STAMP DUTIES (FURTHER AMENDMENT) ACT, 1980, No. 161 ANNO VICESIMO NONO ELIZABETHE II REGINE Act No. 161, 1980. An Act to amend the Stamp Duties Act, 1920, to provide for the abolition of death duty chargeable under that Act, and for certain other purposes. [Assented to, 15th December, 1980.] See also Companies (Death Duties) Amendment Act, 1980. BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows : -- 1. This Act may be cited as the "Stamp Duties Amendment) Act, 1980". (Further 2. ( 1 ) Except as provided by subsection ( 2 ) , this Act shall commence on the date of assent to this Act. (2) Section 4, in its application to Schedule 2, and that Schedule shall commence on 31st December, 1981. 3. This Act contains the following Schedules : -- S C H E D U L E 1 . -- A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N OF D E A T H DUTY. S C H E D U L E 2 . -- A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1920, R E L A T I N G TO T H E A B O L I T I O N O F SIXTH SCHEDULE R A T E S OF D U T Y AND TO E X E M P T I O N S F R O M DUTY. S C H E D U L E 3 . -- A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1920, R E L A T I N G TO CONVEYANCES BY WAY OF MORTGAGE. 4 . The Stamp Duties Act, 1920, is amended in the manner set forth in Schedules 1-3. S C H E D U L E 1. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, TO THE A B O L I T I O N O F D E A T H D U T Y . RELATING (1) ( a ) Section 1-- From the matter relating to Division 2 of Part IV, omit "123A", insert instead " 1 2 3 " . ( b ) Section 1-- After the matter relating to Division 2 of Part IV, insert : -- DIVISION 3.-- Abolition of death duty--ss. 123A, 123B. (2) ( a ) Section 73 ( 1 ) ( b ) -- After "Act" where lastly occurring, insert "or in respect of which no death duty is, by virtue of such Act, chargeable". ( b ) Section 73 ( 1 ) ( d ) -- After "paid" where secondly occurring, insert "or in respect of which n o death duty is, by virtue of such Act, chargeable". ( 3 ) Part IV, Division 3, heading-- After section 123, insert : -- DIVISION 3.-- Abolition of death duty. (4) ( a ) Section 123A-- After "1979,", insert "and before 1st January, 1981,". SCHEDULE 1-- continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N O F D E A T H DUTY-- continued. (b) Section 123A ( 2 ) , ( 3 ) -- At the end of section 123A, insert : -- (2) Notwithstanding any other provision of this Part of this Act, the amount of death duty payable under this Act in respect of the final balance of the estate of a person who dies on or after 1st January, 1981, and before 31st December, 1981, shall be onethird of the amount of death duty that would, but for this section, be payable under this Act. ( 3 ) Notwithstanding any other provision of this Part of this Act, no death duty shall be chargeable under this Act in respect of the dutiable estate of a person who dies on or after 31st December, 1981. ( 5 ) Section 1 2 3 B -- After section 123A, insert : -- 123B. Divisions 1, 1A and 2 of this Part of this Act shall not apply to or in respect of the estate of a person who dies on or after 31st December, 1981, or to or in respect of anything done or suffered or omitted to be done by any other person in respect of any such estate. (6) ( a ) Second Schedule-- After "paid" where secondly occurring in paragraph ( b ) appearing under the heading " A P P O I N T M E N T in execution of a power", insert "or in respect of which no death duty is, by virtue of such Act, chargeable". S C H E D U L E 1 --continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N O F D E A T H DUTY-- continued. ( b ) Second Schedule-- After "Act" where lastly occurring in paragraph ( 4 ) ( b ) appearing under the heading "CONVEYANCES OF ANY PROPERTY", insert "or in respect of which no death duty is, by virtue of such Act, chargeable". ( c ) Second Schedule-- After "Act" where lastly occurring in paragraph ( 4 ) appearing under the heading "MORTGAGE", insert "or in respect of which no death duty is, by virtue of such Act, chargeable". (d) Second Schedule-- After "Act" where lastly occurring in paragraph ( 4 ) appearing under the heading " T R A N S F E R O F SHARES", insert "or in respect of which no death duty is, by virtue of such Act, chargeable". S C H E D U L E 2. A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N O F SIXTH SCHEDULE R A T E S O F D U T Y AND TO EXEMPTIONS FROM DUTY. ( 1 ) Section 66 ( 3 ) - ( 3 c ) -- Omit the subsections, insert instead : -- ( 3 ) A conveyance of property made without considera