70J BTR benefit—land tax concession The owner of land or part of land that is eligible for the BTR benefits is to be assessed for land tax on that land or part of land as if the taxable value of the land or part of land were reduced by 50%.

70K BTR benefit—exemption from absentee owner land tax surcharge for eligible land

(1) Subject to this Act, an absentee owner of land or part of land that is eligible for the BTR benefits is to be assessed for land tax (other than vacant residential land tax) on the total taxable value of all taxable land owned by the absentee owner, at the applicable rate of land tax in Schedule 1, as if the owner of the land were not an absentee owner.

(2) There is to be added to the land tax assessed for an absentee owner under subsection (1) an amount determined by the formula—

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

67

A×2% where—

A is the taxable value of all taxable land owned by the absentee owner that is not eligible for the BTR benefits.

70L Apportionment between eligible and non- eligible land If the Commissioner is satisfied that only part of land is used and occupied solely for an eligible BTR development—

(a) the BTR benefits do not apply to the remaining part of the land; and

(b) section 22 applies, if necessary, for the purposes of determining the taxable value of each part of land.

70M BTR benefits granted in anticipation of compliance

(1) The Commissioner may authorise the application of a BTR benefit to land or part of land in anticipation of compliance with the fifteen year eligibility requirement.

(2) For the purposes of subsection (1), the Commissioner must be satisfied that the owner of the land intends for the land or part of land to be used and occupied solely for a BTR development that satisfies the requirements in section 70B(1) for a continuous period of at least 15 years from the occupancy date for the BTR development on the land or part of land.

Note

A BTR development may have more than one occupancy date because of the application of section 70G.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

68

70N Notification requirement if land ceases to be eligible for BTR benefits

(1) The owner of land must give written notice to the Commissioner if—

(a) a BTR benefit has been applied to the land; and

(b) there is a change in circumstances that results in the land or part of the land no longer being eligible for the BTR benefits.

(2) Notice must be given under subsection (1) within 30 days of the change of circumstances.

(3) For the purposes of subsection (1), land or a part of land is no longer used and occupied solely for an eligible BTR development if any of the following occur—

(a) there are one or more self-contained dwellings on the land or part of land that no longer satisfy the requirements in section 70B(1)(a) to (e);

(b) the BTR development no longer consists of at least 50 self-contained dwellings that satisfy the requirements in section 70B(1)(a) to (e).

(4) Failure to notify the Commissioner in accordance with subsection (1) is a notification default.

70O Division applies to land despite change in legal description This Division applies to land or part of land whether or not there has been a change in the legal description of the land or part of land.

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

69

Example

An example of a change in the legal description of land is the issuing of new certificates of title of land following a subdivision of the land.".

Division 2—Exemptions and concessions 60 Section 71 repealed

Section 71 of the Land Tax Act 2005 is repealed.

61 Charitable institutions and purposes (1) In section 74(1)(a) of the Land Tax Act 2005,

after "used" insert "and occupied". (2) For section 74(1)(b)(iii) of the Land Tax

Act 2005 substitute— "(iii) declared by its owner to be held for future

use and occupation by a charitable institution exclusively for charitable purposes; or".

(3) After section 74(1)(b) of the Land Tax Act 2005 insert

"(c) it is— (i) owned by a charitable institution; and (ii) leased for outdoor sporting, outdoor

recreational, outdoor cultural or similar outdoor activities; and

(iii) available for use for one or more of those activities by members of the public.".

(4) After section 74(1) of the Land Tax Act 2005 insert

"(1A) For the purposes of making a determination under subsection (1)(b), the Commissioner must be satisfied that the land will be exempt land under subsection (1)(a) within 2 years, or a longer period approved by the

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

70

Commissioner, of the tax year to which the determination under subsection (1)(b) applies.".

(5) In section 74(2) of the Land Tax Act 2005, for "used by a charitable institution exclusively for charitable purposes" substitute "land to which subsection (1)(a), (b) or (c) applies".

Division 3—Gender-exclusive and gender-restrictive clubs

62 Land owned and occupied by non-racing clubs In section 73A(1) of the Land Tax Act 2005, for "Land is" substitute "Subject to section 73B, land is".

