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Business Transactions (Levy Imposition) Act 2006 (NI)

  • Act Applied Law - C2016Q00014
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Act No. 12, 2006
Act Applied Law as amended, incorporating amendments up to Norfolk Island Continued Laws Ordinance (No. 2, 2015)
This is an Act of the previous Norfolk Island Legislative Assembly that was continued in force under s16 and 16A of the Norfolk Island Act 1979.
Administered by: Infrastructure, Regional Development and Cities
Registered 30 May 2016
Start Date 11 May 2016
Table of contents.

 

NORFOLK                            ISLAND

 

Business Transactions (Levy Imposition) Act 2006

No. 12, 2006

Compilation No. 2

Compilation date:                              11 May 2016

Includes amendments up to:            Norfolk Island Continued Laws Ordinance 2015
(No. 2, 2015)
(formerly cited as Norfolk Island Continued Laws Amendment Ordinance 2015 (No. 2, 2015))

 

 

 

 

 

 

 

 




NORFOLK            ISLANDISLAND

 

 

 

 

 

BUSINESS TRANSACTIONS (LEVY IMPOSITION) ACT 2006

 

An Act relating to the imposition of levy on certain business transactions and instruments having a connection with Norfolk Island

 

 

1.         Short title

            This Act may be cited as the Business Transactions (Levy Imposition) Act 2006.

2.         Commencement

            Following assent, this Act shall come into operation on the day the Business Transactions (Administration) Act 2006 comes into operation.

3.         Incorporation

            This Act is incorporated and shall be read as one with the Business Transactions (Administration) Act 2006.

            Note: Being read as one, words defined in the Business Transactions (Administration) Act 2006 have the same meaning when used in this Act.

4.         Imposition of levy

            Subject to this Act, levy is imposed on the instruments included in the classes of instruments specified in Schedule 1.

            Note: This Act is not intended to have any application to the fees or duties payable in respect of the transfer or conveyance of interests in land that are dealt with by the Land Administration Fees Act 1996.

5.         Rate of levy

            (1)        The rate of levy on an instrument included in a class of instruments specified in Schedule 1 is the rate specified in that Schedule in relation to that class of instruments.

            (2)        Where the levy is based upon the value of property it may be referred to as ad valorem levy.

6.         Exemptions

            (1)        Levy is not imposed on an instrument included in a class of instruments specified in Schedule 2.

            (2)        Levy is not imposed on that part of the consideration or unencumbered value of leviable property to which the Land Administration Fees Act 1996 applies.

            (3)        Stamp levy is not imposed on an instrument executed by, or by an authority of, the Commonwealth or a State or another Territory prescribed for the purposes of this subsection.

            (4)        Subject to this Act and the Business Transactions (Administration) Act 2006, levy is not imposed on an instrument that is a counterpart or copy of another instrument that has been duly stamped.

            (5)        Except where other express provision is made by this or any other Act, levy is not imposed by this Act on an instrument executed before the commencement of this Act.

            (6)        The Regulations may exempt a person or organisation from the whole or a part of the operation of this Act.

7.         Levy to be rounded down

            Where an amount of levy otherwise payable on any item specified in Schedule 1 is an amount that is not a multiple of 5 cents, the amount of levy payable is the next lowest amount that is a multiple of 5 cents.

8.         Waiver of payment of small amounts of levy or additional levy

            (1)        Where an amount of levy or an additional amount of levy payable by way of penalty under the Business Transactions (Administration) Act 2006 that is otherwise payable is less than $5, the Officer may waive payment of the amount.

            (2)        If payment of an amount is waived under subsection (1), the instrument in respect of which the levy or additional levy is payable is to be marked as duly stamped and is to be taken to be duly stamped.

9.         Assessing levy in certain circumstances

            (1)        Where leviable property is conveyed to or by persons as joint tenants, for the purpose of assessing levy on the instruments effecting the conveyance, a reference in the instrument to joint tenants shall be read as a reference to tenants in common.

            (2)        In assessing the levy payable on a conveyance, where there are improvements on the land the subject of the conveyance claimed by the conveyee to have been effected by him, or at his expense, the Officer may exclude from the total value or amount on which levy is to be assessed such value or amount as the Officer thinks fit in respect of the value or amount, as at the date of execution of that conveyance, of those improvements.

