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Statement by the Treasurer the Right Honourable William McMahon, MP [stamp duty in the ACT]



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NO.

29.

, .

COMMONWEALTH TREASURY PRESS

RELEASE

EMBARGO

STATEMENT BY THE TREASURER

THE RIGHT HONOURABLE WILLIAM McMAHON, M.P.

The Treasurer (Mr. McMahon) today made a statement outlining

the broad scope of the stamp duty proposed to be levied in the Australian

Capital Territory. Mr. McMahon said he was making the statement in

accordance with an undertaking that the scope of the duty should be

announced before the legislation imposing it was introduced into

Parliament. He mentioned also that he had made a detailed statement on

the duty available to the' Minister for the Interior so that the A.C.T.

Advisory Council could consider the matter.

The Treasurer said that the duty would apply to a range of

instruments and transactions having a connection with the Australian

Capital Territory (including Jervis Bay).

For cheques drawn on branches of banks in the Territory and

other bills of exchange and promissory notes a rate of duty of 5 cents

for each instrument is proposed.

As to hire purchase agreements entered into in the Territory,

the proposed rate is 1; per cent of the purchase price of the goods. In

calculating the purchase price subject to duty, deposits paid and interest

and insurance charges will not be taken into account.

Policies of insurance, other than life insurance, third

party motor vehicle insurance and workers' compensation insurance will

be within the scope of the duty. The proposed rate is 5 per cent of

premiums received in the Territory.

The duty will also extend to conveyances of an interest in

land or premises. Transfers of a freehold interest or of a Crown lease

2.

granted for more than five years will be dutiable at the rate of $1 for

each $100 of the value of the interest transferred. This duty will

replace the transfer fee at present payable at an equivalent rate under

the Real Property Ordinance. Other transfers of assignments of leases

will be dutiable at.the same rate but on the value of the consideration

paid for the transfer.

There will be no duty -payable.on grants of leases by the

Crown. However, in respect of other grants of leases it is proposed that

the duty will be at the rate of $1 for each $100 of the consideration

payable by the lessee other than by way o£...r.ent.and 30 cents for each

$100 of the total.r.ent , payable over the specified term of the lease.

The duty will apply also to.tr.ansfers.of shares and other

marketable securities such as debentures.-and rights to take up -shares or

debentures. It will not, however, apply.in.respect of Government or

semi-government loans or securities.

Two separate systems will operate in relation to transfers

of marketable securities. In broad terms, the broker return system now

in operation in all States will be adopted for listed securities sold

through brokers for full value. For other transfers, duty will be payable

if the securities •are on a register in the. Territory, and the rate will be

5 cents for each $12.50 of the unencumbered value of the securities.

The broker return system will dovetail in with the

legislation of the States on this subject. The rate of duty on

transactions falling within the system is uniform throughout the States

and the same rate is proposed for the Territory. Effectively the rate

will be much the same as for other transfers, but duty will be payable

either wholly in the Territory or partly in the Territory and partly in

a State, according to where the buying or selling orders are lodged.

Mr. McMahon also said that'a general exemption from the

duty would be provided for public hospitals, public benevolent

institutions, religious institutions and public educational institutions.

Canberra A,C.T. 27 March 1969