63 New section 73B inserted After section 73A of the Land Tax Act 2005 insert

"73B Gender-exclusive and gender-restrictive clubs

(1) A gender-restrictive club or a gender-exclusive club is not entitled to an exemption under section 73A(1) unless the Commissioner determines—

(a) in the case of a gender-restrictive club, the club is genuinely inclusive of members of any sex or gender identity; or

(b) the purposes of the club are such that it is consistent with community interests and expectations that the exemption apply.

(2) For the purposes of making a determination under subsection (1)(a), the Commissioner may have regard to the following—

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

71

(a) the membership composition of the club;

(b) membership classes and the rights of members of the club;

(c) any other relevant circumstances. (3) For the purposes of making a determination

under subsection (1)(b), the Commissioner may have regard to the following—

(a) the purposes of the club; (b) the membership composition of the

club; (c) membership classes and the rights of

members of the club; (d) the nature of the benefits or services the

club provides to its members; (e) benefits or services the club provides to

the community; (f) whether the benefits or services the

club provides to its members are to meet their special needs or particular personal characteristics;

(g) any other relevant circumstances. (4) In this section—

gender-exclusive club means a non-racing club which excludes persons from membership on the basis of a person's sex or gender identity;

gender-restrictive club means a non-racing club—

(a) that was a gender-exclusive club on or after 20 May 2021; and

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

72

(b) that no longer excludes persons from membership on the basis of a person's sex or gender identity;

non-racing club has the meaning given in section 73A.".

Division 4—Statute law revision 64 Statute law revision—Land Tax Act 2005 (1) In section 3(1) of the Land Tax Act 2005— (a) in paragraph (c) of the definition of public

unit trust scheme omit "registered imminent public unit trust scheme or";

(b) in the definition of wholesale unit trust scheme, for "Division 7" substitute "Division 6".

(2) In the formula in section 46G(4) of the Land Tax Act 2005, for—

"T is the total taxable value of all taxable land subject to the trust, other than land for which a nomination under section 46H is in force;

A is the total taxable value of the pre-2006 land subject to the trust, other than land for which a nomination under section 46H is in force;

B is the total taxable value of the post-2006 land subject to the trust, other than land for which a nomination under section 46H is in force."

substitute— "T is the total taxable value of all taxable land

subject to the trust, other than land for which a nomination under section 46H is in force;

A is the total taxable value of the pre-2006 land subject to the trust, other than land for which a nomination under section 46H is in force;

Part 10—Amendment of Land Tax Act 2005

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

73

B is the total taxable value of the post-2006 land subject to the trust, other than land for which a nomination under section 46H is in force.".

(3) In the heading to section 88E of the Land Tax Act 2005, for "first year of 2 years" substitute "second year".

Part 11—Amendment of State Taxation and Mental Health Acts Amendment Act 2021

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

74

Part 11—Amendment of State Taxation and Mental Health Acts Amendment Act 2021

65 Payroll of group over threshold where section 87(2) approval in force—employers covered by joint return are not all of the same type

In section 59(1) of the State Taxation and Mental Health Acts Amendment Act 2021, in the formula proposed to be substituted in clause 9A(3) of Schedule 1 to the Payroll Tax Act 2007, for "Rbrre" (where first occurring) substitute "Pbrre".

66 Amount of payroll tax to be paid each month In section 63(2) of the State Taxation and Mental Health Acts Amendment Act 2021, in proposed clause 4(4)(a), (b) and (c) to be inserted in Schedule 2 to the Payroll Tax Act 2007, for "total T and IW" substitute "total ETW and EIW".

67 Monthly payroll tax payable where section 87(2) approval in force—employers covered by joint return are all of same type

In section 65(1) of the State Taxation and Mental Health Acts Amendment Act 2021, in proposed clause 8(2) to be substituted in Schedule 2 to the Payroll Tax Act 2007, in paragraph (c) of variable S, for "total T and IW" substitute "total ETW and EIW".

68 Monthly payroll tax payable where section 87(2) approval in force—employers covered by joint return are not all of the same type

In section 66(1) of the State Taxation and Mental Health Acts Amendment Act 2021, in proposed clause 8A(2) to be substituted in Schedule 2 to the Payroll Tax Act 2007, in the formula—

Part 11—Amendment of State Taxation and Mental Health Acts Amendment Act 2021

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

75

(a) for "Rbrre" (where first occurring) substitute "Pbrre";

(b) in paragraph (a) of the variable Pbrre, for "1 July 2022" substitute "1 July 2021";

(c) in paragraph (a) of the variable Pre, for "1 July 2022" substitute "1 July 2021".

