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Legislative Assembly for the ACT: 2000 Week 7 Hansard (29 June) . . Page.. 2188 ..

MR HUMPHRIES (continuing):

Currently under section 74 of the Duties Act, Mr Speaker, provision is made to exempt a transaction involving the use of a mortgage to secure a debt. However, because of the definition of mortgage, the exemption applies only to transactions involving land. This was an unintended result of the Stamp Duties Rewrite, as an exemption was previously provided in Schedule 4(ma) of the Stamp Duties and Taxes Act 1987 for a wider range of dutiable property. A broader definition of mortgage has been included in section 74 to provide an exemption where marketable securities or other dutiable property are used merely for securing a debt.

Mr Speaker, last financial year the NSW Government introduced a special payment arrangement for off-the-plan property buyers. The scheme allowed payment of 5% of duty within 60 days of the acquisition of the property, with the remainder of the duty being payable on completion of the agreement, on assignment of the property or at the expiration of 12 months, whichever came first. The scheme was introduced to reduce criticism that full payment of stamp duty on a building that cannot be occupied until some months later, is unfair as the purchaser could be making better use of the money until the property can be occupied.

While the special payment arrangement was a success, the double handling of the documents caused administrative problems and the scheme was changed to remove the need to pay the 5% duty up front and submit documents twice.

Amendments contained in this Bill, Mr Speaker, introduce a similar scheme in the ACT for off-the-plan property purchases.

Mr Speaker, Chapter 6 of the Duties Act, through the operation of section 16(a) of the Duties (Consequential and Transitional Provisions) Act 1999, unintentionally applies to hiring arrangements entered into prior to 1 October 1996 (the date when hiring duty was introduced in the ACT). The problem arises because a number of continuing hiring arrangements predating 1 October 1996 involve the payment of a fixed monthly rental for a specified amount, that does not include a stamp duty component. Also the previous exemption from duty provided in the Stamp Duties and Taxes Act 1987 was inadvertently not carried forward into the Duties Act. An amendment in the Bill overcomes this anomaly.

Mr Speaker, section 34 of the Duties (Consequential and Transitional) Provisions Act 1999, provided for the making of Regulations to amend the Duties Act (and other Acts) in relation to any matter arising from, connected with or consequential to the introduction of the Duties Act. Such amendments could be made within 12 months of the date of its commencement (1 March 1999). The intention of this provision was to allow easy amendment of the Duties Act to overcome any legislative difficulties that might arise in its first year of operation.

This provision was used to amend the Duties Act, from 28 February 2000, to provide concessional treatment for transactions involving the surrender and regrant of Crown leases, Foreign Government and Foreign Government Missions' motor vehicle registrations, and Motor Vehicle Dealers' vehicle registrations. The amendments have been included in this Bill to ensure the Legislative Assembly is given every opportunity to consider them. These amendments are to have retrospective application from the date of the

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