Page 2208 - Week 08 - Wednesday, 6 June 1990
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Under existing legislation, where an interest in a business operating as a sole trader or partnership is transferred, stamp duty is payable only on the transfer of land and motor vehicles. This Bill will expand the revenue base to include as dutiable any business assets such as plant and equipment, stock in trade, business licences and goodwill. At the same time, a deduction will be allowed for ACT liabilities acquired by the new owner or partner. This was the basis on which conveyance duty of between 1.5 per cent and 5.5 per cent was to be applied under the original proposal of the Labor Government.
However, to provide a consistent approach for the transfer of business interests, either through an incorporated or an unincorporated entity, duty under the Alliance Government's Bill will be levied at the marketable security rate of 0.6 per cent on the balance of consideration or net assets after deducting the value of land and motor vehicles which will be charged duty at their respective rates.
This Bill will also enhance the protection of the revenue base by shifting the liability to tax on sales of motor vehicles by motor vehicle dealers from the purchasers to the motor vehicle dealer. This shifting of the liability will ensure that revenue is received immediately on purchase and provide a better basis on which to check the accuracy of stamp duty paid, given the comprehensive records required to be kept by motor dealers. The dealer will, of course, be able to pass on the stamp duty to the purchaser.
The legislation also clarifies liability in respect of insurance policies and ensures that all policies insuring risk located in the ACT will be liable for ACT duty. This approach brings us into line with other States and will be favourably received by the insurance industry.
The remaining provisions deal with the removal of the use of adhesive stamps, the inadmissibility of unstamped documents in a court of law and documents executed outside the ACT - some timely provisions there, indeed. These provisions will facilitate both the administration and collection of revenue by ensuring that all dutiable instruments are submitted to the revenue office for assessment. The provisions of this Bill are expected to raise an additional $1.5m in a full year. I commend the Bill to members.
MR STEVENSON (4.27): I move:
That the debate be adjourned.
Mr Moore: Why?
MR STEVENSON: I cannot debate now but I would like an opportunity to talk on it.
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