2006 announcements

A transfer duty exemption is contained in s.151 of the Duties Act 2001 (the "Duties Act") for transfers or agreements to transfer of residential land by way of gift from one party to a marriage or de facto relationship to the other party to a marriage or de facto relationship.

In these situations, the residential land may be subject to a mortgage and the incoming party may assume part of the mortgage debt. In accordance with s.12(1)(a) of the Duties Act, the assumption of a debt is consideration. The transaction is not by way of gift, however the transfer duty exemption was intended to apply in these circumstances.

Practice Direction LT 17.1 sets out the changes made to the land tax concession for a principal place of residence ("PPR") by the Revenue Legislation Amendment Act 2005. The changes involve the extension of the application of the existing PPR exemption for land tax and the introduction of either a full or partial PPR exemption where land used as a PPR is also used for other purposes.

As the Practice Direction outlines changes that are beneficial to taxpayers, it was important to release this Practice Direction as soon as possible. Should anyone have any comments in relation to this Practice Direction, please forward those comments in writing to OSR at the address below. A review of the operation of this Practice Direction will be undertaken in light of any comments received.

Comments should be addressed to:

Ms Veronica Power
Manager Administrative Policy Branch
Office of State Revenue
GPO Box 2593
BRISBANE QLD 4001

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OSR's duties calculators have been updated and are available now on the OSR website.

The Debits Tax Repeal Act 2005 repealed the Debits Tax Act 1990. The Debits Tax Repeal Act 2005 commenced on 1 July 2005. As a consequence of the abolition of debits tax, Practice Direction DT 1.1 and Revenue Ruling DT 1.2 are no longer required.

The following Debits Tax Act 1990 Practice Direction and Revenue Ruling have been placed on the OSR website:

1. Practice Direction Debits Tax 1.2 (PDDT1.2) - Application of Debits Tax Act 1990 - Financial Institution Cheques, Counter Cheques and Corporate Cheques.
2. Revenue Ruling Debits Tax 1.3 (RRDT 1.3) - Linked Accounts.

The Duties Amendment Regulation (No.1) 2006 adds Australia Pacific Exchange Limited ACN 080 399 220 (APX) to the list of recognised stock exchanges under section 8 of the Duties Regulation 2002.

Designation as a recognised stock exchange in Queensland results in the following listed transactions, which would otherwise be dutiable, being duty free:

• Transfers of, or agreements to transfer shares in a Queensland company (otherwise 0.6% marketable securities duty).
• Transfers of, or agreements to transfer, units in a public unit trust registered on a register kept in Queensland (otherwise 0.6% marketable securities duty).
• Relevant acquisitions of shares in land rich companies (otherwise subject to land rich duty on the underlying land assets of the corporation at rates of up to 3.75%).

However, certain interests which may be traded on a recognised stock exchange - such as direct interests in property, debentures and loans - will still be subject to duty.

You can view the regulation on the Office of Parliamentary Counsel website.

OSR’s popular self assessment seminar program is back for 2006. The program offers free seminars in and around South East Queensland aimed at assisting self assessors to better understand OSR’s systems and processes. Over 90% of those attending the 2005 seminars found them very useful.

These free seminars were extremely popular and places filled fast. Book your spot today and have all your self assessment questions answered by the experts.

Subscribe to get updates on seminar dates.

As debits tax has been abolished in Queensland, debits tax forms DT1 (monthly return) and DT4 (annual exempt accounts return) are now no longer required, and have been removed from the OSR website. Debits tax was abolished in Queensland on and from 1 July 2005. However, debits tax liabilities for debits made before 1 July 2005 will still need to be paid, and rights in relation to those debits will still be enforceable. This means that the Debits Tax Act 1990 will continue to apply to some matters to allow for debits made before 1 July 2005 to be wound up. If you need more information about debits tax or which legislation applies to your particular case, please contact us.

James Green, Executive Director and Commissioner of State Revenue is presently on leave. In his absence, Allan Mason has been appointed Acting Executive Director and Acting Commissioner of State Revenue.

On 25 August 2005, the Queensland Parliament resolved that a Select Committee, known as the Impact of Petrol Pricing Select Committee, be appointed to examine a range of issues regarding petrol pricing in Queensland. The Select Committee held a number of public forums in regional centres and received numerous submissions from government, industry and consumers. The findings of the Select Committee were handed down in Parliament on 4 April 2006.

The Victorian State Revenue Office is conducting a Victorian Land Rich Duty seminar in Brisbane on the 26 May.

OSR is proud to release our new Client Charter. It will replace the existing Taxpayer and Communication Charters. Its a back to basics approach to ensure we have a clear step-by-step approach to build a better OSR-client relationship.

The charter covers fundamental principles such as acting honestly and fairly and within the law, as well as more specific topics such as how to resolve complaints, communicating with OSR, and researching your obligations and entitlements.

View an easy to read version here.

