The State Taxation and Treasury Legislation Amendment Act 2022 received Royal Assent on 15 June 2022. The Act introduces an exemption from motor vehicle duty for certain wheelchair accessible commercial passenger vehicles, as announced in the 2022–23 Victorian Budget. The Act also includes changes to several other Acts.
2022–23 Budget amendment
Motor vehicle duty
An exemption from motor vehicle duty has been introduced for wheelchair accessible vehicles that are less than two years old and meet the legal requirements to provide unbooked commercial passenger vehicle services (also known as taxi ‘rank and hail’ work).
The exemption applies to applications for registration or transfer of registration of a motor vehicle lodged on or after 1 July 2022.
Land tax principal place of residence (PPR) exemption for homes under construction or renovation
The Land Tax Act 2005 has been amended to introduce an exemption from land tax on recently built or renovated homes subsequently used as a PPR . Previously a refund (known as a section 61 refund) was available in these situations.
The new exemption will be available for up to four tax years after the year construction or renovation commences.
The amendment commences on 1 July 2022, and will apply to all land where the construction or renovation of the home has not been completed by 1 July 2022. The existing section 61 refund provision will apply if construction or renovation of the home is completed before 1 July 2022.
Land tax exemption for specialist disability accommodation (SDA) under construction
The Land Tax Act 2005 has been amended to expand the exemption for residential services for people with disabilities to land on which an SDA enrolled dwelling provided by an SDA provider within the meaning of the Residential Tenancies Act 1997 is being constructed. The exemption will apply for a maximum of two tax years.
The exemption has been made available retrospectively from the 2020 land tax year onwards.
The Payroll Tax Act 2007 has been amended to confirm that wages paid to a service provider under an employment agency contract are exempt, where the employment agency is on-hiring a common law employee to a client who is exempt from payroll tax..
The Taxation Administration Act 1997 has been amended to clarify the time at which a deemed assessment of a dutiable transaction is made and served when the transaction is processed using the SRO’s online duty payment system.
That time is now the later of the making of an irrevocable commitment to pay duty (or to not pay duty), or completion of the dutiable transaction.
The amendment also confirms that an estimate of duty produced by the online duty payment system is not an assessment of tax.
The Taxation Administration Act 1997 has been amended to authorise the disclosure of information by the SRO to the Australian Financial Security Authority, Australian Transaction Reports and Financial Analysis Centre (AUSTRAC) and to members of the Phoenix Taskforce established by the Australian Taxation Office.
The amendment also enables further Commonwealth enforcement bodies to be prescribed by regulation as authorised recipients of information.
The Taxation Administration Act 1997 allows secondary disclosures of protected information in limited circumstances. It has been amended so protected information disclosed to a person by the SRO can be shared with a third party if the person to whom the information relates consents to the secondary disclosure.
This does not mean that information can automatically be shared by the third person. It requires consent from the person to whom the information relates
Out of time objections
The Taxation Administration Act 1997 has been amended to impose a time limit of five years on the discretion of the Commissioner of State Revenue to permit the late lodgement of an out of time objection. The amendment provides that requests to lodge an out of time objection must be made within five years after the date of service of the notice of assessment or decision.
The five-year time limit applies to requests to lodge an out of time objection made on or after the day of Royal Assent.
Windfall gains tax exemption for universities
The Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 has been amended to introduce an exemption from the windfall gains tax in relation to land owned by a university. For the exemption to apply, the Commissioner of State Revenue must be satisfied that any revenue generated from the use of the land will be used to further the university’s charitable purposes.
The exemption for universities will be available to land owned by a university and rezoned by a planning scheme amendment on or after 1 July 2023, when the windfall gains tax commences.
Borrowing and Investment Powers Act 1987
The Borrowing and Investment Powers Act 1987 has been amended in relation to the mechanisms in the Act that specify the persons and bodies to which certain powers under the Act apply. The amendment also created a new regulation making powers allowing the Governor in Council to prescribe the persons and bodies to which certain sections of the Act apply.
Essential Services Commission
The Essential Services Commission Act 2001 has been amended to clarify the usage of the Essential Services Commission Operating Fund and Essential Services Commission Enforcement Fund established under that Act.