69 New section 67A inserted After section 67 of the State Taxation and Mental Health Acts Amendment Act 2021 insert

'67A Deductible amount for groups that pay interstate wages For clause 10(3) of Schedule 2 to the Payroll Tax Act 2007 substitute

"(3) The amount is to be calculated in accordance with the following formula—

D= BDA × ETW [ETW+EIW]

".'.

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

76

Part 12—Amendment of Taxation Administration Act 1997

Division 1—Build to rent development amendment 70 Definitions

In section 3(1) of the Taxation Administration Act 1997, after paragraph (a) of the definition of notification default insert

"(ab) a failure to notify the Commissioner of a change in circumstances in accordance with section 70N of the Land Tax Act 2005; or".

Division 2—Keno tax amendments 71 Meaning of taxation laws

After section 4(1)(c) of the Taxation Administration Act 1997 insert

"(caa) Part 4A of Chapter 6A of the Gambling Regulation Act 2003 and any regulations made under that Act for the purposes of that Part;".

72 Offset of refund against other liability After section 20A(8) of the Taxation Administration Act 1997 insert

"(9) This section does not apply in respect of— (a) a refund of an amount paid under

Part 4A of Chapter 6A of the Gambling Regulation Act 2003; or

(b) a liability arising under that Part— other than to the extent of allowing the application of a refund of an amount paid under that Part against a liability arising under that Part.".

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

77

73 Criminal liability of officers of bodies corporate— failure to exercise due diligence

In section 130B(2)(ba) of the Taxation Administration Act 1997, for "and 4.6A.18(1)" substitute ", 4.6A.18(1) and 6A.4A.7(1)".

74 Supreme Court—limitation of jurisdiction After section 135(9) of the Taxation Administration Act 1997 insert

"(10) It is the intention of sections 5, 12(4), 18(1), 96(2) and 100(4), as they apply on and after the commencement of Division 2 of Part 12 of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021, to alter or vary section 85 of the Constitution Act 1975.".

Division 3—Tax offsets 75 Definitions—emergency tax relief

In section 95A of the Taxation Administration Act 1997, in the definition of tax relief measure

(a) after paragraph (c) insert— "(ca) an offset of tax paid;"; (b) in paragraph (d), for "or (c)" substitute

", (c) or (ca)". 76 New section 95CA inserted

After section 95C of the Taxation Administration Act 1997 insert

"95CA Offset of tax relief measure against other liability If it is not practicable for the Commissioner to effect a refund of tax paid to a taxpayer in accordance with, or as a consequence of, a

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

78

direction given under section 95B(1), the Commissioner may apply the amount of the tax refund—

(a) against any liability of the taxpayer to the State arising under, or by reason of, a taxation law or another Act of which the Commissioner has the general administration; or

(b) against any future liability of the taxpayer to the State arising under, or by reason of, a taxation law.".

Division 4—Grounds for objection 77 Grounds for objection

After section 97(2) of the Taxation Administration Act 1997 insert

"(2A) A taxpayer cannot object to an assessment or decision referred to in section 96(1) on any ground relating to Part 9A.".

78 Supreme Court—limitation of jurisdiction After section 135(8) of the Taxation Administration Act 1997 insert

"(9) It is the intention of sections 5, 12(4), 18(1), 96(2) and 100(4), as they apply on and after the commencement of Division 4 of Part 12 of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021, to alter or vary section 85 of the Constitution Act 1975.".

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

79

Division 5—Administrative overpayments 79 Definitions

In section 3(1) of the Taxation Administration Act 1997, in the definition of tax, in paragraph (b), after "taxation law" insert "(other than section 129A)".

80 New section 129A inserted After section 129 of the Taxation Administration Act 1997 insert

"129A Recovery by the Commissioner of overpayments

(1) An administrative overpayment— (a) is a debt due to the State by the person

to whom the overpayment was made; and

(b) is payable to the Commissioner; and (c) may be recovered by the

Commissioner— (i) in the Magistrates' Court

irrespective of the amount; or (ii) in any other court of competent

jurisdiction. (2) The Commissioner may give a notice to a

person requiring repayment of an administrative overpayment.