A new checklist has been developed to assist clients with lodging their Annual/Final Return. You can view the new checklist here.

OSR has also updated the help text for the Annual/Final return form and Fixed Periodic Deduction form.

Updated Form for Home Refinance Mortgage Concession

Form 5.2 - Home Refinance Mortgage Concession has been updated and is available to view and download from the OSR website.

The calculators have been updated to reflect the transfer duty changes from 1 July 2006. Access both the online and downloadable calculators—version 2.1.9.

Flyer

Changes to transfer duty from 1 July 2006

Information Sheets

Transfer duty - concessions for homes

DA2 - Self assessment of transfer duty

As part of a whole of Goverment initiative, OSR will have new mail handling procedures starting 3 July. These will affect Australia Post deliveries, over the counter deliveries and documents delivered to us by courier.

Please read the guidelines to ensure you are familiar with the new procedures and how they affect you.

As a result, changes have been made to land tax, pay-roll tax, and duty provisions relating to acquisitions of majority interests in certain land holding corporations and trusts, to implement certain 2006-07 State Budget initiatives.

Access the new legislation at the Office of Parliamentary Counsel website.

On Tuesday, 6 June 2006, the Honourable Anna Bligh MP, Deputy Premier, Treasurer and Minister for State Development, Trade and Innovation announced the following revenue measures in the 2006-07 Queensland State Budget. 

From 1 June 2006, the Queensland Government's fuel subsidy of 8.354 cents per litre will be extended to subsidise diesel used in certain equipment-type vehicles that travel on a public road.

Extension of transfer duty relief for cane farm consolidations in areas affected by Cyclone Larry 

The transfer duty relief scheme for eligible cane farm consolidations/amalgamations has been extended by 12 months in Cyclone Larry affected areas. In these areas, the scheme will now continue according to the same terms and conditions as the current scheme and expire on 25 May 2007. For all other parts of the State, the scheme expires on 25 May 2006.

The following Practice Directions have been placed on the OSR website:

Practice Direction Land tax - 3.4 - Principal Place of Residence Deduction - Trustees
Practice Direction Land tax - 9.2 - Principal place of residence deduction - house demolished or vacant due to renovations
Practice Direction Land tax - 11.2 - When land is used as a Principal Place of Residence

The Land Tax Act 1915 was amended by the Revenue Legislation Amendment Act 2005 to extend the application of the principal place of residence ("PPR") exemption and to introduce a full or partial PPR exemption where land used as a PPR is also used for other purposes.

The above Land tax Practice Directions were updated to reflect the legislative changes.

The following Practice Directions have been placed on the OSR website:

Practice Direction Duties Act 1.5 - Adjudication Fees
Practice Direction NFSS 1.6 - Information for bulk end users requesting a variation to claim period

These Practice Directions required amendment as a result of fee increases according to CPI pursuant to the Revenue Legislation Amendment Regulation (No. 1) 2006. The effect of the Practice Directions is otherwise unchanged.

Practice Direction DA 65.2 - Land rich duty - acquisitions of interests in a corporation previously listed on a recognised stock exchange

This Practice Direction has been updated to reflect the changes to the threshold tests for determining liability for duty under the Duties Act 2001 provisions relating to land rich corporations. The legislative changes were made by the Revenue Legislation Amendment Act 2006.

Buying Real Property in Queensland

Queensland Duties—A general guide

Current rates of duty

The Revenue Legislation Amendment Regulation (No.1) 2006 was made on 15 June 2006 and was gazetted on 16 June 2006. The Regulation increases various fees and charges payable to the Office of State Revenue in line with the Brisbane All-Groups Consumer Price Index. The fees increase from 1 July 2006.

The Regulation also relocates certain fee provisions of the Taxation Administration Regulation 2002, which prescribe the amount payable for the postal return of documents, to the Duties Regulation 2002.

From 1 July 2006, the unpaid tax interest rate will increase from 13.68% to 13.87% per annum.

Lease duty, credit business duty, transfer duty and land tax have changed as a result of the Revenue Legislation Amendment Act 2005 receiving Royal Assent on 29 November 2005.

If you are required to complete a reconciliation schedule as part of an audit, please review the checklist of taxable wages.

The following Practice Directions and Revenue Ruling have been placed on the OSR website:

Practice Direction Duties Act 50.2 - Mortgage duty - House & Land Packages

Practice Direction Duties Act 56.3 - Calculation of Hire Duty by Commercial Hirers

Revenue Ruling Duties Act 33.2 - Hire Duty - Relevant factors in determining whether a person is carrying on a hiring business.

These Practice Directions and Revenue Ruling have been updated to reflect the abolition of credit business duty under the Duties Act 2001 by the Revenue Legislation Amendment Act 2005.

Practice Direction Duties Act 73.1 - Distinguishing between rent and premium.