10.       Refund of levy paid on certain matrimonial property settlements

            (1)        In this section –

“matrimonial property” means leviable property that belongs to the parties to a marriage or to either of them.

            (2)        If levy imposed on an instrument effecting a conveyance of matrimonial property from a person to his or her spouse or former spouse has been paid under this Act and, within 12 months after the property is conveyed, orders that relate to the distribution of the matrimonial property between the person and his or her spouse that are consistent with the terms of the conveyance are made under Part VIII of the Family Law Act 1975 of the Commonwealth and sealed by the Family Court, the Officer must refund to the person who paid the levy an amount equal to the levy paid.

            Note:   This section does not apply to the conveyance of matrimonial property that is land or an interest in land to which the Land Administration Fees Act 1996 has application.


SCHEDULE 1

Sections 4 and 5

RATES OF LEVY

Item No.

Class of instruments

Rate of levy

1.

Conveyance of Leviable Property

(1)        Conveyance other than a conveyance of leviable property to which the Land Administration Fees Act 1996 applies, and other than a conveyance of  a description referred to in paragraph (2), (3), (4) or (5).

 

 

 

 

 

 

 

 

(2)        Conveyance to or by persons as joint tenants where one or more of those persons retains an interest in the property the subject of the conveyance

(3)        Conveyance made subsequent to and in conformity with an agreement or agreements for the conveyance and the agreement or agreements has or have been stamped with ad valorem levy

(4)        A transfer of, or an agreement to transfer, leviable property subject to a declaration of trust to a trustee if ad valorem levy has been paid on the declaration of trust in respect of the same leviable property

Where the amount of the consideration or the unencumbered value of the property the subject of the conveyance or transfer (whichever is the higher) – levy on the amount or the unencumbered value (the value), calculated in accordance with the formula –

D = 4 x V

Where

D = the levy payable in $

and

V = the value

      100

Note for a value of $150,000 the formula becomes:

D = 4 x 150000/100 = $6,000


At the rate specified in above

 

 

0.5 fee unit

 

 

 

0.5 fee unit                  

 

 

(5)        A declaration of trust that declares the same trusts as those on which and subject to which the same leviable property was transferred to the person declaring the trust if ad valorem levy has been paid on the transfer or the agreement to transfer

 

0.5 fee unit

2.

Instrument to Correct Error

On an instrument which the Officer is satisfied is executed solely to correct an error in or effected by an instrument upon which levy has been paid

 

2 fee units

 

 

SCHEDULE 2

Section 6

EXEMPTIONS FROM LEVY

Item

No.

Class of exempt instruments

 

1.         Conveyance to the Administration or a Territory instrumentality.

2.         Conveyance or lease to the Commonwealth or to an authority of the Commonwealth.

                                Note: A State or Territory cannot impose duties or duties on the Commonwealth or its instrumentalities.

3.         Transfer of property for the purposes of a compulsory transfer of business under Part 4, Division 3 of the Financial Sector (Transfer of Business) Act 1999 of the Commonwealth.

                                Note: This Act applies to Norfolk Island.

4.         Statutory vesting – by which property vests in a company only because of the application of an Act.

                                Note: this applies to such vesting as takes place when property vests in an executor or other person administering an estate by order of a court, of when the status of an entity changes by virtue of the application.

5.         Transfer during the winding up of a company of its property (both real and personal) to a shareholder of the company where the shareholder is entitled to the property on a distribution in specie unless the transfer is or is part of a levy avoidance scheme.

6.         Conveyance –

(a)        that the Officer is satisfied is made solely for the purpose of effecting the appointment of a new trustee on the retirement of a trustee or as an additional trustee, if –

(i)         no beneficial interest passes in the property conveyed;

(ii)        the conveyance is not part of a transaction or series of transactions on which levy is payable under section 33 of the Business Transactions (Administration) Act 2006; or

 (iii)      the property conveyed was acquired by the retiring trustee or existing trustee in the capacity of trustee by virtue of an instrument which was duly stamped or has been exempted from levy under this Schedule or was not otherwise subject to levy;