(3) A notice given under subsection (2) must specify a due date for payment that is at least 30 days after the notice is given.

(4) If any of the administrative overpayment remains unpaid at the end of the due date, the person is liable to pay interest at the applicable rate on the outstanding amount, calculated on a daily basis from the end of

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

80

the last day for payment until the day any of the outstanding amount remains unpaid.

(5) In this section— administrative overpayment means an

amount that the Commissioner has paid to a person due to a clerical or mathematical mistake, being an amount to which the person is not entitled under a taxation law;

applicable rate means the rate fixed from time to time under section 2 of the Penalty Interest Rates Act 1983;

outstanding amount means the sum of— (a) the amount of the administrative

overpayment that remains unpaid; and

(b) any interest accrued on the unpaid amount that remains unpaid.".

Division 6—Windfall gains tax amendments 81 Definitions

In section 3(1) of the Taxation Administration Act 1997, in the definition of notification default

(a) in paragraph (c), for "2005;" substitute "2005; or";

(b) after paragraph (c) insert— "(d) a failure to notify the Commissioner of

an error or omission in accordance with section 26 of the Windfall Gains Tax Act 2021;".

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

81

82 Meaning of taxation laws In section 4(1) of the Taxation Administration Act 1997

(a) in paragraph (d), for "that Act." substitute "that Act;";

(b) after paragraph (d) insert— "(e) Windfall Gains Tax Act 2021 and

regulations made under that Act.". 83 Notice of assessment or withdrawal of assessment

After section 14(2) of the Taxation Administration Act 1997 insert

"(2A) A notice of assessment of windfall gains tax must also show the CIV1 and CIV2 of the land to which the tax relates. Note

CIV1 and CIV2 are defined in the Windfall Gains Tax Act 2021.".

84 Notice of certain joint assessments In section 14A(1) of the Taxation Administration Act 1997

(a) in paragraph (c), for "1987." substitute "1987;";

(b) after paragraph (c) insert— "(d) Windfall Gains Tax Act 2021.". 85 Application for refunds

For section 19(2A) of the Taxation Administration Act 1997 substitute

"(2A) Subsection (2) does not apply to an application for—

(a) a refund of tax paid or purportedly paid under the Land Tax Act 2005; or

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

82

(b) a refund of a contribution paid or purportedly paid under Part 9B of the Planning and Environment Act 1987; or

(c) a refund, in the circumstances referred to in section 38(2) of the Windfall Gains Tax Act 2021, of tax and interest paid or purportedly paid under that Act.".

86 Amount of penalty tax For section 30(2A) of the Taxation Administration Act 1997, after "2005" insert "or section 26 of the Windfall Gains Tax Act 2021".

87 Arrangements for payment of tax For section 49(6) of the Taxation Administration Act 1997 substitute

"(6) This section does not apply in respect of— (a) the payment of a contribution imposed

under Part 9B of the Planning and Environment Act 1987; or

(b) the payment of any windfall gains tax that has been deferred under Part 4 of the Windfall Gains Tax Act 2021.".

88 Property clearance certificate (1) In section 95AA(3) of the Taxation

Administration Act 1997, after "land tax" insert "or windfall gains tax".

(2) For section 95AA(4) of the Taxation Administration Act 1997 substitute

"(4) The Commissioner may include any other information in the certificate that the Commissioner thinks appropriate, including—

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

83

(a) any land tax on the land (including any interest and penalty tax) that—

(i) has been assessed but has not been paid and is not yet due; or

(ii) is yet to be assessed for the year in which the certificate is issued; and

(b) any windfall gains tax on the land (including any interest and penalty tax) that has been assessed but has not been paid and is not yet due; and

(c) information about a WGT event that has occurred and that may affect the land but in relation to which any windfall gains tax on the land is yet to be assessed; and

(d) any other amounts recoverable under any law for which the Commissioner has the power of general administration.

(5) In this section—

interest, in relation to windfall gains tax, includes any interest on deferral of the tax under the Windfall Gains Tax Act 2021.".

