businesstransactions(levyimposition)act2006

8/3/2019 BusinessTransactions(LevyImposition)Act2006

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Consolidation

BUSINESS TRANSACTIONS (LEVY IMPOSITION) ACT 2006

[Consolidated as at 5 July 2011

on the authority of the Administrator

and in accordance with

theEnactments Reprinting Act 1980]

TABLE OF PROVISIONS

Section

1. Short title2. Commencement2A. Schedule 2 Expenditures3. Incorporation4. Imposition of levy5. Rate of levy6. Exemptions7. Levy to be rounded down8. Waiver of payment of small amounts of levy or additional levy9. Assessing levy in certain circumstances10. Refund of levy paid on certain matrimonial property settlementsSCHEDULE 1

RATES OF LEVYSCHEDULE 2

EXEMPTIONS FROM LEVY

NORFOLK ISLANISLAND


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BUSINESS TRANSACTIONS (LEVY IMPOSITION) ACT 2006

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

1. Short title

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

2. Commencement

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

2A. Schedule 2 Expenditures

In accordance with subsection 47(4) of the Norfolk Island Act 1979 of theCommonwealth, revenues raised by virtue of this Act must not be issued or expended

(otherwise than by way of investment) except for the purposes of a matter specified inSchedule 2 to theNorfolk Island Act 1979 of the Commonwealth.

3. Incorporation

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

Note: Being read as one, words defined in the Business Transactions(Administration) Act 2006have 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 ofinstruments specified in Schedule 1.

Note: This Act is not intended to have any application to the fees or dutiespayable in respect of the transfer or conveyance of interests in land that are dealtwith by theLand 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 ofinstruments.

NORFOLK ISLANDISLAND


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Business Transactions (Levy Imposition)2

03-08-05(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 instrumentsspecified in Schedule 2.

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

(3) Stamp levy is not imposed on an instrument executed by, or by anauthority 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 anotherinstrument 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 ofthis Act.

(6) The Regulations may exempt a person or organisation from the whole ora 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 1is an amount that is not a multiple of 5 cents, the amount of levy payable is the nextlowest 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 byway of penalty under the Business Transactions (Administration) Act 2006that isotherwise 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 dulystamped 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, forthe purpose of assessing levy on the instruments effecting the conveyance, a reference inthe 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 areimprovements on the land the subject of the conveyance claimed by the conveyee tohave been effected by him, or at his expense, the Officer may exclude from the totalvalue or amount on which levy is to be assessed such value or amount as the Officer

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Business Transactions (Levy Imposition)3

03-08-05thinks fit in respect of the value or amount, as at the date of execution of thatconveyance, 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 amarriage or to either of them.

(2) If levy imposed on an instrument effecting a conveyance of matrimonialproperty from a person to his or her spouse or former spouse has been paid under thisAct and, within 12 months after the property is conveyed, orders that relate to thedistribution of the matrimonial property between the person and his or her spouse thatare consistent with the terms of the conveyance are made under Part VIII of theFamily

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 propertythat is land or an interest in land to which the Land Administration Fees Act1996has application.

____________________________

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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 ofleviable property to which the Land

Administration Fees Act 1996applies,and other than a conveyance of adescription referred to in paragraph (2),(3), (4) or (5).

(2) Conveyance to or by persons as jointtenants where one or more of those

persons retains an interest in the propertythe subject of the conveyance

(3) Conveyance made subsequent to and inconformity with an agreement oragreements for the conveyance and theagreement or agreements has or have

been stamped with ad valorem levy

(4) A transfer of, or an agreement totransfer, leviable property subject to adeclaration of trust to a trustee if advalorem levy has been paid on thedeclaration of trust in respect of the same

leviable property

Where the amount of theconsideration or theunencumbered value ofthe property the subjectof the conveyance ortransfer (whichever is thehigher) levy on the

amount or theunencumbered value (thevalue), calculated inaccordance with theformula

D = 4 x VWhereD = the levy payable in $andV = the value

100Note for a value of $150,000 theformula becomes:D = 4 x 150000/100 = $6,000

At the rate specified inabove

0.5 fee unit

0.5 fee unit


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2 Business Transactions (Levy Imposition) 2006

(5) A declaration of trust that declares thesame trusts as those on which and subjectto which the same leviable property wastransferred to the person declaring thetrust ifad 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 isexecuted solely to correct an error in or effected

by an instrument upon which levy has been paid

2 fee units

____________________________

SCHEDULE 2

Section 6EXEMPTIONS FROM LEVY

ItemNo.

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 theCommonwealth.

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

3. Transfer of property for the purposes of a compulsory transfer of business underPart 4, Division 3 of theFinancial Sector (Transfer of Business) Act 1999 of theCommonwealth.

Note: This Act applies to Norfolk Island.

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


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

5. Transfer during the winding up of a company of its property (both real andpersonal) 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 levyavoidance scheme.

6. Conveyance

(a) that the Officer is satisfied is made solely for the purpose of effecting theappointment of a new trustee on the retirement of a trustee or as anadditional trustee, if

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

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

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

(b) subject to paragraph (c), made by a trustee to a beneficiary, where theconveyance is not made for valuable consideration and the conveyance isin conformity with a trust contained in a validly constituted trust and the

property the subject of the conveyance was acquired by the trustee byvirtue of an instrument which was duly stamped or has been exemptedfrom 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 releasefrom a debt, gift or legal obligation (including the trustees rightof indemnity and exoneration against a beneficiary) and whetherthe valuable consideration is paid, payable, made over to, givenor granted by or to the trustee, a beneficiary or a person actingfor, in concert with or under an arrangement or understanding(which may be formal or informal or express or implied) with thetrustee or a beneficiary; and

(iii) the conveyance is in conformity with a trust contained in avalidly constituted trust and the property the subject of the

conveyance was acquired by the trustee by virtue of an


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instrument which was duly stamped or has been exempted fromlevy 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 forvaluable consideration and the property the subject of the conveyance

was acquired by the trustee by virtue of the operation of a testamentaryinstrument or intestacy.

7. Transfer of an interest in the title to the property which the Officer is satisfied isthe 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 theproperty equally where there is no consideration and no other person obtains aninterest or benefit from the transfer.

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

9. Grant of a statutory licence or permission used in or in connection with abusiness 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 thegrant of a lease to a public hospital, public benevolent institution, religiousinstitution or public education institution or a council, society, organisation orother 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 anindividual) if the property the subject of the conveyance or lease is to be usedsolely by that entity for purposes other than the carrying on of a commercialactivity conducted by or on behalf of the entity.


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NOTESThe Business Transactions (Levy Imposition) Act 2006as shown in this consolidationcomprises Act No. 12 of 2006 and amendments as indicated in the Tables below.Enactment Number

and year

Date of

commencement

Application

saving ortransitionalprovision

Fiscal Charges and Impositions Act2011

5, 2011 1.7.11

________

Table of Amendments

ad =added or inserted am = amended rep = repealed rs = repealed and

substituted

Provisions affected How affected

Schedule 1 am 5, 2011

Norfolk Island Government 2011

The Copyright Act 1968 of the Commonwealth of Australia permits certain reproduction and publication ofthis legislation. For reproduction or publication beyond that permitted by the Act, written permission must

be sought from the Legislative Counsel, Administration of Norfolk Island, Norfolk Island, South Pacific 2899.

businesstransactions(levyimposition)act2006

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