Chapter 2 of the Duties Act 2001 imposes transfer duty on a dutiable transaction which is an acquisition of a new right on its creation, grant or issue. An acquisition of a new right includes an acquisition of a leasehold interest in land in Queensland. The dutiable value of a new right that is a lease of land in Queensland includes any premiums, fines or other consideration payable for the grant of the lease, but does not include rent.

This Practice Direction provides guidance in determining whether an up-front payment is a premium or rent. The guidelines were previously published in reference to lease duty, however due to the abolition of lease duty by the Revenue Legislation Amendment Act 2005, the Practice Direction is now published in reference to transfer duty.

The Revenue and Other Legislation Amendment Bill 2006 was introduced into the Legislative Assembly on 11 October 2006. The Bill contains numerous amendments to the revenue laws administered by the Office of State Revenue, including amendments to give effect to revenue measures announced in the 2006-07 State Budget and the 2006 election.

Whether an applicant for the Grant lodges their application through an approved agent or directly to this office, all copies of supporting documentation must be certified. For further information, please read page 10 of the Queensland First Home Owner Grant application kit.

A new version of the duties calculators are now available for both online use and download. The calculators have been updated to incorporate the Internet Explorer 7 web browser.

The Revenue and Other Legislation Amendment Act 2006 received Royal Assent on 10 November 2006. This Act includes amendments to the Community Ambulance Cover Act 2003, Duties Act 2001, Fuel Subsidy Act 1997, Land Tax Act 1915 and Taxation Administration Act 2001.

Hire duty changes from 1 January 2007

The new-look Office of State Revenue website will be launched 6 November 2006.

Through client feedback and extensive redevelopment, we’ve created a better online service for OSR website users.

The result is an online experience that not only looks more modern, but makes navigating, printing, reading, searching and communicating much easier.

From the layout to the choice of colours, every element of the new website has been selected to make your OSR Online experience more informative and productive.

While the look of the OSR website will change, its location won’t – you’ll still access OSR online at www.osr.qld.gov.au.

If you’d like to provide feedback on the new website after it’s been launched, feel free to submit your comments via our feedback form.

OSR Online…Accomplish more.

Notification of Christmas/New Year period business hours. From Monday 25 December 2006 to Monday 1 January 2007 (inclusive), OSR's Rockhampton, Townsville and Cairns service centres will be closed for business. Services will resume on Tuesday 2 January 2007.

Brisbane office will be closed on public holidays only, 25 and 26 December 2006 and 1 January 2007.

The Revenue and Other Legislation Amendment Act 2006 contained a number of amendments to the Duties Act 2001 which are effective from 1 January 2007.

Some of the changes include:-

• the abolition of transfer duty on unquoted marketable securities
• the abolition of hire duty
• the introduction of a first home vacant land concession
• an increase in the threshold amount for the first home concession from $250,000 to $320,000

The changes have resulted in some new publications and also some changes to existing forms, information sheets, calculators etc.

All those publications are now accessible on the website. The new calculators will be available from 3 January 2007.

When lodging your claims over the Christmas/New Year period, please be aware of the following payment cut-offs:

For fuel retailers, the last payment run before Christmas is 21 December 2006. The first retailer payment run of the new year is scheduled for 2 January 2007.

For bulk end users (BEUs), the last payment run before Christmas is 20 December 2006. The first payment run of the new year is scheduled for 3 January 2007.

Please be advised that the Office of State Revenue will be conducting the last payment run for approved applications on 22 December 2006.

Payment of the first home owner grant will therefore not be available between 23 December 2006 and 2 January 2007.

Payments will recommence on 3 January 2007. OSR will be operating with reduced staff during this period, but general telephone support will be available on non-public holidays.

The following Practice Directions were updated to reflect the legislative changes made by the Revenue and Other Legislation Amendment Act 2006:

Duties - Transfer Duty

• Practice Direction Duties DA 55.2 - Correcting a clerical error in a previous transfer
  Practice Direction DA 55.2 outlines the information that is required to satisfy the Commissioner that an error of a type contemplated by s.152 of the Duties Act has occurred in a previous transfer and also contains examples of when and how the provision applies.
  
• Practice Direction Duties DA 72.2 - Transfer duty - application of first home concession where home is acquired for less than market value
  

Fuel Subsidy Scheme

• Practice Direction Fuel Subsidy Scheme NFSS 9.3—Diesel engine road vehicles entitlement to a fuel subsidy
• Practice Direction Fuel Subsidy Scheme NFSS 10.2—Diesel engine road vehicles apportionment models and record keeping requirements for diesel purchased from a retailer

An administrative arrangement was approved under which the Fuel Subsidy Scheme was to be extended to subsidise, from 1 June 2006, on-road use of diesel in all vehicles, other than vehicles conditionally registered or of a kind eligible for conditional registration in Queensland. The Revenue and Other Legislation Amendment Act 2006 gave effect to the administrative arrangement.