tion in money or money's worth is to be charged with ad valorem duty on whichever is the greater of-- ( a ) the unencumbered value of the property ascer tained in accordance with section 6 8 ; or S C H E D U L E 2-- continued. A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1 9 2 0 , R E L A T I N G TO THE A B O L I T I O N O F SIXTH SCHEDULE R A T E S O F D U T Y AND TO E X E M P T I O N S F R O M D U T Y -- c o n t i n u e d . (b) the amount or value of all encumbrances (whether certain or contingent) subject to which the property is conveyed. (3A) A conveyance of property made upon a bona fide consideration in money or money's worth of less than the unencumbered value of the property is to be charged with ad valorem duty on whichever is the greater of-- ( a ) the unencumbered value of the property ascer tained in accordance with section 6 8 ; or (b) the amount obtained by aggregating together-- (i) the amount or value of the consideration ascertained in accordance with this Act; and (ii) the amount or value of all encumbrances (whether certain or contingent) subject to which the property is conveyed, but the Commissioner, where he is satisfied that the con sideration paid was agreed to as representing the true market value of the property, may treat the conveyance as a conveyance on sale and stamp the conveyance accord ingly with ad valorem duty on the unencumbered value of the property ascertained in accordance with section 6 8 . ( 3 B ) A conveyance of property made upon a bona fide consideration in money or money's worth of not less than the unencumbered value of the property, not being a con veyance on sale of the property, is to be charged with S C H E D U L E 2-- continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N O F SIXTH S C H E D U L E R A T E S O F D U T Y AND TO E X E M P T I O N S FROM DUTY-- continued. ad valorem stamp duty on the amount aggregating together-- obtained by ( a ) the amount or value of the consideration ascer tained in accordance with this Act; and ( b ) the amount or value of all encumbrances (whether certain or contingent) subject to which the property is conveyed. ( 3 c ) Nothing in subsection ( 3 ) , ( 3 A ) or ( 3 B ) of this section affects the operation of section 7 3 . (2) ( a ) Second Schedule-- Omit paragraphs ( 2 ) and ( 3 ) appearing under the heading "CONVEYANCES O F ANY P R O P E R T Y " , insert instead : -- (2) U p o n every c o n v e y a n c e o f any property (other than shares or rights t o shares referred t o in paragraph (1) under the heading "Transfer o f Shares" or a m o r t g a g e referred t o in para graph (1) under the heading " M o r t g a g e " herein) m a d e with out consideration in m o n e y or money's worth-- O n whichever is the greater of-- (a) the unencumbered value of the property; or (b) the amount or value o f all en cumbrances (whether certain or contingent) subject to which the property is c o n veyed. The parties t o the c o n v e y a n c e or any o n e or m o r e of them. The s a m e duty as o n a conveyance under paragraph (1) a b o v e as if the greater of the a m o u n t s under para graphs (a) a n d (b) opposite hereto were the a m o u n t o f the consideration. SCHEDULE 2--continued. A M E N D M E N T S T O T H E S T A M P D U T I E S A C T , 1 9 2 0 , R E L A T I N G TO THE A B O L I T I O N O F SIXTH S C H E D U L E R A T E S O F D U T Y AND TO E X E M P T I O N S F R O M D U T Y -- c o n t i n u e d . (3) U p o n every c o n v e y a n c e of any property (other than shares or rights t o shares referred t o in paragraph (1) under the heading "Transfer o f Shares" or a mortgage referred t o in para graph (1) under the heading " M o r t g a g e " herein) m a d e upon a b o n a fide consideration in m o n e y or m o n e y ' s worth o f less than t h e unencumbered value of the property-- O n whichever is the greater of-- (a) the unencumbered value of the property; or (b) t h e a m o u n t o b tained by aggre gating t o g e t h e r -- (i) the a m o u n t or value o f the con sideration ascertained in accor dance with this Act; and (ii) the a m o u n t or value o f all encum brances (whether certain or contingent) subject to which the property is conveyed. (3A) U p o n every c o n v e y a n c e of any property (other than shares or rights t o shares referred t o in paragraph (1) under the heading "Transfer o f Shares" or a mortgage referred t o in para graph (1) under the heading " M o r t g a g e " herein) m a d e upon a b o n a fide