(3) For the note at the foot of section 95AA of the Taxation Administration Act 1997 substitute— "Note

If a person is a bona fide purchaser for value of land and obtains a certificate under this section, a charge does not secure—

(a) any amount of land tax on the land in excess of the amount set out in the certificate—see section 96 of the Land Tax Act 2005; or

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

84

(b) any amount of windfall gains tax in excess of the amount set out in the certificate, subject to section 42(4) of the Windfall Gains Tax Act 2021— see section 42 of the Windfall Gains Tax Act 2021.".

89 Objection After section 96(1)(ca) of the Taxation Administration Act 1997 insert

"(cb) a valuation made for or on behalf of the Commissioner under section 13 of the Windfall Gains Tax Act 2021 by the Valuer-General or a valuer nominated by the Valuer-General that is used by the Commissioner in an assessment of windfall gains tax; or".

90 Grounds for objection (1) After section 97(3) of the Taxation

Administration Act 1997 insert— "(3A) A taxpayer cannot object to an assessment of

windfall gains tax on any ground relating to the value of the land on which the tax is assessed if—

(a) the assessment is based on a valuation made by a valuation authority under the Valuation of Land Act 1960; and

(b) that valuation was not made for or on behalf of the Commissioner under section 13 of the Windfall Gains Tax Act 2021.".

(2) In section 97(4) of the Taxation Administration Act 1997, after "subsection (3)" insert "or (3A)".

91 Objections lodged out of time In section 100(5) of the Taxation Administration Act 1997, after "section 96(1)(ca)" insert "or (cb)".

Part 12—Amendment of Taxation Administration Act 1997

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

85

92 Objections concerning the value of property For section 100A(3) of the Taxation Administration Act 1997 substitute

"(3) Subsection (1) does not apply to an objection to an assessment of land tax or windfall gains tax or an objection referred to in section 96(1)(ca) or (cb), but the Commissioner must consult the Valuer- General before determining an objection referred to in section 96(1)(ca) or (cb).".

93 Refund of amount In section 115(1A) of the Taxation Administration Act 1997, for "that is in excess of a requirement for payment under the Land Tax Act 2005" substitute "or windfall gains tax that is in excess of a requirement for payment under the Land Tax Act 2005 or the Windfall Gains Tax Act 2021 (as the case requires)".

94 Supreme Court—limitation of jurisdiction After section 135(10) of the Taxation Administration Act 1997 insert

"(11) It is the intention of sections 5, 12(4), 18(1), 96(2) and 100(4), as they apply on and after the commencement of Division 6 of Part 12 of the Windfall Gains Tax Act 2021, to alter or vary section 85 of the Constitution Act 1975.".

Part 13—Amendment of Valuation of Land Act 1960

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

86

Part 13—Amendment of Valuation of Land Act 1960

95 Definitions (1) In section 2(1) of the Valuation of Land

Act 1960— (a) insert the following definitions—

"WGT event has the same meaning as in the Windfall Gains Tax Act 2021;

windfall gains tax means tax payable under the Windfall Gains Tax Act 2021.";

(b) in the definition of notice of valuation, for "or 15(3)(a)" substitute ", 15(3)(a) or 15AA";

(c) in the definition of valuation record, for "section 7C." substitute "section 7C;".

(2) In section 2(3B) of the Valuation of Land Act 1960, after "2005" insert "or windfall gains tax is imposed under the Windfall Gains Tax Act 2021".

96 New Part IIB inserted After Part IIA of the Valuation of Land Act 1960 insert

"Part IIB—Supplementary valuations for windfall gains tax

13P Request for supplementary valuation of rateable land or non-rateable leviable land for windfall gains tax

(1) If a WGT event occurs, the Commissioner may request that a supplementary valuation be carried out under this Part of any rateable land or non-rateable leviable land that is rezoned by the WGT event.

Part 13—Amendment of Valuation of Land Act 1960

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

87

(2) A request under subsection (1) is to be made in writing to the valuer-general.

13Q Supplementary valuation of rateable land or non-rateable leviable land for windfall gains tax

(1) If a request for a supplementary valuation is made under section 13P, the valuation authority must carry out a supplementary valuation of the land.

(2) The valuer in making a supplementary valuation must—

(a) have regard to the general levels of value on which the valuation in force was based; and

(b) assess the value that the land would have had if, at the time at which the last valuation was made, it had been zoned in accordance with the rezoning of the land caused by the WGT event.

