That this bill be now read a second time.

Speech as follows incorporated into Hansard under sessional orders:

The State Taxation Acts Further Amendment Bill 2015 makes a number of technical amendments to the Duties Act 2000, the Payroll Tax Act 2007 and the Valuation of Land Act 1960.

The integrity of Victoria’s tax system relies on effective and sustainable tax administration.

The Victorian government is committed to maintaining best practice tax administration and ensuring that the commissioner is well positioned to meet the needs of both the government and community as we move into the future.

This bill supports this commitment by making amendments to update and clarify Victoria’s revenue laws. These measures will make it easier for Victorians to comply with their taxation obligations and ensuring equitable and fair outcomes for all Victorians affected by the taxation regime.

In line with the commitment to maintain best practice tax administration, this bill amends the Duties Act and the Payroll Tax Act.

Duty is payable on the sale of cattle, calves, sheep, goats and swine under independent provisions in the Livestock Disease Control Act 1994. The duty collected is paid into compensation funds, such as the Cattle Compensation Fund, and used for the prevention, monitoring and control of livestock disease, and to compensate livestock owners for losses caused by disease. The definition of cattle in the Livestock Disease Control Act was amended to include ‘bison’ so that bison come under the regulatory and compensation scheme of the Livestock Disease Control Act. As a result, a consequential amendment is required to ensure the definition of cattle in the Duties Act is aligned for the purposes of imposing livestock duty on bison.

The Payroll Tax Act provides an exemption for the wages paid or payable by an approved Group Training Organisation to a ‘new entrant’ apprentice or trainee. As a consequence of changes to the legislation governing registered training organisations, which include group training organisations, the definition of new entrant in the Payroll Tax Act has become obsolete. The amendment to the Payroll Tax Act updates the definition of ‘new entrant’ to preserve the scope of the exemption.

The Valuation of Land Act establishes the process for the administration of land valuations in Victoria. Valuations are conducted biennially by valuation authorities and establish the value of properties as at 1 January each even year. Supplementary valuations are also made during each valuation cycle to account for a variety of circumstances, including new properties arising from subdivisions of land and changes in the use or status of existing properties. These valuations are used for assessing council rates, land tax and fire services property levy. The amendments to the Valuation of Land Act make improvements to the valuation process and provide the legislative certainty to existing administrative practices.

The land valuation amendments ensure the valuation return timeline is aligned with the new council budget timelines, improve the accuracy of the valuation data received by a rating authority and permit the valuer-general to accept a late nomination from a council requesting the valuer-general conduct the general valuation on their behalf.

As a result of amendments to the Local Government Act 1989 in 2014, councils are now required to adopt their budgets by 30 June each year. The valuation best practice specifications guidelines were amended to recommend that general valuations be submitted to the valuer-general by 30 April. Currently, the Valuation of Land Act requires that a valuation be returned by 30 June, which gives rise to scenarios where councils have no time between receiving final valuations and adopting their budgets. Therefore the due date for a return of the general valuation will be brought forward to 30 April, which is in line with the guidelines. This amendment will not commence until the 2018 general valuation cycle, which should give councils and valuers sufficient preparation time.

Councils are required to conduct general valuations every two years. Under the Valuation of Land Act, a council may nominate the valuer-general to conduct the general valuation on the council’s behalf. A nomination must be made by 30 June of the even year preceding the next general valuation. Councils that wish to nominate the valuer-general to conduct the general valuation may not be able to meet the nomination cut-off date for various reasons. The Valuation of Land Act will be amended to allow the valuer-general to accept a late nomination if the valuer-general considers it appropriate to do so.

Supplementary valuations are completed during general valuation cycles to account for new properties and changes to existing properties. This ensures the accuracy of the valuation data received by rating authorities such as the SRO. The provisions providing for supplementary valuations allow for changes to properties where they move from non-rateable to rateable and/or from non-leviable to leviable. However, the provisions do not provide for the opposite change — i.e. where properties move from rateable to non-rateable and/or from leviable to non-leviable. Further, the provisions do not provide for rateable land that becomes leviable or ceases to be leviable. An amendment to the Valuation of Land Act will provide for supplementary valuations to be made in these circumstances. This will ensure that the valuation data is correct and updated.

The bill makes two other amendments to the Valuation of Land Act to correct some minor technical deficiencies relating to the ability to determine a land valuation for part of a land that has not been separately valued and the provision of supplementary valuations by the valuer-general to a rating authority, such as the State Revenue Office.

The measures enacted by this bill will improve the operation of Victoria’s taxation laws and the land valuation process. In line with government policy, these amendments will help to maintain the integrity and sustainability of the taxation system. They also improve the valuation process and ensure it is operating as intended.

I commend the bill to the house.