consideration in m o n e y or m o n e y ' s worth o f n o t less than the unencumbered T h e parties t o the c o n v e y a n c e or a n y o n e o r m o r e of them. T h e s a m e duty a s o n a conveyance under paragraph (1) a b o v e as if t h e greater of the a m o u n t s under paragraphs (a) a n d (b) o p p o s i t e hereto were t h e a m o u n t o f the consideration. T h e parties t o the c o n v e y a n c e or a n y one or more of them. SCHEDULE 2--continued. A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1 9 2 0 , R E L A T I N G TO THE A B O L I T I O N O F SIXTH SCHEDULE R A T E S O F D U T Y AND TO E X E M P T I O N S FROM D U T Y -- c o n t i n u e d . value of the property, not being a c o n v e y a n c e o n sale of the property-- On the a m o u n t obtained by aggregating together-- The s a m e duty as o n a conveyance under (a) the amount or paragraph (1) a b o v e value of the as if the aggregate of consideration the amounts under ascertained in paragraphs (a) and (b) accordance with o p p o s i t e hereto were this A c t ; and the a m o u n t of the (b) the amount or consideration. value of all encum brances (whether certain or con tingent) subject t o which the property is c o n v e y e d . (b) Second Schedule-- From paragraph ( 4 ) appearing under the heading " L E A S E OR P R O M I S E O F OR A G R E E M E N T FOR L E A S E OR H I R E of any Property not being a Ship or Vessel", omit : -- T h e s a m e duty as would be chargeable under paragraph (2) under the heading "Con veyances of any Property" herein on a conveyance of property of an unencumbered value equal to the value of the lease in question. insert instead : -- T h e same duty as would be chargeable o n a conveyance under paragraph (1) under the heading "Con veyances of any Property" herein as if the unencumbered value of the lease in question were the a m o u n t o f the c o n sideration. SCHEDULE 2--continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N OF SIXTH SCHEDULE R A T E S O F D U T Y AND TO E X E M P T I O N S FROM DUTY-- continued. (c) Second Schedule-- Omit paragraph ( b ) of the Exemptions under the heading " L O A N SECURITY". (d) Second Schedule-- Omit paragraphs ( 2 ) and ( 3 ) appearing under the heading "MORTGAGE", insert instead : -- (2) Upon every transfer or assign The parties to the ment of any mortgage made transfer or assign without consideration in money ment or any one or money's worth or more of them. On the unencumbered value of the mortgage. The same duty as would be chargeable under paragraph (1) above as if the unencumbered value of the mortgage were the amount of the consideration. (3) Upon every transfer or assign The parties to the ment of any mortgage made upon transfer or assign a consideration in money or ment or any one money's worth of less than the or more of them. unencumbered value of the mortgage-- On the unencumbered value of the mortgage. The same duty as would be chargeable under paragraph (1) above as if the unencumbered value of the mortgage were the amount of the; consideration. appearing (e) Second Schedule-- Omit subparagraph (b) appearing under the heading " D I R E C T I O N AS TO ISSUE OR A L L O T M E N T O F SHARES", insert instead : -- (b) In any case other than that mentioned in the preceding sub paragraph (a) - -- On the unencumbered value of the shares directed to be issued or allotted. The same duty as is payable under para graph (1) under the heading "Transfer of SCHEDULE 2--continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1 9 2 0 , R E L A T I N G TO THE A B O L I T I O N O F SIXTH SCHEDULE R A T E S O F D U T Y AND TO E X E M P T I O N S FROM D U T Y -- c o n t i n u e d . Shares" herein as if the unencumbered value o f the shares directed t o b e issued or allotted were the a m o u n t o f the c o n sideration. (f) Second Schedule-- Omit paragraphs ( 2 ) and ( 3 ) appearing under the heading " T R A N S F E R OF SHARES", insert instead : -- (2) U p o n the transfer o f shares or T h e parties t o the of rights t o shares m a d e without transfer or any consideration in money or o n e or more o f money's worth-- them. On the unencumbered value of the shares or the rights to the shares comprised in the transfer. T h e s a m e duty as would be chargeable under paragraph (1) a b o v e as if the unencumbered value o f the shares or the rights t o the shares comprised in the trans fer were the a m o u n t of the consideration. (3) U p o n the transfer o f shares or of T h e