Source: http://classic.austlii.edu.au/au/legis/nt/bill_es/sdahodb2016512/es.html
Timestamp: 2019-07-20 20:20:00
Document Index: 467643592

Matched Legal Cases: ['ART 2', 'art 2', 'art 12', 'art 12', 'art 12', 'ART 3', 'art 3', 'ART 4']

STAMP DUTY AMENDMENT (FIRST HOME OWNER DISCOUNT) BILL 2016 Explanatory Statement
STAMP DUTY AMENDMENT (FIRST HOME OWNER DISCOUNT) BILL 2016
This Bill amends the Stamp Duty Act and the First Home Owner Grant Act to provide first home buyers of established homes with a stamp duty discount called the first home owner discount as part of the 2016-17 Budget.
The Stamp Duty Act is amended to introduce a stamp duty discount of up to 50 per cent, capped at a maximum saving of $10 000, of the stamp duty otherwise payable by first home buyers (conveyees) of established homes.
The Bill also makes a minor consequential amendment to the First Home Owner Grant Act to ensure that first home buyers are unable to obtain both the first home owner grant and the first home owner discount.
This is a formal clause which provides for the citation of the Act. When passed, the Act may be referred to as the Stamp Duty Amendment (First Home Owner Discount) Act 2016.
PART 2 – AMENDMENT OF STAMP DUTY ACT
Clause 2 provides that Part 2 of the Bill amends the Stamp Duty Act.
Clause 3.	Section 88 amended
Section 88 of the Stamp Duty Act is amended to define the new terms ‘established home’ and ‘first home owner discount’.
The term ‘established home’ is defined to mean a home that is not a ‘qualifying home’ under section 90AA of the Stamp Duty Act. This means an ‘established home’ is a home that is not new.
The term ‘first home owner discount’ is defined to mean a concession of duty of the lesser of 50 per cent of the duty otherwise payable or $10 000. The amount of the discount may also be varied by regulation.
Clause 4.	Section 89AA inserted
New section 89AA is inserted into the Stamp Duty Act. The section provides the substantive eligibility criteria for the first home owner discount, which is modelled on the former first home owner concession in section 89 of the Stamp Duty Act.
The first home owner discount will be applied where first home owners acquire and occupy an established home as their principal place of residence. The discount will be available from 24 May 2016 to 30 June 2017. Subclause (1) also enables the discount to be extended beyond 30 June 2017 by regulation.
The eligibility criteria for the discount are set out in subclauses (2) to (12). The criteria are consistent with other Territory home incentive schemes although, importantly, the first home owner discount is only available in relation to established homes. Assistance to first home buyers purchasing new homes is available through the first home owner grant scheme.
Furthermore, an applicant receiving the first home owner discount will not be entitled to receive a benefit under any additional Territory home incentive or assistance scheme, such as the senior, pensioner and carer concession and the principal place of residence rebate.
Where an applicant is eligible for both the senior, pensioner and carer concession and the first home owner discount in respect of a conveyance, only the senior, pensioner and carer concession will apply.
The first home owner eligibility criteria have also been updated to reflect current drafting styles and contemporary administrative practices such as adopting reassessment timeframes in the Taxation Administration Act. Although this does not materially alter the general policy of the scheme, new section 89AA(2)(e) provides that conveyees and spouses must not have previously held a prior relevant interest in a residential property regardless of whether or not that property has been occupied by them as a residence.
Clause 5.	Part 12 inserted
New Part 12 is inserted into the Stamp Duty Act by clause 5 of the Bill. Part 12 contains new section 111 of the Stamp Duty Act which contains a transitional provision in respect of the introduction of the first home owner discount.
The transitional provision ensures that the first home owner discount only applies to transactions that genuinely occur on or after 24 May 2016.
PART 3 – CONSEQUENTIAL AMENDMENT OF FIRST HOME OWNER GRANT ACT
Clause 6.	Act amended
Clause 6 provides that Part 3 of the Bill amends the First Home Owner Grant Act.
Clause 7.	Section 10 amended
Clause 7 makes a consequential amendment to section 10 of the First Home Owner Grant Act to ensure that an applicant who has previously received the first home owner discount is not entitled to receive the first home owner grant on a subsequent transaction.
PART 4 – EXPIRY OF ACT
Clause 8.	Expiry of Act
Clause 8 provides for the expiry of the Stamp Duty Amendment (First Home Owner Discount) Act 2016 the day after it commences.