26 September, 2012

 

This bulletin outlines Australian stamp duty developments in August 2012 which may impact your business, including:

 

Transfer duty

 

  • New South Wales: Knop v Chief Commissioner of State Revenue – the NSW Administrative Decisions Tribunal has set aside the Chief Commissioner’s decision disallowing an objection by two taxpayers against an assessment with a higher dutiable value of a subject property.
  • South Australia: Statutes Amendment and Repeal (Budget 2012) Bill 2012 – the Statutes Amendment and Repeal (Budget 2012) Bill 2012 providing a concession for off-the-plan apartment sales is currently awaiting Assent. Administration
  • Western Australia: Revenue Laws Amendment Bill 2011 – The Revenue Laws Amendment Bill 2011 dealing with several administrative matters was passed with one amendment to correct the operation of one of the commencement provisions.
  • Australian Capital Territory: Taxation Administration Amendment Bill 2012 – the Taxation Administration Amendment Bill 2012 dealing with information sharing with the ATO is awaiting Assent.

 

Relevant area  At a glance
Transfer duty

 

New South Wales: Knop v Chief Commissioner of State Revenue [2012] NSWADT 157 

 

The NSW Administrative Decisions Tribunal in Knop v Chief Commissioner of State Revenue has set aside the Chief Commissioner’s decision disallowing an objection by two taxpayers against an assessment with a higher dutiable value of freehold property.

 

Facts

 

On 24 December 2009, a transfer of land was executed from Ralston Cottage Pty Ltd to Ian Reginald Knop and Gay Ruth Bolin-Knop (together the “Applicant”). The transfer was stamped based on a value of $1.5 million. The Chief Commissioner subsequently obtained a valuation from the Valuer-General indicating that the market value of the property was $2.5 million. A notice of assessment was then issued to the taxpayers specifying $2.5 million as the dutiable value of the property. The taxpayers objected to the Chief Commissioner’s assessment and provided a revised valuation of $1.8 million. The Applicant subsequently sought a review of the Chief Commissioner’s decision.

 

Held

 

The Tribunal held that the unencumbered dutiable value of the property in December 2009 was $1.8m. In reaching its decision, the Tribunal said that the “question [of valuation] is in as much as any determination is made based on an inexact science whether the analysis of the comparable sales could reliably be reflective on the value of the subject property”. The Tribunal held that the Global Financial Crisis of 2008 was an unexpected event that should have been taken into account by the Commissioner. On the evidence presented, the Applicant was able to discharge the onus of proving the claim.

 

 

 

South Australia: Statutes Amendment and Repeal (Budget 2012) Bill 2012

 

The Statutes Amendment and Repeal (Budget 2012) Bill 2012 (“Bill“) is currently awaiting proclamation. The Bill proposes amendments to the Stamp Duties Act 1923 (SA) to establish a scheme to provide for concessions for eligible contracts for purchases of off-the-plan city apartments.

 

 

 

Western Australia: Revenue Laws Amendment Bill 2011

 

The Revenue Laws Amendment Bill 2011 was passed with a single amendment to correct the operation of one of the commencement provisions. The Bill proposes, among other things, to:

 

  • (a) extend the operation of the first home owner rate of duty provisions;
  • (b) extend the length of time taxpayers can apply for a refund of duty on a cancelled transaction;
  • (c) reduce certain administrative costs under the Land Tax Assessment Act 2002 by removing the requirement to lodge certain forms to claim a residential exemption; and
  • (d) improve the clarity and operation of the provisions in the Taxation Administration Act 2003 relating to the issue of tax certificates and the charge attached to land for unpaid land.

 

 

 

Australian Capital Territory: Taxation Administration Amendment Bill 2012

 

The Taxation Administration Amendment Bill 2012 (“Bill“) has passed all stages without amendment and awaits notification.

 

The Bill amends the Taxation Administration Act 1999 to address an unintended consequence of a recent amendment to the Taxation Administration Act 1953 (Cth) that prevented the Australian Tax Office from providing taxpayer information to the ACT Revenue Office.

 

 

 

 

For further information, please contact:

 

Geoffrey Mann, Partner, Ashurst

geoffrey.mann@ashurst.com

 

 Nika Dharmadasa, Ashurst

nika.dharmadasa@ashurst.com

 

 

 

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