(3) A supplementary valuation under this Part when certified by the valuer-general under section 13R must be treated as a part of the valuation in force and has the effect of cancelling anything contained in the existing valuation that is not consistent with the supplementary valuation.

(4) Despite subsection (3), the Commissioner, a council or a collection agency may, for the purpose of assessing windfall gains tax or levying or adjusting a municipal rate or fire services property levy, use a supplementary valuation under this Part before it is certified by the valuer-general.

Part 13—Amendment of Valuation of Land Act 1960

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

88

(5) If a supplementary valuation has been made under this Part, a council or collection agency (as the case requires) may adjust a rate or fire services property levy payable retrospectively for any period it considers just.

(6) The valuer-general must give the supplementary valuation to the Commissioner within 10 business days after the Commissioner requests it.

13R Certification of supplementary valuation under this Part

(1) If, after considering a supplementary valuation made by a valuer under section 13Q, the valuer-general is satisfied that the valuation is correct, the valuer-general must so certify in writing to the Commissioner, the council and the collection agency.

(2) If, after considering a supplementary valuation made by a valuer under section 13Q, the valuer-general is not satisfied that the valuation is correct, the valuer-general must inform the valuer, who must make a further supplementary valuation in accordance with section 13Q.

(3) The valuer-general may at any time require the valuer to give further information concerning the supplementary valuation to the valuer-general.

(4) If, within 2 months after receiving a supplementary valuation under section 13Q from a valuer, the valuer-general has not certified the valuation or informed the valuer under subsection (2), the valuer-general is deemed to have certified the valuation at the end of that period.

Part 13—Amendment of Valuation of Land Act 1960

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

89

(5) In calculating the period referred to in subsection (4), any time between the time when the valuer-general requires the valuer to give the valuer-general further information under subsection (3) and the time when that requirement is complied with is not to be counted.".

97 Notice of valuation For section 15(9) of the Valuation of Land Act 1960 substitute

"(9) This section does not apply in respect of— (a) a valuation of a transmission easement

under section 5B; or (b) a supplementary valuation made under

Part IIB unless a council or collection agency (as the case requires) intends to use the supplementary valuation to adjust a rate or fire services property levy.".

98 New section 15AA inserted After section 15 of the Valuation of Land Act 1960 insert

"15AA Commissioner must give notice of supplementary valuation under Part IIB

(1) The Commissioner must, in respect of any windfall gains tax payable in respect of rateable land or non-rateable leviable land, give the person liable to pay the tax a notice of valuation that shows the capital improved value of the land as assessed in the supplementary valuation made under Part IIB.

(2) A notice of assessment of windfall gains tax served under section 14 of the Taxation Administration Act 1997 that shows the

Part 13—Amendment of Valuation of Land Act 1960

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

90

capital improved value of the land is taken to be a notice of valuation for the purposes of subsection (1).".

99 Who may object? (1) In section 16(6A) of the Valuation of Land

Act 1960, after "land tax" insert "or windfall gains tax".

(2) After section 16(6A) of the Valuation of Land Act 1960 insert

"(6AB) A person who is assessed for windfall gains tax is deemed, when the person receives the notice of assessment of that tax, to be a person aggrieved by—

(a) the capital improved value of the land as assessed in the supplementary valuation made under Part IIB; and

(b) any other capital improved value used to assess the tax that was in a valuation made under this Act.".

(3) In section 16(6B) of the Valuation of Land Act 1960, after "subsection (6A)" insert "or (6AB)".

100 Time for lodging objection In section 18(c) of the Valuation of Land Act 1960, for "section 16(6A)—within 2 months after receiving the notice of assessment of land tax" substitute "section 16(6A) or (6AB)—within 2 months after receiving the notice of assessment of land tax or windfall gains tax (as the case requires)".

101 Commissioner to be notified of certain objections In section 21A(1) of the Valuation of Land Act 1960, after "section 16(6A)" insert "or (6AB)".

Part 14—Amendment of Water Act 1989

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

91

Part 14—Amendment of Water Act 1989 102 Application for review

In section 266(8) of the Water Act 1989, after "charge" insert "regulated under Part 1B of the Water Industry Act 1994".

103 Review of required payments In section 271(5) of the Water Act 1989, after "charge" insert "regulated under Part 1B of the Water Industry Act 1994".

