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Legislative Assembly for the ACT: 2000 Week 7 Hansard (29 June) . . Page.. 2189 ..

MR HUMPHRIES (continuing):

introduction of the Regulations, and the Regulations are to be repealed with the passage of the Bill.

I will now deal with these amendments, Mr Speaker. The Duties Act provides for nominal duty of $20 to be imposed on the surrender and regrant of a Crown lease or to change the purpose clause of the lease, as long as the land in the new Crown lease is identical to that of the old Crown lease. However, often on the surrender and regrant of a Crown lease, a change may involve an increase in the size of the land, a change in the proportional ownership of the land, or an extension of the lease's term. This makes the transaction liable to ad valorem duty on the full value of the property, a result that was never intended. Changes in this Bill, therefore, provide that where the size of the land increases in a regranted lease, proportional ownership changes, or the lease term is extended (and there is no change in beneficial ownership), duty is only to be imposed on the value of the additional land, or on the proportional change of ownership, not on the full value of the new lease. The extension of the lease term will attract nominal duty of $20. These changes confirm and implement practices under the old stamp duty legislation.

Mr Speaker, the Duties Act provides an exemption from duty on the registration of a motor vehicle for persons not liable to duty by virtue of the Diplomatic Privileges and Immunities Act 1967. However, the exemption has proven too narrow in practice. While it provides an exemption where the vehicle is purchased in the name of the Head of the Mission or a Diplomatic Agent no exemption is available where the vehicle is purchased in the name of the Foreign Government or the Mission itself. Changes in this Bill, therefore, extend the current exemption to cover such purchases.

Also, under the Duties Act, Mr Speaker, a motor vehicle dealer may register a vehicle, which either forms part of trading stock or is used for the purposes of demonstration, and utilise an exemption from duty. However, if the vehicle is held for more than 12 months, a "retrospective" liability to duty arises on the initial application for registration. This exemption limitation disadvantages some dealers who trade in rare and prestige vehicles, which may be held as demonstrators or in trading stock for more than 12 months, compared to their ACT and NSW competitors.

To address this issue, a provision has been included in this Bill which vests in the Commissioner the power to issue an annual authority to licensed motor vehicle dealers, in accordance with guidelines determined by the Minister. This authority will allow the dealer to continue the exemption on any vehicle where the purchase price is $35,000 or more, travels less than 10,000 kilometres in a year and remains registered. In addition, the dealer must continue to comply with the determined guidelines and any conditions imposed by the Commissioner. The guidelines require dealers to pay an administrative charge of $250 for the annual authorisation.

If the dealer does not dispose of the vehicle before the period expires in which its registration may be renewed under the authorisation, or the authorisation is revoked, "retrospective" liability to duty arises resulting in duty being payable on the initial application for registration in the dealer's name.

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