parties to the rights t o shares made u p o n a transfer o r a n y consideration in money or o n e or m o r e of m o n e y ' s worth o f less than the them. unencumbered value o f the shares or o f the rights t o shares comprised in the transfer-- On the unencumbered value of the shares or the rights t o the shares comprised in the transfer. The same duty as would be chargeable under paragraph (1) a b o v e as if the unencumbered value o f the shares or the rights to the shares comprised in the trans fer were the a m o u n t of the consideration. SCHEDULE 2-- continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO THE A B O L I T I O N O F SIXTH SCHEDULE R A T E S O F D U T Y AND TO E X E M P T I O N S FROM D U T Y -- c o n t i n u e d . (g) Second Schedule-- After paragraph ( 2 3 ) appearing under the heading " G E N E R A L E X E M P T I O N S FROM S T A M P D U T Y UNDER PART I I I " , insert : -- (24) Any instrument by which property is con veyed or agreed to be conveyed to, or any loan security given by or on behalf of-- ( a ) any society or institution for the time being approved by the Commissioner for the purposes of this paragraph whose resources are, in accordance with its rules or objects, used wholly or predominantly for-- (i) the relief of poverty in New South Wales; or (ii) the promotion of education in New South Wales; or ( b ) any society or institution which, in the opinion of the Minister, is of a charitable or benevolent nature and where the instrument or loan security is for such purposes as the Treasurer or the Assistant Treasurer may approve. ( 3 ) Sixth S c h e d u l e Omit the Schedule. SCHEDULE 3. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, RELATING TO CONVEYANCES BY WAY OF MORTGAGE. ( 1 ) Section 6 6 D -- After section 66c, insert : -- 66D. ( 1 ) A transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900, is to be charged with ad valorem duty on the unencumbered value of the land, or the estate or interest, as the case may require, ascertained in accord ance with section 68. (2) The rate of ad valorem duty to be charged in respect of a transfer or conveyance referred to in sub section (1) of this section is the rate provided in the Second Schedule to this Act for a conveyance of land on a sale for a consideration in money or money's worth of not less than the unencumbered value of the land as if the unencumbered value of the land, or the estate or interest, as the case may require, ascertained in accordance with section 68 were the amount of the consideration. (3) The duty payable in accordance with sub sections (1) and (2) of this section is payable by the parties to the transfer or conveyance or any one of them. (4) Where the Commissioner is satisfied-- (a) that there has been a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900, from a mortgagor to a mortgagee; SCHEDULE 3--continued. A M E N D M E N T S TO THE S T A M P D U T I E S A C T , 1920, R E L A T I N G TO CONVEYANCES BY WAY O F MORTGAGE-- continued. (b) that duty has been paid in accordance with sub sections ( 1 ) and ( 2 ) of this section on the transfer or conveyance; and (c) that the land, or the estate or interest, as the case may require, has been retransferred or reconveyed to the mortgagor or to a person to whom the land, estate or interest has been trans mitted by death or bankruptcy and the mortgagor or person, as the case may require, is the regis tered proprietor, within the meaning of the Real Property Act, 1900, of the land, estate or interest, the Commissioner shall refund the ad valorem duty paid on the transfer or conveyance by way of mortgage less the amount of duty that would have been payable on that transfer or conveyance if it were a loan security. (2) Section 83 ( 1 ) , definition of "Mortgage"-- Omit "debentures.", insert instead : -- debentures, but, notwithstanding the meaning of that expression in section 3 .(1) of this Act, does not include a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, 1900. S C H E D U L E 3-- continued. A M E N D M E N T S TO T H E S T A M P D U T I E S A C T , 1 9 2 0 , R E L A T I N G TO CONVEYANCES BY WAY O F MORTGAGE-- continued. ( 3 ) Second Schedule-- In paragraph ( 1 5 ) appearing under the heading " G E N E R A L III", after "mortgage" where fourthly occurring, insert ", not being a transfer or conveyance by way of mortgage of land, or an estate or interest in land, under the Real Property Act, E X E M P T I O N S F R O M S T A M P D U T Y UNDER P A R T 1900,".