104 New Part 18 inserted Before the Schedules to the Water Act 1989 insert

"Part 18—Amendments consequential to the repeal of Part 1B of the Water Industry

Act 1994 370 Commencement of Part

This Part comes into operation on 1 July 2024.

371 Objections to tariffs or fees Section 266(8) and (9) is repealed.

372 Objections to required payments Section 271(5) and (6) is repealed.

373 Objections following repeals (1) Despite the repeal of section 266(8) and (9),

those subsections continue to apply, on and after that repeal, in relation to a tariff, or a fee imposed under a tariff, that was set before 1 July 2024.

Part 14—Amendment of Water Act 1989

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

92

(2) Despite the repeal of section 271(5) and (6), those subsections continue to apply, on and after that repeal, in relation to a notice referred to in section 271(1) that was given in relation to a tariff, or a fee imposed under a tariff, that was set before 1 July 2024.

374 Repeal of Part This Part is repealed on 1 July 2025.".

Part 15—Amendment of Water Industry Act 1994

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

93

Part 15—Amendment of Water Industry Act 1994

105 Non application to Basin water charges For section 4AB(1) of the Water Industry Act 1994 substitute

"(1) This Part does not apply to any approving or determining of a Basin water charge for a service provided—

(a) on or before 30 June 2023 by the Lower Murray Urban and Rural Water Corporation; or

(b) on or before 30 June 2024 by the Goulburn-Murray Rural Water Corporation.".

106 Application of Commonwealth provisions For section 4K of the Water Industry Act 1994 substitute

"4K Application of Commonwealth provisions The Commonwealth provisions apply as a law of the State in respect of Basin water charges for services provided by—

(a) the Lower Murray Urban and Rural Water Corporation on or before 30 June 2023; and

(b) the Goulburn-Murray Rural Water Corporation on or before 30 June 2024.".

Part 15—Amendment of Water Industry Act 1994

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

94

107 New Part 11 inserted After Part 10 of the Water Industry Act 1994 insert

'Part 11—Repeal of Part 1B and consequential amendments

201 Commencement of Part This Part comes into operation on 1 July 2024.

202 Section 4AA repealed Section 4AA is repealed.

203 Section 4AB repealed Section 4AB is repealed.

204 Application of Essential Services Commission Act 2001 After section 4B(2) insert

"(3) If there is any inconsistency between a provision of this Part and a provision of the Essential Services Commission Act 2001 or the Water Act 1989, the provision of this Part prevails to the extent of that inconsistency.".

205 Repeal of Part 1B Part 1B is repealed.

206 Repeal of Part This Part is repealed on 1 July 2025.'.

Part 16—Renaming of Act and repeal of amending provisions

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

95

Part 16—Renaming of Act and repeal of amending provisions

108 Renaming of this Act In the title of this Act omit "and State Taxation and Other Acts Further Amendment".

109 Section 1 substituted For section 1 substitute

"1 Purpose The purpose of this Act is to impose a windfall gains tax on the increase in the value of land resulting from a rezoning.".

110 Repeal of amending provisions (1) Parts 7, 8, 9, 10 and 11, Divisions 1, 2, 3, 4 and 5

of Part 12 and Parts 14 and 15 are repealed on 1 July 2023.

(2) Parts 12 and 13 and this Part are repealed on 1 July 2024.

Note

The repeal of Parts 7, 8, 9, 10, 11, 12, 13, 14 and 15 and this Part does not affect the continuing operation of the amendments made by them (see section 15(1) of the Interpretation of Legislation Act 1984).

═════════════

Endnotes

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021

No. of 2021

96

Endnotes 1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. † Minister's second reading speech—

Legislative Assembly:

Legislative Council:

The long title for the Bill for this Act was "A Bill for an Act to impose a windfall gains tax on the increase in the value of land resulting from a rezoning and amend the Duties Act 2000, the Essential Services Commission Act 2001, the Gambling Regulation Act 2003, the Land Tax Act 2005, the State Taxation and Mental Health Acts Amendment Act 2021, the Taxation Administration Act 1997, the Valuation of Land Act 1960, the Water Act 1989 and the Water Industry Act 1994 and for other purposes."

By Authority. Government Printer for the State of Victoria.