(b)        subject to paragraph (c), made by a trustee to a beneficiary, where the conveyance is not made for valuable consideration and the conveyance is in conformity with a trust contained in a validly constituted trust and the property the subject of the conveyance was acquired by the trustee by virtue of an instrument which was duly stamped or has been exempted from levy under this Schedule or was not otherwise subject to levy;

(c)        made by a trustee of a discretionary trust to a beneficiary where –

(i)         the beneficiary is a natural person and, as a result of the transfer, the beneficiary holds both the legal and equitable interests in the property the subject of the conveyance;

(ii)        the conveyance is not made for valuable consideration, which includes money or moneys worth, the forgiveness of or release from a debt, gift or legal obligation (including the trustee’s right of indemnity and exoneration against a beneficiary) and whether the valuable consideration is paid, payable, made over to, given or granted by or to the trustee, a beneficiary or a person acting for, in concert with or under an arrangement or understanding (which may be formal or informal or express or implied) with the trustee or a beneficiary; and

(iii)       the conveyance is in conformity with a trust contained in a validly constituted trust and the property the subject of the conveyance was acquired by the trustee by virtue of an instrument which was duly stamped or has been exempted from levy under this Schedule or was not otherwise subject to levy; or

(d)       made by a trustee to a beneficiary, where the conveyance is not made for valuable consideration and the property the subject of the conveyance was acquired by the trustee by virtue of the operation of a testamentary instrument or intestacy.

7.         Transfer of an interest in the title to the property which the Officer is satisfied is the principal place of residence of persons who are the spouses or de facto partners of one another from one person to both with the effect that both own the property equally where there is no consideration and no other person obtains an interest or benefit from the transfer.

8.         Conveyance to a former bankrupt from the estate of the former bankrupt which results in the former bankrupt holding both the legal and the equitable interest in the property conveyed to him or her.

9.         Grant of a statutory licence or permission used in or in connection with a business undertaking, not being a grant which is or, in the opinion of the Officer, amounts to or has the same effect as, a transfer of the licence or permission.

10.       Wills and testamentary instruments.

11.       An instrument effecting or evidencing the conveyance of leviable property or the grant of a lease to a public hospital, public benevolent institution, religious institution or public education institution or a council, society, organisation or other body established or carried on exclusively or principally for the promotion of the interests of a school (other than a school carried on for the profit of an individual) if the property the subject of the conveyance or lease is to be used solely by that entity for purposes other than the carrying on of a commercial activity conducted by or on behalf of the entity.

12.       An instrument effecting or evidencing the conveyance of leviable property if:

(a)        the transfer does not involve a change in beneficial ownership; and

(b)        the instrument is executed during the period starting on the day this item commences and ending on 30 June 2017.


 

NOTES

The Business Transactions (Levy Imposition) Act 2006 as shown in this consolidation comprises Act No. 12 of 2006 and amendments as indicated in the Tables below.

Enactment

Number and year

Date of commencement

Application saving or transitional provision

 

 

 

 

Business Transactions (Levy Imposition) Act 2006

12, 2006

26.6.2006

 

 

 

 

 

Fiscal Charges and Impositions Act 2011

5, 2011

1.7.11

 

 

 

 

 

[Previously consolidated as at 5 July 2011]

 

 

 

 

 

Ordinance

Registration

Commencement

Application, saving and transitional provision

Norfolk Island Continued Laws Amendment Ordinance 2015
(No. 2, 2015)
(now cited as Norfolk Island Continued Laws Ordinance 2015 (see F2015L01491))

17 June 2015 (F2015L00835)

Sch 1 (items 28, 344, 345): 18 June 2015 (s 2(1) item 1)

Sch 1 (items 344, 345)

as amended by

 

 

 

Norfolk Island Continued Laws Amendment (2016 Measures No. 2) Ordinance 2016
(No. 5, 2016)

10 May 2016 (F2016L00751)

Sch 4 (item 4): 11 May 2016 (s 2(1) item 3)

Table of Amendments

 

ad =        added or inserted

am = amended

rep = repealed

rs =  repealed and substituted

Provisions affected

How affected

2A

rep

Ord No 2, 2015

Schedule 1

am

5, 2011

Schedule 2

am

Ord No 2, 2015 (as am by Ord No 5, 2016)